insurance exam

long term care policies MUST cover

Alzheimer disease

Int terms of social security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse many receive retirement benefits

Blackout period

A producer who fails to segregate premium monies from his own personal funds is guilty of

Commingling

A health insurance plan that covers all accidents and sicknesses that are not specifically excluded from the policy is referred to as a

Comprehensive plan

A universal life insurance policy 2 type interest rate

Guaranteed and Current

Who has the ability to request the change of a life policy beneficiary?

Insured

a long term insurance shopper guide must be provided in the format developed by which of the following

NAIC

Which of the following must be present in all medicare supplement plans?

Plan A

When an insured under a life insurance died, the designated beneficiary received the face amount of the policy as well as refund of all of the premiums paid, Which rider is attached to the policy?

Return of premium

which of the following is Not a feature of a guaranteed renewable provision?

The insurer can increase the policy premium on an individual basis

which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds death

a minor son of the insured

under which of the following circumstances would an insurer pay accelerated benefits?

an insured is diagnosed with cancer and needs help paying for her medical treatment

a business entity acting as an insurance producer is required to do all of the following EXCEPT

be a public-ally owned company

representations are written or oral statement made by the applicant that are

considered true to the best of the applicants knowledge

which of the following statements regarding HIV testing for life insurance purposes is NOT true

insurers are barred from requesting HIV testing

all of the following actions by a person could be described as risk avoidance EXCEPT

investing in the stock market

state law specifically prohibits using illegal inducements in the marking of insurance, all of the following would be considered illegal inducements EXCEPT

inviting prospective clients to the grand opening of the company new office

which of the following best describes taxation during the accumulation period of an annuity

taxes are deferred

which of the following when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount to temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members

term rider

which of the following would qualify as a competent party in an insurance contract?

the applicant has a prior felony convivtion

in group life insurance policy the employer may select all of the following EXCEPT

the beneficiary

in Alabama, domestic insurance companies may be examined by the commissioner or by an examiner designated by

the commissioner

a group of 15 skydivers met at a seminar and began talking about life insurance during a break. because it was expensive to get individual life insurance, they decided to band togeather to form a small group so that they could qualify for group life insurance. after they applied for group life insurance they were rejected. why?

the purpose of the group was to purchase life insurance

under an extended term non forfeiture option, the policy cash value is converted to

the same face amount as in the whole life policy

an insured has chosen joint and 2/3 survivor as the settlement option. what does this mean to the beneficiaries?

the surviving beneficiary will continue receiving 22/3 of the benefit paid when both beneficiaries were alive

which is generally true regarding insureds who have been classified as preferred risks

their premiums are lower

all of the following are characteristics of a group life insurance plan EXCEPT

there is a requirement to prove insurability on the part of the participants.

what kind of policy allows withdrawals or partial surrenders

universal life

which of the following is NOT a factor in determining qualifications for Social Security disability benefits

workers occupation

in order to collect social security disability, the claimant must be able to demonstrate that the disability will last at least

12 months

benefit periods for individual short-term disability policies will usually continue from

6 months to 2 years

According to the entire contract provision, a policy must contain

A copy of the original application for insurance

Which of the following statements about the reinstatement provision is true?

It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated

what insurance concept is associated with the names weiss and fitch

guides describing company financial integrity

if an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

it is only taxable if the cash value exceeds the amount paid for premiums

which of the following is INCORRECT concerning medicaid?

it is solely a federally administered program

variable whole life insurance is based on what type of premium

level fixed

your client wants both protection and savings from insurance and is willing to pay premiums until retirement at age 65, what would be the right policy for this client?

limited pay whole life

all of the following are considered to be basic benefits of an HMO plan EXCEPT

prescription drugs

which rule would apply if an agent knows an applicant is going yo cash in an old policy and use the funds to purchase new insurance

replacement rule

all of the following are beneficiary designations EXCEPT

specified

when the insurer stipulates the time period for payment of claims, how soon must the insurer pay a death benefit claim after receiving the proof of death

2 months

every small employer carrier must actively offer to small employers at least how many health benefit plans

2 plans

what is the waiting period on a waiver of premium rider in life insurance policies?

