Sales exam

The life and health guaranty association will cover the contractual obligations of an insolvent insurer to an individual up to what amount?

$250,000

What is the maximum number of employees in order for a company qualify as a small employer?

50

What specific kind of insurance is often written in conjunction with hospital expense policies and includes surgeons and anesthesiologists fees?

Basic surgical expense insurance

In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health?

By requiring that the insurance be incidental to the group

Regarding the consideration clause, which of the following is NOT correct?

Consideration of the insurer and insured must be equal

An important fact about the financial status of an insurer was deliberately withheld. Which of the following terms best describes this action ?

False financial statement

An insurer incorporated under the laws of another state but doing business in this state is considered

Foreign

A medicare supplement plan must have at least which if the following renewal provisions?

Guaranteed renewable

In order for alumni association to be eligible to purchase group health insurance for its members these statements must be true EXCEPT when the association

Has been active for 5 years minimum

All of the following must sign an application for health insurance EXCEPT the ?

Insurer

In health insurance, the length of the grace period varies according to the ?

Mode of premium payment

If an insured is injured while committing an illegal act, and his health policy contains the illegal occupation provision, what percentage of the claim will be paid?

Nothing

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

Only if the individual is not identified

An insured purchased a health insurance policy with a renewability clause that states the policy is "Guaranteed Renewable." This means that as long as the required premiums are paid, the policy will continue until the insured...

Reaches age 65

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured.

Which of the following actions does NOT constitute false advertising?

Using names that disguise the true nature of a policy

Insurable interest is proven by...

love and affection economic Or financial loss. It is required at the time of policy issuance

All of the following would be classified as "limited insurance coverage"EXCEPT?

Accidental death and dismemberment policy

4 essential elements of a contract

Agreement-offer and acceptance. Consideration. Competent parties and legal purpose. Consideration is something of value that each party gives to the other. Parties to a contract must be capable of entering into a contract .be of legal age, Mentally competent to understand the contract And not under the influence of drugs or alcohol. To be legal must have both insurable interest and consent

A portion of a patient's open-heart surgery costs is paid by the organization that provided the surgery and post-operative care. Which type of organization is this ?

Contributing

Following a covered loss, the Time Payment of Claims Provision requires that an insurance company pay disability income benefits no less frequently than

Monthly

A producer advises a policyholder that he should replace his life insurance policy with another, similar policy. The agent advising this, however, for the sole purpose of earning a commission. What violation has the agent committed?

Churning

A lender who conditions approval of a loan on the condition that the borrower purchase insurance from the lender may be guilty of

Coecion

Which of the following os NOT normally an excluded cause of disability in an individual disability income policy?

Complications from pregnancy

An agent tells an insured that if he replaces his current insurance policy with a new one, his dividends will be higher and his premiums will be slightly lower. The policy , however, would not offer either one of these things. What type of misrepresentation is being committed?

Distorting

An insured's cancellable health insurance policy is being cancelled. One day before the policy is scheduled to end, he is involved in a major accident and is hospitalized for a week. Which of the following best describes the coverage that he would receive ?

Full benefits, as if the policy were still completely in effect

According to the Fair Crediting Act, all of the following statements are true EXCEPT?

If a applicant is declined for an insurance policy, he or she has no rights to know what was in the report.

Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?

Insuring Clause

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

Intermediate Care

If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire paid premium paid, at which of the following times ?

Within 10 days of when the policy was delivered

Which of the following statements is NOT true regarding health insurance policy provisions?

All additional provisions written by insurers are cataloged by their respective states.

Long term care coverage may be sold in all of various ways EXCEPT

As a part of medicare supplement policy by the use of endorsement

All of the following are features of a health insurance plan purchased on the health insurance marketplace EXCEPT ?

Dollar limits on essential benefits

How many continuing education hours must licensees complete on biennial basis?

24

Which of the following best describes the type of care provided by HMO's?

Preventive