EXAM #7 updated

Level Term Life policy

Death benefit remains constant

Group conversion option is allowed for all except

During annual benefits period

The group conversion option is allowed for all of the following EXCEPT

During the annual benefits enrollment period

probationary period

During which period of a Disability Income Policy is coverage effective but during which no benefits will be paid under the policy?

Are subject to vesting requirements

Employer contributions made to a qualified plan

What Specific new procedures does the USA Patriot Act require of insurance companies

Establish an anti money laundering program

What specific new procedures does the USA Patriot Act require of insurance companies?

Establish an anti-money laundering program

Insurers must allow individual life insurance customers the ability to return their new policy within 10-30 days (this time period is up to the insurer) for a full refund.

Every individual life insurance policy must provide for a free-look provision that lasts for at least

12 weeks of no work within one year

FMLA Child Birth

Decreasing term life policy fact

Face amount reaches zero at policy expiration

Obtaining consumer information reports under false pretense is prosecutable by which of the following?

Fair Credit Reporting Act

Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

Fair Credit Reporting Act

obtaining consumer information reports under false pretenses is prosecutable by

Fair Credit Reporting Act

In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses?

Flexible Spending Account (FSA)

age

Fo an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

Age

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

age

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

6 months

For how long is an insurance company allowed to defer policy loan requests?

Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms of costs?

Free look

Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms or costs?

Free look

the employer under business expenses

Group AD&D policies may be deducted by whom and under which deduction category?

Which option enables the insured to purchase additional disability income protection at specified future dates at the applicable premium rate at the attained age at the time of future purchase?

Guaranteed insurability

Trained and registered volunteers. Service is free

HICAP counselors are primarily

Which plan is most commonly paired with a High Deductible Health Plan?

Health Savings account (HSA)

In favor of the insured because the insurance company drafts the language in the contract.

How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion?

to purchase insurance on a family member of the originally insured

How are term riders used

add coverage

How are term riders used?

It must be handled as a new claim for a new period of disability, requiring a new elimination period.

How do most disability policies handle the case of a recurrent disability occurring at least 90 days after the first claim?

A warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

How do warranties differ from representations?

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

How do warranties differ from representations?

The proceeds are divided equally among living primary beneficiaries.

How does the per capita rule apply to proceeds from a life insurance policy?

2 years

How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?

purchasing family term insurance

How might someone cover the extra expenses of child care and home-related costs?

The premiums paid by the company as a business expense

If a company provides group disability insurance to its employees, which of the following may be tax-deductible?

Securities (Investment License)

If an agent wishes to sell variable life polices, what license must the agent obtain?

the treatment procedures that are covered by the policy.

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT

the treatment procedures that are covered by the policy.

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT:

Dread disease policy covers

Illness that do not occur frequently but incur significant costs when they do.

The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount.

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?

the individuals policy pays first then the spouses pays the remaining

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?

Death Benefit

In a level term life policy, which ALWAYS remains constant?

What is the waiver of premium provision?

In a long term care contract, the premium is waived after the insured has been confined for a specific period of time.

How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion?

In favor of the insured because the insurance company drafts the language in the contract

1

In noncontributory plans, which percentage of eligible members must participate?

The premium increase must be in the contract at the time it is issued.

In order for an insurer to increase the premium on a non-cancelable policy, which of the following MUST be true?

Seven-pay test

In order to AVOID being classified as an MEC, a policy must pass which of the following?

seven-pay test

In order to AVOID being classified as an MEC, a policy must pass which of the following?

seven-pay test

In order to avoid being classified as an MEC, a policy must pass which of the following

Executive is the owner, and the executive pays the premium

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

Key person disability income insurance

In which of the following cases are premiums paid by a business NOT tax deductible as a business expense?

key person disability income insurance

In which of the following cases are premiums paid by a business NOT tax deductible as a business expense?

Recording Methods

In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?

recording method

In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?

Unilateral

In which of the following types of contracts is only one party is legally required to do something after the insured has completed the act of paying the premium?

Which is a primary difference between individual and group health insurance?

Individual insurance requires evidence of insurability

Proof of Loss Fact

Insured has 90 days from date of loss to provide proof of loss

What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?

Insured original issue age is used

What does it mean if a health policy is conditionally renewable?

Insurer may elect NOT to renew only under conditions specified in the policy

Which part of an insurance contract contains the promise to pay loses covered big the policy in exchange for the insured's premium and compliance with policy terms?

Insuring clause

Assumption Whole life policies are sensitive to

Interest Rates

Adjustable life policy

Interest rate is not adjustable

Current assumption whole life policies are sensitive to which of the following?

Interest rates

Which of the following is TRUE of an equity indexed annuity

It has a guaranteed minimum interest rate

Which of the following is TRUE of an equity-indexed annuity?

It has a guaranteed minimum interest rate

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

It is financially insufficient to cover end of life expenses.

Why is the accidental death benefit referred to as double indemnity?

It provides twice the face value in the policy for death due to accident

Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?

Joint life annuity

Impairment Rider

Lists specific conditions in contract that are excluded.

In which type of insurance is individually purchased coverage commonly more economical than group offered coverage?

Long term care insurance

Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?

Long-Term Care Rider

Increasing beneficiary cost sharing, controlling inpatient admissions and length of stay, selectively contracting with health care providers

Managed care plans increase efficiency by

transferring the management of costs to the insureds.

Managed care plans increase efficiency by all of the following means EXCEPT

What is a MIB report?

Medical information on an applicant for assessing life or health insurance risk

Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT

Medicare

Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT?

Medicare

Which of the following refers to how often a premium is paid?

Mode

Which of the following was specifically designed to address STOLI and IOLI practices

NCOIL Act

Which of the following was specifically designed to address STOLI and IOLI practices?

NCOIL Act

All of the following are classifications of risk EXCEPT

Non-nicotine

Short term disability insurance generally only covers injuries due to which of the following?

Non-occupational injuries

Fair Credit Reporting Act

Obtaining consumer information reports under false pretenses is prosecutable by which of the following

Fair Credit Reporting Act

Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

Which is the difference between participating and non-participating policies?

