Exam FX simulator practice
What is the typical deductible for basic surgical expense insurance?
$0.00.
The maximum penalty that may be assessed for a single nonwillful violation of the Insurance Code is
$1,000.
The violation of a cease and desist order may result in a fine of
$10,000
An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?
$10,000, no tax consequence
An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?
$102
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
$200,000
L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2.500 loss. What is the maximum amount that L will have to pay?
$900 (deductible + 20% of the bill after the deductible [20% of $2,000])
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
How soon from the reinstatement of a health insurance policy would a loss be covered?
10 days
For how many days of skilled nursing facility care will Medicare pay benefits?
100
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required in noncontributory plans
Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing?
100%.
How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?
12
Most vision expense Insurance plans restrict benefits to one exam and one pair of glasses in what time period?
12 months.
What is the minimum age for purchasing a life insurance policy in this state?
15
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
15 days
What is the maximum period of time a temporary license can be in force?
15 months
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
COBRA applies to employers with at least
20 employees
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-pocket:
20% of covered charges above the deductible
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-pocket?
20% of covered charges above the deductible
What is the maximum first-year commission that a producer may receive for the sale of a Medicare supplement policy in the state of Georgia?
200% of the commission paid for the servicing of the policy in the second year
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
An insured recently discovered that the interest rate on his policy loan once again increased. Which of the following is the shortest amount of time that could have passed since the last change in the insured's interest rate?
3 months
For how long are insurers required to maintain records pertaining to life insurance solicitation?
3 years
An insurance agent has received a request for a hearing from the Commissioner. Within how many days must the hearing be held?
30 Days
If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?
30 days
Group accident and sickness policies in Georgia have a grace period of
31 days
When a disabled dependent child reaches the age limit for coverage, how long does the policyowner have to provide proof of dependency in order for the dependent to remain covered under the policy?
31 days
What is the period of coverage for events such as death or divorce under COBRA?
36 months
Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?
4
Authorized insurance companies are examined by the commissioner at least once every
5 Years
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
The inflation protection feature in long-term care policies issued in this state must provide protection for inflation at what percent annually?
5%
Kay has an individual major medical policy that requires a coinsurance payment. Kay very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangements would be best for Ray?
50/50
To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
For how long is an insurance company allowed to defer policy loan requests?
6 months
How long is an open enrollment period for Medicare supplement policies?
6 months
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
Once an individual is licensed as an insurance producer for life or accident and health insurance. how man hours of training must the producer complete initially to sell long-term care insurance partnership policy?
8 hours
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
90 days of a loss.
Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within
90 days.
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
A hospital indemnity policy will pay
A benefit for each day the insured is in the hospital.
According to the Entire Contract provision, a policy must contain
A copy of original application for insurance.
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender.
The benefits for individual disability plans are based on
A flat amount.
A Straight life policy has what type of premium?
A level annual premium for the life of the insured
A Straight life policy has what type of premium?
A level annual premium for the lite of the insured
Which of the following does the Insuring Clause NOT specify?
A list of available doctors
Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?
A minor son of the insured
If an applicant intends to replace any existing accident and sickness policy with a Medicare supplement policy, what must the agent furnish to the applicant?
A notice regarding replacement
Which of the following would best describe total disability?
A person's ability to work is significantly reduced or eliminated for the rest of his/her life.
Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A policy summary
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A policy summary
Who is a third-party owner
A policyowner who is not the insured
Who is a third-party owner?
A policyowner who is not the insured
If a company has a simplified Employee Pension plan, what type of plan is it?
A qualified plan for a small business
All of the following are correct about the required provisions of a health insurance policy EXCEPT
A reinstated policy provides immediate coverage for an illness
The tree-look provision allows for which of the following?
A right to return the policy for a full premium refund
A deductible is
A specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits.
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to identify the insured and the nature of the claim.
