Exam FX missed questions
What type of care is Respite care? a) Institutional care b) 24-hour care c) Relief for a major care giver d) Daily medical care, given by medical personnel
Relief for a major care giver
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay with respect to major medical insurance for one life? a) $150,000 b) $100,000 c) $300,000 d) $500,000
$500,000
If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits? a) 40 credits b) 12 credits c) 20 credits d) 6 credits
12 credits
Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis? a) Adult day care b) Residential care c) Assisted living d) Home health care
Adult day care
A Universal Life insurance policy is best described as a/an a) Annually Renewable Term policy with a cash value account b) Variable life with a cash value account c) Whole life policy with two premiums: target and minimum d) Flexible premium variable life policy
Annually Renewable Term policy with a cash value account
In a replacement situation, all of the following must be considered EXCEPT a) Exclusions b) Assets c) Benefits d) Limitations
Assets
All of the following are features of catastrophic plans EXCEPT a) Higher premiums b) Out-of-pocket costs c) High deductibles d) Essential benefits
Higher premiums
Which of the following would prevent a universal life policy from lapsing? a) Face amount b) Adjustable premium c) Corridor of insurance d) Target premium
Target Premium
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to a) Creditors b) Beneficiary of the death benefit c) The spouse of the insured d) The insured
The insured
What is the maximum administrative fine for a person who solicits prepaid funeral contracts without a license? a) $1,000 per violation b) $5,000 per violation c) $10,000 per violation d) $500 per violation
$1,000 per violation
Which of the following is the licensing requirement for a producer who sells continuous care coverage in this state? a) Life and accident and health license b) Surplus lines broker license c) Accident and health, as well as casualty license d) Accident and health only license
Accident and health, as well as casualty license
Long-term care coverage may be sold in all of the various ways EXCEPT a) Endorsement to life policy b) Endorsement to health policy c) Group long-term care d) Individual long-term care
Endorsement to health policy
If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following? a) Cancel the policy b) Increase the premium c) Exclude coverage for on-the-job injury d) Adjust the benefit in accordance with the increased risk
Adjust the benefit in accordance with the increased risk
Which of the following is issued by the state Department of Insurance to show that the insurer has power to write insurance contracts in that state? a) License b) Certificate of Authority c) Certificate of Insurance d) Binder
Certificate of Authority
All of the following are dividend options EXCEPT a) Paid-up additions b) Fixed-period installments c) Accumulated at interest d) Reduction of premium
Fixed-period installments
Which type of Medicare policy requires insureds to use specific healthcare providers and hospitals (network providers), EXCEPT in emergency situations? a) Medicare Advantage b) Medicare Part A c) Preferred d) Medicare SELECT
Medicare SELECT
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary? a) Revocable b) Primary c) Contingent d) Irrevocable
Revocable
What is the advantage of reinstating a policy instead of applying for a new one? a) The face amount can be increased b) The cash values have gained interest while the policy was lapsed c) The original age is used for the premium determination d) Proof of insurability is not required
The original age is used for premium determination
Which of the following is TRUE about nonforfeiture values? a) They are required by state law to be included in the policy b) They are optional provisions c) A table showing nonforfeiture values for the next 10 years must be included in the policy. d) Policyowners do not have the authority to decide how to exercise nonforfeiture values.
They are required by state law to be included in the policy
All of the following are correct about the required provisions of a health insurance policy EXCEPT a) Proof-of-loss forms must be sent to the insured within 15 days of notice of claim. b) A grace period of 31 days is found in an annual pay policy. c) The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract. d) A reinstated policy provides immediate coverage for an illness
A reinstated policy provides immediate coverage for an illness
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT a) An offer of employment b) Stocks, securities, or bonds c) An offer to share in commissions generated by the sale d) Dividends from a mutual insurer
Dividends from a mutual insurer
What is a penalty for transacting insurance without a proper license? a) $10,000 b) $500 c) $1,000 d) $5,000
$1,000
How many hours of approved continuing education within a 3-year period are required? a) 33 b) 30 c) 36 d) 24
30
Company C is developing its own advertising script to be used in their radio advertising campaign for their LTC policies. Which of the following words or phrases would be allowed? a) 'Unlimited' b) 'Complete' c) 'Benefits paid directly to you' d) 'All"
Benefits paid directly to you
Which of the following is TRUE regarding taxation of cash value in a life insurance policy? a) Cash value is included in the insured's taxable estate b) All annual increases are taxed. c) Cash value that is withdrawn by the policyowner is taxed as ordinary income. d) Cash value in excess of the premiums paid is taxed upon policy surrender.