Participating policies pay dividends while non-participating policies do not.

How might someone cover the extra expenses of child care and home-related costs?

Purchasing family term insurance

In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?

Recording method

Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age?

Renewable term

replacing an existing policy with a new one

Replacement refers to which of the following?

All life insurance and health insurance contracts contain all of the following EXCEPT?

Representations

Which of the following is true for most comprehensive dental policies?

Routine care is provided without coinsurance or deductibles

All of the following are tax qualifies retirement plans EXCEPT

Section 529 plan

Acceptance

Self-insurance is an example of which method of handling risk?

Non-occupational injuries

Short term disability insurance generally only covers injuries due to which of the following?

Determines whether a person passes a financial test to qualify for medicaid

State Law

Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses?

Stop Loss Limit

Which of the following is defined as the dollar amount beyond which the insured no longer participated in payment of medical expenses?

Stop loss limit

What is the order in which beneficiaries receive proceeds from a life insurance policy?

Succession of beneficiaries

Survivorship life insurance insures two people and only pays out the death benefit after both have passed away. It's often purchased by a couple as a means of leaving money to their children, estate planning, leaving a sizeable legacy, or funding a support system for a dependent who may require lifetime care. Survivorship life insurance can also be called: Joint survivorship life insurance Second-to-die life insurance

Survivorship life insurance is a type of joint life insurance

All of the following are ownership rights EXCEPT?

Switching the policy from one insured to another

Which of the following amends the Social Security Act to make Medicare secondary to group health plans?

TEFRA

Which of the following amends the social security to make a medicare secondary to group health plans

TEFRA

Foreign Insurer

The ZYX insurance company is incorporated in Alabama. While doing business in Texas, it is a(n)

Alien Insurer

The ZYX insurance company is incorporated in Mexico. While doing business Texas, it is a(n)

What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?

The applicant and possibly the agent initial any changes made.

All of the following are features of the spendthrift clause EXCEPT?

The beneficiary may encumber the proceeds

When the courts look at a contract to determine the intent of the parties which of the following is considered?

The entire contract

Which of the following is true about a decreasing term life policy?

The face amount reaches zero at policy expiration

All of the above:-Counseling and advocacy to assist individuals with long-term care planning and insurance policies, billing, or claims.-Information through community forums about the myths and realities of Medicare and private health insurance.-Legal representation and advice when necessary and appropriate.

The goals of HICAP are to provide

during the annual benefits enrollment period.

The group conversion option is allowed for all of the following EXCEPT

All of the following are TRUE regarding incomplete applications EXCEPT

The incomplete application can be accepted with the missing information added later

In a case where an individuals health is insured by both their own policy and their spouses policy, which policy pays in the event of an illness?

The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount

Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed?

The insured has 90 days from the date of loss to provide proof of loss

The policy is delivered to the applicant, the first premium is collected, the statement of good health is obtained by the insurer

The life insurance policy will not be truly effective until all of the following

the agent has explained the policy to the client

The life insurance policy will not be truly effective until all of the following occur EXCEPT

Which of the following represents an advantage of obtaining a policy loan versus a withdrawal?

The loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis

All of the following are required signatures on a life insurance application EXCEPT?

The minor in a juvenile policy

What is the purpose of Stranger-originated life insurance (STOLI)?

The policy is originated primarily or solely for the purpose resale

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?

The policy owner has named an irrevocable beneficiary

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?

The policyowner has named an irrevocable beneficiary

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved tot he policyowner UNLESS which of the following is true?

The policyowner has named an irrevocable beneficiary

In order for an insurer to increase the premium on a noncancellable policy which of the following must be true

The premium increase must be in the contract at the time it is issued

A profitable distribution of exposures

The protection of the insurer from adverse selection is provided in part by

Which of the following is TRUE for a flexible premium annuity?

The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount

The policyowner has named an irrevocable beneficiary.

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?

Insured

The term used to describe the individual who is covered by the insurance is

The insured's beneficiaries

The title page of the policy provides a summary of the benefits and coverages provided by the policy. All of the following is included in the title page EXCEPT

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT

The treatment

Which of the following occurs immediately after the application is submitted and the initial premium paid?

The underwriting process begins

All of the following are characteristics of variable whole life EXCEPT

There is no guaranteed minimum death benefit.

Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?

They are MORE likely to receive a loan based on the expectations of proceeds.

Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?

They are MORE likely to receive a loan based on the expectations of the proceeds

Which is the primary purpose of Health Reimbursement Accounts (HRAs)

To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions

Which is the primary purpose of Health Reimbursement Accounts (HRAs)?

To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.

SEC Registration

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

Whole life insurance

To which of the following products does the replacement regulation apply?

Long term care rider

Type of rider reimburses health and social service expenses incurred in convalescent or nursing home

benefits are adjusted to an amount that the premium would have purchased at the correct age or gender

Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender

Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

benefits are adjusted to an amount that the premium would have purchased at the correct age or gender

Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

When a third-party applicant names themselves beneficiary.

Under which situation must insurable interest exist between the applicant and insured at the time of application?

25

Until What age can you remain on parents health insurance policy?

45 days

Upon the issuance of a conditional receipt for a renewal when the premium is paid AFTER the time granted by the insurer, what is the maximum amount of time for reinstatement of policy?

Type of annuity that attempts to offset inflation by providing a benefit linked to an underlying investment account.

Variable Annuity

Which of the following lists the three common types of permanent individual life insurance?

Variable Life, Whole Life, Universal Life

3 common types permanent individual life insurance

Variable life, whole life, universal life

Which of the following lists the three common types of permanent individual life insurance

Variable life, whole life, universal life

62

What age can you collect social security?

Containing costs and early treatment

What are two characteristics of Health Maintenance Organizations (HMOs)?

The insurer and the insured share expenses over the deductible.

What does coinsurance mean?

Insurer may elect NOT to renew only under conditions specified in the policy.

What does it mean if a health policy is conditionally renewable?

Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date.

What does it mean if a health policy is optionally renewable?

