Guaranteed Exam

Under long term care policy, the commission or other compensation provided for a minimum of 5 subsequent years cannot exceed what % of the renewal premium

10%

The contingent benefit on lapse will be triggered when an insurer increases an insureds premium rates to a certain level , and the policy subsequently lapses within how much time

120 days

Cash Value guarantees in a whole life policy are called

Nonforfeiture values

What months are the open enrollment period for state insurance exchanges

November 1 to January 31

When an individual is covered under 2 health insurance policies that have duplicate benefits which could make a claim for benefits because of illness or injury profitable is called

Overinsurance

Which Nonforfeiture option provided the most coverage

Reduced Paid Up-Whole life to age 100

What entity has the option of including optional provisions in a health insurance policy

The Insurer

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty

$2500

An insured recently underwent surgery related to a specified disease. How much can her specified(dread)disease policy pay for this expense

$3500

An insured disability income policy includes a monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before SSI benefits begin

1 year

How long is the right to examine period for new individual annuities for this state

1 year

What does an annuity protect the annuitant against

Living longer than expected

Annuities certain limit the amount paid by the annuity to a certain fixed

Period or Fixed Amount

What is the elimination period for Social Security Benefits

5 months

A core Medicare supplement policy (Plan A) will cover all of the following expenses EXCEPT a) Part A deductible b) The first 3 pints of blood c) 20% if Part B coinsurance amounts for Medicare-approved services d) Part A coinsurance

A. Part A Deductible

Which rider pays a beneficiary a death benefit that is double or triple the face amount if the insured death was caused by an accident as defined in the policy

An accidental death rider

According to the common disaster clause, if the insured and the primary beneficiary are killed in the same accident and it can't be determined who died 1st, who would be assumed to be the first that died

The primary beneficiary died before the insured

What describes the agreement as it relates to insurance contacts

There must be a definite offer by one party and this offer must be accepted in it's terms by the other party. Agreement includes both offer and acceptance

In some cases, in order for an insurer to legally disclose privileged information to appropriate sources, the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of information? a) 1 month b) 6 months c) 1 year d) 2 year

C. 1 Year

A vIatical settlement is a transaction outside the life insurance company policy for which of the following a. more than the face value b. A predetermined multiple of the premium c. A % of the face amount of the policy d.. The face amount of the policy

C. In a viatical settlement, an insured with a reduced life expectancy sells his/her to a 3rd party for a % of the face amount

Which settlement option is designed to pay life insurance proceeds in 1 lump sum

Cash Payment-If no settlement option is chosen the proceeds are automatically paid to the beneficiary in a single cash payment

Life insurance creates an immediate estate. Which of the following best explains this statement a. The policy has cash values & nonforfeiture values b. The policy immediately generates cash value c. The death benefit will always be paid to the insured d. The face value of the policy is payable to the beneficiary upon the death of the insured

D. Unlike a traditional estate where the value of personal wealth is built up over time, a life insurance policy's face value is available immediately in one lump sum upon the death of the insured

Regarding health insurance, which policy is NOT tax deductible

Employee Paid Group Disability Income/ when employers pay for a portion of the group disability premiums they are tax deductible

Who determines if a particular group of employees can be excluded from group health coverage.

Employer/They can specify how many hours are considered full time, and whether both salaried and hourly employees will be covered

The benefits for individual disability plans are based on

a flat amount, while group disability plans are based on a % of the workers income

what is the difference between blanket insurance and group health insurance

in blanket insurance the insured are not named

Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary?

interest only option (temporary option) until some later point where a lump sum is paid out

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

misrepresentation

Decreasing term insurance is often used to do what?

pay a mortgage

what is the consideration on the part of the insurer

paying the claim

What must be listed by producers during replacement

policies still in force and policies sold in the last 5 years

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended Term

Which Nonforfeiture option provided the highest death benefit

Extended Term-B/C the death benefit is matched to the old policy

Which settlement option is where a specified # of years is selected and equal installments is paid to the recipient

Fixed Period installments . The size of the installment is determined by the principle amount, guaranteed interest and the length of period selected. Does not guarantee income for life but the entire principle will be paid out

which settlement option pays a fixed specified amount in installment until the principle and interest is exhausted

Fixed amount option-Does not guarantee income for life but the entire principle will be paid out

What happens to the proceeds of the life income option if the beneficiary dies before the principle is completely exhausted

The balance of the principle is forfeited to the insurance company

Which settlement option provides an income the recipient can't outlive.

The life income (straight life) provides a benefit with the recipient with an income they cannot outlive. The amount paid is based on the recipients life expectancy and the amount of principle.

What are the features of a Major Medical policy (4)

High maximum limits, Copayments, Blanket Coverage, and a deductible

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

Immediately

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

When comparing a joint life policy to 2 individual life policies of the same amount on the same insureds, which will have a lower premium rate

Joint Life-Since Joint life only pays one death benefit(at the 1st death) it's premium is less than the 2 individual policies

Which settlement option guarantees payment for a lifetime with a specified guarantee time

Life with period certain