Insurers or agents soliciting partnership policies must provide each prospective applicant with all of the following EXCEPT
A statement that the insured does not automatically quality for Medicare Part A
All of the following would be excluded from the regulation on life insurance solicitation EXCEPT
A term life policy
All of the following statements concerning workers compensation are correct EXCEPT
A worker receives benefits only if the work related injury was not his/her fault.
The insured's health policy onlv pavs for medical costs related to accidents. Which of the following tvoes of policies does the insured have?
Accident-only
When the insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. If the insurer is notified of the insured's change of occupation, the insurer should
Adjust the benefit in accordance with the decreased risk.
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be moditied to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable Life
Which of the following is another term for an authorized insurer?
Admitted
Group health insurance is characterized by all of the following EXCEPT
Adverse selection
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
Aleatory
An agent is acting ethically in all of the following situations EXCEPT
Always representing the insured
While a claim is pending, an insurance company may require
An independent examination as often as reasonably required.
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500.
All of the following are examples of third-partv ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
what is a foreign insurer .
An insurer with a home office in another state
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice.
A Universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account.
When an annuity is written, whose life expectancy is taken into account?
Annuitant
Which of the following products will protect an individual from outliving their money?
Annuity
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?
Annuity certain
Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, total disability is defined as
Any occupation - more restrictive than other definitions.
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
Applicant
Whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?
Applicant and Agent
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
Applicant.
What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
Application
What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application?
As long as the policy is in force
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
In a replacement situation. all of the following must be considered EXCEPT
Assets
SIMPLE Plans require all of the following EXCEPT
At least 1,000 employees
Which of the following is INCORRECT regarding a $100,000 20-year level term policy?
At the end of 20 years, the policy's cash value will equal $100,000.
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?
At the time of application
What document describes an insured's medical history, including diagnoses and treatments?
Attending Physician's Statement
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
Attending physician
Which of the following is NOT an enrollment period for Medicare Part A applicants?
Automatic
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
What coverage, written in conjunction with hospital expense policies, covers surgeons' fees, anesthesiologist, and the operating room?
Basic Surgical Expense
Which of the following is TRUE about a class designation?
Beneficiaries are not identified by name.
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed.
Which of the following statements regarding Business Overhead Expense policies is NOT true?
Benefits are usually limited to six months.
All of the following apply to short-term disability plans EXCEPT
Both group and individual plans are renewable
A policy available to business owners that provides payment for normal business expenses in the event that the owner is disabled is called
Business Overhead Expense.
Which of the following would describe a legal document which would dictate who can buy a deceased partner s share of a business and for what amount?
Buy-sell agreement
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true?
By law, the new, individual policy must provide the same benefits as the group insurance policy.
Which of the following would be considered a violation of life insurance advertising regulations?
Calling a variable insurance policy an investment plan
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?
Cash Surrender
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
What does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time
To legally transact insurance in this state, an insurer must obtain which of the following?
Certificate of Authority
To legally transact insurance in this state, an insurer must obtain which of the following?
Certificate of authority.
What term is used for replacing insurance policies for the sole purpose of making commissions?
Churning.
The provision that provides for the sharing of expenses between the insured and the insurance company is
Coinsurance.
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility. but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250.000 life insurance policy to secure the loan. Which provision makes this possible?
Collateral assignment
A producer who fails to separate premium monies from his own personal funds is guilty of
Commingling.
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
Common Disaster
If more than one family member covered under the same major medical policy is injured in the same accident, the family only has to pay one deductible. This is due to the
Common accident provision.
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
Company.
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming future dividends in a life insurance proposal
The act of trying to discourage a policyholder from dropping his/her existing policy is called
Conservation effort
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
An applicant for an individual health policy failed to complete the application properly. Betore being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the
Consideration Clause
Representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
The gatekeeper of an HMO helps
Control specialist costs.
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
Producers in Georgia will be deemed to be using their license primarily to write controlled business if. during any calendar year.
Controlled business accounts for more than 25% of the agent's business.
What is the main difference between coinsurance and copayments?
Copayment is a set dollar amount.
In a basic expense policy, after the limits of the basic policy are exhausted. the insured must pay what kind of deductible?
