Xcel Nevada Final Exam

P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax? $20,000 $14,000 $6,000 $0

$0

When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? Relation of earning to insurance provision Change of occupation provision Conformity of state statues provision Entire contract provisions

Change of occupation provision

Which rider provides coverage for a child under a parent's life insurance policy? Suppose term rider Base insured rider Payor benefit rider Child term rider

Child term rider

What type of employee welfare plans are not subject to ERISA regulations? Church plans Major medical plans Corporate Qualified plans

Church plans

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? Claim will be denied Claim will be paid in full Claim will be partially paid Claim will be decided by an arbitrator

Claim will be denied

P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? Claim will be denied and policy terminated Claim will be partially paid Claim will be paid Claim will be denied

Claim will be denied

How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? Claims are denied under the Suicide clause of the policy Company pays twice the face amount under the double indemnity clause Claims are paid in full Premiums are returned under the Consideration clause

Claims are denied under the Suicide clause of the policy

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? Coercion Defamation Rebating Misrepresentation

Coercion

J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? Twisting Defamation Coercion Rebating

Coercion

The practice of persuading someone to do something by using force or threats is called: Rebating Twisting Fraud Coercion

Coercion

N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as Assignment of Benefits Coinsurance Indemnity Co-deductible

Coinsurance

On August 6, D submitted an application for a $50,000 life insurance policy and did not pay the initial premium. On august 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer take? Collect initial premium Collect initial premium along with a signed health statement Explain to the applicant the policy is no longer in effect due to change in health condition Collect initial premium and leave a binding receipt

Collect initial premium along with a signed health statement

Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? Administrative-services only plan Commercial insurer Preferred Provider Organization health maintenance organization

Commercial insurer

Credit life insurance is typically issued with which of the following types of coverage? Annual Renewable Term Decreasing Term Individual Whole life Group term

Decreasing term

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? Immediate Retroactive Deferred Universal

Deferred

M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? Claim payment is equal to physician's actual charges Claim payment is negotiated between physician and patient Determined by the schedule of benefits from the hospital Determined by the terms of the policy

Determined by the terms of the policy

K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? Indemnity Major Medical Travel Disability Income

Disability Income

A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? Disability income major medical Key employee Business Overhead Expense

Disability income

Which of the following statements does not accurately describe the tax treatment of premiums and benefits of individual Accident and Health Insurance? Disability income policy premiums are NOT tax-deductible Disability income policy premiums are tax-deductible Major medical policy benefits are normally not taxed Disability income policy benefits are normally not taxed

Disability income policy premiums are tax-deductible

Which of the following statements BEST describes the intent of a Coinsurance clause in a Major Medical policy? Discourages overutiliziation of the insurance coverage Minimizes the need for deductibles Discourages adverse selection Minimizes the waiting period

Discourages overutiliziation of the insurance coverage

Which of the following does Social Security NOT provide benefits for? Survivorship Dismemberment Disability Retirement

Dismemberment

How are Roth IRA distributions normally taxed? 10% penalty tax is applied Taxed as ordinary income Capital gains tax is applied Distributions are received tax-free

Distributions are received tax-free

G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving monthly payments from the annuity. When G dies, the insurer: Does not have to make any further payments Must continue to make monthly payments to G's beneficiary for the rest of the beneficiary's life Must pay G's beneficiary the difference between the amount paid to G and $50,000 in a lump sum Must continue to make monthly payments to G's beneficiary until the difference between the amount paid to G and $50,000 is paid out.

Does not have to make any further payments

What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? MEWA Blanket insurance Dread disease insurance Disability Insurance

Dread disease insurance

What is the primary purpose of ERISA?

ERISA regulates and protects those enrolled in retirement and group health plans

Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE? Each partner owns a $1,000,000 policy on their own life Each partner owns a $1,000,000 on their partner's life Each partner owns a $500,000 policy on their own life Each partner owns a $500,000 policy on their partner's life

Each partner owns a $500,000 policy on their partner's life

Under a trustee group life policy, who would be eligible for a certificate of coverage? Corporation Employee Employer Labor Union

Employee

Which of these is NOT a characteristic of a Health Reimbursement Arrangement (HRA)? Employee funds the HRA entirely Employer funds the HTA entirely HRA's can be offered with other health plans HRA's allow reimbursement for eligible medical expenses

Employee funds the HRA entirely

Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy? Waiver Exceptions and Reductions Incontestable Entire Contract

Entire Contract

Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? Policy Exclusion Incontestable Entire Contract Provision Assignment

Entire Contract provision

Which of the following is an important underwriting principle of group life insurance? Physical examinations are required Everyone must be covered in the group Employer must pay for the entire premium The group must be formed for the purpose of getting affordable insurance

Everyone must be covered in the group

Which of these statements about a guaranteed insurability option rider is not true? coverage can be added at specific events such as marriage or having a child evidence of insurability is not required when the option is exercised Evidence of insurability is required when the option is exercised Coverage can be added at specific ages

Evidence of insurability is required when the option is exercised

Which of the following is NOT included in the policy face? Free look provision Name of the insured Name of the insurer Exclusions

Exclusions

Term insurance has which of the following characteristics? Expires at the end of the policy period Builds cash value Has nonforfeiture options Endows at the end of the policy

Expires at the end of the policy period

E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? F The dissolved partnership E's family E's estate

F

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Family Maintenance Policy Family Income Policy Survivor Policy Family Survivor Policy

Family Maintenance Policy

Taking receipt of premiums and holding them for the insurance company is an example of: commingling misappropriation theft Fiduciary responsibility

Fiduciary responsibility

After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? File a lawsuit contact the insurer again requesting forms Nothing File written proof of loss

File written proof of loss

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase? Fixed period Fixed deferred Fixed immediate Fixed variable

Fixed deferred

N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities? Installment immediate Fixed Installment Deferred Flexible installment deferred Flexible premium immediate

Flexible installment deferred

What action should a producer take if the initial premium is NOT submitted with the application? Keep the application until premium is paid Forward the application to the insurer after giving the applicant a binding receipt Forward the application to the insurer without the initial premium Forward the application to the insurer after giving the applicant a conditional reciept

Forward the application to the insurer without the initial premium

Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called: Fraternal life insurance organizations Domestic life insurance organizations Unauthorized insurers Mutual life insurers

Fraternal life insurance organizations

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? No benefits are payable under the Master contract Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy

Full benefits are payable under the Master contract

What is considered a valid reason for small business to insure the lives of its major shareholders? To provide an income for the surviving dependents Reduce the company's tax liability To pay for final expenses Fund a buy-sell agreement

Fund a buy-sell agreement

Which of these is considered a true statement regarding Medicaid? Funded by both state and federal governments Intended to be used by individuals age 65 and older Provides disability income benefits Automatically covers those receiving Social Security disability benefits

Funded by both state and Federal governments

All of these are a prerequisite for becoming a licensed agent EXCEPT: complete a relicensing course Resident of Florida Be at least 18 years old Graduate from high school

Graduate from high school

Which of the following is a standard provision of the conversion privileges in a group life policy? Group life coverage can only be converted if the employer pays for the individual policy Group life coverage can normally be converted to an individual policy within 6 months Group life coverage can only be converted by providing evidence of insurability Group life coverage can be converted to an individual policy without providing evidence of insurability

Group life coverage can be converted to an individual policy without providing evidence of insurability

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? $1,000,000 $500,000 $250,000 $0

$0

What percent of personal life insurance premiums is usually deductible for federal income tax purposes? 100% 75% 50% 0%

0% Personal life insurance premiums are NOT deductible for federal income tax purposes.

Generally, how long is a benefit period for a Major Medical Expense Plan? 1 year 2 years 3 years 4 years

1 year

The policyholder has how many days to return an Accident/Health Insurance Policy and receive a full refund on premiums? 5 10 15 30

10

G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income? 5 years 10 years 15 years 20 years

10 years

Premature IRA distributions are assessed a penalty tax of: 0% 10% 15% 20%

10%

Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? 15 20 25 30

30

Within how many days must a licensee notify the Commissioner of a change in address? 30 60 90 120

30

How long is the free-look period for Long-Term Care policies sold in Nevada? 10 days 15 days 20 days 30 days

30 days

An individual life insurance policy issued in Texas must have a grace period for premium payment of how many days? 20 25 30 31

31

According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid? 7 days 10 days 31 days 60 days

31 days

Nevada Requires that coverage for newborns begins "from the moment of birth" and a premium must be paid within: 31 days 90 days 6 months 12 months

31 days

The conversion period for a terminated employee to convert to group life coverage to an individual plan is: 30 days 31 days 45 days 60 days

31 days

One becomes eligible for Social Security disability benefits after having been disabled for: 3 months 5 months 6 months 12 months

5 months

A Loss-Purchase buy and sell agreement among three partners, funded with individual life insurance, would require how many policies? 3 6 9 12

6

Which provision is NOT a requirement in a group life policy? Conversion Grace period Incontestable period Accidental

Accidental

Which of the following Dividend options results in taxable income to the policy owner? Paid-up Additions Cash Accumulation at Interest Reduced Premium

Accumulation at Interest

All of the following will result in the suspension of an agent's license, EXCEPT:

Acting with fiduciary responsibility

Under the Affordable Care Act, eligibility for dependent children can be determined by which of the following Age Marital Status Student Status Financial dependence

Age

It is a legitimate insurance marketing practice to obtain business from a competitor by all of the following means, EXCEPT: quoting a lower premium for the same coverage raising the deductible to secure a lower premium if the insured is notified of the change agreeing to reduce commissions in order to obtain a sale providing better coverage for the same premium

Agreeing to reduce commissions in order to obtain a sale

What type of insurance company is domiciled in England, but conducts business in Nevada? Foreign Domestic Alien Transatlantic

Alien

P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy? A straight life deferred annuity A straight life annuity An immediate annuity A deferred annuity

An immediate annuity

All of the following statements regarding group health insurance is true, EXCEPT: Premiums are usually determined by the claims experience of the group A master contract is issued for the group An individual policy is given to each member Group health insurance premiums are typically lower than individual health insurance premiums

An individual policy is given to each member

Who is NOT required to sign a life insurance application? Adult insured Policyowner Agent Beneficiary

Beneficiary

A physician opens up a new practice and qualifies for a $7000/month Disability income policy. What ride would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? Extended Term ride Cost of Living Adjustment Rider Guaranteed insurability Option rider Waiver of Premium rider

Guaranteed insurability Option rider

In Nevada, a long-term Care policy must be renewable in which of the following ways? Conditionally renewable Optionally renewable Guaranteed renewable Noncancellable

Guaranteed renewable

Which of the following types of organization are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements? PPO HMO MEWA POS

HMO

Which type of provider is known for stressing preventative medical care? MEWA Major medical provider HMO PPO

HMO

J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a predetermined price. What type of plan does J belong to? Multiple Employer Welfare Arrangement Multiple Employer Trust Health Maintenance Organization Co-op Arrangement

Health Maintenance Organization

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death, EXCEPT: Fixed Period Interest Only Fixed Amount Life Income

Interest Only

Which of these arrangements allows one to bypass insurable interest laws? Concealment Indemnity contract Contract of adhesion Investor-Originated Life Insurance

Investor-Originated Life Insurance Sometimes called IOLI, stranger-originated life insurance

A policy owner would like to change the beneficiary on a Life insurance Policy and make the change permanent. Which type of designation would fulfill this need? Revocable Contingent Irrevocable Primary

Irrevocable

A policy owner would like to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make the change permanent. Which type of designation would fulfill this need? Revocable Contingent Irrevocable Primary

Irrevocable

Which Type of Life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policy owner? Irrevocable beneficiary Tertiary beneficiary Primary beneficiary Revocable beneficiary

Irrevocable beneficiary

Which of the following types of health coverage frequently uses a deductible? Major Medical policy Basic Surgical policy Basic Hospital policy Worker's Compensation

Major Medical policy

Pre-hospitalization authorization is considered an example of: managed care PPO care Medicaid Major Medical insurance

Managed care

Which of the following are NOT managed care organizations? Point-of-Service plan (POS) Preferred Provider Organization (PPO) Medical Information Bureau (MIB) Health Maintence Organization (HMO)

Medical Information Bureau (MIB)

Which requirement must be met for an association to be eligible for a group life plan? Group was formed for a purpose other than acquiring insurance Group must establish a president Group must have at least 10 members Group was formed for the purpose of acquiring insurance

Group was formed for a purpose other than acquiring insurance

What describes the four tiers of qualifying health plans that can be purchased on the exchange? Qualifying levels Higher levels Healthcare levels Metal levels

Metal levels

When a life insurance policy exceeds certain IRS table values, the result would create which of the following? 1035 Exchange An investment Modified Endowment Contract (MEC) Endowment

Modified Endowment Contract (MEC)

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity? Residual Disability Recurrent Disability Presumptive Disability Occupational Disability

Residual Disability

What form must an applicant be provided with prior to policy delivery if it's replacing an existing health policy? Notice regarding Nonrenewal Notice Regarding Cancellation Notice Regarding Replacement Notice Regarding Coverage

Notice Regarding Replacement

The underwriting process involves all of these, EXCEPT for: Credit report Policy loan Risk classification Application

Policy Loan

Which of the following best describes the particular terms of the policy being applied for? Buyers Guide Policy Summary Inspection Report Information Statement

Policy Summary

The Legal Actions provision of an insurance contract is designed to do all of the following, EXCEPT: provide the insurer adequate time to research a claim protect the insured from having claim research delayed protect the producer give the insured guidelines for pursuing legal action against and insurer

Protect the producer

When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? Residual disability Presumptive disability Recurrent disability repeat disability

Recurrent disability

Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? Limited Special risk Reimbursement Blanket

Reimbursement

K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation? Free-Look Reinstatement Grace Period Consideration

Reinstatement

The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called: reinstatement Grace period Automatic premium loan Waiver of premium

Reinstatement

Which of the following terms is defined as any transaction in which new life insurance or a new annuity is to be purchased and existing life insurance or annuity is to be terminated or discontinued? Rebating Replacement Conversion Solicitation

Replacement

Before holding a hearing that may lead to suspension or revocation of a producer's license, the Insurance Commissioner MUST give: oral notice to the producer written notice to the producer Oral notice to the producer's insurance company Written notice to the producer's insurance company

Written notice to the producer

An insurance company that is incorporated in New York and does business in Nevada is defined as: a domestic insurer a foreign insurer an alien insurer a captive insurer

a foreign insurer

In Nevada, deceptive advertising is considered to be: a form of coercion a form of sliding a form of rebating a form of misrepresentation

a form of misrepresentation

A stock life insurance company that issued both participating and nonparticipating policies is doing business on: a mixed plan a diverse plan a multiple plan an assorted plan

a mixed plan

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as: an insuring agreement a mutual assent a warranty a representation

a representation

To be eligible for Social Security disability benefits, an employee must be unable to perform: any occupation his/her current occupation any occupation that reflects the employee's education level any occupation that the employee is qualified and willing to do

any occupation

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the: agent applicant's spouse National Association of Insurance Commissioners applicant's physician

applicant's physician

In order to establish a HRA, it must: be offered in conjunction with other employer provided health benefits limit the benefits to prescription drugs only be established by the employer limit the amount of money the employee can contribute toward the account

be established by the employer

Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks? Key employer disability disability income business overhead expense workers compensation

business overhead expense

This type of deductible provision states that should more than one family member be involved in a common accident, or suffer the same illness, only one individual deductible amount shall be applied. Individual deductible Corridor deductible Family maximum deductible common accident deductible

common accident deductible

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be: converted to an individual permanent policy at an individual rate converted to an individual permanent policy at a group rate continued at an individual rate continued at a group rate

converted to an individual permanent policy at an individual rate

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges the interest earned, and the: premium tax dividend rate values based on mutual funds or stocks cost of insurance

cost of insurance

Nevada's 10 day free-look period for life insurance policies begins at the: date of delivery date of approval date of application date of physical examination

date of delivery

What is the purpose of the U.S.A. Patriot Act? Detect and deter fraud detect and deter alien insurance companies detect and deter terrorism detect and deter misrepresentations

detect and deter terrorism

An agent takes an individual income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to: issue the policy only when the initial premium check has cleared determine if the applicant is insurable by investigating family health history issue the policy on a standard basis determine if the applicant is an acceptable risk by completing standard underwriting procedures

determine if the applicant is an acceptable risk by completing standard underwriting procedures

Insures organized under the laws of Nevada are called: guarantee associations domestic companies state carriers admitted companies

domestic companies

K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insureds. This type of policy is considered: optionally renewable conditionally renewable guaranteed renewable noncancellable

guaranteed renewable

Basic Medical Expense insurance: normally has a deductible and coinsurance covers an illness but not an accident pays for lost wages while hospitalized has lower benefit limits than major medical insurance

has lower benefit limits than major medical insurance

The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for: insolvency health information financial information overinsurance

health information

Variable life products require a producer to: guarantee not more than a 12% return per annum hold a life and Health insurance license hold a life insurance license and a securities license be regulated solely by state law

hold a life insurance license and a securities license

An insurance company must clearly specify questions designed to obtain information solely for marketing research: only on health insurance applications in any insurance transaction only on property insurance applications only when instructed to do so by the company

in any insurance transaction

The Commissioner does NOT have the power to: subpoena documents examine witnesses under oath incarcerate a producer inquire about violations of the insurance laws

incarcerate a producer

An Accident & Health policy must provide Essential Benefits when purchased: as individual from commercial providers through Medicare in a group plan from commercial providers individually or with group coverage through the Federal Marketplace

individually or with group coverage through the Federal Marketplace

A life insurance policy would be considered a wagering contract WITHOUT: insurable interest premium payment agent solicitation constructive delivery

insurable interest

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have: all statements be warranties insurable interest in the proposed insured the agent completes a third-party application all those involved be family-related

insurable interest in the proposed insured

The funds used by the Life and Health Insurance Guaranty Association to carry out its purpose are obtained from the: agents of insurance companies state government federal government insurance companies

insurance companies

The funds used by the Life and Health insurance Guaranty Association to carry out its purpose are obtained from the: agents of insurance companies state government federal government insurance companies

insurance companies

An insurance broker in Nevada is a representative of the: insurance company insured insurance agency underwriting association

insured

An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the: medical examination is given producer completes the application insurer dates the policy the first premium is paid

insurer dates the policy

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? Residual Benefit Clause Waiver benefit clause Concurrent benefit clause guaranteed benefit clause

Residual benefit clause

P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? Authorize for payroll deductions Agree to a physical examination Sign an enrollment card Register with her state of residency

Sign an enrollment card

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? 403(b) plan Deferred Premium Single Premium Period Certain

Single Premium

Which mode of payment is NOT used by health insurance policies? Monthly premium Annual premium Single premium Semi-annual premium

Single premium

What is Old Age and Survivors Health Insurance (OASDHI) also known as? Medicare Social Security Medicaid FICA

Social Security

Which type of plan allows an employer to give money to an employee to select the beneficiary? Split-dollar plan Employer purchase plan Key employee plan Deferred compensation plan

Split-dollar plan

Medicare is intended for all of the following groups, EXCEPT: those enrolled as a full-time student Those receiving Social Security disability benefits for at least 24 months Those afflicted with chronic kidney failure Those 65 and older

Those enrolled as a full-time student

How does a typical Variable Life policy Investment account grow? Tied to price of gold Through mutual funds, stocks, bonds Based on returns from insurer's general account Tied to Treasury Bills

Through mutual funds, stocks, bonds

When is the face amount paid under a Joint Life and Survivor policy? When policy reaches maturation upon death of the first insured upon death of the last insured when one of the insureds becomes disabled and no longer able to make premium payments

Upon death of the last insured

Which of the following BEST describes how pre-admission certifications are used? Used to assist in underwriting Used to prevent nonessential medical costs Used to minimize hospital lawsuits Used to help process claims

Used to prevent nonessential medical costs

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds? Deferred Flexible Variable Fixed

Variable

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Variable life Credit life Universal life Interest-Sensitive Whole Life

Variable Life

Which of the following policies combines investment choices with a form of Term coverage? Limited-Pay life variable Universal Life Universal Life Adjustable Life

Variable Universal Life

A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as: adjustable life graded-premium life variable life modified whole life

Variable life

A written agreement to provide a Life insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a: Variable Life Policy Viatical Settlement Equity Index Annuity Health Care Savings Account

Viatical Settlement

A life insurance policyowner may sell their their policy to a(n) ______ in order to receive a percentage of the policy's face value. Viatical settlement provider broker insurer Viator agent

Viatical settlement provider

A return of Premium Life insurance policy is: a Nonforfeiture option Whole life and increasing term Interest-sensitive Variable life

Whole life and increasing term

Quarterly premium payments increase the annual cost of insurance because insurer risk exposure is greater interest to the insurer is increased while administrative costs are decreased mortality costs are greater interest to the insurer is decreased while the administrative costs are increased

interest to the insurer is decreased while the administrative costs are increased

Which of these types of coverage is best described as a short term medical policy? interim coverage provisional coverage transitional coverage conversion coverage

interim coverage

The phrase "This policy will only pay for a semi-private room" is an example of a(n): Maximum policy limit internal limit stop loss participation percentage

internal limit

K buys a policy where the premium stays fixed for the first 5 years. The premium then increased in year 6 and stays level thereafter, all the while the death benefits remain the same. What kind of policy is this? Variable Life Adjustable Life Grade premium whole life modified whole life

modified whole life

Insurance policies are considered aleatory contracts because they are "take it or leave it"m contracts Both parties consent to the contract performance is conditioned upon a future occurrence The contract is voidable upon proof of fraud

performance is conditioned upon a future occurrence

An assignment of benefits of a Health Policy: transfers payments to someone other than the policyowner is prohibited by state law is allowed only on policies after 1992 transfers rights form the company to the policyholder

transfers payments to someone other than the policyowner

All of these are considered to be a benefit under Social Security, EXCEPT for: Survivorship unemployment disability retirement

unemployment

An insurance producer may sell, solicit, or negotiate a contract of insurance: upon filing an application for licensure upon passing the licensure examination upon issuance of license upon becoming an appointed producer of an insurer

upon issuance of license

A term life insurance policy matures: upon endowment of the contract upon death of the insured when the cash value equals the death benefit upon the insured's death during the term of the policy

upon the insured's death during the term of the policy

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Joint life Adjustable life variable Universal Life Universal Life

variable Universal Life

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Joint life Adjustable life Variable Universal Life Universal Life

variable universal Life

What is the Suicide provision designed to do? Decline an applicant who is contemplating suicide safeguard the insurer from an applicant who is contemplating suicide protect the insurer from ever paying a claim that results from suicide allows the insurer the option to pay a death benefit in the event of a suicide

safeguard the insurer from an applicant who is contemplating suicide

An immediate annuity consists of a: variable premium flexible premium single premium deferred premium

single premium

Which of the following statements about the classification of applicants is INCORRECT? substandard applicant are never declined by underwriters Substandard applicant are occasionally decline by underwriters Preferred risk applicants typically have better premium rates than standard risk applicants An applicant can be classified as substandard risk because of a hazardous job

substandard applicant are never declined by underwriters

Which of the following services is NOT covered under a hospitalization expense policy? Daily room and board surgeon's fees intensive care miscellaneous expenses

surgeon's fees

The premiums paid by an employer for his employee's group life insurance are usually considered to be:

tax-deductible to the employer

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? the 403(b) custodian the financial institution the employer the employee

the employee

The USA patriot Act was enacted in: 2001 2002 2003 2004

2001

A newly licensed agent must complete 30 hours of continuing education every __ years? 1 2 3 4

3

N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is: $2,000 $1,750 $1,500 $1,250

$1,250

Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of: $10,000 $7,500 $5,000 $2,500

$10,000

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? Return of premium paid Cash value plus interest $20,000 death benefit Face amount plus interest

$20,000 death benefit

J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? $0 $100,000 $25,000 $50,000

$25,000

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a: $125,000 individual whole life policy $25,000 modified whole life policy $25,000 individual term life policy $25,000 individual whole life policy

$25,000 individual whole life policy

J's Major Medical policy has a $2,000 deductible and an 80/20 Coinsurance clause. If J is hospitalized and receives a bill for $10,000, J would pay $1,600 $2,000 $3,600 $8,000

$3,600

C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000? $0 $400 $720 $1000

$720

All of the following statements about traditional individual retirement accounts are false except 10% penalty is applied to withdrawals after age 59 1/2 Withdrawals are normally tax-free to the recipient 10% penalty is applied to withdrawals before age 59 1/2 Contributions are not tax deductible

10% penalty is applied to withdrawals before age 59 1/2

A long term care insurance contract shall provide coverage for a minimum of how many months? 6 12 15 18

12

An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. 5 10 15 20

15

An insurance company can contest a life insurance contract due to application fraud within: 60 days 1 year 2 years 3 years

2 years

In Nevada, most life insurance policies have a contest ability period of: 1 year 2 years 3 years 4 years

2 years

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? Straight life accumulates faster than Limited-Pay Life 20-Pay Life accumulates cash value faster than Straight Life Cash value accumulation of both 20-pay Life and Straight Life depend on the surer's financial rating 20-Pay Life and Straight Life accumulate cash value at the same rate

20-pay Life accumulates cash value faster than Straight Life

How long can preexisting conditions be excluded for in long-term care policies? 6 months 12 months 18 months 24 months

6 months

The waiting period for a pre-existing condition under a Medicare Supplement policy many not go beyond 1 month 3 months 6 months 12 months

6 months

How long does an individual have to "rollover" funds from an IRA or qualified plan? 60 days 90 days 120 days no limit

60 days

According to Nevada's rules on disclosure, a life insurance applicant is expected to be provided with: A certificate of Coverage and Buyer's Guide A summary Statement and Buyer's Guide A buyer's Guide and Policy Summary A written Comparison and Policy Summary

A Buyer's guide and policy summary

Which of these is an element of a Variable Life policy? A fixed, level premium Insurer assumes the investment risk No investment risk to the policyowner Rate of returns are guaranteed

A fixed, level premium

Which of the following statements about noncontributory employee group life insurance is FALSE? A minimum number of employees is required to participate All eligible employees must be covered No evidence of insurability required Must have conversion rights

A minimum number of employees is required to participate

Which of these is NOT a reason for a business to buy key person life insurance? Reduction in sales as a direct result a void in leadership if the key person were to die A pension deficient if the key employee dies

A pension deficient if the key employee dies

Which of the following individuals MUST be licensed as a producer? A salaried officer of an insurer A person who provides information or advice for the purpose of reducing loss A person who places insurance on behalf of anyone seeking insurance A person who gives incidental insurance advice in the normal course of business other than insurance consulting

A person who places insurance on behalf of anyone seeking insurance

An agent who sells an individual life insurance policy in Nevada MUST deliver to the policy owner: An underwriting Report Disclosure A Prospectus and Ledger Statement A policy Summary and Buyer's Guide An Annual Financial Statement of the Insurer

A policy Summary and Buyer's Guide

P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as? A presumptive disability An occupational disability A residual disability A recurrent disability

A recurrent disability

Nevada insurance law specifically allows the Commissioner to issue a temporary license to which of the following individuals? A nonresident producer who has relocated to Tennessee A resident producer whose license has lapsed A new appointed officer of an insurance agent who is actively completing relicensing requirements A surviving spouse of a deceased producer

A surviving spouse of a deceased producer

What is Nevada's definition of Life insurance replacement? A transaction in which coverage on an existing policy is increased A transaction in which group life coverage is converted to an individual policy A transaction in which a new policy is bought and an old policy is terminated A transaction in which a policy owner reinstates a lapsed policy

A transaction in which a new policy is bought and an old policy is terminated

If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth of 10-year Term coverage on X under the same policy, the applicant should purchase: An estate Builder Policy A whole Life policy with Extended Term A whole Life policy with an other insured rider A whole policy with a payor benefit

A whole Life Policy with an Other Insured Rider

Which of the following types of policies pays a benefit if the insured goes blind? Universal life AD&D Endowment Adjustable Life

AD&D

Which of the following is NOT included in an annuity contract? Nonforfeiture benefit Free-Look period Beneficiary AD&D rider

AD&D rider

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called: An installment Refund annuity A straight life annuity a cash refund annuity a joint life annuity

An installment Refund annuity

What does the insuring agreement in a Life insurance contract establish? An insurer's basic promise

An insurer's basic promise

Which premium schedule results in the lowest cost to the policyowner? Semi-annual Monthly Quarterly Annual

Annual

Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? Variable life Interest-sensitive life universal life annuity

Annuity

Which type of contract liquidates an estate through recurrent payments? Universal life insurance Whole life insurance Annuity 401(k)

Annuity

When a policy owner cash surrenders a Universal Life Insurance policy in it's early years, this may be considered a red flag for a(n): Federal Fair Credit Act Violation Title 18 Fraud violation Anti-Money Laundering violation Unfair Trade Practice violation

Anti-Money Laundering Violation

When an insurance application is taken by a producer, which of these statements is true? The applicant should have an attorney present during the application process Any changes made on the application require the applicant's initials any changes made on the application can later be initialed by the producer if the applicant is unavailable The producer has the discretion to ask or not to ask any of the questions listed on the application

Any changes made on the application require the applicant's initials

When can a policy owner change a revocable beneficiary? Anytime After the consent of the current beneficiary Never Only if primary beneficiary dies

Anytime

Any changes made on an insurance application requires the initials of whom? Insured Agent Applicant Beneficiary

Applicant

An incomplete life insurance application submitted to an insurer will result in which of these actions? Application will be returned to the writing agent Application will be approved with restrictions Application will be pending until a MIB report is sent to the insurer Application will be automatically declined

Application will be returned to the writing agent

In a qualified retirement plan, the yearly contributions to an employee's account: are not tax-deductible are restricted to minimum levels set by the IRS are restricted to maximum levels set by the IRS must be matched dollar-for-dollar by the employer

Are restricted to maximum levels set by the IRS

Which of the following medical expenses does Cancer insurance not cover? Chemo Radiation treatment Physician visit Arthritis

Arthritis

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? Beneficiary will be denied the claim Beneficiary will be denied the claim and refunded all paid premiums Beneficiary will be paid the Death Benefit Beneficiary will be paid a partial Death Benefit

Beneficiary will be paid the Death Benefit

What is considered to be a characteristic of an immediate annuity? Benefit payments start within one payment period of purchase Benefit payments start within 5 years of initial purchase Normally tied to a specific equity or stock index Periodical contributions begin immediately

Benefit payments start within one payment period of purchase

T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable? Benefits are taxable to T Benefits are tax-free to T Benefits are partially taxable to T Benefits are taxable to T's employer

Benefits are taxable to T

All of the following statements about Major Medical benefits are true, EXCEPT: The deductible can be expressed as a fixed dollar amount The benefit period begins only after a specified amount of expenses have accrued Benefits are generally expressed as a percentage of eligible expenses Benefits have no maximum limit

Benefits have no maximum limit

All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT: Bilateral Unilateral Aleatory Adhesion

Bilateral

Defamation is BEST described as publishing or circulating which of the following types of information? Pamphlets containing false information about Whole Life Insurance Statements criticizing stock purchases Brochures falsely criticizing the financial condition of an insurance company Derogatory statements about the "buy Term and invest the difference" marketing practice

Brochures falsely criticizing the financial condition of an insurance company

Which of these is NOT considered to be a cost connected with an individuals death? Funeral expense Tax liability Business expenses Probate costs

Business Expenses

The insurer must provide a prospective buyer with a(n): Buyer's Guide and Policy Summary A.M. Best report Actuarial table copy of the application

Buyer's Guide and Policy Summary

Which of the following can an agent provide to help a prospective client understand and purchase the most appropriate product? Policy summary Conditional Receipt Buyer's Guide Illustration

Buyers guide

Which of the following correctly explains the actions an agent should take if a customer want to apply for an insurance policy? Have the customer sign a blank application, then take the application back to his officer to complete prior to sending it off to the insurance company Complete the application over the phone with the customer, sign the application for the customer, then send the application off to the insurance company Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company Have the customer fill out the application and send it to his officer for him to sign, then send it off to the insurance company

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? Binding Initial Premium Conditional Contingent

Conditional

Which of these require an offer, acceptance, and consideration? Warranty Estoppel Contract Representation

Contract

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? Non-eligible Noncontributory Eligible Contributory

Contributory

What type of group insurance plan involves employees sharing the cost? Contributory plan non-contributory plan qualified plan non-qualified plan

Contributory plan

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? Entire contract Owner's rights Nonforfeiture options Conversion

Conversion

Under the ACA (Affordable Care Act), which is the following is NOT considered an essential health benefit? Ambulatory patient servies Cosmetic surgery Laboratory services Prescription drugs

Cosmetic Surgery

Which statement regarding the Misstatement of Age provision is considered to be true? Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered Requires that a new policy must be applied for if a misstatement of age is found on the current policy Misstatement of Age provision is valid only during the contestable period Insurer may void the policy if a misstatement of age is discovered

Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered

A business Overhead Expense Policy: Covers any loss of income by the business owner Covers business expenses such as rent and utilities covers employee wages only reimburses the company for any education in sales due to the owner's disability

Covers business expenses such as rent and utilities

Which of these is NOT a reason for purchasing life insurance on the life of a minor? If both parents were to die, it would provide death benefits to the child Provides funds for final expenses if the child were to die Provides living benefits for the child's college education Provides child with insurance now, in case the child becomes uninsurable later

If both parents were to die, it would provide death benefits to the child

In regards to representation or warranties, which of these statements is TRUE? Warranties are statements considered to be true to the best of the applicant's belief If material to the risk, false representations will void a policy Representations are statements guaranteed to be true in every respect If material to the risk, false representation will NOT void a policy

If material to the risk, false representations will void a policy

When must insurable interest exist for a life insurance contract to be valid? Inception of the contract Throughout the entire length of the contract When the insured dies During the contestable period

Inception of the contract

An agent must do which of the following during a sales presentation for a participating life insurance policy? Include a statement that dividends are not guaranteed Explain the applicable Nonforfeiture values Explain the surrender cost indexes for 5 and 10 years

Include a statement that dividends are not guaranteed

When determining the monthly benefit amount for a Disability income policy, the factor that limits the amount of a prospective insured may purchase is: occupation Income Age Medical condition

Income

A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? Only income taxes on $30,000 Only income taxes on $24,000 Income taxes plus a 10% penalty tax on $30,000

Income taxes plus a 10% penalty tax on $30,000

How does an indeed annuity differ from a fixed annuity? Fixed annuity owners receive credited interest tied to the fluctuations of the linked index Indexed annuity owners receive credited interest tied to the fluctuations of the linked index Fixed annuity owners have a separate investment account Indexed annuity owners receive annual dividend

Indexed annuity owners receive credited interest tied to the fluctuations of the linked index

Which of these actions should a producer take when submitting an insurance application to an insurer? Issue a binding receipt to applicant if no initial premium is submitted Disclose to the applicant the amount of commissions to be earned on this transaction Inform insurer of relevant information not included on the application

Inform insurer of relevant information not included on the application

Information obtained from a phone conversation to the proposed insured can be found in which of these reports? Agent's report MIB report Inspection report Attending physician's report

Inspection report

Which of the following best describes credit life insurance? Insurance purchased on a mandatory basis with money borrowed from a bank or other credit institution Insurance issued on a debtor to cover outstanding balances on installment loans Insurance that allows an insured to use a policy's cash value to pay outstanding debts Low-cost insurance issued through the mail by credit card companies

Insurance issued on a debtor to cover outstanding balances on installment loans

A renewable term policy is renewable at the option of the: owner Company Insured Assignee

Insured

In a Key Employee life insurance policy, the third-party owner can be all of the following, Except: Applicant Owner Payor Insured

Insured

What is the initial requirement for an insured to become eligible for benefits under the Waiver of premium provision? Insured must be unemployed Insured must be hospitalized Insured must demonstrate financial need Insured must be under a physician's care

Insured must be under a physician's care

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act? Primary beneficiary's estate Primary beneficiary's next of kin Insured's estate Insured's contingent beneficiary

Insured's contingent beneficiary

variable annuities may invest premiums in each of the following, EXCEPT: common stock Money market securities Insurer's corporate business account Junk bonds

Insurer's corporate business account

Variable annuities may invest premiums in each of the following, EXCEPT: Common Stock Money Market securities Insurer's corporate business account Junk bonds

Insurer's corporate business accounts

Which health policy clause specifies the amount of benefits to be paid? Insuring Consideration Free-look Payment Mode

Insuring

The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the: entire contract provision Consideration clause Benefit clause Insuring clause

Insuring clause

Which of the following health insurance policy provisions specifies the health care services a policy will provide? Insuring clause Usual, Customary, and Reasonable clause Consideration clause Benefit clause

Insuring clause

A foreign insurance company doing business in Nevada: Is not subject to Florida insurance laws is a company that was formed under the laws of another state Is a company that was formed under the laws of another country is only authorized to write business outside the United States

Is a company that was formed under the laws of another state

In Nevada, an element of an insurance transaction would be: ordering an MIB report setting up the sales appointment Issuing an insurance contract Determining how much coverage is needed

Issuing an insurance contract

Which statement regarding Third-party ownership of a life insurance policy is true? Beneficiary is required to be irrevocable Policy cannot be assigned once issued It is illegal in most states It is used extensively in estate-planning as well as business circumstances

It is used extensively in estate-planning as well as business circumstances

Which of the following statements is CORRECT about the period in which a Term Policy can be converted It is the same in all contracts It is set by state regulation It can be changed by the insured It varies according to the contracts

It varies according to the contracts

Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? Survivorship Life Family plan Joint life Whole life and level term rider

Joint life

Which plan is intended to be used by a sole proprietor and the employees of that business? SEP Plan Keogh Plan IRA SIMPLE plan

Keogh Plan

An engineering firm that would suffer financially from the death of a project manager should purchase a: Buy and Sell Agreement Key Person Life policy Deferred Annuity contract Cross-Purchase plan

Key Person Life Policy

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? $5,000 per month benefit $10,000 per month benefit if the cause was accidental More than $5,000 per month benefit if cause was work-related Less than $5,000 per month benefit regardless of the cause

Less than $5,000 per month benefit regardless of the cause

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed? Limited-Pay life Grade premium Level term Endowment

Level term

A whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value? Cash surrender Life settlement contract Buy-sell arrangement 1031 exchange

Life settlement contract

Life insurance that covers an insured's whole life with level premiums paid over a limited time is called: Adjustable life Renewable Term Limited Pay Life Joint Life

Limited Pay life

In Major Medical Expense policies, what is the intent of a Stop Loss provision? Limits an insurer's premium increases Limits an insurer's liability Limits an insured's out-of-pocket medical expenses Limits an insured's coverage for pre-existing conditions

Limits an insured's out-of-pocket medical expenses

Which of these is NOT relevant when determining the amount of personal life insurance needed? Existing life insurance coverage Local unemployment rate Household income Household debt

Local unemployment rate

Which of these is an element of a Single premium annuity? Deferred payment Lump-sum payment Fixed income Tax-deductible

Lump-sum payment

Which of the following health insurance coverages is BEST suited for meeting the expenses of catastrophic illness? Major Medical Hospital Expense Surgical Expense Hospital Income

Major Medical

M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is: Adjustable Life Indeterminate Premium Life Grader Premium Life Modified Premium Life

Modified Premium Life

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for: variable life Modified whole life Universal Variable Life Variable Annuity

Modified Whole life

Which of the following Best describes how a PPO is less restrictive than a HMO? Typically not subject to deductibles Not regulated by the federal government More benefits available More physicians to choose from

More physicians to choose from

Which of the following is NOT an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit by offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details

Needing written documentation of claim details

What is the fund that assures policyholders payment of death benefits on Insurance Policies, if the company is insolvent at the time of the claim? Health insurance Portability and Accountability Act Employees Retirement Income Security Act national Association of insurance Commissioners Nevada life and health insurance guaranty association

Nevada life and health insurance guaranty association

J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? Limited coverage Workers' Compensation coverage Occupational coverage Nonoccupational coverage

Nonoccupational coverage

Which of the following BESt describes a short-term medical expense policy? Conditionally renewable Noncancellable Guaranteed renewable Nonrenewable

Nonrenewable

Which of these statements concerning an individual Disability income policy is true? Premiums are normally tax-deductible Age of the insured determines the amount of the benefits Normally includes an elimination period Benefits are normally taxable

Normally includes an elimination period

Which statement is true regarding a minor beneficiary? Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 Normally, a guardian is required to be appointed in the Beneficiary clause of the contract The minor must pay the debts of the Insured's estate before receiving any of the proceeds The minor is entitled to receive the death proceeds immediately

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

The Notice of Claims provision requires a policyowner to: provide proof of loss to an insurer within a specified time Notify an insurer of a claim within a specified time wait 60 days after filing a claim to initiate a lawsuit against in insurer notify their physician of a claim within a specified time

Notify an insurer of a claim within a specified time

S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning: September 21 October 16 November 1 December 1

November 1

Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? 10% tax penalty for early withdrawal Capital gains tax Ordinary income tax and a 10% tax penalty for early withdrawal Ordinary income tax

Ordinary income tax and a 10% tax penalty for early withdrawal.

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: R's estate Q's estate P and Q's estate P only

P only

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when: P receives the policy and pays the premium P passes the medical examination the producer receives the policy the insurance company approves the policy

P receives the policy and pays the premium

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? P cannot borrow against the policy's cash value while disabled P will have to pay income taxes on the amount of premiums waived P will still receive declared dividends P cannot assign ownership of the policy while premiums are being waived

P will still receive declared dividends

Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured? HMO PPO EPO PLHSO

PPO

A life insurance company may make policy rate discriminations against: People of different religions People that are married People that smoke People of different races

People that smoke

Which of the following best describes a contingent beneficiary? Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured Person designated by the primary beneficiary's executor to receive policy proceeds Person designated by the state to receive policy proceeds in the event that the primary beneficiary dies Person designated by the insurance company to receive policy proceeds in the event that the primary beneficiary dies

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured

When an employee is terminated, which statement about a group term life conversion is true? Employee must convert group term life coverage into an individual term life policy Employee must provide evidence of insurability for conversion Policy proceeds will be paid if the employee dies during the conversion period Policy proceeds will NOT be paid if the employee dies during the conversion period

Policy proceeds will be paid if the employee dies during the conversion period

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? Portion of the premiums paid for by the employer may be a tax deduction

Portion of the premiums paid for by the employer may be a tax deduction

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? Portion of the premiums paid for by the employer may be a tax deduction Portion of the premiums paid for by the employee may be a tax deduction Portion of the death proceeds are taxable to the beneficiary Portion of the death proceeds are taxable to the estate

Portion of the premiums paid for by the employer may be a tax deduction

What benefit does the Payor clause on a Juvenile Life policy provide? allows payor to assign ownership in the event payor becomes disabled Allowed payor to increase face amount without providing evidence of insurability Premiums are waived if juvenile becomes disabled Premiums are waived if payor becomes disabled

Premiums are waived if payor becomes disabled

Which of the following statements about a Guaranteed Renewable Health Insurance policy is correct? Premiums normally decrease at time of renewal Premiums normally increase at time of renewal Policy can be renewed at any time by the company Policy can be cancelled at any time by the company

Premiums normally increase at time of renewal

The Coordination of benefits provision: allows an insured covered by two health plans to make a profit on a covered loss Prevents insured covered by two health plans from making a profit on a covered loss

Prevents insured covered by two health plans from making a profit on a covered loss

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive? Primary Insurance Amount (PIA) Total taxes paid paid into FICA Number of dependents State of residence

Primary Insurance Amount (PIA)

The individual who provides general medical care for a patient as well as the referral for specialized care is known as a: Physician's assistant Primary care physician secondly care physician Third party administrator

Primary care physician

Which of these is NOT a type of agent authority? Express Implied Principal Apparent

Principal

A Medical Information Report (MIB) report may disclose which of the following? Prior preferred rating Prior use of marijuana Prior lapsing of policy Prior bankruptcy judgement

Prior use of marijuana

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? Proceeds will be paid to P's estate Proceeds will be divided equally between K's and P's estate Proceeds will be payable to K's estate if P dies within a specified time The courts will decide who will receive death benefits

Proceeds will be payable to K's estate if P dies within a specified time

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? Deposit the applicants check into his account and make a personal check out to the insurance company from his personal account Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Cross of his name on the "pay to" portion of the check, write the name of the insurance company, and send the check back to the insurance company Deposit the check in to his personal account, use the funds to purchase a cashiers check, and send the new chasers check back to the insurance company

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

With Optionally Renewable Health policies, the insurer may: renew the policy only if no claims have been filled the previous year renew the policy only with the insured's consent review the policy whenever they please and determine whether or not to renew it Review the policy annually and determine whether or not to renew it

Review the policy annually and determine whether or not to renew it

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant? Geographical location Source of income Risk classification Marital status

Risk classification

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? Risk classification Warranty review Insurable interest Inspection report

Risk classification

Equity indexed annuities are invested in which of the following: Insurer's general account Savings bonds Insured's general account S&P 500

S&P 500

A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take? Send the initial premium back to the applicant Send a notice to the applicant that the coverage was declined Send a notice to the MIB that the applicant was declined Send a notice to the agent that the applicant was denied

Send a notice to the MIB that the applicant was declined

Which of the following statements BEST describes dental care indemnity coverage? Services are reimbursed before the insurer receives the invoice Services are reimbursed after insurer receives the invoice In-network dentists must always be used Very limited list of providers

Services are reimbursed after insurer receives the invoice

P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE? She DOES need to provide evidence of insurability She does NOT need to provide evidence of insurability She will have up to 6 months to convert to an individual policy She will be paying exactly the same premium for the individual plan as she did the group plan

She does NOT need to provide evidence of insurability

Which action by an insurance producer is considered rebating? paying a bonus to a policyholder out of surplus accumulated from nonparticipating insurance Splitting commissions with a policyholder who has purchased additional coverage Readjusting the rate of premium for a group policy based on the loss or expense experience thereunder at the end of the first policy year Offering a discount in premium equal to the price of a child passenger restraint system

Splitting commissions with a policyholder who has purchased additional coverage

A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast? Stock company is regulated by the state where it's incorporated. Mutual company is regulated by its policyholders. Stock company is considered an authorized insurer. Mutual company is considered an unauthorized insurer. Stock company is owned by its policyholders. Mutual company is owned by its shareholders. Stock company is owned by its shareholders. Mutual company is owned by its policyholders.

Stock company is owned by its shareholders. Mutual company is owned by its policyholders.

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n): cash refund installment Refund Straight Life annuity Life annuity with Period Certain

Straight Life annuity

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? Indemnity Subrogation Legal Action Consideration

Subrogation

What type of life insurance policy covers two people and pays upon the death of the last insured? Shared Survivorship Adjustable joint

Survivorship

What type of life insurance are credit policies issued as? Whole Variable Term Universal

Term

What kind of life insurance product covers children under their parents policy? Family Maintenance rider Term rider Family Income rider Payor benefit

Term rider

Under which circumstance can a group life insurance policy be converted to an individual policy? Termination of employment Reinstatement of policy Amendment of certificate Elimination of premiums

Termination of employment

What does a Guaranteed Insurability rider provide a Disability Income policy owner? The guarantee that the premiums will never increase The guarantee that the policy will never be cancelled The ability to periodically increase the amount of coverage only with evidence of insurability The ability to periodically increase the amount of coverage without evidence of insurability

The ability to periodically increase the amount of coverage without evidence of insurability

Which of the following factors affects the amount of monthly disability benefits payable under social security? The cause of the disability The amount of the benefits available from other sources The number of children dependent on the recipient The state in which the recipient lives

The amount of the benefits available from other sources

Which of the following statements is true about most Blue Cross/Blue Shield organizations? They are the same as private insurance companies They are federally sponsored They are nonprofit organizations They are owned by hospitals and physicians

They are nonprofit organizations

On delivery of a policy, a signed statement of good health is typically requested if: a conditional receipt was given to the applicant The quarterly premium payment mode was selected The policy contains a guaranteed insurability rider The application was submitted without the initial premium

The application was submitted without the initial premium

Which statement regarding a Key Employee Life policy is NOT true? The application must be signed by the key employee Its purpose is to prevent the financial loss that may ensure if a key employee dies The beneficiary is named by the key employee The company purchases, owns, pays the premiums and is the beneficiary

The beneficiary is named by the key employee

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most? The cost The nonforfeiture options The contestable period The assignment of ownership

The cost

What is the underlying concept regarding level premiums? Level premiums build cash value quicker in the early years The early years are charged more than what is needed The early years are charged less than what is needed Level premiums can only be paid annually

The early years are charged more than what is needed

Which statement is TRUE regarding a group accident and health policy issued to an employer? Neither the employer or employee are policyowners The employer is issued a certificate of coverage and each employee receives a policy The employer receives the policy and each employee is issued a certificate Both the employer and employee are policy owners

The employer receives the policy and each employee is issued a certificate

A life insurance policy that provides a policy owner with cash value along with a level face amount is called: Whole life Level term Credit Life Ordinary life

Whole life

J chooses a monthly premium payment mode on who Whole Life insurance policy. Which of these statements is correct? The gross premium is higher on a monthly payment mode as compared to being paid annually The gross premium is lower on a monthly payment mode as compared to being paid annually The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis

The gross premium is higher on a monthly payment mode as compared to being paid annually

Which of the following statements regarding a Tax Sheltered Annuity is INCORRECT? The income from the TSA is received income tax-free The amount contributed is deductible from taxable income The interest earnings are tax deferred A tax-sheltered annuity is available to employees of non-profit organizations

The income from the TSA is received income tax-free

Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? A claim greatly exceeds the benefits payable The insured fails to pay the premium The attending physician dies before the claim is settled The insured is no longer in good health

The insured fails to pay the premium

T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take? The insurer will rescind the policy, deny the claim, and recover all payments made Due to the policy not being post-claim underwritten, the insurer must continue to pay this claim Clam will be rejected because of this criminal act, but no recovery of payments will be maid Claim will be denied but the policy will remain in force without further premium payments due to the insured's total disability

The insurer will rescind the policy, deny the claim, and recover all payments made

Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? Proof of Loss forms The outline of Coverage Medicare contact information The insurance company's policy loss rations

The outline of coverage

Which statement regarding the Change of Beneficiary provision is true? The beneficiary can only be changed with the consent of the insurer The policy owner can change the beneficiary The insured can change the beneficiary A beneficiary change is subject to underwriting procedures

The policy owner can change the beneficiary

In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom? NAIC The state where they are conducting business The attorney general in the state where they are domiciled Homeland security

The state where they are conducting business

T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called: insuring Time Limit on Certain Defenses Grace Period Free-Look period

Time Limit on Certain Defenses

What is the elimination period of an individual disability policy? Time period an insured must wait before coverage begins Time period a disabled person must wait before benefits are paid Time period after the policy issue date in which the provisions are still contestable The point in time when benefits are no longer payable

Time period a disabled person must wait before benefits are paid

Why is an applicant's signature required on a life insurance application? To attest that the statements on the application are warranties To attest that the statements on the application are accurate to the most of the applicant's knowledge To give power of Attorney to the producer if needed To attest that all statements on the application are guaranteed to be true

To attest that the statements on the application are accurate to the most of the applicant's knowledge

A business disability Buyout plan policy is designed: as an incurred expense plan with a very short Elimination period to pay benefits to the Corporation or other shareholders to pay benefits to the insured's spouse

To pay benefits to the Corporation or other shareholders

Inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance is: rolling over rebating twisting coercion

Twisting

Which of the following is a characteristic of a variable annuity? Underlying equity investments Does not have surrender charges Does not provide a transfer of ownership Selling this product requires only a life license

Underlying equity investments

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this? Estoppel Aleatory Adhesion Unilateral

Unilateral

Life and health insurance policies are: multi-lateral contracts Bilateral contracts Unilateral contracts Non-lateral contracts

Unilateral contracts

A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need? Endowment at age 75 Universal Life Graded Benefit Whole Life Modified Whole Life

Universal Life

What type of life insurance incorporates flexible premiums and an adjustable death benefit? Endowment policy Modified whole life Decreasing term Universal life

Universal life

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? Void the policy if found during the Contestable period Void the policy, no matter when it is discovered Void the policy at any time only if it is found to be material Void the policy only if it is discovered during the Contestable period and proven to be material

Void the policy only if it is discovered during the Contestable period and proven to be material

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the: Grace Period Waiting Period Postponement Period Elimination Period

Waiting Period

The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the: Probation Period Grace Period Waiver of Premium Elimination Period

Waiver of Premium

Which of these is considered a statement that is assured to be true in every respect? Estoppel Warranty Guarantee Representation

Warranty

At what point does an informal contract become binding? When one party makes an invitation and the other makes an offer When an offer is made by one party and the other party rejects the offer and makes a counteroffer When one party makes an offer and the other party accepts that offer When one party makes the required payment

When one party makes an offer and the other party accepts that offer

When does a life insurance contract become effective if the initial premium is not collected during the application process? After all medical and personal information has been evaluated when insurer receives initial premium from the producer When producer delivers policy and collects initial premium After application has been approved by the underwriters

When producer delivers and collects initial premium

A producer MUST deliver a Notice to Applicant Regarding Replacement of Accident & Sickness insurance of which of the following times? Before the application is taken and underwritten Within five days after application is made When the application is taken After the policy has been in effect for ten days

When the application is taken

When is the face amount of a Whole Life policy paid? At the policy's maturity date only When the insured dies or at the policy's maturity date, whichever happens first Only when the insured dies When the policy is surrendered

When the insured dies or at the policy's maturity date, whichever happens first

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100? Term life Whole Life Credit Life Universal Life

Whole Life

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will pay the death benefit in full adjust the death benefit to an increased amount adjust the death benefit to a reduced amount deny the claim

adjust the death benefit to a reduced amount

According to the Affordable Care Act (ACA), a dependent child's eligibility status is determined by age income health marriage status

age

How long does the coverage normally remain on a limited-p[ay life policy? Age 65 age 100 when premium payments stop at the discretion of the insurer

age 100

Which of the following is NOT an example of a producer's breach of contract under fiduciary duty? Misappropriation of premiums commingling premiums improper withholding of premiums allowing premiums to be submitted electronically

allowing premiums to be submitted electronically

The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is: forfeited an amount that the premiums paid would have purchased at the current age or ages an amount consists of the premiums paid for the policy if the policy was issued for over three years reduced by a specified percentage of the face amount

an amount that the premiums paid would have purchased at the current age or ages

The definition of a business entity includes: a partnership that requires a license issued by the Department an association or a limited liability company a business that requires approval by the department to transact business

an association or a limited liability company

Group life insurance policies are generally written as: a term rider annually renewable term increasing term group whole life

annually renewable term

A CORRECT statement about the regulatory authority of the Commissioner with respect to insurance producers is that the commissioner may: mandate the financial restricting of insolvent insurers levy fees on policy applications to defray operating costs establish guidelines for continuing education as a part of the producer license renewal procedure require adjacent states to adopt reciprocal agreements for nonresident procured licenses

establish guidelines for containing education as a part of the producer license renewal procedure

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n): delayed effective date exclusion for the medical condition extended Contestable period Concealment clause

exclusion for the medical condition

All of there are characteristics of an Adjustable Life policy, EXCEPT: adjustable premiums adjustable premium payment period combination of term and whole life insurance face amount can be adjusted using policy dividends

face amount can be adjusted using policy dividends

An insurance company that promises lower insurance rates than any other company in the country may be charged with: coercion defamation boycotting false advertising

false advertising

Which of the following is required for insurance producer applicants who are required to pass a written examination? fingerprint-based criminal background check Credit report high school diploma sponsoring insurance company

fingerprint-based criminal background check

The Commissioner must examine each domestic insurance company AT LEAST every: year three years four years five years

five years

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT: policy is delivered free-look period has expired insurance company issues policy initial premium is collected

free-look period has expired

Which statement regarding third-party ownership of a life insurance policy is true? Beneficiary is required to be irrevocable Policy cannot be assigned once issued It is illegal in most states it is used extensively in estate-planning as well as business circumstances

it is used extensively in estate-planning as well as business circumstances

Companies in North Carolina may transact solicitations for insurance ONLY through: licensed adjusters licensed producers surplus lines brokers attorneys

licensed producers

All of the following are limited benefit plans, EXCEPT: cancer policies life insurance policies dental policies critical illness policies

life insurance policies

Which type of plan normally includes hospice benefits? Short-term disability plans Group life plans Workers' Compensation Managed care plans

managed care plans

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the: marital deduction death benefits Section 1035 exchange capital gains tax rate

marital deduction

Which of the following is true about a qualified retirement that is "top heavy"? more than 30% of plan assets are in key employee accounts more than 40% of annual additions are for key employee accounts more than 50% of plan assets are in key employee accounts more than 60% of plan assets are in key employee accounts

more than 60% of plan assets are in key employee accounts

Which of these is NOT considered to be an element of an insurance contract? The offer acceptance negotiating consideration

negotiating

If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best describes this policy is called: noncancellable conditionally renewable cancellable guaranteed renewable

noncancellable

If a producer determines that the sale of a Medicare Supplement policy involves replacement, the producer must take all of the following actions, EXCEPT: notify the replaced insurance company give the insured a written replacement notice submit a written replacement notice to the replacing insurance company give a list of all health policies the producer sold to applicant in the past

notify the replaced insurance company

Deductibles are used in health policies to lower: the incidents of fraud the coinsurance amount overuse of medical services adverse selection

overuse of medical services

All of the following statements are true regarding a policy's grace period, EXCEPT: past due premiums are waived Policy loans may still be made Full coverage continues Grace period terms are stated in the policy

past due premiums are waived

If, at the time of an insured's death, the insurance company discovers the that insured's age was missed on the application for life insurance, the company will most likely: deny the claim for proceeds on the basis of fraud collect the correct premiums and pay the claim pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age pay the policy proceeds less a penalty not to exceed 12% of those proceeds

pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age

What is the best description of an Insurer? Person or company that advertises for insurance companies person or company that collects premiums for insurance companies person or company that underwrites an insurance risk and issues an insurance contract person or company that governs insurance rates

person or company that underwrites an insurance risk and issues an insurance contract

Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? Beneficiary Insured policy owner insurer

policy owner

If the policy owner does not pay the premium by the due date, the: policy must be reinstated policy owner is automatically assessed a late charge insurance company cancels the policy policy owner can make the premium payment during the grace period

policy owner can make the premium payment during the grace period

A Limited-Pay Life policy has: graded death benefits no cash value premium payments limited to a specified number of years premium payments that are paid to age 100

premium payments limited to a specified number of years

A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a: rollover plan 403(b) plan profit-sharing plan salary reduction plan

profit-sharing plan

A noncontributory group term life plan is characterized by: the entire cost of the plan is paid for by the employer the entire cost of the plan is paid for by the employee the cost of the plan is shared by both employer and employee both employer and employee must provide evidence of insurability

the entire cost of the plan is paid for by the employer

The amount of coverage on a group credit life policy is limited to: half of the insured's total loan value the insured's total loan value 75% of the insured's total loan value $25,000

the insured's total loan value

According to Nevada Insurance Law, while transacting insurance business, producers act as representatives of: their own finical interest the applicant or insured the insurer

the insurer

A level premium indicates the premium is fixed for a period stated in the contract, then becomes variable the premium can only be changed with the consent of the insurer the premium stays level until the policy's renewal date the premium is fixed for the entire duration of the contract

the premium is fixed for the entire duration of the contract

An individual who purchases a Life annuity is given protection against: inflation the risk of dying prematurely the risk of living longer than expected the risk of not having enough retirement income

the risk of living longer than expected

A disability elimination period is best described as a: time deductible dollar deductible eligibility period probation period

time deductible

Group Life policies in Nevada are required to contain a conversion privilege that allows for conversion: with evidence of insurability to an individual policy for a stated period of time only if the premiums are paid by the employer to an individual policy at anytime

to an individual policy for a stated period of time

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert: to an individual policy, only by providing evidence of insurability to an individual policy, only if the employer pays the premiums to an individual policy upon employment termination to an individual policy with a higher amount of coverage

to an individual policy upon employment termination

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has: waived one of its legal rights Issued a voidable policy committed an act of fraud assigned the risk to a reinsurer

waived one of its legal rights

What type of insurance offers permanent life coverage with premiums that are payable for life? credit life renewable term life whole life endowment

whole life

An agent's license can be suspended or revoked by: writing primarily controlled business not meeting annual sales quota replacing an existing insurance policy with a new one issuing a binding receipt

writing primarily controlled business