Life and Health GA #4

A qualified long-term care insurance policy must provide compound annual inflation protection to which of the following insureds? a)The insured who is 60 years old b)The insured who is 75 years old c)The insured who is 80 years old d)All insureds

a)The insured who is 60 years old

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change? a)10 days b)15 days c)30 days d)60 days

c)30 days

An insured receives an annual life insurance dividend check. What term best describes this arrangement? a)Cash option b)Reduction of Premium c)Annual Dividend Provision d)Accumulation at Interest

a)Cash option

All of the following are Nonforfeiture options EXCEPT a)Reduced paid-up b)Interest only c)Cash surrender d)Extended term

b)Interest only

Which of the following may NOT be included in an insurance company's advertisement? a)The policies' limitations or exclusions b)The name of a specific agent c)An identification of a limited policy as a limited policy d)That its policies are covered by a state Guaranty Association

d)That its policies are covered by a state Guaranty Association

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

If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used? a)Fixed amount b)Lump sum c)Life income d)Fixed period

b)Lump sum

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?a)A broad coverage area b)A low monthly premium c)Low cost deductibles d)Diagnostic and preventive care

d)Diagnostic and preventive care

The Medical Information Bureau (MIB) was created to protect a)Medical examiners that perform insurance physical examinations. b)Insurance companies from adverse selection by high risk persons. c)Insurance departments from lawsuits by policyowners. d)Insureds from unreasonable underwriting requirements by the insurance companies.

b)Insurance companies from adverse selection by high risk persons.

Which of the following determines whether disability insurance benefits are taxed? a)If the total of benefits paid meets the minimum state taxation standard b)Whether the premiums were tax deductible c)State statutes d)Contract provisions

b)Whether the premiums were tax deductible

In long-term care (LTC) policies, as the benefit period lengthens, the premium a)Increases. b)Remains unchanged. c)LTC premiums are not based on benefit periods. d)Decreases

a)Increases.

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option? a)Size of each installment b)Predetermined length of time stated in the contract c)Length of income period d)Amount of interest

a)Size of each installment

The term "illustration" in a life insurance policy refers to a)A depiction of policy benefits and guarantees. b)Pictures accompanying a policy. c)Charts and graphs. d)A presentation of nonguaranteed elements of a policy.

d)A presentation of nonguaranteed elements of a policy.

Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses? a)First-dollar coverage b)Corridor deductible c)Stop-loss limit d)Out-of-pocket limit

c)Stop-loss limit

An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits? a)No benefits b)Full benefits c)Partial benefits d)Full benefits until the blindness lifts

a)No benefits

Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage?a)Credit Disability b)Special Risk Policy c)Limited Risk Policy d)Specified Disease Policy

b)Special Risk Policy

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits? a)Principal is tax free, but interest is taxed. b)The entire benefit will be received tax free. c)The entire living benefit is considered taxable income. d)A portion of the benefit up to a limit is tax free; the rest is taxable income.

d)A portion of the benefit up to a limit is tax free; the rest is taxable income.

Which of the following is true regarding inpatient hospital care for HMO members? a)Care can be provided outside of the service area. b)Care can only be provided in the service area. c)Services for treatment of mental disorders are unlimited. d)Inpatient hospital care is not part of HMO services.

a)Care can be provided outside of the service area.

In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the a)Elimination period. b)Qualification period. c)Enrollment period. d)Probationary period.

a)Elimination period.

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy? a)$20,000 b)$25,000 c)$50,000 d)The face amount will be determined by the insurer.

c)$50,000

What is the purpose of a conditional receipt? a)It serves as proof that the applicant has been determined insurable. b)It is given only to applicants who fully prepay the premium. c)It is intended to provide coverage on a date prior to the policy issue. d)It guarantees that a policy will be issued in the amount applied for.

c)It is intended to provide coverage on a date prior to the policy issue.

Once the person meets the stringent requirements for disability benefits under Social Security, how long is the waiting period before any benefits will be paid? a)5 months b)12 months c)Benefits will be paid immediately. d)90 days

a)5 months