Corridor
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the consumer price index, is called
Cost of living rider
A key person insurance policy can pay for which of the following?
Costs of training a replacement
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
Which of the following is NOT an exclusion in medical expense insurance policies?
Coverage for dependents
What characteristic makes whole life permanent protection?
Coverage until death or age 100.
What is another name for interest-sensitive whole life insurance?
Current assumption life
All of the following statements concerning Accidental Death and Dismemberment coverage are correct EXCEPT
Death benefits are paid only if death occurs within 24 hours of an accident.
Which of the following is NOT typically excluded from life policies?
Death due to a plane crash for a fare-paying passenger
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
An individual has been making periodic premium pavments on an annuit. The annuitv income pavments are scheduled to begin after 1 vear since the annuitv was purchased. What type of annuity is it?
Deferred
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?
Deferred
Which of the following IS NO a term for the period of time during which the annuitant or the beneficiary receives income?
Depreciation period
This arrangement specifies who will purchase a disabled partner's interest in the event he or she becomes disabled.
Disability buyout
Social Security disability definition includes all of the following EXCEPT
Disability expected to last for at least 6 months.
A waiver of premium provision may be included with which kind of health insurance policy?
Disability income
Which of the following statements about occupational vs. nonoccupational coverage is TRUE?
Disability insurance can be written as occupational or nonoccupational.
A producer must do all of the following when delivering a new policy to the insured EXCEPT
Disclose commissions earned from the sale of the policy.
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
All of the following statements concerning dividends are true EXCEPT
Dividend amounts guaranteed in the policy.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
In a disability policy, the probationary period refers to the time
During which illness-related disabilities are excluded from coverage.
What is the goal of the HMO?
Early detection through regular checkups
All of the following are advantages of an HMO or PPO for a Medicare recipient EXCEPT
Elective cosmetic procedures are covered.
An insured is hospitalized with a back injury. Ubon checking his disability income policy. The learn that he will not be eligible for benefits for at least 30 days. This would Indicate that his policy was written with a 30-day
Elimination period.
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase
If a change needs to be made to the application for insurance. the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
Once an agent has met the requirements to sell long-term care insurance partnership policies, how often must the agent complete the 4 hours of ongoing training courses?
Every 24 months
How often must the Commissioner of Insurance examine health maintenance organizations (HMOs) authorized to do business in this state?
Every 3 years
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)
Executive bonus.
All of the following actions can be described as twisting EXCEPT
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
Which policy component decreases in decreasing term insurance?
Face Amount
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant
Fair credit reporting act.
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
False advertising
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
How many pints of blood will be paid for by Medicare Supplement core benefits?
First 3
Another term used to describe "no deductible" is
First dollar bases.
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
Which one of the following is an eligibility requirement for Social Security disability income benefits?
Fully insured status
which of the following is another name for a primary care physician in an HMO?
Gatekeeper
How are HMO territories typically divided?
Geographic areas
The death benefit under the Universal Life Option B
Gradually increases each by the amount that the cash value increases.
As it pertains to group health insurance, COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called
Guaranteed insurability
An individual is purchasing a permanent life insurance policy with a face value ot $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability option
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed insurability rider.
Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs?
HMOs may pay for services not covered by Medicare
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity.
An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits?
Have accumulated 6 work credits in the past 3 years
Before an agent delivers a policy, the insurer makes a last minute change to the policy. The agent informs the insured of this change, and he accepts it. In response, the agent must
Have the insured sign a statement acknowledging that he is aware of the change.
Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The agent informs the insured of this change, and he accepts it. In response, the
Have the insured sign a statement acknowledging that he is aware of the change.
Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information
Held or transmitted in any form
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the paymen premium?
If the father is disabled for more than 6 months
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act?
Illegal
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
Medicaid provides all of the following benefits EXCEPT
Income assistance for work related injury.
In long-term care (LTC) policies, as the benefit period lengthens, the premium
Increases
Annually renewable term policies provide a level death benefit for a premium that
Increases annually.
