Certification Exam

An Ordinary Straight Whole Life policy provides for:

A level premium, level face amount, and cash accumulation until the policy matures

The permanent transfer of ownership in a policy is called:

Absolute assignment

All of the following are required to sign an application for insurance, except: A Producer or agent B Applicant C Beneficiary D Policyowner

Beneficiary

Evidence of group life insurance coverage provided to an employee is the:

Certificate of insurance

The _______ method of determining benefits considers the average fee charged by all doctors in a given geographical area.

Community rating

A receipt issued at the time of application upon the payment of premium that provides coverage effective as of the date of the application or medical exam, as long as the policy is issued as applied, is referred to as a:

Conditional receipt

The initial dollar amount an insured is required to pay annually in a medical expense plan before benefits are payable by the insurer is called the:

Deductible

PPO providers are paid based on which of the following: A Discounted fee-for-service, negotiated in advance B Indemnity fee C Relative Value Scale D Reimbursement fee

Discounted fee-for-service, negotiated in advance

Which of the following is not covered by Medicare Part A? A Doctor's services B Home health care C Skilled nursing D Hospice care

Doctor's services

If an insured is unable to make a premium payment on the due date, which provision will prevent the policy from being cancelled immediately?

Grace period

Which of the following is not one of the 4 elements of valid legal contract: A Legal Purpose B Incompetent parties C Agreement D Consideration

Incompetent parties

Which of the following statements regarding insurable interest is not correct? A Insurable interest is the possibility of economic loss due to sickness or death B An individual has an unlimited insurable interest on him/herself C Insurable interest only applies to individuals related by blood D Insurable interest must exist between the policyowner and insured at the time of application

Insurable interest only applies to individuals related by blood

The Waiver of Premium rider will waive the premium after a specified waiting period if the:

Insured becomes disabled

The insuring clause found in a life insurance contract states the:

Insurer's promise to pay death benefits as long as all conditions are met

A business is concerned that if its top sales producer dies suddenly, the company will suffer a loss due to this loss in expertise, productivity, revenue, and the costs associated with finding a replacement. Which of the following will meet this business use of life insurance? A Buy-sell agreement B Key person life insurance C Joint life D Annuity

Key person life insurance

A substandard risk may be issued based on any of the following, except: A Occupational hazards B Longer than average life expectancy C Dangerous hobbies D Poor health

Longer than average life expectancy

Which of the following classifications covers a disability which occurs either on or off the job? A Contributory B Noncontributory C Occupational D Nonoccupational

Occupational

Minimum requirements for the Core Medicare Supplement Plan A include all of the following, except: A Outpatient prescription drugs B 20% coinsurance for covered medical expenses under Medicare Part B C The cost of the first 3 pints of blood D Medicare Part A hospital copayment for days 61-90 per benefit period

Outpatient prescription drugs

A disability that is presumed to result from the same cause as an immediate prior disability within 6 months of recovery is a:

Recurrent disability

Temporary medical insurance that provides limited benefits for less than 12 months is called:

Short-term medical

A lump sum of money is placed into an account from which the annuitant will draw periodic benefits the following month. This describes a:

Single Premium Deferred Annuity

_____ is not an "activity of daily living" associated with triggering events for Long Term Care policies.

Talking

Social Security disability income benefits are payable as long as all of the following conditions are met, except: A The disability is expected to last at least 5 years B The injured worker is unable to engage in any kind of gainful employment C The worker is totally and permanently disabled for a 5-month waiting period D The recipient has not reached full retirement age

The disability is expected to last at least 5 years

Which provision in health insurance limits the time a policy is contestable to 2 years, except for fraud?

Time limit on certain defenses

A Primary Care Physician is associated with which of the following? A HMO B Traditional health insurance C Major medical D Medicare Part A

Traditional health insurance

The Proof of Loss provision limits the amount of time the insured has to submit proof of loss to the insurer to within:

90 days of the loss

Variable whole life includes all of the following features, except: A Cash value that varies based on the market B A fixed, level premium C Annual renewable term insurance D A guaranteed minimum death benefit

Annual renewable term insurance

Which provision will assure that the life insurance policy premiums are deducted from the cash value if the premiums are not paid directly by the owner at the end of the grace period?

