Health and Life Insurance Exam, Questions
any form of life insurance
A buy-sell agreement can be funded by what form of life insurance?
Increased benefits
Issue age policy premiums increase in response to what?
universal life
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?
doctor
Who can provide skilled nursing care?
The employer is the owner and beneficiary.
Who is the owner and who is the beneficiary on a key person life insurance policy?
Refund of the original amount minus payments already made
With the cash refund option, when the annuitant dies, what would the beneficiary receive?
Exposure
A condition that could result in a loss is now as what?
within 1 year of revocation
A producer's license has been revoked for a violation of the Insurance Code. When can the producer apply for a new license?
taxable
An distributions from MEC's are what? This includes withdrawals and policy loans.
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
An insured has chose joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
They are tax deductible
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
Illegal
An insurer devised an intimidation strategy in order to corner a large portion of the insurance market. What best describes this practice?
It is used to lower premiums
An insurer invests money it receives form premiums paid by its insurers, what would happen to this investment?
an estate they liquidate
Annuities do not create a what? but they do this?
Rated
Another name for a substandard risk classification is what?
10 years
Any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance my be imprisoned for up to how long?
Unlawful Insurance Fraud
Any statements made on an application for insurance, renewal of policy, claims for payment or benefits, premiums paid, and financial condition of an insurer that are false or omission of material fact are considered to be what?
false advertising
Circulation deceptive sales material to a public is what type of Unfair Trade practice?
False Advertising
Circulation deceptive sales material to the public is what type of Unfair trade practice?
Case Management Provisions
Cost-saving services are what?
Interest
During a partial withdrawal form a universal life policy, which portion will be taxed?
misrepresentation
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant, what best describes this?
30 months
Employer health plans must provide primary coverage for individuals with end-stage renal disease before medicare becomes primary for how many months?
first 20 days
Following hospitalization of rat least 3 days, if medically necessary, medicare pays for all covered services during the first how many days in a skilled nursing facility?
Tax-free
Group medical and dental benefits are relied in what way to the employees?
First premium has been paid and the application has been approved.
Health coverage become effective at what time?
within 90 days or as soon as reasonably possible, but not to exceed 1 year
How soon following the occurrence of a covered loss must an insured submit written proof of such loss t the insurance company?
5 days
IF a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
Guaranteed insurability rider
IF a life policy allow she policy owner to make periodic additions to the face amount at standard rates, without provide insurability, the policy includes a what?
Within 30 days and it could result in a $50 fine
IF a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the commissioner? and what could be the result fine if they don't?
The surrender charge is a percentage of the cash value and decreases over time
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
provide evidence of insurability
If a policy owner of an adjustable life policy wants to increase the death benefit what could he do?
interest only option
If a policyowner wanted to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal be paid to their children when they reach a certain age would choose what option?
Lump Sum
If a settlement option is not chosen by the beneficiary or policy owner, which option will be used?
Refund the premium
If an insured committed suicide one year after his life insurance policy was issued what would the insurer do?
Co-payment
In a group prescription drug plan, the insured typically pays what amount of the drug cost?
Mental Illness
In health underwriting, it would be inappropriate to decline a risk using what?
Pure Risk
Insurance is defined as the transfer of what to the insurance company in consideration for a premium?
5 years
Insurer examinations must occur no less frequently than every what?
Rates by Class
Insurers may change which of the following on a guaranteed renewable health insurance policy?
gets higher
Regarding long-term care coverage's the elimination period gets shorter, the premium does what?
One-year term option
The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as what?
A certain period of time and typically 50% of the total disability benefit
The payment of partial disability benefits is limited to what?
Legal actions
The provision which prevents the insured form bringing any legal action against the company of rat least 60 days after proof of loss is known as what?
The state
The regulation of the insurance industry primarily rests with who?
Hazard
This increases the chance of loss.
Human Life Value Approach
This type of approach is a way of determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. what is it?
a securities license A life insurance license A FINRA registration
To sell variable life insurance policies, an agent must receive what?