Coverage ends and the policy cannot be reinstated

What happens when a policy is surrendered for cash value?

medical information on an applicant for assessing life or health insurance risk

What is MIB Report

Medical insurance for 65 and older, people under 65 with disabilities, people with end stage renal disease. When you're eligible, you can enroll in Medicare Parts A and B - also known as Original Medicare - through the Social Security Administration. If you are already receiving Social Security or Railroad Retirement Board benefits you'll automatically be enrolled.

What is Medicare

Medical information on an applicant for assessing life or health insurance risk

What is a MIB report?

It lists specific conditions in the contract that are excluded from the contract

What is an impairment rider?

Insurance coverage if premiums are paid

What is granted to the insured in the consideration clause?

Multiple indemnity

What is it called when a life insurance policy pays a multiple of the coverage amount when certain types of accidents occur?

Key person insurance is a type of life insurance policy that provides a death benefit to a business if its owner or another significant employee passes away, according to the Insurance Information Institute (III).

What is key person insurance?

A copayment is a set dollar amount, while coinsurance is set as a percentage.

What is the difference between copayment and coinsurance?

Buyers often think they are getting broader coverage than they actually purchase.

What is the major reason that insurance regulators are often critical of dread disease insurance policies?

3 Years

What is the maximum amount of time the insured has to file legal action against the insurer after written proof of loss is provided

succession of beneficiaries

What is the order in which beneficiaries receive proceeds from a life insurance policy?

Insured original issue age is used

What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?

insured original issue age is used

What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?

the policy is originated primarily or solely for the purpose of resale

What is the purpose of Stranger-originated life insurance (STOLI)?

In a long term care contract, the premium is waived after the insured has been confined for a specific period of time.

What is the waiver of premium provision?

You'll usually pay 20% of the cost for each Medicare-covered service or item after you've paid your deductible. Medicare pays 80%

What percentage of medical bills Does Medicare pay?

The applicant and possibly the agent initial any changes made.

What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?

Establish an anti-money laundering program

What specific new procedures does the USA Patriot Act require of insurance companies?

key person insurance

What type of insurance should a company purchase if it wants to insure the life of its CEO?

Spendthrift Provision

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

A detailed and comprehensive summary of the accelerated benefit

When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing the applicant a summary of coverage that includes all of the following EXCEPT:

Under which situation must insurable interest exist between the applicant and insured at the time of application?

When a third-party applicant names themselves beneficiary

It becomes inactive

When an agent doesn't hold any active appointments, what happens to the agent's license

Transfer

When an individual purchases insurance, what risk management technique is he or she practicing?

When the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

when the applicant for the policy is not the insured

When does insurable interest come into play in a life insurance policy?

At all times.

When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner?

When there is a buy-sell agreement funded with life insurance to buyout the interest of a deceased owner or partner.

When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability?

Entire Contract

When the courts look at a contract to determine the intent of the parties which of the following is considered?

The entire contract

When the courts look at a contract to determine the intent of the parties which of the following is considered?

2 year period

When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial

When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability?

When there is a buy-sell agreement funded with disability insurance to buyout the interest of a deceased owner or partner

When should a buy-sell agreement include a provision for the buy-out of an owners business interest in event of a disability

When there is a buy-sell agreement funded with life insurance to buy-out the interest of a deceased owner or partner

When would dependent children's benefits for Social Security disability payments be scaled back?

When they cause the family benefit to exceed the maximum benefit amount

When particular benefits are not listed on a payment schedule

When will a policy pay on a UCR basis?

when the payments aren't listed on a scheduled basis

When will a policy pay on a UCR basis?

Joint and survivorship option

Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant?s death the same or a lesser amount paid for the lifetime of the survivor?

Joint option

Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant?s death the same or a lesser amount paid for the lifetime of the survivor?

Establishing a trust to administer proceeds

Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy?

establishing a trust to administer proceeds

Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy?

Participating policies pay dividends while non-participating policies do not

Which is the difference between participating and non-participating policies?

Participating policies pay dividends while non-participating policies do not.

Which is the difference between participating and non-participating policies?

To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.

Which is the primary purpose of Health Reimbursement Accounts (HRAs)?

TEFRA

Which of the following amends the Social Security Act to make Medicare secondary to group health plans?

The insurer's financial rating

Which of the following does NOT need to be identified in an insurance policy?

To minimize the insured's level of liability in the event of loss

Which of the following is NOT a goal of risk retention?

Beneficiaries are not identified by name?

Which of the following is TRUE about class designation?

The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount

Which of the following is TRUE for a flexible premium annuity?

The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.

Which of the following is TRUE for a flexible premium annuity?

The corporation is the applicant and policy holder. The employee is the insured.

Which of the following is TRUE in a key employee life insurance policy?

A patients care is coordinated by an in-network primary care physician

Which of the following is TRUE of a point of service plan?

It has a guaranteed minimum interest rate.

Which of the following is TRUE of an equity-indexed annuity?

Coverage continues after the policy is paid-up.

Which of the following is TRUE of the limited pay whole life policy?

They are MORE likely to receive a loan based on the exceptions of the proceeds

Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?

They are MORE likely to receive a loan based on the expectations of the proceeds.

Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?

Variable whole life has a guaranteed death benefit

Which of the following is a key distinction between variable whole life and variable universal life products?

annual premium payment

Which of the following is an example of a premium payment mode?

plan does not meet federal guidelines for tax benefits

Which of the following is characteristic of a non-qualified plan?

Plan does not meet federal guidelines for tax benefits

Which of the following is characteristic of a nonqualified plan?

plan does not meet federal guidelines for tax benefits

Which of the following is characteristic of a nonqualified plan?

It begins with little or no insurance protection.

Which of the following is common in an increasing term life policy?

Stop Loss Limit

Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses?

fraudulent misstatements

Which of the following is exempted from the incontestability provision in insurance policies?

Coverage offered by private insurers

Which of the following is the most common method to supplement Medicare coverage?

2 years

Which of the following is the time limit on certain defenses after which the policy becomes incontestable?

Creditor is the policyowner

Which of the following is true about credit life insurance?

