Insurance Licensing Exam
6
Medicare Supplement Insurance is guaranteed issue if the policy effective date is within ___ months of the insured's Medicare Part B starting date
15 days
Once the insurance company receives a notice of claim, they have ____-____ to send the claim form.
at the moment of birth
When is a group health policy required to provide coverage for a newborn child?
At the time of application
When must a producer deliver a Notice Regarding Replacement of Life Insurance?
One who is incapable of self-sustaining employment due to a physical handicap
Which dependent of an insured is eligible for coverage under a health insurance policy issued by the Iowa Comprehensive Health Insurance Association?
create new insurance laws
Which of these is NOT a duty of the Commissioner? Enforce current insurance laws Create new insurance laws Issue licenses Approve policy forms
Guaranteed Renewable
Which type of renewability best describes a Disability income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class? must be renewed as long as the premiums are paid until a set age. these usually have increasing premiums
Payor Provision
provides that in the event of death or disability of the adult premium payor, the premiums on a juvenile policy will be waived until the insured child reaches a specified age or the maturity date of the contract.
Variable Life
Life insurance immediately creates an estate upon the death of the insured. Which of the following policies is characterized by a guaranteed minimum death benefit? A life insurance policy where the insured determines how to invest the dollars that accumulate in cash value
Modified Premium Life
Distinguished by premiums that are lower than typical whole life premiums during the first few years (usually five) and then higher than typical thereafter
Notify the replaced insurance company
During the course of a Medicare supplement sale, T the producer determines there is an existing policy being replaced. Which of these actions is T NOT required to perform? Notify the replaced insurance company Give the insured a written replacement notice Submit a written replacement notice to the replacing insurance company Give a list of all health policies the agent sold to applicant in the past
the losses result from accidental injuries
Insured losses are covered immediately after a health policy is reinstated when
Misrepresentation
"making an unfair comparison of two companies"
domestic
An insurance company that conducts business in Iowa and was incorporated in Iowa is called a(n) ______ insurer.
A Variable annuity
Annuity that has a varying rate of return based on the mutual funds in which one has invested pays benefits based on units rather than specific dollar amounts
Misrepresentation
Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?
Mutual
Which type of insurance company allows their policyowners to elect a governing body?
umemployment
All of these are considered to be a benefit under Social Security, EXCEPT for: survivorship unemployment disability retirement
Outline
when a medicare supplement policy is delivered, disclosure standards require that a(n) ____ of coverage be provided to the insured
30
The required free-look period for a Medicare Supplement policy is _____ days.
$10,000
According to Iowa insurance law, anyone found to have violated a cease and desist order may be subject to a fine of up to _____ for each violation
10 insureds
According to Iowa law, a group life insurance policy requires a minimum of how many insureds?
two years from the date the policy was issued
According to the Time Limit of Certain Defenses provision in an Individual Health Insurance Policy, nonfraudulent misstatements first become incontestable
Aleatory
Performance is conditioned upon a future occurrence. A contract in which the participating parties agree to exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.
allowable amounts under Medicare Part B
What does a Medicare Supplement Policy cover?
Fund a buy-sell agreement
What is considered a valid reason for small businesses to insure the lives of its major shareholders?
$5,000
What is the MAXIMUM fine for willfully violating the Unfair Trade Practice laws of Iowa?
12 months
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?
Family Maintenance Policy
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
Distributions are received tax free
How are ROTH IRA distributions normally taxed?
76
Inflation protection is not required in a partnership long-term care policy if the individual is at least how old at issue
20 days
Insurers may request a hearing within ____ if their policy is rejected.
Twisting
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? Inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance
Full benefits are payable under the Master contract
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
10
The Commissioner must give _____ days notice prior to holding a hearing regarding a producer's violation of an unfair trade practice
Decreasing Term Insurance
A Family Income Policy is a combination of Whole Life and
45 days
Health insurance will automatically be placed back in force if the insurer fails to notify an applicant within _____ that the reinstatement application was denied.
3 years
How long does a business entity's license remain in effect?
10 days
In Iowa, monthly-premium health insurance policies must provide a grace period of at least
whole life
What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?
alien company
A French insurance company conducting business in Iowa would be known in Iowa as a(n)
Family Maintenance Policy
A combination of whole life insurance and level term insurance to provide permanent coverage (lump sum payment to beneficiary when the insured dies) and a monthly family maintenance portion for a set period of time following the insured's death.
8%
A life policy loan in Iowa cannot charge a fixed rate of interest higher than
Health Maintenance Organization (HMO)
A medical care provider which typically delivers health services at its own local medical facility is known as
20%
A plan sponsor must withhold ____ of distribution in federal taxes on a rollover.
20% is withheld for income taxes
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
on the application
if a medicare supplement policy involves replacement it must be verified on a question located
waiver-of-premium provision
if the insured becomes totally disabled, all premiums coming due during the period of disability are waived
delivery receipt
signed document that starts a free look period
$25,000 individual whole life policy
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a
cash value
The investment gains from a Universal Life Policy usually go toward
