Life and Health (FL 2-15) Part 1

What is the typical deductible for basic surgical expense insurance?

$0

What does "level" refer to in level term insurance?

Face amount

What is the name of the insured who enters into a viatical settlement?

Viator

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

How many consecutive months of coverage (other than in an acute care unit of a H) must LTC insurance provide in this state?

12

How long is an open enrollment period for Medicare supplement policies?

6 months

An H indemnity policy will pay A. A benefit for each day the insured is in a H B. Income lost while the insured in in the H C. All expenses insured by the sat in the H D. Any expenses occurred by the stay in the H, minus coinsurance payments and deductions

A. A benefit for each day the insured is in a H

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance? A. A debtor has an insurable interest in the life of a lender B. Business partners have an insurable interest in each other C. A married person has an insurable interest in their spouse D. An individual has an insurable interest in their own life.

A. A debtor has an insurable interest in the life of a lender

An insured misstated her age on an application for an individual health insurance policy. the insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued? A. Adjust the claim benefits to reflect the insured's true age B. Deny any claims and cancel the policy C. Deny paying a claim based on misrepresentation D. Pay the full amount of a claim because the contestable period has ended

A. Adjust the claim benefits to reflect the insured's true age

The LEAST expensive first-year premium is found in which of the following policies? A. Annually Renewable Term B. Increasing Term C. Decreasing Term D. Level Term

A. Annually Renewable Term

When an annuity is written, whose life expectancy is taken into account? A. Annuitant B. Beneficiary C. Life expectancy is not a factor when writing an annuity D. Owner

A. Annuitant

In a replacement situation, all of the following must be considered EXCEPT A. Assess B. Benefits C. Limitations D. Exclusions

A. Assess

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? A. Cash surrender B. Reduced paid-up C. Paid-up options D. Extended term

A. Cash surrender

Which of the following is NOT typically excluded from life policies? A. Death due to plane crash for a fare-paying passenger B. Self-inflicted death C. Death that occurs while a person is committing a felony D. Death due to war or military service

A. Death due to plane crash for a fare-paying passenger

If an insured changes his payment plan from monthly to annually, what happens to the total premium? A. Decreases B. Stays the same C. Doubles D. Increases

A. Decreases

The automatic premium loan provision is activated at the end of the A. Grace period B. Free-look period C. Elimination period D. Policy period

A. Grace period

What are the three basic coverages for medical expense insurance? A. H, Surgical, Medical B. Basic, Major, Overhead C. Medical, Dental, Vision D. Reimbursement, Preventive, Service

A. H, Surgical, Medical

Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information A. Held or transmitted in any form B. Transmitted electronically only C. Held in a computer format D. Held or transmitted in paper form

A. Held or transmitted in any form

A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT A. Income B. Eyesight C. Limb D. Life

A. Income

Which type of insurance would be used for a Return of Premium rider? A. Increasing Term B. Universal Life- Option A C. Universal Life- Option B D. Decreasing Term

A. Increasing Term

Which of the following entities can legally bind coverage? A. Insurer B. The insured C. Federal Insurance Bond D. Agent

A. Insurer

In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost A. Is not covered B. Must be covered by the insurer C. Count towards deductible D. Count towards coinsurance

A. Is not covered

Which statement is NOT true regarding a Straight Life policy? A. Its premium steadily decreases over time, in response to its growing cash value B. The face value of the policy is paid to the insured at age 100 C. It usually develops cash value by the end of the third policy year D. It has the lowest annual premium of the three types of While Life policies

A. Its premium steadily decreases over time, in response to its growing cash value

Which of the following premium modes would results in the highest annual cost for an insurance policy? A. Monthly B. Quarterly C. Semi-annual D. Annual

A. Monthly

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to A. Purchase a single premium policy for a reduced face amount B. Purchase a term rider to attach to the policy C. Pay back all premiums owed plus interest D. Receive payments for a fixed amount

A. Purchase a single premium policy for a reduced face amount

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 A. Required a premium increase each renewal B. Built cash value C. Required proof of insurability every year D. Decreased death benefit at each renewal

A. Required a premium increase each renewal

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? A. Revocable B. Primary C. Contingent D. Irrevocable

A. Revocable

Which of the following is NOT a feature of a guaranteed renewable provision? A. The insurer can increase the policy premium on an individual basis B. The insured has a unilateral right to renew the policy for the life of the contract C. Coverage is not renewable beyond the insured's age 65 D. The insured's benefits cannot be reduced

