comprehensive final with ans

Question 99 of 165 A married couple is interested in a life insurance policy settlement option that will guarantee them both an income for as long as they live, an amount which reduces to 2/3 of that initial amount after one of them dies. What should they select? The quiz is currently paused. Life Income Joint and Survivor Life Income Period Certain Joint Life Income Dual Life Income The Life Income Joint and Survivor Settlement Option pays a periodic benefit until the last surviving recipient dies. However, depending upon which survivor option is chosen (e.g. joint-and-full, joint-and-2/3, joint-and-1/2), the benefit paid following the first death could be different.

Question 100 of 165 In the event a policy is delivered by an agent to the insured, and the premium payment is to be collected at the time of this delivery, normally what else must the agent obtain to make the delivery complete? The quiz is currently paused. Additional payment reflecting lost interest An affidavit from the applicant A statement of good health Postage and handling fees It is the agent's responsibility to deliver the policy and verify that the insured has remained in good health.

Question 101 of 165 Which of the following two documents always constitutes part of the entire contract? The quiz is currently paused. Application and Agent's Report Policy illustration and Agent's Report The application and policy Policy and Attending Physician's Statement The entire contract is comprised of the policy itself, the application and any riders attached. The Agent's Report and APS are not included.

Question 102 of 165 An insurer issues a policy other than applied for requiring an additional premium of $100. When would an agreement come into being? The quiz is currently paused. When the producer calls the applicant over the phone and the applicant verbally agrees to the terms When the insurer places the policy into the mail to the producer for delivery to the applicant When the producer receives the policy from the home office When the applicant accepts delivery of the policy and pays the additional premium This is how a counteroffer is accepted.

Question 103 of 165 Withdrawals from a non-qualified annuity that is not part of an annuitization are taxed on which of the following methods? The quiz is currently paused. Last-in, first-out basis (LIFO) First-in, last-out basis (FIFO) Weighted average Cost basis identification A withdrawal is any amount distributed from the annuity that is not part of the annuitization process and will be taxed on a last-in, first-out basis (LIFO). That means for income tax purposes, the first money out of the annuity will be considered as earnings, not principal.

Question 104 of 165 Dividends if declared are paid __________. The quiz is currently paused. Monthly Quarterly Semi-annually Annually Unlike corporate stock which pays dividends typically on a quarterly basis policy dividends if declared are paid out on an annual basis.

Question 105 of 165 Dental expense insurance deductibles are normally waived for all of the following, except: The quiz is currently paused. Routine preventive care Routine exams Routine cleaning Routinely paying premiums on time and in full Dental expense insurance deductibles are normally waived for routine preventive care, exams, and/or cleaning.

Question 106 of 165 What type of disability income insurance pays a benefit to a business to help in the search, cost, and hiring of a replacement when an employee becomes disabled and is unable to work for the company? The quiz is currently paused. Business overhead expense Key employee Buy-sell Reducing term Key Employee Insurance pays a benefit to the business when a key employee becomes disabled by helping pay for a replacement, training a new employee, or loss of revenue due to the disabled employee's lack of work.

Question 10 of 165 The relationship of a person who acts on behalf of a company whereby the person's actions can bind the company is known as: The quiz is currently paused. The law of large numbers Surplus lines or excess insurance Brokerage business The law of agency The law of agency states the principal is responsible for acts of their agents.

Question 12 of 165 Which of the following is not a valid nonforfeiture benefit option required when the nonforfeiture provision is included in a life insurance policy? The quiz is currently paused. Extended term Contingent paid-up Shortened benefit period Reduced paid-up The nonforfeiture provision provides a benefit in the event of a default in the payment of any premiums, and the reduced paid-up, extended term, shortened benefit period, and other options approved by the U.S. Secretary of Health and Human Services can be selected.

Question 13 of 165 No assignment of a policy will be binding on the insurer, unless: The quiz is currently paused. It is accompanied by supporting legal documentation It is determined to be a valid by the insurer It is in writing and received at the insurer's home office Sworn affidavits accompany the request No assignment of the policy will be binding on the insurer unless it is in writing and received at the insurer's home office. The insurer is not responsible for determining the validity of the assignment.

Question 14 of 165 Which of the following statements about Equity Indexed Life insurance is TRUE? The quiz is currently paused. The policyowner can decide which separate accounts to invest the policy's cash values into The insured/owner bears all risk regarding cash surrender value, as negative stock market performance can cause the cash values to decrease The interest credited to the policy is based off of the performance of a stock market index like the S&P 500 To sell Equity Indexed Life, a producer only needs a securities license The attraction of this policy is that potentially the interest credit can be higher than what a typically insurer's general account can pay by tying the potential interest credit to a stock market index. Based on the design of the policy, if the index falls in value there is no negative impact to existing cash values.

