Questions from phone app
statements made by the applicants for insurance policies that are true to the best of their knowledge are known as
disclosures
which of the following is considered the nontaxable return of unused premiums
dividend
what is the goal of an HMO
early detection through regular checkups
which of the following is not a type of hazard
exposure hazards are classified as physical, moral, and morale
what is the default non forfeiture option when the policy owner neglects to select an option
extended term this option maintains the same death benefit for the beneficiary, but the coverage is for fewer years
which non forfeiture option allows a policyowner to use the existing cash value to purchase a policy of the same face amount as the original policy for as long as the policy will buy
extended term insurance the non forfeiture option that results in a paid up policy with the same face amount as the original policy is the extended term option
an individual wants to buy life insurance policy in which he can count on guaranteed minimum benefits. which of the following types of insurance would best suit his needs
fixed
what is not a policy dividend option
fund the distribution of periodic income payment what is an option apply the dividend toward paying the current premium purchase 1 year term insurance purchase paid up additions to the policy
in iowa, medicare supplement insurance policies must be insured as what type of policy
guaranteed renewable
which of the following best describes the agent's fiduciary responsibility
handling insurer funds in a trust capacity
events or conditions that increase the chances of an insured loss occurring are referred to as
hazards
under the terms of the 10 day free look period, a claim will be paid
if the premium has been paid and the policy has not been returned
under which of the following conditions would life insurance proceeds be taxable by the federal government
if there is a transfer for value
under which of the following conditions would life insurance proceeds be taxable by the federal gov
if there is a transfer of value
which of the following riders would not increase the health policy premium for the policy owner
impairement rider
medicaid provides all of the following benefits except
income assistance for work related options does provide family planning services home health care services eyeglasses
which of the following is not a feature of a whole life policy
increasing premium whole life policies provide permanent protection build cash value and offer non forfeiture values. The premium, however,remains level for the life of the policy.
when agents are acting within the scope of their contract, their actions will be assumed to be the acts of the
insurer while acting within the authority of he contract given by the insurer, the acts of an agent/producer are considered to be the acts of the insurer
which of the following entities has the authority to make changes to an insurance policy
insurer's executive office
the section of the health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
insuring clause provision on the first page of the policy that states the coverage and when it applies
a guaranteed renewable disability insurance policy
is renewable at the insured option to a specified age
how does the incontestability clause benefit the insured
it prevents the policy from being cancelled if, after several years, it is discovered that there was a misrepresentation by the policy owner
a beneficiary decides to take a settlement option that will pay the largest amount per payment, knowing that after the beneficiary death no monies will be paid out to any descendants. The settlement option is
life income (straight life) the life income settlement option pays the beneficiary an income until his or her death. Since no further payments will be made to survivors, the insurer can afford to pay a larger income versus the other options given
rank from lowest to highest the amount of monthly income that would result from the following annuity settlement options
life with refund option, life with 10 years certain, straight life. the larger the guarantee of payments or returned monies, the lower the guaranteed income. the more risk the annunit takes during the annuity period, the higher the monthly income
which of the following is the default settlement option for life insurance policy proceeds
lump sum if the policy owner or the beneficiary hasnt preselected the method of payment of claims, the automatic mode of settlement is cash in a single lump sum payment
unfair trade practices
making maliciously critical statement about the financial condition of another insurer misrepresentation pertinent facts about coverage offering special favors not specified in the policy Not: discriminating against a group of individuals because they resent a poor risk
under the ACA, which classification applies to health plans based on the benefits and the amount of covered costs
metal level classification plans are classified into 4 metal level determined y how much of a persons expected health care costs are covered. The plans are bronze, silver, gold, and platinum
disregarding all other variables, rank the initial premium paid by the insured for the insurance policies listed below from lowest to highest
modified whole life, ordinary whole life, single premium whole life modified allows the insured to pay a lower premium than traditional/ordinary for the first few years.
