Connecticut life and health state exam simulator

In Connecticut, a temporary license may be issued for a period Not to exceed_____days.

180

Who is protected with the " other insurance with this insurer" provision?

Insurance company

Where will a life insurance policy's proceeds be directed to if all of the beneficiaries die before the insured?

Insured's estate

Which of these statements reflects in accurate portrayal of Medicare select?

Insured's uses preferred providers in exchange for paying lower premiums

Who is required to notify the producer in the event of Appointment termination?

Insurer

Which of the following causes of disability is not covered under Connecticut Worker's Compensation laws?

Intentional, self-inflicted injuries that occur at the worksite

Which of these statements is not true regarding a cash value loan against a life insurance policy?

Interest payments made by policyowner are deductible

Andy is in need of health care performed by skilled medical practitioners, but only in intermittent basis. What level of care what his doctor likely prescribe?

Intermediate care

When compared to a fixed annuity, a variable annuity has what distinguishing feature?

Investment risk is assumed by the purchaser

Which of the following is associated with an immediate annuity?

Lack of an accumulation period

Which of the following does TRICARE provide accident and health coverage to?

Military families

In Connecticut, false advertising is an example of

Misrepresentation

Which of the following best to find the illegal act of twisting

Miss representing a policy for the purpose of inducing a policyholder to change or replace an existing policy

The insured's consideration given for a health insurance policy is

The first premium payment in the application

When disability buy-sell insurance benefits exceed a partnership cost basis, which of the following is correct?

The full amount is non-taxable to the partner

An individual who intentionally violate to Connecticut insurance law may be subject to a maximum fine of

$5000

To be classified as a small employer in Connecticut, and employer must employ how many eligible employees?

1 to 50

The free look period provided in a life insurance policy is usually

10 days

Premature IRA distributions are subject to a penalty tax of

10%

What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?

100%

The health insurance premiums paid for by each partner in a partnership is considered to be

100% tax deductible

Within______months of passing the Connecticut producer licensing exam, an individual must apply for and be issued a license or be required to retake the exam.

12

The maximum prison sentence given under federal law for unfair and deceptive insurance practices is

15 years

A survivorship life insurance policy usually covers how many lives?

2

A life insurance policy that is paid annually must contain a grace period of at least _____ days.

30

Any administrative action taken against a producer MUST be reported to the commissioner within _____ days.

30

Any administrative action taken against a producer must be reported to the commissioner with an______days after the final disposition.

30

Producers licensed in Connecticut must notify the insurance department within___days of any change of name or address.

30

Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insureds death?

30-year decreasing term

Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?

60 days

Which of the following is an example of defamation?

A brochure including an untrue statement regarding a competitor's ability to pay claims

Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?

Accidental Death and Dismemberment

A(n) ____________ insurer operates in the U.S but is headquartered outside the U.S.

Alien

a _________ Ensure operates in the United States but is headquartered outside the United States.

Alien

An order issued by the commissioner that prohibits a specific practice listed in the order is called a

Cease and desist order

When does the insured stop making payments under a 30 payment whole life policy?

At the time of death or 30 years after the policies inception, which ever comes

What is the tax treatment of benefit payments for a non-qualified annuity?

Benefit payments are always fully taxable

A life settlement_________negotiate the life settlement between a policy owner in a life settlement provider.

Broker

A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?

Business Overhead Expense

Which of these Is not considered to be a cost connected with an individual's death?

Business expenses

Which of the following types of insurers limits the exposures it writes to those of its owners?

Captive insurer

Medical costs and birthing centers are lowered by

Certified nursing midwives

What type of employee welfare plans are not subject to ERISA regulations?

Church plans

A consultant derives their income from which source?

Client

Prepaid dental plans differ from most other types of dental plans in what way?

Closed panel of dentists can only be used

A prospective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of

Coercion

Which of the following is considered to be an example of unfair restraint of competition?

Coercion

Which of these is not a punishment for committing an unfair or prohibited insurance practice?

Community service

Life settlement brokers are not allowed to

Complete transactions prior to being approved for a license

A______is a licensee who charges a fee for contracted insurance advisory services.

Consultant

In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange?

Contact the employer if an employee stops coverage under a plan offered in the exchange

Which of the following does not involve a life settlement transaction?

Converting term life coverage to whole life insurance

Which of the following disability buy sell agreement is best suited for businesses with a limited number of partners?

Cross purchase agreement

What type of doctor ordered care assist in individual with performing basic daily activities such as bathing dressing and eating?

