life insurance exam

Life insurance death benefits are guaranteed by the Delaware Life and Health Guaranty Association for up to?

$300,000

what is the minimum number of activities of daily living (ADL) an insured must be unable to perform to qualify for long term care benefits?

2

Group health insurance has a required grace period of

31 days

conversion period for a terminated employee to convert a group life plan to an individual plan ... how many days?

31 days

the provision that defines to whom the insurer will pay benefits to is called:

payment of claims

a disability elimination period is best described as

time deductible

misrepresentation made by an insurance agent to induce a policyholder to lapse a policy in order to switch insurance companies.

twisting

The commissioner may examine the business records of a producer

when it's deemed necessary

Who is a mutual insurance company owned by?

Its policyholders

A small employer group is an employer that employs how many?

No more than 50 employees

when an insurer issues a policy that refuses to cover certain risks

exclusion

replacement regulations apply on to what contracts?

ordinary life contracts

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the

policy loan provision

A stock insurance company is owned by

shareholders/stockholders

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

variable life

J is a producer who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this producer be found guilty of?

Coercion

A brochure that contains untrue statements regarding a competitor's ability to pay claims is circulated. Which unfair trade practice has occurred?

Defamation

How does an indexed annuity differ from a fixed annuity?

Indexed annuity owners receive credited interest tied to the fluctuations of the linked index

what is medicare?

a hospital and medial expense insurance program

T the producer is trying to dissuade a policy owner from replacing an existing insurance policy. This action taken by T is called

conservation any attempt by the existing insurer or its insurance producer to dissuade a policyowner from replacing an existing insurance policy.

what kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?

convertible term

what best describes a hospital indemnity policy?

coverage that pays a stated amount per day of a covered hospitalization

benefits from a credit life or disability policy are paid to the

creditor

how are surrender charges deducted in a life policy with a rear-end loaded provision?

deducted when the policy is discontinued

A characteristic of PPOs would be:

discounted fees for the patient

An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?

distribution is subject to federal income tax withholding

How are Roth IRA distributions normally taxed?

distributions are received tax-free

what is considered a valid reason for small businesses to insure the lives of its major shareholders?

fund a buy-sell agreement

Basic Medical Expense Insurance

has lower benefit limits than Major Medical insurance

traditional individual retirement accounts

have a 10% penalty applied to withdrawals before age 59 1/2

which of the following statements about health reimbursement arrangements (HRA) is correct?

if the employee paid for qualified medical expenses, the reimbursements may be tax-free.

a producer must do what during a sales presentation for a participating life insurance policy?

include a statement that dividends are not guaranteed.

In a Key Employee life insurance policy, the third-party owner can be all of the following EXCEPT

insured

variable annuities may invest premiums in each of the following except

insurer's corporate business account

which of the following health insurance policy provisions specifies the health care services a policy will provide?

insuring clause

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT

interest only

What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?

irrevocable beneficiary

which of the following combinations plans is designed to protect an insured from an unpaid mortgage balance upon premature death?

joint life

the underwriting process does not involve

policy loan

When an employee is terminated, which statement about a group term life conversion is true?

policy proceeds will be paid if the employee dies during the conversion period

which statement accurately describes the waiver of premium provision in an accident and health policy?

premiums are waived after the insured has been totally disabled for a specified time period

the provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called

reinstatement

The investment gains from a universal life policy usually go toward:

the cash value

Essential benefits without annual and lifetime limits are required on any health policy purchased

through the federal marketplace

Convincing a prospective insured to buy an insurance policy based on exaggerations is called

misrepresentation

which of the following characteristics is associated with a large group disability income policy?

no medical underwriting

short term medical policy?

interim coverage

A French insurance company conducting business in Delaware would be known as an

Alien company

which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?

Entire contract

which of the following statements best describes how a policy that uses the "accidental body injury" definition of an accident differs from one that used the "accidental means" definition?

Less restrictive

A whole life insurance policyowner does not wish to continue making premium payments. which of the following enables the policyowner to sell the policy for more than its cash value?

Life settlement contract

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits?

Residual benefit clause

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity?

Residual disability

which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?

Risk classification

Which of the following statements best describes dental care indemnity coverage?

Services are reimbursed after insurer receives the invoice.

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

Single premium

According the the affordable care act (ACA), a dependent child's eligibility status is determined by

age

Which premium schedule results in the lowest cost to the policyowner?

annual

group life insurance policies are generally written as

annually renewable term

When does a Probationary Period provision become effective in a health insurance contract?

at the policy's inception

When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates?

change of occupation provision

One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is

closely regulated and requires full disclosure.

N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as

coinsurance

the incontestable clause allows an insurer to

contest a claim during the contestable period

Delaware law provides for a grace period of not less than how many days for a monthly-premium health insurance policy?

10

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the

waiting period

a life insurance policy that provides a policyowner with cash value along with a level face amount is called

whole life

a return of premium life insurance policy is

whole life and increasing term