General Lines Life and Health
An insured has a $ 1,000 HRA account through his employer . He incurred $ 750 in medical expenses the first year of the plan . How much , if anything , will the insured be able to roll over toward the next year's expenses ? A $0 B $250 C $750 D $1,000
B $250
An employee has a Flexible Spending Account ( FSA ) with a $ 5,000 annual benefit . This year the employee used $ 3,000 . What would be the amount of the benefit available to the employee next year ? a ) $ 7,000 b ) $ 5,000 c ) $ 3,000 d ) $ 2,000
b ) $5,000
Which of the following is a feature of a disability buyout plan ? A A lump - sum benefit payment option B Tax deductible premiums C Taxable benefits D A short elimination period
A A lump - sum benefit payment option
Which of the following is a short - term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated ? A Annuity certain B Fixed annuity C Refund life D Variable annuity
A Annuity certain
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy , this is called a ( n ) A Executive bonus В Key person policy C Fraternal association D Aleatory contract .
A Executive bonus
Which nonforfeiture option has the highest amount of insurance protection? A Extended Term B Conversion C Decreasing Term D Reduced Paid - up
A Extended Term
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits? A Fixed amount B Variable period C Variable amount D Fixed period
A Fixed amount
In which of the following locations would skilled care most likely be provided ? A In an institutional setting B At the patient's home C In an outpatient setting D At a physician's office
A In an institutional setting
Which of the following occupations would NOT directly help to qualify someone for the office of Commissioner of Insurance ? A Insurance agent B Certified public account C Executive in business administration D Practicing attorney
A Insurance agent
All of the following entities regulate variable life policies EXCEPT A The Guaranty Association B Federal government C The SEC D The Insurance Department
A The Guaranty Association
If an applicant does not receive a copy of the new insurance policy , who would be held responsible ? A The agent B The state C The insurer D The applicant
A The agent
Under which of the following annuity options does the annuitant select the time period for the benefits , and the insurer determines how much each payment will be? A Cash refund B Installments for a fixed period C Installments for a fixed amount D Installment refund
B Installments for a fixed period
Under workers compensation , which of the following benefits are NOT included? A Death benefits B Legal benefits C Medical and rehabilitation benefits D Income benefits
B Legal Benefits
Which of the following settlement options in life insurance is known as straight life? A Fixed amount B Life income C Single life D Life with period certain
B Life income
The primary eligibility requirement for Medicaid benefits is based upon А Number of dependents B Need C Whether the claimant is insurable on the private market D Age
B Need
In which of the following situations would Social Security Disability benefits NOT cease ? A The individual has undergone therapy and is no longer disabled B The individual's son gets a part - time job to help support the family C The individual reaches age 65 D The individual dies
B The individual's son gets a part-time job to help support the family
Question A life insurance policy used to fund an agreement that contractually establishes the intent of someone to purchase a business upon the insured business owner's death is a A Split - dollar plan B Stock redemption plan C Buy - sell agreement D Key person policy .
C Buy - sell agreement
Which of the following is considered a qualifying event under COBRA ? A Relocation B Promotion C Divorce D Marriage
C Divorce
Which of the following is NOT true regarding policy loans ? A An insurer can charge interest on outstanding policy loans B A policy loan may be repaid after the policy is surrendered C Money borrowed from the cash value is taxable DPolicy loans can be repaid at death
C Money borrowed from the cash value is taxable
Which of the following , when attached to a permanent life insurance policy , allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured , or allows amounts of temporary insurance to cover other family members? A Guaranteed insurability rider B Change of insured rider C Term rider D Accidental death and dismemberment rider
C Term rider
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer . This results in a long hospitalization period . Which of the following is true ? A The group plan will pay a portion of the employee's expenses B The group plan will pay depending on the employee's recovery C The group plan will not pay because the employee was injured at work D The group plan will pay .
C The group plan will not pay because the employee was injured at work
According to the rights of renewability rider for cancellable policies , all of the following are correct about the cancellation of an individual insurance policy EXCEPT A Claims incurred before cancellation must be honored B An insurance company may cancel the policy at any time C Unearned premiums are retained by the insurance company D The insurer must provide the insured a written notice of the cancellation
C Unearned premiums are retained by the insurance company
A whole life policy is surrendered for a reduced - paid up policy . The cash value in the new policy will a ) Remain the same b )Decrease over time c ) Reduce to the pre - surrender value d ) Continue to Increase
Continue to Increase
An insurer mails an insurance policy to a new policyowner . When the insurer relinquishes control of the policy , the policy is considered a ) Mailed b ) Issued c ) Relinquished d ) Delivered
D ) Delivered
Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT AThe plan is based on other than individual selection B All eligible employees must be covered C Coverage for plan participants is uniform D Individual members of the group may select the level of benefits for their own coverage .
