Life Insurance

A survivorship life insurance policy usually covers how many lives?

2 lives

After an annuity has been in force for ______ years, it becomes incontestable

2 years

How many employees must an employer have for the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to apply?

20 or more.

Which of the following is NOT true of a preferred provider plan

Hospitals can only initiate preferred provider plans

Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of

20%

What year was the mental health parity an addiction equity act established?

2008

What is the maximum number of employees an employer may have for qualified medical savings accounts?

50.

A policyowner decides to surrender the cash value of a whole life insurance policy. How many months does the insurer have to delay this payment?

6 months

What is the actuarial value of a bronze level health plan

60

At what age do most people become eligible for Medicare?

65 years old

The highest mortality rate belongs to which group?

70 year old males

Which of the co-annuitants listed below would receive the largest monthly benefit payments in a joint and 100% survivor annuity?

71 and 73

According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?

8 am to 9 pm

How many hours of initial long term care training must a producer complete before soliciting long term care products?

8 hours

A ______ restricts the exposures it writes to those of its owners.

A captive insurer

After an applicant reads and signs an insurance application, he/she should be conscious of the fact that

A false statement could lead to loss of coverage.

Medicare can be described as?

A federal health insurance program for individuals over the age of 65 or permanently disabled

Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy?

A portion of the payments paid to the beneficiary comes from interest calculated on the proceeds of the policy

Which of the following actions is considered to be an unfair trade practice?

A producer who sells insurance to an individual by means of threat

A lost of minimum essential coverage usually counts as a qualifying event that triggers what?

A special enrollment period

Which of the following is NOT a reason for a business to buy key person life insurance?

AN increased pension liability if the key employee dies

Duties that a producer may be required to perform when delivering an insurance policy?

Acquire a statement of good health signature, Gather the initial premium, and Review the policy with the applicant .

What is not covered by a comprehensive long term care policy?

Acute care

a ______ insurer operates in the U.S. but is headquartered outside the U.S.

Alien insurer

Which of the following individuals may NOT obtain a temporary producer license?

An employee of a retired licensed producer

Which is an accurate description of the premium in a graded premium life insurance policy?

Annual increases in premium for a stated number of years then remains level.

Traditional individual retirement annuity distributions must start by

April 1st of the year following the year the participant attains age 70 1/2

A trade association group is seeking coverage from group medical benefits. The members of this association are what?

Are probably in the same industry

An individual is seeking coverage for nursing home (custodial) care that does NOT require any previous period of hospitalization. Which program offers these specifications?

Arizona Health Care Cost Containment System (AHCCCS)

Who manages the premiums collected from a group's members for a reciprocal insurer?

Attorney in fact

A reciprocal insurer typically has an administrator who manages the premiums collected from the groups members. This administrator i called what?

Attorney-in-fact

Which statement regarding the cash value of a whole life insurance policy is correct?

Available to the policyowner when the policy has been surrendered.

What is the federal income tax liability of a death benefit paid from a health insurance policy to a named beneficiary ?

Benefits are not taxable

The amount of disability income payments for an on the job injury may be reduced by?

Benefits paid under workers compensation.

Taking a sum of money and decreasing it in size is called?

Capital liquidation

Which would be described as a beneficiary designation by class?

Children of the insured

Which of these is not a true statement of the war exclusion?

Civil Insurrections apply

Which of the following statements is true regarding accident and health insurance claims that reimburse on an indemnity basis?

Claims can be sent directly to in the insured

What are some features in an adjustable life insurance policy?

Combines term and permanent insurance into a single plan, Allows flexibility as insurance needs change, Plan of coverage may be changed by the policy owner, and policy loans are permitted.

Chris has a single major medical contract which covers all medical expenses. His plan is considered to be

Comprehensive

The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a?

Conditional contract

An accident and health insurance policy's premium requirements are set forth in which of the following provisions?

Consideration clause

What are some things that can happen in a group life insurance plan?

Cost can be shared between employer and employee, a minimum number of employees participating may be required, and employer is issued a master policy

According to the needs approach, an emergency reserve fund's primary purpose is to?

Cover the cost of unexpected expenses

Any employee insured under a group life insurance plan is normally

Covered with term life insurance

If issued a conditional receipt and then later found to be insurable and issued a policy when does the coverage become effective?

Date of insurance of the conditional receipt

The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the

Deductible amount

Which annuity allows contributions to an IRA?

Deferred annuity.

An insurer markets its products by soliciting customers by mass media advertising and mail WITHOUT using the services of a producer. Which of these marketing systems does the insurer utilize?

Direct response

Disability income policies provide protection for which of the following ?

Economic death

What statement best defines what a Policy Title means on an insurance policy?

Every policy must have a title on the face and on the back of the policy, briefly describing the policy.

Long term care policies will usually pay for eligible benefits using which of the following methods?

Expense incurred

Which tax is normally associated with an individual's death?

