Life & Health
Annually Renewable Term policy with a cash value account
A Universale Life insurance policy is best described as a/an
Estoppel
ABC insurance company receives an incomplete application and issues the policy anyway. Six months later ABC realizes the missing information. What term is used that prevents ABC from forcing the policy owner to answer further questions?
Premiums are determined by the age, sex and occupation of each individual certificate holder
All of the following are characteristics of group life insurance EXCEPT
Beneficiary's consent
An insurance contract must contain all of the following to be considered legally binding EXCEPT
Employee benefits are tax deductible the year in which they were received
Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?
Not tax deductible
Premium payments for personally-owner disability income policies are
Hospital, Surgical, Medical
What are the three basic coverages for medical expense insurance?
Defamation
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Premiums are tax deductible and benefits are not taxed
Which of the following is correct regarding the taxation of group medical expense premiums and benefits?
75%
Which of the following is the required amount of participants in a contributory group plan?
Coercion
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 a life insurance policy from the bank in the amount of the loan. This is an example of
A producer's retirement
A temporary license may be obtained for all the following situations EXCEPT
Always representing the insured
An agent is acting ethically in all of the following situations EXCEPT
Permanent
An applicant wants to buy a policy that has a cash value element. What type should she buy?
Conditional
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
Lloyd's association
An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a
Donut Hole
An insured has Medicare Part D coverage. He has reached his initial benefit limit and must now pay 50% of his prescription drug costs. What is the term for this gap in coverage?
Pay a lower renewal premium by proving insurability
An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to rent the policy and
The insured was in compliance with the policy requirements regarding claims
An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?
Attending Physician Statement
An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require?
Increases annuity
Annually renewable term policies provide a level death benefit for a premium that
30 visits for the treatment of mental conditions each year
Assuming they are provided by a prescribed physician, which of the following claims is NOT covered under an association policy
65
At what age may an individual make withdrawals from an HSA for non health purposes without being penalized?
Is not covered
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary, and reasonable, the extra cost
Handling insurer funds in a trust capacity
In insurance transactions, fiduciary responsibility means
The completed application is submitted
In insurance, an offer is usually made when
In an institutional setting
In which of the following locations would skilled care most likely be provided?
Increased benefits
Issue age policy premiums increase in response to which of the following factors
Attending physician
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
Set premium rates
The Ownership provision entitles the policy owner to do all of the following EXCEPT
One-year term option
The dividend option in which the policy owner uses dividends to purchase a term policy for on year is referred to as
Control specialist costs
The gatekeeper of an HMO helps
The original age is used for premium determination
What is the advantage of reinstating a policy instead of applying for a new one?
30 days
What is the duration of the free-look period for Medicare supplement policies?
5 months
What is the elimination period for Social Security disability benefits?
Both a life insurance license and a securities license
What license or licenses are required to sell variable annuities?
Medical Reimbursement Benefit
What type of benefit helps to pay for accidental injuries that are not sever enough to qualify as disabilities?
It is reduced to the amount of what the cash value would buy as a single premium
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
The annuitant cannot be the same person as the annuity owner
Which of the following is NOT true regarding the annuitant?
It is a pool of companies issuing health coverage
Which of the following is true about the organization of ICHIA?
That its policies are covered by a state Guaranty Association
Which of the following may NOT be included in an insurance company's advertisement?
Optionally Renewable
Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insured?
The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges
A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity?
Insurable interest and consent
A life insurance policy has a legal purpose if both of which of the following elements exist?
This rider is available to all insureds with no additional premium
All of the following are true regarding the guaranteed insurability rider EXCEPT
The date of medical exam
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
Guaranteed insurability option
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Residual Disability
Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?
A Modified Endowment Contract
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is
Ancestry
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's
$50,000
If the Commissioner issues a cease and desist order, but the producer continue the same activities, the producer can face a fine up to which of the following amounts per violation?
Limited to 25% of a producer's annual commission income
In Indiana controlled business is
Any form of life insurance
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
Promptly forwards premiums to the insurance company
Pertaining to insurance, what is the definition of fiduciary responsibility?
The amount to be repaid under the contract
The initial amount of credit life insurance may NOT exceed
24 months
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last
Insuring clause
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
The insured
Under a health insurance policy, benefits, other than death benefits, the have not otherwise been assigned, will be paid to
Consideration
When an insured make truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
When the application is signed and a check is given to the agent
When is the earliest a policy may go into effect?
Payor Benefit
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Premiums are not tax deductible, and benefits are not taxable
Which of the following describes taxation of individual disability income insurance premiums and benefits?
Denial of coverage
Which of the following is NOT a cost-saving service in a medical plan?
Presuming the applicant is eligible for Medicaid, based on the nature of the policy
Which of the following is NOT among the goals of a Medicare supplement application?
The Medicare Part A deductible
Which of the following is NOT covered under Plan A in Medigap insurance?
A person who applied for Medicaid 90 days prior to applying for the Association policy
Which of the following would NOT be eligible for a health insurance policy from the Indiana Comprehensive Health Insurance Association?
Noncancellable and guaranteed renewable
Which renewal provision must be included in a long-term care policy issued to an individual?
Payment of premium
With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance?
