ExamFX Florida Life and Health
An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay?
$5,000
An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
25%
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
3 days
In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to identify the insured and the nature of the claim.
Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-old female?
A-N
Group health insurance is characterized by all of the following EXCEPT
Adverse selection .
While a claim is pending, an insurance company may require
An independent examination as often as reasonably required
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500
Which statement accurately describes the Change of Beneficiary provision?
Any policy that has a death benefit must also have a Change of Beneficiary provision.
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true?
By law, the new, individual policy must provide the same benefits as the group insurance policy.
Agents in this state are required to promptly report all of the following to the Department EXCEPT
Change in marital status
Who examines the books and records of insurance companies in Florida?
Chief Financial Officer
A waiver of premium provision may be included with which kind of health insurance policy?
Disability Income
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions clause
Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it?
Free-look period
The guaranteed purchase option is also referred to as the
Future increase option
Which of the following is another name for a primary care physician in an HMO ?
Gatekeeper
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity
Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information
Held or transmitted in any form
Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
If the employee enrolls within a certain time period
Which of the following riders would NOT increase the premium for a policyowner?
Impairment Rider
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Interest only option
A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
NAIC
In the event of a loss, business overhead insurance will pay for
Rent
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium
What is the best way to change an application ?
Start over with a fresh application
An insured under a group health plan has a dependent child who has an intellectual disability. When the child was enrolled in the insured's policy, the insurer offered coverage at a much higher rate than for other dependents. Which of the following is true?
This is considered an illegal discrimination
An agent transacts business for Insurer A and Insurer B, both selling life insurance, and for Insurer C, selling health insurance. How many appointments must the agent hold?
Three - one for each insurer
When does a free-look period begin on a life insurance policy?
When the policy is delivered to the insured
A life insurance policy used to fund an agreement that contractually establishes the intent of someone to purchase a business upon the insured business owner's death is a
buy-sell agreement
What type of policy allows the insurance company to cancel a policy at any time?
cancellable
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
controlled
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
conversion
In long-term care (LTC) policies, as the benefit period lengthens, the premium
increases
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
indemnity
Who bears all of the investment risk in a fixed annuity?
insurance company
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
monthly
When may an insurer require an insured to provide genetic information?
never
An insured has health insurance that covers them at work and at home. This policy was written on what basis?
occupational
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
one-year term option
In a life settlement contract, whom does the life settlement broker represent?
owner
What is the major difference between a stock company and a mutual company?
ownership
Certificates of coverage are issued to
participants in a group plan
Which of the following is another term for the accumulation period of an annuity?
pay-in period
A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following EXCEPT
policyholder
If a health care plan has characteristics of an HMO and PPO, what type of plan is it?
pos
A domestic insurer issuing variable contracts must establish one or more
separate accounts
Workers Compensation benefits are regulated by which entity?
state government
Who does the secondary addressee provision protect?
the insured over the age of 64
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
the insured's premiums will be waived until she is 21.
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following time?
within 10 days of when the policy was delivered.
What is the purpose of settlement options?
They determine how death proceeds will be paid
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?
Time of Payment of Claims
Which provision states that the insurance company must pay Medical Expense claims immediately?
Time of Payment of Claims
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
Which of the following statements is INCORRECT regarding the definition of total disability?
Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience.
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of Premium
Because of an injury, an insured has been unable to work for 7 months. He wasn't able to pay his life insurance policy premium, yet the policy remained in force. The policy includes
Waiver of premium rider
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy.
A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called
a blanket policy
Which is NOT a characteristic of group health insurance?
a policy is issued to each insured individual
Whose responsibility is it to determine if all of the questions on an application have been answered?
agent
Which of the following is true regarding branch agency licensing?
agent in charge must be licensed
When transacting business in this state an insurer formed under the laws of another country is known as a/an
alien insurer
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
applicant
In a replacement situation, all of the following must be considered EXCEPT
assets
What term is used for replacing insurance policies for the sole purpose of making commissions?
churning
In the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months?
cobra
The provision that provides for the sharing of expenses between the insured and the insurance company is
coinsurance
A producer who fails to separate premium monies from his own personal funds is guilty of
commingling
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
conditional
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called
consideration
What type of premium do both Universal Life and Variable Universal Life policies have?
flexible
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
foreign
An insured received a new life insurance policy 5 days ago, but after a closer inspection of the policy provisions, decided to return it to the insurer. What provision would allow the insured to return the policy for a full premium refund?
free look
What provision in an insurance policy extends coverage beyond the premium due date?
grace period
Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?
insurance contract
Which of the following entities can legally bind coverage?
insurer
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
is not covered
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
legal actions
Under a group plan, Certificates of Insurance must include all of the following EXCEPT
the name of the writing agent
An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?
