FINAL EXAM Life Insurance

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After an annuity has been in force for __year(s), It becomes incontestable

2

All Louisiana licensed producers must complete which of the following continuing education requirements

24 Hours every 2 years

After ___ year(s) from date of issue, a policy can no longer be cancelled by the insurer for misstatements (except for fraud)

3

After a disability policy has been in force for __year(s), it is considered incontestable.

3

A producer must notify the Commissioner within __ days of a felony conviction.

30

After the first payment is made, the grace period for an accident and health policy is

30 days

A newborn is required to be covered for __ days from the moment of birth.

31

A Roth IRA owner must be at least what age in order t omake tax-free withdrawals?

59 1/2 and owned account for a minimum of 5 years

A rollover from a Traditional IRA to another IRA must be done within __ days to avoid tax consequences

60

A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed __ of the individual's adjusted gross income.

7.50%

A policyowner who anticipates death or develops a life-threatening condition may obtain proceeds from a life insurance contract. These proceeds are known as

Accelerated benefits

A long term care policy typically provides all of the following levels of care except

Acute care

A policyowner may change two policy features on what type of life insurance?

Adjustable life

A change in an insurance application requires

An initial made by the applicant

A licensed producer MUST be _____ by an insurer to be eligible for soliciting insurance contracts

Appointed

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)

Association or labor group

A renewable Term Life Insurance policy can be renewed

At a predetermined date or age regardless of the insured's health

According to life insurance contract law, insurable interest exists

At the time of application

A company that is authorized by the Commissioner to transact insurance business in Louisiana is called a(n)

Authorized insurer

A domestic insurance company in Louisiana MUST

Be organized under Louisiana insurance laws

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing

Benefit limits

A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)

Collateral assignment

A Louisiana insurance producer solicits a life insurance policy. In the even of a controversry between the insured and the company, the producer is considered to represent the

Company

A waiver of premium rider allows an insured to waive premium payments if the insured is

Completely and permanently disabled

A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called

Conditionally renewable

A producer who sells most of his/her insurance policies to family members is said to be engaging in

Controlled business

____ is NOT an element of a valid contract.

Countersignature

____ life is designed to pay the balance of a loan if the insured dies before repayment of the loan

Credit

Advertising regulations exist in order to

Demonstrate full and truthful disclosure to the public

A form of medical health insurance covering the treatment and care of gum disease is called

Dental expense insurance

A medicare Supplement policy's outline of coverage MUST include a(n)

Description of policy benefits

A Medicare Supplement Policy is

Designed to fill in the gaps of Part A and Part B Medicare

A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?

Disability Income Rider

A doctor who accepts Medicare Assignment agrees to which of the following?

Doctor cannot charge more than Medicare's scheduled coverage

A pharmacy benefit covers prescription drugs derived from a list called a(n)

Drug formulary

A Medicare Supplement Policy must NOT contain benefits which

Duplicate Medicare benefits

A professional liability for which producers can be sued for mistakes for putting a policy into effect is called

Errors and Omissions

A life insurance policy normally contains a provision that restricts coverage in the event of death under all fo the following situations EXCEPT

Fare-paying passenger

A health care provider claim may be settled using which of the following payment methods?

Fee-for-service

A payment system for health care in which the provider is paid for each service given is called?

Fee-for-service

After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?

File written proof of loss

A Medicare supplement plan can be canceled by the insurer

For nonpayment of premiums

A cease and desist order

Forbids a stated practice listed in the order

A group Disability Income plan that pays tax-free benefits to covered employees is considered

Fully contributory

A master contract and certificate of coverage can be found in which type of policy?

Group

A business will typically use which type of life insurance to cover their employees?

Group Policy

A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n)

Guaranteed insurability rider

A health insurance policy that allows an insurer to change the policyowners premiums, but NOT cancel the policy is called a(n)

Guaranteed renewable policy

A dependent child may remain on a parents health insurance plan beyond age 26 if the child

Has a mental or physical handicap and remains dependent on the parent

A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment

Indicates a preexisting condition

A policyowner is prohibited from kaing any changes to the policy without the beneficiary's written consent under which beneficiary designation?

Irevocable beneficiary

A foreign insurance company doing business in Louisiana

Is a company that was formed under the laws of another state

According to HIPAA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual

Is eligible for coverage upon hire

A person covered with an individual health plan

Is issued a policy

A life insurance policy written on one contract for two people in which it is payable upon the first death is called

Joint

A common exclusion with Vision plans is

Lasik surgery

A limited payment whole life policy provides

Lifetime protection

A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n)

Limited pay policy

A life insurance policy that has premiums paid up within a select time period is called

Limited payment insurance

All ____ policies must be guaranteed renewable

Long-term care

A viatical settlement broker may NOT

Make any transactions before being approved for a license

A guaranteed issued insurance policy has no

Medical underwriting

A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the

Named living primary beneficiaries

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed?

No federal income tax is owed on life insurance proceeds

A whole life policy option where extended term insurance is selected is called a(n)

Nonforfeiture option

A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n)

Nonforfeiture provision

A medicare supplement policy can be cancelled by the insurer for

Nonpayments

A beneficiary change can occur:

Normally at any time during the policy term

A business entity wishing to act as an insurance prodcuer MUST

Obtain a producer's license

A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n)

Optional renewability clause

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decreas in income resulting form this injury would make him eligible for benefits under which provision?

Partial disability

A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n)

Partial surrender

According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied?

Participation or contribution rules have been violated.

A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)

Payor rider

All Medicare Supplement policies MUST contain which provision?

Pre-Existing conditons may be excluded from coverage for a maximum of 6 months

A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?

Preferred

A rehabilitation benefit is intended to

Prepare the insurer to return to employment

A health insurance policy will typically cover

Preventative health services

All health Benefit Plans issued after January 1, 2014 must provide

Preventative health services

A(n) ______ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.

Producer

A nonresident producer from a state outsideo f Louisiana may become licensed in Louisiana IF a(n)

Reciprocal arrangement exists with the state of domicile

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?

Reduction of premium dividend option

A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the

Reinsurer

According to Louisiana law, group life insurance conversion privileges must NOT

Require evidence of insurability

A life insurance policyowner does NOT have the right to

Revoke an absolute assignment

A preexisting condition is a condition for which medical advice or treatment was recocmmended by or received from a provider of health care service with __months preceding a health policy's efffective date.

Six

A life insurance replacement transaction could result in a/n

Surrender charge

A medicare supplement basic benefit is

The first 3 pints of blood per year

A Whole life Insurance policy accumulates cash value that becomes

The policy loan value which the insured may borrow against

A disability elimination period is best described as a

Time deductible

A field underwriter's main task is

To ensure an applicant's medical information is accurate and complete

A life insurance policy sold in Louisiana can be contested by the insurer only during the first __ years of the contract.

Two

A producer license is NOT required when

Underwriting insurance

A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called

Universal life

A life insurance policy that is subject to a contract interest rate is referred to as

Universal life

"Maximum benefits" refers to the

Upper limit of the total lifetime benefits the insurance company will pay

A securities license is required for a life insurance producer to sell

Variable Life Insurance

A life insurance policy which contains cash values that vary according to its investment performance of stocks is called

Variable whole life

A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract?

Viatical settlement agreement

A renewable Term Life Insurance policy allows the policyowner the right to renew the policy

Without producing proof of insurability


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