A Return of Premium term life policy is written as what type of term coverage?
Increasing
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
All of the following are differences between individual and group health insurance EXCEPT
Individual insurance does not require medical examinations, while group insurance does require medical examinations
Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT
Individual members of the group may select the level of benefits for their own coverage.
The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT
Individual tax reduction for premiums paid.
What do individuals use to transfer their risk of loss to a larger group?
Insurance
What are the two components of a universal policy?
Insurance and cash account
Who must bav for the cost ot a medical examination required in the process ot underwriting?
Insurer
Who must pay for the cost of a medical examination required in the process of underwriting?
Insurer
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
Which of the following entities has the authority to make changes to an insurance policy?
Insurer's executive officer
Which of the following entities can legally bind coverage?
Insurer.
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
Insuring clause.
During partial withdrawal from a universal life policy, which portion will be taxed?
Interest
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors. the cash values could change from those shown in the policy at issue time. The policy is a/an
Interest-sensitive whole life
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT
Inviting prospective clients to the grand opening of the company's new office.
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
Is not covered.
A guaranteed renewable disability insurance policy
Is renewable at the insured's option to a specified age.
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
What is the function of a certificate of authority?
It allows an insurer to transact insurance in Georgia.
Which of the following statements is NOT true concerning Medicaid?
It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income.
What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?
It determines who receives policy benefits if the primary beneficiary is deceased.
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?
It does not guarantee that the entire principal amount will be paid out.
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
Which of the following best describes annually renewable term insurance?
It is Level Term insurance
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for lite and health insurance
Which of the following IS NO true of a major-medical health insurance policy?
It is designed to pay on a first dollar of expense basis.
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue.
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants.
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status.
if an insured surrenders his life insurance policy which statement is true regarding the cash value of the policy?
It is only taxable if the cash value exceeds the amount paid for premiums.
Which of the following is INCORRECT concerning Medicaid?
It is solely a federally administered program.
Which of the following statements is NOT correct concerning the COBRA Act of 1985?
It requires all employers, regardless of the number or age of employees, to provide extended group health coverage
Which of the following statements about the reinstatement provision is true?
It requires the policyholder to pay, with interest, all the premiums that are in arrears in order for the policy to be reinstated
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a
Joint life annuity.
Which of the following is an IRS qualified retirement program
Keogh Plan
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
Legal Actions
Under workers compensation, which of the following benefits are NOT included?
Legal benefits
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Legal purpose, offer & acceptance, and consideration
Variable Whole Life insurance is based on what type of premium?
Level Fixed
A Straight Life policy has what type of premium?
Level annual Premium for the life of the insured.
Which of the following is NOT a type of whole life
Level term
Which of the following settlement options in life insurance is known as straight life?
Life Income
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?
Long-term care
If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following EXCEPT
Loss of the owner's income.
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower.
If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used?
Lump sum
All of the following statements concerning Medicaid are correct EXCEPT
Medicaid is a state funded program that provides health care to persons over age 65, only.
Which type of Medicare policy requires insureds to use specific healthcare providers and hospitals (network providers), EXCEPT in emergency situations?
Medicare select.
Transacting insurance without a license in this state is considered a(n)
Misdemeanor.
What is the term for how frequently a policyowner is required to pay the policy premium?
Mode.
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an
Modified endowment contract.
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
Monthly
Which of the following premium modes would result in the highest annual cost for an insurance policy?
Monthly
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
Using a class designation for beneficiaries means
Naming beneficiaries as a group
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
An insured is involved in a car accident. In addition to less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will the insured receive Presumptive Disability benefits?
No benefits
An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?
No coverage will apply, since the injury could have been foreseen
Bethan studies in England for a semester. While she is there. she is involved in a train accident that leaves her disabled. If Bethan owns a general disabilitv polic. whatwill be the extent of benefits that she receives?
None
Premium payments for personally-owned disability income policies are
Not tax deductible.
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of a portion of the premium paid.
If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?