Monthly
Under an individual disability policy, the minimum schedule of time in which a claim payment must be made to an insured is what?
Metal Level Classification
Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?
The source of the report
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained n a consumer report, have to be informed of what?
Must be informed of the source of the report
Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report must be what?
Bail-Out provision
What allows the owner to surrender an annuity without a charge?
Installments for a fixed period
What annuity option does the annuitant select the time period for benefits and the insurer determine how much each payment will be?
It provides income the beneficiary cannot outlive
What can happen regarding a single life settlement option?
the option of purchasing coverage that raises benefit levels accoridingly
What do long-term care policies offer the policyholders to account for inflation?
Face Amount
What does "level" refer to in level erm insurance?
The guaranty Association The SEC The insurance Department
What entities regulate variable life polices?
the guaranty association
What entity doesn't regulate variable life policies ?
Health Maintenance Organization plan
What health care plan would most likely provide the insured/subscriber with comprehensive health care coverage?
Health Maintenance Organization Plan
What is an HMO?
Modified Endowment Contract
What is an MEC?
Ancestry
What is not a relevant faced assessed in a consumer report?
Method of premium payment
What is not a type of a disability policy?
Insurers are barred from requisition HIV testing
What is not true regarding HIV testing for life insurance policies?
Conditonally renewable
What is the contract provision that allows the insurer to non renew health coverage if certain events occur?
5 years
What is the maximum amount of time that could pass before an insurer's financial stability would be examined?
To cover the expenses of retraining the insured to return to work
What is the purpose of the rehabilitation benefit in disability insurance?
to cover expenses of retraining the insured to return to work
What is the purpose of the rehabilitation benefit in disability insurance?
Beneficiaries are not identified by name
What is true about class designation?
The source must be identified
What is true regarding statistics use din an advertisement?
Human life value approach
What method of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?
Registered nurses licensed practical nurses' licensed vocational nurses or community based organizations like hospice
What occasional visits to a persons home is covered under LTC home health care?
Guarantee of insurability
What option allows the insured to periodically increase benefit without providing evidence of insurability?
Joint and Survivor
What option guarantees an income for two or more recipients that none of them can outlive?
Straight Life
What policy would be classified as a traditional level premium contract?
Payment of claims
What provision would prevent an insurance company from paying a reimbursement claim to someone other than the policy owner?
Policy of Claims Provision
What provision would prevent an insurance company from paying a reimbursement claim to someone other than the policy owner?
Increasing Term
What type of insurance would be used for a return of premium rider?
Consumer Report
What type of report includes information regarding a person's credit, character, reputation and habits?
Speculative Risk
What type of risk is not insurable?
Providing a customer with an incomplete illustration
What would be a violation of a life policy illustration regulation?
31 days
When an employee terminates coverage under a group insurance policy, coverage continues in force for how long?
Recurrent disability
When an insurer combines two periods of disability into one, the insured must have suffered what?
case management provision
When an insurer offers services like readmission testing, second options regarding surgery, and preventative care, what term would best apply?
time of payment of claims
Which provision States that the insurance company must pay medical expense claims immediately?
period of time
Which renewability provision are you most likely to see on a travel accident policy?
The refund of the original amount minus payments already made
With the cash refund option, when the annuitant dies, what would the beneficiary receive?
Misrepresentation
making false or misleading statements with the intent to defraud another is what?
National association of Inusruance Commissioners
what is the NAIC?
application
what is the basic source of information used by the company in the risk selection process?
Bail-out provision
This provision allows the owner to surrender the annuity without charge if interest rates drop a specified amount within a certain timeframe?
3
What is the minimum required number of continuing education credits in ethics every licensing period?
Promote the public welfare
What is the purpose of insurance regulation?
NAIC
A long term care insurance shopper's guid must be provided in the format developed by who?
tax deductible
Contributions to a health savings account are what?
Ratio of men and women in the group
Group life is based on what?
2 or more
HIPPA applies to groups of what?
Cash surrender extended term Reduced paid-up option
Nonforfeiture values include what?
occupational or nonoccupational
disability insurance can be written as what ?