Stimulated ExamFx
in a replacement situation, all of the following must be considered except
assets
Which of the following is true about the requirements regarding HIV exams?
the applicant must give prior informed written consent
the coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called
nonoccupational coverage
Who is the owner and who is the beneficiary on a key person life insurance policy?
the employer is the owner and the beneficiary
which of the following statements is true regarding coinsurance?
the larger the percentage that is paid by the insured, the lower the lower the required premium will be
which of the following is true regarding elimination periods and the cost of coverage
the longer the elimination period, the lower the cost of coverage
An employee insured under a group health plan has been paying $25 monthly premium for his health coverage. The employer has been contributing $75 for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for cobra coverage
. $102
If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?
0%
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
interest only option
the policyowner wants to make sure that upon his death the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. which settlement option should the policyowner choose
interest only option
regarding the free look provision, the insurance company
must allow the policyowner to return the policy for a full refund
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant
premium receipt
whose responsibility is it to determine if all of the questions on an application has been answered
the agent
which of the following is not a feature of a noncancellable policy
the insurer may terminate the contract only at renewal for certain conditions
on a health insurance application, a signature is required from all of the following individuals except
the spouse of the policyowner
Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?
they can be changed only with the written consent of that beneficiary
Which provision states that the insurance company must pay medical expense claims immediately?
time of payment of claims
An insured had a $10,000 term life policy. The annual premium of $200 was due on feburary 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy.
$9,800
COBRA applies to employers with at least
20 employees
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray
50/50
which two terms are associated directly with the way an annuity is funded?
single payment or periodic payments
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
which of the following types of LTC is not provided in an institutional setting
home health care
all of the following are nonforfeiture options except
interest only
an insured decides to surrender his $100,000 whole life policy. the premiums paid into the policy added up to $15,000. at policy surrender, the cash surrender value was $18,000. what part of the surrender value would be income taxable
$3,000
An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductible how much will the excess plan pay?
$5,000
l has a major medical policy with a $500 deductible and 80/20 coinsurance. l is hospitalized 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))
A deductible is
. a specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits
who can make a fully deductible contribution to a traditional IRA
an individual not covered by an employer-sponsored plan who has earned income
who is a third party owner
a policyowner is not the insured
the probationary period is
a specified period of time that a person joining a group has to wait before becoming eligible for coverage
All other factors being equal, the least expensive first-year premium payment is found in
annually renewable term
when an annuity is written, whose life expectancy is taken into account
annuitant
An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?
application
which of the following would be the basic source of information used by the company in the risk selection process
application
the premium charged for exercising the guaranteed insurability rider is based upon the insured's
attained age
an insurance contract must contain all of the following to be considered legally binding except
beneficiary's consent
Which of the following is a feature of a variable annuity.
benefit payment amounts are not guaranteed
What license or licenses are required to sell variable annuities
both a life insurance license and a securities license
A small hardware store owner is involved in a car accident that renders him totally disabled for a year. Which type of insurance would help him payment for expenses of the company during the time of his disability.
business overhead expense policy
representations are written or oral statements made by the applicant that are
considered true to the best of the applicant's knowledge
what is the main difference between coinsurance and copayments
copayment is a set dollar amount
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as
critical illness
a partnership buy sell agreement in which each partner purchases insurance on the life of each of the other partners is called a
cross purchase plan
Which of the following is not typically excluded from life policies
death due to plane crash for a fare paying passenger
Long term care coverage may be available as any of the following options except
endorsement to a health policy
Who makes up the medical information bureau?
insurers
an annuity owner is funding an annuity that will supplement her retirement. because she does not know what effect inflation may have on her retirement dollars. she would like a return that will equal the performance of the standard and poor's 500 index. she would likely purchase a(n)
equity indexed annuity
Item stipulated in the contract that the insurer will of provide coverage for are found in the.
