NWM Guaranteed Exam Health and Life
an annuity has accumulated cash value of $70,000, of which $30,000 is from premium payments. the annuitant dies during the accumulation phase. the beneficiary will receive
$70,000
an insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
3 days
a person receives his medicare supplement policy and is not satisfied with the provisions. He can return the policy for a full premium refund if he does so within how many days?
30
all rate fillings are subject to a waiting period before they become effective. what is teh length of this waiting period?
30 days
a disability income policy has a waiting period of 7 daus. if the insured is disabled for 15 days, how many days of benefits will the policy pay?
8 days
an adjustable life policy can assume the form of
Either term insurance or permanent insurance
what is the purpose of a benefit schedule?
To state what and how much is covered in the plan
which of the following terms is used to define the period of the time during which an annuitant makes payments into an annuity?
accumulation period
regarding major medical plans
higher stop-loss means lower premium
which of the following statements describes one of the reasons individuals purchase life insurance?
it creates an immediate estate
in which of the folloinwg lines of insurance would a producer be allowed to bind coverage? property & casualty health life all of the above
property & casualty
the purpose of the fair credit reporting act is to
protect consumers against the circulation of inaccurate or obsolete personal or financial information
all of the following are true about key-person insurance except the business is the beneficiary the death benefit is taxable to the business the business is the applicant and owner the employee must give written consent by signing the application
the death benefit is taxable to the business
Refusing to pay claims without conducting a reasonable investigation is an example of what?
an unfair claims practice
in whole life insurance, when is the policy cash value scheduled to equal the face amount?
at the insured's age 100
when life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as
estate conservation
becasue of the imposed blackout period, the surviving spouse will not receive SS benefits until
he or she qualifies for retirement benefits
which of the following is true regarding a joint life annuity?
the payments stop at the first death
when the office of the commissioner becomes vacant because the commissioner is unable to perform his/her duties, who then fills the position during the commissioner's absence?
governor
Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?
occupation
what is the differencec between a straight life policy and a 20-pay whole life policy?
premium payment period
The family term rider incorporates
spouse term and children's term
which of the following are characteristics of term life insurance?
temporary protection, renewability, no cash value
which of the following types of insuracne products would be appropriate for an individual with a low income and high insurance needs?
term insurance
whose responsibility is it to ensure that the application for health insurance is complete and accurate?
the agent's
a loss resulting from which of the following would qualify for the accidental death rider coverage?
an automobile accident
a specified disease policy would cover which of the following
cancer
credit disability insurance will pay
monthly payments until the insured recovers or the loan is paid off
Under the Affordable Care Act (ACA) when would pregnancy be considered a pre-exisint condition
never
in a group insurance, the primary purpose of the coordination of benefits provision is to
prevent overinsurance
which of the following is not a characteristic of a managed care plan?
risk retention
if an insurer's rate has been filed, but not disapproved, the new rate may be applied within
10 year
an ira owner who is 57 years old wants to make a withdrawal from her traditional IRA. what penalty will be emposed?
10%
Under the mandatory uniform provision proof of loss, the claimant must submit proof of loss within what time period after the loss?
90 days
how long is the period of time in which a licensee must renew his of her license?
90 days prior to expiration
what is the purpose of the gatekeeper in an HMO?
controlling costs
premiums colleceted on behalf of the insurance company by an agent will be held in what capacity?
fiduciary
if an insured is injured while committing an illegal act and his health policy contains the illegal occupation provision, what percentage of teh claim will be paid?
nothing
Medicare Part A services do not include which of the following?
private duty nursing
Because of an injury, an insured has been unable to work for 7 months. He wasn't able to pay his life insurance policy premium, yet the policy remained in force. The policy includes
waiver of premium
your client is sole proprietor and wishes to include his family on a medical expense plan. how much of the cost of teh medical expense plan can be deducted (since he is considered self-employed)?