Cash value in excess of the premiums paid is taxed upon policy surrender
The term "fixed" in a fixed annuity refers to all of the following EXCEPT a) Death benefit b) Guaranteed rate of interest c) Equal annuity payments d) Amount and length of payments
Death benefit
All of the following statements concerning dividends are true EXCEPT a) Lower insurance company costs generate higher dividends b) They stem from favorable underwriting experience c) Favorable investment results generate higher dividends d) Dividend amounts are guaranteed in the policy
Dividend amounts are guaranteed in the policy
An agent selling variable annuities must be registered with a) The Guaranty Association b) SEC c) FINRA d) Department of Insurance
FINRA
The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT a) Right to appeal b) No lifetime dollar limits c) Coverage for preventative benefits d) Individual tax deduction for premiums paid
Individual tax deduction for premiums paid
The type of dental plan which is incorporated into a major medical expense plan is a/an a) Integrated dental plan b) Supplemental dental plan c) Stand-alone dental plan d) Blanket dental plan
Integrated dental plan
In which of the following situations would Social Security Disability benefits NOT cease? a) The individual has undergone therapy and is no longer disabled b) The individual's son gets a part-time job to help support the family c) The individual reaches age 65 d) The individual dies
The individual's son gets a part-time job to help support the family
In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met? a) The insured must have a Medicare supplement insurance policy. b) There is no benefit provided under Medicare Part A for skilled nursing care c) The insured must cover daily copayments d) The insured must have first been hospitalized for 3 consecutive days.
The insured must have first been hospitalized for 3 consecutive days
To which of the following would the rule prohibiting a viatical settlement contract within 5 years of a policy issue date apply? a) The owner is getting a divorce b) They owner's spouse dies c) The owner needs money for downpayment on the first home d) the owner files for bankruptcy
The owner needs money for downpayment on the first home
All insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? a) One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies. b) The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive c) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time d) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
A brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses? a) "Any occupation" - more restrictive than other definitions b) "Own occupation" - less restrictive than other definitions c) "Own occupation" - more restrictive than other definitions d) "Any occupation" - less restrictive than other definitions
"Own occupation" - less restrictive than other definitions
All of the following are requirements for life insurance illustrations EXCEPT a) They must differentiate between guaranteed and projected amounts b) They must be part of the contract c) They may only be used as approved d) They must identify nonguaranteed values
They must be part of the contract
Which of the following is TRUE regarding the annuity period? a) It may last for the lifetime of the annuitant b) During this period of time the annuity payments grow interest tax deferred. c) It is also referred to as the accumulation period d) It is the period of time during which the annuitant makes premium payments into the annuity.
It may last for the lifetime of the annuitant
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefits rider. If the father becomes disabled, what will happen to the life insurance premiums? a) The insured's premiums will be waived until she is 21 b) The premiums will become tax deductible until the insured's 18th birthday c) Since it is the policyownder, and not the insured, who has become disabled, the life insurance policy will not be affected. d) The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums.
The insured's premiums will be waived until she is 21
How must a replacing producer respond to an applicant wishing to replace existing life insurance? a) The producer must provide the applicant with a Notice Regarding Replacement b) The producer must collect the existing policies and turn them over to the replacing insurer. c) the producer must request the permission of the existing insurer. d) The producer has no specific duties
The producer must provide the applicant with a Notice Regarding Replacement
Which of the following is NOT true of life settlements? a) They could be sound for an amount greater than the current cash value. b) They involve insurance policies with large face amounts. c) The seller must be terminally ill. d) They could be used for a key person coverage
The seller must be terminally ill