Final Insurance Exam

in order for a business partner to be eligible for Keogh plan, he/she must have work full time and own at least how much of the business

%10

an annuity has accumulated the cash value of 70,000 of which 30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive

70,000

Which of the following is not a standard exclusion in life insurance policies

Disability

which of the following is true regarding viatical settlements and annuity contracts

a business entity may receive a viatical settlement broker license

all of the following must be included in the report to the commissioner after felony conviction or administrative action is taken against a licensed insurance agent except

a copy of the agents license

According to the entire contract provision, a policy must contain

a copy of the original application for insurance

under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner

cash surrender

all of the following are consideration in an insurance policy except

cash value in the policy

an insured and his spouse recently had a child. which of the following riders would allow the couple to insure the child for a limited period at a specified amount

children's term rider

most methods used to determine the suitability of a particular annuity recommendation to a client are based on information regarding all of the following except

clients insurability

a lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of

coercion

an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible. which term describes what the agent has done

misrepresentation

What does basic medical expense cover

non surgical services a physician provides

cash values guarantees in a whole life policy are called

nonforfeiture values

an employee is insured by a group major medical plan that is provided through her employer. The employer contributes 75% of the premium and the employee contributes 25%. If the insured recievieved a benefit from this policy in the amount of 1,000 how much of this benefit would be taxed as income

0 -group and dental expenses benefits

the insured under a 100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. it was determined that the accident was his fault. the triple indemnity rider in the policy specific that the death must not be contributed by the insured in any many in this case, what will the policy beneficiary receive

100,000

an agent in an insurer's office has been transacting life insurance policies but licenses only to transact property and casualty policies. The agent may be subject to all of the following policies except

1000 fee for each life insurance policy written

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

2 years

an insurer moved into a new house 10 days ago how many more days does he have to report change to commission

20

Under the mandatory uniform provision Notice of Claim must submitted to the insurer within what time parameters

20 days

how many hours of continuing education would need to be completed by an agent holding life, health, property and casualty license

24

a retail shop owner is insured under a business overhead expense policy that pays a max monthly benefit of 2500. his actual monthly expenses are 3000 if the owner becomes disabled the monthly benefit payable under his policy will be

2500

all long term care policy advertisemeents must be retained by the insureer for at least how many hours from the date the a was first used

3 years

a licensed agent contract with the insurer is not completely valid unless the insurer has also appointed the agent. Within how many days from the date of execution of the first insurance application must the agent be appointed

30 days

during policy replacement the replacing insurer must notify existing insurers within what time period

5 business days

an agent whose license is denied or revoke must wait how long before reapplying

5 years

an insured owes a 50,000 whole life policy. At age 47, the insured decides to cancel his policy and execrcise the estended term option for the policy's cash value, which is currently 20,000. What would be the face amount of the new policy

50,000

which of the following would be required to become a licensed as an insurance as an insurance producer

a customer service representative who solicits no more than one policy year

which of the following statements is not true regarding health insurance policy provisions

all additional provisions written by insurers are cataloged by their respective states

who is legally required to keep records pertaining to insurance transactions

all licensees

which of the following statements is incorrect concerning modified endowment contracts (MECS)

an mec must always pass the 7 pay test

how often must a viatical settlement broker license be renewed

annually

in whole life insurance, when is the policy cash value scheduled equal the face amount

at the insureds age of 100

an underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses

attending physicians statement

a corridor deductible applies between

basic and major medical coverage

long term care policies must provide to their policyowners all of the following features except

be incontestable after 6 months

in the case of policy renewal an insurer must issue to the policy holder a disclosure of information practices

only when such a disclosure has not been issued in the last 24 hours

a married couple purchase a life insurance policy on their newborn baby. they concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agen recommend.

