Iowa Life And Health insurance Exam

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0 (because T is still alive)

A Hospital/Surgical expense policy was purchased for a family of four in March of 2013.The policy was issued $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible . Two additional claims were filed in 2014, each in excess of the deductible as well.What would be the family's out of pocket medical expenses for 2013?

$1,000

Foreign Insurance Company doing business in Iowa

An insurance company that was formed under the laws of another state.

An applicants medical information received from the Medical Information Bureau (MIB) may be furnished to the:

Applicants physician

Resident Producer

Which of these individuals would require continuing education?

Accidental Death and Dismemberment

Which of these is NOT a required group life provision ?

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

Whole Life

When is a Group Health policy required to provide coverage for a newborn child?

at the moment of birth

When does a Probationary Period provision become effective in a health insurance contract?

at the policys inception

Under a Guaranteed Renewable health insurance policy , the insurer

may cancel the policy for nonpayment only

An accident policy will most likely pay a benefit for a(n)

off-the-job accident

Group life insurance policies are generally written as

annually renewable term

An incomplete life insurance application submitted to an insurer will result in which of these actions?

application will be returned to the writing agent

When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

at future dates specified in the contract with no evidence of insurability required

8%

A life policy loan in Iowa cannot charge a fixed rate of interest higher than ?

Which of these statements describe a Modified Endowment Contract (MEC)

Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract.

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

Exclusion

Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies?

Long-Term Care

Which type of plan normally includes hospice benefits?

Managed Care Plans

Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? *Twisting *Intimidation *Misrepresentation *Sliding

Misrepresentation

A policy owner is allowed to pay premiums more than once a year under which provision ?

Mode of Premium provision

Which of these is NOT considered to be a right to a policy owner?

Modify a provision in an insurance contract

According to the Time Payment Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the followng options?

Monthly

K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) _________ life policy.

universal life policy

Submit the claim in any form

what should an insured do if the insurer does not send claims forms within the time period set forth in a health policy's Claims Forms provision

An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses?

$3,000 (responsible for $1,000+20% of remaining bill) = $3,000

Which of these would NOT be an Unfair Claims Practice? *Turning down a claim without providing the basis of denial *Failing to promptly acknowledge pertinent communications concerning claims *Offering payment of approved claims within 30 days after affirming liability *failing to efactuate prompt fair, and equitable settlements of a claim?

*Offering payment of approved claims within 30 days after affirming liability

Which statement does NOT require a producer to provide suitability statement to the annuity company?

*When a producer discussed annuities in genral with a client but no reccomendation is made

an individual life insurance policy issued in Iowa must have a free-look period of at least_____ days? *30 *7 *10 *21

10

After purchasing an individual health insurance contract, policy owners have _____ days from the date of receiving the policy to return it for a full refund for any reason

10 days

A potential client , age 40 would like to purchase Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy . Which of these statements made by the producer would be correct?

20-Pay Life accumulates cash Value faster than straigh life

A potential client age 40 would like to purchase a Whole Life Policy that will accumulate cash value at a faster rate in the early years of the policy. which of these statements made by the producer would be correct?

20-paylife accumulates cash value faster than Straight Life

A producer must notify the Insurance Division within ______ days of a felony conviction

30

Within how many days must a licensee notify the Insurance Division of a Change of Address *20 *10 *30 *31

30

The waiting period for pre-existing conditions on medicare supplement policies is ___ months

6 months

What is the required renewablitiy status of all Medicare supplement policies

Guaranteed Renewable

Before a life insurance policy is issued, which of these components of the contract is required?

A signed application by prospect

Which provision is NOT a requirement in a group life policy?

Accidental

Which of the following statements describes what an Accident and Health policyowner may NOT do?

Adjust the premium payments

According the the affordable care act, a dependents child eligibility status is determined by what

Age

Unfair Discrimination Example

An Insurance company that charges different premiums for insured's in the same risk classification

A domestic insurance company in Iowa must

Be organized under Iowa insurance laws

Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is

Business Overhead Expense

G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is

Business overhead Expense

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

Comercial Insurer

Which of the following consists of an offer, acceptance and consideration

Contract (offer,acceptance,cosideration ar eall elements of a cotract()

A medical care provider which typically delivers health services at its own local medical facility is known as a

Health Maintence Organization (HMO)

What type of life policy has a death benefit that adjust periodically and is written for a specific period of time

Decreasing Term Policy

Noncancellable

Disability Income policy that only the policy owner can terminate and which the rates will NEVER go up is considered to be:

Which of these is NOT a source funding for Social Security benefits ?

Federal government

Under an Individual Health Insurance Policy , The Time Limit of Certain Defenses provision states that nonfraudulent misstatements first become incontestable for two years

From the date the policy was issued

what is considered a valid reason for small businesses to insure the lives of its major shareholders?

Fund buy-sell agreement

In Iowa, Long- Term Care policy must be _______________ renewable

Guaranteed

A 66 year old is covered under a group health plan while employed with a business that has 40 employees . if she injures herself while walking in the park , what coverage would be considered primary?

Her Group Health Plan (if the employer has more than 20 employees, the group health plan generally pays first)

According to the Time Payment of Claims provision, how soon must the insurer pay for a covered medical expense after proof of loss has been submitted ?

Immediately

T sends Proof of Loss Statement to her insurer for a acceptable medical expense claim under her individual health insurance policy.Upon receipt the insurer must pay the benefits : *immediately *within 6. months *at the insurers discretion *withn 3 months

Immediately

Disability Income

In the Event of An illness this policy would reimburse an insured for loss of earnings.

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

During an insurance transaction, who does the producer represent?

Insurer

In a life insurance contract, an insurances company's promise to pay stated benefits is called ?

Insuring clause

Which of these types of coverage is best decribed as a short term medical policy

Interim coverage

Which of these is NOT an element of Life Insurance Premiums?

Mordbity Rate

What type of renewability guarantees premium rates and renewability?

Noncancelable

T is the producer is replacing a clients existing insurance policy with a new one . Prior to policy delivery which form must the client be provided with?

Notice Regarding Replacement

During the course of Medicare Supplement Sale ,T the producer determines there is an existing policy being replaced . which of these actions is T NOT required to perform?

Notify the replaced insurance company

What does Medicare parts A and B cover?

Part A covers hospitalization Part B covers doctors or physician services

Which of the following information is NOT required to be in Whole Life Policy?

Policys Guaranteed Dividend and table

which of the following is NOT a type of agent authority ?

Pricipal (3 types of authority are express, implied, and apparent)

T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision?

Primary Carrier

Which of the following actions by a producer would NOT result in a license suspension or revocation?

Producer representing a foreign insurance company

What must the policyowner provide to the insurer for validation that a loss has occurred?

Proof of Loss

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits?

Residual Benefit Clause

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity?

Residual Disability

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?

Return of Premium Rider

Typically a life insurance death benefit is paid by a lump-sum payment. A(n) __________ option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment.

Settlement

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

Single Premium

Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary?

Split- Dollar plan

An individual income insurance applicant may be required to submit all of the following EXCEPT' *medical history *gross income *occupation *spouses occupation

Spouses occupation

A __________ rider may be used to include coverage for children under their parents life insurance policy

Term rider

The Consideration clause in a life insurance policy indicates that a policy owners consideration consists of a complete application and :

The Initial Premium

A life insurance policy owner may sell their policy to a(n)________ in orderto recieve a percentage of the policy's value

Viatical Settlement Provider

An individual covered under Group Life Policy Insurance policy is consider be a(n)?

certificate holder

A hearing must be held before a producers license can be suspended or revoked .Prior to hearing the Commisoner is required to

give written notice to producer

Under a Basic Medical Expense policy, what does the hospitalization expense portion cover?

hospital room and board

Insuring Clause

identifies which loses resulting from an accident or sickness are insured by the policy.

All of the following statements regarding a Tax Shelterd Annuity (TSA) are true Except:

income derived from TSA is recieved income tax free

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

insureds contingent beneficiary

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the

marital deduction

Deductibles are used in health policies to lower

overuse of medical services

Whole Life Insurance Policy are contractually guaranteed each of the following EXCEPT: *nonforfeiture options *cash value that will ultimately replace death benefit ] *premiums that remain fixed for the life of the policy *partial withdraw features beyond a surrender charge period

partial withdraw features beyond a surrender charge period

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?

payor provision

the __________has the right to change a life insurances policys beneficiary

policyowner

What is the purpose of the Time of Payment of Claims Provison

prevents delayed claim payments made by the insurer

Insuring Clause

the clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called?

What is the underlying concept regarding level premiums?

the early years are charged more then what is needed

Essential Benefits without annual and lifetime limits are required on any health policy purchased

through the Federal Market place (when purchased individually or group )

What is the elimnation period of an individual disbaility policy

time period a disabled person must wait before benefits are paid

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert

to an individual policy upon employment termination

When is the face amount of a Whole Life policy paid?

when the insured dies or at the insured policys maturity date whichever happens first