INSURANCE

According to Pennsylvania Law, postnatal care must be delivered within how many days of discharge?

2 days

Written notice for a health claim must be given to the insured___days after the occurrence of the loss.

20

Producers must complete a total of ___ continuing education credits for each two year licensing period.

24

In Pennsylvania, the definition of total disability changes from one's "own occupation" to "any occupation" by reason of one's education, training, and experience after what period of time?

24 months

An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit?

25%

In Pennsylvania, the Time Limit on a Certain Defenses provision provides that no misstatements (EXCEPT fraud) made by the applicant on a health insurance application can be used to void the policy or deny coverage after the expiration of.....

3 years

Within how many days must a producer report to the commissioner any charges made against him/her?

30

A licensed producer must report any administrative action taken against the licensee in another jurisdiction or by another agency department in Pennsylvania within how many days of the final disposition?

30 days

In a long term care policy, the right to examine period is...

30 days

In accident and health plans, premiums paid less frequently than monthly require a minimum grace period of at least.....

31 days

In Pennsylvania, accident and health plans are required to provide mammograms for woman starting at age.....

40

Under Pennsylvania statute, first year commission for long term care insurance may not be greater than....

50% of the first year premium

The Medicare Supplement open enrollment period is the....

6 month period that begins with the month in which enrollment in ....

In Pennsylvania, and employee must request spousal coverage under a group sponsored accident and health plan within ___ days of marriage.

60

if the health insurance claims not promptly paid, legal action may be taken against the insurer after.....

60 days from the date to proof of loss is furnished

As classified by the Affordable Care Act (ACA), a Silver Plan offers...

70% actuarial level of coverage provided

Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?

A good health statement

In Pennsylvania, what's the requirement for a minor to receive proceeds from a death benefit?

A guardian must be appointed

How soon can the benefit payments begin with a deferred annuity?

A minimum of 12 months after the date of purchase

A temporary license maybe issued without state examination to all of the following EXCEPT

A prospect producer who is currently in rolled in a pre-licensing insurance class

A temporary license may be issued without state examination to all the following except the following EXCEPT

A prospective producer who is currently enrolled in a pre-licensing insurance class

An accident and health Major Medical plan would provide coverage for...

Accidental overdose of a prescription drug

What is the difference between a Long Term Care Plan and a Non Partnership Plan?

Asset protection

What is implied authority defined as?

Authority that is not specifically AG agent can reasonably assume to carry out his/her duties

With a scheduled dental policy, how are covered expenses paid?

Benefits are limited to a specific maximum dollar amount per procedure

According to Pennsylvania law, which of the following is NOT considered to be personally identifiable financial information?

Blind trust data that does not include names and addresses

What are the levels of coverage as defined by the Affordable Care Act?

Bronze, Silver, Gold, and Platinum

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?

Business overhead expense policy

Insurable interest does NOT occur in which of the following relationships?

Business owner and business client

In Pennsylvania, who is responsible for Continuing Education (CE) course content approval?

Commissioner

In Pennsylvania, which of the following is NOT something a licensee must do to renew their insurance license?

Confirm previous exam scores

Proceeds of the vatical settlement contract could be subject to the claims of...

Creditors

A form of medical health insurance covering the treatment and care of gum disease is called...

Dental expense insurance

A Doctor Who excepts Medicare assignment agrees to which of the following?

Doctor cannot charge more than Medicare's scheduled coverage

which prohibited act involves a producer spending our clients insurance premiums for his/ her own personal use?

Embezzlement

A professional liability for which producers can be sued for mistakes of putting a policy into affect is called...

Errors and omissions

which of the following is required to maintain a producers license in Pennsylvania?

Field underwriter, who solicits insurance and earns a commission

Violations of US Code Title 18 section 1033, may result in.....

Fine and/or imprisonment

When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?

Gains

For licensing purposes, if an applicant has a home or office location in the state of Pennsylvania, this would be consistent with which of the following?

Home state

The Pennsylvania department of insurance may take each of the following actions EXCEPT

Incarceration

Which of the following provisions protects a Pennsylvania policyowner from an innocent mistake made on the application over 2 years ago?

Incontestability provision

When a producer offers something of value in return for the purchase of an insurance policy, which prohibited sales practice has been committed?

Inducement

A resident producer license requires each of the following EXCEPT

Insurer appointment

Violating Pennsylvania insurance law may result in which of the following Insurance Department actions?

Issuance of a cease and desist order after a hearing

In Pennsylvania a completion of continuing education is required upon license renewal to the following?

