NWM Test
What is considered a valid reason for small businesses to insure the lives of its major shareholders?
Fund a buy-sell agreement
Insurable interest in one's own life is legally considered as
Generally unlimited
When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?
Give notice, explain, and allow opting out
An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?
Good health statement
What is the term used for an insurance contract that identifies individuals by relationship to a specific organization?
Group insurance
What is the name of the rider that provides an additional purchase option in a life insurance policy?
Guaranteed insurability rider
Which statement regarding the certificate of insurance is accurate?
Indicates evidence of an employee's insurance coverage
Which of the following financial products creates an instant estate, no matter when the date of death?
Life Insurance
What is covered under a limited accident and health insurance policy?
Limited perils and amounts
Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment?
Loan amount is increased to reflect the amount of interest due
Which of these is NOT relevant when determining the amount of personal life insurance needed?
Local unemployment rates
Tim has an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this?
Noncancelable
Which element of a contract constitutes a definite an unqualified proposal by one party to another?
Offer
Which of the following can be defined as a cause of a loss?
Peril
These are all accurate statements regarding universal life insurance EXCEPT
Policy loans are not permitted
Which of the following statements BEST describes disability buy-sell insurance policies?
Policy proceeds are typically received income tax-free
What happens to a life insurance policy when the policy loan balance exceeds the cash value?
Policy will no longer be in force
Which of the following describes a participating insurance policy?
Policy-owners may be entailed to receive dividends
How are level term policies able to provide level premiums?
Premiums are averaged over the term of the policy
An insured is entitled to coverage under the policy that a prudent person would expect it to provide. This principle is called..?
Reasonable expectations
How are qualified Roth IRA distributions normally treated for tax purposes
Received income tax-free
When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits?
Recurrent Disability
Which of the following is NOT a reason the government provides insurance
Reduce Fraudulent Claims
What happens to the death benefit of a life insurance policy if the insured elects a partial payment from the accelerated (living) benefit provision?
Reduced
What effect can a long-term care benefit rider have on a life insurance policy?
Reduced death benefit
What could be the potential result of taking out a cash value loan under a life insurance policy?
Reduces the amount receivable upon surrender of the contract
ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk
Reduction
which of the following is NOT a valid cause for termination of an employee's group health coverage
the coinsurance limit has been exceeded
if one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission
the commission will likely be shared between the two producers
which of the following the the BEST candidate for a temporary insurance license
the executor of the estate of a deceased licensed producer
Medicare Part A does NOT provide coverage for
the first 3 pints of blood
According to the IRA, a company may NOT do which of the following in regards to funds in a qualified retirement plan?
Repossess the funds for business purposes
T is covered by an Accidental Death and Dismemberment (AD&D) policy that contains an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
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 incidents would NOT be covered by an Accidental Death and Dismemberment policy?
Suicide
Under the Law of Agency, the principal is considered to be
The Insurer
What is considered the collateral on a life insurance policy loan?
The policy's cash value
Which of these must be disclosed in a universal life policy?
The policy's surrender charges
Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate?
The premium to purchase the coverage comes from the policy's cash value
Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?
The specified benefit amount is a percentage of his wages
Under which circumstance can an insurance company offer group Health insurance?
The sponsoring group provides an employer-employee relationship
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
A business becoming incorporated is an example of risk ____.
Transfer
A hold-harmless clause is an example of risk
Transfer
How do birthing centers reduce medical costs?
Using certified nurse midwives
Laura has an employer-based preventative health care plan that focuses on an enrollee's problems, such as drug abuse or stress. These plans are called
Wellness programs
A contract is considered void in all of the following situations EXCEPT
When consideration is unequal
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has a cash value
The following are all elements of a valid contract EXCEPT
Written evidence
Short term group disability income benefits are
a percentage of weekly earnings up to to a stated maximum
Which of the following statements accurately describe the "time limit on certain defenses"?
after a stated period of time, claims cannot be denied due to material misrepresentation on the application
an accident and health plan that typically covers only the services of approved providers is called a
an HMO plan
a television advertisement features a health insurance product that is endorsed by a specific group. In this advertisement,
any control by the insurer over this group must be disclosed
In a qualified retirement plan, the yearly contributions to an employee's account
are restricted to maximum levels set by the IRS
Julie is in need of assistance with one or two activities of daily living. She may be eligible for a(n)
assisted living facility
An insured has been ordered by the court to provide a Childs health insurance. upon this order, the insurer must allow the enrollment of this child.
at any time
when does a family health policys coverage for a newborn child begin?
