Life Accidental & Health Exam
Which dividend option will increase the death benefit?
Pad-up additions
When the owner of a participating whole life policy used the dividend to provide more life insurance coverage, which of the following dividend options is being used?
Paid-up additions
Which of the following would be likely to establish SEP?
Small Employers
Which of the following individuals would be a likely candidate to purchase a deferred annuity?
Someone who wants to grow retirement funds tax deferred
The family term rider incorporates
Spouse term and children's term
When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a
Term Rider
Whose responsibility is it to ensure that the application for health insurance is compete and accurate?
The agent's
An insured needs ongoing treatment for diabetic condition. Under PPACA, which of the following is correct?
The condition must be covered under the insured's plan
Which of the following scenarios would require that an insured is provided with a conversion option from group to individual health insurance coverage?
The insured had continuous coverage under the policy
All of the following are true of credit life EXCEPT
The insured names the beneficiary
The policyowner has an option to pledge the life insurance policy as collateral for a bank load. This is called:
A collateral assignment
What is a formulary?
A list of prescription drugs covered by a prescription drug plan
Level 2 Violations of unfair insurance trade practices may result in a monetary penalty of up to
50,000
What fee would a business entity be required to pay in order to obtain an insurance producer's license?
$100
How long is the grace period for an individual life insurance policy?
1 Month
If an insured pays a health insurance premium each month how long would the grace period be under the policy?
10 Days
Of the 16 Credit hours required for continuing education how many hours must be specific to the ethics, state law and producer's duties?
3 Hours
When can an insured initiate legal action against the insurer?
60 days after submitting proof of loss
Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted
What is the maximum age that a disabled insured worker may receive Social Security disability benefits?
65
Which of the following types of care could be provided at a community center?
Adult day care
Which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity?
Accumulation period
Which of the following statements is NOT true regarding health insurance policy provisions?
All additional provisions written by insurers are cataloged by their respective states
All health insurance policies in this state must provide coverage for maternity services. How many hours of inpatient care must be provided to a mother after a vaginal delivery
At least 48 hours
Answers to questions in an insurance application are called representations and, as such, they are
Believed to be true to the best of the applicant's knowledge
The corridor deductible applies between
Basic and major medical coverage
An applicant misstates his age on his application for a health insurance policy. He states that he is 39, but his actual age is 49. When he files a claim, what will most likely happen?
Benefits paid will be those that would have been purchased at the correct age.
Policy delivery refers to the delivery of the
Completed insurance policy to the policyowner
Conrad receives 50,000 from a 100,000 Accidental Death and Dismemberment policy as a result of the loss of his left arm in an accident. Conrad has received the
Capital Amount
In a variable life insurance policy, all of the following assets are held in insurance company's general account EXCEPT
Cash surrender values
In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT
Cash surrender values
Which of the following is NOT normally an excluded cause of disability in an individual disability income policy?
Complications from pregnancy
An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges in initial premium payment?
Conditional Receipt
All variable life insurance policies and any attached rider that are issued in this State must be approved by the
Director of Insurance
Which of the following is NOT a standard exclusion in life insurance policies?
Disability
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
Fixed Amount
Which of the following is a correct statement about annuities?
Fixed annuities do not provide protection against inflation
An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained? The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a Statement of Good Health, relinquishes the policy, and leaves. What did he do wrong?
He left the policy with the insured without collecting the premium
Which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance?
Insurance application
All of the following must sign an application for health insurance EXCPET the
Insurer
When comparing a Joint Life Policy to two individual life policies of the same amount on the same insureds, which condition is true?
Joint Life has a lower premium than the total of the two individual policies
For a contract to be enforceable by law, the purpose of the contract must be
Legal and not against public policy
Following a covered loss, the Time Payment of Claims Provision requires that an insurance company pay disability income benefits no less frequently than
Monthly
Which of the following best describes a presumptive disability?
One that is severe enough that the inured automatically qualifies for full disability benefits
With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?
Only an executive officer of the company
A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend?
