Oklahoma Health and Life Insurance Qs Pt. 2

COBRA applies to employers with at least a) 20 employees b) 80 employees c) 60 employees d) 50 employees

a) 20 employees

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) A statement that is sufficiently clear to identify the insured and the nature of the claim b) A statement from the insured's employer showing that the insured was unable to work c) An estimate of the total amount of medical and hospital expense for the loss d) A complete physician's statement

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

Which is the primary source of information for insured underwriting? a) Application b) Applicant reviews c) Medical records d) Private investigations

a) Application

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? a) Conditional b) Adhesion c) Personal d) Unilateral

a) Conditional

Which of the following is NOT a duty of the Commissioner? a) Develop insurance rates b) License insurance companies, agents and brokers c) Enforce violations of the Insurance Code d) Regulate insurance rates

a) Develop insurance rates

As it pertains to group health insurance, COBRA stipulates that a) Group coverage must be extended for terminated employees up to a certain period of time at the former employees expense b) Retiring employees must be allowed to convert their group coverage to individual policies c) Terminated employees must be allowed to convert their group coverage to individual policies d) Group coverage must be extended for terminated employees up to a certain period of time at the employers expense

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

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the a) Incontestability clause b) Reinstatement clause c) Insuring clause d) Misstatement of age clause

a) Incontestability clause

Which of the following licensees is NOT compensated directly related to the amount of insurance sold? a) Insurance consultant b) Insurance agent c) Insurance producer d) Insurance broker

a) Insurance consultant

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that? a) Joint Life Policy b) Survivorship Life Policy c) Second-to-die d) Family Income Policy

a) Joint Life Policy

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to a) Purchase a single premium policy for a reduced face amount b) Purchase a term rider to attach to the policy c) Pay back all premiums owed plus interest d) Receive payments for a fixed amount

a) Purchase a single premium policy for a reduced face amount

Which of the following is NOT a feature of a guaranteed renewable provision? a) The insurer can increase the policy premium on an individual basis b) The insured has a unilateral right to renew the policy for the life of the contract c) Coverage is not renewable beyond the insured's age 65 d) The insured's benefits cannot be reduced

a) The insurer can increase the policy premium on an individual basis

All of the following are differences between individual and group health insurance EXCEPT a) individual insurance does not require medical examinations, while group insurance does require medical examinations b) in individual policies, the individual selects coverage options, while in a group plan all employees are covered for the same coverage which is chosen by the employer c) individual coverage can be written on an occupational or non occupational basis; group plans cover only non occupational d) individual policies are renewable at the option of the insured, while group usually terminates when the individual leaves the group

a) individual insurance does not require medical examinations, while group insurance does require medical examinations

What is the purpose of coinsurance provisions? a) to help the insurance company to prevent overutilization of the policy b) to have the insured pay premiums to more than one company c) to guarantee payment to the doctors and hospitals d) to share liability among different insurance companies

a) to help the insurance company to prevent overutilization of the policy

When an individual life insurance policy is being replaced by an insurer using an agent, the policy owner must be given an unconditional right to a full refund of premiums if the policy is returned within a) 10 days b) 20 days c) 30 days d) 45 days

b) 20 days

Which of the following individuals will be eligible for coverage on the Health Insurance Marketplace? a) A U.S. citizen living abroad b) A permanent resident lawfully present in the U.S. c) Someone who has Medicare coverage d) A U.S. citizen who is incarcerated

b) A permanent resident lawfully present in the U.S.

All of the following are mandated provisions in Medicare supplement policies EXCEPT a) No waivers to exclude or limit coverage for specifically named or described pre-existing diseases or physical conditions b) Allowing benefits that duplicate the benefits provided by Medicare c) No benefit. More restrictive than as defined in the Medicare program d) No limitations or exclusions on coverage that are more restrictive than those of Medicare

b) Allowing benefits that duplicate the benefits provided by Medicare

The LEAST expensive first-year premium is found in which of the following policies? a) Level Term b) Annually Renewable Term c) Increasing Term d) Decreasing Term

b) Annually Renewable Term

And ensure receives a report regarding a potential insured that includes the insured financial status, hobbies and habits. What type of report is that? a) Underwriters Report b) Inspection Report c) Medical Information Bureau's Report d) Agent's Report

b) Inspection Report

Which of the following statements about the reinstatement provision is true? a) It guarantees the reinstatement of a policy that has been surrendered for cash b) It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated c) It permits reinstatement within 10 years after a policy has lapsed d) It provides for reinstatement of a policy regardless of the insured's health

b) It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated

Untrue statements on the application unintentionally made by insured that, if discovered, would alter the underwriting decision of the insurance company, are called a) Common errors b) Material misrepresentations c) Fraudulent statements d) Warranties

b) Material misrepresentations

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? a) Disclosure rule b) Replacement rule c) Reinstatement rule d) Conversions rule

b) Replacement rule

Which type of life insurance policy generates immediate cash value? a) Continuous Premium b) Single Premium c) Level Term d) Decreasing Term

b) Single Premium

Who chooses a primary care physician in an HMO? a) A referral physician b) The individual member c) HMO subscribers do not have a primary care physician d) The insurer

b) The individual member

And insured purchased a non cancelable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy? a) Within two years of the application, the insurer discovers a misrepresentation b) The insured is in an accident and incurs a large claim c) The insured does not pay the premium d) The insured reaches the maximum age limit specified for the policy

b) The insured is in an accident and incurs a large claim

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? a) The insured will have to pay premiums for six months. If at the end of this period the father is still disabled, the insured will be refunded the premiums b) The insured's premiums will be waived until she is 21 c) The premiums will become tax deductible until the insured's 18th birthday d) Since it is the policy owner, and not the insured, who has become disabled, the life insurance policy will not be affected