Question 17 of 165 The nonforfeiture option that provides the least amount of coverage is: The quiz is currently paused. Convertible Term Reduced Paid-Up Extended Term Automatic Premium Loan Extended term provides the most amount of coverage for the least amount of time, whereas reduced paid-up provides the least amount of coverage for the longest period of time.

Question 18 of 165 A Small Employer is defined as any person, firm, corporation, partnership, or association that is actively engaged in business and has ______ employees or less. The quiz is currently paused. 2 20 50 100 A Small Employer is defined as any person, firm, corporation, partnership, or association that is actively engaged in business and has 50 employees or less.

Question 1 of 165 This organization is licensed in one state and may insure members in other states consisting of a large number of similar units with similar risk exposures such as theme parks, go-cart tracks, or water slides is known as a(n) _________. The quiz is currently paused. Fraternal Benefit Association Lloyd's of London Association Risk Retention Group Reciprocal Insurance Company A risk retention group is a group owned insurer that primarily assumes and spreads the liability of related risks of its members with each member assuming a portion of the risks insured. Question 1 of 165 C has duplicate coverage with companies X and Y ($2,000 with X and $3,000 with Y). If C suffers a loss of $1,000, based on the insurance with other insurers provision, how much will company X have to pay out as a claim? The quiz is currently paused. $1,000 $600 $400 Zero Under the insurance with other insurers provision, each company will pay in proportion to the total coverage that is in force. Dividing company X's coverage amount with the total coverage in force results in the proportion company X must pay: 2,000/5,000 = 40%. Multiplying the amount of the loss by company X's proportion results in company X's share of the loss: $1,000 x 40% = $400.

Question 2 of 165 To encourage annuity holders to leave funds in the policy until retirement, insurance companies can assess a(n) __________ for withdrawals. The quiz is currently paused. Tax penalty Interest penalty Surrender charge Fine If a deferred annuity is surrendered during the early part of the accumulation period, the insurer normally assesses a surrender charge.

Question 19 of 165 HMOs may provide one or more of the following supplemental benefits, except: The quiz is currently paused. Prescription drugs Psychological services Physical therapy Private hospital rooms Private rooms are not normally covered under HMOs, unless determined to be medically-necessary.

Question 20 of 165 Which Act was implemented in order to protect consumers from questionable Medicare Supplement Policy marketing practices? The quiz is currently paused. COBRA NAIC Model Law HIPAA OASDHI NAIC Model Law requires all Medicare Supplement policies to be standardized.

Question 21 of 165 Every Long-Term Care policy must provide a ______-day free look period from the date the policy is delivered. The quiz is currently paused. 10 15 30 60 Every Long-Term Care policy must provide a 30-day free look period from the date the policy is delivered.

Question 22 of 165 It is the _________ who issues a Certificate of Authority enabling an insurer to conduct insurance business within a particular state. The quiz is currently paused. State Congress Secretary of State State Insurance Commissioner State Senate In order for an insurer to operate as an admitted or authorized insurer, the insurer must hold a Certificate of Authority issued by the State Insurance Commissioner, Superintendent, or Director.

Question 23 of 165 What is an impairment rider? The quiz is currently paused. It guarantees the insured's future insurability It excludes specific conditions that normally would cause the entire policy to be declined It pays out an additional benefit in cases where the cause of loss is a result of an accident It pays out an additional benefit if the insured cannot perform 2 of the 5 specified functional activities An impairment rider is a rider added to a policy that will exclude specific conditions that would normally cause a policy to be declined. The use of this rider allows an insured to qualify for a policy with the exclusion attached, where they would otherwise be declined altogether.

Question 24 of 165 All of the following are Optional Uniform Provisions, except: The quiz is currently paused. Illegal Occupation Legal Actions Change of Occupation Misstatement of Age Legal Actions is a Mandatory Uniform Provision. All other responses are Optional Uniform Provisions.

Question 25 of 165 To be fully insured for Social Security, generally a person must have worked and paid into the Social Security system for a minimum of ______ years. The quiz is currently paused. 10 20 30 40 To be fully insured for Social Security, the requirement is to accumulate 40 credits or 10 years of work paying social security taxes. A maximum of four credits may be earned in one calendar year of employment.