D Individual members of the group may select the level of benefits for their own coverage .
Which of the following is TRUE regarding the accumulation period of an annuity ? A It is also referred to as the annuity period B It is a period of time during which the beneficiary receives income C It is limited to 10 years . D It is a period during which the payments into the annuity grow tax deferred
D It is a period during which the payments into the annuity grow tax deferred
Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage? A Limited Risk Policy B Specified Disease Policy C Credit Disability D Special Risk Policy
D Special Risk Policy
In a disability policy , the elimination ( or waiting ) period refers to the period between A The effective date of the policy and the date the first premium is due В Coverage under a disability policy and coverage under Social Security C During which any specific illness or accident is excluded from coverage D The first day of disability and the day the insured starts receiving benefits .
D The first day of disability and the day the insured starts receiving benefits .
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT A Any type of insurance policy may be used B The employer pays a bonus to a selected employee to fund the policy C It is considered a nonqualified employee benefit D The policy is owned by the company
D The policy is owned by the company
An insured notifies the insurance company that he has become disabled . What provision states that claims must be paid immediately upon written proof of loss ? A Incontestability B Physical Exam and Autopsy C Legal Actions D Time of Payment of Claims
D Time of Payment of Claims
What is the timeframe for filing relevant Suspicious Activity Reports? A Within 30 days of the suspicious transaction В Within 90 days of initial discovery C Within 90 days of the suspicious transaction D Within 30 days of initial discovery
D Within 30 days of initial discovery
Under the common accident provision , how many deductibles would be paid if five family members covered under the same major medical policy are injured in the same accident ? a ) 1 b ) 2 c ) 3 d ) 5
a ) 1
In a noncontributory group policy a ) 100 % of eligible employees must participate b ) 75 % of all employees must elect to join the plan c ) 100 % of employees must be allowed to participate d ) 75 % of eligible employees must elect to join the plan
a ) 100 % of eligible employees must participate
What does an annuity protect the annuitant against ? a ) Living longer than expected b ) Leaving beneficiaries without income c ) Estate taxes d ) The financial impact caused by premature death
a ) Living longer than expected
HMOs are known as what type of plans ? a ) Service b ) Health savings c ) Consumer driven d ) Reimbursement
a ) Service
All of the following are advantages of a qualified retirement plan EXCEPT a ) The income at retirement is tax free b ) The contribution is deductible to the employer c ) The contribution is not taxable to the employee when made d ) The funds grow tax deferred
a ) The income at retirement is tax free
The benefits from a business overhead expense insurance policy a ) Are only available upon the business owner's death b ) Are limited to covered expenses and are taxable to the business c ) Cover all business expenses but are taxable to the business owner d ) Are received tax free .
b ) Are limited to covered expenses and are taxable to the business
The entire contract includes all of the following EXCEPT a ) A copy of the application b ) Any riders or amendments c ) Abuyer's guide d ) The life insurance policy
c ) Abuyer's guide
Which of the following is NOT true regarding a noncancellable policy ? a ) The guarantee to renew coverage usually only applies until the insured reaches age 65 b ) Insured has the unilateral right to renew the policy for the life of the contract , and may discontinue paying premiums to cancel it c ) Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected d ) Insurer cannot cancel the policy .
c ) Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
The benefits for group disability plans are based on a ) A flat amount b ) The employer's net worth c ) The number of employees of the company d ) A percentage of the worker's income
d ) A percentage of the worker's income
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT A The insurer determines the amount for each payment B It is a life contingency option C It will pay the benefit only for a designated period of time . D The payments are not guaranteed for life
B It is a life contingency option
Why should the producer personally deliver the policy when the first premium has already been paid ? A To make sure the policy is not stolen or lost B To help the insured understand all aspects of the contract C To ensure the producer gets paid commission D To find out how the family has been doing since the initial presentation
B To help the insured understand all aspects of the contract
The Commissioner of Insurance issues a Cease and Desist Order to an agent . If the agent wishes to contest the charges in court how many days after the order was issued does the agent have to make the request ? A 10 days B 30 days C 60 days D 90 days
C 60 days
Which of the following is a short - term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated? A Refund life B Variable annuity C Annuity certain D Fixed annuity
C Annuity certain
Which of the following best describes fixed - period settlement option ? A The death benefit must be paid out in a lump sum within a certain time period B Income is guaranteed for the life of the beneficiary C Both the principal and interest will be liquidated over a selected period of time D Only the principal amount will be paid out within a specified period of time
C Both the principal and interest will be liquidated over a selected period of time
If a policy includes a free - look period of at least 10 days , the Buyer's Guide may be delivered to the applicant no later than A Upon issuance of the policy B Within 30 days after the first premium payment was collected C Prior to filling out an application for insurance D With the policy
