Symmetry
Level term
A policy will pay the death benefit if the insured dies during the 20-years premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
For variable products, underlying assets must be kept in
A separate account
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
Group health insurance is characterized by all of the following EXCEPT
Adverse selection
When transacting business in this state an insurer formed under the laws of another country is known as a/an
Alien insurer
Placing advertisements for an insurer
All of the following are example of transacting insurance in Georgia EXCEPT
Jeremy had to have both legs amputated, but has learned how to take care of himself and to get around in a wheelchair
All of the following would be qualified as dependent under a Dependent Care Flexible Spending Account, EXCEPT
When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 years old, when in fact, she was 37. If the policy contains the optional misstatement of age provision
Amounts payable under the policy will reflect the insured's correct age
Neither approved the application nor issued the policy
An applicant for a health insurance policy returns a completed application to her agent along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done but this point?
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
In a replacement situation all of the following must be considered EXCEPT?
Assets
apparent
Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?
Which of the following components must a life insurance policy have to allow policy loans?
Cash value
An insured pays an annual premium to his insurer. In return the insurer promises to pay benefits in accordance with the terms of the contract . This is called
Consideration
Which of the following includes information regarding a person's credit, character, reputation, and habits?
Consumer report
Which of the following is NOT an exclusion in medical expense insurance policies?
Coverage for dependents
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
Insurers must screen all marketing plans to ensure that an advertisement does NOT use as the name of any kind of an annuity contract any phrase that
Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity
The provision that states that both the printed contract and a copy of the application form the contract between the policyowner and the insurer is called the
Entire contract
The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the
Entire contract
The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract
Entire contract clause
The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the
Entire contract clause
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions
Which policy component decrease in decreasing term insurance?
Face amount
Which of the following best describes annually renewable term insurance?
It is level term insurance
Which of the following is true about the premium on the children's rider in a life insurance policy?
It remains the same no matter how many children are added to the policy
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
The corridor deductible derives its name from the fact that it is applied between the basic converge and the
Major medical coverage
An applicant for the a health insurance policy returns a completed application to her agent, along with a check for the first premium, She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
In long-term care insurance, what type of care is provided with intermediate care?
Occasional nursing or rehabilitative care
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
Offer the supplement policy on a guaranteed issue basis
The spouse of the policyowner
On a health insurance application, a signature is required from all of the following individuals EXCEPT
Which of the following explains the policyowner's right to change beneficiaries choose options, and receive proceeds of a policy?
Owner's Rights
If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
Policyowner
Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT
Premiums always stay the same
Regarding the taxation of Business Overhead policies
Premiums are deductible and benefits are taxed
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal sum
In respect to the consideration clause, which of the following is consideration on the part of the insurer?
Promising to pay in accordance with the contract terms
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by class
The policyowner pays for her life insurance annually. Until now she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for next premium. What option would allow her to do this?
Reduction of premium
Todd has been informed that he has a hernia which requires repairs. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expense. Each point represents $10, which means that $2000 of his surgery will covered by his insurance plan. What system is Todd's insurance company using?
Relative value
In the event of a loss, business overhead insurance will pay for
Rent
If an agent wishes to sell variable life policies, what license must the agent obtain?
Securities
An IRA purchased by a small employer to cover employees is known as a
Simplified Employee Pension plan
All of the following long-term care coverage would allow an insured to receive care at home EXCEPT
Skilled care
Which of the following would basic medical expense coverage NOT cover?
Surgeon's services
In a life settlement contract whom does the life settlement broker represent?
The owner
In a life settlement contract, whom does the life settlement broker represent?
The owner
All of the following are true of an annuity owner EXCEEPT
The owner must be the party to receive benefits
A policy with a 31-day grace period implies
The policy will not lapse for 31 days if the premium is not paid when due.
Which of the following statements regarding the Change of Beneficiaries Provision is false
The policyowner has the right to change beneficiaries in any case
How does a member of an HMO see a specialist?
The primary care physician refers the member
On a health insurance application, a signature is required from all of the following individuals EXCEPT
The spouse of the policyowner
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract
When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees
To renew the policy until the insured has reached age 65
Which of the following terms will be permissible in describing a life insurance policy in company advertisement?
Variable plan
Social Security Supplement (SIS) or Social Riders would provide for the payment of income benefits in each of the situations below EXCEPT
When the amount payable under Social Security is more than the amount payable under the rider
In long-term care insurance what type of care is provided with intermediate care?
Occasional nursing or rehabilitative care
Which of the following statements is true regarding coinsurance?
The large the percentage that is paid by the insured the lower the required premium will be
An insured owns a $50,000 whole life policy. At age 47, the insured deicides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
For how many days of skilled nursing facility care will Medicare pay benefits ?
100
What is the minimum age for purchasing a life insurance policy in this state?
15
How long is the free-look period for ;long-term care policies issued in Georgia?
30 days
In the event a policy lapses due to nonpayment of premium within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
If an insured's cognitive impairment results in the lapse of long-term care policy, how long from the policy lapse may the insured request reinstatement?
5 months
Authorized insurance companies are examined by the Commissioner at least once every
5 years
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital
In a direct rollover, how is the money transferred from one plan to the new one?
From trustee to trustee
An individual is purchasing a permanent life insurance policy with a face value of 25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following option should be included in the policy?
Guaranteed insurability option
Which of the following types of LTC is NOT provided in an institutional setting?
Home health care
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material
A Health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from reinstatement date will converge for accidents become effective?
Immediately
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
Implied
What type of insurance would be used for Return of Premium rider?
Increasing Term
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT
Individual tax deduction for premiums paid
The Medical Information Bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured and to whom the benefits will be paid?
Insuring clause
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
Grace Period
The automatic premium loan provision is activated at the end of the
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
An insured purchased a noncancelable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel policy?
The insured in an accident and incurs a large claim.
An employee is insured under her employer's group lie plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to covert to term or permanent individual coverage
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to
The insured's estate
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?
The insured's premiums will be waived until she is 21
Who is responsible for the contents of life insurance advertising?
The insurer
The method of premium payment
The insuring clause of a disability policy usually states all of the following EXCEPT
Issuing sales material with exaggerated statements about policy benefits
Which of the following best describes a misrepresentation?
Exchange of unequal values
Which of the following best describes the aleatory nature of an insurance contact?
Divorce
Which of the following is considered a qualifying event under COBRA?
A debtor has an insurable interest in the life of a lender
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?
The policyowner has the right to change beneficiaries in any case.
Which of the following statements regarding the Change of Beneficiaries Provision is false?
The applicant has a prior felony conviction
Which of the following would qualify as a competent part in an insurance contract?
An individual not covered by an employer-sponsored plan who has earned income.
Who can make a fully deductible contribution to a traditional IRA?
If a policy includes a free-look period of at least 10 days the Buyer's Guide maybe delivered to the applicant no later than
With the policy