b) The insured's premiums will be waived until she is 21

All of the following are categories of a limited insurance license EXCEPT a) Crop insurance b) Variable life insurance c) Credit life insurance d) Travel insurance

b) Variable life insurance

If a producer allows his or her license to lapse, what is the maximum time period during which the producer can reinstate the license without having to retake the examination? a) 90 days b) 6 months c) 12 months d) 16 months

c) 12 months

A health benefit plan delivered in Oklahoma that provides benefits for the dependents of an insured individual must provide immunizations coverage from birth until the child turns a) 15 years b) 12 years c) 18 years d) 16 years

c) 18 years

A straight life policy has what type of premium? a) A decreasing annual premium for the life of the insured b) A variable annual premium for the life of the insured c) A level annual premium for the life of the insured d) An increasing annual premium for the life of the insured

c) A level annual premium for the life of the insured

The term "fixed" in a fixed annuity refers to all of the following EXCEPT a) Equal annuity payments b) Amount and length of payments c) Death benefit d) Guaranteed rate of interest

c) Death benefit

Items stipulated in the contract that the issuer will not provide coverage for our found in the a) Benefit payment clause b) Consideration clause c) Exclusions d) Insuring clause

c) Exclusions

The policy owner 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 principle will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose? a) Joint and survivor b) Fixed amount option c) Interest only option d) Life income and period certain

c) Interest only option

What is the purpose of a conditional receipt? a) It serves as proof that the applicant has been determined insurable b) It is given only to applicants who fully prepay the premium c) It is intended to provide coverage on a date prior to the policy issue d) It guarantees that a policy will be issued in the amount applied for

c) It is intended to provide coverage on a date prior to the policy issue

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT a) Excessive insurance will not be sold b) Every reasonable efforts is made to identify an applicant's other insurance c) LTC policies are marketed effectively to prospective insureds d) Comparisons of policies are fair and accurate

c) LTC policies are marketed effectively to prospective insureds

Which of the following settlement options in life insurance is known as straight life? a) Life with period certain b) Fixed amount c) Life income d) Single life

c) Life income

If a settlement option is not chosen by the policy owner or the beneficiary, which option will be used? a) Fixed period b) Fixed amount c) Lump sum d) Life income

c) Lump sum

All of the following statements describe a MEWA EXCEPT a) MEWA employers retain full responsibility for any unpaid claims b) MEWAs can be self-insured c) MEWAs are groups of at least 3 employers d) MEWAs can be sponsored by insurance companies

c) MEWAs are groups of at least 3 employers

All of the following are covered by part A of Medicare EXCEPT a) Post-hospital nursing care b) Home health services c) Physician's and surgeon's services d) In-patient hospital services

c) Physician's and surgeon's services

Which of the following best details the underwriting process for life insurance? a) Issuance of policies b) Reporting and rejection of risks c) Selection, Classification, and rating of risks d) Solicitation, negotiation, and sale of policies

c) Selection, Classification, and rating of risks

A domestic insurer issuing variable contracts must establish one or more a) Annuity accounts b) General accounts c) Separate accounts d) Liability accounts

c) Separate accounts

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? a) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies b) One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies c) The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive d) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time

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

In a survivorship life policy, when does the insurer pay the death benefit? a) Half at the first death, and half at the second death b) If the insured survives to age 100 c) Upon the last death d) Upon the first death

c) Upon the last death

Under the Affordable Care Act, what percentage of preventative care must be covered without cost sharing? a) 25% b) 50% c) 80% d) 100%

d) 100%

Credit life karma accident and sickness insurance must be evidenced by an individual policy or a group certificate delivered to the debtor no later than how many days after the insurance term begins? a) 25 days b) 45 days c) 6 months d) 30 days

d) 30 days

all of the following are exempt from the licensing requirement EXCEPT a) Employee of insurance company handling the incoming calls b) Employee in charge of enrolling individuals into a group plan c) Human Resource Benefit Personnel d) Employee of insurance company involved in the effectuation of the insurance contract

d) Employee of insurance company involved in the effectuation of the insurance contract

When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? a) Fixed period b) Life income period certain c) Extended term d) Fixed amount

d) Fixed amount

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits? a) Variable annuity b) Flexible payment annuity c) Deferred interest annuity d) Immediate annuity

d) Immediate annuity

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20 year period. What type of policy is this? a) Term to specified age b) Ordinary life policy c) Limited pay whole life d) Level term

d) Level term

In term policies, what happens to the premium throughout the term of the policy? a) Premium gradually increases b) Premium gradually decreases c) Premium fluctuates d) Premium remains level

d) Premium remains level

A specialized dental service that provides for treatment of missing teeth is known as a) Orthodontics b) Endodontics c) Periodontics d) Prosthodontics

d) Prosthodontics

Which nonforfeiture option provides coverage for the longest period of time? a) Extended term b) Paid-up option c) Accumulated at interest d) Reduced paid-up

d) Reduced paid-up

Which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract? a) Concealment b) Indemnity c) Representation d) Warranty

d) Warranty

Which of the following is correct regarding credit life insurance? a) it is purchased on an installment basis b) it ensures the life of the creditor c) it has a maximum term of 20 years d) it insures the life of the debtor

d) it insures the life of the debtor

All of the following are criteria for payment of an accelerated benefit EXCEPT a) if any death benefit remains after payment of an accelerated benefit, the accidental death (AD) benefit must not be affected by such payment b) the benefit must not be made available as an annuity contingent upon the life of the insured c) contract payment options must include....ng accelerated benefits as a lump sum d) restrictions are permitted on the use of the proceeds of an accelerated benefit

d) restrictions are permitted on the use of the proceeds of an accelerated benefit