Examfx

It would not occur in a deferred annuity

Which of the following is NOT true regarding the accumulation period of an annuity?

The medicare Part A deductible

Which of the following is not covered under plan A in Medigap insurance?

A minor son of the insured

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insurers death

Medicaid

Which of the following programs expands individual public assistance programs for people with insufficient income and resources?

The Fair Credit Reporting Act

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Payment of claims

Which of the following provisions would prevent an insurance company from paying a reimbursement clean to someone other than the policyholder?

The employer is the policy holder

Which of the following statements concerning group health insurance is CORRECT

The mode of the premium payment

Which of the following will vary the length of the grace period in health insurance policies?

Automatic premium loan

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, nut the policy remains in force. This is due to what provision?

Pay the policy proceeds only if it would have issued the policy.

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Reduction of premium

According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT

The interest is not taxable since it remains inside the insurance policy

All of the following are TRUE statements regarding the accumulation at interest option 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

Fixed-period installments

All of the following are dividend options EXCEPT

Buy-sell agreement

All of the following are personal uses of life insurance EXCEPT

All licensed agents must comply by January 1 of even numbered years

All of the following statements about the continuing education requirement in this state are true EXCEPT

Death benefits are paid only if death occurs within 24 hours of an accident

All of the following statements concerning Accidental death and dismemberment coverage are correct EXCEPT

The policy is owned by the company

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

15-year level term

An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT.

Have the insured sign a statement acknowledging that they are aware of the change

Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The agent informed the insured of this change, and they accept it. In response the agent must

6 months to 2 years

Benefit periods for individual short-term disability policies will usually continue from

No, the group must be formed for a purpose the other than obtaining group insurance

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?

Presumptive disability

Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe?

Small employer

Company Y had 20 employees on staff last year. Which of the following terms most precisely labels the company's group insurance classification?

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as

100% participation of members is required in noncontributory plans

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

They are not included as income for the employee, but are taxable upon distribution

How are contributions to a tax-sheltered annuity treated with regards to taxation?

Within 90 days or as soon as reasonably possible, but not to exceed 1 year

How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?

5 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

30 days

If an HMO policy is cancelled for nonpayment of the amounts due under the contract, how long of a notice must the insurer give the insured?

Settlement option

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a?

It is only taxable if the cash value exceeds the amount paid for premiums

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy

Assets

In a replacement situation, all of the following must be considered EXCEPT

50/50

Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be the best for Ray?

100%

S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct

Insurable Interest

Stranger-oriented life insurance policies are in direct opposition to the principle of

Gradually Increases each year by the amount that the cash value increases

The death benefit under the universal life option B

A right to return the policy for a full premium refund

The free-look provision allows for which of the following

Entire contract

The insurance policy, together with the policy application and any added riders form what is know as

The method of premium payment

The insuring clause of a disability policy usually states all of the following EXCEPT

Taxable

The interest earned on policy dividends is

Insurance companies from adverse selection by high risk persons

The medical information bureau (MIB) was created to protect

The beneficiary

The primary beneficiary of her husbands life policy found that no settlement option was stated in the policy on the date of her husbands death. Who will select the settlement option in this case.

legal benefits

Under Worker's Compensation, which of the following benefits are NOT included?

Must be informed of the source of the report

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

90 days of loss

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

Cash surrender

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Premium always stay the same

Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT

The original age is used for premium determination

What is the advantage of reinstating a policy instead of applying a new one?

Guaranteed renewal

What is the minimum renewability standard for long-term care policies issued in this state?

Giving a client $25 pen with the insurers logo during the insurance application process

Which of the following would NOT be considered rebating?

Time of payment claims

Which provision states that the insurance company must pay medical expense claims immediately

Replacement rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Insurer

Whoo must pay for the cost of a medical examination required in the process of underwriting?

To help the insured understand aspects of the contract

Why should the producer personally deliver the policy when the first premium has already been paid?

Conditional

when both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

The applicant must be informed of the sources contacted and how the information is being gathered

which is true regarding obtaining underwriting sources

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

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?

Twisting

An insurance agent wants for a client to replace her current annuities plan with another one. He presents the new one in an incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. The policy owner ends up surrendering the original contract and replacing it with the new one. Which term best describes what the agent did?

false advertising

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

Stop loss limit

An insured had endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met?

Paid-up additions

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?

0%

An insured owns a general disability policy and is injured during a war, rendering him disabled. what will be the extent of benefits that he will receive.

10 days

An insured pays a monthly premium of $100 for her health care. What would be the duration of the grace period under her policy?

The insured is in an accident and incurs a large claim

An insured purchased a noncancellable health insurance policy 1 year ago. which of the following circumstances would NOT be a reason for the insurance company to cancel the policy

Revocable

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?

The applicant

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?

Rebating

Any inducement offered in the sale of insurance products that is not specified in the policy is an unlawful practice known as

The insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible

Insured Z's health insurance policy year begins in January. His policy contains a carry-over provision. In November, he has a small claim which is less than his deductible. Which of the following is true?

$900 ( deductible + 20% of the bill after the deductible [20% of 2,000)]

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?

Endorsement to a healthy policy

Longterm care coverage may be available as any of the following options EXCEPT

$0

What is the typical deductible for basic surgical expense insurance?

On the first page

Where in the long-term care policy must the insurer state the renewal provision?

Divorce

Which of the following is considered a qualifying event under COBRA

Both the principle and interest will be liquidated over a select period of time

which of the following best describes fixed period settlement option

Cash to the owner's business partner to accomplish a buyout

A small business owner is the insured under a disability policy that finds a buy-sell agreement.IF the owner dies or becomes disabled, the policy would provide which of the following?

Interest only option

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. What settlement option should the policyowner choose?

Convertible term policy

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

The agent

if an applicant does not receive a copy of the new insurance policy, who would be held responsible?

Disability income

A waiver of premium provision may be included with which kind of health insurance policy.

The customers associates, friends, and neighbors provide the reports data

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

Elimination period

In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the

Is not covered

In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost

Entire contract clause

The provision in a health insurance policy that insures that the insurer cannot refer to any document that is not contained in the contract is the

Legal actions

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

The producer

The responsibility of making certain that an application for insurance is filled out completely, correctly, and two the best of his or her knowledge is the responsibility of whom?

Between 100% and 400%

To be eligible for tax credits under the ACA, individuals must have income that is what percent of the Federal Poverty Level?

Unlimited access to providers

Which characteristic does NOT describe managed care

War or military service

What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

They determine how death proceeds will be paid

What is the purpose of settlement options?

50%

What percentage of continuing education hours must be in a classroom setting?

Grace period

What provision in a life or health insurance policy extends coverage beyond the premium due date?

It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason.

What statement best describes the free look provision

Discrimination

When twin brothers applied for life insurance from company A, the company found that while neither of them smoked and both had similar lifestyles, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

Payment is limited to a certain period of time

Which of the following applies to partial disability benefits?

The death benefit is fixed

Which of the following is NOT true regarding a Variable Universal life policy?

The application given to a prospective insured

Which of the following is Not the consideration in a policy?

Its goal is to channel patients to providers that discount services

Which of the following is true of a PPO?

Continuation Provision

Which of the following provisions states the insurers right to change premium accounts

Insurer

which of the following entities can legally bind coverage?