Question 26 of 165 Which of these is a Mandatory Uniform Provision? The quiz is currently paused. Misstatement of Age Legal Actions Conformity with State Statutes Illegal Occupation The only choice which is a Mandatory Uniform Provision is Legal Actions. All other responses are Optional Uniform Provisions.

Question 27 of 165 A Basic Hospital Expense Policy provides coverage for the insured while ________. The quiz is currently paused. In rehabilitation Confined to the hospital At home In a nursing home A Basic Hospital Expense Policy covers hospital expenses as an inpatient.

Question 28 of 165 According to the Texas Insurance Code, which insurance company is organized or incorporated in Canada? The quiz is currently paused. A domestic insurer A foreign insurer An alien insurer An admitted insurer An alien insurer is organized under the laws of a jurisdiction outside the United States, regardless of whether it is admitted to do business in this state.

Question 29 of 165 Variable Whole Life has all of the following features, except: The quiz is currently paused. The owner may select which separate account they want their premium to be invested in The policy provides for both a general account and a separate account The premium is determined by the insurer and remains fixed and level throughout the contract Partial surrender are allowed Partial surrenders are not allowed from a variable whole life policy.

Question 30 of 165 Optional uniform provisions found in health insurance policies are designed to protect the: The quiz is currently paused. Insurer Producer Agency Insured Optional Uniform Provisions are designed to protect the insurer.

Question 31 of 165 In the event total disability continues beyond a specified period of time, future premiums will not be required to be sent in to the insurer for the duration of the disability. This optional rider is called the _________ rider. The quiz is currently paused. Waiver of premium Return of premium Impairment Lifetime benefit In the event total disability continues beyond a specified period, future premiums will be waived by the insurer for the duration of the disability with a waiver of premium rider.

Question 32 of 165 An insured may find it more difficult to qualify for benefits, but will enjoy a lower premium, when a more restrictive definition of _________ is found in a Disability Income policy. The quiz is currently paused. Benefit Rehabilitation Disability Transplant Some policies require the insured to be unable to perform the duties of any occupation for which he/she is reasonably suited by education, training and experience.

Question 33 of 165 Who does not qualify for exemption from continuing education requirements necessary to maintain an insurance license? The quiz is currently paused. Nonresident agent Agent licensed for 25 years Agent who is in a coma Agent who serves in the Army Reserves In order to qualify for an exemption for military duty, an agent must be on active duty in a combat theater.

Question 34 of 165 Which of the following regarding Medicare Part B is true? The quiz is currently paused. Generally pays 80% of covered physician, surgeon, and outpatient hospital expenses, with a monthly premium and annual deductible Provides coverage for inpatient services It is free for those who qualify It covers routine dental checkups Part B - Medical Insurance (Outpatient) is a voluntary program of government-subsidized insurance requiring participants to make premium payments.

Question 35 of 165 Which of the following is not a prohibited claims practice? The quiz is currently paused. Misrepresenting a material fact to a claimant Requiring a claimant's income tax return while investigating an arson fire Refusing to pay a claim without reasonably investigating it Requiring an insured to release the insurer from a claim in order to receive a partial payment Requiring a claimant's federal income tax return to settle the claim is an unfair claim settlement practice unless a court orders that such returns be provided or the claim involves a fire/arson loss, lost profits, or lost income.

Question 36 of 165 Upon termination of a group life policy, an individual insured is entitled to convert coverage if he/she has been covered under the group policy for at least: The quiz is currently paused. 6 months 1 year 3 years 5 years An individual insured is entitled to convert coverage from a group life policy if he/she has been covered under the group policy for at least 5 years.

Question 37 of 165 Group Accidental Death and Dismemberment premiums are _______ by the company paying the premiums as a business expense. The quiz is currently paused. Tax-Deferred Taxable Deductible Tax-Free Group Accidental Death and Dismemberment premiums are tax deductible by the business owner. Benefits are paid income tax-free because they are not considered income.

Question 38 of 165 Which of the following will cover the cost of inpatient blood transfusions after the first 3 pints? The quiz is currently paused. Medicare Part A Medicare Part B Long-Term Care Medicare Part D Medicare Part A includes coverage while the insured is hospitalized for blood transfusions after the first 3 pints of blood.

Question 39 of 165 The grace period for an individual health insurance policy being paid on a quarterly basis is: The quiz is currently paused. 7 days 10 days 31 days 45 days 7 days for weekly; 10 days for monthly; and 31 days for all other payment modes (quarterly, semi-annual, and annual).