All unearned premiums must be returned to the insured

Which of the following is true of a cancelable policy?

All unearned premiums must be returned to the insured.

Which of the following is true of a cancelable policy?

Variable Life, Whole Life, Universal Life

Which of the following lists the three common types of permanent individual life insurance?

notice of claim

Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible?

The underwriting process begins

Which of the following occurs immediately after the application is submitted and the initial premium paid?

the underwriting process begins

Which of the following occurs immediately after the application is submitted and the initial premium paid?

Automatic premium loan

Which of the following policy loans is a provision in which an amount equal to the premium due is subtracted from the cash value to pay the premium and prevent a lapse of the policy.

payor clause

Which of the following provides for the continuance of life insurance coverage on a juvenile in the event of the death or total disability of the individual responsible for the payment of the premiums?

Mode

Which of the following refers to how often a premium is paid?

mode

Which of the following refers to how often a premium is paid?

It transfers rights of ownership from the owner to another person

Which of the following statements is true about a policy assignment?

Convertible

Which of the following term insurance types provides temporary protection that can be changed to some type of permanent protection without evidence of insurability?

convertible

Which of the following term insurance types provides temporary protection that can be changed to some type of permanent protection without evidence of insurability?

Decreasing Term

Which of the following types of insurance policies is most commonly used in credit life insurance?

NCOIL Act

Which of the following was specifically designed to address STOLI and IOLI practices?

hospitalization insurance

Which of the following, by definition, provides benefits for expenses incurred as a result of in-hospital medical treatment and surgery as well as certain outpatient expenses such as doctor's visits, laboratory tests, and diagnostic services?

any exclusions

Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?

the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis

Which one of the following represents an advantage of obtaining a policy loan vesus a withdrawal?

Guaranteed insurability

Which option enables the insured to purchase additional disability income protection at specified future dates at the applicable premium rate at the attained age at the time of future purchase?

Insuring clause

Which part of an insurance contract contains promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms?

insuring clause

Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms?

Health Savings Account (HSA)

Which plan is most commonly paired with a High Deductible Health Plan?

Health savings account (HSA)

Which plan is most commonly paired with a High Deductible Health Plan?

Free Look

Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms or costs?

Free Look

Which policy provision permits the policy-owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy-owner rejects the terms or costs?

Free look

Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs?

Variable Universal Life

Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?

variable universal life

Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?

variable

Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?

Joint life annuity

Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?

permanent

Which type of assignment occurs when a person transfers ownership of a life insurance policy to another person, such as a son when turning 18?

Business overhead expense disability insurance

Which type of coverage pays the operating costs of a small business when the owner becomes disabled?

binding receipt

Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?

long term care rider

Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?

Continuous Premium

Which whole life policy premium type is the most common?

continuous premium

Which whole life policy premium type is the most common?

The producer

Who's responsibility is it to make certain that an application is filled out completely and correctly?

the producer

Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)?

Certain conditions need to be met to make the contract legally enforceable.

Why are insurance policies considered conditional contracts?

for increased amount protection

Why do equity-indexed life insurance policies have an increased premium?

It is financially insufficient to cover end of life expenses.

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

It provides twice the face value in the policy for death due to accident.

Why is the accidental death benefit referred to as double indemnity?

How does a noncancelable policy differ from a guaranteed renewable policy?

With the noncanceable policy the insurer may increase premiums only based on the terms of the policy

When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing the applicant a summary of coverage that includes all of the following EXCEPT

a detailed and comprehensive summary of the accelerated benefit

Stop-loss limit

a dollar amount beyond which the insured no longer participates in payment of medical expenses

A group conversion option may be used in all the following instances EXCEPT

a life changing event such as marriage, divorce, or childbirth

A group conversion option may be used in all the following instances EXCEPT

a life-changing event, such as marriage, divorce, or childbirth

Which of the following is TRUE of a point of service plan

a patients care is coordinated by an in network primary care physician

which of the following is true of a point of service plan

a patients care is coordinated by an in network primary care physician

Insurance

a social device for spreading the chance of financial loss amount a large number of people

How do warranties differ from representations?

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge

How do warranties differ from representations

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

How do warranties differ from representations?

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

Which of the following policy types is considered double indemnity?

accidental death

disadvantage of flexible premium annuity

actual amount of annuity benefit cannot be determined in advance

For an individual long term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

age

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

age

for an individual long term care policy there is an annual dollar limit for tax deductions that is based on which of the following

age

Which of the following is true of a cancelable policy

all unearned premiums must be returned to the insured

TEFRA

amends the Social Security Act to make Medicare secondary to group health plans

What is the return of premium rider

an increasing amount of term insurance that always equals the total of premiums paid up to the current point

What does the grace period protect the policy holder from?

an unintentional lapse of the policy

What does the grace period protect the policyholder from

an unintentional lapse of the policy

Which of the following is an example of premium payment mode

annual premium payment

All of the following statements define preexisting conditions EXCEPT

any chronic health condition that presents symptoms and which was unknown at the time of application

Which of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy

any exclusions

Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?

any exclusions

which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy

any exclusions

Which is the major reason why long term care insurance is becoming increasingly important

as life expectancy increases, the chances of needing long term care also increases

What does first dollar coverage mean

as soon as medical expenses are incurred, the policy begins to pay

Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

benefits are adjusted to an amount that the premium would have purchased at the correct age or gender

Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?

binding receipt

which type of receipt makes the insurer liable for the risk from the date of application regardless of the applicants insurability

binding receipt

In a home healthcare benefit all of the following are eligible expenses except

blood transfusions

In a home healthcare benefit, all of the following are eligible expenses EXCEPT

blood transfusions

Which type of coverage pays the operating costs of a small business when the owner becomes disabled

business overhead expense disability insurance

What is the major reason that insurance regulators are often critical of dread disease insurance policies

buyers often think they are getting broader coverage than they actually purchase

renewable term

can be continued year after year without medical examination but raters are dependent on insureds current age.