at the moment of birth
Pat is covered by a disability income insurance policy that covers disabilities arising from a work-related illness or injury. The amount of his disability income payments for an on-the-job injury may be reduced by
benefits paid under works compensation
A Health Reimbursement Arrangement MUST be established
by the employer
Medical costs in birthing centers are lowered by using
certified nurse midwives
which of these is NOT a punishment for committing an unfair or prohibited insurance practice
community service
which of these is NOT considered a federal punishment for unfair and deceptive insurance practices?
community service
A producer MUST notify the Commissioner for
conducting business under an assumed name
life settlement proceeds may be subject to the claims of
creditors
health providers are compensated by a preferred provider organization from normal dental procedures by what means?
decreased fee schedules
which of these typically regarded as a major treatment in an indemnity dental plan?
dentures
if a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sale presentation MUST
disclose that premium payments may need to be resumed depending on actual results
A qualified profit-sharing plan is designed to
distribute a portion of company earnings to its employees
An annuity contract may be returned for a full refund during the
free look period
Emily is disabled. In order to become eligible for Social Security disability income benefits, she must be
fully insured, according to social security
A health insurance underwriter will most likely view alcohol abuse as
increased exposure to risk
health care costs can be better controlled by utilizing preadmission testing. Preadmission testing can reduce the
length of hospitalization
which of the following is NOT information needed to determine the suitability of an annuity recommendation?
level of education
How can a group dental insurer discourage adverse selection?
limit the duration of coverage
Respite Care coverage is typically found in a(n)
long term care policy
In a disability income contract, an insured is considered to be totally disabled under the presumptive disability provision if he/she
loses the ability to speak
A life policy's spendthrift clause would have no effect if the beneficiary is paid the proceeds as a
lump-sum payment
in ct, false adverting is an example of
misrepresentation
Which action will trigger a penalty tax on premature distributions from a modified endowment contract (MEC)?
policy loans
The standard provisions of an accident and health insurance policy require that the
policy, endorsements, and attached papers constitute the "entire contract"
which of these is NOT a standard provision in qualified long-term care policies sold in CT
prior hospitalization
Alan is an enrollee of a health maintenance organization (HMO) which uses a gatekeeper system. If there ever comes a time when he needs emergency health services, what should he do?
proceed to the nearest emergency room
Any employee insured under a group life insurance plan is normally
protected by term life insurance
a life insurance policy owner sells her policy to a third party in a life settlement. Under this transaction, the policy-owner
receives an amount less than the policy death benefit
Omar is covered by a disability income policy. He is hurt while performing an occupation more hazardous than the occupation listed in his policy. The policy's change of occupation provision will have what effect?
reduce the benefit level
which of these situations would NOT potentially involve a prison sentence under Federal Law?
selling insurance with a nonresident license
A stock Insurance company is owned by its
shareholders
When issuing disability income coverage on a substandard risk, an insurance company may
shorten the benefit period
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for
specific reasons stated in the contract
A group health certificate for coverage issued in Connecticut must contain a
summary of policy features and benefits
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally
tax deductible to the business
The premiums paid by an employer for his employee's group life insurance are usually considered to be
tax-deductible to the employer
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
a producer must complete __ credit hours of continuing education for each licensing period
24
any administrative action taken against a producer MUST be reported to the Commissioner within __ days after the final disposition
30
producers license in CT must notify the Insurance Department within __ days of any change of name or address
30
social security disability income requirements state that in order to become fully insured on a permanent basis, you must have worked in a covered occupation for
40 quarters
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?
50%
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy?
6 months
What age do most people became eligible for medicare
65
ERISA requires that a summary plan description must be provided to a new plan member within how many days following the new members eligibility date?
90
Which of the following combinations best describe a universal life insurance policy?
A flexible premium deposit fund and a monthly renewable term insurance policy
which of the following best describe a point-of-service plan?
A plan which combines indemnity plan features with those of an HMO
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
A producer working for an insurance company may be personally liable for..?
Acts performed which are prohibited in the agency contract
Which of the following is NOT covered by a comprehensive long-term care policy?
Acute care
Which statement regarding a single premium life insurance policy is NOT correct?
Additional premiums may be required under certain conditions
What is the reason that insurance companies require a minimum number of employees participating in a group insurance plan?
Adverse selection is minimized
In regards to health insurance, employees age 65 or older are typically required to
Be offered the same group health benefits offered to the younger employees
Which of the following statements BEST describes a double indemnity provision in travel accident insurance?
Benefits are doubled under certain circumstances stated in the policy
the Change of Occupation provision in a Disability Income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply?
Benefits can be increased in the event of a covered claim
Who normally pays the premiums for group credit life insurance?
