Life and Health Insurance Study Guide

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to...

10 years

The replacing insurer must maintain copies of the notice, statement, and notification, to the replaced insurer for at least...

3 years

If a new individual long-term care policyholder is not satisfied with a new policy, within how many days can the insured return the policy for a full premium refund?

30 Days

Each insurer must maintain at its principal office a complete file containing every printed, published, or prepared advertisement of its policies for a period of at least?

4 Years

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?

Disability buy-sell

The Commissioner is placed in office by?

Election

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written with a 30-Day...

Elimination period

All of the following are exempt from the licensing requirement except:

Employee of insurance company involved in the effectuation of the insurance company

An individual is purchasing a permanent life insurance policy with a face value of 25k. While this is all the insurance he can afford at the time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

To send important documents to the insured through electronic mail services, all of the following must be met except?

Insured must be made aware that choosing another method may affect the validity of the document.

Which of the following is NOT a feature of a guaranteed renewable provision?

Insurer can increase the policy premium on an individual basis

Which of the following is NOT a feature of a noncancellable policy?

Insurer may terminate the contract only at renewal for certain conditions.

In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?

Insurer to the insured

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity

All of the following are true of an annuity owner except?

The owner must be the party to receive benefits

A policy must meet all of the following minimum benefits standards to be advertised or issued for delivery as a medicare supplement policy except...

The policy cannot deny a claim for losses incurred more than 12 months before the effective date of coverage due to a pre-existing condition

An individual applies for a life policy. 2 years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does NOT remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

The policy will not be affected.

An insured has chosen Joint and 2/3 survivor as the settlement option. What does this mean to the benficiaries?

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

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

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

When an insurers underwriter approves coverage

Every licensed agent must notify the commissioner of any change of the address shown on the license within how long?

Within 30 days after the change

When can long-term care policy deny a claim for losses incurred because of a pre-existing condition?

Within 6 months of the effective date of coverage

If a policy includes a free-look period of at least 10 days, the buyers guide may be delivered to the applicant no later than...

with the policy

Hospice care is intended for...

The terminally ill

What is the purpose of settlement options?

They determine how death proceeds will be paid

Which of the following statements is true concerning employer group dental plans?

They seldom contain a conversion privilege

Which of the following is NOT true regarding partial disability?

This is a form of insurance that covers part-time workers

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

Time of payment of claims

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of...?

Twisting

What kind of policy allows withdrawals or partial surrenders?

Universal life

A policyowner has a health insurance policy with his wife listed as the primary beneficiary. He would like to change the primary beneficiary to his sister. Which of the following is true?

Unless the policy designated the current beneficiary as irrevocable, the policyowner can make the change at any time.

Under a credit disability policy, until what point will payments to the creditor be made for the insured?

Until the disability ends or the debt is satisfied, whichever comes first

HIPAA applies to groups of?

2 or more

Under the mandatory uniform provision notice of claim, the first notice of injury or sickness covered under an accident and health policy must contain?

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

An insured receives annual life insurance dividend checks. What term best describes this arrangement?

Cash option

Which of the following is NOT a characteristic or a service of an HMO plan?

Contracting with insurance companies

If an insured changes his payment plan from monthly to annually, what happens to the total premium?

Decreases

Which of the following statements is correct concerning taxation of lont-term insurance?

Excessive benefits may be taxable

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

Face amount

What is the purpose of co-insurance provisions?

Help the insurance company to prevent overutilization of the policy

Why should the producer personally deliver the policy when the first premium has already been paid?

Help the insured understand all aspects of the contract

Life income joint and survivor settlement option guarantees?

Income for 2 or more recipients until they die

Annually renewable term policies provide a level death benefit for a premium that...

Increases annually

What state official is charged with the responsibility of the administration and enforcement of the Oklahoma insurance regulations?

Insurance Commissioner

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?

Insured may renew policy for another 10 years, but at a higher premium rate

B just bought a new car, which he anticipates will be paid for 4 years from now. He also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be the best for B?

Modified Life

In a long-term care policy, pre-existing conditions limitations...

Must appear as a separate paragraph and be clearly labeled.

The classification "small employer" means any person actively engaged in a business that at least 50% of its working days during the preceding year employed.