Payor benefit
The purpose of the Fair Credit Reporting Act is to
Protect consumers against the circulation of inaccurate or obsolete personal or financial information
What is the purpose of requiring licenses for persons who transact insurance?
Protect the general public
If an applicant's health is poorer than that of an average applicant the policy may be issued
Substandard
If an applicant's health is poorer than that of an average applicant, the policy may be issued
Substandard
All of the following would be classified as "limited insurance coverages" EXCEPT
Supplement Social Security Coverage
All of the following would be classified as "limited insurance coverage" EXCEPT
Supplement Social Security coverage
If basic medical insurance plan's benefits are exhausted what type of plan will then begin covering those losses ?
Supplementary major medical
An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which of the following must be notified of the investigation?
The applicant
An insured decides to surrender his Whole Life insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest. What part of the surrender value would be income taxable?
The difference between the premiums paid and the cash value
What happens to the face amount of a whole life policy if the inured reaches the age of 100?
The face amount is paid to the insured
Life insurance creates an immediate estate. Which of the following best explains this statement?
The face value of the policy is payable to the beneficiary upon the death of the insured
To become the Director of Insurance, who must the individual be appointed by?
The governor with consent of the senate
The elimination period in a disability income policy is better known as
The period of time an insured must wait after the onset of an illness or injury before benefits begin.
Who is the annuity owner?
The person who purchases the annuity
Which of the following are NOT assignability provisions relating to the assignment of ownership by a person under a group policy?
The right to assign additional riders
Which of the following policies can be described as a flexible premium adjustable life policy?
Universal Life
An insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary. Upon his death his beneficiary decides not to receive the death benefit for some time. When she finally receives the death benefit check, it's in the amount of $250,530. Is any portion of the proceeds that the beneficiary receives taxable?
Yes, proceeds in the excess of face amount are taxable as interest
What is the allotted grace period for an insured who pays a $200 premium on a monthly basis?
10 days
In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?
10%
Which of the following statements is INCORRECT concerning Modified Endowment Contracts (MEC's)?
An MEC must always pass the 7-pay test
Which of the following is NOT correct concerning taxation of disability income benefits?
If paid by the individual, the premiums are not tax deductible
All of the following are required provisions in group life insurance policies in this state EXCEPT
Warranties made by the applicants
HMO members pay a small fee when they see their primary care physician. This fee is called a
Copay
Decreasing Term insurance is often used to
Cover a mortgage
Which of the following is NOT true regarding a noncancelable policy?
Insurer can increase the premium above what is stated in the policy if claims experience greater than expected
The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the
Insuring clause.
Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application?
The agent
A man is an attorney when he applies for a health policy. He decides to become a professional bungee jumper. He files a claim. What should happen?
The insurance company will pay the claim according to the benefits available if the correct premium had been paid.
An aleatory contract is based on what kind of exchange?
Unequal exchange of values
Which of the following services will NOT be provided by an HMO?
Unlimited coverage for treatment for drug rehabilitation
Considering the principles of liquidity, how would the policyowner use today's cash values in a life insurance policy?
Use it for emergency expenses
An insured's hospital policy states that it will pay him a flat fee of $75 per day for each day he is hospitalized. The policy pays benefits on what basis?
Indemnity
An insured was diagnosed two years ago with kidney cancer. She was treated with surgeries and chemotherapy, and is now ins remission. She also has a 30-year smoking history. The insured is now healthy enough to work and has just started a full-time job. Which describes the health insurance that she will most likely receive?
She would be covered under her employer's group health insurance plan, without higher premiums
An underwriter is reviewing an applicant with an extensive medical history? Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?
Attending Physician's Statement
Which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse so long as there is cash value?
Automatic Premium Loan Option
Which of the following would NOT trigger the payment of Accelerated Death Benefits?
Being permanently disabled
For a producer to share his commission with another producer, which of the following must be true?
Both producers must be currently licensed for the same line of authority as the transaction
In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health?
By requiring that the insurance be incidental to the group
An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?
Children's term rider
What is the purpose of the Agent's Report in the application process?
