WFG Flash Study
In which of the following cases would an "any occupation" disability income policy pay the benefits?
The insured is unable to perform any jobs in the field related to the insured's education and experience.
In order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits?
60 days
The benefits for individual disability plans are based on
A flat amount.
Under an extended term nonforfeiture option, the policy cash value is converted to
A higher face amount than the whole life policy.
Which of the following would automatically qualify for Medi-Cal benefits?
A person receiving Supplementary Security Income assistance
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy.
When an annuity is written, whose life expectancy is taken into account?
Annuitant
An individual was involved in a head-on collision while driving home one day. His injuries were not serious, and he recovered. However, he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. Which method of risk management does this describe?
Avoidance
Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation
Be fined a sum of $1,000.
In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called?
Blackout Period
The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an
Blanket.
All of the following statements concerning dividends are true EXCEPT a. Lower insurance company costs generate higher dividends. b. They stem from favorable underwriting experience. c. Favorable investment results generate higher dividends. c Dividend amounts are guaranteed in the policy.
C
What required provision protects against unintentional lapse of the policy?
Grace Period
Which of the following policies is characterized by a provision where the premiums are lower in the early years of the policy and increase over time to a point where they become level for the remainder of the policy?
Graded Whole LIfe pre,ium
Maurice's health insurance plan covers practically all types of medical expenses. Maurice's insurer provides first-dollar coverage for basic benefits, but applies a deductible for major benefits and then pays 80/20 coinsurance. What type of coverage does Maurice have?
Comprehensive major medical
A Medicare supplement plan must have at least which of the following renewal provisions?
Conditionally renewable
The gatekeeper of an HMO helps
Control specialist costs.
Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service?
Copayment
Medical Savings Accounts (MSAs) are available to small business employees and self-employed individuals who have
High deductible health insurance.
All of the following statements concerning Accidental Death and Dismemberment coverage are correct EXCEPT
Death benefits are paid only if death occurs within 24 hours of an accident.
Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT
Declining applicant for a positive HIV test result.
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
Decreases
What is the term for a sales campaign conducted through the mail?
Direct Response
Which of the following is true regarding taxation of dividends in participating policies?
Dividends are not taxable.
Because of the history of cancer in her family, Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy?
Dread Disease Policy
A policy which covers medical costs related to a specific condition is called a
Dread Disease Policy.
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
Fixed period
What term refers to a listing of approved drugs covered by a Medicare prescription drug plan?
Formulary
Which of the following is true regarding a policy with a face value less than $10,000?
If it's returned during the free look period, the agreement will be void.
A Return of Premium term life policy is written as what type of term coverage?
Increasing
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 mode of premium payment
Is defined as the frequency and the amount of the premium payment.
What is NOT a benefit of a POS plan?
It allows guaranteed acceptance of all applicants.
Which of the following does NOT describe hospice care? a. It provides care to terminally-ill people. b. It provides care to people with life expectancies of 1 to 2 years. c. It provides continuous care. d. It provides care in a home-like setting.
It provides care to people with life expectancies of 1 to 2 years.
Which of the following is true regarding a single life settlement option?
It provides income the beneficiary cannot outlive.
An insurer received a claim on May 1st. On May 31th, the claim was approved in its entirety. By what date can the claimant expect the payment?
June 30th
The growing tendency of individuals to file lawsuits and to claim tremendous amounts for alleged damages is known as
Legal hazard.
To sign up for a Medicare prescription drug plan, individuals must first be enrolled in
Medicare Part A.
In health underwriting, it would be inappropriate to decline a risk using any of the following factors EXCEPT
Mental Illness
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One-year term option.
Which of the following is the most common time for errors and omissions to occur on the part of an insurer?
Policy Delivery
What describes the specific information about a policy?
Policy Summary
An applicant for health insurance has not had a medical claim in 5 years. He exercises daily and does not smoke or drink. What classification do you assume the applicant would receive from his insurer?
Preferred
A life insurance policy can be delivered by all of the following means, EXCEPT
Priority mail.
Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization?
Provide medical services only from physicians on the network
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
All the factors are FALSE when used to provide data and statistics to an insurer in order to project losses and the subsequent cost of insuring risks in a group disability policy, EXCEPT
Stability, Price, Longevity with a particular carrier.
When an employee covered under a health reimbursement account changes employers, the HRA
Stays with the employer.
The Health Insurance Counseling and Advocacy Program is administered by
The California Department of Aging.
Which of the following entities may NOT be an insurer?
The Commissioner
An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?
The Medical Information Bureau
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person.
Which of the following statements is NOT true about contributory group life insurance?
The employer will make a cash contribution to the estate of a deceased employee.
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
In terms of parties to a contract, which of the following does NOT describe a competent party?
The person must have at least completed secondary education.
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account.
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
Which of the following is true regarding METs?
They allow several small employers purchase less expensive insurance together.
Medi-Cal may be available to persons over age 65 if
They have medical or long-term care claims not paid by Medicare.
The purpose of having an elimination period in a policy is to accomplish which of the following? a. To allow the client some flexibility in determining their own premium b. To allow the insured time to save up the initial premium charged when they receive a premium rating. c. To allow the insurer to do an in-depth background check on ethnic groups which pose an enhanced risk prior to issuing a policy. d. To assure that claims are not paid until an investigation can be done to assure the claim is valid and covered by the policy.
To allow the client some flexibility in determining their own premium
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
Unilateral
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?
Withdrawals are not taxable.
An individual's tendency to be dishonest would be indicative of a
moral hazard
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
paid up additions
Which of the following is NOT provided by an HMO?
reimbursement
What type of account will most likely be established for a minor?
trust