Custodial care

Health providers are compensated by a preferred provider organization for normal dental procedures by what means?

Decreased fee schedules

All of these are used to prevent adverse selection of the group dental plan except

Decreased participation

Elimination periods Typically apply to

Disability policies

An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?

Distribution is subject to federal income tax withholding

Group life plans sold in Connecticut typically contain a conversion option. If the insured's Elects this option, the new policy

Does not require evidence of insurability

When dealing with long-term care coverage, which of the following are classified as ALDs?

Eating,bathing,dressing, mobility

A temporary license may be issued to which of the following?

Employee of a disabled producer

When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as

Facultative reinsurance

An example of an unfair claim settlement practice is

Failing to promptly investigate and settle legitimate claims

Which of the following would be considered a violation of Connecticut insurance law?

Failure to remit premium in a timely manner

A producer is meeting with a client to determine whether in annuity will be suitable for purchase. Which of the following topics needs to be discussed with the client?

Financial status of the client

A _________insurance business in a state other than the one in which is domiciled.

Foreign

An annuity contract maybe return them for refund during the

Free look period

John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?

Given written consent by the state insurance regulatory agency

An insurer may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?

Good health statement

A producers license may only be suspended or revoked if the producer

Has been afforded the right to hearing

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?

Identifies the needs of an individual and the individual's dependents

A policyowner has just borrowed from a life insurance policies cash value. Which of these statements is true?

In the event of death, the loan amount is deducted from the policy proceeds

A 55-year-old recently received a $30,000 distribution from a previous employer 401(k) plan, -$6000 for income tax withholding. Which of the federal taxes apply and none of the funds rolled over?

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

Which life insurance clause prohibits an insurance company from questioning the validity of the contract after the stated period of time has passed?

Incontestable clause

Which of the following is not classified as an employee under a group employer insurance plan?

Independent contractors

All of these are considered features of whole life insurance EXCEPT

Initial premium is lower than for an equivalent amount of term insurance

The medical information bureau consist of members from which group?

Insurance companies

A policy owner has a life insurance policy where she has listed her age on the application as five years younger than her actual age. If she dies and then sure discovers the misstatement at age, how much will the insurance company pay?

Less than the face amount

What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?

Less than the policy's face amount

Which of the following is NOT information needed to determine the suitability of an annuity recommendation?

Level of education

The _________________ Is responsible for reporting to the commissioner any name or address change of the licensee's.

Licensee

What is another term used for a pure life annuity?

Life Income

All of these are common limiting factors with dental insurance except for

Limit placed on number of teeth that may be treated annually

What action can an insurer take to discourage malingering And false disability claims?

Limit the amount of benefits and insured can receive from two disability policies with the same insurer

How can A group dental insured discourage adverse selection?

Limit the duration of coverage

Employees usually receive workers compensation benefits for

Lost wages and medical expenses due to on-the-job accidents

Which of these policies is considered to be a comprehensive health policy?

Major Medical policy

The commissioner is empowered to perform each of the following ask except

Make rules that are consistent with those of neighboring states

Risk______is the process of analyzing exposures that create risk in designing programs to handle them.

Management

An insurance applicant has Made a false statement on the application that will affect inch or's decision on whether or not to issue the policy. This false statement is considered

Material misrepresentations

According to the affordable care act (ACA), The proportion of premium revenue spent on clinical services and quality improvement is called the

Medical loss ratio

Which of these is a Type of private insurance that covers the cost sharing amount under Medicare?

Medicare supplement

Which of the following is bot a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?

Misstatement of age

All of the following are covered under most dental plans EXCEPT for

Mouth cancer

If the commissioner Request access to a producers business records, the producer

Must provide access to the records upon request

James the producer has sold a life insurance contract to a client without using an illustration, even though his ensure all first one. For this particular transaction, the applicant

Must sign a statement that no illustration was provided

What must be disclosed with a procedure advertised as a life insurance policy?

Name of the actual insirer

How would preventative care be encouraged in a dental plan?

No deductible or coinsurance required on teeth cleanings

The disability income policy most likely to have been issued on a substandard basis is

Non-cancelable with a health condition exclusion rider

A _______________ Producer lives in another state and transacts insurance in Connecticut.

Non-residential

Which of the following health insurance plans charges a premium that cannot be increased?

Noncancelable

Which of these is not an unfair claim settlement practice?