$102
An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
$120 a day
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
The sole proprietor of a business makes a total salary of $50,000 a year. This year, his medical expenses have reached a total of $75,000. What amount may the sole proprietor deduct in regards to his medical expenses?
$50,000
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity
10%
What is the maximum amount of individual life insurance coverage that a person can convert if the existing group policy has been terminated?
10,000
Group life insurance is a single policy written to provide coverage members of a group . Which of the following statements concerning group life is CORRECT ?
100 % participation of members is required in noncontributory plans .
The Florida Health Insurance Coverage Continuation Act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed
115% of the regular group rate.
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
14
On individual health insurance policies, an insurer must furnish the claimant with claim forms within how many days?
15 days
Continuing education requirements must be met every
2 years
The time limit of certain defenses provision prohibits insurers from denying a claim due to misrepresentation, as long as the policy has been in force for at least
2 years
If a parent would like to enroll a child over the age of 5 into the Florida Healthy Kids program, their family income must be under a certain percentage of the federal poverty level. What percentage?
200%
How many hours of continuing education must a newly licensed agent complete every 2 years?
24
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
After an insurer stops offering health insurance for small employers in this state, how long must the insurer wait before selling small employer insurance in the market again?
5 years
What is the statute of limitation on lawsuits for health insurance policies?
5 years
When a group policy terminates, every individual insured under the policy will be entitled to have an individual policy if the insured has been insured by the group policy for at least how many years prior to policy termination?
5 years. When a group policy terminates, every individual insured under the policy at the date of such termination who has been so insured for at least 5 years prior to such termination date will be entitled to have issued to him by the insurer an individual policy of life insurance.
Ray has an individual major medical policy that requires a coinsurance payment . Ray very rarely visits his physician and would prefer to pay the lowest premium possible Which coinsurance arrangement would be best for Ray ?
50/50
For how long is an insurance company allowed to defer policy loan requests?
6 months
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
Benefit periods for individual short-term disability policies will usually continue from
6 months to 2 years
How long must an insured wait before filing a lawsuit against the insurer?
60 days after filing proof of loss
Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted.
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?
8%
Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within
90 days
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
The term "illustration" in a life insurance policy refers to
A presentation of non guaranteed elements of a policy.
Which of the following best describes a rebate?
A producer returning part of her commission to her client, as an inducement to buy
What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
Application
An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?
Ask her to sign a statement of good health
Under a Florida Health insurance policy, medical coverage of a newborn begins
At birth
The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's
Attained age
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
What license or licenses are required to sell variable annuities ?
Both a life insurance license and a securities license
All of the following apply short - term disability plans EXCEPT
Both group and individual plans are renewable .
Which of the following meets the insureds personal needs, and is provided by nonmedical personnel?
Custodial care
A 70-year-old individual who bought a Part B Medicare policy 2 months ago just began kidney dialysis treatments this week. The individual is now applying for a Medicare supplement policy, which would begin in 8 months. Which of the following could the insurer do to avoid paying for the dialysis?
Declare a pre-existing condition
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day
Elimination period
The provision that states that both the printed contract and a copy of the application form the contract between the policyowner and the insurer is called the
Entire Contract
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
Which policy component decreases in decreasing term insurance?
Face Amount
The presumptive disability provision assumes that the insured is totally disabled upon loss of all the following EXCEPT
Feeling
No insurance policy form can be issued, delivered, or used in this state unless it has been
Filed with and approved by the Office of Insurance Regulation.
An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits?
Have accumulated 6 work credits in the past 3 years
Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The agent informs the insured of this change, and he accepts it. In response, the agent must
Have the insured sign a statement acknowledging that he is aware of the change.
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the father is disabled for more than 6 months
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceases the insured
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act?
Illegal
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
Regarding long-term care coverage, as the elimination period gets shorter, the premium
Increases
Which of the following is NOT a Medicaid qualifier?
Insurability
Which of the following entities must approve all Medicare supplement advertisements?
Insurance Commissioner or Director
What does the Guaranty Association guard against?
Insurer insolvency
Which of the following entities has the authority to make changes to an insurance policy?
Insurer's executive officer
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
A child is dependent upon her parents for support because of a physical disability. Coverage may be continued beyond the normal limiting age when the child
Is incapable of self-sustaining employment.
A guaranteed renewable disability insurance policy
Is renewable at the insureds option to a specified age
What is the main purpose of the Seven-pay Test?
It determines if the insurance policy is an MEC.
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue.
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants.
Which of the following best describes annually renewable term insurance?
It is level term insurance
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
Which of the following is INCORRECT concerning Medicaid?
It is solely a federally administered program
Which statement is NOT true regarding a policy summary?
