Insurance Exam 4

The term "chemical dependency" as it relates to health insurance means: A. the abuse of a controlled substance or alcohol ingestion that causes illness B. any chemical use that causes loss of work C. physiological dependence on prescription drugs only D. abuse characterized by a psychological dependency on a controlled substance and or alcohol

D

A long-term care policy must offer a MINIMUM benefit period Of how many months? A. 12 B. 18 C. 24 D. 30

A

All of the following options are examples of nonforfeiture options except A. Renewability B. Extended term insurance C. Cash surrender values D. Reduced paid-up insurance

A

An insurance company has the right to defer payment of a policy loan for a period Not to exceed A. 1 month?? B. 3 months C. 6 months D. 12 months

A

For an ACA-qualified health plan, essential health benefits must be included A. For all policy sold in marketplace B. only in policies sold in the marketplace C. only in major medical plans sold outside of the marketplace D. only in platinum plans sold in the marketplace

A

The commissioner of insurance may issue a temporary agent's license for a maximum of how many days? A. 180 B. 90 C. 60 D. 30

A

A licensee must inform the commissioner of of address: A. within 10 days B. within 30 days C. within 60 days D. Immediately upon moving

B

A newly licensed general lines life, accident, and health insurance agent must complete a MINIMUM of how many hours of containing education with clients A. 10 B. 24? C. 30 D. 36

B

A stock insurance company is owned by its: A. directors B. stockholders C. agents D. insureds

B

For what reason can a health maintenance organization policy be canceled A. Reaching policy limits B. Nonpayment of premium C. Filing too many claims D. the number of participating doctors falls below the specified minimum

B

What type of policy would be MOST suitable for a credit life insurance A. whole life B. Decreasing term C. 10-year term D. universal life

B

When completing an insurance application, a producer should: A. Complete as much of the application as possible before meeting with the applicant to save time B. Request that the applicant review the completed application before signing it C. Avoid asking the applicant questions on the application which may be embarrassing D. Commit information from the application which may cause the application to be rejected by the insurance company

B

Which of the following features of a life policy is used to restrict coverage? A. An endorsement B. An exclusion C. An offer insured rider D. A consideration clause

B

A health plan that pays a physician a monthly payment is: A. APPO B. APOS C. An HMO D. An indemnity

C

Defamation is best described as publishing or circulating which of the following? A. pamphlets criticizing a specific type of insurances B. statements criticizing stock purchases C. Brochures maliciously criticizing the financial condition of an insurance company D. a statement about a competing insurance company's sales brochures

C

Which of the following provisions of an individual accident and health policy allows for nonpayment of premiums in the event of the insured's total disability? A. Grace period B. Elimination period C. Waiver of premium D. Return of premium

C

A creditor who requires a debtor to obtain insurance for a particular company or agent as a condition for ___ A. Coercion B. fraud C. Rebating D. Boycotting??

D

A licensee must maintain records of insurance transactions, other than reinsurance transactions for a minimum of how many years A. one B. two C. three D. five

D

A life insurance illustration is not required to include the: A. name of the insurer B. underwriting or rating classification upon which the illustration is based C. initial death benefit D. company's mortality table

D

If a covered employee in an HMO plan is traveling outside the service area, the HMO must pay claims if there is an emergency A. as if the employee where in the same service area B. If approved by the employer C. on a 60/40 basis D. by allowing the employee to participate in an available PPO

D

What information does not need to be included on a notice of replacement? A. List of policies to be replaced B. name of insurer C. name of insured D. name of beneficiary

D

Health coverage for newborn infants who have congenital abnormalities must begin at which of the following times A. at birth B. a maximum of 10 days after birth C. a maximum of 15 days after birth D. A maximum of 30 days after birth

A

If a consumer lives in one state and works in another, in which marketplace are they eligible to purchase an A. The state where the consumer resides B. The state where the consumer is employed C. Any marketplace in the county D. In either marketplace where they work or live.

