Life and health insurance
How ling is the right to examine period for new individual annuities issues in this state?
10 days
How long is the right to examine period for new individual annuities issued in this state?
10 days
an insured pays a month premium of $100 for her health insurance. What would be the duration of the grace period under her policy
10 days
The most the insurance guaranty association will pay for net cash surrender values as
100,000
The Medicare Supplement renewal commissions paid in the third year must be as high as the commission of which year?
2nd
How long is the open-enrollment period under an employer group health insurance plan?
30 days
Employer health plans must provide primary coverage for individuals with end-stage renal disease before medicare becomes primary for how many months?
30 months
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?
45 days
How many eligible employees must be included in a contributory plan?
48
how much inpatient care must be provided, following a vaginal delivery, by health insurance policies that provide maternity benefits?
48 hours
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
If a consumer requests additional concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
What is the civil penalty for the first violation of the PA insurance fraud prevention act
5,000
One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of
50 or more
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
Once it has been reasonably proven that a person has knowingly violated the insurance code regarding unfair methods of competition, the department may impose a civil penalty of
5000
At times, it is possible for a life insurance agent to affect a savings of premium rates by backdating an application for life insurance. What is the maximum amount of time that an application may be backdated?
6 months
How long is an open enrollment period for Medicare Supplement policies?
6 months
How many eligible employees must be included in a contributory plan?
75
How many eligible employees must be included in a contributory plan
75 percent
a licensed producer moving to PA may become licensed as a resident if the producer submits a completed application within how many days of establishing residence in PA with proof of licensing from their prior home state
90
A hospital indemnity policy will pay
A benefit for each day the insured is in the hospital
Which statements best defines a multiple employer welfare arrangement MEWA
A joining together by employers to provide health benefits for employee
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called
Accelerated Benefit Provision
What is the amount a physician or supplier bills for a particular service or supply?
Actual Charge
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?
Annuity Certain
Which of the following types of agent authority is also called "perceived authority"
Apparent
In a replacement situation all of the following must be considered except
Assests
Which of the following is a feature of a variable annuity
Benefit payment amounts are not guaranteed
Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount?
Buy sell agreement
Which of the following requires certain qualifying factors be met in order for an insured to receive accelerated death benefits?
Conditions for payment form
An individual has just borrowed 10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing Term
What is an important feature of a dental expense insurance plan that is not typically found in a medical expense insurance plan
Diagnostic and preventative care
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase
What is the difference between the medicare approved amount for a service or supply and the actual charge?
Excess charge
Most LTC plans have which of the following features?
Guaranteed renewability
Which of the following statements is correct concerning the relationship between medicare and HMOs
HMOs may pay for services not covered by medicare
Under which of the following circumstances can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance?
If a consumer does not sign and return the notice of disclosure within 30 days
After a hearing, if the commissioner finds that a licensee in violation of the state insurance laws, the commissioner can do any of the following except
Imprison the licensee
Which statement regarding insurable risks is NOT correct?
Insureds cannot be randomly selected
Which of the following entities has the authority to make changes to an insurance policy
Insurer executive office
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
It is a percentage of the cash value and decreases over time
When a reduced paid-up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
Which of the following is not true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy of this client?
Limited pay whole life
. All of the following are true regarding the Medical Information Bureau (MIB) EXCEPT
MIB reports are based upon information supplied by doctors and hospitals
Under the affordable care act, which classification applies to health plans based on the amount of covered costs?
Metal level classification
How often may a viatical settlement provider contact an insured regarding the insured's health status if the insured's life expectancy is more than one year?
Once every 3 months
What is the initial period of the time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered
Probationary Period
Which of the following insurance options would be considered a risk-sharing arrangement?
Reciprocal
When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?
Reimbursement
When the insured initiates the cancellation of a policy, the unearned premium will be refunded
Short rate basis
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following best describes a "vatical settlement purchaser"?
Someone who gives money as a consideration for a life insurance policy
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
Children's riders attached to whole life policies are usually issued as what type of insurance
Term
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
Which of the following best describes what the annuity period is?
The Period of time during which accumulated money is converted into income payments
The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is TRUE?
The cash value will be paid to the annuitant estate
Which of the following is true regarding a waiver of a surrender charge on an annuity contract?
The charge may be waived if the annuitant is confined to a long-term care facility for at least 30 days
The Policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased only by providing evidence of insurability
Which of the following protects consumer against the circulation of inaccurate or obsolete personal or financial information?
The fair credit reporting act
Which of the following protects consumer against the circulation of inaccurate or obsolete personal or financial information?
The fait credit reporting act
When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?
The insurance company general account.
All of the following are true regarding a decreasing term policy except
The payable premium amount steadily declines throughout the duration of the contract
An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?
The policy will terminate when the loan amount with interest equals or exceeds the cash value
Regarding Medicare SELECT policies, what are restricted network provisions?
They condition the payment
Which of the following is true regarding Medicare supplement policies?
They must be guaranteed renewable
What do long-term care policies offer to policyholders to account for inflation?
They offer the option of purchasing coverage that raises benefit levels accoordingly
Which provisions states that the insurance company must pay medical expense claims immediately?
Time of payment of claims
The paid up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy
The insurer must be able to rely on the statements in the application and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as
Utmost good faith
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
Within 90 days or as soon as reasonably possibly, but not to exceed 1 year
A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called
accelerated benefit provision
All of the following statements are true regarding installments for a fixed period annuity settlement option except
it is a life contingency option
Which of the following best describes annually renewable term insurance?
it is level term insurance
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
When would a 20 pay whole life policy endow
when the insured reaches age 100
