questions&answerstinacao
Guaranteed insurability option
If Tom's policy allows him to make periodic addictions to the face amount at standard rates, without proving insurability his policy includes a
Wither the amount paid into the plan or the cash value of the plan, whichever is the greater amount
If an annuitant dies before annuitization occur, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount.
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Charge an extra premium
If an application for a health insurance policy is found to be a substandard risk, the insurance company is most likely to
A
If an insurance company offers Medicare supplements policies, it must offer which of the following plans?
the policy will not lapse since payment to the agent is the same as a payment to the insurer.
If an insurance premium is paid by the policy owner to the agent fails to remit that premium to the insurer, which of the following statements are true
For trustee to trustee
In a direct rollover, how is the money transferred from one plan to the new one?
Assets
In a replacement situation, all of the following must be considered EXCEPT
Annuitization period
In an annuity, the accumulated money is converted into a stream of income during which time period?
Company
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
Mental illness
In health underwriting, it would be inappropriate to decline a risk using any of the following EXCEPT
All provides will have the same coverage options and conditions for each plan.
In reference to the standard Medicare Supplement benefits plans, what does the term "standard" mean?
A discounted premium would be charged.
In underwriting a substandard risk, Which of the following is INCORRECT?
In an institutional setting
In which of the following locations would skilled care most likely be provided?
5 YEARS
Insurer examinations must occur no less frequently than every
Fully insured
Jane is eligible for full death, retirement,and disability benefits under Social Securities. Her worker status with Social Security is
Nothing, due the insured's reaching the maximum age.
Jason's employer provides a group life plan for his employees. It is $50,000 of term to age 65. When Jason was hired 10 years ago an told his employer he was 50, when in fact he was 56 years old. Jason died last week. His beneficiary will receive
For increased pension liability resulting from a key person death.
Key person life insurance does NOT reimburse a company for which of the following?
Income for 2 or more recipient until they die
Life income joint and survivor settlement option guarantees
The guardian may or may not be accountable for assets
Life insurance benefits for minors must be placed in the hands of either a guardian or a trustee. Which of the following is true?
Only the premium paid will be included in her estate
Melanie pays only part of her total number of IRA premiums before she dies. her daughter wants to know what effect this will have to her estate?
Gross premium
Mortality - Interest + Expense =
Jumping juvenile policy
Paul is the policy of a life insurance policy which increase significantly in face amount ( death benefit )
The entire face value of the policy will be included in Randy's taxable estate.
Randy transfers his life insurance policy to his son Andy two years before Randy's death. Which of the following is true?
Rises
Regarding LTC benefit periods, as the benefit period lengthens, the premiums
The PPO will pay reduced benefits.
Ron joins the PPO that is provided by his employer. If Ron decides to go to a physician who is not a PPO provider, which of the following will happen?
Other insures.
The MIB helps insurers compare medical information they have collected on a potential insured with
Becomes terminally ill
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Funding against general company financial loss
The following are legitimate uses of insurance in a business settling EXCEPT
100,000
The most the Insurance Guaranty Association will pay for net cash surrender value is
Entire Contract
The policy, in combination with the application, is joined together into one entity called the
Have a limited pay policy
The policyowner of an Adjustable Life policy can increase premium payments and
Entire contract
The provision which states that both the printed contract and a copy of the application for the contract between the policyowner and the insurer is called
Promote the public welfare
The purpose of insurance regulation is to
Waiver of premium
The ride that allows the company to fogo collecting the premium if the insured is disabled is called
An individual variable life policy
To which of the following policies would the State regulation on illustrations NOT apply?
3
Under SIMPLE plans, participating employees may defer up to a specified amount each year
Nonscheduled
Under which plan does preventative dental treatment not apply toward the deductible?
Issue a policy that would insure a pending loss.
Underwriters review applications for insurance and the information contained therein so as to NOT
Attending Physician's Statement
What document an insured's medical history, including diagnoses and treatments?
It allows guaranteed acceptance of all application
What is NOT a benefit of a POS plan?
36 months
What is the maximum period of coverage under COBRA?
To keep the policy in force
What is the purpose of establishing the target premium for a universal life policy?
It is intended to provide coverage on a date earlier than the date of the insurance of the policy
What is the special significance of a conditional receipt?
The exclusion ratio
What method is used to determine the taxable portion of each annuity payment?
Free-Look Period
What phase begins after a new policy is deliver?
Spendthrift provision
When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years
Purchase a single premium policy for a reduced dace amount
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Consider decreasing the premium
When ken purchased his health policy he was a window washer. He has changed occupations and now manages a library. Upon notifying the insurer of his change of occupation, the insurer should
Option A
Which Universal Life option has a gradually increasing cash value and a level data benefit?
Producer B writes a group policy covering a large hospital where his wife is the comptroller. Receiving 27% commission
Which of the following cases would constitute a violation of Louisiana Controlled Business Statue?
Size of each installment
Which of the following determines the length of time that benefits will be received under the Fixed Amount settlement option?
23
Which of the following employee group sizes would qualify for a medical saving account?
