Learning Exam

Dental Expense policies generally have a deductible that would apply to all of the following EXCEPT

Preventive care

Methods used to pay the death benefits to a beneficiary upon the insured's death are called

Settlement options

Events in which a person has both the chance of winning or losing are classified as

Speculative risk

Insurance producers must ensure that contracts they recommend are in the best interest of the insured. This is called

Suitability

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?

30

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death?

A minor son of the insured

HIPPA applies to groups of?

2 or more

Once a mail-order solicitation has been filed, how long may it be used?

2 years

Once a viatical settlement contract has been completed, how long does the viatical settlement provider have to notify the insurance company that the life policy has been viaticated?

20

All of the following are Nonforfeiture options EXCEPT

Interest only

All of the following are correct about the required provisions of a health insurance policy EXCEPT

A reinstated policy provides immediate coverage for a illness

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim

Which of the following is a policy that pays for the treatment of a specific condition named in the policy up to a specified maximum amount?

Dread disease policy

An individual buys a flexible premium deferred life annuity with 20 year period certain. What would his beneficiary receive if he died 5 years after beginning the annuity phase?

Payment for 25 years

Which of the following is INCORRECT regarding a $100,000 20-year level term policy?

At the end of 20 years, the policy's cash value will equal $100,000

An individual is insured under his employer's group Disability Income policy. The insured suffered an accident while on vacation that left him unable to work for 4 months. If the disability income policy pays the benefit, which of the following could be true?

Benefits that are attributable to employer contributions are fully taxable to the employee as income

The act of voluntarily giving up insurance by the insured is called

Cancellation

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Condition

An applicant for an individual policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

Consideration clause

Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to change premium amounts?

Continuation provision

The gatekeeper of an HMO helps

Control specialist costs

What characteristic makes whole life permanent protection?

Coverage until death or age 100

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer

All of the following violations may result in an agent's imprisonment EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

Have attained fully insured status

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

#Which of the following does a producer NOT have the authority to do?

Issue policies

Which of the following best describes a bail-out provision?

It allows the owner to surrender the annuity without a charge

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

Jumping juvenile policy

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

LTC policies are marketed effectively to prospective insureds

The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called

Life income with period certain

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay Life

Which of the following is considered a presumptive disability under a disability income policy?

Loss of two limbs

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

What is the major difference between a stock company and a mutual company?

Ownership

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduced death benefit

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if he would have issued the policy

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person

In a fixed annuity, which of the following is true regarding the guaranteed interest rate on he investment?

The annuitant will receive the higher of either the guaranteed minimum rate or current rate

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

The individual insured

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employer but are taxable upon distribution

Which of the following is true regarding Medicare supplement policies?

They must be guaranteed renewable