100%
according to the time limit on certain defenses provision, statements or misstatements made in the application at the time of issue cannot be used to deny a claim after the policy has been in force for a minimum of how many years
2 year
a retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2,500. his actual monthy expense is 3000. if the owner becomes disabled, the monthly beenfit payable under this polcuy will be
2,500
in a variable life insurance policy, all of the following asssets are held in the insurance company's general account except incidental benefit amount cash surrender values mortality reserves face amount reserves
cash surrender values
in an employer group health insurance plan, the covered employee recieves
certificate of insurance
a new homebuyer wants to purchase a life insurance policy that wuld protect his family against losing the home, should he die before the mortgage was paid. the most inexpensive type of policy that would accomplish this neeed would be
decreasing term
the owner of a whole life policy with an accidental death ride intentionally kills himself after having the policy for 18 months. what is teh insruacne company's course of action?
deny any payment of death benefit
all of the following are features of a health insurance plan purchased on the health insurance marketplace except
dollar limits on essential benefits
benefits for a disability income policy are based on which of the following?
earnings of the insured
in insurance, the agents have authorization to represent the company and may exercise this relationship through
express authority, implied authority, and apparent authority
An insured falls down a flight of stairs and sustains a neck injury that renders him severely disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver of Const of Insurance rider, and if so, what insurance costs would be waived?
no; it is not possible for this waiver to be included in a whole life policy
which of the following best defines the unfair trade practice of rebating?
offering an inducement of something of value not specified in the policy
An insurer can decide not to renew an optionally renewable policy
on premium due dates
which of the following best describes a presumptive disability?
one that is severe enough that the insured automatically qualifies for full disability
with respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?
only an executive officer of the company
the guaranteed insurability rider allows the owner to purcahse additional amounts of life insurance without proof of insurability at all of the following except marriage purchase of a new home apporoximately every 3 years between the ages of 25 and 40 birth of a child
purchase of a new home
who is responsible for covering the expenses associated with the examination of domestic insurers?
the examined insurer
life insurance creates an immediate estate. which of the following best explains this statement?
the face valye of the policy is payable to the beneficiary upon the death of the insured
which of the following is not a medicaid qualifier?
insurability
under which of teh following condtions would life insurance proceeds be taxable by the federal govenrment?
if there is a transfer for value
when an insured reinstated his major medical policy, he was involved in an accident that required hospitalization. when would this accident be covered upon reinstatement of the policy?
immediately
if the owner of an IRA dies without having named a beneficiary, by what point must the interest be distributed?
december 31 of the calender year that contains the fifth anniversary of the owner's death
which of the following is not true regarding an optionally renewable policy?
insurer can only cancel the policy for reasons stipulated in the cocntract
if a business wants to make sure it will be able to cover losses due to the diability of its top employee, the business should get which type of insurance?
key person disability income
the omnibus budget reconciliation Act of 1990 requires
large group health plans must provide primary coverage for disabled individuals under age 65 who are not retired
guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentation
which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?
the application contains material misstatments
which entity has the option of including optional provisions in a health insurance policy?
the insurer
if an insured decides to reduce the cinsurance amount on her major medical insurance, what can the insured expect?
a higher monthly premium
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
all of the following are characteristics of group health insurance plans except the benefits under a group plan are more extensive than those under individual plans the parties that hold a group health insurance contract are the employees ad the employer the cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan employers may require the employees to contribute to the premium payments
the parties that hold a group health insurance contract are the employees and the employer
If both the primary and contingent beneficiaries of a life insurance policy have died before the insured's death, who will receive the death benefit? a) The tertiary beneficiary b) The insured's heir c) The primary beneficiary d) The government
the tertiary beneficiary
which of the following policies can described as a flexible premium adjustable life policy?
universal life
insurers cannot transact insurance inthis sate without a
certificate of authority
which of the following is the true regarding pure life annuity settlement option?
it provides the highers monthly benefit
when comparing a joint life policy to two individual life policies of the same amount on the same insureds, which condition is true?