Federal estate tax

What may not be deducted from premium payments or the cash value or a variable life insurance policy?

Federal premium taxes.

The "Use it or Lost it" rule applies to?

Flexible Savings Accounts

Which of these is NOT a factor during the health insurance underwriting process?

Former residence

Valid reasons for an insurer to consent a life insurance policy during the policy during the policy's first two years of existence

Fraud, Material misrepresentation, and material concealment

Annuity contract may be returned for a full refund during what period?

Free look period

A family counseling benefit is typically offered under which of these coverages?

Hospice care

According to the affordable care act, coverage may be rescinded if?

If intentionally false statements were offered

When is it acceptable to charge or receive a fee or service charge in addition to the premium in connection with the transaction of insurance ?

If the amount of the fee or service charge is reasonably related to the cost of the service

When a large sum of money is used to structure monthly payments, which product is typically used?

Immediate annuity

The unwritten authority given to a producer to carry out necessary incidental acts of the agency agreement is called?

Implied authority.

Which health policy clause specifies the amount of benefits to be paid?

Insuring clause

The initial premium for a life insurance policy is typically paid in what way?

It is typically obtained by the producer and forwarded to the insurer

If dividend option choices are offered on a whole life insurance policy the policy must be what?

It must contain a statement that dividends are not guaranteed

A policy that covers the business expense of finding a permeant or temporary employee to replace a disabled one is what type of disability coverage?

Key employee coverage

How much is normally paid to a policyowner in a life (viatical) settlement?

Less than the death benefit

Which of these is NOT a common life insurance nonforfeiture option?

Life income annuity

What is a juvenile life insurance policy?

Life policy that covers the life of a minor

What action can an insurer take to discourage malingering and false disability terms?

Limit the amount of benefits an insured can receive from two disability policies with the same insurer

An insurance policy may be issued with a preferred insurance premium in all of these situations except?

Living in a rural area

Which of the following is a syndicate established by a group of insurers to share underwriting duties?

Lloyds organization

Respite care coverage is typically found in an?

Long Term Care policy

Field underwriting by a producer

May result in the disclosure of hazardous activities of the applicant

Medicare Part A coinsurance payments are covered by?

Medical Supplement Plan A

What would be considered an act of misrepresentation?

Misleading or failing to adequately disclose the title and true nature of a policy offered to a client.

Which of these actions is considered to be an Unfair Claim Settlement Practice?

Misrepresenting pertinent policy provisions relating to coverage after a loss

A life policy that has premiums that are lower than normal during the early years is called?

Modified life

When does a family accident and health policy's coverage for a newborn child begin?

Moment of birth

Periodic health claim payments MUST be made at least

Monthly

Requirements of skilled nursing care?

Must be ordered by a doctor, must require daily care, and must be provided by skilled medical practitioners

In AZ the human immunodeficiency virus (HIV) consent form...

Must disclose who will be receiving a copy of the test results

Which index should you look at when making comparisons concerned with the policy death benefit?

Net payment cost index

Which of the following health insurance plans charges a premium that cannot be increased?

Noncancelable

A life annuitant who has lived beyond their life expectancy. The funds for additional benefit payments will be derived primarily from funds that were?

Not distributed to life annuitants who died before life expectancy

Typically, working individuals age 65 or over must be

Offered the same Health benefits as the younger employees

A physician who accepts assignment on a Medicare claims is called an?

Participating provider

Reasons for purchasing life insurance on a child's life would be?

Pay for the child's funeral expenses, Provided a start on the child's personal insurance, and to help provide funds for the child's education.

Which of the following can be defined as a cause of a loss?

Peril

Dividends from a mutual insurance company are paid to whom?

Policy holders

What happens to a life insurance policy when the policy loan balance exceeds the cash value?

Policy will no longer be in force

Where is the difference between a standard risk and a substandard risk reflected?

Premium Charges

How to determine the accumulation value of a deferred annuity?

Premiums paid + interest earned - expenses and withdrawals

A Guaranteed Renewable provision allows?

Premiums which can only be increased per rate class

An insurance producer must keep usual and customary records that pertain to transactions under he producers license at their?

Principal place of business

A pre-existing condition exclusion in a accident and health insurance policy pertains to?

Prior health matters

When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?

Producer

A handicapped child is covered under an individual health policy. If continuation of coverage is needed beyond the policy's age limit, which of the following is required ?

Proof of incapacity and dependency upon reaching the age limit

A Medicare Supplement policy is required to do which of the following?

Provide a 30 day free-look period

A group Medicare Supplement policy was terminated and not replaced by the insurer. In this situation, the insurer MUST

Provide an offer of conversion to individual coverage

The ACA (Affordable Care Act) must ensure a sufficient choice of _________ in the marketplace

Providers

Jim is covered under a disability income policy. He is hurt while engaged in an occupation that is more hazardous than the occupation he specified in the policy. What action will the insurer likely take?