Question 40 of 165 When is a cross purchase buy-sell agreement plan used? The quiz is currently paused. When the entity does not have the funds necessary to pay for policies on each of the owners When insurability is an issue When parties purchase life insurance on each other When individual tax deductions are needed A Cross Purchase Plan is used when parties purchase life insurance on each other. At the death of one of the parties, policy proceeds are used to purchase that person's interest in the business from his/her heirs. Each partner owns insurance on each of the other partner(s).

Question 41 of 165 Open enrollment periods are offered on a(n) ______ basis that allows individuals to enroll without evidence of insurability or to make changes. The quiz is currently paused. Annual Bi-annual Semi-annual Quarterly Open enrollment periods are offered on an annual basis that allows individuals to enroll without evidence of insurability or to make changes.

Question 42 of 165 Which principle states that an insured may be reimbursed up to the amount of the actual loss? The quiz is currently paused. Large Numbers Indemnity Adverse Selection Insurable Risk The Principle of Indemnity states that the insured should not profit from an insurance transaction, but should be restored in whole or in part to their prior condition.

Question 43 of 165 What is the Health Insurance Marketplace? The quiz is currently paused. It is a physical location in every major city where consumers can go to shop and compare insurance policies and companies It is a resource where consumers can learn about their health insurance coverage options and compare plans It is like a stock exchange where insurers can make offers to obtain more business from their competitors It is a clearinghouse where consumers are automatically matched with companies and enrolled in their plans The Health Insurance Marketplace is a resource where individuals, families, and small businesses can learn about their health coverage options, compare health insurance plans, choose a plan, and enroll in coverage.

Question 43 of 165 What is the Health Insurance Marketplace? The quiz is currently paused. It is a physical location in every major city where consumers can go to shop and compare insurance policies and companies It is a resource where consumers can learn about their health insurance coverage options and compare plans It is like a stock exchange where insurers can make offers to obtain more business from their competitors It is a clearinghouse where consumers are automatically matched with companies and enrolled in their plans The Health Insurance Marketplace is a resource where individuals, families, and small businesses can learn about their health coverage options, compare health insurance plans, choose a plan, and enroll in coverage.

Question 44 of 165 Level, decreasing and increasing term refer to which policy feature? The quiz is currently paused. Death benefit Premium Cash value Renewable and Convertible The words level, decreasing and increasing as they apply to term insurance describe the death benefit, rather than the premium. Term life insurance has no cash value. Term life premiums can be level or increase, then never decrease.

Question 45 of 165 Social Security Benefits provided are: The quiz is currently paused. Retirement, Death, and Survivor Retirement, Disability, and Unemployment Retirement, Survivors, and FICA Retirement, Death, and Dependent Care The Social Security System provides Retirement, Death, and Survivor benefits.

Question 46 of 165 Regarding COBRA, which of the following is not true? The quiz is currently paused. It covers participants who have resigned for 36 months following the date of their resignation It provides continuation of coverage for 29 months for the disabled It provides continuation of coverage for 36 months for a surviving spouse It provides continuation of coverage for 36 months for an individual losing dependent status Termination of employment other than for gross misconduct allows former employees and their dependents a maximum of 18 months of continuation.

Question 47 of 165 ___________ manufacture and sell insurance coverage in the form of policies or contracts of insurance. The quiz is currently paused. Insureds Producers Agencies Insurers Insurers manufacture and sell insurance policies through agencies and producers to applicant/insureds.

Question 48 of 165 An insurer NOT authorized to do business within this state is considered what type of insurer? The quiz is currently paused. Foreign Domestic Non-Admitted Certified Admitted An insurer NOT authorized to do business in this state is referred to as Non-admitted, and could be either domestic, foreign, or alien domiciled.

Question 49 of 165 Case managers do all of the following, except: The quiz is currently paused. Determining the appropriate course of action for the insured Requiring a referral or second opinion prior to approving a procedure Providing the necessary care Managing the utilization review of a hospital stay A case manager may be assigned to a case to determine the appropriate course of action for an insured. The case manager may require a referral or a second opinion before approving a procedure. The case manager will also manage the utilization review of a subscriber's stay in the hospital.

Question 50 of 165 A type of provider that consists of employers who pay claims out of their own funds instead of funding claims as an insurer is known as what type of provider? The quiz is currently paused. Indemnity Service Self-Insured Practicing medical A self-insured providers (self-funded) consists of employers who pay claims out of their own funds instead of funding claims through an insurer.

