Oklahoma Life and Health State Exam Simulator
Which of the following is NOT a dividend option for a life insurance policy?
Receiving the entire policy cash value
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today?
$200,000
A terminated employee has how many days upon termination to convert group life insurance coverage to an individual policy?
31
Larry wants to purchase an individual disability income policy to provide continuous income while disabled. He is also covered by a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?
60 days
Which of the following describes coverage for the Medicare Part B coinsurance?
A Medicare Supplement core benefit
Which of the following combinations best describe a universal life insurance policy?
A flexible premium deposit fund and a monthly renewable term insurance policy
What does the term "field underwriting" refer to in the health insurance industry?
A producer's contact with the applicant
Accident and health insurance claim handling is made more convenient to the insured by utilizing
Assignment of benefits
A preferred provider plan and an indemnity plan are similar in what way?
Both pay on a fee-for-service basis
In what situation would disability income insurance premiums be a deductible expense?
Corporation paying for group disability income coverage for its employees
Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able to reside in her home while receiving primary care, as opposed to moving into a nursing home. All of the following long-term benefits encourage home health care EXCEPT
Custodial care
Major medical plans typically exclude coverage for which of the following benefits?
Custodial care
Which of these life insurance policies does NOT contain a cash value provision?
Decreasing term life
Which type of group plan is excluded from HIPAA rules?
Disability income
Disability income policies provide protection for which of the following?
Economic death
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted?
Fixed AMOUNT installment option
How long does one premium payment cover in a single premium whole life policy?
Full life of the policy
When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?
Give notice, explain, and allow opting out
What is an insurance contract that identifies individuals by relationship to a specific organization?
Group insurance
An annuity which starts paying monthly benefits within a month after issuance is called a(n)
Immediate annuity
Select the appropriate response Which of these statements is NOT true regarding a cash value loan against a life insurance policy?
Interest payments made by policyowner are deductible
Which life insurance settlement option pays lifetime benefits to two or more people?
Joint and survivor
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT
Leave a conditional receipt with client
Custodial care is normally covered under
Long-term care insurance
Life insurance premiums are computed on what three factors?
MORTALITY, interest, expenses
Skilled nursing facility expenses are sometimes covered by _____, but ONLY if the insured was hospitalized prior to entering the facility.
MediCARE
The disability income policy most likely to have been issued on a substandard basis is
Non-cancelable with a health condition exclusion rider
Which element of a contract constitutes a definite and unqualified proposal by one party to another?
Offer
These are all accurate statements regarding universal life insurance EXCEPT
Policy loans are not permitted
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 of the following is NOT included as a hospice benefit under a major medical plan?
Rehabilitation
What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period?
Subject to market value adjustment
All of these statements concerning group credit life insurance are false EXCEPT
The face amount is determined by the outstanding loan balance
An insured, age 67, is covered under a disability income policy. What will the insurer normally require in order for the insured to continue coverage?
The insured must be actively at work for a specified number of hours per week
What is considered the collateral on a life insurance policy loan?
The policy's cash value
Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate?
The premium to purchase the coverage comes from the policy's cash value
In Oklahoma, who is primarily responsible for determining the appropriateness of a Medicare Supplement policy for a proposed insured?
The producer who solicits the application
How is an insured's accident and health claim handled by an insurer if it occurs during the policy's grace period?
The unpaid premium may be subtracted from the reimbursement
What is the effect of the market value adjustment in a market value adjustment annuity?
Transfers some of the investment risk to the policyowner
Which of the following BEST describes a "partial disability"?
Unable to perform one or more job duties
Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
cash value
The principal source of information concerning an applicant's identity, age, and marital status is found in the
completed application
Which settlement option makes minimum guaranteed dollar payments over a stated number of years?
fixed period
When group benefits under COBRA have expired, a fully insured group policy can be converted to a(n)
individual health policy
Medicare Part A typically covers
inpatient drugs
Health care costs can be better controlled by utilizing preadmission testing. Preadmission testing can reduce the
length of hospitalization
The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called
nonforfeiture options
A life annuity feature which provides benefit payments for a minimum number of years, no matter when the annuitant dies, is called
period certain
A Guaranteed Renewable provision allows
premiums which can only be increased per rate class
Which of these factors does NOT affect life insurance premium rates?
producer certification
A certificate of coverage for a group health policy is best described as
proof of coverage for the employee
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
reimbursement
The envelope in which insurance solicitation material is contained may be addressed to the parents of students. The address may NOT include any combination of words which imply that the correspondence is from the
school
Under HIPAA requirements, eligibility for the pre-existing conditions exclusion waiver under new coverage is lost if
there is a break in coverage of more than 63 days
When does the owner's contractual rights begin under an individual annuity contract?
time of purchase
A health insurer MUST provide a proof of loss form
within 15 days of receipt of the notice of loss