Licensed individuals qualified and major lines of insurance

Which type of annuity stops all payments upon the death of the annuitant?

Life annuity

Which of the following annuity payout options makes no additional payments regardless of when the new ED dies?

Life only

Viatical settlement brokers are permitted to do all of the following EXCEPT

Make the first transaction up to 30 days before approved for a license

During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT

Misstatement of age in the application

What is the required action to be taken by the Pennsylvania licensee before operating under an assume business name?

Notify Commissioner

Joe is a Medicare participant who receives his benefits through a managed healthcare plan. Which Medicare plan does he have?

Part C

States that have "no loss no gain" laws require a replacing policy to...

Pay for ongoing claims under the policy it replaces

Which of the following is a person who negotiates an insurance contract on behalf of an insurer?

Producer

who can receive an insurance commission?

Producer

What is required before an insurance producer can act as a representative of an insurer?

Producer needs to be appointed by that insurer

In Pennsylvania, an insurance producer can be denied for failure to pay each of the following EXCEPT...

Property tax

The branch of dentistry which deals with the replacement of missing parts is called....

Prosthodontics

What is the purpose of the Pennsylvania Life and Health Insurance Guaranty Association?

Provide policyowner protection if and insurer becomes insolvent

The Commissioner is responsible for all of the following EXCEPT

Recommending insurers

Any of the following may be an unfair claims practice EXCEPT

Refusing to pay persons bringing false or fraudulent claims

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called....

Replacement

Which accident and health policy provision allows the policyowner a stated amount of time to return a newly delivered policy for a full refund of premiums if not for any reason?

Right to examine

Which market index is normally associated with an indexed annuity's rate of return?

S & P 500

Long Term care policies must provide coverage for claims arising from...

Senile Dementia

The Pennsylvania Insurance Department is responsible for each of the following EXCEPT

Shareholders

In Pennsylvania, a producer may have their license revoked for which of the following acts?

Signing a prospect's name without their knowledge or presence

In Pennsylvania, an insurer may backdate policy issue not more than how many months from the date of a life insurance application?

Six months

A life insurance producer licensed in the Commonwealth of Pennsylvania is authorized to...

Solicit, receive and forward applications to the insurer

James is the insured on a life insurance policy where his age was missed stated on the application. Which of the following is CORRECT regarding the death benefit amount?

The death benefit paid will be what the premium would have purchased at the correct age.

Krissia purchases a 10 year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true?

The face amount and premium will remain constant over the 10 year period.

If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if...

The insured outlived the beneficiary

Who assumes the investment risk with a fixed annuity contract?

The insurer

Which of the following statement about the contest ability of a life insurance policy is true?

The policy can be contested by the insurer only during the first two years of the contract

A life insurance illustration showing future premiums being paid out of non guaranteed values must disclose that....

The policy owner may need to resume premium payments depending on actual results

Life insurance may make an immediate benefit payment before the insured dies in which transaction?

Viatical Settlement

A policy owner can receive an immediate power before the insured dies by using a(n)...

Viatical settlement contract

Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called.....

Viatical settlements

Viatical settlement brokers send packets of information to potential goatees. These information packets normally include existing terms and which of the following?

Viator's medical prognosis

A producer's license CANNOT be revoked without...

a hearing given to the producer

Charging a client less premium than what is stated in their insurance policy is called....

a rebate

All of these are common exclusions to a life insurance policy EXCEPT

accidental that

Holding premium funds for timely submission to the insurer is and example of...

acting in a fiduciary capacity

A renewable term life insurance policy can be renewed...

add a predetermined date or age, regardless of the insured's health

For Pennsylvania Insurance Code violations, the Commissioner may assess a(n)....

administrative penalty

Group dental plans will frequently place a limit on annual benefits in order to minimize...

adverse selection

Group dental plans will frequently place and limit on annual benefits in order to minimize...

adverse selection

The waiver of premium does NOT include which provision?

all future premiums are waived if the insured recovers from the disability

What amount will be paid under a policy where the insured missed stated his/her age?

an amount the premium would have purchased at the correct age

An individual most likely will have an insurable interest in insuring a person's life if...

an economic interest exists for the continuance of the insured's life

If the Insurance Department Determines that the issuance of a temporary producer license serves in the public's best interest, the license may be issued to....

an executor of the deceased producer's estate

All of these are considered a form of advertising EXCEPT

an insurer's A.M. Best rating

Which of these is NOT considered to be a purpose of an annuity?

annuities are intended to create an estate

The deeds and actions of a producer indicate what kind of authority?

apparent

A licensee may only sell, solicit, and negotiate insurance contracts on behalf of the...

appointing insurer

Which of the following nursing home options with BEST suit and individual need some nursing care and supervision but NOT full time care?

assisted living facilities

The commissioner has the right and duty to...

audit ensurer financial reports and conduct market studies

Which of these factors is NOT taken into account when determining an applicants life insurance needs?

automobile

In order to solicit insurance in Pennsylvania, all of the following is required EXCEPT

be at least 21 years of age

Under the consolidated Omnibus budget reconciliation act (COBRA), a terminated employees benefits must...

be the same and the premium cannot exceed 102%.

