OK INS Exam
Which life insurance policy provision allows a policyowner to cancel the policy and receive a full refund within a limited time period after policy delivery?
Free-look period
What is the name of the rider that provides an additional purchase option in a life insurance policy?
Guaranteed insurability rider
Which of the following types of policies does the Oklahoma Life and Health Insurance Guaranty NOT provide financial protection for?
Health Maintenance Organizations (HMOs)
Which of these statements is NOT true regarding a cash value loan against a life insurance policy?
Interest payments made by policyowner are deductible
A foreign insurance company doing business in Oklahoma
Is a company domiciled under the laws of another state
Which of these would NOT be a valid reason to add the vaiver of premium rider to a life insurance policy?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured?
Joint life
The death proceeds of a credit life insurance policy are typically paid to the
Lender
Laura added a children's rider to her life insurance policy. What type of coverage was added?
Level term
After the extended term life nonforfeiture option is chosen, the available insurance will be
Level term for a stated period of time
Which of these is NOT a common life insurance nonforfeiture option?
Life income annuity
A life policy that has premiums that are lower than normal during the early years i called.
Modified life
During the disability elimination period
No benefits are payable
Medicare part A provides coverage for all the following expect, - Home Health - Hospice - Physician Services - Hospitalizations
Physicians services
Which of the following is a TRUE statement regarding universal life insurance?
Policy indicate how much of each premium is used toward company expenses.
Which action will trigger a penalty tax on premature distributions form a modified endowment contract (MEC)?
Policy loans
These are all accurate statements regarding universal life insurance EXCEPT
Policy loans are not permitted.
Straight whole life insurance can be accurately described in all of these statements EXCEPT
Policy protection normally expires at age 65
What happends to a life insurance policy when the policy loan balance exceeds the cash value?
Policy will no longer be in force.
What typically changes at the re-entry option date found in some term life policies?
Premium
How is the insured protected if a payor benefit rider is attached to the life insurance policy?
Premium payments are waived in the event the premium payor dies or becomes disabled.
Which statement regarding the life insurance premium for a children's rider is true?
Premium remains the same no matter how many children.
Which of these is NOT an Unfair Claims Settlement Practice?
Providing claim payments to insureds under the guidelines of the insurance contract.
The automatic premium loan provision can be accurately described as a
Provision that provides a policy loan to pay any premiums by the end of the grace period.
What effect can a long-term care benefit rider have on a life insurance policy?
Reduced death benefit
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued?
Under $50,000 but increases over time
An insurance policy that can also be classified as a securities product is called
Variable life
Which type of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?
Variable universal life
At what point are death proceeds paid in a joint life insurance policy?
When the first insured dies
Which life insurance policy would be eligible to include to include an automatic premium loan provision?
Whole life
the conversion privilege allows a person to change coverage from
a group policy to an individual policy
Time limit on certain defenses (Incontestable period)
a health or disability policy is incontestable after it has been in force for a period of 2 years. Only fraudulent misstatements in the application. may be used to void the policy or deny any claim at this point.
all of the following would fall under the category of an "adverse underwriting decision", EXCEPT: - Charging a higher rate based upon the information given in the insurance application - failure of the agent to submit the application to an insurance company - declination of insurance coverage - termination of insurance coverage
failure of the agent to submit the application to an insurance company
a producer's license has been suspended due to non-renewal. The license may be reinstated within the ___ month period following the date when the license should have been renewed.
12 month
The maximum preson sentence given under federal law for unfair and deceptive insurance practices is
15 years
A life insurance policy becomes incontestable after it has been in force for
2 years
A medical expense health plan claim may be denied due to material misrepresentation within_____ year(s) of issue.
2 years
A producer's license MUST be renewed every _____ year(s)
2 years
If a new policy is replacing an existing one, the insured is given the right to return for a full refund of at least ____ days after policy delivery.
20days
Under the Unfair Claim Settlement Practices, an insurer may recoup overpaid claims within ____ months after payment was made.
24 months
A producer MUST maintain insurance transaction records for a minimum of _____ years.
3 years
Which statment regarding the cash value of a whole life insurance policy is correct?
Available to the policyowner when policy has been surrendered.
Who normally pays the premiums for group credit life insurance?
Borrower
Each of the following terms is an important characteristic of major medical policy except
Capitation
Which statement regarding the waiver of premium rider is accurate?
Cash payment is not directly provided to the policyowner
Which statement regarding universal life insurance is correct?
Cash value accumulations have a guaranteed minimum interest rate.
What kind of life policy typically offers mortgage protection?
Decreasing term
Which of the following is generally a form of group credit life insurance?
Decreasing term insurance
Which of these life insurance policies does NOT contain a cash value provision?
Decreasing term life
Which of the following is NOT guaranteed in a whole life policy?
Dividend scale
Which of the following is NOT a duty of the Insurance Commissioner?