Offering to settle claim by arbitration

An insurer may not refuse the renewal of a small employer health insurance plan because of

Overuse of medical services

Which statement best describes a single premium whole life policy?

Paid-up policy that offers lifetime protection

Which of the following is not a function of accident and health insurance?

Pays a death benefit as a result of natural causes

Twisting means

Persuading and insured, to the insured's detriment, to switch policies

Which of these plans allow a participant to choose either in network or non-network provider at the same time when medical care is needed?

Point of service

A producer sold a life insurance policy but did NOT provide the applicant with a basic illustration. In this situation, the insurer is REQUIRED to provide the applicant with a policy summary no later than the

Policy delivery date

These are all accurate statements regarding universal life insurance except

Policy loans are not permitted

Straight whole life insurance can be accurately described in all of these statements EXCEPT

Policy protection normally expires at age 65

How are level term policies able to provide level term premiums?

Premiums are averaged over the term of the policy

Which statement regarding the life insurance premium for a children's rider is true?

Premiums remain the same no matter how many children

Which of these is not a standard provision and qualified long-term care policy sold in Connecticut?

Prior hospitalization

At what point must a producer give notification to the commissioner about using an assumed name?

Prior to using the assumed name

What is the name of the period of time during which a new employee is in eligible for group health insurance coverage?

Probationary period

Under federal law, which of the following actions may result in a producer becoming imprisoned?

Producer embezzling funds from an insurer

A producer has Indicated to a potential client that the proposed life insurance is covered by the Connecticut life and health insurance guarantee association. This action taken by the producer is

Prohibited by law

They handicapped child is covered under an individual health policy. If continuation of coverage is needed to be on the policies age limit, which of the following is required?

Proof of incapacity in dependency upon reaching the age limit

The dental special to you which deals with the replacement of missing teeth is called

Prosthodontics

Ambiguities In insurance contracts are typically interpreted in favor of the insured. This rule is referred to as

Reasonable expectations

Which of the following actions may result in a producers license being suspended by the commissioner?

Rebating part of a commission to the applicant

Which of the following is not a dividend option for a life insurance policy?

Receiving the entire policy cash value

Which of the following facilitates non-resident licensing in the state of Connecticut?

Reciprocity agreement

Which of the following statements BEST describes the HIPPA portability rules for an individual who changes from one group medical plan to another?

Reduces or eliminates any pre-existing conditions excluded under the new plan

Which of these is not an unfair claim settlement practice?

Refusing to pay person's bringing false or fraudulent claims

Which of the following is NOT included as a hospice benefit under a major medical plan?

Rehabilitation

A life insurance policies waiver of premium riders has the ability to

Relieve the insured of premium payments following an initial waiting period After that insured becomes totally disabled

When an insurer market it's Medicare supplement products in Connecticut, which method is acceptable?

Replacing an existing policy with one that has greater benefits

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

Request of the change will be refused

Which of the following would most likely purchase an immediate annuity?

Retiree having a lump sum to invest

What kind of arrangement gives a policyowner the right to change the beneficiary?

Revocable designation

Which of the following can be defined as "the potential for loss"?

Risk

A example of endodontic treatment is a

Root canal

What does a 401(k) plan generally provide to its participants?

Salary-deferral option

Security laws passed by Congress are in force by which federal agency?

Security and exchange commission

Long-term care policies are in Connecticut may not exclude coverage for

Selena dementia

Laura is a new employee and will be obtaining non-contributory group major medical insurance from her employer. Which of the following actions much she take during the open enrollment period?

Sign an enrollment card

Medicare part A covers which type of care?

Skilled nursing facility care

Which of the following would not have a restricted ability to enter into a contract?

Small employer

An individual may receive Medicare part a hospital benefits, regardless of age, as long as the person has received which of the following benefits for at least 24 months?

Social Security disability

Licensed producers in Connecticut are authorized to

Solicit, receive, and forward applications to the insurer

Which entity is responsible for regulating claim settlement practices of insurers?

State insurance departments

In regards to technology in the ACA, which of the following statements is correct?

States which operate within the exchange qualify for federal aid to initiate an Internet-based portal

A group health certificate for coverage issues in Connecticut must contain a

Summary of policy features and benefits

Which of these annuity contract features is meant to discourage withdrawals and exchanges?

Surrender charges

When testing for the human immunodeficiency virus, Connecticut law requires a consent form

That discloses who may receive a copy of the results

To secure authority for soliciting insurance products in the state of Connecticut, and insurance company must secure a certificate of authority from

The Connecticut insurance commissioner

Which statement regarding the joint and survivor life insurance settlement option is not true?

