Guaranteed

When are the agents required to provide the outline of coverage to an applicant for individual long-term care policy? A) At the time of policy delivery B) At the time of policy solicitation C) Only upon the applicant's request D) After the free-look period

B) At the time of policy solicitation

With respect to the entire contract clause in health policies, who has the authority to make change to an existing policy? A) Changes cannot be made on the policy B) Only an executive officer of the company C) Solely the producer D) Solely the policyowner

B) Only an executive officer of the company

Payor rider

- provides an additional safeguard for life insurance taken out on a minor. - If the adult premium payor dies or becomes totally disabled, premium payments will be waived until the child's a specific age of adulthood, such as 21.

When may HIV-related test results be provided to the MIB? A) Only if the individual is not identified B) Under all circumstances C) When given authorization by the patient D) Only when test results are negative

A) Only if the individual is not identified

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

A Major Medical Expense Policy would exclude coverage for all of the follow treatments EXCEPT A) Drug Addiction B) Eye refractions C) Dental Care D) Cosmetic Surgery

A) Drug Addiction

All of the following are consideration in an insurance policy EXCEPT A) The cash value in the policy B) The statements on the application C) The premium paid at the time of application D) The promise to pay covered losses

A) The cash value in the policy

An applicant misstates his age on his application for a health insurance policy. He states that he is 39, but his actual age is 49. When he files a claim, what will most likely happen? A) If the mistake was found after incontestability period, the benefit will be paid in full B) Benefits paid will be those that would have been purchased at the correct age C) Benefits will not be paid D) The policy will automatically be dropped

B) Benefits paid will be those that would have been purchased at the correct age

In credit life insurance, who is responsible for paying the policy premiums? A) Creditor only B) Borrower only C) Creditor and Borrower equally D) Creditor and Borrower proportionally

B) Borrower only

Which of the following is TRUE of level term insurance? A) The policy offers nonforfeiture values B) It is temporary protection C) The premium will increase or decrease based on current interest rates D) The policy endows at age 100

B) It is temporary protection

The reduction of premium option uses the dividend to reduce A) The premium on any other policy owned by the policyowner B) Next year's premium C) This year's premium D) The previous year's premium

B) Next year's premium

Which of the following best defines the unfair trade practice of rebating? A) Making false statements that are maliciously critical and intended to injury another person in the business of insurance B) Offering an inducement of something of value not specified in the policy C) Making statements that misrepresent an insurance policy in order to induce an insured to replace the policy D) Charging premium amounts in excess of the amount stated in the policy

B) Offering an inducement of something of value not specified in the policy

Policies written on a third-party ownership basis are usually written to cover A) Policyowner's estate B) Policyowner's minor children or business associates C) Policyowners who are not insureds D) Insured's estate

B) Policyowner's minor children or business associates

In an individual life insurance policy, when must the nonforfeiture benefits begin? A) At the request of the insured B) After the first policy year C) After 3 policy years D) At the end of the secondary policy year

C) After 3 policy years

An agent has created a new advertisement to help expand his business. Prior to use, the advertisement must be approved by A) The agent's supervisor B) The Department of Insurance C) The insurer's home office D) The NAIC

C) The insurer's home office

The "stop-loss" feature on a major medical policy is intended to A) Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense for the life of the policy B) Discourage insured from making unnecessary appointments at the doctor's office C) Establish the number of claims that may be filed on a policy in a calendar year. D) Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year

D) Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year

If the insurance premiums were not tax deductible, what other taxation will this affect? A) Federal income tax B) Taxation of benefits C) Taxation of interest D) Taxation of the policy's cash value

B) Taxation of benefits

Under the mandatory uniform provision Notice of Claim, written notice of a claim must be submitted to the insurer within what time parameters? A) Within 10 days B) Within 20 days C) Within 30 days D) Within 60 days

B) Within 20 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) One year after the occurrence of a disability B) 30 days after the loss C) 60 days after written proof of loss has been submitted D) 90 days after written proof of loss has been submitted

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

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care? A) Home health care B) Skilled care C) Intermediate care D) Custodial care

C) Intermediate care

Your client is a sole proprietor and wishes to include his family on a medical expense plan. How much of the cost of the medical expense plan can be deducted (since he is considered self-employed)? A) 0% B) 85% C) 90% D) 100%

D) 100%

A dentist is off work for 4 months due to a disability. His dental assistant's salary would be covered by A) Key Employee Disability B) Partnership Disability C) Business Overhead Insurance D) Disability Income

C) Business Overhead Insurance

Which of the following is NOT a standard exclusion in life insurance policies? A) War and military service B) Aviation C) Disability D) Hazardous occupation

C) Disability

The presumptive disability provision assumes that the insured is totally disabled upon loss of all of the following EXCEPT A) Hearing B) Two Limbs C) Feeling D) Sight

C) Feeling

Agents may be found guilty of defamation if they make false statements that are intended to A) Maliciously criticize another insurance company B) Deceive a policyowner C) Misinform prospective clients about policy coverage D) Misrepresent the benefits payable under policies

A) Maliciously criticize another insurance company

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? A) Joint and survivor B) Fixed Amount C) Fixed Period D) Interest only

B) Fixed Amount

If an insured pays a health insurance premium each month, how long would the grace period be under the policy? A) 7 days B) 10 days C) 14 days d) 25 days

B) 10 days

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select? A) Joint and Survivor b) Fixed-amount installments C) Fixed-period installments D) Life income

A) Joint and Survivor

Which of the following statements is INCORRECT A) The insurer does not have the right to conduct an autopsy B) The physical exam and autopsy provision gives the insurer the right to examine the insured, at its own expense C) The physical exam and autopsy provision gives the insurer the right to examine the insured as often as may be reasonably necessary while a claim is pending. D) The insurer also has the right to conduct an autopsy, if not forbidden by state law

A) The insurer does not have the right to conduct an autopsy

Which of the following statements concerning Medical Information Bureau is correct? A) The Medical Information Bureau report must be attached to each life insurance policy B) All applicants for life insurance receive a copy of the findings of the life insurance medical examination C) Information contained in the Medical Information Bureau report is available to all physicians D) The Medical Information Bureau assists underwriters in evaluating and classifying risks

D) The Medical Information Bureau assists underwriters in evaluating and classifying risks