Iowa Insurance
3 years
How long does a business entity's remain in effect?
contest a claim during the contestable period
The incontestable clause allows an insurer to
68 year old male covered by medicare
The individual most likely to buy a Medicare Supplement policy would be a(n)
forward the application to the insurer without the initial premium
What action should a producer take if the initial premium is NOT submitted with the application?
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?
detect and deter terrorism
What is the purpose of the USA patriot act
Guaranteed renewable
What is the required renewability status of all medicare supplement policies
Term rider
What kind of life insurance product covers children under their parent's policy?
Entire contract
Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions?
Marital status
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
life paid up at age 70
Which of these would be considered a Limited-Pay Life policy?
prevents an insured covered by two health plans from making profit on a covered loss
the coordination of benefits provision
Pay face amount minus the past due premium
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?
45 days
M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force??
P will still receive declared dividends
P is the insured on participating life policy. Which statement is true is P's premiums are waived due to disability
Marital deduction
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the
36 months
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?
Commingling
S the producer has deposited premiums collected from clients into his personal bank account. This illegal act is called
Legal purpose
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?
Request of the change will be refused
T is covered by an accidental death and dismemberment (AD&D) policy that has IRREVOCABLE beneficiary. What action will the insurance company take if T requests a change in Beneficiary?
Noncancellable
What type of renewability guarantees premium rates and renewability
used to prevent nonessential medical cost
Which of the following BEST describes how pre-admission certifications are used?
Producer representing a foreign insurance company
Which of the following actions by a producer would NOT result in a license suspension or revocation
Disability income policy premiums are tax-deductible
Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
HMO (Health Maintenance Organization)
Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements?
Warranty
Which of these is considered a statement that is assured to be true in every respect
Prescriptions drugs
Which of these options can an individual use their medical flexible spending account to pay for?
Evidence of insurability is required when the option is exercised
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
Annual
Which premium schedule results in the lowest cost to the policyowner?
Insuring agreement
The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)
Submit the claim in any form
What should an insured do if the insurer does not send claims forms within the time period set forth in a health policy's Claims Forms provision?
All group health plans are terminated by an employer
under which of the following circumstances will the benefits under cobra continuation coverage end
Iowa comprehensive health insurance association
which is the state's high risk pool coverage for residents who cannot obtain coverage through the traditional insurance markets
15 days
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim.
Exclusion for the medical condition
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)
Risk Classification
Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?
A minimum guaranteed death benefit is provided
Which statement is true regarding a variable whole life policy
S&P500
Equity indexed annuities are invested in which of the following
Major medical with basic/ surgical coverage
Comprehensive Major medical policies usually combine
date of delivery
Iowa's 10 day free look period for life insurance policies begins at the
Twisting
J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
income
When determining the monthly benefit amount for a diability income policy, the factor that limits the amount a prospective insured may purchase is
outline
When medicare supplement policy is delivered, disclosure standards require that a _______ of coverage be provided to the insured
Pre-existing conditions must be covered after the coverage has been in force for six months
Which Long Term Care insurance statement is true?
Insuring
Which health policy clause specifies the amount of benefits to be paid?
Delivery receipt
is the signed document that starts the free look period
Producer
A _______ is an individual who is appointed by an insurance company to transact insurance
Claim will be paid and coverage will remain in force
A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application 5 years prior. Never disclosed to the insurer. How will the insurer handle this claim?
Irrevocable
A policy owner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
30 days
A producer must notify the insurance division within__________ days of a felony conviction
Policy loan provision
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the
Cash value equals the death benefit
A whole life insurance policy endows when the
decreasing term rider
Additional coverage can be added to a Whole Life policy by adding a(n)
Time limit on certain defenses
The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is
Reinstatement
The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called
30 days
The required free look period in a medicare supplement policy is ____ days
Proof of loss
What must the policyowner provide to the insurer for validation that a loss has occurred?
26
Under the affordable care act, health coverage is provided for dependents up to the age of
4 months
V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable?
31 days
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?
Rating services
All of these are considered sources of underwriting information about an applicant EXCEPT
When the conditions of the receipt are met
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective
transfers payments to someone other than the policyowner
An assignment of benefits of a health policy
turning down a claim without providing the basis of denial
An example of an unfair claims settlement practice is
Cash surrender an existing whole life policy and purchasing a new one
An example of life insurance policy replacement would be
10 days
An individual life insurance policy issued in iowa must have a free-look period of at least
employee
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Policy owner
Life insurance replacement regulation protects the interest of
Coverage is limited to only congenital defects
All of the following statements about health coverage for newborns are correct EXCEPT
Credit life
Insurance issued on a debtor to cover outstanding balances on installment loans is called
Nonoccupational coverage
J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?
Level
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?.
Deferred
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?
10 days
The commissioner must give _________ days notice prior to holding a hearing regarding a producers violation of an unfair trade practice
Wavier of premium rider
What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?
cease and desist order
When an unfair practice has been discovered, the commissioner may issue
Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered
Which statement regarding the Misstatement of Age provision is considered to be true?
Revocable beneficiary
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner
Reimbursement
Which type policy pays benefits to a policyholder covered under a Hospital Expense policy?
Gives policyowner additional time to pay overdue premiums
With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period?
100%
A group life insurance policy insured may assign up to ______ of the insured coverage
Viatical Settlement Provider
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.
Premiums payments limited to a specified number of years
A limited pay life policy has
The insurance company
A policy of adhesion can only be modified by whom?
when the state prohibits this by law
If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations EXCEPT
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Benefits are taxable to T
Decreasing term
Credit life insurance is typically issued with which of the following types of coverage
through the Federal Marketplace
Essential benefits without annual and lifetime limits are required on any health policy purchased
excluded by the insurer in the contract provision
Health insurance benefits NOT covered due to an act of war are
180 days
How many days is a temporary producers license valid
5 years
How often must the commissioner examine each domestic insurance company
Exclusion
In a life insurance policy, which feature state that the policy will not cover certain risk?
be established by the employer
In order to establish a Health Reimbursement Arrangement (HRA), it MUST
Primary care physician
The individual who provides general medical care for a patient as well as the referral for specialized care is known as a
False financial statements
The insurance company that jack represents has been placed into rehabilitation, but jack continues to tell his clients the company is "financially strong" and he uses an outdated financial rating to back up claim. What unfair trade practice has jack committed
the cash value
The investment gains from a universal life policy usually go toward
10 % penalty is applied to withdrawals before age 59 1/2
All of the following statements about traditional retirement accounts are false except
Marital status
B the producer would like to sell an annuity to his client. Before selling the annuity, B needs to collect all of the following information from his client except
funded by insurance companies through assessments
The iowa life and health insurance guaranty association is
