Test Questions Missed #3

Oliver has a Life policy with a provision that states he can be paid an amount that does not exceed its guaranteed cash value. What provision does this describe? A. Policy Loan Provision B. Consideration Provision C. Indemnity Provision D. Automatic Premium Loan Provision

A. Policy Loan Provision

When must a LTC Outline of Coverage be provided to an applicant? A. Application time B. Solicitation time C. Premium due date time D. Pre-existing condition time

A. Application time

What must be on the first page of a Medicare Supplement policy that gives an insurer the right to change their premium amounts? A. Continuation Provision B. Excessive Benefits Provision C. Outline of Coverage Provision D. Medicare Select Provision

A. Continuation Provision A Continuation or Renewal Provision must be on the first page of a Medicare Supplement to explain premium changes.

A third party ownership would be which of the following? A. Group insurance B. MEC C. Collateral Assignment D. Nonqualified Exchange

A. Group insurance

Which annuity guarantees income to an annuitant as long as he or she lives, and upon their death refunds their beneficiary their remaining payments? A. Installment Refund Annuity B. Variable Annuity C. Cash Annuity D. Multiple Life Annuity

A. Installment Refund Annuity An Installment Refund Annuity guarantees to pay the total to an annuitant while living, and refund the remaining payments to their beneficiary.

William has an annuity that will pay him periodic income benefits that will begin more than one year from the issue date of the annuity. What annuity does William have in his possession? A. Immediate B. Deferred C. Single D. Whole

B. Deferred

P&P Company is an insurer who issued a policy to be replaced. What type of insurer is P&P? A. Replacing B. Existing C. Proposed D. Provisional

B. Existing

How does reinsurance benefit the insurer? A. It offers a way to differentiate policies B. It helps protect against catastrophic losses C. Reinsurance frees the insurer of all liabilities D. With reinsurance, premiums are higher

B. It helps protect against catastrophic losses

Which of the following people would receive a commission from the sale of a policy? A. The consultant who found the agent for the client B. The agent who took the client's application C. A retired agent who recommended the client to the agent D. One of the agent's clients who referred the customer

B. The agent who took the client's application

A life insurance application is the main source for which of the following? A. Estate protection B. Adverse Selection C. Underwritng D. Disclosure

C. Underwritng

What term applies to a producer replacing an insurance policy from one insurer to another based on a misrepresentation? A. Churning B. Twisting C. Defamation D. Commingling

B. Twisting Twisting is a term that applies to a producer that replaces an insurance policy from one insurer to another based on a misrepresentation.

Which of the following is false about the Living Needs Rider? A. It provides funds for Nursing Home expenses B. It helps pay for Medical costs C. An insured with this rider is expected to die within 3 years D. An insured will be terminally ill

C. An insured with this rider is expected to die within 3 years

Fred, a 58 year old, has a Modified Endowment Contract and he wants to withdraw some money to pay for his son's education. Which of the following will apply to Fred? A. He will not be able to withdraw money for education B. He will not be able to withdraw money for any purpose C. He will have to pay a 10% penalty D. He will have to pay a 10% penalty and a 10% surcharge

C. He will have to pay a 10% penalty

Which mode results from the highest overall cost? A. Annually B. Semi-annually C. Monthly D. Quarterly

C. Monthly

If an employer offers Short Term Disability benefits to an employee, what is the shortest elimination period their employee can expect? A. 10 days B. 20 days C. 14 days D. 0 days

D. 0 days An employer does not need to require an elimination period.

One of the essential health benefits for consumers is the benefit of an emergency service. Which of the following is a false characteristic of an emergency service? A. No prior authorization required B. In or out of network insurers may be utilized C. Out of network providers must comply with the normal cost sharing requirements D. A formulary of services is required

D. A formulary of services is required

Ted offered something of value in return for his friend to purchase an insurance policy from him. What prohibited sales practice took place? A. There was no violation of the law B. Twisting C. Churning D. An inducement

D. An inducement An inducement used to coerce someone to purchase an insurance policy is an illegal act.

Discouraging policyholders from dropping their existing policies, relates best with which of the following terms? A. Twisting B. Unfair Practice C. Discrimination D. Conservation Effort

D. Conservation Effort

Jay is not sure he wants to keep his Medicare Plan. He received it on May 1st. What is the latest date he can return it without a penalty? A. June 30th B. July 30th C. May 11th D. May 31st

D. May 31st A Medicare Plan has a 30 day Free Look period.