To provide additional information about the applicant to the underwriters
An employee has Flexible Spending Account (FSA) with a $ 5,000 annual benefit. This year the employee used $ 3,000. What would be the amount of the benefit available to the employee next year?
$5,000
An insured recently discovered that the interest rate on his policy loan once again increased. Legally speaking, which of the following is the shortest amount of time that could have passed since the change in the insured's interest rate?
3 Months
Missouri law requires that producers notify the Director of any change of address within
30 Days
Proper premium handling is part of the producer's fiduciary responsibility. Within how many days must a producer remit the premiums collected for insurance policies?
30 Days
Y is a 66 year old male who recently bought a life insurance policy with graded death benefits. Since he is over the age of 65, the policy cannot grade the death benefit in excess of 3 years unless the policy provides at least what percent of the face amount as a first-year death benefit?
50 %
Under a group health insurance plan, benefits may be extended to all of the following dependents EXCEPT
A 27-year old married daughter who is attending college and lives with her parents
All of the following are mandatory provisions for group health policies EXCEPT
A provision excluding pre-existing conditions
All variable life insurance policies and any attached rider that are issued in the State must be approved by the
Director of Insurance
The "Stop-Loss" feature on a major medical policy is intended to
Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year.
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
If an insurer transacts insurance without first having received a certificate of Authority, the insurer is guilty of a
Felony
In regards to the group insurance issued in this state, which of the following is true?
If an insured misstated his age on the application, the death benefit will be adjusted according to the correct age
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured.
When an insured reinstated his major medical policy, he was involved in an accident that required hospitalization. When would his accident be covered upon reinstatement of the policy?
Immediately
Which of the following is NOT a required coverage in health insurance policies in Missouri
Mental retardation
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
Misrepresentation
Which of the following best defines the unfair trade practice of rebating?
Offering an inducement of something of value not specified in the policy
In group insurance the primary purpose of the Coordination of Benefits provision is to
Prevent overinsurance
If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?
When the policy is delivered
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home
Which of the following is a provision found in life insurance policies?
Reinstatement
All life and health policies must provide a clear and conspicuous disclaimer regarding the Insurance Guaranty Association on the face page of the policy. This disclaimer must do all of the following EXCEPT
State that the insurer and its agents are protected by the Guaranty Association in case of insolvency
Life Insurance can provide which of the following?
Survivor Protection
Whose responsibility is it to ensure that the application for health insurance is compete and accurate?
The Agent's
A periodic disclosure provision in universal life insurance policies in Missouri requires that policyowners receive a policy status report
At least once a year
What would the insurance company do if an insured under a whole life policy with an accidental death rider intentionally kills himself a couple of months after purchasing the policy?
Deny the death benefit, but refund the premium
A Major Medical Expense policy would exclude coverage for all of the following treatments EXCEPT
Drug addiction
When may HIV- related test results be provided to the MIB?
Only if the individuals are not identified
Insurance contracts are unilateral in nature. What does that mean?
Only one party makes a promise
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
Paid-up additions
Under the mandatory uniform provision "Notice of Claim", written notice must be submitted to the insurer within what time parameters?
Within 20 Days
When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a
Term rider
Policies written on a third-party ownership basis are usually written to cover which of the following?
Policyowner's minor children or business associates
Which of the following would be likely to establish a SEP?
Small employers
What happens to the copy of the application for health insurance once the policy is issued?
It becomes part of the entire contract
Which of the following statements is FALSE regarding the policy limits life insurance?
The amount charged to the debtor may be larger than the initial premiums determined by the insurer
A producer has been found guilty of 5 violations on unfair methods of competition and deceptive practices. What would be the amount of fine the producer will have to pay?
$5,000
According to the metal level classification of health plans, what percentage of health care costs will be covered under a gold plan?
80%
A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?
A percentage of the face amount of the policy
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Decreasing Term
Under which of the following conditions would life insurance proceeds be taxable by the federal government?
If there is a transfer of value
An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change beneficiaries at any time. What type of beneficiary designation does the policy have?