A disability policy owner is insured and becomes totally disabled. The benefits paid for two years, starting from the date of the injury. What is this time period called?

benefit period

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

certificate of coverage and benefits

Which of the following is NOT and required provision in an accident and health insurance policy?

change of occupation

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called.....

coinsurance

And waiver of premium rider allows an insured to waive premium payments if the insured is...

completely and permanently disabled

Which of the following would be considered an underwriting duty of an agent?

completing all applications and collecting initial premiums

A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called...

conditionally renewable

In order for a contract to be valid, it must...

contain an offer and acceptance

Which disability policy provision would address any concerns of the value of the benefits decreasing overtime?

cost of living benefit

What happens to the coverage under a children's term rider when the child reaches a certain specified age?

coverage is eliminated

The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax

deductible medical expense under this rule? -Long term care insurance premiums

A Medicare Supplement Policy is...

designed to fill in the gap's of part A and part B Medicare.

Matt is applying for life insurance and request a double indemnity rider. A double indemnity benefit will be payable to matts beneficiary if Matt...

dies instantly from a car accident

All of these are standard exclusions found in the life insurance policy EXCEPT

disability

I life insurance policy owner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?

disability income rider

Pharmacy didn't pick up his prescription drugs derived from a list called a(n)...

drug formulary

When soliciting insurance, a producer CANNOT...

emphasize Guaranty Association benefits

The policyholder for a group health benefit plan is considered to be the...

employer

Which of these would limit a companies ability to provide insurance coverage?

exclusion

The taxable portion of each annuity payment is calculated using which method?

exclusion ratio

Under a nonqualified annuity, interest is taxed after the...

exclusion ratio has been calculated

A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT

fare paying passenger

Which of the following constitutes grounds for suspending in Pennsylvania producer's license?

felony conviction

When collecting insurance premiums from a client, a producer MUST...

forward premiums to the insurer on a timely basis

An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of...

fraud

An HMO that involves a partnership of physicians and other providers who practice out of a central facility is called a(n)...

group HMO

Credit accident and health plans are designed to...

help pay off existing loans during periods of disability

Which of the following is NOT included under a health benefit plan?

hospital indemnity plan

Which of these is a method of determining the level of funds required for ongoing support in the event of breadwinners death?

human life value

Sharing 50% of a producer's commission with the insured is an example of.....

illegal inducement

What does the consolidated omnibus budget reconciliation act (COBRA) of 1985 allow an employee to do?

in the event of employment termination, group health insurance can be kept if the employee pays the premiums

Which of the following provisions protects a Pennsylvania policy owner from an innocent mistake made on the application over two years ago?

incontestability provision

A producer who offers 10% of his commission to a potential client as an inducement to purchase an insurance policy is committing the act of...

inducement

Medicare Part A cover...

inpatient hospital stay

Which of the following statements is TRUE about Medicaid?

it is funded by federal, state, and local taxes

What of the following would classify a company's retirement plan from receiving favorable tax treatment?

it is temporary

Without a section 125 plan in place, what would happen to an employees payroll contribution to an HSA?

it would be considered taxable income to the employee

A life insurance policy written on one contract for two people in which it is payable upon the first death is called...

joint

Commissions may only be shared by...

licensed and appointed Producers

Someone needing custodial care at home would require which type of coverage?

long term care

The premium for a modified whole life policy is...

lower than the typical whole life policy during the first few years and then higher than typical for the remainder

Which of the following typically does NOT provide a form of managed care?

major medical indemnity plan

The reinstatement provision in a health insurance policy is...

mandatory

In contrast to a guaranteed renewable policy, a noncancellable policy...

may never raise premiums

Which of these gaps in Medicare coverage is addressed with Medicare supplemental insurance?

medicare in hospital deductible

The suicide clause of a life insurance policy states that if an insured commits suicide within stated period from the policy's inception, The insurer will only be liable for a return of premiums paid...