Borrower
A preferred provider plan and an indemnity plan are similar in what way
Both pay on a fee-for-service basis
An accident and health insurance policy defines an injury as "bodily injury by accidental means". For an injury to be covered on this policy, what is required?
Both the cause and resultant injury must be accidental
Which of these is NOT considered to be a cost connected with an individual's death?
Business expenses
What type of employee welfare plans are not subject to ERISA regulations?
Church Plans
Which of the these is NOT a true statement of the war exclusion?
Civil insurrections apply
all of these considered to be a violation of the Federal Fraud and False Statements Act EXCEPT
Claims reimbursement
Which report contains information regarding an individual's general reputation and credit standing?
Consumer report
Which of the following disability buy-sell agreements is best suited for businesses with a small number of partners?
Cross-purchase agreement
Major medical plans typically exclude coverage for which of the following benefits
Custodial care
Which of these is NOT an underwriting responsibility of a life insurance agent?
Determining the final rate classification
Which statement about group life insurance is INCORRECT?
Each participant requires evidence of insurability
An employer has a group life insurance plan in place for his employees. How would an employee in poor health be treated in this situation?
Eligible for the same type of coverage as the other employees
A group health insurance policy is a contract between an
Employer and insurance company
The benefit period of Medicare Part A begins on the first day the insured
Enters a hospital
An agreement is reach when an insurance contract is formed. Which of the follow is not considered to be an element of an agreement?
Equity
Which statement concerning a decreasing term life policy is accurate?
Face amount decreases over the policy period
Which benefit supplement added to a life insurance policy insures an entire family?
Family term rider
What are premiums for group credit life insurance based on?
Flat rate unrelated to the borrower's age
Rick owns a variable universal life policy and chooses a variable death benefit option. What will typically happen to the death benefit as a result of this selection?
Fluctuate with changes in the cash account
which of the follow best describes a "partial disability"
unable to perform one or more job duties
What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?
100%
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value?
$16,000 was received tax-free and $4,000 as ordinary income
An insured files for an accident and health insurance policy claim eight days after the premium due date. The benefit payable is $500 and the overdue premium is $200. Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision, how much will the insurer pay?
$300
An individual working part-time has an annual income of $5,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?
$5,000
James has individual health insurance with two different insurers. The "insurance with other insurers" provision in an individual health insurance policy allows an insurer to pay benefits to the insured on a pro-rated basis when
the insurer was not notified prior to the claim that the insured has other health coverage
Which of these is a typical result of a concurrent review?
the length of time spent in the hospital is monitored
an individual in ct who chargers a fee for giving advice on a insurance policy must be licensed as a consultant if the advice is given to
the policyholder
The difference between a doctors actual chargers and the amount approved by medicare is referred to as a
Excess Charge
after conducting a hearing, the commissioner is empowered to issue a cease and desist order. A violation of such an order is punishable by monetary fine not to exceed
$50,000
An individual is insured under a major medical plan with a $1,000,000 lifetime benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year, what is the remaining lifetime benefit
$960,000
the free look period in a life insurance policy is usually
10 days
When premiums are determined, one factor would be the expenses of the
insurer
A policyowner with a terminal illness who sells his life insurance policy to a third party is called a
viator
mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy
until they become self-supporting
John received a one-time distribution of $50,000 from his modified endowment contract (MEC). Prior to that, the contract's cash value was $150,000, the contract investment amount was $100,000, and the death benefit was $500,000. What percentage of the $50,000 distribution was taxable as ordinary income?
100%
What is the maximum social security disability benefit amount an insured can receive
100% of the insured's primary insurance amount
Under HIPAA, medical plan late enrollees may be excluded for pre-existing conditions for a maximum of
18 months
What is a "functional assessment" for long-term care benefits?
A review of the insured's ability to perform the activities of daily living
Which benefit is normally payable to a life insurance policyowner when the insured's life expectancy has been severely limited?
Accelerated (living) benefit
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?
Accidental death and dismemberment
Which of the following situation would allow funds to be deposited into a rollover IRA?
An employee quits her job and receives $50,000 from her qualified plan
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
According to the Pregnancy Discrimination Act of 1978, employers must treat pregnancy in the same manner as
Any other medical disability
According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing conditions exclusion?
Any period of prior coverage
In what situation could an insurance policy's coverage be modified?
Applicant is a substandard risk
which of the following situations would a medical exam NOT be required for an individual health insurance applicant
Applicants family members have a history of cancer
Which of the following types of insurers limits the exposures it writes to those of its owners?
Captive insurer
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes?