Revocable
When an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illness since the application date. What is the document called?
Statement of Good Health
Once the initial benefit limit in Medicare Part D is reached, how is the beneficiary affected?
The beneficiary is then responsible for a portion of prescription drug costs
Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by the insurer. What is the name of the agreement?
Insuring Clause
Which of the following statements describes one of the reasons individuals purchase life insurance?
It creates an immediate estate
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT
It does not have a guaranteed death benefit
Which of the following statement is TRUE regarding an Agent's Report during the policy application process?
It provides the agent's personal observations concerning the proposed insured
If a life insurance company used HIV testing as part of its underwriting when must an applicant be notified of the procedure?
Prior to performance of the test
Which of the following is NOT required to be included in a life insurance advertisement?
Projected profit sharing
Which of the following statements concerning the Medical Information Bureau is correct?
The Medical Information Bureau assists underwriters in evaluating and classifying risks
A veteran of a foreign war is issued an individual long-term care policy in March. In October, he is admitted to a nursing home for a liver condition first diagnosed 11 years ago. Which of the following is true regarding the veteran's policy coverage?
The care will be covered. The loss occurred after six months of coverage
Your client is sole proprietor and wishes to include his family on a medical expense plan. How much of the cost of the medical expense plan can be deducted (since he is considered self-employed)?
100%
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
An Accidental Death Rider
Which of the following is true regarding coverage for mammography in health insurance policies in this state?
An annual mammogram for women over age 50 must be included
The benefits from a business overhead expense insurance policy
Are limited to covered expenses and are taxable to the business
Which of the following is NOT a typical type of Long-Term-Care coverage?
Child day care
A limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack stroke, or renal failure is known as
Critical illness insurance
When filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available, what could the applicant do to properly correct the mistake?
Cross the incorrect answer out, write the correct one beside it, and initial the answer
An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?
Currently insured
Which of the following meets the insured's personal needs, and is provided by nonmedical personnel?
Custodial care
In policy replacement, the term "conservation effort" means
Discouraging policyholders from dropping existing policies
A Major Medical Expense policy would exclude coverage for all of the following treatments EXCEPT
Drug Addiction
Which of the following CANNOT be included in the universal life policy?
Figures based on nonguarantees
Which of the following is correct statement about annuities?
Fixed annuities do not provide protection against inflation
Which of the following policies must provide coverage for a child immunization from birth to age 5?
Group Health
Which federal act defines rules pertaining to protected health information?
HIPAA
In order for an alumni association to be eligible to purchase group health insurance for its members. all of these statements must be true EXCEPT when the association
Has been active for 5 years minimum
An insured has an individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?
He wont collect anything
All of the following information needs to be included on an application for life insurance EXCPET
Health insurance policies in force
Under the long-term care marketing regulations, which of the following questions would a producer NOT have to ask the applicant in order to determine if the purchase is suitable?
How much are yo able to pay in premiums?
What happens to the copy of the application of health insurance once the policy is issued?
It becomes part of the entire contract
The reduction of premium option uses the dividend to reduce
Next year's premium
Cash Value guarantees in a whole life policy are called
Nonforfeiture values
If an insured is injured while committing an illegal act and his health policy contains the Illegal Occupation provision, what percentage of the claim will be paid?
Nothing
M's life insurance policy prevents his beneficiaries from receiving death benefits should he die while flying his private jet. Where must this be states in the policy?
On the face of the policy
A core Medicare supplement policy (Plan A) will cover all of the following expenses EXCEPT
Part A deductible
An Equity Annuity will grow based upon
Performance of recognized index
All of the following statements about mutual insurance companies are correct EXCPET
Policy dividends issued by the mutual insurance companies are guaranteed and not taxable
Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is
Taxed as ordinary income
If an applicant submits the initial premium with the application, which action constitutes acceptance?
The underwriters approve the application.
What is the purpose of a benefit schedule?
To state what and how much is covered in the plan
What is the purpose of a benefit schedule?
To state what and how much is covered in the plan.