joint life has a lower premium than the total of the two individual policies
insurer xyz terminated the appointment of an insurance producer on july 1st. by what date must the insurer notify the commissioner of the termination
july 31st
an insured and his spouse recently had a child. which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?
children's term rider
when filling out an application, the applicant makes a mistake. if a fresh application were not available, what could the applicant do to properly correct the mistake?
corss the incorrect answers out, write the correct one beside it, and initial the answer
if an insured dies, and it is discovered that the insured misstated his/her age of gender, the life insurance company will
adjust the death benefit to what the premium would have purchased at the actual age or gender
which provision may not be added to a permament life policy, at no cost, that insurers that the policy will not lapse so long as there is cash value?
automatic premium loan option
according to the fair credit reporting act, all of the following statements are true except if an applicant is declined for aninurance policy, he or she has no right to know what was in the report it protects consumers against the ciruclation of inaccurate information it ensures that consumer reporting agencies are fair in their treatment of consumers investigative consumer reports can be used to obtain information on the applicant's character and reputation
if an applicant is declined for an insurance policy, he or she has no right to know what was in the report
an elimination (waiting) period may not have to be satisfied for a disability in which of the following?
an insured suffers a relapse of a prior disability within 6-months of the intial covered disability
all of the following are ways to handle risk except transfer elimination avoidance reduction
elimination
regarding health insurance, all of the following are tax-deductible except employee paid group disability employer paid group health insurance employer paid group LTC employer paid group accidental death and dismemberment
employee paid group disability income
all of the following health insurance disability benefits are income tax free except employee-paid group disability key-person disability benefits personally-owned individual diability insurance employer-paid group disability
employer-paid group disability
which of the following statments is true regarding advertisment of the fact that the insurance guaranty association would assure payment of benefits in the event of insurer insolvency?
it is illegal to metion the association in advertisments
an insurer appoints a producer as its agent on january 2nd. By what date must the insurer file a notice of appointment?
january 17
all of the following are true regarding the federal Fair Credit Reporting Act except reports may be sent to anyone who requests one insurers are not required to give customers a copy of the report it applies to credit reports order in connection with insurance, banking and employment the customer must be notified if adverse action is taken as a result of a report
reports may be sent to anyone who requests one
all of the following are true of multiple employer trust except the trust are formed by insurers, agents, broker, or third party administrators, who are called sponsors the sponsor develops the plan, sets the underwriting rules, and administers it the employee has a right of conversion upon leaving the group coverage METs allow small employers an opportunity to band together and purchase insurance a lower group rate.
the employee has a right of conversion upon leaving the group coverage
a core medicare supplent policy (plan A) will cover all of the following expenses except the first 3 pints of blood 20% of part B coinsurance amounts for medicare-approved services part A coinsurance part A deductible
part A deductible
which of the following actions does not constitue false advertising
requiring applicant more quickly than is reasonable
which of the following would be an example of insurer participating in the unfair trade practice of discrimination?
charging the insured higher premiums based on her race
An insured needs ongoing treatment for a diabetic condition. Under the PPACA, which of the following is correct? a) The condition is covered if the insured's plan specifies the condition b) Treatment is subject to pre-existing conditions exclusion c) Treatment is subject to an annual dollar maximum d) The condition must be covered under the insured's plan
the condition must be covered under the insured's plan
Medicare is a health insurance program for all of the following indivudals except those who have been on SSD for 2 years those with low inceom and low assets those over 65 those with permament kidney failure
those with low income and low assets
which of the following indicates the person upon whose life the annuity income amount is determined?
annuitant
an applicant misstates his age on his application for a health insurance policy. he states that he is 39, but his actual age is 49. when he files a claim, what will most likely happen?
benefits paid will be those that would have been purchased at the correct age
partners in a business want to make sure that if one of them were pass away, their surviving family will receive fa fair value for their portion in the business. what life insurance arrangement would be most suited for transitioning the business?
buy-sell agreement
what is another term for a health insurance policy subscriber?
participant
in a deferred annuity, the difference between the accumulation value and the surrender value is the
surrender charge