Enact insurance legislation
How often must the Commissioner examine each domestic insurance company?
Every 5 years
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
Extended term nonforfeiture option
Which statement concerning a decreasing term life policy is accurate?
Face amount decrease over the policy period
All of these are considered features of whole life insurance EXCEPT
Initial premium is lower than for an equivalent amount of term insurance.
Medicare Part A typically covers
Inpatient drugs
Which statement regarding whole life insurance is accurate?
Insurance coverage can continue for life
An example of endodontic treatment is a
Root canal
Which of these policies is considered a whole life policy?
Single premium life
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
The cash value
Which statement concerning adjustable life insurance is accurate?
The face amount and premiums can be changed simultaneously by the policyowner.
All of these statements concerning group credit life insurance are false EXCEPT
The face amount is based on the outstanding loan balance.
What would be considered an advantage of purchasing term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage.
Which of the following is true regarding a person receiving a waiver of premium benefit?
The insured must be disabled for a period of time
Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for
The policy is surrendered for less than what was paid into.
Which of these must be disclosed in a universal life policy?
The policy's surrender charges
An advantage of owning a flexible premium life insurance policy would be
The policyowner can make policy changes without difficulty.
How does a continuous premium whole life policy differ from a limited payment whole life policy?
The time period in which premiums will be paid.
How is a collateral assignment used in a life insurance contract?
Transfers specific ownership rights to a creditor.
Viatical settlements are accomplished through the use of
absolute assignment
a provision stating that the insured and the insurer will share covered losses in an agreed proportion is called
co- insurance
what provision prevents a family from receiving benefits from two separate groups policies with the same medical expense
coordination of benefits
type of deductible that charges the insured after basic medical benefits have been paid and before other medical coverage begins
corridor deductible
Which non-forfeiture option uses cash surrender values to purchase paid-up term insurance for the full face amount of the policy?
extended term insurance
Replacement Policy Free Look Period
if a new policy is replacing an existing one, the insurance is given the right to return for a full refund of at least 20 days after policy delivery
a significant benefit to the insured in group underwriting verses individual is
the cost of coverage is lower
what is the written instrument called in which the insurance contract is set forth
the policy
while the insurer is paying the premium for a life insurance policy under the waiver of premium rider
the policy remain in full force in every respect
Grade period
the time, usually 30 days, during which a policy remains in force after the premium is due but not paid. The policy lapses as of the day the premium was originally die unless the premium is paid before the end of the 30 days or the insured dies during the grace period
The purposed of laws regarding the replacement of life and annuity contracts includes all of the following, EXCEPT: - to protect the interests of life and their agents - to establish penalties for failure to comply with replacement requirements - to assure the purchaser receives information to make an informed decision - the reduce the opportunity for misrepresentation and incomplete disclosures
to protect the interests of life and their agents
Nonforfeiture Law
upon surrender of an ordinary life policy, which has been in force AT LEAST 3 full years, and within 60 days after the date the premium payment us due and unpaid, the insurer will pay a cash surrender value.
Which of these is NOT an advantage of term life insurance?
A cash benefit will be provided if the insured is alive at the end of the policy period.
Which statement regarding a single premium life insurance policy is Not correct?
Additional premiums may be required under certain conditions
A(n)________ insurance company is one that was formed under the laws of another country outside of the U.S.
Alien
The absolute assignment of a life insurance policy results in
All incidents of ownership transferred to the assignee
Which is an accurate description of the premium in a graded premium life insurance policy?
Annual increases in premium for a stated number of years then remains level
How may an insurance company classify an accidental death benefit o a life policy?
As an optional policy rider
How long must a life insurance policy be in effect before the policyowner may use the nonforfeiture provision?
3 years
An insured previously covered under a private health insurance plan must notify the insurer within_____ days of deactivation from the military in order to reinstate the coverage.
30 days
Jerry is a resident producer who has moved to another city in Oklahoma. How long does he have to notify the insurance Commissioner of the change of address?
30 days
In the event of employment termination, a person covered by a group life policy also has the right to convert such coverage to an individual policy within ______ days without proving insurability.
31 days
how long must a life agent maintain records regarding policies sold in this state?
5 years
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy?
6 months
Group Life Insurance
in the event of employment termination, a person covered by a group policy also has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. IF this right is exercised, the employee is responsive for the payment of premium
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
less than the policy's face amount
Right to examine (free look)
life insurance policies must provide a minimum free-look period of 10 days upon policy delivery
a group health plan third party administrator might do any of the except - receive employees payments - pay policy owner premiums - track insured eligibility - handle member complaints
pay policy owner premiums
which of the following coverage is NOT one of the three traditional benefits of a group basic medical expense plan?
private nursing expense
what kind of insurance pays medical benefits only in the event the insured suffers from one stipulated disease?
specified disease