exclusions clause
In the executive bonus plan, who is the owner of the poicy, and who pays the premium
executive is the owner, and the executive pays the premium
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
fixed amount
which is true about the cash surrender nonforfeiture option
funds exceeding the premium paid are taxable as ordinary income
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
a guaranteed renewable disability insurance policy
is renewable at the insured's option to a specified age
What is the purpose of a free-look period in insurance policies
it allows the insured to reject the policy with a full refund
Which of the following is true about the mandatory free look in a life insurance policy
it commences when the policy is delivered
Which of the following best describes the MIB?
it is nonprofit organization underwriting information on applicants for life and health insurance
which of the following is incorrect concerning Medicaid
it is solely a federally administered program
which of the following statements is true concerning the accidental death rider
it will pay double or triple the face amount
the type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
joint and survivor
which law was passed to authorize the NAIC develop a standardized model for medicare supplement policies
obra
a rider attached to a life insurance policy that provides coverage on the insured's family members is called the
other insured rider
which of the following factors determines the amount of each installment paid in a life income option arrangement
recipient's life expectancy and amount of principal
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid-up
Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?
residual disability
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy
return of premium
Which of the following determines the length of time that benefits will be received under the fixed amount settlement option?
size of each installment
which of the following policies would be classified as a traditional level premium contract
straight life
Which of the following would an accident only policy not cover?
surgery to repair a wrist damaged by tendonitis
Which of the following is true for both equally indexed annuities and fixed amounts
they have a guaranteed minimum interest rate
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
those who have been insured under the plan for at least 5 years
an absolute assignment is a
transfer of all ownership rights in a policy
which of the following products requires a securities license
variable annuity
how soon following the occurrence of a converted 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 to exceed 1 year
an employee is injured in a construction accident, rendering him unable to work for a year. which of the following plans would provide him with medical expense coverage and income assistance
workers compensation
when delivering a policy, which of the following is an agent's responsibility
collect payment at time of delivery (if payment has not already been collected)
how many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state
12
What is a penalty tax for nonqualified distributions from a health savings account?
20%
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
All of the following are personal uses of life insurance except.
buy-sell agreement
the insurance policy, together with the policy application and any added riders form what is known as
entire contract
what type of insurance would be used for a return of premium rider
increasing term
the medical information bureau was created to protect
insurance companies from madverse selection by high risk persons
which settlement option allows the insurer to retain the face amount but pay some based on gain on the proceeds to the beneificiary at regular intervals
interest only
prior to purchasing a medigap policy, a person must be enrolled in which of the following
parts A and B of medicare
which of the following would be accident only policy not cover
surgery to repair awrist damaged by tendonitis
which of the following is true about the requirements regarding HIV exams
the applicant must give prior informed written consent
If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?
the balance of the loan will be taken out of the death benefit
if a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back
the balance of the loan will be taken out of the death benefit
Which of the following is an example of liquidity in a life insurance contract
the cash value available to the policyowner
Which of the following statements concerning group health insurance is correct?
the employer is the policyholder
which of the following statements concerning group health insurance is correct
the employer is the policyowner
an employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. this reults in a long hospitalization period. which of the following is true?
the group plan will not pay because the employee was injured at work
the policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as
the policy contains sufficient cash value to cover the cost of insurance
if an insurer issued a poicy based on the application that had unanswered questions, which of the following will be true
the policy will be interpreted as if the insurer waived its right to have an answer on the application
an applicant for an individual health policy failed to complete the application property. before being able to complete the application and pay the initial premium, she 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 is correct concerning the taxation of premiums in a key-person life insurance policy?
premiums are not tax deductible as a business expense
the insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. what should the insurer do with the application
return to the applicant for completion
The premium paid by the employer in a business life insurance policy are.
tax deductible by the employer
who is the owner and who is the beneficiary on a key person life insurance policy
the employer is the owner and the beneficiary
which option is being utilized when the insurer accumulation dividends at interest and then uses the accumulated dividends, plus interest and the policy cash value to pay the policy up early
paid up option
all of the following long-term care coverages would allow an insured to receive care at home except
skilled care
