Practice exam

A temporary agent license is valid for

180 days

A policy owner covered under Medicare parts A&B was treated by her physician on an outpatient basis. How much of her doctors bill will she be required to pay out of pocket

20% of covered charges above the deductible

Controlled business must not exceed what portion of a producer's transactions

25%

What is the minimum required number of continuing education credits in ethics every licensing period?

3

If a person demands a hearing, the Commissioner of Insurance must set the hearing within

30 days

The commissioner is elected to a term that last for how many years

4

This state provided for a temporary license for all of the following EXCEPT

A producer's retirement.

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean?

All providers will have the same coverage options and conditions for each plan

In comparison to a policy that uses the accidental means definition, a policy that uses accidental bodily injury definition would provide a coverage that is?

Broader in general

How are state Insurance Guaranty Associations funded?

By their members - authorized insurers. Guaranty Associations are funded by their members: all authorized insurers are required to contribute to a fund to provide for the payment of claims for insolvent insurers.

The provision that states that both the printed contract and a copy of the application form the contract between the policy owner and the insurer is called?

Entire Contract

Which of the following entities has the authority to make changes to an insurance policy

Insurer's executive officer

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

Insurer's guaranteed minimum rate of interest

What is the benefit of experience rating?

It allows employers with low claims experience to get lower premiums.

Why is Equity Indexed Annuity considered to be a Fixed Annuity?

It has a guaranteed minimum interest rate.

Which of the following is an example of a limited pay life policy

Life Paid-up at Age 65

Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insureds death

Life insurance proceeds

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited Pay Life

A policy owner is reading a statement on the first page of his health insurance policy, which says "this is a limited policy". What is the name of this statement?

Limited policy notice

Policy that uses the accidental bodily injury definition

More coverage

An insured neglected to pay his premiums, so his policy lapsed. He filed a reinstatement application and another premium and was reinstated shortly thereafter. Five days after the reinstatement, he had a consultation with a general physician. Which part of the consultation costs will be covered?

None (accidents are covered immediately following reinstatements; however sickness is covered only after 10 days. This helps protect the insurer from adverse selections.

On a participating insurance policy issued by a mutual insurance company. Dividends paid to a policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

When calculating the amount a policy owner may borrow from a variable life policy, what must be subtracted from the policy's cash value?

Outstanding loans and interest

Traditional IRA (individual retirement accounts) contributions are tax deductible based on which of the following

Owners income

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

Which of the following individuals must have insurable interest in the insured?

Policyowner

Under a disability income policy, the insurer does not pay a monthly benefit that is equal to the insureds previous income. The reason for paying a benefit amount that is less than the insureds income is to?

Prevent over utilization and malingering

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

The Federal Fair Credit Reporting Act

Regulates consumer reports

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability. which policy provision allow this?

Reinstatement provision (a lapsed policy may be reinstated within 3 years by paying back premiums, with interest, and proving insurability

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Which is true about a spouse term rider

The rider is usually level term insurance

Which of the following is true regarding METs

They allow several small employers purchase less expensive insurance together.

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

Type of investment

Policy with Accidental means definition

a condition for losses covered under an insurance policy that requires the loss to have been the result of an accident, rather than the result of a non-accident.

The two types of assignments are

absolute and collateral

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

beneficiary

Which of the following would not be used in preventive care

chemotherapy

What type of annuity can be purchased with a single premium and provides benefit payments immediately

immediate

When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?

reimbursement

A person steps off a street car and trips and breaks his ankle. This type of injury can be described as

sudden and unforeseen. (Accidental bodily injury is an unforeseen and unintended injury that resulted from an accident rather than a sickness.