Guarantee Exam Practice Questions
During policy replacement, the policyowner is entitled to a free-look period of how many days?
20 days
How many day's notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?
30 days
The Commissioner will send the insurer an appointment renewal notification for any licensees whose appointments are about to expire at least how many days before the renewal date?
60 days
While completing a life insurance application, the applicant realizes that she should have answered an earlier question differently. What should the agent do to make the necessary change?
Cross out the incorrect information, write in the correct answer, and have the applicant initial the change.
Which of the following bears the investment risk in a variable life insurance policy?
The policyowner
Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?
the insured's primary beneficiary
Life insurance disclosure rules would apply to which of the following types of coverage?
Whole Life
Which of the following types of insurance policies would perform the function of cash accumulation?
Whole Life
An employee is insured by a group major medical plan that is provided through her employer. The employer contributes 75% of the premium and the employee contributes the remaining 25%. If the insured received a benefit from this policy in the amount of $1,000, how much of this benefit would be taxed as income?
$0
If a producer wants to sell annuity contracts, how often must the producer complete annuity suitability training?
One-Time training only
A core Medicare supplement policy (Plan A) will cover all of the following expenses EXCEPT
Part A deductible
Which of the following best describes the type of care provided by HMOs?
Preventative
All of the following are true of annually renewable term insurance EXCEPT
Proof of insurability must be provided at each renewal
Before an insurer may transact business in a specific state, they must apply for a license or Certificate of Authority from the state department of insurance and meet
Solvency Requirements
An employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continues to receive coverage under the plan. Which of the following explains the reason for the continued coverage?
The employee is totally disabled
Who determines if a particular group of employees can be excluded from group health coverage?
The employer
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?
Variable whole life
An insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary Upon his death, his beneficiary decides not to receive the death benefit for some time. When she finally receives the death benefit check, it's in the amount of $250,530. Is any portion of the proceeds that the beneficiary receives taxable?
Yes, proceeds in excess of face amount are taxable as interest.
When can an insured initiate legal action against the insurer?
60 days after submitting proof of loss
The benefits for group disability plans are based on
A percentage of the workers income
What is the purpose of the impairment rider in a health insurance policy?
To exclude coverage for a specific impairment
Producer licenses are valid from the initial licensing or reinstatement period until
the last day of the licensee's birth month plus 1 year.
All of the following are examples of a policy replacement EXCEPT
A term policy is being converted to whole life
Which policy rider added to a disability income policy may require that a benefit be paid as a "capital" sum?
Accidental Death and Dismemberment
An applicant has a Medicare supplement policy and is enrolled in Medicare Part C. Which of the following would a producer or issuer be permitted to do under the guidelines?
Begin a ne supplement coverage after the current Part C plan expires
All of the following are features of a health insurance plan purchased on the health insurance marketplace EXCEPT
Dollar limits on essential benefits
A Major Medical Expense policy would exclude coverage for all of the following treatments except
Drug addiction
If an employee remains on an employer group health plan within a company that has 20 employees and signs up for Medicare, which of the following coverages will be primary?
Employer Group Health Plan
How often must organizations consult the National Do Not Call Registry?
Every 31 days
All of the following information needs to be included on an application for life insurance EXCEPT
Health insurance policies in force
During the accumulation phase of a fixed annuity, the annuitant's interest rate is based on a minimum rate as specified in the contract, or the current interest rate, whichever is:
Higher
An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?
Level
Which of the following is NOT a component of an insurance policy premium?
Number of beneficiaries
Which of the following is NOT a characteristic of a Managed Care Plan
Risk Retention
Premiums paid by an employer for group health insurance are
Tax deductible to employer
Which of the following services will NOT be provided by an HMO
Unlimited coverage for treatment for drug rehabilitation
Which of the following would NOT trigger the payment of Accelerated Death Benefit
Being permanently disabled
An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when
The insurance company accepts the risk