Nothing
An insured purchased a disability income policy with a 10-year benefit period. The policy stated a 20-day probationary period for illness. If the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay?
Nothing; illness is not covered during the first 20 days of the contract.
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
Nothing; the payments will cease.
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
Offer the supplement policy on a guaranteed issue basis
What is the official name for the Social Security program?
Old age survivors disability insurance
What is a definition of a unilateral contract?
One-sided• only one party makes an enforceable promise
Under which of the following organizations are the practicing providers compensated on a fee-for-service basis?
PPO
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid up additions.
Which of the following statements is INCORRECT concerning Medicare Part B coverage?
Part B coverage is provided free of charge when an individual turns age 65.
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Parts A&B of Medicare.
A participating insurance policy may do which of the following?
Pay dividends to the policy owner
A participating Insurance policy may do which of the following?
Pay dividends to the policyowner
A prospective insured receives a conditional recent but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy.
Which of the following applies to partial disability benefits?
Payment is limited to a certain period of time.
With respect to the Consideration Clause, which of the following would be considered consideration on the part ot the applicant for insurance?
Payment or premium
Which of the following is NOT true about a joint and survivor annuity benefit option?
Payments stop after the first death among the annuitants
Which of the following allows the insurer to relieve a minor insured from premium payments it the minor's parents have died or become disabled?
Payor Benefit
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
All of the following are examples of transacting insurance in Georgia EXCEPT
Placing advertisements tor an insurer.
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.
Which of the following has the right to convert the existing term coverage to permanent insurance?
Policyowner
A woman obtains health coverage through the Marketplace on October 1. Two weeks later she finds out that she is 3 months pregnant. Which of the following is true about coverage for pregnancy?
Pregnancy will be covered immediately
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a
Premium receipt
Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT
Premiums always stay the same.
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Premiums are not tax deductible as a business expense
Certain conditions, such as dismemberment or total and permanent blindness, will automatically quality the insured for full disability benefits. Which disability policy provision does this describe?
Presumptive disability
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal sum
All of the following statements regarding continuing education requirements in this state are true EXCEPT
Producers may repeat the same courses to meet the required CE hours for a licensing period
In respect to the consideration clause, which of the following is consideration on the part of the insurer?
Promising to pay in accordance with the contract terms
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization?
Provide medical services only from physicians in the network
when a whole lite policy lapses or is surrendered prior to maturity. the cash value can be used to
Purchase a single premium policy for a reduced face amount
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by class.
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it is in the best interest of the client.
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilt of
Rebating
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating.
A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n
Reciprocity agreement.
Which of the following is an example of a producer's fiduciary duty?
Recording receipt and remittance of premiums due to the Insurance company
When an insurer combines two periods of disability into one, the insured must have suffered a
Recurrent Disability
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
Who elects the Commissioner of Insurance to office?
Registered voters
Which of the following is NOT provided by an HMO?
Reimbursement
Todd has been informed that he has a hernia which requires repair. When Todd researches the cost. he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10. which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using?
Relative Value
What type of care is Respite care?
Relief for a minor caregiver
Which of the following is NOT one of the three types of term coverage based on what happens to the face amount during the policy term?
Renewable
The primary purpose of disability income insurance is to
Replace income lost due to disability.
When a policy is being replaced, the replacing company notifies the
Replacement company.
Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of
Replacement.
Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?
Residual disability
Under the Fair Credit Reporting Act. if a consumer challenges the accuracy of the information contained in a consumer or investigative report. the reporting agency must
Respond to the consumer's complaint.
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?
Return of premium
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?
Revocable
Which type of retirement account does not require the owner to start taking distributions at age 73?
Roth IRA
To sell variable life insurance policies. an agent must receive all of the following EXCEPT
SEC registration
Which of the following statements concerning a Simplified Employee Pension plan (SEP) IS INCORRECT?
SEPs are suitable for large companies
Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?
SEPs are suitable for large companies
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement options.
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium.
An Insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called
Single premium whole life
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each installment
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
Skilled care
Which of the following applicants would NOT qualify for a Keogh Plan?
Someone who works 400 hours per year
Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage?
Special risk policy.
An insured has endured multiple surgeries and hospitalizations for an illness during the last few months. Her insurer no longer bills her for medical expenses. Which of the following allows for that?
Stop-loss limit
Which of the following groups would most likely be covered under a blanket accident policy?
Students at a public school
Which of the following types of risk will result in the highest premium?
Substandard risk
Which of the following would basic medical expense coverage NOT cover?
Surgeon's Services
Which of the following would an accident-only policy NOT cover?
Surgery to repair a wrist damaged by tendonitis.
Medicare supplements specifically exclude all of the following EXCEPT
Surgical expenses of persons eligible for Medicare.
Which of the following is NOT an activity of daily living (ADL)?
Talking
Which of the following would help prevent a universal life policy from lapsing?
Target premium
The advantage of qualified plans to employers is
Tax-deductible contributions.
Any references to policy dividends must include a statement of what?
That dividends are not guaranteed
Which is true regarding obtaining underwriting sources?
The Applicant must be informed of the sources contacted and how the information is being gathered
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
The human resources director of an insurance company loves the policy they have with the company. They are personable, and the company wants to use them in a new advertisement.
The HR director can appear in the advertisement under the condition that the connection to the company is disclosed.
When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The Insured's contingent beneficiary
Which of the following is NO I a feature of a guaranteed renewable provision?
The Insurer can increase the policy premium on an individual basis
Which of the following is NOT covered under Plan A in Medigap insurance?
The Medicare Part A deductible
An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?
The PPO will pay reduced benefits.
If an applicant does not receive a copy of the new insurance policy, who would be held responsible?
The agent
Whose responsibility is it to determine if all of the questions on an application have been answered?
The agent
An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation?
The applicant
Which of the following is true about the requirements regarding HIV exams?
The applicant must give prior informed written consent.
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
What happens if a non-member physician is utilized under the Point-Of-Service plan?
The attending physician will be paid a fee for service. but the member patient will have to pay a higher coinsurance amount
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then
The benefit is received tax free.
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?
The benefits will be coordinated.
The entire contract is made up of all of the following EXCEPT
The buyer's guide.
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
The capital amount in a lump sum
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims.
The company is guilty of Misrepresentation
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued. what would be the policv's effective date?
The date of medical exam
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of medical exam
The policyowner of an adjustable lite policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller.
Which of the following best describes the tax advantage of a qualified retirement plan?
The earnings in a qualified plan accumulate tax deferred.
The limits of a health reimbursement account are set by
The employer
Which statement is NOT true regarding underwriting group health insurance?
The group is assessed individually for insurability.
Which statement regarding qualifications for Social Security disability benefits is NOT true?
The individual must be at least 65 years old.
Who bears all of the investment risk in a fixed annuity?
The insurance company
When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The insurance contingent beneficiary.
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
The insured
An employee is insured under her employer's group life plan. If she terminates her group coverage. which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
What is necessary in order to be eligible to receive benefits from a long-term care policy?
The insured must be unable to perform some activities of daily living.
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to
The insured's estate.
Which of the following is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis.
When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?
The insurer is considered to be notified since the notification to agent equals notification to the insurer.
When Linda suffered a broken hip, she notified her agent, in writing, within 12 days ot the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?
The insurer is considered to be notified since the notification to agent equals notification to the insurer.
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions
Which of the following Is NO a feature of a noncancellable policy.
The insurer may terminate the contract only at renewal of certain conditions.
How is it determined whether an insurer is allowed to write business in a state?
The insurer's domicile or location of incorporation will determine whether a company is domestic, foreign, or alien
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remains inside the insurance policy
Which of the following statements is true regarding coinsurance?
The larger the percentage that is paid by the insured, the lower the required premium will be.
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans?
The loan amounts are deducted from the death benefit
Which of the following is true regarding elimination periods and the cost of coverage?