As a section 1035 exchange
When does the insured stop making payments under a thirty-payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
A reciprocal insurer typically has an administrator who manages the premiums collected from the group's members. This administrator is called a(n)
Attorney-in-fact
A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?
Business overhead expense
a producer recently placed an existing Medicare Supplement policy with a new policy. The producers compensation for the new policy
CANNOT exceed the renewal commission of the original policy
Which statement regarding the waiver of premium rider is accurate?
Cash payment is not directly provided to the policyowner
A comprehensive group policy also covers expenses related to vision care. Which of the following is not typically covered under a vision plan?
Cataract Surgery
Which of the following is NOT a condition that must be met for an accidental death benefit to be paid?
Cause of death must be from a job-related injury
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective?
Date of issuance of the conditional receipt
What effect does interest income have upon insurance premiums?
Decreases premium
Which of these life insurance policies does NOT contain a cash value provision?
Decreasing term life
Long Term Care policies will usually pay for eligible benefits using which of the following methods?
Expense Incurred
An appointed producer's implied authority is derived from
Express Authority
Which tax is normally associated with an individual's death?
Federal estate tax
An organization that requires healthcare services to be provided by a network of physicians and hospital is known as a
HMO
which of the following health plans pay benefits on a pre-paid service basis
HMO
What is another name of Keogh Plan?
HR 10 Plan
Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis?
Her employers group accident and health plan
Terry receives long-term physical therapy at her residence. What type of insurance would cover this service?
Home health care
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
Trade association groups that are eligible for group medical benefits normally are
In the same industry
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 10% penalty tax on $30,000
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
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT
Leave a conditional receipt with client
Which of the following situations would an insurance agent need to guard against liability for professional errors and omissions?
Making a recommendation to a potential insured to replace existing coverage
Risk ____ is the process of analyzing exposures that create risk and designing programs to handle them.
Management
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual?
Management of proceeds would be provided
Which of these is a type of private insurance that covers the cost-sharing amounts under Medicare?
Medicare Supplement
Medicare Part B excess charges are covered by
Medicare Supplemental insurance
What is considered a valid reason for an insurer's refusal to pay policy proceeds directly to a minor?
Minors are normally not capable of handling money in a reasonable manner
Which of the following does NOT meet the requirements of "skilled nursing care"?
Must be provided exclusively in a hospital
Which statement is NOT true regarding health insurance policies that provide limited benefits
Only persons under the age of 65 are eligible
Which would NOT be a location where skilled nursing care is provided
Personal residence
A disability income insurance policy was recently issued with a rating. What does this mean?
Policyowner will be charged an additional premium
A Guaranteed Renewable provision allows
Premiums which can only be increased per rate class
Which of the following would NOT be a reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
Which of the following could be a future use of the cash value that builds in a recently- purchased whole life insurance policy?
Provide supplemental income in 35 years
Which of these occurrences could improve an insurer's ability to reduce premiums?
Rate of earnings on investments increase
Which of the following can be defined as "the potential for loss"?
Risk
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a
Risk Retention group
Which of the following describes the act of insuring a risk against possible loss?
Risk Transfer
Which term describes the elimination of a hazard?
Risk avoidance
What does a 401(k) plan generally provide its participants?
Salary-deferral option
Assets that back the non-guaranteed values of variable life insurance products are held in which account?
Separate account set up by the insurer
Dividends from a stock insurance company are normally sent to
Shareholders
Laura is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period?
Sign an enrollment card
Medicare Part A covers which type of care?
Skilled nursing facility care
Which of the following would not have a restricted ability to enter into a contract?
Small Employer
What type of risk involves the potential for loss and the possibility for gain?
Speculative
Which one of these is NOT considered to be an element of an insurable risk?
Speculative Risk
Which life insurance policy provision prohibits a beneficiary from "commuting, encumbering, withdrawing, or assigning" any portion of the proceeds prior to actual receipt from the company?
Spendthrift clause
Who regulates an insuer's claim settlement practices?
State insurance departments
How does the cost for a survivorship life policy compare to the cost of combining two separate individual life insurance policies?
Survivorship life policy is lower
Under a key person disability income policy, benefits will be received as
Tax-free income to the business
Which of the following does medical expense insurance NOT typically cover?
