Life and Health Insurance ExamFx

Critical illness

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as

The full death benefit

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

Cost of living rider

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?

Increasing

A return of premium term life policy is written as what type of term coverage?

Imprison the licensee

After a hearing, if the Commissioner finds that a licensee is in violation of the state insurance laws, the Commissioner can do any of the following EXCEPT

There is a requirement to prove insurability on the part of the participants

All of the following are characteristics of a group life insurance plan EXCEPT...

Having all employees complete continuing education courses once every 2 years

All of the following are licensing requirements for a business entity, EXCEPT

Buy-sell agreement

All of the following are personal uses of life insurance EXCEPT...

Renewal examination

All of the following are requirements for producer license renewal EXCEPT

Being age 65

All of the following are requirements of eligibility for Social Security income benefits EXCEPT

$8,000, 60 days

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?

Medical Information Bureau

An insurance company wants to obtain the insurance history of an applicant. Which source releases coded information to insurers regarding information included on previous insurance applications?

Medicare SELECT

An insured is covered under a Medicare policy that provides a list of network healthcare providers that the insured must use to receive coverage. In exchange for this limitation, the insured is offered a lower premium. Which type of Medicare Policy does the insured own?

Unpaid premium

An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pays the insured the difference. What provision allows for this?

If the primary beneficiary predeceases the insured

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

The policy will terminate when the loan amount with interest equals or exceeds the cash value

An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?

50%

An insurer may provide commissions to an agent for the sale of a long-term care policy only if the first year commission in NOT greater than what percentage of the first year premium?

It is fully funded by Social Security taxes (FICA)

Concerning Medicare Part B, which statement is INCORRECT?

Interest

During partial withdrawal from a universal life policy which portion will be taxed?

Increase benefit levels without providing proof of insurability

Guarantee of insurability option in long-term care policies allows the insured to...

The individual insured

In a group policy, who is issued a certificate of insurance?

Assets

In a replacement situation, all of the following must be considered EXCEPT

Upon the last death

In a survivorship life policy, when does the insurer pay the death benefit?

Increase premiums

In an optionally renewable policy, the insurer has which of the following options?

Occasional nursing or rehabilitative care

In long-term care insurance, what type of care is provided with intermediate care?

Join the group after the effective date

Ina group health policy, a probationary period is intended for people who

10%

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?

At any time

Insurers are required to keep records. When may the Department examine these records?

Generally not taxed as income

Life insurance death proceeds are

Attending physician

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

Misrepresentation

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

50/50

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 best fit Ray?

The individual mandate

The Affordable Care Act requires all US citizens and legal residents to have qualifying health care coverage. This is known as...

Depends on the performance of a separate account

The death benefit in a variable universal life policy...

A presentation of non-guaranteed elements of a policy

The term "illustration" in a life insurance policy refers to

made by the business and are not tax-deductible

Under a Key Person disability income a policy, premium payments are

Unlimited

Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?

Fines up to $1,000 for each act

Violation of unfair discrimination law may result in all of the following penalties EXCEPT

$5,000

What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?

Increasing term

What type of insurance would be used for a Return of Premium rider?

30 days

When a producer holding a certificate or a broker's license has a change in his/her residence or business address, he/she must notify the Department of insurance and any company for which the producer holds an appointment within...

When the application is signed and a check is given to the agent

When is the earliest a policy may go into effect?

Alien insurer

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Need is predicted using the number of years until the insured's retirement

Which is NOT true regarding the needs approach method of determining the value of an individuals life?

MEWAs are groups of at least 3 employees

Which is incorrect about MEWAs?

Life income with period certain

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to designated beneficiary?

Net premium plus expenses

Which of the following best describes gross annual premium?

Recipient's life expectancy and amount of principal

Which of the following factors determine the amount of each installment paid in a Life Income Option arrangement?

It can be owned by individual employees

Which of the following is NOT true about a group annuity?

Life Paid-up at Age 65

Which of the following is an example of limited-pay life policy?

It remains the same no matter how many children are added to the policy

Which of the following is true about the premium on the children's rider in a life insurance policy?

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

Which of the following is true regarding elimination periods and the cost of coverage?

A person who negotiates insurance contracts

Which of the following persons is required to hold a producer license?

Medicaid

Which of the following programs expands individual public assistance programs for people with insufficient income and resources?

Consumer report

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Suicide is excluded for a specific period of years and covered thereafter

Which of the following statements about a suicide clause in a life insurance policy is TRUE?

Apparent

Which of the following types of agent authority is also called "perceived authority"?

Calls based from outside of the US

Which of the following would NOT be considered an exception to the National Do Not Call List?

Time of Payment of claims

Which provision states that the insurance company must pay Medical Expense claims immediately?

Vatical settlement providers

Who effectuates vatical settlement contracts?

unpaid premium

an insured owns his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim and pays the insured the difference. What provision allows for this?

illegal

An insurer devices an intimidation strategy in order to corner a larger portion of the insurance market. Which of the following best describes this practice?

the insured

under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to...

All

A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how much of the commission will the producer receive?

Accelerated benefit provision

A provision in a life insurance policy that providers for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called

Coverage applies on and off the job

All of the following are true about group disability income insurance EXCEPT

the insured was in compliance with the policy requirements regarding claims

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 statement that is sufficiently clear to identify the insured and the nature of the claim

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under a accident and health policy must contain

The charge may be waived if the annuitant is confined to a long-term care facility for at least 30 days

Which of the following is true regarding a waiver of a surrender charge on an annuity contract?

Conformity with state status

which of the following provisions requires that any policy language that is in conflict with the state statutes of the state in which the insured resides is automatically amended to conform with those of the state residence?

This rider is available to all insureds with no additional premium

All of the following are true regarding the guaranteed insurability rider EXCEPT

Lower

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

transfer of all ownership rights in a policy

An absolute assignment is a

As of the application date

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

The insurance company's general account

When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?

Return of premium

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all the premiums paid. Which rider is attached to the policy?

Income lost by the insured's liability to work

Which benefits would a disability plan most likely pay?

Recipient's life expectancy and amount of principal

Which of the following factors determines the amount of each installment paid in a Life income option arrangement?

Medical History

Which of the following information regarding an insured is NOT included in an investigative Consumer Report, which is requested by an underwriter?

entire contract clause

the provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the...

They have a guaranteed minimum interest rate

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

That its policies are covered by a state Guaranty Association

Which of the following may NOT be included in an insurance company's advertisement?

Human life value approach

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

By conditions of employment

Which of the following options best depicts how the eligibility of members for group health insurance is determined?