It must be combined with a sales illustration.
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount
Which of the following is NOT true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
In a group health policy , a probationary period is intended for people who
Join the group after the effective date .
Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called
Key employee disability insurance
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-Pay Life
Agents may be found guilty of defamation if they make a false statement that is intended to?
Maliciously criticize other insurance company
A 65-year-old enrolls for benefits under Medicare Part B and submits an application for a Medicare supplement policy two months later. For which of the following reason may the insurer deny the application?
Material misrepresentation
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
Notice Regarding Replacement
Before starting operations as an HMO, the organization must meet which of the following requirements?
Obtain a certificate of authority from the Insurance Department Obtain a valid Health Care Provider Certificate from the Department of Health and Rehabilitative Services Make a deposit of $10,000 to the Rehabilitation Administration Expense Fund (All of the above)
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
An insured has health insurance that covers them at work and at home . This policy was written on what basis ?
Occupational
Which statements best describes agreement as it related to insurance contracts?
One party accepts the exact terms of the other party's offer.
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions
With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance?
Payment of premium
According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that?
Platinum
What is the difference between a straight life policy and a 20-pay whole life policy?
Premium payment period.
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Premiums are not tax deductible as a business expense.
Medicare Part D provides
Prescription drug benefit
Which of the following is NOT mandatory under the Uniform Provisions Law as applied to accident and health policies?
Probationary Period
A couple owns a life insurance policy with a Children's Term rider . Their daughter is reaching the maximum age of dependent coverage , so she will have to convert to permanent insurance in the near future . Which of the following will she need to provide for proof Finsurability ?
Proof of insurability is not required .
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by class
What effect will the long term care rider have on the death benefit of a life insurance policy if the LTC benefits were paid to the insured?
Reduce the death benefit
An insured pays $ 1,200 annually for her life insurance premium . The insured applies this year's reducing it to $ 900 . What option does this describe ?
Reduction of Premium
What method do insurers use to protect themselves against catastrophic losses?
Reinsurance
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
Required a premium increase each renewal.
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?
Return of premium
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
Revocable
An HMO that is found to be in violation by committing an unfair trade practice as define in the act, may suffer the penalty of
Revocation of license, administrative fines suspension of certificate authority.
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
Single premium whole life
An agent's appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request
An insured has endured multiple surgeries and hospitalizations for an illness during the last few months. Her insurer no longer bills her for medical expenses. Which of the following allows for that?
Stop-loss limit
Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses?
Stop-loss limit
Which of the following policies would be classified as a traditional level premium contract?
Straight life
What are the 2 offices of the Financial Services Commission?
The Office of Financial Regulation and the Office of Insurance Regulation
If an agent wants to represent more than one insurer, which of the following will be true?
The agent must be appointed by each insurer.
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment
Which of the following is NOT true regarding the annuitant?
The annuitant cannot be the same person as the annuity owner.
Which of the following would qualify as a competent party in an insurance contract?
The applicant has a prior felony conviction
Which is true regarding obtaining underwriting sources?
The applicant must be informed of the sources contacted and how the information is being gathered.
How will a life insurance beneficiary designation naming a spouse be changed by divorce?
The beneficiary designation will be voided.
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?
The benefits will be coordinated
All of the following are consideration in an insurance policy except
The cash value in the policy
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
Which of the following is INCORRECT concerning a noncontributory group plan?
The employees receive individual policies
Which of the following statements concerning group health insurance is CORRECT?
The employer is the policyholder.
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?
The group plan will not pay because the employee was injured at work.
Who chooses a primary care physician in an HMO?
The individual member
An insured purchased a noncancellable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy?
The insured is in an accident and incurs a large claim
Insured Z's health insurance policy year begins in January. His policy contains a carry-over provision. In November, he has a small claim which is less than his deductible. Which of the following is true?
The insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible
What is the only difference between blanket insurance and group health insurance?
The insured members are not named
In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?
The insured must have first been hospitalized for 3 consecutive days
An insurer hires a representative to advertise its company at a local convention. The representative lies about the details of some of the policies, in an attempt to secure more business for the company. Who is responsible for the representative's claims?
The insurer
Which of the following is NOT a feature of a noncancellable policy ?
The insurer may terminate the contract only at renewal for certain conditions .
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary.
Which of the following will vary the length of the grace period in health insurance policies?
The mode of the premium payment
An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued.
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only.
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?
The policy will not be affected.
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
If a life insurer holds the proceeds of any policy it issues, which of the following is true?
The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner.
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement
Which of the following best defines target premium in a universal life policy ?
The recommended amount to keep the policy in force throughout its lifetime
Which of the following is NOT true of life settlements?
The seller must be terminally ill
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums.