No more than 50 eligible employees

An insured does not have to pay co-insurance or deductibles on a full-series mouth x-ray, but does have to pay a deductible to get his cavities filled. Which dental plan does he have?

Nonscheduled

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

A man decides to purchase a 100,000 annually renewable term policy to provide additional protection until his children finished college. He discovered that his policy...

Required a premium increase each renewal

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 of the following policies would be classified as a traditional level premium contract?

Straight life

An agent who is resident of another state may obtain an Oklahoma nonresident license without taking a licensing examination provided

The agent is currently licensed in the state of domicile, agent obtained that license by passing a test suitable to the Oklahoma department, and state where the agent lives affords the same privilege to residents of Oklahoma. (all of these)

All of the following criteria may be utilized by a small employer carrier to determine the class of business applicable to any small employer EXCEPT:

The criteria are related to the health status or claim experience of the small employer

If the Commissioner has reason to believe that a person or insured has violated the insurance code, the commissioner may set a hearing. The notice of the hearing must be given how many days in advance?

10 Days

If a producer allows his/her license to lapse, what is the maximum time period during which the producer can reinstate the license without having to retake the examination?

12 months

In Oklahoma, how old must an individual be in order to purchase life insurance on his/her own life?

15 Years Old

When an individual life insurance policy is being replaced by an insurer using an agent, the policyowner must be given an unconditional right to a full refund premium if the policy is returned within?

20 Days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 Days

All individual and group health insurance policies must include the coverage for routine mammography screening to detect the presence of breast cancer if they provide coverage for a female who is at least?

35 Years old

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

An insured owns a 50k 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 20k. What would be the face amount of the new term Policy?

50,000

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

6 Months

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filled within,

90 days of a loss

All of the following are correct about the required provisions of a health insurance policy except...

A reinstated policy provides immediate coverage for illness

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period has expired. The insurance company will take which of the following actions regarding that has been issued?

Adjust the claim benefit to reflect the insured's true age

What is the minimum required benefit for a mammography screening for women age 40 insured under a health plan in this state?

Annual mammograms

When an annuity is written, whose life expectancy is taken into account?

Annuitant

Which statement accurately describes the change of beneficiary provisions?

Any policy that has a death benefit must also ahve a change of beneficiary provision

When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?

Application

An insured pays an annual premium to his insurer. In return promises to pay benefits in accordance with the terms of the contract. This is called...

Conditions

Which of the following includes information regarding a persons credit, character, reputation, and habits?

Consumer report

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called?

Credit life

As it pertains to group health insurance, COBRA stipulates that...

Group coverage must be extended for terminated employees up to a certain period of time at the former employees expense.

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

Interest

Which of the following is correct about a group health insurance policy?

It cannot exclude newborn children from coverage

Which of the following statements is true regarding co-insurance

Larger the % that is paid by the insured, the lower the required premium will be

A policy will pay the death benefit if the insured dies during the "20 year premium paying period", and nothing if the death occurs after the "20 year period." What type of policy is this?

Level term

According to the Oklahoma rules regulating the advertisement of life insurance, advertisements does NOT include which of the following?

Material prepared by the insurer for training new agents

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?

Old policy should stay enforced until the new policy is issued.

The commissioner may examine any company or person engaged in the insurance business as often as it is deemed appropriate, but is required to examine each foreign insurer at least

Once every 5 years

Who might receive dividends from a mutual insurer?

Policy Owner

The Federal Fair Credit Reporting Act...

Regulates consumer reports

To sell variable life insurance policies, an agent must receive all of the following except...

SEC registration

Nonforfeiture values guarantee which of the following for the policy owner?

That the cash value will not be lost

If the insured chose the reduced paid-up insurance nonforfeiture option...

The amount purchased will be as much as the cash value will purchase at the insured current age

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

If the annuitant dies before the accumulation period, who will receive the annuity benefits?

The beneficiary

If a life insurance policy has an irrevocable beneficiary designation then,

The beneficiary can only be changed with written permission of the beneficiary

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?

The insured is in an accident and incurs a large claim

Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?

They can be changed only with written consent of that beneficiary

Which of the following is a key distinction between variable whole life and variable universal life products?

Variable whole life has a guaranteed death benefit

Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract?

Viatical settlement provider

Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you reccomend?

An endowment policy

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

Attending physician

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce...

without receiving written consent from an insurance regulatory authority