The longer the elimination period, the lower the cost of coverage.
Which of the following will vary the length of the grace period in health insurance policies?
The mode of the premium payment
Which of the following definitions would make it easier to qualify for total disability benefits?
The more liberal "own occupation"
Hospital indemnity/hospital confinement indemnity policy will provide payment based on
The number of days confined in a hospital.
An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued.
In a life settlement contract, whom does the life settlement broker represent?
The owner.
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
In terms of parties to a contract. which of the following does NOT describe a competent party?
The person must have at least completed secondary education.
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only.
All of the following are true of key person insurance Except?
The plan is funded by permanent insurance only.
All of the following are general requirements of a qualified plan EXCEPT
The plan must provide an offset for social security benefits.
A policy with a 31-day grace period implies
The policy will not lapse for 31 days if the premium is not paid when due.
If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?
The policy will not lapse since payment to the agent is the same as a payment to the insurer.
Which of the following statements regarding the Change of Beneficiaries Provision is false?
The policyowner has the right to change beneficiaries in any case
which of the tollowing statements Is correct regarding a whole lite policy?
The policyowner is entitled to policy loans.
A policyowner names his five children as primary beneficiaries and his wife as a contingent beneficiary. If the policyowner and one of his children die, who would receive policy benefits?
The remaining 4 primary beneficiaries
Which is true about a spouse term rider?
The rider is usually level term insurance
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
On a health insurance application, a signature is required from all of the following individuals EXCEPT
The spouse of the policyowner.
An outline of coverage must be given to the applicant for a long-term care policy no later than
The time of initial solicitation.
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums.
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible.
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
They cover the cost of extended nursing home care.
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities.
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
Third-party ownership
Which of the following is NOT true regarding partial disability?
This is a form of insurance that covers part-time workers
All of the following are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insureds with no additional premium
All of the following are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insureds with no additional premium.
Which provision stipulates that misstatements made in a health insurance application may not be used to deny a claim after the policy has been in force for 2 years?
Time limit on certain defenses.
What is the purpose of Lite insurance solicitation regulation ?
To help consumers compare life insurance products in regard to their relative cost
What is the purpose of coinsurance provisions?
To help the insurance company to prevent overutilization of the policy
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force
Insurers usually do not reimburse claimants for 100% of income lost due to disability. What is the reason for insurer limitations on coverage amounts?
To provide an incentive for the insured to return to work
What is the purpose of COBRA?
To provide continuation or coverage for terminated employees
Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?
Transacting insurance.
Which of the following is NOT a responsibility of an insurance agent?
Underwriting the contract
According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT
Unearned premiums are retained by the insurance company.
What kind of policy allows withdrawals or partial surrenders?
Universal Life
An insured owns a lite Insurance policy. to be able to pay some of her medical bills. she withdraws a portion of the policy's cash value. there Is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal life
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal life
Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
Unlimited
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion. the death benefit of the permanent policy will be reduced by 50%.
Which of the following products requires a securities license?
Variable annuity
Which of the following terms will be permissible in describing a life insurance policy in company advertisements?
Variable plan.
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?
Variable universal life
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit.
The rider in a whole lite policy that allows the company to forgo collecting the premium it the insured is disabled is called
Waiver of premium.
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Warranty
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT
When the amount payable under Social Security is more than the amount payable under the rider.
When is the earliest a policy may go into effect?
When the application is signed and the check is given to the agent.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy
If a policy includes a tree-look period ot at least 10 days, the Buyer's guide may be delivered to the applicant no later than
With the policy.
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?
Withdrawals are not taxable.
Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?
Worker's occupation
A guaranteed renewable disability insurance Policy
a Is renewable at the insured's option to a specified age.
If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?
a) $3,000
An insured misstates her age at the time the life insurance application is taken. This misstatement may result in
adjustment in the amount of death benefit.