All of the following are nonforfeiture options EXCEPT

cash dividend option

Insurance policies are considered conditional contracts because

certain conditions need to be met to make the contract legally enforceable

Why are insurance policies considered conditional contracts?

certain conditions need to be met to make the contract legally enforceable

All of the following are characteristics of COBRA EXCEPT

change in medical privacy procedures

All of the following are characteristics of COBRA except

change in medical privacy procedures

all of the following are common exclusions from loss found in disability income policies except for that incurred while

commiting a misdeanor

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while

committing a misdemeanor

an insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary

common disaster clause

accidental death

considered double indemnity

Which whole life policy premium type is the most common?

continuous premium

Which of the following is TRUE of the limited pay whole life policy

coverage continues after the policy is paid up

Which of the following is true of t limited pay whole life policy

coverage continues after the policy is paid up

most common method to supplement medicare coverage

coverage offered by private insurers

Business overhead expense disability insurance

coverage pays for operating costs of small business when owner becomes disabled

In a level term life policy, which ALWAYS remains constant?

death benefit

NCOIL Act

designed to address STOL and LOLI practices

Which of the following coverage types pay a monthly cash benefit following the elimination period for total disability due to accident or sickness

disability income insurance

Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness

disability income insurance

Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness?

disability income insurance

The group conversion option is allowed for all of the following except

during the annual benefits enrollment period

the group conversion option is allowed for all the following except

during the annual benefits enrollment period

Which of the following may be though of as a time deductible rather than a dollar deductible in a disability income policy because benefits are not payable during that time

elimination period

difference between elimination period and probationary period

elimination period is how long you must wait to receive benefits while probationary period is period of time you are unable to file a claim.

What specific new procedures does the USA Patriot Act require of insurance companies

establish an anti money laundering program

which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy

establishing a trust to administer proceeds

Common approach to addressing problems inherent in naming a minor as a beneficiary of life policy

establishing a trust to administer proceeds.

The application of the law of large number enables actuaries to

estimate the future losses of a class or group of people

obtaining consmer information reports undr false pretenses is prosecutable by which of the following

fair credit reporting act

In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses

flexible spending account (fsa)

According to the Time Payment of Claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT

for claims involving periodic payments

According to the time of payment claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT

for claims involving periodic payments

According to the time of payment of claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT

for claims involving periodic payments

Which of the following is exempted from the incontestability provision in insurance policies

fraudulent misstatements

exempted from incontestability provision in insurance policies

fraudulent misstatements

which of the following is exempted from the incontestability provision in insurance policies

fraudulent misstatements

Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs

free look

which policy provision permits the policyowner to take a specified number of days to examine the contract and allows for cancellation and a full refund if the policyowner rejects the terms or costs

free look

equity- index annuity

guaranteed minimum interest rate

Which of the following by definition provides benefits for expenses incurred as a result of in hospital medical treatment and surgery as well as certain outpatient expenses such as doctors visits, lab test and diagnostic services

hospitalization insurance

Which of the following, by definition, provides benefits for expenses incurred as a result of in hospital medical treatment and surgery as well as certain outpatient expenses such as doctor's visits, laboratory test, and diagnostic services?

hospitalization insurance

Which of the following is covered by a dread disease policy

illnesses that do not occur frequently but incur significant costs when they do occur

Which of the following is covered by a dread disease policy?

illnesses that do not occur frequently but incur significant costs when they do occur

death benefit

in a level term life policy, which ALWAYS remains constant?

What is the waiver of premium provision

in a long term care contract the premium is waived after the insured has been confined for a specific period of time

Issues of ambiguity usually resolved

in favor of insured because insurance company drafts the language in the contract

How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion?

in favor of the insured because the insurance company drafts the language in the contract

return of premium rider

increasing amount of term insurance that always equals total of premiums paid up to the current point

Which is the primary difference between individual and group health insurance

individual insurance requires evidence of insurability

Granted to insured in consideration clause

insurance coverage if premiums are paid

What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one

insured original issue age is used

what happens when lifetime maximum benefit limit has been reached

insured will pay all of remaining medical costs for as long as policy is in force.

what does it mean if a health policy is optionally renewable

insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date

conditionally renewable policy

insurer may elect NOT to renew only under conditions specified in the policy

which party of the insurance contract contains the promise to pay losses covered by the policy in exchange for the insureds premium and compliance with policy terms

insuring clause

Current assumption whole life policies are sensitive to which of the following

interest rates

Current assumption whole life policies are sensitive to which of the following?

interest rates

Which of the following is common in an increasing term life policy

it begins with little or no insurance protection

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

it is financially insufficient to cover end of life expenses

What is an impairment rider

it lists specific conditions in the contract that are excluded from the contract

What is an impairment rider?

it lists specific conditions in the contract that are excluded from the contract

How do most disability policies handle the case of a recurrent disability occuring at least 90 days after the first claim

it must be handled as a new claim for a new period of disability, requiring a new elimination period

How do most disability policies handle the case of a recurrent disability occurring at least 90 days after the first claim?

it must be handled as a new claim for a new period of disability, requiring a new elimination period

Why is the accidental death benefit referred to as double indemnity

it provides twice the face value in the policy for death due to accident

Why is rehabilitation considered worthy of federal help under workers' compensation?

it reduces insurance losses and helps regain the worker's dignity

Why is rehabilitation considered worthy of federal help under workers compensation

it reduces insurance losses and helps regain the workers diginity

Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant's death the same or a lesser amount paid for the lifetime of the survivor?

joint and survivorship option

Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies

joint life annuity

In which of the following cases are premiums paid by a business NOT tax deductible as a business expense

key person disability income insurance

In which of the following cases are premiums paid by a business NOT tax deductible as a business expense?

key person disability income insurance

What type of insurance should a company purchase if it wants to insure the life of its CEO

key person insurance

What type of insurance should a company purchase if it wants to insure the life of its CEO?

key person insurance

what type of insurance should a company purchase if wants to insure the life of its ceo

key person insurance

group conversion option can not be used for

life changing event such as marriage divorce, or childbirth

advantage of obtaining a policy loan versus a withdrawal

loan is not taxed while withdrawn is taxed for amounts above contract cost basis .

waiver of premium provision

long term care contract premium is waved after insured has been confined for specific period of time

In which type of insurance is individually purchased coverage commonly more economical than group offered coverage

long term care insurance

Which problem was universal life insurance designed to address

low interest rates during periods of high inflation

Which problem was universal life insurance designed to address?

low interest rates during periods of high inflation

Compared to basic hospital, medical an surgical policies, which type of insurance provides a broader coverage, fewer gaps, higher individual benefits, and a higher policy maximums

major medical insurance

Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?

major medical insurance

What is a MIB report

medical information on an applicant for assessing life or health insurance risk

What is a MIB report?

medical information on an applicant for assessing life or health insurance risk

what is the MIB report

medical information on an applicant for assessing life or health insurance risk

MIB Report

medical information on applicant for life or health insurance risk.