Treatment in a government facility
What type of reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
Treaty Reinsurance
For purposes of disability income insurance, earned income would include all the following except
dividends
a temporary license may be issued to which of the following
employee of a disabled producer
Non-occupational disability coverage is designed for
employees who suffer non-work disabilities, since work-related disabilities are covered by workers compensation
A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered EXCEPT for
experimental and investigative services
which of the following is considered to be a prohibited insurance practice
failing to submit premiums to the insurer
a consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. which of the following does this statute originate from?
fair credit reporting act
which of these is NOT a factor during the health insurance underwriting process?
former residence
a producers license may only be suspended or revoked if the producer
has been afforded a right to a hearing
Employers often purchase life insurance on a key employee in order to
help offset the cost of finding and training a replacement if the employee dies
With life insurance, the needs approach is used primarily in determining
how much life insurance a client should apply for
A life insurance policy that contains an accelerated (living) benefit rider will provide funds if the
insured is expected to be confined to a nursing home for life
who is required to notify the producer in the event of appointment termination
insurer
An applicant for accident and heath insurance has a risk factor that is similar to a majority of the insurers other applicants. What will be the likely outcome of this applicant
issued with a standard premium rate
which of the following statements regarding hospital pre-admission authorization is NOT true?
it encourages weekend admission
During the early years of a whole life insurance policy, the cash value will normally be
less than the total premiums paid
which of the following is an example of defamation
making a statement that is false or maliciously critical of the financial condition of an insurer
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the
marital deduction
Greg applies for insurance and makes a false statement on the application that will influence whether or not the insurer will accept the risk. Greg's false statement is called a(n)
material misrepresentation
which of the following is NOT. a valid reason for an insurer to contest a life insurance policy during the policy first two years of existence
misstatement of age
James the producer has sold a life insurance contract to a client without using an illustration, even though his insurer offers one. For this particular transaction, the applicant
must sign a statement that no illustration was provided
during the sale of a life insurance policy, a producer may provide an incomplete illustration
never
At the beginning of January 1 2014, the restricted annual limit for plans under the Affordable care act will be
no limit
The disability income policy most likely to have been issued on a substandard basis is
non- cancelable with a health condition exclusion rider
In an individual retirement account (IRA), rollover contributions are
not limited by dollar amount
An insured is covered with a health insurance policy. If the insured would like to cancel the policy, he/she must
notify the insurance company in writing
An insurer may NOT refuse the renewal of a small employer health insurance plan because of
overuse of medical services
Why were Exchanges implemented by the Affordable Care Act (ACA)?
to create a one-stop market for standardized health insurance plans
Typically, states will permit the grouping of two or more small employers in the same industry for obtaining group health insurance at a favorable rate. This grouping of employers is known as a multiple employer
trust
a life insurance policy may ONLY be contested by the insurer during the first ___ years of the contract
two
Giving up a known right on a voluntary basis is called a(n)
waiver
which of the following best describes the presumptive disability provision
waives the typical totally disability requirements
During the application process, a statement made by an applicant that becomes part of the contract is considered to be a(n)
warranty
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employment
Medicare supplement insurance that provides a preventative medical care benefit will often cover
yearly physical examinations
in CT, a producer cannot use his/her license for primarily writing controlled business. In order to conform to this requirement, annual premiums collected on controlled business cannot exceed __ of total premiums
10%
Which life insurance policy provision allows a policyowner to cancel the policy and receive a full refund within a limited time period after policy delivery?
Free-look period
For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter
COBRA Laws
Which of these is true regarding the exchange of consideration among parties involved in an insurance contract
Can be unequal
Which of the following is considered a limited accident and health plan?
Cancer plan
Which of these may NOT be deducted from premium payments or the cash value of a variable life insurance policy?
Federal premium taxes
A family counseling benefit is typically offered under which of these coverages?
Hospice care
Some standard Medicare Supplement policies include which benefit?
Hospice care
Which of the following is NOT subject to the promise to pay in an insuring clause?
How the premium is calculated
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the insured?
Insured's estate
Which of these statements is NOT true regarding a cash value loan against a life insurance policy?
Interest payments made by policyowner are deductible
Which of these policies is considered to be a comprehensive health policy?
Major medical policy
Which of these is NOT used as selection criteria in the underwriting process of a life insurance application?
National origin
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons?
Net payment cost index
Karen is a health maintenance organization subscriber. Who provides all of her preventative and routine care?
Primary care physician
Which of the following does NOT fall under "hospital care" in a typical health maintenance organization plan
Private duty nursing
A Medicare Supplement policy is required to do which of the following?
Provide a 30 day free-look period
Ambiguities in insurance contracts are typically interpreted in favor of the insured. This rule is referred to as..?
Reasonable expectation
What is considered the accounting measurement of an insurance company's future obligations to its policyowners?
Reserves
How is a collateral assignment used in a life insurance contract?
Transfers specific ownership rights to a creditor
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued?
Under $50,000 initially, but increases over time
Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses
Which type of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?
Variable universal life