Exam Questions
a subscriber has been treated for a medical condition by his primary care physician for 3 months with experimental remedies without a significant health improvement before being referred to a specialist. Which of the following types of plans does the subscriber have?
a gatekeeper HMO plan to control the costs
according to the life insurance replacement regulations, which of the following would be an example of policy replacement?
a policy is reissued with a reduction in value
which of the following persons is required to hold a producer license in this state?
a salaried employee who advertises and solicits insurance
which policy rider added to a disability income policy may require that a benefit be paid as a capital sum
accidental death and dismemberment
which of the following riders pay a beneficiary death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy
accidental death rider
which rider when added to a disability policy, pays income during the six month waiting period before SS benefits begin
additional monthly benefit
if an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will
adjust the death benefit to what the premium would have purchased at the actual age or gender
who is considered a nonresident agent
an agent who resides in another state, but is license to write insurance in this state
an elimination period may not have to be satisfied for a disability in which of the following
an insured suffers a relapse of a prior disability within 6 months of initial covered
which of the following premium modes would result in the lowest overall premium?
annual
in order to get nonresident license in Louisiana, producers must
apply and pay a fee to a nonresident state that reciprocates
which of the following would NOT trigger the payment of accelerated death benefits
being permanently disabled
which of the following is not a characteristic of variable insurance and annuities
benefits are determined solely based on the policy premium
which of the following would be true of both the fixed period and fixed amount settlement options
both guarantee that the principal and interest will be fully paid out
which of the following would be an example of an insurer participating in the unfair practice of discrimination
charging the insured higher premiums based on their race
when an agent obtains an insurance license for the primary purpose of writing insurance for himself, his spouse, or his own business, this is called?
controlled business
which of the following meets the insured's personal needs and is provided by nonmedical personnel
custodial care
which of the folllowing is not a standard exclusion in life insurance policies?
disability
the uniform provision law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called the
entire contract provision
an applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts
fair credit reporting act
an insured has a routine exam, blood work, and a follow up appt with a specialist. The insured receives a bill for each service provided. What type of plan does the insured have?
fee for service
a medicare supplement plan must have at least which of the following renewal provisions
guaranteed renewable
slippery floors, reckless driving, or providing false information are exmaples of
hazards
Because of the imposed blackout period, the surviving spouse will not receive social security benefits until
he/she qualifies for retirement benefits
which sourcde of underwriting information includes information on an applicant's character, general rep, personal habits, and mode of living?
investigative consumer report
a policyowner who cannot borrow the equity, has designated the beneficiary as
irrevocable beneficiary
all of the following statements are true regarding an ordinary straight life policy except
it does not have a guaranteed death benefit
what advantage does the recurrent disability provision provide to the insured under a disability income policy
it eliminates the imposition of a second elimination period for the same disability
which of the following best describes life annuity with a period certain option?
it guarantees benefit payments for the life of the annuitant and for a specificied period for the beneficiary
which of the following statements is true regarding advertising that the insurance guaranty association would ensure payment of benefits in the event of the insurer insolvency?
it is an unfair trade practice to mention the association in the advertisements
which of the following is not true of the agents implied authority
it is specifically stated in the contract
utilization management consist of an evaluation of the appropriateness, necessity, and quality of health
prospective and concurrent review
the purpose of the fair credit reporting act is to
protect consumers against the circulation of inaccurate or obsolete personal/financial information
which of the following best describes pure life annnuity
provides the highest monthly benefit
an insured recently had a new home built and insisted on having smoke detectors installed in multiple place in the house. What method of handling risk is the insured using?
reduction
all of the following are true regarding the federal fair credit reporting act except
reports may be sent to anyone who requests one
if an insured purchases an insurance policy with a large deductible what risk management technique is the insured exercising
retention
carlos health insurance policy pays benefits according to a list that indicates the amount that is payable under each type of covered treatment/procedure. Carlos's policy provides benefits on a
scheduled basis
the premium on a health insurance policy is due Feb 1 it is Feb 15th, but the insurer hasn't received the premium. What must the insurer do?
send the policy owner a notice requesting the premium and informing about the policy lapse
an agents license may be suspended or revoked for all of the following reasons EXCEPT
sharing commissions with another agent
the family term rider incorparates
spouse term and childrens term
which risk classification is representative of the majority of people in a certain age group and with similar lifestyles
standard
which of the following actions does not constitute false advertising
stating that dividends are not guaranteed
an adjustable life policy can assume the form of
term insurance or permanent insurance
whose responsible for the health insurance application
the agents
an employee may enroll in an employees group health plan when he/she initially becomes eligible without proof of insurability, should he/she enroll at another time, evidence of insurability is required EXCEPT at
the annual open enrollment period
in a group policy, all of the following can be the policyowner except
the insurance company
an applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when
the insurance company accepts the risk
what is the only difference between blanket insurance and group health insurance
the insured members are not named
under the payment of claims provisions, to whom will the insured's benefits be paid if the insured is deceased?
the insured's primary beneficiary
which of the following statements is INCORRECT
the insurer does not have the right to conduct an autopsy
which of the following would not be eligible for coverage under key person
the owner of a shop
who is the annuity owner
the person who purchases
every medicare supplementary policy must have a notice to buyer on the front page that states
this policy may not cover all of your medical expenses
medicare health insurance program for all the following individuals except
those with low income and low assets
Which of the following types of insurance policies would perform the function of cash accumulation?
whole life insurance
how long is the grace period for an individual life insurance policy
1 month
how many days' notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?
30 days
Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?
Insuring clause
a man is an attorney when he applies for a health policy. he decides to become a professional bungee jumper. He files a claim, what should happen?
The insurance co. will pay the claim according to the benefits available if the correct premium had been paid
which of the following is not a personal use of life insurance
a buy-sell agreement
which of the folllowing defines own occupation disability with respect to disability income insurance
a disability that results in the insured being unable to work at their regular job even though they may be able to perform the duties of another occupation
the benefits for group disability plans are based on
a percentage of the worker's income
A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
coercion
during the accumulation phase of a fixed annuity, the annuitant's interest rate is based on a minimum rate as a specified in the contract, or the current interest rate whichever is
higher
under what circumstnaaces will the contingent beneficiary receive the death benefit
if the primary beneficiary dies before the insured
what does the guaranty association guard against
insurer insolvency
an agreement that is enforceable by law is known as what kind of contract
legal
how are policy loans calculated
the policy's cash value minus unpaid loans and accrued interest
if the producer allows his license to lapse, what time period must it be reinstated?
2 years
if a licensee changes his or her residence address, within how many days must the director be notified
30 days
which of the following time periods is the general enrollment period for medicare part B
January 1 to March 31
in order to reinstate a life insurance policy the insured must do all of the following EXCEPT
pay next years premium in advance
all of the following statements about mutual insurance companies are correct except
policy dividends issued by mutual companies are guaranteed and not taxable
as individual is applying for health insurance. His health history is nearly perfect, healthy weight, no smoking, what risk classification?
preferred
what is the difference between a straight life policy and a 20 pay whole life policy
premium payment period
Once the initial benefit limit in Medicare part D is reached, how is the beneficiary affected?
the beneficiary is then responsible for a portion of prescription drug costs
who has the authority to issue cease and desist orders
the commissioner
all of the following are true about key person insurance except
the death benefit is taxable to the business
who determines if a particular group of employees can be excluded from group health coverage
the employer
all of the following are true about group life insurance except
the employer is the beneficiary
when an insured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
under the mandatory uniform provision notice of claim, written notice of a claim must be submitted to the insurer within what time parameters
within 20 days
within how many days of the final disposition of the matter must a producer report administrative actions taken against him or her to the commissioner?
30 days
insurers must keep files of all advertisements used in lousiana for
4 years
an agent suspects that his insurer is committing insurance fraud. Within how many days of discovery must the agent report to the DOI?
60 days
under the mandatory uniform provision legal actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted
an annuity has accumulated the cash value of 70,000 of which 30,000 if from premium payments, the annuitant dies during the accumulation phase. The beneficiary will receive
70,000
insurance contracts are unilateral in nature. What does that mean?
Only one party makes a promise
a specified disease policy would cover which of the following
cancer
which of the following statements about the advertising of life insurance policies is correct?
it is the insurers responsibility to control the content and form of the advertisement
guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentation
the reduction of premium options uses the dividend to reduce
next years premium
what is a specific requirement regarding the number of employees in a simple plan
no more than 100 employees
Cash value guarantees in a whole life policy
nonforfeiture values
which of the following best defines the unfair trade practice of rebating
offering an inducement of something of value not specified in the policy
which dividend option will increase the death benefit
paid up additions
on an accidental death and dismemberment policy, the death benefit payable is known as the
principal sum
all of the following are true of annually renewable term insurance except
proof on insurability must be provided at each renewal
if the commmissioner issues a cease and desist order, that means the insurer must
stop committing a particular violation