The client is converting from an existing term policy to whole life
You know that your client is currently insured under a life policy, but you are making a sale presentation to that client for a new life policy. You must provide the client with the Important Notice Regarding the Replacement of Life Insurance and a copy of the sale proposal under all of the following situations EXCEPT
Lower the insured's premium
When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would
Disability Income
A Waiver of Premium provision may be included with which kind of health insurance policy?
Separate Accounts
A domestic insurer issuing variable contracts must establish one or more
Cervical cancer exams for all women starting at age 40
According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT
Sharing commissions with another licensed producer
All of the following may result in suspension or denial of an insurance license EXCEPT
AIDS treatment
All of the following would NOT be considered eligible expenses under an ICHIA policy EXCEPT
Taxation on Accumulation
All of the following would be different between qualified and non qualified retirement plans EXCEPT
Adjust the claim benefit to reflect the insured's true age
An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?
$200,000
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
The child may not be covered
An insured was pregnant when she applied for an individual accident and health sickness insurance policy. When will her insurance benefits extend to the newborn?
$120 a day
An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged a $100 per day. How much will the insurance company pay?
Conditions
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
Employee benefits are tax deductible this year in which they are received
Concerning group Medical and Dental insurance, which of the following statements is INCORRECT
Hazards
Events or conditions that increase the chances of an insured loss occurring are referred to as
5 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or report agency have to comply?
The annuitant will receive the higher of either the guaranteed minimum rate or current rate
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?
Master policy
In group insurance, what is the policy called?
Both are properly licensed or the recipient is not involved with the sale of said insurance
In life insurance, producers are permitted to share or split commissions, providing that
Need
The primary eligibility requirement for Medicaid benefits is based upon
Legal actions
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
Absolute and collateral
The two types of assignments are
Metal level classification
Under the Affordable Care Act,which classification applies to health plans based on the amount of covered costs?
The producer must conduct a reasonable investigation to determine if a replacement will take place
Under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties?
Fixed amount
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
An insured is diagnosed with cancer and needs help paying for her medical treatment
Under which of the following circumstances would an insurer pay accelerated benefits?
Disability Buy-Sell
Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
Life income with period certain
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Ask questions that relate to whether the applicant has been diagnosed with AIDS or HIV
Which of the following are life or health insurance companies allowed to do under Rule 39, which regulates the use of AIDS and HIV queries and information?
They earn lower interest rates than fixed annuities
Which of the following is NOT true regarding Equity Indexed Annuities
Benefit payment amounts are not guaranteed
Which of the following is a feature of a variable annuity?
The producer
Which of the following is a legal representative of a specific insurance company?
Telling a client that his first premium will be waived if he purchased the insurance policy today
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
The hearing must be held within 30 days of the written demand
Which of the following is true regarding a hearing upon the nonrenewable of a producer's license?
The benefit may be triggered by a terminal illness
Which of the following is true under Rule 48: Accelerated Death Benefits?
Cost comparison methods
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?
Funeral director insurance
Which of the following limited lines producer's licenses would require life producer's relicensing education and examination?
Universal Life - Option A
Which of the following policies would have an IRS required corridor of gap between the cash value and the death benefit?
Annual
Which of the following premium payment modes will incur the lowest overall payment?
Continuation Provision
Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's rights to change premium amounts?
Impairment rider
Which of the following riders would NOT increase the premium for a policy owner?
A period of time the insured must wait before benefits start
Which of the following statements best defines elimination periods?
Buy-sell agreements are normally funded with a life insurance policy
Which of the following statements concerning buy-sell agreements is true?
Withdrawals are not taxable
Which of the following statements regarding the taxation of Modified Endowment Contacts is FALSE?
Universal life
Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
Which of the following would be considered an unfair claims settlement practice?
Every company is required to establish marketing procedures
Which types of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?
30 days
A licensed produced must inform the Commissioner of a change of residential or business address within what timeframe?
They are not included as income for the employee, but are taxable upon distribution
How are contributions to a tax-sheltered annuity treated with regards to taxation?
Guaranteed insurability rider
If a life policy allows the policy owner to make periodic additions to the face amount at the standard rates, without proving insurability, the policy includes a
Permanent
If someone wants to buy a life insurance policy that will provide a lifetime protection against premature death, what type of life insurance policy should that person buy?
Prepaid plan
A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called
Reciprocity
A producer licensed in another state wants to become a non-resident producer in Indiana. The other state gives the same privileges to Indiana producers as it does to its own producers. Indiana, therefor, extends the licensing privileges to the prospective producer of the other state. What is this called?
Annually Renewable Term
All other factors being equal, the least expensive first-year premium payment is found in
Lower
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
There will be a tax
An HSA holder who is 65 years old decided to use the money in the account for a non health expense. Which of the following is true?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
The insured may choose to convert to term or permanent individual coverage
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT
Premiums
All of the following are examples of risk retention EXCEPT
Federal Deposit Insurance Corporation (FDIC)
Which of the following is NOT a government-funded insurance program?
To purchase a smaller amount of the same type of insurance as the original policy
The paid-up addition option uses the dividend
The Commissioner
What authority is responsible for examining the operations of insurance companies in this state?
Increasing Term
What type of insurance would be used for the Return of Premium Rider?
November 1 - January 31
When is the annual open enrollment for state insurance exchanges?
Coverage for catastrophic medical expenses
Which of the following is NOT true of basic medical expense plans?
