Missed Questions guarantee exam

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a)10 days b)3 days c)5 days d)7 days

5 days

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized? a)55 b)59 1/2 c)62 d)65

65

When an employee covered under a health reimbursement account changes employers, the HRA a)Returns to the insurer. b)Is split between the employee and employer. c)Stays with the employer. d)Follows the employee.

Stays with the employer

An employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continued to receive coverage under the plan. Why is this?

The employee is totally disabled

What happens to the face amount of a whole life policy if the insured reaches the age of 100

The face amount is paid to the insured

An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when

The insurance company accepts the risk

All of the following are general requirements of a qualified plan EXCEPT a)The plan must be permanent, written and legally binding. b)The plan must provide an offset for social security benefits. c)The plan must be communicated to all employees. d)The plan must be for the exclusive benefits of the employees and their beneficiaries.

The plan must provide an offset for social security benefits.

All of the following are true of the survivorship life policy except

The premium is based on the age of each insured

All of the following are true regarding the waiver of cost of insurance rider EXCEPT

The rider expires when the insured reaches age 60

When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and deductibles? a)Coinsurance carries over, but deductibles are generally higher. b)Deductibles carry over, but coinsurance is generally higher. c)They carry over from the old plan to the new plan. d)They have to be reevaluated.

They carry over from the old plan to the new one

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Twisting

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation? a)They are not deductible. b)They are taxed as income. c)They are tax deductible. d)They are considered after-tax contributions.

c)They are tax deductible.

How many eligible employees must be included in a contributory plan? a)90% b)100% c)50% d)75%

d)75%

The benefits for individual disability plans are based on a)The employer's net worth. b)The number of employees of the company. c)A percentage of the worker's income. d)A flat amount.

d)A flat amount.

Employer contributions made to a qualified plan a)May discriminate in favor of highly paid employees. b)Are after-tax contributions. c)Are taxed annually as salary. d)Are subject to vesting requirements.

d)Are subject to vesting requirements.

What document describes an insured's medical history, including diagnoses and treatments?a)Physician's Review b)Individual Medical Summary c)Comprehensive Medical History d)Attending Physician's Statement

d)Attending Physician's Statement

What is reinsurance? a)An agreement between a ceding insurer an assuming insurer b)An agreement between an originating insurer and a ceding insurer c)An agreement between a domestic insurer and a foreign insurer d)An agreement between an insurer and an insured

a)An agreement between a ceding insurer an assuming insurer

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a a)Nonforfeiture option. b)Rollover. c)Settlement option. d)Nontaxable exchange.

c)Settlement option.

Group life insurance policies issued in Nebraska must contain all of the following provisions EXCEPT a)Incontestability period of 2 years. b)A copy of the application is considered part of the policy. c)Statements of the applicant are considered warranties. d)A grace period of 31 days

c)Statements of the applicant are considered warranties.

All of the following information needs to be included on an application for life insurance BUT

Health insurance policies in force

A producer's license is revoked for a violation of the Insurance Producers Licensing Act. The producer may also be required to pay a fine of up to a)$1,000. b)$5,000. c)$10,000. d)$15,000.

$1,000

What is the shortest possible elimination period for group short-term disability benefits provided by an employer? a)0 days b)30 days c)60 days d)90 days

0 days

If a producer allows his license to lapse, within what maximum time period may the same license be reinstated?

1 Year

In some cases, in order for an insurer to legally disclose privileged information to appropriate sources, the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of information?

1 year

f a producer allows his license to lapse, what is the maximum time period during which the license may be reinstated? a)30 days b)6 months c)12 months d)2 years

12 months

The Director conducts an examination of domestic insurers every a)5 years. b)Year. c)2 years. d)4 years.