under individual disability income policy, the MINIMUM schedule for payment of benefits to the insured is
monthly
an insurance company that is owned by the policyholders is called
mutual insurer
premium payments for personally owned disability income policies are
not tax deductible
under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
nothing; the payments will cease this payment will cease at death, regardless of the amount of principal that hasn't been paid out
each individual and group health insurance policy must provide coverage for low dose screening mammograms for determining the presence of breast cancer. how must coverage must be provided for women age 40 to 49
one biennial mammogram
which statement best describes "agreement" as it relates to insurance contracts
one party accepts the exact terms of the other party's offer
an insured had paid only part of her total number of IRA premiums before she died. What effect will this have on the insured's estate
only the premiums paid will be included in the estate
which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insured
optionally renewable
an individual owns a participating whole life policy and uses her policy dividends to buy more of the same type of coverage to herself. she has chosen the
paid-up additions option paid up additions are the same type of insurance as the base plan
which of the following reasons for an early distribution of funds from a qualified retirement plan would incur a 10% penalty
participant's debt
all of the following are covered under part a except
physician services are covered hospitilizations skilled nursing facilities hospice care
in iowa, which of the following provisions is not required to be included on the first page of medicare supplement policy
pre existing conditions limitations
all of the following are examples of risk retention except
premiums
which is NOT consideration on the part of the insured
promise to submit timely claims
which of the following is not consideration on the part of an insured
promise to submit timely claims
what is the main purpose of insurance regulation
protect the public
which of the following would be most likely to start a tax-sheltered annuity
public school teachers a tax sheltered annuity is a special tax favored retirement plan available only to certain groups of employees, such as nonprofit, educational, religious, etc
an agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. the agent is guilty of
rebating
when an applicant makes a material statement on the insurance application, the statement is considered to be a
representation
ltc coverage may be provided by each of the following EXCEPT
rider to medicare
an annuity would normally be purchased by an individual who wants to
secure income for retirement
what type of plans are HMO
service
an individual receives a lumpsum inheritance. he'd like to use the money to create a lifetime income since he will be retiring soon. he purchases an annuity and wishes to receive payments beginning in two months. what'd be buy
single premium immediate annuity
which benefit is based on the persons primary insurance amount (PIA)
social security disability
an applicant buys a non qualified annuity, but dies before the starting date. for which of the following beneficiaries would the contract's interest not be taxable
spouse
which of the following may not be included in an insurance company advertisement
stating that the insurers policies are covered by the state guaranty association
an insured has endured multiple surgeries and hospitalizations for an illness during the summer months. her insurer no longer bills her for medical expenses what term best describes the condition she has met
stop loss limit
an insurer is issued a cease and desist order for misrepresentation. what is the insurer required to do to comply with the order
stop the action in violation cease and desist order means that the person must stop the improper action in violation
a group blanket health policy is best suited to cover
students in a public school group blanket health insurance policies are meant to cover members of a group or association without evidence of insurability. coverage is usually limited to loss from specific causes
which of the following best describes taxation during the accumulation period of an annuity
taxes are deferred the interest accumulated in an annuity is the tax base, but the taxes are deferred during the accumulation period
a 403(b) tax sheltered annuity is available for
teachers and nonprofit organizations
example of apparent authority
the agent accepts a premium payment after the end of a grace period
for the purpose of insurance, risk is defined as
the chance of loss
which of the following statements concerning group health insurance is correct
the employer is the policy owner the employer receives the master policy; each employee receives a certificate of insurance. all employees have the same coverage under the master contract
which of the following best represents what is meant by life insurance creates an immediate estate
the face value is payable to the beneficiary upon he death of the insured
in a group policy, who receives a certificate of insurance
the individual insured
a person is enrolled in part a of medicare and not part b. three months into coverage, he applies for a medicare supplement policy.
the insurer may deny coverage
a person enrolled in part a of medicare and not part b. three months into coverage, he applies for medicare supplement policy. which of the following is true
the insurer may deny coverage the insured must be enrolled in both A & B to qualify for open enrollment for medicare supplement plans
which of he following is not characteristic of insurable risk
the loss must be catastrophic
which of the following is NOT covered under plan a in medigap insurance
the medicare part a deductible
in an adjustable life policy all of the following can be changed by the policy owner except
the type of investment
which of the following is true regarding taxation of accelerated benefits paid under life insurance policy
they are received tax free
what is the purpose of settlement options in life insurance
they determine how death proceeds will be paid settlement options are methods used to pay the death benefits to a beneficiary upon the insured's death or to pay the endowment benefit if the insured lives to the endowment date
which provision states that the insurance company must pay medical expense claims immediately
time of payment of claims
what is the purpose of the agent's report in the application process
to provide additional information about the applicant to the underwriters
an agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a lfie insurance policy has committed an illegal practice known as
twisting
which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another
twisting
which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another
twisting twisting is the misrepresentation that persuades an insured to his or her detriment, to cancel, lapse, or switch policies from one to another
which of the following statements regarding BOE are not true
usually limited to 6 months
how soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company
within 90 days or as soon as reasonably possible, but not exceed 1 year
how is the state insurance guaranty association funded
by its members - authorized insurers
insured received $50,000 from a $100,000 AD&D policy as a result of the loss of an arm. this benefit is considered
capital sum
in any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
company an agents license authorizes him or her to represent an insurance company, not the insured
a health insurance plan that covers all accidents and sickness that are not specifically excluded from the policy is referred to as
comprehensive plan
if $100,000 of life insurance proceeds were used in a settlement option that paid $13,000 per year for 10 years, which of the following would be taxable annually
$3,000 in this settlement arrangement, $10,000 per year would be income tax free (as principal) and $3,000 per year would be income taxable (as interest)
if an employer provider LTC group disability insurance for its employees, what percentage of monthly wages are lower-paid employees eligible to collect
66 2/3%
how can long term care benefits be received tax free by an individual
LTC benefits are always received tax free
when insurer negotiate contracts with health care providers or physician to provide health care services to subscribes at a favorable cost, it is called
PPO
the advantage of a qualified plans to employers is
Tax-deductible contributions
who acts on behalf of the principal
agent
which of the following is not a personal use of life insurance
an individual buys insurance to fund a buysell agreement
who can make a fully deductible contribution to a traditional IRA
an individual under the age of 70 1/2 who has earned income
if an insurer makes a statement that its policies are guaranteed by the existence of the insurance guaranty association, that would be considered
an unfair trade practice
which type of authority is based on the actions or words of the agent
apparent apparent authority is the appearance or the assumption of authority based on the actions, words, or deeds of the agent
employer contributions made to a qualified plan
are subject to vesting requirements
a universal life policy may be surrendered for its cash value
at any time
a life policy contains a guaranteed insurability ride. when can the policy owner purchase additional insurance on the policy
at specified ages or dates without evidence of insurability
which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse as long as there is cash value
automatic premium loan option
which of the following is not true regarding an annuity certain
benefits stop at the annuitant's death