A consumer report used to determine eligibility for insurance may include all of the following EXCEPT

medical underwriting exam

Consumers report used to determine eligibility will not include

medical underwriting exam

Which of the following refers to how often the premium is paid

mode

which of the following refers to how often a premium is paid

mode

Assignment rights for irrevocable beneficiaries

more likely to receive a loan based on expectations of proceeds

variable whole life

no guaranteed minimum death benefit

all of the following are classifications of risk except

non nicotine

Short term disability insurance generally only covers injuries due to which of the following

non occupational injuries

All of the following are classification of risk EXCEPT

non-nicotine

All of the following are classifications of risk EXCEPT

non-nicotine

Short term disability insurance generally only covers injuries due to which of the following?

non-occupational injuries

non-nicotine.

not a classifications of risk

Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as reasonably possible

notice of claim

unilateral

only having one party legally required to do something after insured pays the premium.

purpose of stranger-originated life insurance (STOLI)

originated primarily or solely for purpose of resale

Health savings account

paired with high deductible plan

Avoid being classified as MEC

pass Seven-pay test

Hospital Indemnity plan

pays a fixed amount per day to the insured for each day insured is hospitalized.

probationary period

period of disability income policy is coverage effective but during which no benefits will be paid under the policy

Which type of assignment occurs when a person transfers ownership of a life insurance policy to another person, such as a son when turning 18?

permanent

Which of the following is a characteristic of a nonqualified plan

plan does not meet federal guidelines for tax benefits

Which of the following is characteristic of a nonqualified plan

plan does not meet federal guidelines for tax benefits

Which of the following is characteristic of a nonqualified plan?

plan does not meet federal guidelines for tax benefits

Which of the following is characteristic of a non-qualified plan?

plan does not meet the federal guidelines for tax benefits

Which of the following is considered the major advantage of HIPAA?

portability

considered a major advantage of HIPPA

portability

which of the following is considered the major advantage of HIPAA

portability

Which of the following is a characteristic of Preferred Provider Organizations (PPOs)

prearranged costs for services rendered

Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?

prearranged costs for services rendered

key person disability income insurance

premiums are paid by business not tax deductible as business expense

During which period of a disability income policy is coverage effective but during which no benefits will be paid under the policy

probationary period

Per capita rule for life insurance policy

proceeds are divided equally among living primary beneficiaries.

insuring clause

promises to pay losses covered by policy in exchange for insureds premium and policy terms

Payor clause

provides continuance insurance coverage on a juvenile in event of death or total disability of person making premiums.

Joint and survivorship option

provides monthly amount to annuitant and upon the annuitants death the same or lesser amount paid for lifetime of survivor

convertible

provides temporary protection that can be changed to permanent protection without evidence of insurability.

accidental death benefit

provides twice the face value in the policy for death due to accident

Automatic premium loan

provision in which amount equal to the premium due is subtracted from cash value to pay premium

In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?

recording method

in which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records

recording method

Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current

renewable term

Replacement refers to which of the following?

replacing an existing policy with a new one

all life insurance and health insurance contracts contain all of the following except

representaitons

Some states require life insurance policies to include a provision that gives the insurer the right, at its own expense, to do which of the following

require an autopsy

Some states require life insurance policies to include a provision that gives the insurer the right, at its own expenses, to do which of the following?

require an autopsy

Comprehensive dental policies

routine care is provided without coinsurance or deductibles

A basic vision care package includes all of the following EXCEPT

safety glasses

All of the following are tax qualified retirement plans except

section 529 plan

all of the following are tax qualified retirement plans except

section 529 plan

in order to avoid being classified as an mec, a policy must pass which of the following

seven pay test

In order to AVOID being classified as an MEC, a policy must pass which of the following?

seven-pay test

Which of the following determines whether a person passes the financial test to qualify for Medicaid?

state law

Which of the following determines whether a person passes the financial test to qualify for medicaid

state law

Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses

stop loss limit

What is it called when an insurance company tries to recover from a different insurance policy all or part of its losses resulting from a claim

subrogation

what is the order in which beneficiaries receive proceeds from a life insurance policy

succession of beneficiaries

what is the order in which the beneficiaries receive proceeds from a life insurance policy

succssion of beneficiaries

ownership rights except

switching policy from one insured to another

All of the following are ownership rights EXCEPT

switching the policy from one insured to another

All of the following are ownership rights except

switching the policy from one insured to another

Insurer

term used to denote insurance companies

Which is a disadvantage to a flexible premium annuity

the actual amount of the annuity benefit cannot be determined in advance

Life insurance policy will not be truly effective until all occur EXCEPT

the agent has explained policy to client

The life insurance policy will not be truly effective until all of the following occur EXCEPT

the agent has explained the policy to the client

What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent to not recall the changed that were made in a completed application

the applicant and possibly the agent initial any changes made

what procedure is used by an insurer to protect itself in the event a dispute arises an the applicant and the agent do not recall the changes that were made in a completed application

the applicant and possibly the agent initial any changes made

All of the following are features of the spendthrift clause EXCEPT

the beneficiary may encumber the proceeds

All of the following are features of the spendthrift clause except

the beneficiary may encumber the proceeds

All of the following are features of the spendthrift clause EXCEPT

the beneficiary must encumber the proceeds

group ad&d policies may be deducted by whom and under which deduction category

the employer under business expenses

When the courts look at a contract to determine the intent of the parties which of the following is considered

the entire contract

When the courts look at a contract to determine the intent of the parties which of the following is considered?

the entire contract

Large group

the estimation of future losses is more accurate when information is from a

Which of the following is true about a decreasing term life policy

the face amount reaches zero at policy expiration

Which of the following is true about a decreasing term life policy?

the face amount reaches zero at policy expiration

All of the following are TRUE regarding incomplete applications EXCEPT

the incomplete application can be accepted with the missing information added later

all of the following are true regarding incomplete applications except

the incomplete application can be accepted with the missing information added later

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?

the individual's policy pays first, the spouse's policy pays the remaining up the coverage amount

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?

the individuals policy pays first the spouses policy pays the remaining up to coverage amount

In a case where an individuals health is insured by both their own policy and their spouses policy which policy pays in the event of an illness

the individuals policy pays the first, the spouses policy pays the remaining up to coverage amount

Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed

the insured has 90 days from the date of loss to provide proof of loss

Under normal conditions which of the following is true for proof of loss when a single loss is claimed

the insured has 90 days from the date of loss to provide proof of loss

What happens with the lifetime maximum benefit limit has been reached

the insured will pay all of the remaining medical costs for as long as the policy is in force

What happens with the lifetime maximum benefit limit has been reached?

the insured will pay all of the remaining medical costs for as long as the policy is in force

All of the following are required signatures on a life insurance application EXCEPT

the minor in a juvenile policy

All of the following are required signatures on a life insurance application except

the minor in a juvenile policy

all of the following are required signature on a life insurance application except

the minor in a juvenile policy

what is the purpose of stranger originated life insurance (STOLI)

the policy is originatd primarily or solely for the purpose of resale

What is the purpose of Stranger originated life insurance (STOLI)

the policy is originated primarily or solely for the purpose of resale

What is the purpose of Stranger-originated life insurance (STOLI)?

the policy is originated primarily or solely for the purpose of resale

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true

the policyowner has named an irrevocable beneficiary

In order for an insurer to increase the premium on a non-cancelable policy, which of the following MUST be true?

the premium increase must be in the contract at the time it is issued

How does the per capita rule apply to proceeds from a life insurance policy?

the proceeds are divided equally among living primary beneficiaries

Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)?

the producer

Which of the following is TRUE for a flexible premium annuity

the purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount

which of the following is true for a flexible premium annuity

the purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount

if the insurer wishes to share an applicants hiv status the applicant must be given full notice of all the following except

the treatement procedures that are covered by the policy

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT

the treatment procedures that are covered by the policy

Which of the following occurs immediately after the application is submitted and the initial premium is paid?

the underwriting process begins

Which of the following occurs immediately after the application is submitted and the initial premium paid

the underwriting process begins

which of the following occurs immediately after the application is submitted and the initial premium paid

the underwriting process begins

All of the following are characteristics of variable whole life EXCEPT

there is no guaranteed minimum death benefit

Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries

they are more likely to receive a loan based on the expectations of the proceeds

elimination period

time deductible rather a dollar deductible in disability income policy because benefits are not payable at that time.

managed care plans do not

transfer management of costs to insureds

Managed care plans increase efficiency by all of the following means EXCEPT

transferring the management of costs to the insureds

Stock

type of insurance company owned by its shareholders

Annuity

type of policy is designed to protect against the risk of living too long

All of the following are requirements to qualify for social security disability benefits except when

unable to work in occupation in which the worker has trained or educated

All of the following are requirements to qualify for Social Security disability benefits EXCEPT when

unable to work in occupation in which the worker was trained or educated

Requirements to qualify for social security disability EXCEPT

unable to work in occupation which worker was trained or educated

benefits are adjusted to what it would have been with the right age

under the misstatement of age provision what happens if it is determinded at death that the insureds age or gender was misstated on a life insurance policy application

occurs after application is submitted and initial premium is paid

underwriting process begins

grace period protects

unemotional lapse of the policy

In which of the following types of contracts is only one party legally required to do something after the insured has completed the act of paying the premium

unilateral

immediate annuity would be appropriate

upon larger receipt of large insurance proceeds.

Which is an example of when an immediate annuity would be appropriate?

upon receipt of large insurance proceeds

Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account

variable

Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?

variable

Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?

variable universal life

Under which situation must insurable interest exist between the applicant and insured at the time of application?

when a third party applicant names themselves beneficiary

Under which situation must insurable interest exists between the applicant and insured at the time of application?

when a third party applicant names themselves beneficiary

under which situation must insurable interest exist between applicant and insured at time of application

when a third party applicant names themselves beneficiary

when does insurable interest come into play in a life insurance policy

when applicant for policy Is not insured

when does insurable interest come into play in life insurance policy

when applicant for policy is not insured

subrogation

when insurance company tries to recover from different insurance policy all or part of its losses resulting from a claim.

When will a policy pay a UCR basis

when particular benefits are not listed on a payment schedule

when will policy pay on VCR basis

when particular benefits are not listed on payment schedule

When does insurable interest come into play in a life insurance policy?

when the applicant for the policy is not the insured

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

when the taxpayer's medical expenses exceeds 7.5% of adjusted gross income during a taxable year

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

when the taxpayers medical expenses exceed 7.5% of adjusted gross income during a taxable year

When would dependent children benefits for social security disability payments be scaled back

when they cause a family benefit to exceed the maximum benefit amount

Fraudulent missstatements

which of the following is exempt from the incontestability provision in insurance policies?

How does a noncancelable policy differ from a guaranteed renewable policy

with the non cancelable policy the insurer may increase premiums only based on the terms of the policy

How does a noncancelable policy differ from a guaranteed renewable policy?

with the noncancelable policy the insurer may increase premiums only based on the terms of the policy

In noncontributory plans, which percentage of eligible members must participate?

1

noncontributory plans

1 percent of eligible members must participate

States generally define a true "group" for insurance as requiring a minimum of how many participants

10

States generally define a true "group" for insurance as requiring a minimum of how many participants?

10

In noncontributory plans, which percentage of eligible members must participate

100%

In noncontributory plans, which percentage of eligible members must participate?

100%

maximum amount insurer has to provide claim forms for filling out proof of loss

15 days

what is the maximum amount of time an insurer has to provide the claimant the forms for filing proof of loss

15 days

When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial:

2 year period

How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits

2 years

How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?

2 years

Time limit on certain defenses after which the policy becomes incontestable

2 years

Which of the following is the time limit on certain defenses after which the policy becomes incontestable?

2 years

length of time individuals waits to receive medicare benefits after being entitled to disability benefits.

2 years

which of the following is the time limit on certain defenses after which the policy becomes incontestable

2 years

A - inpatient/ hospital care B - outpatient/ medical coverage C- Alternative ways to receive (medicare advantage) D - Prescription

4 Parts of Medicare

safety glasses

A basic vision care package includes all of the following EXCEPT

safety glasses.

A basic vision care package includes all of the following EXCEPT

Medical underwriting exam

A consumer report used to determine eligibility for insurance may include all of the following EXCEPT:

The benefit is received tax free

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

Fraud

A deceptive act or practice committed by a person with the intent to secure an unfair advantage or unlawful gain is known as

When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing that applicant a summary of coverage that includes all of the following EXCEPT

A detailed and comprehensive summary of the accelerated benefit

a life-changing event, such as marriage, divorce or child birth

A group conversion option may be used in all of the following EXCEPT

a life-changing event, such as marriage, divorce, or childbirth.

A group conversion option may be used in all the following instances EXCEPT

Which of the following is TRUE of a point of service plan?

A patient's care is coordinated by an in-network primary care physician

what is true about point of service plan

A patients corse is coordinated by an in-network primary care physician.

Family Protection Policy

A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?

Pure Risk

According to the California insurance code, which of the following can be classified as an insurable event?

For claims involving periodic payments

According to the time of payment of claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

Age

individual long term care policy there is an annual dollar limit for tax deductibles that is based on

Age

Policy Face, Conditions, Insuring Clause

All life insurance and health insurance contracts contain all of the following

Representations

All life insurance and health insurance contracts contain all of the following EXCEPT

the incomplete application can be accepted with the missing information added later.

All of the following are TRUE regarding incomplete applications EXCEPT

change in medical privacy procedures.

All of the following are characteristics of COBRA EXCEPT

there is no guaranteed minimum death benefit.

All of the following are characteristics of variable whole life EXCEPT

non-nicotine.

All of the following are classifications of risk EXCEPT

commiting a misdemeanor

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while

committing a misdemeanor

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while:

it generally is not renewable beyond a certain age, the insured may be left with inadequate protection when it is most needed, it becomes considerably more expensive over time

All of the following are disadvantages to an annually renewable term life policy

The living benefits decrease over time.

All of the following are disadvantages to an annually renewable term life policy EXCEPT

fixed period installments

All of the following are dividends options EXCEPT? REMEMBER OH CRAP

the beneficiary may encumber the proceeds.

All of the following are features of the spendthrift clause EXCEPT

switching the policy from one insured to another

All of the following are ownership rights EXCEPT

the minor in a juvenile policy.

All of the following are required signatures on a life insurance application EXCEPT

insurer

All of the following are required signatures on a life insurance application EXCEPT

the minor in a juvenile policy.

All of the following are required signatures on a life insurance application EXCEPT

credited with the appropriate number of quarters of coverage, disability expected to last 12 months or end in death, total and permanent disabled for at least 5 months

All of the following are requirements to qualify for Social Security disability benefits

unable to work in occupation in which the worker was trained or educated.

All of the following are requirements to qualify for Social Security disability benefits EXCEPT when:

Section 529 plan

All of the following are tax qualified retirement plans EXCEPT

Section 529 plan.

All of the following are tax qualified retirement plans EXCEPT

the rider is available to all insureds with no additional premium

All of the following are true regarding the guarabteed insurability rider EXCEPT

common disaster clause

An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary?

Free Look Period

An insured has the right to return the new insurance policy for a full refund during the

Consideration

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy

403(b) Plan (TSA)

An internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n)

All of the following statements define preexisting conditions EXCEPT

Any chronic health condition that presents symptoms and which was unknown at the time of application

Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?

Any exclusions

An administration penalty of no less than $5,000 and no more than $50,000 per violation

Any insurance agent commits a repeated violation of the insurance code with respect to insurance replacement will be liable for

Which is the major reason why long term care insurance is becoming increasingly important?

As life expectancy increases, the chances of needing long term care also increase

First dollar coverage is

As soon as covered medical expense are incurred the policy begins to pay.

What does first dollar coverage mean?

As soon as covered medical expenses are incurred, the policy begins to pay

At the time the policy is purchased by the owner of the policy.

At which point are contractual death benefit settlement options determined and by whom?

Common in an increasing term life policy

Begins with little or no insurance protection

Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

Benefits are adjusted to an amounts that the premium would have purchased at the correct age or gender

Makes insurer liable for risk from date of application

Binding Receipt

Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?

Binding receipt

Which type of coverage pays the operating costs of a small business when the owner becomes disabled?

Business overhead expense disability insurance

All of the following are non-forfeiture options EXCEPT

Cash dividend option

Nonfofeiture options Except

Cash dividend option

All of the following are characteristics of COBRA EXCEPT

Change in medical privacy procedures

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while

Committing a misdemeanor

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while..

Committing a misdemeanor

An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary?

Common disaster clause

2 characteristics of HMO's

Containing costs and early treatments

Which whole life policy premium type is the most common?

Continuous premium

Difference between copayment and coinsurance

Copayment is set dollar amount, Coinsurance is set percentage.

Which of the following is TRUE of the limited pay whole life policy?

Coverage continues after the policy is paid-up

Which of the following is the most common method to supplement Medicare coverage

Coverage offered by private insurers

interest rates

Current assumption whole life policies are sensitive to which of the following?