6 months

according to the PPACA rules, what percentage of health care costs will be covered under a bronze plan

60%

under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of a loss

Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount

level term insurance provides a level death benefit and a level premium during the policy term. if the policy renews at the end of a specified period of time, the policy premium will be

adjusted to the insureds age at the time or renewal

the policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as

the policy contains sufficient cash value to cover the cost of insurance

all of the following are true about variable products EXPECT

the premiums are invested in the insurer's general account

An HSA holder who is 65 years old decides to use the money in the account for nonhealth expense. which of the following is true

there will be tax

which of the following statement regarding conditional receipt is is true?

they are temporary insuring agreements

an insurance company wants to obtain the insurance history of an applicant. which source releases coded information to insurers regarding information included on previous insurance applications?

medical information bureau

to sign up for a medicare prescription drug plan, individuals must first be enrolled in

medicare Part A

which of the following is NOT true regarding minors purchasing insurance policies in this state?

minors at the age of 14 are allowed to buy their own policies

what was created to keep telemarketers from calling consumers who do not wish contacted

national do not call registry

attempting to determine how much insurance an individual would require based upon their financial objectives is known as

needs approach

which of the following insurers are owned by stockholders who have usual rights of ownership, including the right of voting?

stock

which of the following describes the tax advantage of a qualified retirement plan

the earnings in the plan accumulate tax deferred

what federal legislation provided incentives to health care provider by giving grants for them to solicit subscribers, loan guarantees to cover initial deficits and through the Act, force employers with more than 25 employees to offer the health care provider as an alternative to their regular health plan

the health maintenance act of 1973

in a group policy, who is issued a certificate of insurance?

the individual insured

when Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss, however, her agent did not notify the insurance company until 60 days after the loss. which of the following statement correctly explains how this claim would be handled?

the insurer is considered to be notified since the notification to agent equals notification to the insurer

an insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. what organization can help the insurer accomplish this

the medical information bureau

if the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?

adjust the benefit in accordance with the increases risk

when an insured purchases her disability income policy, she misstated her age to the agent. she told the agent she was 30 years old, when in fact she was 37. if the policy contains the optionsal misstatement of age provision

amounts payable under the policy will reflect the insured correct age

a universal life insurance policy is best described as a/an

annually renewable term policy with a cash value account

an insured receives an annual life insurance dividend check. what term best describes this arrangement?

cash option

which of the following scenarios will incur a 10% tax penalty on distributions

distributions are made on a policy before age 59 1/2

when the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

equal to the original policy for as long as the cash values will purchase.

the authority granted to an agent through the agents contract is referred to as

express authority

which nonforfeiture option has the highest amount of insurance protection?

extended term

what option allows the insured to periodically increase benefit levels without providing evidence of insurability

guarantee of insurability

at the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. this rider is called?

guaranteed insurability

the type of term insurance that provides increasing death benefits the insured ages is called

increasing term

what would be an advantage to naming a contingent beneficiary in a life insurance policy?

it determines who receives policy benefits if the primary beneficiary is deceased

in which of the following situation is it legal to limit coverage based on marital status

it is never legal to limit coverage based on martial status

which of the following applies to the 10-day free look privilege?

it permits the insured to return the policy for a full refund of premiums paid

a married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured

joint life policy

all of the following are true regarding the guaranteed insurability rider EXCEPY

this rider is available to all insureds with no additional premium

what is the purpose of life insurance solicitation regulations?

to help consumers compare life insurance products in regard to their relative cost

which of the following is NOT the purpose of HIPAA

to provide immediate coverage to new employees who had been previously covered for 18 months

when an individual purchases insurance, what risk management tecnique is he or she practicing?

transfer

which of the following life insurance policies would be considered interest sensitive

universal life

an insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. the insured knows that his financial state will worsen even more with the upcoming medical expenses. what option could the insured utilize?

viatical settlement

what is a penalty tax for non qualified distributions from a health saving account

20%

following an injury, a policyowner covered under medicare parts A & B was treated by her physician on an outpatient basis. how much of her doctors bill will she be required to pay out of pocket

20% of covered charges about the deductible

The relation of earnings to insurance provision allows the insurance company to limit the insured benefits to his/her average income over the last

24 months

a 35 year old spouse of the insured collects early distributions from her husband retirement plan as a result of a divorce settlement. what penalties, if any,will she have to pay

no penalties

during replacement of life insurance a replacing insurer must do which of the following

obtain a list of all life insurance policies that will be replaced

an insured has a continuous premium whole life policy. she would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. what dividend option could she use?

paid-up option

a participating insurance policy may do which of the following?

pay dividends to the policyowner

when a whole life policy lapses or is surrendered prior to maturity, the cash value can used to

purchase a single premium policy for a reduced face amount

should an authorized insurance company have their certificate of authority suspended, during the period of the suspension, the insurer must do all of the following EXCEPT

reapply for the certificate of authority

during which income period does the surviving spouses working income ceases and the social security begin?

retirement

justyne a widow is retiring from her job and will soon receive social security benefits which income period is justyne about to enter?

retirement period

blue cross and blue shield organizations are

service organizations

an employee has a group life insurance through her employer. after 5 years she decides to leave the company and work independently. how can she obtain an individual policy?

she can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan

if a firm has 30 employees that were actively engaged in business 75% of working days during the preceding calendar quarter, what is its classification

small employer

the clause that protects the proceeds of life insurance policy from creditors after the death of the insured is known as the

spendthrift clause