life and health missed questions
a brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses?
"own occupation" -less restrictive than other definitions
What is the typical deductible for basic surgical expense insurance?
$0
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2500
In all health care plans under the Affordable Care Act(ACA), how many essential benefit categories are there?
10
What is a penalty tax for non-qualified distributions from a health savings account?
20%
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
A Straight life policy has what type of premium?
A level annual premium for the life of the insured
Which of the following is NOT covered under a long-term care policy?
Acute care in a hospital
In which Medicare supplemental policies are the core benefits found?
All plans
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
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
Which of the following statement regarding Business Overhead Expense policies is NOT true?
Benefits are usually limited to six months
What type of policy allows the insurance company to cancel a policy at any time?
Cancellable
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
Which of the following best describes the MIB
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Variable Whole Life insurance is based on what type of premium
Level fixed
What type of life insurance offers an applicant a cash value element?
Permanent Insurance
Equity indexed annuities
Seek higher returns
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement options
Whose responsibility is it to determine if all of the questions on an application have been answered?
The agent
Under the ACA, health insurance can no longer be underwritten based on which of the following factors?
The applicant's health condition
The insuring clause of a disability policy usually states all of the following EXECPT
The method of premium payment.
According to the Coordination of Benefits provision, if both parents have coverage for a child from their employers' policies, which policy will pay first?
The order of payment will be determined by the birthday rule: the coverage of the parent whose birthday is earlier in the year will be considered primary
all of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account. (all variable products are separate accounts)
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
They cover the cost of extended nursing home care.
which of the following is true for both equity indexed annuities and fixed annuities?
They have a guaranteed minimum interest rate.
Which provision states that the insurance company must pay Medical Expense claims immediately?
Time of payment of Claims
Insurers usually do not reimburse claimants for 100% of income lost due to disability. What is the reason for insurer limitations on coverage amounts?
To provide an incentive for the insured to return to work
The minimum interest rate on a equity indexed annuity is often based on
an index like standard & poor's 500
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
illegal
which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment.
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return.
a corporation is the owner and beneficiary of the key person life policy. if the corporation collects the policy benefit, then
The benefit is received tax free
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?
The benefits will be coordinated
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 hospitalization period. Which of the following is true?
The group plan will not pay because the employee was injured at work.
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
The insured
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contact only at renewal for certain conditions
what does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time.
according to provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT
Cervical cancer exam for all women starting at age 40
Which entity has the authority to grant a temporary life insurance agent's license?
Commissioner of Insurance only
The proposed insured makes the premium payment on a new insurance policy. if the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
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?
Consideration
An applicant for an individual health policy failed to complete the application properly. before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the
Consideration Clause
If the insureds share in the cost of health insurance premium with the employer, this would be known as what type of group health plan?
Contributory
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Convertible Term Policy.
Which of the following is NOT an essential element of an insurance contract?
Counteroffer
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary. (31 days)
An insurance agent wants for a client to replace her current annuities plan with another one. he presents the new one in a incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. the policyowner ends up surrendering her original contract and replacing it with the new one. which term best describes what the agent did?
Twisting
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
Unilateral (anything legal or one party is unilateral)
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. what contract element does this describe?
Unilateral (legally not bound to do anything)
When does an adjustable life policy accumulate cash value?
When the premiums paid are more than the cost of the policy
What type of insurance would perform the function of cash accumulation?
Whole life insurance
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
equity indexed annuity
If a retirement plan or annuity is "qualified", this means
it is approved by the IRS
Which of the following is TRUE regarding the annuity period?
it may last for the lifetime of the annuitant
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 INTEREST earned on policy dividends is
taxable
Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amount of temporary insurance to cover other family members?
term rider
The sole beneficiary of a life insurance policy dies before the insured. if the policyowner fails to change the beneficiary before the insured's death the proceeds of the policy will go to
the insured's estate
which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
third-party ownership
The paid-up addition option uses the dividend
to purchase a smaller amount of the same type of insurance as the original policy
A medical Expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
usual, customary and reasonable
The main difference between immediate and deffered annuities is
when the income payment begin
When would a 20-pay whole life policy endow?
when the insured reaches age 100
What type of health insurance covers partners or corporate officers of a closely held business?
Disability Buy-sell
Under what employer-provided plan are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?
Disability Income
The commissioner has full power and authority to do all of the following EXCEPT
Draft insurance laws
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
Entire contract clause.
The usage of words or symbols that are similar to what entity is prohibited in life insurance advertisements?
Federal government
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first.
How long do short-term disability group plans pay benefits?
For a period of less than 2 years
which of the following statements is CORRECT concerning the relationship between Medicare and HMOs?
HMOs may pay for services not covered by medicare
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstance
A life insurance policy has a legal purpose if both of which of the following elements exist?
Insurable interest and consent
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Interest only option
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
Is not covered
which of the following is NOT true regarding a flexible spending account?
It does not have limits on contributions.
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One-year term option
What are the death benefit options in universal life policies?
Option A- level death benefit, Option B- increasing death benefit
a rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Other-insured rider
an insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions
Which of the following applies to partial disability benefits?
Payment is limited to a certain period of time.
With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance?
Payment of premium
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
Following hospitalization because of an accident bill was confined a skilled nursing facility. medicare will pay full benefits in this facility for how many days?
20
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount.
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
The federal fair credit reporting act
Regulates consumer reports
Which health insurance provision describes the insured's right to cancel coverage?
Renewal Provision
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
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
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
The Insurance Commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every
5 years
In order to establish or operate an HMO, a certificate of authority from the Commissioner is required. Which of the following does NOT need to be included in the certificate of authority?
A list of proposed subscribers
Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses?
Stop-loss limit
What type of annuity is suitable for someone who wants to select the benefit option that will pay the largest amount only for as long as the annuitant lives?
Straight life
What type of life insurance policy offers pure death protection?
Term
Which of the following would be required to obtain a Certificate of Authority?
The HMO