License Review

Shortly after a replacement transaction on a a Medicare supplement policy, the insurer decides to cancel the policy; but is unaware whether the free look provision applies. Where could the insured find this information

Notice Regarding Replacement

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

Which of the following statement aboiut group life is correct

The cost of voverage is based on the ratio of men and women in the group

What is the first penalty for the first violation of the PA insurance fraud prevention act?

$5,000

What is the shortest possible elimination period for group short-term disability benefits provided by an employer

0 Days

To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?

10 Days

Which of the following must the patient pay under Medicare Part B?

20% of covered charges above the deductible (As established by Medicare, the patient must pay 20% of covered charges above the deductible.)

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 Days (Investigative consumer reports cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested.)

Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?

30 Months

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 Days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Insurers must keep a record of all financial files for at least how long?

5 years

The minimum number of credits required for partially insured state for SS disability benefits =?

6 Credits (PARTIAL)

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

Under the affordable care act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event?

60 Days

What statement is INCORRECT in regards to licensees.

A licensee is barred from charging a fee in addition to a commission to a person for sale, solicitation or negotiation of an insurance contract for commercial business.

What is the best way to evaluate a persons medical history?

An Attending Physicians Statement (APS)

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

Annually Renewable Term policy with a cash value account (Universal has 2 components- An insurance component and a cash account)

Under a Key Person disability income policy, premium payments

Are made by the business and are NOT tax-deductible

Employer contributions made to a qualified plan

Are subject to vesting requirements

When may the department examine records that insurers are required to keep?

At any time

How long must a company maintain a complete file of all advertisements used>

At least 4 years

When must an insurance company present an outline of Coverage to an applicant for a Medicare supplement policy?

At the time of the application

All of the following requirements of eligibility for Social Security disability income benefits EXCEPT

Being age 65

A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called?

Blanket Policy

A man is still employed at age 65 and is now eligible for Medicare. He wants to know what health insurance coverage he is eligible to receive. Which of the following options are available to him?

Both group health and Medicare

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, what is this called?

Class designation

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of

Coercion

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

Coercion

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration (The binding force in any contract)

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

If an insurer changes a form that it uses to transact insurance, it must do what?

File the form with NAIC for approval

An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?

Full Benefits

What required provision protects against unintentional policy lapse?

Grace Period

The death benefit under the Universal Life Option B

Gradually increase each year by the amount that the cash value increases

If someone wins the lottery and plans to receive a check every month for the next 25 years. What type of annuity product are they most likely to use to provide these benefits?

Immediate annuity

Which of the following is TRUE regarding the annuity period

It may last for the lifetime of the annuitant

What describes the effect the Accelerated Benefit provision would have on he benefits paid to the beneficiary?

It will decease the benefits paid to the beneficiary

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Joint Life

The insuring clause of a disability policy usually states all of the following EXCEP

The method of premium payment

Which of the following will vary the length of the grace period in health insurance policies?

The mode of the premium payment (The grace period is 7 days on a policy with a weekly premium mode; 10 days if a monthly premium mode; 31 days on other premium modes.)

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

Which of the following statements regarding conditional receipts is true?

They are temporary insuring agreements

Which of the following is TRUE for both equity indexed annuities and fixed annuities

They have a guaranteed minimum interest rate

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract (May not be altered by an agent and must clearly state that it is NOT part of the contract)

What is the purpose of a disclosure statement in life insurance policies

To explain features and benefits of a propose policy to the consumer

What is the main purpose of retained asset account?

To serve as temporary storage of funds for the beneficiary

Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is?

Within 45 days

An insured severely burns her hand, but is not classified as disabled. Which of the following types of coverage would cover at least a portion of the insured's medical expenses?

medical reimbursement benefit

When someone is covered by 2 insurance policies with duplicate benefits

Overinsurance

A producer or broker who makes oral or written statements intended to injure another producer or insurer is guilty of?

Defamation

Which of the following authorities monitors the financial strength of insurers

Department of Insurance

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day

Elimination Period (The time immediately following the start of a disability when benefits are not payable)

How often must the Commissioner examine rating organizations

Every 5 Years

Which of the following statements is true regarding LTC insurance?

Every policy must offer nonforfeiture benefits to the applicant

Which of the following statements is NOT true concerning Medicaid

It consists of 3 parts: Part A- Hospitalization, Part B- Doctors Services, Part-C Disability income (It consists of 4 parts)

The primary eligibility requirement for Medicaid benefits is based upon

Needs

If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?

Nothing

Insurance producers that do not have company appointments are considered a/an

Representative of the consumer

Which of the following is NOT true regarding a Variable Universal Life policy

The death benefit is fixed (It is adjustable and the cash value is not guaranteed)

In which of the following cases would an "any occupation" disability income policy pay the benefits?

The insured is unable to perform any jobs in the field related to the insured's education and experience.

All of the following statements are TRUE regaring the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy

What policy allows withdrawals or partial surrenders?

Universal Life

How long will the beneficiary receive payments under the single life settlement option

Until the beneficiary's death

The abiliity to rely on statements made in the contract and the trust that the insurer will pay their premiums, this demonstrates?

Utmost good faith

In forming an insurance contract, when does acceptance usually occur?

When an insurer receives an application

Which of the following authorities are agents held to

Express and Implied

Which of the following health care plans would most likely provide the insured with comprehensive health care benefits

Health Maintance Organization plan (HMOs provide a package of comprehensive health care services that include routine physicals, immunizations, well baby care, family planning, etc., as well as the treatment of sickness and injury.)

Which of the following factors about the insured determines the amount of disability benefit that the insured will receive

Income

Issue age policy premiums increase in response to which of the following factors?

Increase benefits

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

When compared with the administrative cost found in individual coverage, the per capita administrative cost in group health insurance is

Lower

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?

Mental level classification

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

Benefits received from a Disability Income Benefit in a life insurance policy?

Monthly premium waiver and monthly income

Under a straight lfe annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive?

Nothing, the payments will cease

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

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

What is NOT true about a joint and survivor annuity benefit option?

Payments stop after the first death among the annuitants

A Medicare SELECT policy does all of the following EXCEPT

Prohibit payment for regularly cover services if provided by non-network providers

An insured committed suicide one year after their life insurance policy was issues. The insurer will do what?

Refund the premium paid

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Respond to the consumers complaint

Which of the following components of dental insurance does NOT require the payment of a deductible

Routine and preventative maintenance

All of the following are considered unfair trade practices in business of insurance EXCEPT

Sharing Commissions

What determines the length of time the benefits will be received under the Fixed-Amount settlement option

Size of each installment

All the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in setting the claims

The president of a company is starting an annuity and decides that his corporation will be the annuitant, What is wrong with this?

The annuitants must be a natural person

Which of the following is NOT the consideration in a policy

The application given to a prospective insured

Who is responsible for paying producer appointment fees

The appointing insurer

If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?

The change must be reported to the Commissioner

How are eligibility of group health insurance plans determined?

The conditions of employment

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

Cash option

All of the following actions can be described as twisting EXCEPT

Explaining to the client the advantages of permanent insurance over term insurance and suggesting to change policies

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

Purchase a single premium policy for a reduced face amount

Another name for a substandard risk classification is

Rated (Substandard risk classification is also referred to as "rated" since these policies could be issued with the premium rated-up, resulting in a higher premium.)

According to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means

The consumer directs the licensee not to disclose the consumers nonpublic personal financial information to a third party

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customers associates, friends, and neighbors provide the data's report