A. The insurer can increase the policy premium on an individual basis

Which of the following is NOT a feature of a noncancellable policy? A. The insurer may terminate the contract only at a renewal for certain conditions B. The premiums cannot be increased beyond the amount stated in the policy C. The guarantee to renew coverage usually applies until the insured reaches certain age D. The insured has the right to renew the policy for the life oft the contract

A. The insurer may terminate the contract only at a renewal for certain conditions

Which of the following is NOT true of life settlements? A. The seller must be terminally ill B. They could be used for a key person coverage C. They could be sold for an amount greater than the current cash value D. They involve insurance policies with large face amounts.

A. The seller must be terminally ill

Which provision states that the insurance company must pay Medical Expense claims immediately? A. Time of Payment of Claims B. Payment of Claims C. Legal Actions D. Relation of Earnings to Insurance

A. Time of Payment of Claims

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT A. Unearned premiums are retained by the insurance company B. The insurer must provide the insured a written notice of the cancellation C. Claims incurred before cancellation must be honored D. An insurance company may cancel the policy at any time

A. Unearned premiums are retained by the insurance company

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? A. Viatical settlement B. Estate liquidation C. Nonpayment of premium D. Change of beneficiary

A. Viatical settlement

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

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

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

To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?

At the time of application

Which of the following would basic medical expense coverage NOT cover? A. Hospice B. Surgeon's services C. Mental illness D. Maternity

B. Surgeon's services

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT? A. Premiums are determined by age, occupation, and individual underwriting B. 100% participation of members is required in noncontributory plans C. Each member covered receives a policy D. Coverage cannot be converted when an individual leaves the group

B. 100% participation of members is required in noncontributory plans

All of the following are person uses of life insurance EXCEPT A. Cash accumulation B. Buy-sell agreement C. Survivor protection D. Estate creation

B. By-sell agreement

All of the following are duties and responsibilities of producers at the time of application EXCEPT A. Check to make sure that there are no unanswered questions on the application B. Change any incorrect statement on the application by personally initialing next to the corrected statement C. Explain the nature and type of any receipt the producer is giving to the applicant D. Probe beyond the stated questions if the producer feels the applicant is misrepresenting or concealing information

B. Change any incorrect statement on the application by personally initialing next to the corrected statement

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? A. Adhesion B. Consideration C. Good faith D. Representation

B. Consideration

Which of the following is NOT an example of a valid insurable interest? A. Child in parents' lives B. Debtor in the life of the creditor C. Business partners in each other's lives D. Employer in key employee's life

B. Debtor in the life of the creditor

Social security disability definition includes of the following EXCEPT A. A physical impairment expected to result in death B. Disability expected to last for at least 6 months C. The inability to engage in any gainful work D. Disability resulting from a medically determinable mental impairment

B. Disability expected to last for at least 6 months

You did not enroll in Medicare Part B when you first became eligible. Which of the following would allow you another opportunity to enroll? A. Special enrollment period B. General enrollment period C. Any time D. Initial enrollment period

B. General enrollment period

Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT A. Coverage for plan participants is uniform B. Individual members of the group may select the level of benefits for their own coverage C. The plan is based on other than individual selection D. All eligible employees must be covered.

B. Individual members of the group may select the level of benefits for their own coverage

A guaranteed renewable disability insurance policy A. Cannot be cancelled by the insured before age 65 B. Is renewable at the insured's option to a specified age C. Is renewable at the option of the insurer to a specified age of the insured D. Is guaranteed to have a level premium for the life of the policy.

B. Is renewable at the insured's option to a specified age

Which of the following is true about the mandatory free look in a Life Insurance policy? A. It is optional on all life insurance policies B. It commences when the policy is delivered C. It commences when the application is signed D. It applies only to term life insurance policies

B. It commences when the policy is delivered

Which of the following statements is NOT true concerning Medicaid? A. It is intended to provide medical assistance for certain categories of people who are needy B. It consists of 3 parts: Part A: H-pitilization, Part B: doctor's services, Part C: disability income C. It is a state program D. It is funded by state and federal taxes

B. It consists of 3 parts: Part A: H-pitilization, Part B: doctor's services, Part C: disability income

Which statement is NOT true regarding a Straight Life policy? A. It has the lowest annual premium of the three types of Whole Life policies B. Its premium steadily decreases over time, in response to its growing cash value C. The face value of the policy is paid to the insured at age 100 D. It usually develops cash value by the end of the third policy year