D With the policy
Premiums paid by an employer for group health insurance are a ) Tax deductible to employee b ) Included in the employee's taxable income c ) May be different amount for different employees d ) Tax deductible to employer
d ) Tax deductible to employer
All of the following are true of the Survivorship Life policy EXCEPT a ) The death benefit is not paid until the last death b ) The premium would be lower than in a joint life policy c ) It can insure more than 2 lives d ) The premium is based on the age of each insured
d ) The premium is based on the age of each insured
When enrolling an applicant for HMO coverage , all of the following evidence of coverage must be provided to the applicant EXCEPT a ) Cancellation provisions b ) The HMO's address c ) A schedule of benefits d ) The applicant's health status
d ) The applicant's health status
What is the purpose of the impairment rider in a health Insurance policy ? a ) To cover impairments that otherwise could not be covered b ) To provide disability coverage c ) To identify pre - existing conditions d ) To exclude coverage for a specific impairment
d ) To exclude coverage for a specific impairment
What is the purpose of a benefit schedule ? a ) To include the average charges for procedures b ) To provide the dates for the payment of benefits c ) To list the insured's copayments and deductibles d ) To state what and how much is covered in the plan
d ) To state what and how much is covered in the plan
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable . What contract characteristic does this describe ? A Conditional B Contingent C Aleatory D Unilateral
A Conditional
A man decided to purchase a $ 100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college . He discovered that his policy A Decreased death benefit at each renewal B Required a premium increase each renewal C Built cash values . DRequired proof of insurability every year .
B Required a premium increase each renewal
When delivering a policy , which of the following is an agent's responsibility? A Approve or decline the risk B Collect medical statement from physician C Collect payment at time of delivery D Issue the policy if the applicant is present
C Collect payment at time of delivery
Which statement is NOT true regarding underwriting group health insurance? A The cost of the policy is partially determined by the ratio of males to females in the group В Everyone in the group is covered , regardless of their medical history C The group is assessed individually for insurability D The premiums are reassessed annually .
C The group is assessed individually for insurability
In the event a policy lapses due to nonpayment of premium , within how many days would the policy be automatically reinstated once the outstanding premium is paid? A 10 days B 25 days C 30 days D 45 days
D 45 days
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer ? A 7 days B 10 days C 30 days D 60 days
D 60 days
What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application ? A 90 days after the effective policy date B 6 months after the effective policy date C 1 year after the effective policy date D As long as the policy is in force
D As long as the policy is in force
Representations are written or oral statements made by the applicant that are A Guaranteed to be true B Found to be false after further investigation C Immaterial to the actual acceptability of the insurance contract D Considered true to the best of the applicant's knowledge .
D Considered true to the best of the applicant's knowledge
What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan ? A A broad coverage area B A low monthly premium C Low cost deductibles D Diagnostic and preventive care
D Diagnostic and preventive care
If an annuitant dies before annuitization occurs , what will the beneficiary receive? A Either the amount paid into the plan or the cash value of the plan , whichever is the lesser amount B Amount paid into the plan C Cash value of the plan D Either the amount paid into the plan or the cash value of the plan , whichever is the greater amount
D Either the amount paid into the plan or the cash value of the plan , whichever is the greater amount
What are the three basic coverages for medical expense insurance ? A Basic , Major , Overhead B Medical , Dental , Vision C Reimbursement , Preventive , Service D Hospital , Surgical , Medical
D Hospital , Surgical , Medical
A guaranteed renewable disability insurance policy A Is renewable at the option of the insurer to a specified age of the insured B Is guaranteed to have a level premium for the life of the policy C Cannot be cancelled by the insured before age 65 . D Is renewable at the insured's option to a specified age
D Is renewable at the insured's option to a specified age
An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT A Universal life B Variable universal life C Whole life D Level term
D Level term
Regarding the free - look provision , the insurance company A Cannot charge a premium after 10 days B Must issue a free policy for 30/31 days C Must issue a free policy for 10 days D Must allow the policyowner to return the policy for a full refund .
D Must allow the policyowner to return the policy for a full refund
All of the following would be different between qualified and nonqualified retirement plans EXCEPT A Taxation of withdrawals B Taxation of contributions C IRS approval requirements D Taxation on accumulation
D Taxation on accumulation
Jis 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 ? a ) Fixed Period b ) Interest Only c ) Joint and Survivor d ) Fixed Amount
d ) Fixed Amount
Which of the following is TRUE of level term insurance? a ) The premium will increase or decrease based on current interest rates b ) The policy endows at age 100 c ) The policy offers nonforfeiture values d ) it is temporary protection
d ) it is temporary protection