Exam simulator 2 continued

At minimum, Long Term Care policies in Indiana must contain

A 30 day free look period

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

Aleatory

What does the insuring agreement in a life insurance contract establish?

An insurer's basic promise

Which rider provides coverage for a child under a parent's life insurance policy?

Child term rider

What does the Indiana life and health insurance guaranty association provide?

Claim payments of admitted, insolvent insurance companies

Which of the following features of a group term life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion privilege

Which of the following is NOT a situation that involves life insurance policy replacement?

Converting a term policy to a permanent policy with the same insurer

Consumers who purchase health insurance through a marketplace/exchange:

Do not have their health history taken into account

A group life insurance policy can be converted to an individual whole life policy under which circumstance?

Employment termination

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?

Face amount plus the policy's cash value

A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?

Guaranteed Insurability Option rider

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Guaranteed insurability rider

T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?

Increase her policy's coverage amount

All of these statements about the Waiver of Premium provision are correct EXCEPT

Insured must be eligible for Social Security disability for claim to be accepted

Which health policy clause specifies the amount of benefits to be paid?

Insuring

The conversion provision in a group health insurance policy:

Is mandated by state requirements

All of the following are limited benefit plans, Except

Life insurance policies

An applicant MUST receive an outline of coverage when an application is taken for a :

Medicare supplement policy

Which of these statements concerning an individual straight life annuity is accurate?

Payments are made to an annuitant for life

What is the consideration given by an insurer in the consideration clause of a life policy?

Promise to pay a death benefit

Under the ACA, consumers must have health insurance as of January 1, 2014 that contains Minimum Essential Coverage (MEC). Individuals who are exempt from this law include:

Religious objections

Insureds in the same risk classification are being charged different premiums by an insurance company. This insurer is committing the illegal act of

Unfair discrimination

What does the ownership clause in a life insurance policy state?

Who the policyowner is and what rights the policyowner is entitled to

Who is NOT required to sign a life insurance application?

beneficiary

What type of group insurance plan involves employees sharing the cost?

contributory plan

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

employee

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have

insurable interest in the proposed insured

Which of the following individual health insurance policies will provide the broadest protection?

major medical

Pre-hospitalization authorization is considered an example of

managed care

The Notice of Claims provision requires a policyowner to:

notify an insurer of a claim within a specified time

Which of the following services is NOT covered under a hospitalization expense policy?

surgeon's fees

A noncontributory group term life plan is characterized by:

the entire cost of the plan is paid for by the employer

The most important factor to consider when determining whether to convert term insurance at the insureds attained age or the insureds original age is:

to cost

An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?

$1,250 3.5 months - 1 month elimination period = 2.5 months. 2.5 months X $500 monthly indemnity = $1,250.

C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000?

$720

S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?

36

Which of the following is NOT considered rebating?

Sharing commission with an agent licensed in the same line of business

What is the underlying concept regarding level premiums?

The early years are charged more than what is needed

Which of the following characteristics is Correct about interest Sensitive Whole life?

There is a flexible premium payment

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is:

Time Limit on Certain Defenses

Group Life polices in Indiana are required to contain a conversion privilege that allows for conversion:

To an individual policy for a stated period of time.

J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?

Twisting