B. Its premium steadily decreases over time, in response to its growing cash value

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 A. Proof of loss B. Legal actions C. Time limit on certain defenses D. Payment of claims

B. Legal actions

With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance? A. Notice of policy cancellation B. Payment of premium C. Promise to renew the policy at the end of the policy period D. Providing warranties on the application

B. Payment of premium

Which of the following provisions is mandatory for health insurance policies? A. Intoxicants and narcotics B. Physical examination and autopsy C. Recurrent disability D. Unpaid premiums

B. Physical examination and autopsy

Another name for a substandard risk classification is A. Elevated B. Rated C. Controlled D. Declined

B. Rated

Which of the following is NOT the consideration in a policy A. The promise to pay covered losses B. The application given to a prospective insured C. Something of value exchanged between parties D. The premium amount paid at the time of application

B. The application given to a prospective insured

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 H-pitilization period. Which of the following is true? A. The group plan will pay depending on the employee's recovery B. The group plan will not pay because the employee was insured at work C. The group plan will pay D. The group plan will pay a portion of the employee's expenses

B. The group plan will not pay because the employee was insured at work

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? A. Within two years of the application, the insurer discovers a misrepresentation B. The insured is in an accident and incurs a large claim C. The insured does not pay the premium D. The insured reaches the maximum age limit specified in the policy

B. The insured is in an accident and incurs a large claim

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term? A. The insured may renew the policy for another 10 years at the same premium rate B. The insured may renew the policy for another 10 years, but at a higher premium rate C. The insured must provide evidence of insurability to renew the policy D. The insured may only convert the policy to another term policy.

B. The insured may renew the policy for another 10 years, but at a higher premium rate

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? A. One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies B. The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive C. The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time D. The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies

B. The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? A. Straight whole life B. Universal life C. Variable whole life D. Decreasing term

B. Universal life

Workers compensation insurance covers worker's medical expenses resulting from work related sickness or injuries and covers loss of income from A. Temporary job layoffs B. Work-related disabilities C. Job termination D. Plant or office closing

B. Work-related disabilities

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy? A. $0 B. $5,000 C. $9,800 D. $10,000

C. $9,800

What is the period of coverage for events such as death or divorce under COBRA? A. 31 days B. 12 months C. 36 months D. 60 days

C. 36 months

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within A. 30 days B. 60 days C. 90 days D. 120 days

C. 90 days

In a replacement situation, all of the following must be considered EXCEPT A. Limitations B. Exclusions C. Assets D. Benefits

C. Assets

The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's A. Average age B. Issue age C. Attained age D. Assumed age

C. Attained age

A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability? A. Disability buy-sell agreement B. Business disability policy C. Business overhead expense policy D. Key person insurance

C. Business overhead expense policy

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a A. Decreasing Term Policy B. Whole Life Policy C. Convertible Term Policy D. Renewable Term Policy

C. Convertible Term Policy

A key person insurance policy can pay for which of the following? A. Workers compensation B. H bills of the key employee C. Costs of training a replacement D. Loss of personal income

C. Costs of training a replacement

An insured is H-pitilizaed, with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits at at least 30 days. This indicates that his policy is written with a 30-day A. Probationary period B. Waiver of benefits period C. Elimination period D. Blackout period

C. Elimination period

Which of the following riders wold NOT increase the premium for a policyowner? A. Waiver of premium rider B. Multiple indemnity rider C. Impairment rider D. Payor benefit rider

C. Impairment rider

Which of the following entities can legally bind coverage? A. Federal Insurance Board B. Agent C. Insurer D. The insured

C. Insurer

Which of the following is NOT true regarding a flexible spending account? A. It provides an opportunity to receive benefits on a pretax basisB B. It is a cafeteria plan C. It does not have limits on contributions D. It operates on "use-or-lose" basis.