payor benefit

Which of the following riders would not cause the death benefit to increase

payor benefit rider

what is the difference between a straight life policy and a 20-pay whole life policy

premium payment peroid

in group insurance the primary purpose of the coordination of benefits provision is to

prevent overinsurance

which of the following best describes the type of care provided by HMOs

preventative

all of the following are true of annually renewable term insurance except

proof of insurability must be provided at each renewal

the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except

purchase of a new home

an insured purchased a health insurance policy with a renewability clause that states the the policy is guaranteed renewable. This means that as long as the required premiums are paid, the policy will continue until the insured

reaches 65

your client was insured under her employer group life insurance plan at her place of employments group life insurance plan at her place of employment she contacted you as she was terminated from her job she wants to convert her group policy to an individual policy. all of the following statements about her situation are correct except

she will be able to convert to term insurance

insured have the rights to do which of the following if they have not recieved the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy

submit the description in their own words on a plain sheet of paper

which of the following is a major consideration when making recommendations to a client regardin gthe purchase or exchange of an annuity

suitability

which of the following are characteristics of term life insurance

temporary protection, renewability, no cash value

which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs

term insurance

when a prospective client decides to purchase an annuity he asks you to recommend a particular product. You ask him to disclose to you certain aspects of his current financial situation. which of the following items is the least important to you for recommendation of an annuity product

the clients health

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 premium will be waived until she is 21

what is the purpose of the agent's report in the application process

to provide additional info about the applicant to the underwriters

considering the principles of liequity how would policyowners use todays cash values in a life insurance policy

use it for emergency expenses

because of an injury an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet the policy remained in force. The policy includes

waiver of premium rider

if the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policy owner

when the policy is delivered

which of the following actions does not constitute false advertising

with premiums based on the age at which employment ends

which of the following statements is false: -the physical exam and autopsy provision gives the insurer the right to examine the insured as often as may be reasonably necessary when a claim is pending -the insurer als have the right to conduct an autopsy if not forbidden by state law -the insurer does not have the right to conduct an autopsy -the physical exam and autopsy provision gives the insurer the right to examine the insured at its own expense

the insurer does not have the right to conduct an autopsy

onc condition placed on group life coverage provided through a group credit life plan is

the plan coverage may only cover the remaining balance on the account

all of the following are true of the survivorship life policy except

the premium based on the age of each insured

According to the common disaster clause if the insure and primary beneficiary are killed in the same accident and it cannot be determined who died first which of the following will be assumed

the primary beneficiary died before the insured

Which of the following is true regarding optional benefits with long term care policies

they are available for additional premiums.

medicare is a health insurance program for all of the following individuals except

those with low income and low assets

when an insured terminated membership in the insured group, the insured can convert to

whole life without proof of insurability

what does the life accident and sickness insurance guaranty association guard against

insurer insolvency

a life insurance policy qualifies a modified endowment (MEC) if the amount of premium paid exceeds the amount that would have provide paid up insurance in how many years

7 years

How does insurance distribute the financial consequence of individual losses

it transfers the risk to all persons insured

Dividends received on participating life insurance policies are

not taxable because they are a return of unused premiums

which of the following best describes a presumptive disability

one that is severe enough that the insured automatically qualifies for full disability benefits

which of the following describes the relationship between a capital sum and a principal sum

capital sums are percentages of principal sums

an application gives her agent a completed application and initial premium. What can the agent issue her that acknowledges the initial premium payment

conditional receipt

which of the following elements of insurance contract requires paying premium and providing a statement of good health

conditional receipt

what is the main difference between coinsurance and copayments

copayment is a set dollar amount

decreasing term insurance is often used to

coverage a mortgage

When filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available what could the applicant do to properly correct his mistake

cross the incorrect answer, write the correct one beside it and initial the answer

an employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under social security

currently insured

an insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

delivered

all of the following are features of a health insurance plan purchased on health insurance marketplace except

dollar limits on essential benefits

a major medical expense policy woul exclude coverage for all of the following treatments except

drug addiction

an adjustable life policy can assume the form of

either term insurance or permanent insurance

the uniform provision law that prevents the insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called

entire contract provision

continuimg education must be completed

even-numbered years

an applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts

fair credit reporting act

an insured bought an insurance policy that requires him to pay 150 in premiums on the 15th of each month. he then takes an extended vacation and forgets to pay the premium. ten days later his policy is still in affect and has not lapsed. which policy provision allowed for this

grace period

all of the following information needs to be included on an application for life insurance except

health insurance policies in force

an agent has moved from va to another state when will his license authority be terminated

immediately

Life income joint and survivor settlement option guarantees

income for 2 or more recipients until they die

an insured hospital policy states that it will pay him a flat fee of 75 per day for each day he is hospitalized. the policy pays benefits on what basis

indemnity