An agency's top variable life insurance producer shows prospects actual product performance results. However, the performance results are several years old. The producer is
Using inaccurate information
Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?
Variable whole life
Because of an injury an insured has been unable to work for 7 months. When his life insurance premium came due he was unable to pay, yet the policy remained in force. This policy includes
Waiver of premium rider
The insurer of credit life policy requires evidence of insurability from the debtor. The debtor becomes obligated to the creditor on March 1st, and the evidence of insurability is provided to the insurer on March 30th. When will the term of insurance begin?
Whenever the insurer finds the evidence of the insurability satisfactory
If an insured is not satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times?
Within 10 days of when the policy was delivered
What does Basic Medical Expense cover?
Nonsurgical services a physician provides
Dividends received on participating life insurance policies policies are
Not taxable because they are on a return of unused premiums
What is the maximum fine for willful violations of the Director's cease and desist order?
100,000
In a noncontributory group policy
100 % of eligible employees must participate
The entire contract includes all of the following EXCEPT
A buyer's guide
If an insured dies, and it is discovered that the injured misstated his/her age or gender, the life insurance company will
Adjust the death benefit to what the premium would have purchased at the actual age or gender.
Which of the following is NOT an indicator of a competent party?
Business Profession
Policy delivery refers to the delivery of the
Completed insurance policy to the policowner
An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?
Conditional Receipt
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will
Continue to increase
An individual has a 200,000 convertible term life insurance policy. If he chooses, he can
Convert to a whole life policy for the same face amount without proof of insurability
Outlines of coverage, delivered upon a Medicare supplement policy application, must include all of the following EXCPET
Copy of the insurability clause
The Uniform Provision Law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called
Entire Contract Provision
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?
Joint and Survivor
What does an annuity protect the annuitant against?
Living longer than expected
An insured was seriously injured in a skiing accident that required him to be hospitalized for 5 weeks. His medical expense policy covered all of the following EXCEPT
Loss of income while hospitalized
An insured purchased a health insurance policy with a renewability clause that states that policy is " Guaranteed Renewable." This means that as long as the required premiums are paid, the policy will continue until the insured
Reaches age 65
An insured purchased a health insurance policy with a renewability clause that states the policy is "Guaranteed Renewable." This means that as long as the required premiums are paid, the policy will continue until the insured
Reaches age 65
Premiums paid by an employer for group health insurance are
Tax deductible to employer
With Adjustable Life, the owner can change all of the following EXCPET
The insured
Which of the following statements is INCORRECT?
The insurer does not have the right to conduct an autopsy
If an insured submits a written proof of loss, what is the maximum amount of time after submittal that the insured has to initiate legal action?
3 Years
A disability income policy has waiting period of 7 days. If the insured is disabled for 15 days, how many days of benefits will the policy pay?
8 Days
The maximum interest rate on life insurance policy loans in this state is
8%
Under individual and group health plans, coverage must be provided to the newborn children of the insured starting
From the moment of birth
The guaranteed purchase option is also referred to as the
Future increase option
Which of the following is NOT true regarding a noncancelable policy?
Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
In making an annuity recommendation to a consumer the producer must have reasonable grounds to believe that the annuity
Is suitable
Which of the following would NOT be considered a limited coverage policy?
Major medical expense insurance
Agents may be found guilty of defamation if they make false statements that are intended to
Maliciously criticize another insurance company
All of the following are excluded from coverage in an individual health insurance policy EXCEPT
Mental Illness
For which of the following reasons could an insurer terminate a long-term care insurance policy?
Nonpayment of premium
Which dividend option will increase the death benefit?
Paid-up additions
Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an
Preferred Provider Plan
The manner and/or frequency that the policyowner pays the policy premium is called
Premium mode
The Director my suspend, revoke, refuse to issue or renew a producer's license if the producer
Previously had his or her license revoked in another state
Which of the following scenarios would require that an insured is provided with a conversion option from group to individual LTC coverage?
The insured had continuous coverage under the policy
All of the following are true of the Survivorship Life policy EXCEPT
The premium is based on the age of each insured
According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?
The primary beneficiary died before the insured
Medicare is a health insurance program for all of the following individuals EXCEPT
Those with low income and low assets
All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT
An association of 35 people
Because of an injury, an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet the policy remained in force. The policy includes
Waiver of premium rider
An insured's cancelable health insurance policy is being cancelled. One day before the policy is scheduled to end, he is involved in a major accident and is hospitalized for a week. Which of the following best describes the coverage that he would have?
Full benefits, as if the policy were still completely in effect
Which of the following is NOT true regarding a grace period provision for group policies?
Grace period allows the applicant to pay the first premium within 30 days
Which of the following is TRUE of level term insurance?
It is temporary protection
S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have?
Simplified Employee Pension (SEP)
Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician?
Skilled care
Which of the following terms relates to disability income insurance?
Residual Benefit
All of the following are advantages of a qualified retirement plan EXCEPT
The income at retirement is tax free
For how many years must producers maintain records for each individual insurance policy?
3 years
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value
What is the purpose of a disability buy-sell agreement?
To allow the business buyout in case of the owner's disability
Which of the following best describes a rebate?
A producer returning part of her commission to her client as an inducement to buy
Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?
Both guarantee that the principle and interest will be fully paid out.
Which of the following losses would likely be covered under Accidental Death rider?
Death caused by a head-on collision
An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy the policy is considered
Delivered
A new insured is looking through her life insurance policy for the description of the policy's graded death benefits. Where would this information be located within the policy?
Face and the back of the policy
A policyholder with a dependent child who needs hospital and medical coverage past a limiting age due to physical or mental handicap must furnish which of the following for continued coverage?
Proof of the incapacity for self-sustaining employment and dependency upon the policyholder for support and maintenance
An insured had a heart attack while jogging, but is expected to return to work in approximately 6 weeks. The insured's Disability Income policy will
Replace a percentage of his lost income
An individual purchases a life insurance policy and lists his parents as beneficiaries. He is able to change beneficiaries at any time. What type of beneficiary designation does the policy have?
Revocable
A whole life policy that will generate immediate cash value is a
Single premium policy
An insured, who is 44 years old, falls while mountain climbing on vacation. He is left paralyzed. After a year, doctors feel he will never recover from his injuries. From which of the following programs will he be able to collect disability income?
Social Security
Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
The are received tax free
What is the cost of coverage based on for group life insurance?
The average age and the ratio of men to women
Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?
The insured's primary beneficiary
Which of the following is true regarding copayment and coinsurance for services provided by a physical therapist under a health benefit plan?
They must be the same as for the services of a primary care physician
What is the purpose o the impairment rider in a health insurance policy?
To exclude coverage for a specific impairment
What is the purpose of the impairment rider in a health insurance policy?
To exclude coverage for a specific impairment
An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?
Level
All life and health policies must provide a clear conspicuous disclaimer regarding the Insurance Guaranty Association on the face page of the policy. This disclaimer must do all of the following EXCEPT
State the insurer and its agents are protected by the Guaranty Association in case of insolvency
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
3 Days
All other factors being equal, which of the following premium modes would result in the lowest overall premium?
Annual
An underwriter is reviewing an applicant with an extensive medial history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?
Attending Physician's Statement
Which of the following is consideration on the part of the insurer?
Paying a claim
Which of the following is NOT mandatory under the Uniform Provisions Law as applied to accident and health policies?
Probationary Period
If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?
Never, the insurer has waived right to those answers by issuing the policy
The Probationary period is
A specified period of time that a person joining a group has to wait before becoming eligible for coverage
Which of the following best defines the Probationary Period in group health policies?
A specified period of time that a person joining a group has to wait before becoming eligible for coverage
The "stop-loss" feature on a major medical policy is intended to
Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year
A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy?
Family
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did I choose?
Fixed amount
An insured has individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments.
He won't collect anything
When an insured reinstated his major medical policy, he was involved in an accident that required hospitalization. When would this accident be covered upon reinstatement of the policy?
Immediately
If a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do?
Inform the insurance company