5 years

Conrad receives 50k of his 100k accidental death and dismembership policy as a result of the loss of his left arm in accident. He has received the

Capital amount

AN individual has a $200,000 convertible term life insurance policy. If he chooses, he can

Convert to a whole life policy for the same face amount without proof of insurability

HMO Members pay a small fee when they see their PCP, this fee is called a

Copay

Regarding health insurance, all of the following are tax-deductible EXCEPT

Employee paid group disability income

What does "level" refer to in level term insurance?a)Interest rate b)Face amount c)Premium d)Cash value

Face amount

A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of policy do they have?

Family

Which of the following is NOT correct concerning taxation of disability income benefits

If paid by the individual, the premiums are tax deductible

To purchase insurance, the policyowner must face the possibliity of losing money or something in the event of loss. What is this concept called?

Insurable interest

Who makes up the MIB

Insurance companies

Which of the following best describes annually renewable term insurance? a)It is level term insurance. b)It requires proof of insurability at each renewal. c)Neither the premium nor the death benefit is affected by the insured's age. d)It provides an annually increasing death benefit.

It is level term insurance

Which of the following is true regarding pure life annuity settlement option

It provides the highest monthly benefit

Which of the following best describes pure life annuity

It provides the highest monthly benefits

Who would be the insured in business disability insurance

Key employees

Medicare Part B covers all of the following but

Long-term care services

cash value guarantees in a whole life policy are called

Nonforfeiture values

The family term rider incorporates

Spouse term and children's term

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?

Submit the description in their own words on a plain sheet of paper

Insurance producers must ensure that contracts they recommend are in the best interest of the insured. This is called a)Underwriting. b)Suitability. c)Client protection. d)Approval.

Suitability

In a deferred annuity, the difference between the accumulation value and the surrender value is the

Surrender charge

An employee may enroll in an employer's group health plan when he/she initially becomes eligible without proof of insurability. Should/he she enroll another time, evidence of insurability is required EXCEPT at

The annual open enrollment period

Who determines if a particular group of employees can be excluded from group health coverage?

The employer

An agent's utilization review certificate is valid for how many years? a)5 b)1 c)2 d)3

c)2

An insured is admitted to the hospital for surgery on a herniated disk. The insurance company monitors the treatment and progress in order to make sure that everything proceeds according to the insurer's schedule. This is called a)Comprehensive review. b)Schedule of benefits. c)Concurrent review. d)Prospective review.

c)Concurrent review.

Medicaid provides all of the following benefits EXCEPT a)Eyeglasses. b)Family planning services. c)Income assistance for work-related injury. d)Home health care services.

c)Income assistance for work-related injury.

The death protection component of Universal Life Insurance is always a)Whole Life b)Adjustable Life c)Decreasing Term d)Annually Renewable Term

Annually renewable term

A certificate of authority in nebraska, which mucst be renewed annually, expires on the last day of

April

In whole insurance, when is the policy cash value scheduled to equal the face amount

At the insured's age 100

Only the agent is involved in completing the agent's report. The agent's statement is

Not included in the entire contract

If an applicant for a life insurance license is likely to earn an aggregate amount in commisions that would exceed 30% of the aggregate amount represented by all other insurance business that would be procured through the applicant, which of the following would most likely happen?

The license would not be granted

WHich of the following is not true regarding term health coverage

The owner may renew the policy for a specified term

All of the following statements concerning Accidental Death and Dismemberment coverage are correct EXCEPT a)Death benefits are paid only if death occurs within 24 hours of an accident .b)Accidental death benefits are paid only if death results from accidental bodily injury as defined in the policy.c)Dismemberment benefits are paid for certain disabilities that are presumed to be total and permanent.d)Accidental death and dismemberment insurance is considered to be limited coverage.

a)Death benefits are paid only if death occurs within 24 hours of an accident

What is it called when a doctor accepts the medicare approved amount

assignment

Which of the following best describes the aleatory nature of an insurance contract?a)Ambiguities are interpreted in favor of the insured b)Policies are submitted to the insurer on a take-it-or-leave-it basis c)Exchange of unequal values d)Only one of the parties being legally bound by the contract

c)Exchange of unequal values

Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage? a)Medical-surgical expense plan b)Basic medical expense plan c)Health Maintenance Organization plan d)Group dental insurance plan

c)Health Maintenance Organization plan

Which of the following would be considered an unfair claims settlement practice?a)Requesting the insured swear under oath concerning the facts of the claim b)The settlement of the claim is delayed for 30 days in order for the insured to conduct an investigation c)A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered d)Requesting the insured to submit a signed, proof of loss statement, after the insured has already verbally advised the insurer of the claim

d)Requesting the insured to submit a signed, proof of loss statement, after the insured has already verbally advised the insurer of the claim

The following are features of the Indexed Universal Life EXCEPT a)Flexible premium. b)Adjustable death benefit. c)Policy's cash value is dependent on the performance of the equity index. d)Sale of this product requires a securities license.

d)Sale of this product requires a securities license.

Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician

Skilled care

All of the following are correct about the required provisions of a health insurance policy EXCEPT a)The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract. b)A reinstated policy provides immediate coverage for an illness. c)Proof-of-loss forms must be sent to the insured within 15 days of notice of claim. d)A grace period of 31 days is found in an annual pay policy.

A reinstated policy provides immediate coverage for an illness.

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done.

Misrepresentation

Key person insurance can provide protection for all of the following economic losses to a business EXCEPT:

Pay the death benefit to the estate of the insured

In group insurance, the primary purpose of the coordination of benefits provision is to

Prevent overinsurance

If a life insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of the procedure

Prior to performance of the test

Utilization management consists of an evaluation of the appropriateness, necessity and quality of health care, and may include

Prospective and concurrent review

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called a)Guaranteed insurability. b)Waiver of cost of insurance. c)Accelerated benefits. d)Cost of living.

a)Guaranteed insurability.

Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? a)It does not guarantee that the entire principal amount will be paid out.\ b)It is a life contingency option. c)The beneficiary receives the remainder of the principal amount upon the annuitant's death. d)Payments can be made in installments and as a single cash refund.

a)It does not guarantee that the entire principal amount will be paid out.

A 55-year-old employee has worked part-time for his new employer for 3 months now, but has not been offered health insurance. What factor has limited the employee's eligibility? a)Number of hours worked per week b)The total amount of time worked for the company c)Age d)Income

a)Number of hours worked per week

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date? a)The date of medical exam b)The date of policy delivery c)The date of issue d)The date of application

a)The date of medical exam

Which of the following is TRUE about nonforfeiture values? a)They are required by state law to be included in the policy. b)They are optional provisions. c)A table showing nonforfeiture values for the next 10 years must be included in the policy. d)Policyowners do not have the authority to decide how to exercise nonforfeiture values.

a)They are required by state law to be included in the policy.

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as a)Medical expense. b)Critical illness. c)Major medical. d)AD&D.

b) Critical Illness

The minimum number of credits required for partially insured status for Social Security disability benefits is a)4 credits. b)6 credits. c)10 credits. d)40 credits.

b)6 credits.

When an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply? a)Claims discrimination b)Case management provision c)Cost reduction d)Claims reduction

b)Case management provision

Which of the following is NOT true regarding a flexible spending account? a)It is a cafeteria plan. b)It does not have limits on contributions. c)It operates on "use-or-lose" basis. d)It provides an opportunity to receive benefits on a pretax basis.

b)It does not have limits on contributions.

Which of the following statements is NOT correct regarding Medicare? a)Medicare Part B provides physician services. b)Medicare Advantage must be provided through HMOs. c)Medicare Advantage may include prescription drug coverage at no cost d)Medicare Part A provides hospital care.

b)Medicare Advantage must be provided through HMOs.

Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a a)Warranty. b)Premium receipt. c)Statement of good health. d)Backdated receipt.

b)Premium receipt.

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?a)Premiums are taxable to the employee. b)Premiums are not tax deductible as a business expense. c)Premiums are tax deductible by the key employee. d)Premiums are tax deductible as a business expense.

b)Premiums are not tax deductible as a business expense.

The Federal Fair Credit Reporting Act a)Prevents money laundering. b)Regulates consumer reports. c)Protects customer privacy. d)Regulates telemarketing.

b)Regulates consumer reports.

An insured had $500 left in his Health Reimbursement Account when he quit his job. What happens to that money? a)The insured can use up the $500 as long as he has qualified medical expenses. b)The insured can have access to the $500 at his previous employer's discretion. c)The previous employer must issue a check for $500 payable to the insured. d)It may be rolled over into a HRA with his new employer.

b)The insured can have access to the $500 at his previous employer's discretion.

Which of the following is NOT a goal of risk retention? a)To fund losses that cannot be insured b)To minimize the insured's level of liability in the event of loss c)To reduce expenses and improve cash flow d)To increase control of claim reserving and claims settlements

b)To minimize the insured's level of liability in the event of loss

The Waiver of Cost of Insurance rider is found in what type of insurance? a)Juvenile Life b)Universal Life c)Whole Life d)Joint and Survivor

b)Universal Life

Which of the following is TRUE of a qualified plan? a)It may discriminate in favor of highly paid employees. b)It may allow unlimited contributions. c)It has a tax benefit for both employer and employee. d)It does not need to have a vesting schedule.

c)It has a tax benefit for both employer and employee.

In which of the following situations is it legal to limit coverage based on marital status? a)Legal separation during the application process b)Divorce within the last six months of applying for insurance c)It is never legal to limit coverage based on marital status. d)Excessive number of divorces, as defined by the Insurance Code

c)It is never legal to limit coverage based on marital status.

Which act bars agents, brokers, and companies from disclosing health, financial, or other information gathered in the underwriting process about the consumer to any 3rd party without the consent of the consumer? a)Classified Information Protection Act b)Consumer Protection of Information Act c)Privacy of Insurance Consumer Information Act d)Illegal Disclosure Act

c)Privacy of Insurance Consumer Information Act

Which of the following statements concerning buy-sell agreements is true? a)Premiums paid are deductible as a business expense. b)Benefits received are considered income taxable. c)Buy-sell agreements pay in the event of a medical emergency. d)Buy-sell agreements are normally funded with a life insurance policy.

d)Buy-sell agreements are normally funded with a life insurance policy.

Which of the following authorities is responsible for assessing the financial stability of an insurer? a)Federal Association of Insurers b)Solvency Board c)Department of Insurance d)Director

d)Director

Which of the following best describes an insurance company that has been formed under the laws of this state? a)Sovereign b)Alien c)Foreign d)Domestic

d)Domestic

Which type of dental treatment involves the dental pulp within the teeth? a)Oral surgery b)Soft dental c)Root canal d)Endodontics

d)Endodontics

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?a)Reciprocal b)Nonprofit service organization c)Stock d)Mutual

d)Mutual

Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life? a)Coverage is based on the predicted needs of that family. b)The death of an insured must be premature. c)It must be assumed that the death of the insured will occur immediately. d)Need is predicted using the number of years until the insured's retirement.

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

When the insured has the right to continue the policy by making timely premium payments, and the insurer has no right to change any provision or the rate of the premium, the policy is a)Guaranteed renewable. b)Permanent. c)Nonmodifiable. d)Noncancellable.

d)Noncancellable.

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? a)One-year term b)Reduction of premium c)Accumulation at interest d)Paid-up option

d)Paid-up option

Surplus lines insurance may only be purchased from which of the following? a)Authorized insurers b)Limited lines insurers c)Admitted insurers d)Unauthorized insurers

d)Unauthorized insurers

In forming an insurance contract, when does acceptance usually occur? a)When an insurer delivers the policy b)When an insurer receives an application c)When an insured submits an application d)When an insurer's underwriter approves coverage

d)When an insurer's underwriter approves coverage