Guarantee Exam 1 Wrong Questions

In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received? No tax Tax deductible State income tax Federal income tax

No tax

In Minnesota, Medicare supplement insurance policies must provide a free-look period of a) 30 days b) 45 days. c) 10 days. d) 20 days.

a) 30 days

Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to a) 60 days after written proof of loss has been submitted b) 90 days after written proof of loss has been submitted. c) One year after the occurrence of a disability. d) 30 days after the loss.

a) 60 days after written proof of loss has been submitted

An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment? a) Conditional Receipt b) Provisional Receipt c) Advanced Premium Receipt d) Premium Receipt

a) Conditional Receipt

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT a. When the amount payable under Social Security is more than the amount payable under the rider b. When used to replace or supplement benefits payable under other social insurance programs. c. When the insured is eligible for social Security benefits but before the benefits begin. d. If the insured has been denied coverage under Social Security.

a. When the amount payable under Social Security is more than the amount payable under the rider

In order to get a nonresident license is this state a producer must a) Surrender their license in their state of residence. b) Apply and pay a fee to a nonresident state that reciprocates. c) Pass the nonresident state exam and satisfy their continuing education requirements. d) Represent an agency located is this state.

b) Apply and pay a fee to a nonresident state that reciprocates

A Medicare supplement policy must have a free-look period of at least a) 10 days. b) 15 days. c) 30 days. d) 45 days.

c) 30 days.

What Minnesota initiative helps people who are unable to buy health insurance coverage in the normal market from private insurers? a) Limited Health Service Organizations (LHSO) b) Health Insurance Portability and Accountability Act (HIPAA) c) Comprehensive Health Insurance Act (CHIA) d) Health Maintenance Organizations (HMOs)

c) Comprehensive Health Insurance Act (CHIA)

Regarding the consideration clause, which of the following is NOT correct? a) The insurer's consideration consists of providing coverage. b) The insured's consideration consists of providing information on the application, as well as agreeing to pay the premium. c) Consideration of the insurer and insured must be equal. d) Consideration is defined as the exchange of values.

c) Consideration of the insurer and insured must be equal

A producer who failed to comply with the state continuing education requirement is guilty of a a) First degree offense. b) Class A violation. c) Misdemeanor. d) Felony.

c) Misdemeanor.

Which of the following whole life policies charges a level annual premium for the lifetime of the insured? a) Level term b) Increasing term c) Straight life d) Limited-pay whole life

c) Straight life

An insured had a heart attack while jogging, but is expected to return to work in approximately 6 weeks. The insured's Disability Income policy will a) Not pay. b) Pay a lump-sum benefit. c) Replace a percentage of his lost income. d) Cover injuries only.

c) Replace a percentage of his lost income.

All of the following health insurance disability benefits are income tax free EXCEPT a) Employer-paid group disability. b) Employee-paid group disability. c) Key-person disability benefits. d) Personally-owned individual disability insurance.

a) Employer-paid group disability.

HMOs are known as what type of plans? a) Service b) Health savings c) Consumer driven d) Reimbursement

a) Service

No life insurance policy or certificate may be issued or delivered by an insurer organized in Minnesota until it has been approved by a) The Insurance Commissioner. b) The National Association of Insurance Commissioners. c) The Internal Revenue Service d) The Governor.

a) The Insurance Commissioner.

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy? a) Demand full payment immediately for the claim b) Speak with a claims adjuster or another representative from the insurance company. c) Submit the description in their own words on a plain sheet of paper. d) Be reimbursed any copayment or deductible on the claim

c) Submit the description in their own words on a plain sheet of paper

Which statement best describes agreement as it relates to insurance contracts? a) All parties must be capable of entering into a contract. b) Each party must offer something of value. c) One party accepts the exact terms of the other party's offer. d) The intent of the contract must be legally acceptable to both parties.

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

The guaranteed purchase option is also referred to as the a) Multiple indemnity rider. b) Impairment rider. c) Evidence of insurability rider. d) Future increase option

d) Future increase option

Which of the following statements is NOT true regarding health insurance policy provisions? a) Insurers may add provisions that are not in conflict with uniform standards. b) All additional provisions written by insurers are cataloged by their respective states. c) All individual policies contain Universal Mandatory Provisions. d) Insurers may only offer optional provisions that are allowed by the state where the policy is delivered.

b) All additional provisions written by insurers are cataloged by their respective states.

In a homeowners policy, which of the following coverages provides protection against bodily injury and property damage claims against the insured? a) Coverage D b) Coverage E c) Coverage B d) Coverage C

b) Coverage E

A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy? a) Per occurrence b) Family c) Flat d) Annual

b) Family

An insurance company that is owned by the policyholders is called a a) Reciprocal insurer. b) Mutual insurer. c) Fraternal insurer. d) Stock insurer.

b) Mutual insurer.

Which of the following terms relates to disability income insurance? a) Insurable interest b) Residual benefit c) Coinsurance stop loss d) Deductibles

b) Residual benefit

A temporary license in this state is valid for how many days? a. 60 b. 180 c. 120 d. 30

b. 180

A Major Medical Expense policy would exclude coverage for all of the follow treatments EXCEPT a. Cosmetic surgery. b. Drug addiction. c. Eye refractions. d. Dental care.

b. Drug addiction.

Which of the following is an example of an unfair claims settlement practice? a. Using arbitration when the insured and insurer cannot reach agreement b. Failure to promptly settle a claim when liability has been clearly established c. Denying coverage after a reasonable investigation has been conducted d. Making claims payments which clearly indicate under which coverage payment has made

b. Failure to promptly settle a claim when liability has been clearly established

A stock insurer is defined as an insurer a) Owned by its policyowners. b) That invests at least 20% of its premium income in the stock market. c) Who pays dividends to its policyowners. d) Owned by its stockholders.

d) Owned by its stockholders.

Medicare Part A services do NOT include which of the following? a) Post hospital Skilled Nursing Facility Care b) Hospitalization c) Hospice Care d) Private Duty Nursing

d) Private Duty Nursing

Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased? a) The insured's estate even if a beneficiary is living b) The insured's beneficiary's first choice c) To any remaining debtors the insured owes d) The insured's primary beneficiary

d) The insured's primary beneficiary