C. It does not have limits on contributions

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors? A. Risk exposure B. Morbidity C. Life expectancy D. Mortality rate

C. Life expectancy

The premium of a survivorship life policy compared with that of a joint life policy would be A. As high B. Half the amount C. Lower D. Higher

C. Lower

If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used? A. Fixed period B. Fixed amount C. Lump sum D. Life income

C. Lump sum

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? A. Approved the application B. Issued the policy C. Neither approved the application nor insured the policy D. Both approved the application and issued the policy

C. Neither approved the application nor insured the policy

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? A. Approved the application B. Issued the policy C. Neither approved the application nor issued the policy D. Both approved the application and issued the policy

C. Neither approved the application nor issued the policy

Which of the following will be included in a policy summary? A. Comparisons with similar policies B Primary and secondary beneficiary designations C. Premium amounts and surrender values D. Copies of illustrations and application

C. Premium amounts and surrender values

In the event of a loss, business overhead insurance will pay for A. Salary of the business owner B. Medical bills of the business owner C. Rent D. Loss of profits

C. Rent

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT A. Respite care B. Home health care C. Skilled care D. Custodial care in insured's house

C. Skilled care

Which of the following is NOT covered under Basic H Expense Coverage? A. Lab charges B. X-ray charges C. Surgeons' fees D. H room and board

C. Surgeons' fees

Which of the following information will be stated in the consideration clause of a life insurance policy? A. The time period allowed for the payment of premium B. The conditions for insurability C. The amount of premium payment D. The parties to the contract

C. The amount of premium payment

Which of the following is TRUE regarding variable annuities? A. The company guarantees a minimum interest rate B. A person selling variable annuities is required to have only a life agent's license C. The annuitant assumes the risks on investment D. The funds are invested in the company's general account

C. The annuitant assumes the risks on investment

The insured has his wife named as the beneficiary of his life insurance policy. To ensure that his wife has income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT A. Projected interest rate B. Face amount of the policy C. The insured's age at death D. The beneficiary's life expectancy

C. The insured's age at death

Which of the following is NOT a feature of a guaranteed renewable provision? A. Coverage is not renewable beyond the insure's age 65 B. The insured's benefits cannot be reduced C. The insurer can increase the policy premium on an individual basis D The insured has a unilateral right to renew the policy for the life of the contract

C. The insurer can increase the policy premium on an individual basis

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE? A. The policy will be void B. The insurer may dent coverage later, because of the information missing on the application C. The policy will be interpreted as if the insurer waived its right to have an answer on the application D. The policy will be interpreted as if he insured did not have an answer to the question

C. The policy will be interpreted as if the insurer waived its right to have an answer on the application

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? A. Equity Indexed Universal Life B. Variable Universal Life C. Universal Life- Option A D. Universal Life- Option B

C. Universal Life- Option A

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

A man is injured while robbing a convenience store. How does his major medical policy handle the payment of his claim?

Claim is denied if his policy contains the Illegal Occupation provision

The provision that provides for the sharing of expenses between the insured and insurance company is

Coinsurance

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefits to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

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

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefits. The insured was severely injured in an auto accident, and after 10 weeks of H-pitlization, died from the injuries. What amount would his beneficiary receive as a settlement? A. $0 B. $50,000 C. $100,000 D. $200,000

D. $200,000

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out? A. $0 B. $10,000 C. $40,000 D. $50,000

D. $50,000

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? A. 10 days B. 25 days C. 30 days D. 45 days

D. 45 days

All of the following are correct about the required provisions of a health insurance policy EXCEPT A. Proof-of-loss forms must be sent to the insured within 15 days of notice of claim B. A grace period of 31 days is found in an annual pay policy C. The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract D. A reinstated policy provides immediate coverage for an illness

D. A reinstated policy provides immediate coverage for an illness

Which of the following best describes annually renewable term insurance? A. It requires proof of insurability at each renewal B. Neither the premium nor the death benefit is affected by the insured's age C. It provides an annually increasing death benefit D. It is level term insurance

D. It is level term insurance

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

All of the following are examples of third-party ownership of a life insurance policy EXCEPT A. An insured couple purchases a life insurance policy insuring the life of their grandson B. A company purchases a life insurance policy on their manager, who is an important part of the operation C. When an insured purchased a new home, the insured made an absolute assignment of a life insurance policy to the mortgage company D. An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

D. An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

The death protection component of Universal Life Insurance is always A. Whole Life B. Adjustable Life C. Decreasing term D. Annually Renewable Term

D. Annually Renewable Term

The accelerated benefits provision will provide for an early payment of the death benefits when the insured A. Needs to borrow money B. has earned enough credits C. Becomes disabled D. Becomes terminally ill

D. Becomes terminally ill

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 A. Key person policy B. Split-dollar plan C. Stock redemption plan D. Buy-sell agreement