Automatic premium loan

The principal sum in an Accidental Death and Dismemberment policy is the:

Benefit payable to the insured for a single dismemberment

The owner's rights include all of the following, except: A Choose the mortality rate B Select a settlement option C Designate the beneficiary D Take a policy loan

Choose the mortality rate

A characteristic of a medical expense policy where the insured and the insurer share in a percentage of the covered expenses is known as the:

Coinsurance

If the primary beneficiary predeceases the insured, the death benefit is next payable to the _____________beneficiary.

Contingent

The time period an insured must wait after the onset of a disability before any benefits from a disability income policy become payable is the:

Elimination period

Which of the following is the responsibility of an agent? A Classify the risk and calculate premiums B Request necessary medical exams C Explain the policy, provisions, riders and exclusions upon policy delivery D Provide a copy of a credit report to the applicant if requested

Explain the policy, provisions, riders and exclusions upon policy delivery

The settlement option under which payments totaling the death benefit are guaranteed for a specified number of years is referred to as:

Fixed period

The stipulation in a health policy that allows the insured to examine a policy for a specific number of days after delivery and return for a premium refund if desired is called the:

Free look provision

Which of the following is offered on a long-term care policy that locks in guaranteed benefit increases each year the policy is in force? A Respite care benefit B Inflation protection benefit C Waiver of premium D Non-forfeiture benefit

Inflation protection benefit

The insured cannot borrow against the loan value of the policy without the permission and consent of which of the following, if named?

Irrevocable beneficiary

All of the following are correct regarding Annual Renewable Term, except: A The premium increases each year based on attained age B Most group life insurance is annual renewable term C It matures at age 100 D It is pure insurance protection

It matures at age 100

Which of the following correctly describes Medicaid? A It is a qualified long-term care policy and premiums are deductible B It provides medical benefits for qualified low-income individuals C For an additional premium, it supplements Medicare benefits before age 65 D It is only available to seniors age 65 and older

It provides medical benefits for qualified low-income individuals

All of the following are correct regarding taxation of individual life insurance, except: A Policy loans are considered an investment and are always taxable B Individual life insurance premiums are not tax deductible C Lump sum death benefits are not taxable income D Interest paid from a settlement option is taxed as ordinary income

Policy loans are considered an investment and are always taxable

The guaranteed insurability rider allows the insured to:

Purchase additional benefits at specified intervals without insurability

If an insured commits suicide while the suicide clause is in effect, the insurance company will:

Refund the amount of premiums paid

A transaction in which a life policy is purchased when an existing policy is surrendered is called:

Replacement

Statements made by the applicant on a life or health insurance application are true to the best of one's knowledge are considered to be:

Representations

​Which of the following is a cost containment measure for a managed care plan? A Probationary period B Coinsurance C Deductible D Second surgical opinion

Second surgical opinion

If the owner of a business becomes disabled, a Business Overhead Expense plan will cover all of the following except: A The owner's salary B Utility bills C Rent D The employees' salaries

The owner's salary

According to the Entire Contract clause, which of the following constitutes the entire contract of insurance in a health policy?

The policy including provisions, copy of the application, amendments and riders

If a change or correction must be made on the application for insurance, which of the following applies: A The producer can make and initial the change at any time prior to submitting the application B A change cannot be made once the application is signed C The change must be made in red ink D The producer can make the change and applicant must initial the change

The producer can make the change and applicant must initial the change

Which of the following policies will provide for a flexible premium, adjustable death benefit, and a guaranteed minimum interest to be credited to the general account if the current rate falls to the minimum rate? A Variable Universal life B Variable life C Universal life D Adjustable life

Variable Universal life