PASSED EXAM

What is the maximum amount a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practice may be fined in any 12 month period?

$100,000

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of a loss.

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

A full death benefit

The Director may waive the continuing education reporting requirements for any of the following, EXCEPT

A licensee age 65 or older.

Individual and group health policies in this state will cover which of the following procedures for women?

A mammogram every year for women age 50 and over

Who is a third-party owner?

A policyowner who is not the insured

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy.

All of the following are correct about the required provisions of a health insurance policy EXCEPT

A reinstated policy provides immediate coverage for an illness.

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim.

All of the following are legitimate reasons for a group health insurance policy nonrenewal EXCEPT

Any misrepresentation by the plan sponsor on the application for insurance.

Employer contributions made to a qualified plan

Are subject to vesting requirements.

Which of the following is true of benefits provided in a health insurance policy for insureds that are diagnosed with diabetes?

Benefits may be subject to deductibles and copayments not greater than those applied to any other covered illness.

In the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months?

COBRA

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?

Conditional

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

Consideration Clause.

Which of the following authorities is required to conduct a financial examination of the state's insurers?

Director

Social Security disability definition includes all of the following EXCEPT

Disability expected to last for at least 6 months.

What is the goal of the HMO?

Early detection through regular checkups

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False advertising

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?

Guaranteed insurability option

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term

An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?

Neither approved the application nor issued the policy

Premium payments for personally-owned disability income policies are

Not tax deductible.

What is a definition of a unilateral contract?

One-sided: only one party makes an enforceable promise.

Which of the following must be present in all Medicare supplement plans?

Plan A

Regarding the taxation of Business Overhead policies,

Premiums are deductible, and benefits are taxed.

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life.

Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT

Statements of the applicant are considered warranties.

Which of the following is NOT covered under Basic Hospital Expense Coverage?

Surgeons' fees

The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract.

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The beneficiary

A health policy will not terminate for a physically or mentally handicapped dependent upon that dependent's attainment of the limiting age only if which two conditions are demonstrated to the insurer?

The dependent's incapacity for self-sustaining employment and the dependent's reliance on the policyholder for support and maintenance

A man works for Company A and his wife works for Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim,

The insurance through his company is primary.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to

The insured.

Which of the following is NOT a feature of a guaranteed renewable provision?

The insurer can increase the policy premium on an individual basis.

Hospital indemnity/hospital confinement indemnity policy will provide payment based on

The number of days confined in a hospital.

What is the purpose of coinsurance provisions?

To help the insurance company to prevent overutilization of the policy

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A

What kind of policy allows withdrawals or partial surrenders?

Universal life

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as

Usual, customary and reasonable.

Which of the following products requires a securities license?

Variable annuity

Under what condition are group disability income benefits received by an employee NOT taxable as income?

When the benefits received are equal or less than the employee's percentage of the contribution.