Question 51 of 165 Guaranteed Renewable means: The quiz is currently paused. Renewable with adjustable premiums determined by frequency of claim Renewable with guaranteed premium Renewable with adjustable premiums, by classification only Renewable only at the option of the insurer The Guaranteed Renewable Provision does allow the insurer to adjust premiums upon renewal, but by class only, not on an individual basis. A class of insureds is based on age or other uniform, nondiscriminatory method.

Question 52 of 165 All of the following are prohibited provisions in a long-term care policy, except: The quiz is currently paused. Cancels, nonrenews, or terminates the policy on the grounds of age or deterioration of the mental or physical health of the insured Limits or denies benefits to a policyholder who is diagnosed with any destructive brain tissue disease that will result in loss of brain function Cancelling a policy due to nonpayment of premium Provides coverage for only skilled nursing care instead of lower levels of care A Long-Term Care policy may only be cancelled by the insurer for nonpayment of premium.

Question 53 of 165 If a child is covered under more than one group health insurance plan how is it determined which carrier is primary? The quiz is currently paused. The younger parent's plan will become primary The plan covering the parent whose birthday occurs first in the calendar year will be the children's primary coverage The date of birth of the child that is closest to either parent becomes primary The parent whose date of birth is closest to the end of the year determines which is primary In the event children are covered by more than one group plan, the 'birthday rule' which says the plan covering the parent whose birthday occurs first in the calendar year will be the children's primary coverage.

Question 54 of 165 A client wants to make sure that they can have a permanent life insurance policy several years from now when they can afford it without having to prove insurability. What feature should they make sure they have on their new term life insurance policy? The quiz is currently paused. Flexibility Renewability Convertibility Adjustability Convertibility allows for the conversion of term to permanent without proof of insurability.

Question 55 of 165 With Long-Term Care Insurance coverage, the longer the _________is, the higher the premium is. The quiz is currently paused. Waiting Period Elimination Period Benefit Period Preexisting Period A long benefit period is more costly to the insurer. Therefore, the premium is higher.

Question 56 of 165 The Mode of Premium provision addresses: The quiz is currently paused. Whether or not the insurer or producer will accept cash When premiums can be skipped The method of premium payment To whom the premiums are payable to The Mode of Premium provision addresses the frequency of premium payments (monthly, quarterly, semiannually or annually), and to whom the premiums are payable to.

Question 57 of 165 Bill is a retired military officer suffering from complications caused by Agent Orange exposure during his military service. He is now hospitalized in the local Veterans Administration Hospital and has incurred $54,510 in medical expenses to date. The private health insurance he now owns will likely pay: The quiz is currently paused. The full $54,510 or the policy limit, whichever is lesser One-half ($27,255) and the government will pay the rest One-fourth ($13,627.50) and the government will pay the remaining three-fourths Nothing, as the loss would likely be excluded under his private health insurance The private policy that Bill now owns would pay nothing because the care he received was in a governmental facility, which is a standard exclusion under his private policy.

Question 58 of 165 A public school teacher may contribute part of his or her paycheck income into a ____ plan and defer income taxes on not only the contribution but also the growth in the plan. The quiz is currently paused. SIMPLE 403(b) Keogh/HR 10 401(k) Profit Sharing Plan A 403(b) is specifically intended for public school employees and employees of certain other non-profit organizations.

Question 59 of 165 The nonforfeiture option that provides protection to age 100 is: The quiz is currently paused. Paid-up Additions Cash Surrender Extended Term Reduced Paid-Up With Reduced Paid-Up, the Present cash value is used to buy a single premium, permanent paid-up policy of a reduced face amount. Coverage will continue to age 100.

Question 60 of 165 An insurer must maintain a record of complaints received during the preceding: The quiz is currently paused. 5 years 4 years 2 years 3 years An insurer must maintain a record of complaints received during the preceding 3 years.

Question 61 of 165 Accident and Health Insurance provides coverage for two major categories of perils. They are: The quiz is currently paused. Driving under the influence and driving while intoxicated On the job and off the job Accidental injury and sickness Automobile and home health care Accidental injury and sickness are the general perils insured. Intentional losses are excluded.

Question 62 of 165 _________ consist(s) of the amount of premium that is returned to the policyowner if the insurer achieves lower mortality and expense costs than expected. The quiz is currently paused. A policy loan A dividend The cash value The death benefit A participating insurer's dividend consists of the amount of premium returned to the policyowner if the insurer achieves lower mortality and expenses than expected.