The amount of each installment is larger than the single life income option

In order to contribute to a health savings account

The applicant must be enrolled in a high deductible health plan

What is payable to the policy owner of a whole life policy is surrendered prior to its maturity date?

The cash value

Which of the following is not a valid cause for termination of an employee's group health coverage?

The coinsurance limit has been exceeded

If one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission?

The commission will likely be shared between the two producers

Which of the following statements accurately describes the financial impact of total disability?

The financial impact may be worse than that of death

What is taken into consideration when defining " total disability" In a disability income insurance policy?

The insured's education, training, and experience

How is a community rating used for underwriting purposes?

The same rates are charged for individual and group plans in the same geographical area

How is an insured accident and health Claim handled by an inch or if it occurs during the policies grace period?

The unpaid premium may be subtracted from the reimbursement

What is a "function assessment" For long-term care benefits?

They review of the insured's ability to perform for activities of daily living

Why does Connecticut require insurers to maintain a minimum level of assets?

To demonstrate insurer solvency

Which of these situations would not potentially involve a prison sentence under federal law?

Transacting insurance with a nonresident license

Which of the following does medical expense insurance not typically cover?

Treatment in a government facility

A life insurance policy may ONLY be contested by the insurer during the first ________ years of the contract.

Two

After a life insurance policy has been in force for____years, it becomes incontestable

Two

Charging different premiums to policyholders in the same risk classification is referred to as

Unfair discrimination

When an individual buys insurance under a threat made by a producer, and violation has occurred under the

Unfair trade practices act

In an individual retirement account, rollover contributions are

Unlimited by dollar amount

How long does protection normally extend to under a limited pay whole life policy?

Until age 100

Mentally or physically handicapped dependent children must be covered until an individual health insurance policy

Until they become self supporting

At what point are death proceeds paid in a joint life insurance policy?

When the first insured dies

A policy owner Is permitted to take out a policyown on a whole life policy at what point?

When the policy has a cash value

According to federal Fraud and False statement regulations, what is required for a prohibited person to transact insurance business in the state?

Written consent from the state insurance regulatory agency

Disability income insurance normally excludes coverage for disabilities that arise from

active military duty

In regards to health insurance, employees age 65 or older are typically required to

be offered the same group health benefits offered to the younger employees

Accident and health insurance claim handling is made more convenient to the insured by Utilizing

assignment of benefits

The Guarantee of insurability option provides a long-term care policyowner the ability to

buy additional coverage at a later date

Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans

cover preventative care once every six months

Which of these is not considered a federal punishment for unfair and deceptive insurance practices?

community service

Which of these is typically regarded as a major treatment in an indemnity dental plan?

dentures

For purposes of disability income insurance, earned income would include all the following except

dividends

When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement?

eye examination

According to the Affordable care act, coverage may be rescinded

if intentionally false statements were offered

Which of the following financial products creates an instant estate, no matter when the date of death?

life insurance

Custodial care is normally covered under

long term care insurance

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

mandatory income tax withholding on the amount transferred

A MET third-party administrator may not perform which of the following functions?

marketing plan

Which of the following relationships demonstrates insurable interest in the absence of economic interest?

marriage partners

Misrepresentation on the application is

material

Field underwriting by a producer

may result in the disclosure of hazardous activities of the applicant

Which of these is not used as selection criteria in the underwriting process of a life insurance application?

national origin

Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were

not distributed to life annuitants who died before life expectancy

Long-term care policies normally cover expenses associated with

nursing homes

Most prepaid dental plans cover

oral exams

Where is the difference between a standard risk and a substandard risk reflected?

premium charges

In most dental plans, a deductible typically is not applied to

preventative and diagnostic services

Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will discontinue after a stated number of years remain a constant dollar amount for the duration of the annuity period pay a lump sum if the annuitant dies vary according to the underlying investment performance

remain a constant dollar amount for the duration of the annuity period

What type of risk involves the potential for loss in the possibility for gain?

speculative

If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally

tax deductible to the business

Under a key person disability income policy, benefits will be received as

tax-free income to the business

Medicare part A does not provide coverage for

the first 3 pints of blood

The major medical deductible carryover period normally applies to expenses incurred during the last _____ months of the plan year.

three

The reason for backdating a policy is

to obtain a premium rate based on an earlier age