Which of the following is a feature of a variable annuity?
benefit payment amounts are not guaranteed
Which of the following must an insurer obtain in order to transact insurance within a given state?
certificate of authority.
an individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after one year since the annuity was purchased. What type of annuity is it?
deferred
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
felony
which is true about the cash surrender nonforfeiture option?
funds exceeding the premium paid are taxable as ordinary income
Which of the following riders would NOT increase the premium for a policyowner?
impairment rider.
The type of dental plan which is incorporated into a major medical expense plan is a/an
integrated dental plan
The policyowner wants to make sure that upon his death, the life policy will day a portion o the proceeds annually to his spouse. but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
interest only option
which of the following best describes A misrepresentation?
issuing sales material with exaggerated statements about policy benefits
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
level term.
After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?
monthly premium waiver and monthly income.
the dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the
one year term option
Which Universal Life option has a gradually increasing cash value and a level death benefit?
option a.
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
other-insured rider
Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?
payment of claims.
All of the following would be considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
All of the following are true regarding a decreasing term poy EXCEPT
that payable premium amounts steadily declines throughout the duration of the contract.
All of the following statements about equity index annuities are correct EXCEPT
the annuitant receives a fixed amount or return.
all of the following are true statements regarding accumulation at interest option except
the interest is not taxable since it remains inside the insurance policy
Which of the following best defines the "owner" as it pertains to life settlement contracts?
the policy owner of the life insurance policy
all of the following are true regarding the guaranteed insurability rider except
this writer is available to all insureds with no additional premium
According to the rights of renewability rider for cancelable policies, all of the following are correct about the cancellation of an individual insurance policy except
unearned premiums are retained by the insurance company
When is the earliest a policy may go into effect?
when the application is signed and a check is given to the agent
When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?
when the expenses exceed a certain percentage of the insured's adjusted gross income
Which of the following determines whether disability insurance benefits are taxed?
whether the premium has been tax deductible
Which of the following would NOT be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled.
Which of the following is NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
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?
"Own occupation" - less restrictive than other definitions
The violation of a cease-and-desist order may result in a fine of
$10,000.
What is the period of coverage for events such as death or divorce under COBRA?
36 months.
What is the number of credits required for fully insured status for Social Security disability benefits?
40.
If an insured's cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement?
5 Months
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
The free-look provision allows for which of the following?
A right to return the policy for a full premium refund
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Which of the following groups would probably be covered by blanket insurance?
A university's sports team
Who can make a fully deductible contribution to a traditional IRA
An individual not covered by an employer-sponsored plan who has earned income
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic.
Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)?
During the open enrollment period
The HMO Act of 1973 required employers to offer an HMO plan as an alternative to regular health plans if the company had more than 25 employees. How has this plan since changed?
Employers are no longer forced to offer HMO plans.
The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the
Entire contract clause.
J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive 1 policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?
February 28th, or 10 days after the time the policy is delivered.
Which of the following would NOT be considered a purpose of life insurance solicitation regulations in Georgia?
Help buyers choose most qualified insurance producers.
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary.
Which of the following is true about the premium on the children's rider in a life insurance policy?
It remains the same no matter how many children are added to the policy.
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
The primary eligibility requirement for Medicaid benefits is based upon
Need.
Which term describes the benefits of a life insurance policy that the policvowner does not automatically relinquish even if the policy lapses?
Nonforfeiture Values
Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?
Notice of Claim
Qualifications for soliciting, selling or negotiating a long-term care partnership policy include all of the following EXCEPT
Obtaining a partnership policy license from the Commissioner.
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to I the policy up early?
Paid-up option
Which of the following riders would NOT cause the Death Benefit to increase?
Payer benefit rider.
Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
Standard risk is representative of the majority of people.
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?
The group plan will not pay because of the employee was injured at work.
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
The insured's age at death.
To legally transact insurance in this state, an insurer must obtain which of the following?
certificate of authority.
Life income joint and survivor settlement option guarantees
income for two or more recipients until they die.
If policyowners repeatedly replace policies from the same agent, this is most likely evidence that
the agent knew that replacement was intended in connection with the sale and intentionally violated the replacement regulation.