Readiness exam

Which risk classification is representative of the majority of people in a certain age group and with similar lifestyles

standard

When is the intial enrollment period for Medicare Part A

starting 3 months before turning 65 and ending 3 months after the 65th birthday

if an applicants health is poorer than that of an average applicant the policy may be issued

substandard

Which of the following are characteristics of term life insurance?

temporary protection, renewability, no cash value

insurance policy that provides pure life insurance protection without a savings element

term

low income and high insurance needs

term insurance

which of the follwing types of insurance products would be good for an individual with a low income and high insurance needs

term insurance

what happens to the face amount of a whole life policy if the insured reaches the age of 100?

the cash value and the face amount are paid to the insured

Who would be the insured in business disability insurance?

the employer

in a group policy, all of the following can be the policy owner EXCEPT

the insurance company

According to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

the primary beneficiary died before the insured

Viatical Settlement

the sale of a life insurance policy by a terminally ill insured to another party, typically to investors or investor groups, who hope to profit by the insured's early death

what is true regarding benefits paid to disabled employees

they must be subject to taxation if the premium was paid by the employer

purpose of medicare supplement plans?

to fill in the gaps in medicare coverage

What is the purpose of a disability buy-sell agreement

to help the business meet overhead expenses in case of the owner's disability

purpose of respite care in long-term care insurance

to provide relief for a major caregiver, like a family member

the insurer owes the insured $500 in medical claims, however the last premium of $200 was never paid. how much does the insured receive in claims?

$300

maximum civil penalty per violation of the insurance code

$5,000

once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?

10 business days

what is the minumum age to apply for a resident producer's license in this state?

18 years

an agents first year commision cannot exceed what percentage of the renewal commsion for servicing a medicare supplement policy in its second year

200%

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 days

Policy loan requests for payment of due premiums, may be deferred for a period of up to

6 months

Elimination Period (Waiting Period)

A period of days (time) that must pass after the onset of an illness or occurrence of an accident before benefits will be payable.

in which medicare supplemental policies are the core benefits found

All Plans

spendthrift provision

All rights of the beneficiary to change time of payment or amount of installments, surrender for cash, borrow against, or assign for any purpose, are withdrawn and those parts of the policy that may give the beneficiary such rights are declared inoperative and void.

The entire contract includes all of the following EXCEPT

Buyers guide

he purchases an annuity and wishes to receive payments beginning in 2 months. What did he buy?

single premium immideate annuity

Agents may be found guilty of defamation if they make false statements that are intended to

Maliciously criticize another insurance company

cash value guarantees in a whole life policy are called

Nonforfeiture VALUES

what medicare part helps pay for inpatient hospital care, impatient care in a skilled nursing facility, home health care and hospice care?

Part A

What medicare will cover lab services or diagnostic tests

Part B

What is another name for medicare advantage plans?

Part C

what dental care would cover the cost of fillingsq

restorative

Annuties can be used to fund which of the following?

retirement plans

which is not a characteristic of a managed care plan

risk retention

A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?

a percentage of the face amount of the policy

The benefits for group disability plans are based on

a percentage of the worker's income

The OBRA requires that large group health plans must provide primary coverage for disabled individuals under

age 65 who are not retired

Who acts on behalf of the principal

agent

how long must a company maintain a complete file of all advertisements used

at least 4 years

answers to questions in an insurance application are called representations and, as such, they are

believed to be true to the best of the applicant's knowledge

an applicant misstates his age on his application for a health insurance policy. he states that he is 30, but is actually 49. what will happen?

benefits paid will be those that would have been purchased at the correct age

how is part b medicare funded?

by monthly premiums and from revenues of federal govt

whole life policy=

cash accumulation

in a variable life insurance policy, all of the following assests are help in the insurance company;s general account EXCEPT

cash surrender values

in an employer group health insurance plan, the covered employee receives

certificate of insurance

A producer who fails to separate premium monies from his own personal funds is guilty of

commingling

policy delivery refers to the delivery of the

completed insurance policy to the policyowner

to be valid, an insurance policy must have all of the following EXCEPT

countersignature

which of the following features would most likely appear on a dental plan?

diagnostic and preventitive care

If an employee remains on an employer group health plan within a company that has 20 employees and signs up for Medicare, which of the following coverages will be primary?

employer group health plan

what benefits are provided by medicare part c?

expanded benefits for a fee through private insurance programs such as HMOs or PPOs

the presumptive disability provision assumes that the insured is totally disabled upon loss of all of the following EXCEPT

feeling

when acting as a field underwriter, a producer is

seeking credible info about an applicant for health insurance

principal

firm who employs an agent

which of the following is a correct statement about annuities?

fixed annuities do not provide protection against inflation

an insurer incorportated under the laws of another state but doing business in this state is considered

foreign

where are premiums from fixed annuities invested

general account

if a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do?

inform the insurance company

which of the following is NOT a medicaid qualifier?

insurability

Which of the following is the primary source of info that an insurer uses to evaluate an insured's risk for life insurance?

insurance application

Who makes up the medical info bureau?

insurance companies

according to law of agency, insurance producers represent

insurers

Which source of underwriting information includes information on an applicant's character, reputation, habits, and mode of living

investigative consumer report

Which of the following best describes pure life annuity?

it provides the highest monthly benefits

if a retirement plan or annuity is qualified, this means

it satifies IRS requirements

who would be the insured in business disability insurance

key employees

what does an annuity protect the annuitant against

living longer than expected

Which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed with a terminal illness that will result in death within 2 years

living needs rider

what is another name for medicare supplement plans

medigap

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

misrepresentation

activities of daily living

mobility, bathing, dressing, eating, toileting, and continence

annuities must be a

natural person

dividends received on participating life insurance policies are

not taxable because they are a return of unused premiums

An insurer can decide not to renew an Optionally Renewable policy

on premium due dates

when may HIV-related test results to be provided to the MIB?

only if the individual is not identified

under a group medical policy, prescription drug plans are

optional benefits

what part of medicare is known as hospital insurance

part A

what medicare part provides a prescription drugs benefit?

part D

what part of medicare is known as medical insurance

part b

in order to reinstate a life insurance policy the insured must do all oft he follwoing except

pay next years premium in advance

who qualifies for medicare coverage

people 65 or older, or anyone who has been entitled to social security disability income benefirs for 2 years, or who has chronic kidney disease

if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

prior to performance of the test

who provides medigap policies

private insurers

a licensee who has moved to PA from out of state must provide what beforoe becoming licensed as a resident in this state

proof of licensing or a letter of clearance from the previous home state

The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

purchase of a new home

variable insurance and variable annuities are regualted by

qqq

"guarenteed renewable" means that as long as the required premiums are paid, the policy will continue until the insured

reaches age 65

All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT

reports may be sent to anyone who requests one

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has commiteed an illegal practice known as

twisting

which department of an insurance company is responsible for the selection, evaluation, and distribution of risks?

underwriting

which would not be provided by an HMO

unlimited coverage for treeatment for drug rehabilitation

which insurance is investement based, has a level fixed premium, and a nonguarenteed cash value?

variable whole life

Which of the following types of insurance policies would perform the function of cash accumulation?

whole life

how soon after the due date should the insurer pay the agent appointment fees?

within 30 days