Some insurers base their interest rate on the estimated market conditions for the life of the policy
Which of the following is NOT a way to determine the interest rate in a Universal Life Policy
Only written statements can be considered fraud.
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?
The deduction is permitted only if the sole proprietor or partner is covered under another medical expense plan.
Which of the following is NOT true of the tax deductibility of medical expense coverage for sole proprietors and partners?
An insured must notify the insurer of a claim on forms prescribed by the insurer.
Which of the following is NOT true regarding uniform mandatory provisions concerning claims?
promptly forwarding premiums to the insurance company
Which of the following is an example of an agent's fiduciary responsibilities?
The agent accepts a premium payment after the end of the grace period
Which of the following is an example of apparent authority?
Federal Deposit Insurance Corporation ( FDIC )
Which of the following is not a government insurance program?
Purchase insurance
Which of the following is the most common way to transfer risk?
They may be subject to taxation if the premium was paid by the employer.
Which of the following is true regarding benefits paid to disabled employees?
Conversion provision
Which of the following provisions give an employee the right to exchange group insurance for an individual policy within 60 days from the group insurance?
Payment of Claims
Which of the following provisions would prevent an insurance company from paying a reimbursement clean to someone other than the policyholder?
Payor Benefit Rider
Which of the following riders would NOT cause the Death benefit to increase?
It pays for physician services, diagnostic test, and physical therapy
Which of the following statements concerning Medicare Part B is correct?
It requires all employer, regardless of the number or age employee to provide extend group health coverage.
Which of the following statements is NOT correct concerning the COBRA Act of 1985?
It consists of 3 parts: Part A,B,C
Which of the following statements is NOT true concerning Medicaid?
HMOs may pay for services not covered by Medicare, such as prescriptions or eye exams.
Which of the following statements is correct?
A combination plan is basically a combination of a scheduled and nonscheduled dental plan
Which of the following statements is true of a Combination Dental plan?
Interest Only
Which option allows the insurer to retain policy proceeds and pay interest on the proceeds to the beneficiary at regular intervals?
Its premium steadily decreases over time, in response to its growing cash value.
Which statement is NOT true, regarding a Straight Life policy?
Adverse Selection
Which term describes the phenomenon that people who are the most likely to have claims are also the most likely seek insurance?
The individual member
Who chooses a primary care physician in HMO?
The lending institution
Who is the beneficiary in a credit health policy?
To purchase a smaller amount of the same type of insurance as the original policy.
the paid-up addition option uses the dividend
Immediate
what type of annuity can be purchased with a single premium and provides benefit payments immediately?
12 months
when a group health insurance plan is terminated, how long is an extension of benefits provided for any totally disabled employee or dependent?
The individual member
who chooses a primary physician in HMO?
An age-based penalty will be imposed for withdrawing the annuity.
A 56-year-old annuitant decides to withdraw all the money from the annuity before he retires. Which of the following is correct?
A benefit for each day the insured is in a hospital
A hospital policy will pay
6 Up to 6 hours of life and health and accident instruction can carry over from one renewal period to another
A life insurance agent took 32 hours of classes while fulfilling her continuing education requirements. How many of the excess hours next renewal period?
Usual, customary, and reasonable
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of the training and experience in that geographic area is known as
Automatic Premium Loan
A policy owner fails to pay the premium due on his whole life policy after the grace passes, but the policy remains in force. The is due to what provision?
Return the policy to the insurer
Agent D submitted an application for life insurance on client A. No money was sent with the application. When Agent D attempted to deliver the policy, he discover the A had suffered a heart attack since the application was taken. The agent should
The planned premium pays for mortality charges and expenses and any excess is returned to the policyowner.
All of the characteristics of a Universal Life Policy EXCEPT
Low maximum limits
All of the following are characteristics of Major Medical Expense policy EXCEPT
Policy loan can be made on policies that do not accumulate cash value.
All of the following are true regarding insurance policy loans EXCEPT
When the employer chooses to renew the plan.
All of the following cases show when a Small Employer Medical plan cannot be renewable EXCEPT
Fixed
Aman wants to buy a life insurance policy in which he can count on guaranteed minimum benefits. Which type should he buy?
Pay a lower renewal premium by proving insurability
An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a reentry provision. The reentry provision would allow the insured to renew the policy and
prior authorization
An insured is scheduled to have two cavities filled. He knows in advance what benefits will be paid for the procedure. Which clause is responsible for the advanced notification?
It is used to lower premiums
An insurer invest the money it receives from premium paid by its insureds. Which of the following is true regarding the interest earned on these investments?
illegal under any circumstances
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professional unstable.
Attending Physician Statement
An underwriter must review an application with a extensive medical history. Which document would give the underwriter a better understanding of the illness?
Attending Physician Statement
An underwriter review an applicant with a extensive medical history. Which document would give the underwriter a better understanding of how the insured was treated for various illness?
25,000
Andy the producer violates the Insurance Code very intentionally, in order to substantially increase his commissions. How much would he be penalized?
The capital amount in a lump sum
Anna loses her left in an accident that is covered by her Accidental Death and Dismemberment policy.
Guaranteed insurability option
At the time Molly purchased her life insurance policy, she added a rider will allow her to purchase additional insurance is called