Question 63 of 165 Which of the following is true of Medicare Part A, in terms of coverage? The quiz is currently paused. None of the answers listed Helps pay for routine physical exams Helps pay for outpatient services Helps pay for hospital care and skilled nursing facility care as an inpatient plus home or hospice care Part A covers inpatient hospital services, home health care and hospice care.

Question 64 of 165 In a whole life policy, cash value must be made available to borrow against after _____ years. The quiz is currently paused. 5 4 3 2 In whole life policies, cash values must be made available to borrow against after 3 years.

Question 65 of 165 What document is provided to group health insurance members instead of an insurance policy? The quiz is currently paused. Declarations Certificate of Authority Evidence of Coverage Certificate of Coverage It is provided to the group members instead of an insurance policy, includes any evidence of coverage issued pursuant to a group health policy, and the insured's rights and benefits.

Question 66 of 165 Concerning COBRA, which of the following is correct? The quiz is currently paused. Applies to employers with 20 or more employees Provides employees and dependents 36 months of continuation of coverage after termination of employment Provides 36 months of continuation of coverage for disabled participants Provides 18 months of continuation of coverage for dependents of Medicare-eligible employees Federal law mandates that employers with 20 or more employees provide a COBRA option. Termination of employment provides only 18 months of continuation. Qualifying events for dependents only (not employees) permit continuation up to 36 months.

Question 67 of 165 Which of the following is not true about small employer plans? The quiz is currently paused. At least 75% of a small employer's eligible employees must participate in the group policy A small employer must purchase health coverage for his employees A small employer carrier may not exclude an eligible employee or dependent An adopted child may be enrolled within 31 days after the adoption becomes final A small employer is not required to purchase health coverage for his employees.

Question 68 of 165 The insured may select a managed care version of a traditional Medicare Supplement Policy at a lower premium by choosing a policy that limits care to a specific list of hospitals and physicians. This would be called a: The quiz is currently paused. Medicare Select Policy Medicare Supplement Policy Medicaid Select Policy Medicaid Supplement Policy Medicare Select is a variation of a traditional Medicare Supplement Policy that may require you to use specific hospitals and doctors within its network to be eligible for full benefits. Non-network expenses are paid to the same extent that Medicare covers the cost. Medicare Select is not sold in all states.

Question 69 of 165 LTC coverage for such things as occasional visits and care by registered, practical or vocational nurses or a hospice organization in the home would be a feature of: The quiz is currently paused. Home Health Care Adult Day Care Custodial Care Intermediate Care Usually, a private nurse or a state-licensed home health care agency provides Home Health Care in the home of the patient.

Question 70 of 165 _______ income benefits received by an employee are subject to taxation in proportion to the amount of premium that the employer paid. That income attributable to the employee's premium is not taxable. The quiz is currently paused. Disability Medical Dental Long-Term Care Disability income premiums paid by the employer are deductible to the employer and are not considered part of the employee's income. Because of this, benefits received are treated as income to the employee to the extent that the employer paid the premiums.

Question 71 of 165 Precertification, Mandatory Second Surgical Opinion, and Concurrent Review are provisions in health insurance policies known as: The quiz is currently paused. Miscellaneous Provisions Policy Abilities Provisions Case Management Provisions Protect Insurer Provisions They are included as Case Management Provisions, sometimes referred to as Cost Containment Provisions.

Question 73 of 165 In a policy summary all of the following must be shown on both a guaranteed and non-guaranteed basis, except: The quiz is currently paused. Dividends Premiums Cash values Interest rates Dividends are never guaranteed.

Question 74 of 165 A Disability Income Policy has a period of deductibility immediately following a disability during which time benefits are not payable. This period is called a(n): The quiz is currently paused. Loss of Income Loss of Time Elimination Period Waiting Period A policy may state 6 months elimination period for sickness and immediate coverage or as little as 7 days in case of an accident. Although waiting period means the same thing, elimination period is the most correct term.

Question 75 of 165 A fine may be imposed for the following, except: The quiz is currently paused. Failing to notify the Department of an administrative action against the agent Failing to comply with continuing education requirements Failing to report an address change to the Department Failing to follow the insurer's sales procedures A fine would not be imposed on an agent for failing to follow the insurer's sales procedures

Question 76 of 165 H has an annuity funded with pre-tax dollars. So far H has placed $10,000 into the policy and it is now worth $25,000. If H cashes out the annuity, how much is taxable? The quiz is currently paused. $25,000 $15,000 $10,000 Zero Since the contributions are pre-tax and the earnings are tax-deferred, the entire amount is taxable upon withdrawal.