A

In a life insurance contract, the consideration given by the applicant in exchange for the promises of the insurance company consists of the insured's statement in the application and which of the following items? A. A written promise to pay all premiums when due B. Payment of the initial premium C. A medical examination reports D. Permission for the company to check the insured's credit

A

Under a group life insured policy, an insured can legally assign the incidence of ownership in the policy to: A. Any beneficiary B. the insured's spouse only C. the insured's children only D. the executor of the insured's estate only

A

Which of the following provisions can be an insured use to put a policy in force that has lapsed as a result of nonpayment of premium? A. Reinstatement B. Legal actions C. Grace period D. Time limit on certain defenses

A

Which of the following provisions could double the face amount of insurance if an insured's death is covered as the result of an unintended and unforeseen event? A. Accidental death dismemberment (AD&D) provision B. Payor provision C. Joint and survivorship clause D. Consideration clause

A

Which of the following statements is an insurance agent permitted to tell a client during a sales presentation A. Insurance companies and policies differ in their features B. the government guarantees claim payments C. The federal government endorses an insurance company D. Coverage is always provided by the Texas Life and Health Guaranty Association

A

L has a $100,000 life insurance policy with a $10,000 loan outstanding. If L dies prior to paying back the loan, what benefit (repeat) A. $100,000 B. $90,000 C. $50,000 D. $0

B

The applicant's signature is required on a life insurance application for which of the following reasons? A. To guarantee that the statements on the application are true B. To represent that the statements on the application are true to the best of the applicant's knowledge C. To represent that the statements on the application are warranties D. To authorize the producer to add information to the application

B

The commissioner of insurance may suspend, revoke, or refuse to renew the license of an agent who: A. is convicted of any misdemeanor B. is found guilty of misrepresentation or fraud in obtaining the license C. files for bankruptcy D. fails to write any business for six consecutive months

B

When an accident and sickness policy require payment of additional premium to provide coverage for newborn, how many days after the birth is the first payment due A. 31 B. 30?? C. 14 D. 10

B

A characteristic not found in a group disability income policy is A. Cost of living adjustment B. Benefit based on an employee's income C. Medical underwriting D. Elimination period

C

An agent MUST give a prospective insured an outline of coverage when taking an application for a: A. whole life policy B. variable annuity C. Medicare supplement policy D. term life policy

C

If at the time of insurance debt, the insurance company discovers that the insured's age was misstated on the application ___ A. deny the claim for policy proceeds on the basis of fraud B. collect the correct premiums and pay the claim C. Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age D. pay the policy proceeds less a penalty not to exceed 12% of those proceeds

C

On May 14, a prospect completes an application for insurance. The producer collects the initial premium and issues a conditional receipt. The insurance company determines that the prospect is insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on June 1 the effective date of coverage is A. May 14 B. May 24 C. May 26 D. June 1

C

Which of the following actions by an insurance company is considered an unfair claim statement policy A. Requiring the insured to submit a proof of loss statement before paying a claim B. requiring the insured to submit a proof of loss statement before paying a claim C. requesting a third-party arbitrator to resolve a disagreement with a claimant D. denying an insured's claim without indication the basis of denial under the policy

C

Which of the following practices by an insurance company is considered to be unfair discrimination? A. offering similar benefits to persons in different risk classes B. offering rating policies to persons in high-risk occupations C. charging variable rates for persons in the same risk class D. Changing the same rate for persons in different risk classes

C

Which of the following sections of an insurance contract limits coverage? A. Waiver of premium B. Conditions C. Exclusion D. Declaration

C

Which of the following statements is not correct about the commissioner of insurance? A. The commissioner must be elected in a general election. B. the commissioner may be a former employee of the Texas department of insurance C. the commissioner is authorized to conduct the activities of the Texas department of insurance D. the commissioner must serve as chief executive and administrative officer of the Texas department of insurance

C

The purpose of Texas life and health insurance guarantee association is to: Protect the benefits of policy owners and beneficiaries against the A. provide for the sharing of financial information between companies B. guarantee the availability of coverage for uninsurable people C. guarantee premium payments for insolvent policy owners D. protect the benefits of policy owners and beneficiaries against the solvency of insurance company

D

Which of the following conditions must be met for a corporation to be granted an agency's license A. at least one officer of the company must have an individual agent's license for the same line of authority as the agency B. Each employee of the corporation must have an individual agents license for the same line of authority as the agency C. the company must be incorporated in a minimum of two states D. the company must obtain a surety bond of at least $150,000???

D

Which of the following statements is correct about an individual disability income policy? A. Its benefits are taxable B. It is considered to be a reimbursement policy C. It often contains an elimination period D. It has a six-month incontestable clause

D