Final exam missed

In order to get a nonresident license is this state, agents must

Apply and pay a fee to a nonresident state that reciprocates.

All of the following are true of annually renewable term insurance EXCEPT

Proof of insurability must be provided at each renewal.

With whole life insurance, which of the following best describes the cash value of the policy?

The cash value can be borrowed by the owner, but the insurer may assess interest.

Long term care coverage may be sold in all of the various ways EXCEPT

As a part of a Medicare supplement policy by the use of an endorsement.

Which of the following is NOT a typical type of Long-Term Care coverage?

Child day care

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report.

All of the following must sign an application for health insurance EXCEPT the

Insurer.

HMOS are known as what type of plans?

Service

The reduction of premium option uses the dividend to reduce

Next year's premium.

S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have?

Simplified Employee Pension (SEP)

Which statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer.

Which of the following policies would NOT offer a policy loan option?

Term life

An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?

Conditional Receipt

If an insured pays a health insurance premium each month, how long would the grace period be under the policy?

10 days

How long must a life insurance policy be in force before the owner can enter into a viatical settlement contract?

5 years

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 cash value.

Which of the following is the licensing requirement for a producer who sells continuous care coverage in this state?

Accident and health, as well as casualty license

An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a Long-Term Care (LTC) facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT

Acute.

Company Cis developing its own advertising script to be used in their radio advertising campaign for their LTC policies. Which of the following words or phrases would be allowed?

Benefits paid directly to you'

In credit life insurance, who is responsible for paying the policy premiums?

Borrower only

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

Delivered.

Credit accident and health insurance provides indemnity for a debtor on a specific loan, during

Disability.

A Major Medical Expense policy would exclude coverage for all of the follow treatments EXCEPT

Drug addiction.

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed Amount

The guaranteed purchase option is also referred to as the

Future increase option.

All of the following are excluded from coverage in an individual health insurance policy EXCEPT

Mental illness.

All of the following are consideration in an insurance policy EXCEPT

The cash value in the policy.

With Adjustable Life, the owner can change all of the following EXCEPT

The insured.

When an insured terminates membership in the insured group, the insured can convert to

Whole life without proof of insurability.

Which of the following will NOT be included in the buyer's guide?

Specific information about the policy

Which of the following is NOT true regarding insurance consultants?

They may be employed by licensed producers or brokers.

What is the purpose of the impairment rider in a health insurance policy?

To exclude coverage for a specific impairment

An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

Currently insured

Which of the following is a correct statement about annuities?

Fixed annuities do not provide protection against inflation.

Benefits provided by a health policy for the treatment of alcoholism must include all of the following EXCEPT

Over-the-counter withdrawal aids.

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

Prior to performance of the test

An Equity Indexed Annuity will grow based upon

Performance of a recognized index.

Policies written on a third-party ownership basis are usually written to cover which of the following?

Policyowner's minor children or business associates

In group insurance, the primary purpose of the Coordination of Benefits provision is to

Prevent overinsurance.

All of the following are features of catastrophic plans EXCEPT

High premiums.

Which dividend option will increase the death benefit?

Paid-up additions

The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

Purchase of a new home.

Which of the following are characteristics of term life insurance?

Temporary protection, renewability, no cash value

An insured is anxious to get treatment for a health condition, and is convinced that a specialist is needed to cure the condition. If the insured has a PPO plan, which of the following is true?

The insured can select any specialist, but non-network specialists will have higher out-of-pocket costs.

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured.

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

To guarantee that reconstructive surgery benefits will equal the benefit amount provided by the policy for the mastectomy, the reconstructive surgery must take place

Within 3 years of the mastectomy.

When may HIV-related test results be provided to the MIB?

Only if the individual is not identified

With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?

Only an executive officer of the company

Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an

Preferred Provider Plan.

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums.

A producer previously licensed in another state recently moved to Nevada and now wishes to obtain a resident license. In order to avoid education and examination requirements, how soon must the license application be received?

Within 90 days after establishing legal residence

Regarding health insurance, all of the following are tax-deductible EXCEPT

Employee paid group disability income.

When a settlement option is chosen at death, how are the monthly income payments taxed?

The principal portion is generally income tax-free while the interest portion is taxed as ordinary income.