Question 77 of 165 Which of the following is NOT a reason for which the Commissioner may revoke, suspend, or refuse to renew a license? The quiz is currently paused. Been convicted of a felony Issued insufficient coverage to a customer through apparent authority Obtained a license by misrepresentation Offered a premium rebate to an insured If a licensee issues insufficient coverage to an individual through apparent authority, this is not grounds for license suspension, non-renewal, or revocation. Being convicted of a felony, obtaining a license by fraud or misrepresentation, and offering a premium rebate to an insured are all grounds for license suspension, non-renewal, or revocation.

Question 78 of 165 The type of disability coverage purchased by a small business owner, to cover ongoing overhead in the event of the owner becoming disabled, would be called: The quiz is currently paused. Disability Reducing Term Key Employee Insurance Buy-Sell Agreement Business Overhead Expense Business Overhead Expense provides the funds to cover the overhead expenses of a business when the owner becomes disabled, such as office rent, employee labor, etc.

Question 79 of 165 Basic expense policies typically cover all of the following, except: The quiz is currently paused. Hospital expenses Medical expenses Routine vision (optometry) or dental care expenses Miscellaneous expenses Basic expense policies (basic hospital, surgical and medical expense) typically do not cover routine vision (optometry) or dental care.

Question 80 of 165 What must a producer give an insured who purchased an accident and health policy no later than policy delivery? The quiz is currently paused. The company's rate book Any and all sales literature An outline of coverage (also called a policy summary) Claim forms An outline of coverage (also called a policy summary) must be provided to a prospective buyer of health insurance at the time of application or policy delivery. The outline of coverage includes benefits, premiums, and other relevant information regarding the sale of the policy.

Question 81 of 165 A mother with a teenage son purchases a life policy on his life. The policy includes an optional rider called the Payor Benefit. What will happen to the policy if the mother dies or is disabled before her son reaches age of majority? The quiz is currently paused. The amount of coverage is reduced as the policy is paid up The policy would pay out a modest lump sum to the beneficiary The premiums would be suspended and later paid back by the son The premiums on the son's policy would be waived until the son reaches a specified age The Payor Benefit Rider is used in third-party policies in which the insured and owner are not the same. The insurer continues the policy as if the owner were still making premium payments.

Question 82 of 165 Which of the following is NOT an unfair claims practice? The quiz is currently paused. Misrepresenting pertinent policy facts or provisions to claimants Requiring an insured to sue by offering less than the amount due Promptly acknowledging communications pertinent to a claim Failing to attempt, in good faith, to promptly, fairly, and equitably settle a claim in which the insurer's liability has become reasonably clear Promptly acknowledging communications pertinent to a claim is required with respect to claim practices.

Question 83 of 165 The purpose of the Re-Entry Term option is to: The quiz is currently paused. Obtain a permanent plan of insurance that builds cash value Obtain a new term policy at a lower rate Continue on with the existing policy but with a larger face amount Extend the length of time the original policy can be in effect The main purpose of a Re-Entry Term option is to allow a healthy insured to acquire a new term life insurance policy at a rate lower than what is currently being charged on the existing policy.

Question 84 of 165 Universal Life and Variable Universal Life share all of the following characteristics, except: The quiz is currently paused. Flexible premiums Adjustable death benefit options Policy loans, surrenders, and partial withdrawals are permitted The investment risk But like Variable life, a VUL has a separate account that is maintained and the investment return fluctuates based on the performance of the separate account. Since there is no guaranteed return on the separate account, the owner bears all investment risk.

Question 85 of 165 A licensee may be disciplined for all of the following continuing education compliance violations, except: The quiz is currently paused. Providing false evidence of compliance with continuing education requirements Using unauthorized materials during an exam Failing to pay an automatic fine within 30 days after properly requesting a hearing Receiving another student's assistance during an exam It is a violation if a licensee fails to pay an automatic fine within 90 days, unless properly requesting a hearing.

Question 86 of 165 Which annuity is the only one regulated by the SEC, FINRA, and State insurance departments? The quiz is currently paused. Fixed Market Value Adjustment Indexed Variable Variable annuities are regulated by the SEC, FINRA, and State insurance departments.

Question 87 of 165 The individual who has the ownership rights of a policy is called the: The quiz is currently paused. Policyowner Insured Applicant Beneficiary Typically, the owner, insured and applicant would be the same person, but not always, as in the case of third-party ownership (e.g. juvenile policies, key person policies, etc.) In this case, even though the owner is not the insured, he or she still controls every right that the policy affords.

