Questions from ExamFX
What type of insurance would be used for a return of premium rider?
Increasing term
Restoring an insured financially after a claim is known as?
Indemnity
What best describes life annuity with period certain option?
It guarantees benefit payments for life of the annuitant and for a specified period for the beneficiary.
If a life insurance policy increases significantly in face amount when the insured reaches a specified age, what type of policy is this?
Jumping Juvenile policy
What happens to the face amount of a whole life policy if the insured reaches the age of 100?
The face amount is paid to the insured.
What is not a goal of risk retention?
The minimize the insured's level if liability in the event of loss.
What is true about partial disability benefits?
The partial disability benefit is typically 50% and is limited to a certain period of time.
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
What is the qualifications for producers who want to sell annuities in this state?
A life insurance license and a 4 hour training course.
Under the Health care false claims act, any person who makes false claims or conceals material information regarding a claim will be guilty of?
Class C felony
What is an example of a peril?
Fire
What is the major difference between a stock company and a mutual company?
Ownership
What is the specific dollar amount or percentage of the cost of care that must be paid by an HMO member?
Premium
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
The Federal Fair Credit Reporting Act, does what?
Regulates consumer reports
If an insurer purchases an insurance policy with a large deductible, what risk management technique is the insured exercising?
Retention
Before an insurer may transact business in this state, they must apply for a license or certificate of authority from the department of insurance and meet what requirements?
Solvency requirements
An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?
The PPO will pay reduced benefits.
When an agent is soliciting through an insurer, whose responsibility is it to determine that the insurer is authorized to transact business in this state?
The agent's
What happens if a non member physician is utilized under the point of service plan?
The attending physician will be paid a fee for service, but the member will have to pay a higher coinsurance amount.
What limits the amount the policy owner may borrow from a whole life insurance policy?
The cash value
When group insurance is provided by an employer, what is the minimum number of employees that must be covered on the date of issue?
2
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within?
90 days of a loss.
When does health coverage become effective?
When the first premium has been paid and the application has been approved.
Which of the following does the insuring clause not specify?
A list of available doctors.
What is not an example of a policy replacement?
A term policy being converted to whole life.
Which rider pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
An accidental death rider.
A business entity that wants to transact insurance business has one affiliated individual licensee. How many more does it need?
None
What is not allowed in credit life insurance?
The creditor requiring that a debtor buy insurance from a certain insurer.
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?
The date of medical exam
What is not true about credit life?
The insured names the beneficiary, this is not true.
What type of insurer uses a formal sharing agreement?
Reciprocal Insurers
Who can surrender a deferred annuity contract?
Only the annuity owner.
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
What type of group covers employees of the U.S government, or any state, or any political subdivision or instrumentality of any of them?
Public Employee Associations
What is not considered unfair discrimination by insurers?
Discriminating in benefits and coverage's based on the insureds habits and lifestyle.
An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation period. The beneficiary will receive?
$70,000 The beneficiary will receive the amount of premiums paid or the cash value, whatever is greater.
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly payments. What type of life insurance would be best suited for them?
A decreasing term policy, as the face amount decreases as the amount of debt is reduced.
What is not considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies.
A producer is selling a variable life insurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. What is this called?
Misrepresentation
A producer has established a separate account for premiums collected on life insurance policies sold by the producer. Who is entitled to the interest earned on the deposits in the separate account?
The producer
When are accelerated benefits considered tax free in a life insurance policy?
They are received tax free to terminally ill insured.
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract.
