Insurance

With Optionally Renewable Health policies, the insurer may

"review the policy annually and determine whether or not to renew it"

Under an individual life insurance policy, an insured may assign a MAXIMUM of what percentage of policy ownership?

100%

A Long-Term Care policy must offer a MINIMUM benefit period of how many months?

12

A whole policy that will accummulate cash value faster when older

20-pay life accumlate faster than striaght life

A newly licensed General Lines agent must complete a MINIMUM of how many hours of continuing education within 24 months after initial license?

24

What percentage of continuing education instruction MUST be completed in the classroom or classroom equivalent?

50%

Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.

6 months

Commissioner of Insurance

A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the Commissioner of Insurance.

Return of Premium Life Insurance Policy is ?

A Whole life ins. with death benefit rider of increasing term ins. equal to an amount of premiums paid.

A "reimbursement policy" pays what amount of covered Long-Term Care expenses?

Actual covered expenses up to the daily maximum

insurer dates the policy

An insurance company can usually contest the information contained in an accident and health application for two years from the date the insurance company dates the policy.

policy holder, policy owner, and insured are what? A. alike B. the same C. different

B. The same

Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures?

Commercial insurer

A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the

Commissioner of Insurance

martial status

Does not play a role in the underwriting of a life insurance policy

Free-look period

During this time period, you have the option of canceling your policy without penalty within a set time period. Depending on the insurance company and the state you reside in, the free look period can be 10-days or even longer.

When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the

Entire Contract provision"

What is not needed in Guaranteed Insurabilitiy Option rider?

Evidence of Insurability when option is excersized

An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons?

Failure to pay for coverage

What acts like a HRA?

HSA

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?

Life income

What type of renewability guarantees premium rates and renewability?

Noncancellable

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy?

Premiums are waived after the insured has been totally disabled for a specified time period"

Automatic Premium

Prevents unintentional lapse due to failure of payment

What Nonforfeiture Option continue a build-up of cash value

Reduced Paid-Up

What is the underlyinh concept regrauding level premiums?

The early years are charged more than what is needed

T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take?

The insurer will rescind the policy, deny the claim, and recover all payments made

A term life insurance policy matures when...

Upon the insured's death during the term of policy

Subrogation

What is reimbursement of benifits for treatment of benificiary's injuries caused by a third party?

Interim coverage

What type of coverage is best described as a short term medical policy?

A life insured policy that provides a policy owner with cash value along with level face amount is called

Whole life

Covers you untill you die

Whole life policy

yes

Will you recive dividends in a participating life policy if one is disabled?

The Commissioner of Insurance has the power and duty to take all of the following actions EXCEPT

activate insurance companies' financial reserves

An agent may legally share commissions only with

another agent who is licensed in the same line of insurance

All are types of managed care plans, except: a. POSs b. Indemnity Plans c. PPOs d. HMOs

b. Indemnity Plans HMOs, PPOs, and POSs are all types of managed care plans (i.e. those in which an organization contracts with providers in advance to control costs). A true indemnity plan is in no way, managed care.

A Health Reimbursement Arrangement MUST be established...

by the employer

Under Texas insurance law, the term "transacting business" includes

collecting premiums

Health Saving Account (HSA)

contributions to HSA by individuals are tax deductible and contributions by an employer are not included in the individual's taxable income Your employer can also put money in the HSA for you

when policy owner exchanges a term policy WITHOUT providing proof of good health

conversion pervision

Binding recipt

coverage granted untill applicant is denided

what mortgage is best protected by what kind of whole life policy

decreasing term

chracterized by benifit amounts that decrease gradually overterm of protection and have level premiums

decreasing term rider

Medicare Part A and Part B do NOT pay for

dental work

Variable ins.

don't guarantee cash value. premiums are fixed. part of premium is placed in seperate account and invested in stock, bond, and cash market fund

fixed level premium

element of a varible life policy

What must an employee sign durring the open enrollment period?

enrollement card

if some one dies, then they'll let them continue the normal life and finally give them a final payment at the end

family mantience policy

An organization that solicits insurance only among its members is known as a

fraternal benefit society

major medical policies

include a deductible, and counsurance

An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the

insurer dates the policy

Insuring agreement/clause

insuring companies promise to pay death benifits

helps protect an insured from an unpaid mortgage balance upon premature death

joint life

All of the following are limited benefit plans EXCEPT cancer policies life insurance policies dental policies critical illness policies

life insurance policies

limited pay life

limited to a specific number of years

accelerated death benefit provisions in a life insurance policy are known as what?

living benefit

fixed then increases, then constant while the death benefit remains the same

modified whole life policy

Health Maintenance Organization

offers prepaid health care services, finance health care services for their subscribers on a prepayment basis , and deliver the health services as well

Noncancellable

policies provides guaranteed renewability and premium rates.

who benifits in IOLI when the insured dies?

policy owner

What is a Variable Universal Life policy?

policy owner controls where the investment will go and selects the amount of the premium paayments

Consideration clause

policy'sowner promise to make payments

Automatic Premium Loan

prevents unintentional lapse of policy due to nonpayment.

Suicide Clause

protect insurance companies against people using suiside for fast death benifits (must accur with in first two years for company to not pay the benifit)

endowment

regardless of the time of death wether it be 20, or 10 years, when dead the beneficiary will receive 20,000 called the death policy

Insuring Agreement

states a specific sum of money with be paid to a designated person upon an insured's death.

Entire Contract provision

states that the application and policy contain all provisions and constitute the entire contract.

Which of the following services are NOT covered under a hospitalization expense policy? daily room and board surgeon's fees intensive care miscellaneous expenses

surgeon's fees

adujustable life insurancec combines what two into a single plan>

term and permenant

greats amount of coverage, limited period of time

term life

universial life

term policy with cash value. flexible premiums and adjustable death benefit. allows the owner to determine the amount and frequency of premium

A life insurance product that covers children under their parent policy

term raider

conditional reciept

the applicant is covered as of the day of application providing that the insurance company approves

20-year endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

the full 20,00

how do typical varible life policies grow?

through mutual funds stocks and bonds

Benefits for drug and alcohol treatment under a group health policy must include all of the following services EXCEPT

transportation to and from an outpatient facility

offers investment in products such as money-market funds, long term bonds and equities?

variable

offers insures untill you die or untill 100 builds

whole life