Question 88 of 165 The Time Limit on Certain Defenses (Incontestable) period is _____ years under individual health and disability contracts. The quiz is currently paused. 2 3 5 7 The Time Limit on Certain Defenses (Incontestable) period is 2 years.

Question 8 of 165 An illness or disease that is contracted after the probationary period has ended is a: The quiz is currently paused. Pre-existing condition Sickness Dread disease Dread An illness or disease that is contracted after the probationary period has ended is considered a sickness. Pre-existing conditions occur before the end of the probationary period.

Question 9 of 165 Individuals covered under a Blue Cross/Blue Shield HMO plan are typically referred to as: The quiz is currently paused. Insureds Members Subscribers Participants HMOs and PPOs typically refer to their insureds as 'subscribers'. True indemnity plans would use only the term 'insureds'.

Question 89 of 165 ERISA sets minimum standards for pension plans primarily in the ______ industry. The quiz is currently paused. Public Private Quasi-government Public and Private ERISA focuses in on the private industry pension plans.

Question 90 of 165 How can an annuity payout an income benefit income tax free? The quiz is currently paused. Purchase the annuity within a Roth IRA account When the annuitant is over age 70 1/2 When the annuity payout is going to the estate of the deceased When the annuity was purchased as a Traditional IRA with premiums tax deductible The Roth IRA allows for distributions free from income tax if the Roth IRA rules are followed.

Question 91 of 165 How can an annuity help fund college for a child or grandchild in an tax-efficient and effective manner? The quiz is currently paused. Use the interest only option Choosing a life only settlement option By cashing out the annuity and using the proceeds to pay off the college bill in one lump sum Through systematic withdrawals or proper settlement option selection An annuity can provide funds to help offset the costs of a college education. Using a systematic withdrawal or a settlement option will provide for an income stream to help meet or offset some of the expenses incurred.

Question 92 of 165 KEOGH plans have been largely replaced by ________ plans, which have the same contribution limits, but much less paperwork. The quiz is currently paused. Profit sharing 401(k) SIMPLE SEP IRA KEOGHs have been largely replaced by SEP IRAs, which have the same contribution limits, but much less paperwork.

Question 93 of 165 A Short-Term Disability Policy generally is for a disability lasting for: The quiz is currently paused. Not more than 2 years 2-3 years 3-5 years 2 weeks A Short-Term Disability is always defined as less than 2 years' duration.

Question 94 of 165 The following are examples of boycott, coercion, or intimidation, except: The quiz is currently paused. Offering a premium discount or credit that is not specified in the policy Unreasonably disapproving a policy that provides requisite coverage Coercing a debtor into getting requisite insurance through a particular agent Requiring a mortgager to pay a handling charge on a policy required to secure a loan Offering a premium discount or credit not specified in the policy constitutes rebating and not boycott, coercion, or intimidation.

Question 95 of 165 What is the name of the person named in the annuity policy to potentially receive any residual benefits? The quiz is currently paused. Annuitant Beneficiary Insured Owner The beneficiary is the individual or person named in the contract to potentially receive benefits if the owner and/or annuitant die prior to annuitization or if the settlement option selected offers any residual benefit after the annuitant's death.

Question 96 of 165 When an applicant for life insurance faces potential financial loss in the event of injury or sickness of an insured, it is said the applicant has: The quiz is currently paused. Indemnity rights Beneficiary status Incidents of ownership Insurable interest Insurable interest in life insurance is based upon a reasonable expectation of pecuniary advantage through the continued life of another person and consequent loss by reason of that person's death or a substantial interest engendered by love and affection in the case of individuals closely related by blood or law.

Question 97 of 165 A licensed agent is required do which of the following before transacting insurance in Texas? The quiz is currently paused. Obtain an appointment from an insurer Pass an appointing exam Obtain a Certificate of Authority Obtain an insurance counselor's license Licensed agents are not permitted to transact insurance as an agent until they have been appointed by an insurer authorized to transact insurance in this state.

Question 98 of 165 The nonforfeiture option that provides protection equal to the policy's face amount for a specified number of years and days is: The quiz is currently paused. Paid-up Additions Cash Surrender Extended Term Reduced Paid-Up With Extended Term, the Present cash value is used to buy a single premium term policy of the same face amount for as long a period as it will buy, expressed a combination of years and days. This option is sometimes referred to as the Automatic (or Default) Option if no other option has been selected. This option and the policy will expire prior to age 100.