Insurance Guaranteed Questions
Riley reads and agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?
Insuring Clause
If a life insurance company uses HIV testing as a part of its underwriting when must an applicant be notified of the procedure?
Prior to performance of the test
An individual covered under a group Dental Expense plan needs to have bridgework done. This is covered as
Prosthodontics
What is another term for a health insurance policy subscriber
Participant
In insurance, what is the term used for the cause of a loss?
Peril
Which of the following types of insurance is investment based, has a level fixed premium, and nonguaranteed cash value?
Variable whole life
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability
How long is the grace period for an individual life insurance policy?
1 month
Penalty for violating fair credit reporting act
$2,500
An IRA owner who is 57 years old want to make a withdrawal form her traditional IRA. What penalty will be imposed
10%
What guarantees that the information explained in the insurance contract is true
A warranty
Which rider, when added to a disability policy, pays income during the six-month waiting period before Social Security benefits can begin?
Additional Monthly Benefit
If a licensee wants to transact insurance under a name different from that on the insurance license, the licensee must first notify the
Director
Which of the following is NOT a crucial factor in health insurance underwriting?
Income
HMO's are known as what type of plans?
Service
What does Medicare part A not cover
private room, private nurse
Which portion of a nonqualified annuity payment is taxable?
Interest earned on principal
Which of the following time periods is the general enrollment period for Medicare Part B
January 1 through March 31 each year
Which of the following entities becomes involved in the event of insurer insolvencies?
The South Carolina Life and Health Guaranty Association
In life insurance, who is not required to have an insurable interest in the insured?
The beneficiary
Spendthrift clause protects who?
The beneficiary
An employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continues to receive coverage under the plan. Which of the following explains the reason for the continued coverage?
The employee is totally disabled
Cash Value guarantees in a wholelife policy are called
Nonforfeiture values
What is the maximum fine for signing blank application forms by a producer?
$200
Which of the following would not trigger the payment of accelerated death benefits?
Being permanently disabled
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
Which of the following is a provision found in a life insurance policies?
Reinstatement
An IRA contribution can be made from which of the following?
Cash
Which of the following statements is incorrect regarding group health insurance?
Each individual must be accepted into or rejected by a group policy
A medicare supplement plan must have at least which of the following renewal provisions?
Guaranteed renewable
Which type of insurance policies provides pure life insurance protection without a savings element?
Term
An elimination period may not have to be satisfied for a disability in which of the following?
An insured suffers a relapse of a prior disability within 6-months of the initial covered disability
What does an annuity protect the annuitant against?
Living longer than expected
The benefits in Medical Expense Insurance are
Received income tax free by the individual
An individual was denied coverage under Social Security because his disability did not meet the strict definition of total disability used by Social Security. Which of the following would provide disability income coverage?
SIS rider
Combination dental plan contains both
Scheduled and nonscheduled plans
What is not a characteristic of group health insurance plans
The parties that hold a group health insurance contract are the employees and the employer
Who is the annuity owner?
The person who buys an annuity
Which service is not provided by an HMQ
Unlimited coverage for treatment for drug rehabilitation
Considering the principles of liquidity, how would the policyowner use today's cash values in a life insurance policy?
Use it for emergency expenses
Which of the following employee benefits essentially provides the employee with a wage increase and directs that wage increase to be spent on a life insurance policy?
Executive bonus
Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after the loss?
90 days
If a person qualifies for Social Security disability benefits after the 5 months elimination period, when will benefits begin?
Benefits begin at the beginning of the 6th month and are not retroactive to the beginning of the disability
Which of the following is the distinguishing characteristic of the interest-adjusted net cost method?
Considering the time value of money in comparing life insurance costs
Which is not true regarding a deferred annuity?
Income payments begin within 1 year from the date of purchase
All of the following are true about Group Life insurance except
The employer is the beneficiary
To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept called?
Insurable interest
A core Medicare supplement policy (Plan A) will cover all of the expenses except
Part A deductible
If the insurance premiums were not tax deductible, what other taxation will this affect?
Taxation of benefits
With Adjustible Life, the owner can change all of the following except
The insured
An insurer's Certificate of Authority can be cancelled by the Director for all of the following except
The insurer has a policy form that is disapproved
Who would not be eligible for coverage under key person?
The owner of a shop
What isn't true of the survivorship life policy
The premium is based on the age of each insured
In a viatical settlement the face amount
Face amount is less
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
Fixed amount
Because of the imposed blackout period, the surviving spouse will not receive social security benefits until
He or she qualifies for retirement benefits
Which is true of level term insurance?
It is temporary protection
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
An insured falls down a flight of stairs and sustains a neck injury that renders him severely disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver of Const of Insurance rider, and if so, what insurance costs would be waived?
No; it is not possible for this waiver to be included in a whole life policy
Dividends received on participating life insurance policies are
Not taxable because they are a return of unused premiums
How long is the free-look period of a Medicare supplement policy?
30 days
What is it called when a doctor accepts the Medicare approved amount?
Assignment
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
Life insurance creates an immediate estate. Which of the following best explains this statement?
The face value of the policy is payable to the beneficiary upon the death of the insured
Who doesn't have to sign an application for health insurance
Insurer
Which is not correct concerning taxation of disability income benefits?
If paid the individual, the premiums are tax deductible
An insured's 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
Which is not true regarding an optionally renewable policy?
Insurer can only cancel the policy for reasons stipulated in the contract
Which statement is required to be printed on the first page of a health insurance policy, which signals to the insured that the policy's benefits are limited?
Limited Policy Notice
Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is
Taxed as ordinary income
Which of the following is true regarding pure life annuity settlement option?
It provides the highest monthly benefit
If an insured dies, and it is discovered that the insured misstated their age or gender, the life insurance company will:
Adjust the death benefit to what the premium would have purchased at the actual age or gender
How soon should you submit proof of loss
Within 60 days
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policymaker select?
Joint and survivor
Who wouldn't be able to qualify as a group for the purpose of purchasing group health insurance
An association of 35 people
Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?
Insuring clause
Which is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?
Intermediate care
Which of the following statements describes one of the reasons individuals purchase life insurance?
It creates an immediate estate
Who would be the insured in business disability insurance?
Key employees
An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when
The insurance company accepts the risk
Restoring an insured financially after a claim is known as
indemnity
Which of the following used to be called Medicare + Choice Plans?
Medicare Advantage Plans
When a settlement option is chosen at death, how are the monthly income payments taxed?
The principal portion is generally income tax-free while the interest portion is taxed as ordinary income
The elimination period in a disability income policy is better known as
The period of time an insured must wait after the onset of an illness or injury before benefits begin
An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA
Within 60 days