minus indebtedness and without interest

Over the course of the year, which premium payment mode is most expensive?

monthly

A provision in a whole life policy that allows the policy owner to determine the policy in return for a reduced paid up policy of the same type is called a(n)...

nonforfeiture provision

A producer who sells insurance in Pennsylvania but resides in another state is called a(n)...

nonresident producer

The difference between precertification and concurrent review is that precertification...

occurs before the treatment is provided

Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be...

optionally renewable

What kind of life insurance policy issued by a mutual insurance provides a return of divisible surplus?

participating life insurance policy

In what form do disability income policy is typically pay benefits?

periodic income

Which type of disability would be less than total impairment and equal to permanent impairment?

permanent partial disability

Which of these factors is NOT taken into consideration when determining the cost of a long term care policy?

personal income

During the accumulation., Who can surrender and annuity?

policy owner

A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?

preferred

A rehabilitation benefit is intended to...

prepare the insured to return to employment

Which of the following does Medicare part D cover?

prescription drugs

In most dental plans, a deductible typically is NOT applied to

preventative and diagnostic services

All Health Benefit Plans issued after January1, 2014 must provide...

preventative health services

The health insurance policy will typically cover...

preventative health services

All of the following are functions of an ensuring close EXCEPT

primarily describes the free look period

The fair credit and reporting act's main purpose is to...

protect consumers with guidelines regarding credit reporting and distribution

In order to activate reinstatement lapsed like insurance policy, the insured capital MUST

provide evidence of insurability to the insurer

What is the primary reason for buying an annuity?

provide future economic security

All statements in an insurance application, in the absence of fraud, are considered...

representations

Under the subrogation clause, legal action can be taken by the insurer against the...

responsible third party

Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?

section 1035 exchange

Health insurance involves two perils, accident and ______.

sickness

In a longterm care policy, activities of daily living (ADL's) can be each of the following capital EXCEPT

talking

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?

taxable income

Predeath distributions from a modified endowment contract (MEC) receive different tax treatment then other life insurance policies because...

the MEC tends to be an investment vehicle

A licensee can have his/her license denied or revoked by the commissioner if....

the licensee has committed insurance-related fraud or dishonesty

Insurance represents the process of risk...

transference

When the insurance company consistently fails to provide reasonable exclamation for the denial of a claim, this is called a(n)...

unfair claims settlement

A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called...

universal life

A life insurance policy that is subject to a contract interest rate is referred to as...

universal life

Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the uniform optional provisions covers this situation?

unpaid premium

David submits a $500 claim for medical expenses. There is a past due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. The deduction came as a result of which provision?

unpaid provision

Under a traditional IRA, interest earned his taxed...

upon distribution

Which type of policy combines the flexibility of a universal life policy with investment choices?

variable universal life policy

All of the following writers can increase the death benefit amount EXCEPT

waiver of premium

Pennsylvania law requires that an insurer must notify the commissioner of a producer appointment termination....

within 30 days of termination

A renewable term life insurance policy allows the policy owner the right to renew the policy...

without producing proof of insurability

According to the Affordable Care Act, what is the maximum amount and individual can contribute to a Flexible Savings Account?

$2,500

Ron has a life insurance policy with a face value of $100,000 and the cost of living rider. If the consumer price index has gone up 4%, how much may run increase the value of the policy?

$4000

In Pennsylvania, a Specified disease accident and health plan must provide a minimum benefit in the amount of....

$5,000

A producer that willfully violates any provision of Pennsylvania insurance law may be imposed to a maximum penalty by the commissioner at.....

$5,000 per violation

If an employee contributes 50% toward the disability plan premium provided by employer, what would be considered the taxable income of $1000 monthly disability benefit?

$500

Ken is a producer who has obtained consumer information reports under false pretense is. Under the fair credit reporting act what is the maximum penalty that may be imposed on Ken?

$5000

Every Pennsylvania insurer, upon receiving notification of a claim, must acknowledge receipt of the notice within....

10 days

The free look period provided in a life insurance policy is usually....

10 days

An insurer must furnish to a claimant forms for filing proof of loss within ____ days upon receiving a notice of claim.

15

A Pennsylvania temporary producer license may be issued for a period not to exceed...

180 Days

If a Medicare Supplement policy replaces another that had been in effect for at least 6 months, the replacing policy may impose which of the following time exclusions for preexisting conditions?

0 months

A typical longterm care insurance policy is designed to provide a minimum of __ year(s) of coverage.

1