Reduce the benefit level

What best describes the HIPAA portability rules for an individual who changes from one group medical plan to another?

Reduces or eliminates any pre-existing conditions excluded under the new plan

A dividend option that results in a limited current outlay of funds?

Reduction of premium payment.

A long-term care policy owner is replacing existing coverage with a new policy. Replacement regulations require a _____________ notice be signed by the applicant and retained by the replacing insurer

Replacement notice

What is the insurer responsible for when a producer is acting within the scope of authority granted in the agency contract?

Responsible for acts by the producer that are authority only

What is the process of analyzing exposures that create risk and designing programs to handle them?

Risk management

An example of endodontic treatment is?

Root canal.

What does a fixed life annuity offer protection against?

Savings depletion due to longevity

Which of these is NOT considered the responsibility of a producer during the underwriting process?

Selecting the final approval date

A health insurance policy issued on a conditionally on a renewable basis gives the insurance company the right to refuse renewal of the policy for what reason?

Specific reasons stated on the contract

XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this?

Split-dollar

Which of the following entities does NOT establish regulations for variable insurance products?

State attorney general

Steve has a group disability income policy where the premiums are paid by his employer. He elected to pay for additional residual disability coverage. Which of the following statements is true?

Steve will pay taxes on the disability benefit received from his employer, but will receive any residual disability benefits tax free

Which of these annuity contract features is meant to discourage withdrawals and exchanges?

Surrender charges.

How does the cost of a survivorship life policy compare to the cost of combining two separate individual life insurance policies?

Survivorship life policy is lower

How a monthly life annuity benefit payments treated under a tax sheltered annuity?

Taxed as ordinary income in the year received

Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan?

Taxes must be paid on 75% of the benefits received

Who is responsible for determining the appropriateness of a Medicare Supplement policy for a applicant ?

The Producer

Which factor determines the maximum disability income benefit that can be purchased by an applicant?

The applicants income

A source of supplemental income for a life insurance policy owner can be derived from what?

The cash value

What is payable to the policy owner if a whole life policy is surrendered prior to its maturity date?

The cash value

In order for a health plan to be an accountable health plan who has to approve it?

The director

Which parties are directly involved in a group accident and health insurance contract?

The employer and the insurer

All of these statements concerning group credit life insurance are false except?

The face amount is based on the outstanding loan balance

Medicare Part A does NOT provide coverage for?

The first 3 pints of blood

An insured, age 67, is covered under a disability income policy. What will the insurer require in order for the insured to continue coverage?

The insured must be actively at work fir a specified number of hours per week

Who may terminate coverage under a cancelable health insurance policy?

The insurer or the insured

An arrangement where an individual is authorized to act on behalf of another person or company is established through?

The law of agency

Which of these is a typical result of a concurrent review?

The length of time spent in the hospital is monitored

The authority to change the beneficiary in an individual annuity lies with who?

The owner

Who is normally considered to be the owner of a 403(b) tax sheltered annuity?

The participating employee

What happens when a policyowner borrows against the cash value of his life insurance policy?

The policy proceeds would be reduced by the outstanding loan balance.

Which of the following is a true statement regarding a Medicare supplement policy purchased during the open enrollment period?

The policy will be issued regardless of health

A statement must be signed by who for any illustrations used in a sale of a life insurance policy?

The producer

Under federal law which of the following actions may result in a producer becoming imprisoned?

The producer embezzling funds from an insurer

An insurance company is marketing a health insurance policy in AZ. Which contains a provision that is in conflict with AZ insurance law. What remedy must be take by the insurer?

The provision must be amended to conform to the minimum statutory requirements.

A guarantee of insurability option provides a long term care policy owner the ability to do what?

To buy additional coverage at a later date

A hold-harmless clause is an example of risk _____________

Transfer

The producer replaces the client's existing life insurance policy with a new one which action is advisable?

Wait until the new policy is issued and delivered before surrendering existing policy

At what point are death proceeds paid in a joint life insurance policy?

When the first insured dies.

Which statement regarding whole life insurance is accurate?

Whole life insurance can continue for life.

A licensee or applicant who is ordered into active military service may request that the license or application be placed on inactive status by sending the department what?

Written Statement

The refusal of doing business with an individual or business is called ?

boycott

In a life a insurance policy which the dividends are left with the insurance company the policy may be paid up when the cash value plus accumulated dividends

equal the net single premium for the same face amount at the insured's attained age

These are all accurate statements regarding universal life insurance except?

policy loans are not permitted

A certificate of coverage for a group health policy is best described as

proof of coverage for the employee

When issuing disability income coverage on a substandard risk, an insurance company may

shorten the benefit period

Facts about the installments for a fixed period settlement option in life insurance policies are?

the shorter the period of time, the larger each installment. The longer period of time, the smaller each installment. The installment payments are composed of both principal and interest