Simulation test

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?

$50,000

An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?

$500

L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay?

$900 (deductible + 20% of the bill after the deductible [20% of $2,000])

When a hearing is scheduled, the Commissioner must give notice to all interested parties as to the time, place and purpose of a hearing within how many days of the hearing?

15 days

How long is the required free-look period for replacement policies?

20 days

In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?

45 days

How long must an insurer's advertisements be kept on file?

5 years

life insurance contracts in this state, dividend payments may be deferred for up to how many years?

5 years

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

90 days of a loss

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

A SEC registration

Which of the following is a feature of a disability buyout plan?

A lump-sum benefit payment option

Which of the following is NOT a possible punishment for a violation of general provisions of the Kansas Insurance Code?

A maximum fine of $10,000 for a willful violation

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

A portion of the benefit up to a limit is tax free; the rest is taxable income.

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.

The LEAST expensive first-year premium is found in which of the following policies?

Annually Renewable Term

In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT

Applicant's past income

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed

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

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of Adhesion

What is another name for interest-sensitive whole life insurance?

Current assumption life

All of the following are advantages of an HMO or PPO for a Medicare recipient EXCEPT

Elective cosmetic procedures are covered

An agent selling variable annuities must be registered with

FINRA

What does "level" refer to in level term insurance?

Face amount

Which of the following riders would NOT increase the premium for a policyowner?

Impairment Rider

All of the following are differences between individual and group health insurance EXCEPT

Individual insurance does not require medical examinations, while group insurance does require medical examinations.

A guaranteed renewable disability insurance policy

Is renewable at the insureds option to a specified age

Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy?

It begins when the policy is delivered

Which of the following is true about the mandatory 10-day free look in a Life Insurance policy?

It commences when the policy is delivered.

Which of the following statements is NOT true concerning Medicaid?

It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income.

Which of the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee.

If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following EXCEPT

Loss of the owner's income.

All individual and group health insurance policies providing medical, surgical, or hospital expense in Kansas, must provide reimbursement or indemnity for the treatment of alcoholism, drug abuse, or nervous or mental conditions. Such coverage may be limited to

Not less than 30 days per year when the person is confined in a properly licensed facility.

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

Medicare Part A services do NOT include which of the following?

Outpatient Hospital Treatment

Which of the following applies to partial disability benefits?

Payment is limited to a certain period of time

Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

Principal sum

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Respond to the consumer's complaint.

All of the following are considered unfair trade practices in the business of insurance EXCEPT

Sharing commissions

What is the best way to change an application?

Start over with a fresh application.

Which of the following would basic medical expense coverage NOT cover?

Surgeon's services

All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT

The employer can receive a current tax deduction for any contributions made to the plan

In which of the following situations would replacement rules apply?

The existing life insurance is converted into paid-up insurance.

Which of the following statements regarding the Change of Beneficiaries Provision is false?

The policyowner has the right to change beneficiaries in any case.

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract.

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

To renew the policy until the insured has reached age 65.

Which of the following is a key distinction between variable whole life and variable universal life products?

Variable whole life has a guaranteed death benefit.

Which of the following is considered a qualifying event under COBRA?

divorce

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

legal actions

Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives?

none

Children's riders attached to whole life policies are usually issued as what type of insurance?

term

All of the following are true regarding a decreasing term policy EXCEPT

the payable premium amount steadily declines throughout the duration of the contract