D. Buy-sell agreement

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? A. Legal purpose B. Contract of adhesion C. Acceptance D. Consideration

D. Consideration

The gatekeeper of an HMO helps A. Determine who will be allowed to enroll in an HMO program B. Prevent double coverage C. Determine which doctors can participate in an HMO plan D. Control specialist costs

D. Control specialist costs

Which of the following is true regarding taxation of dividends in participating policies? A. Dividends are not taxable B. Dividends are taxable only after a certain amount is accumulated annually C. Dividends are taxable in some life insurance policies and nontaxable in others D. Dividends are considered income for tax purposes

D. Dividends are considered income for tax purposes

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member? A. Spouse rider B. Children's rider C. Additional insured rider D. Family term rider

D. Family term rider

Another term used to describe "no deductible" is A. Comprehensive B. Total coverage C. Immediate cooperative D. First-dollar basis

D. First-dollar basis

The mode of premium payment A. Is the factor that determines the amount of dividends in a policy B. Is the method used to compute the cash surrender value of the policy C. Does not affect the amount of premium paid D. Is defined as the frequency and the amount of the premium payment

D. Is defined as the frequency and the amount of the premium payment

In a group health policy, a probationary period is intended for people who A. Have a pre-existing condition at the time they join the group B. Have additional coverage through a spouse C. Want lower premiums D. Join the group after the effective date

D. Join the group after the effective date

Regarding the free-look provision, the insurance company A. Cannot charge a premium after 10 days B. Must issue a free look policy for 30/31 days C. Must issue a free policy for 10 days D. Must allow the policyowner to return the policy for a full refund

D. Must allow the policyowner to return the policy for a full refund

Insurers may change which of the following on a guaranteed renewable health insurance policy? A. Coverage B. Individual rates C. No changes are permitted D. Rates by class

D. Rates by class

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the A. Secondary beneficiary B. Contingent beneficiary C. Irrevocable beneficiary D. Revocable beneficiary

D. Revocable beneficiary

An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true? A. The claim most likely will not be paid since the official claims form was not submitted B. The insurer will be fined for not providing the claims forms C. The insured must submit proof of loss to the Department of Insurance D. The insured was in compliance with the policy requirements regarding claims

D. The insured was in compliance with the policy requirements regarding claims

Which of the following is true regarding elimination periods and the cost of coverage? A. The shorter the elimination period, the lower the cost of coverage B. The longer the elimination period, the higher the cost of coverage C. Elimination periods have no effect on the cost of coverage D. The longer the elimination period, the lower the cost of coverage

D. The longer the elimination period, the lower the cost of coverage

Which of the following statements is most correct concerning the changing of an irrevocable beneficiary? A. They may be changed at any time B. They can never be changed C. They may be changed only on the anniversary date of the policy D. They can be changed only with the written consent of that beneficiary

D. They can be changed only with the written consent of that beneficiary

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? A. Universal Life - Option B B. Equity Indexed Universal Life C. Variable Universal Life D. Universal Life - Option A

D. Universal Life - Option A

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? A. Estate liquidation B. Nonpayment of premium C. Change of beneficiary D. Viatical settlement

D. Viatical settlement

The insurance policy, together with the policy application and any added riders form what is known as a(n)

Entire contract

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?

Full benefits

How are HMO territories typically divided?

Geographic areas

What is the purpose of a free-look period in insurance policies?

It allows the insured to reject the policy with a full refund

Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is

Monthly

An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?

No coverage will apply, since the injury could have been foreseen

The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called

Nonoccupational coverage

Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?

Notice of Claim

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

Don has both a basic expense and a major medical policy. He is injured in an accident, which requires several major surgeries. This quickly exhausts Don's basic expense policy. What must Don do before his major medical policy can pick up where the basic expense policy left off?

Pay a special deductible on his major medical policy

According to the PPACA metal levels classifications in a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the reaming 10%, what type of plan is that?

Platinum

Which of the following individuals must have insurable interest in the insurer?

Policyowner

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 of insurability?

Proof of insurability is not required

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Respond to the consumer's complaint

Which type of life insurance policy generates immediate cash value?

Single premium

What is the best way to change an application?

Start over with a fresh application

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Survivor protection

The period of time immediately following a disability during which benefits are not payable is

The elimination period

In a life settlement contract, whom does the life settlement broker represent?

The owner

What is the purpose of key person insurance?

To lessen the risk of financial loss because of the death of a key employee

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage