wrong test questions
what would a physician utilize if he/she wanted to know if a treatment is covered under an insured pkan and at what rate it will be paid?
prospective review
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
what is the civil penalty for violating a cease and desist order of the commissioner
10,000
according to the 2001 CSO table, at what age will the terminal reserves be reached?
120
COBRA applies to employers with at least
20 employees
a producer licensed in PA must notify the insurance department of any change of address in his or her residence or business address within how many days?
30
when a producer holding a certificate or a brokers license has a change in his/her residence or business address, he/she must notify the Department of Insurance and any company for which the producer holds an appointment within
30 days
a long term care policy may NOT lapse because of unpaid premiums unless the insurer gives at least:
30 days notice
for the purpose of examination by the department, insurers must keep a record of all financial files for at least
5 years
how many elligible employees must be included in a contributory plan?
75%
If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state?
90 days
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?
apparent
an employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his
attained age
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
authorized insurer
which of the following is not true of disability buy-sell coverage
benefits are considered taxable income to the business
which of the following is NOT true regarding an annuity certain?
benefits stop at the annuitants death
according to the provisions of the patient protection and affordable care act, all of the following are required preventative care services EXCEPT:
cervical cancer exams for all women starting at age 40
which component increases in the increasig term insurance
death benefit
an insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
false advertising
if an insurer changes a form that it uses to transact insurance, it must do which of the following?
file the form with the commissioner for approval
which of the following entities shas the authority to make changes to an insurance policy
insurers executive officer
all of the following are nonforfeiture options EXCEPT
interest only
which of the following is true regarding the spendthrift clause in life insurance policies
it can protect the policy proceeds from creditors of the beneficiary
which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?
it does not guarantee that the entire principal amount will be paid out
which of the following statements about the reinstatement provision is true?
it requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
A participating insurance policy may do which of the following?
pay dividends to the policy owner
a guaranteed renewable health insurance policy allows the
policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class
all of the following are examples of risk retention EXCEPT
premiums
under the fair credit reporting act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
respond to the consumers complaint
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the
revocable beneficiary
which two terms are assocated directly with the way an annuity is funded
single payment or periodic payments
all of the following are beneficiary designations EXCEPT
specified
the clause that protects the proceeds of a life insurance policy from crediots after the death of the insured is known as the
spendthrift clause
which of the following is an example of a producer being involved in an unfair trade practice of rebating
telling a client that his first premium will be waived if he purchases the insurance policy today
which of the following is true regarding the childhood immunization benefit in medical plans issued in this state?
thats a mandatory benefit
what happens if a non-member physician is utlized under the point of service plan?
the attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount
according to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means
the consumer directs the licensee not to disclose the consumers nonpublic personal financial information to a third party
which of the following true regarding elimination periods and the cost of coverage?
the longer the elimination period , the lower the cost of coverage
An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?
the medical information bureau
the insuring clause of a disability policy usually states all of the following EXCEPT
the method of premium payment
which of the following best describes what the annuity period is?
the period of time during which accumulated money is converted into income payments
all of the following are true of a key person EXCEPT
the plan is funded by permanent insurance only.
which of the following is NOT a goal of risk retention?
to minimize the insured levevl of liability in the event of a loss
which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
universal life
how long will the beneficiary recieve payments under the single life settlement option?
until the beneficiarys death
which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract?
warranty
the premium of a survivorship life policy compared with that of a joint life policy would be
lower
which of the following programs expands individual public assistance progams for people with insufficient income and resources?
medicaid
when is the annual open enrollment for state insurance exchanges
november 1 through jan 31
Which clause allows both the insured and dentist to know in advance which benefits will be paid?
precertification
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
predicted needs of the family after the insured death
How do employer contributions to a Health Savings Account affect the insured's taxes?
the employer contributions are not included in the individual insured taxable income
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
the father is disabled for more than 6 months
the owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. what will the soliciting insurance producer say?
the policyowner can specify the way proceeds are spilt in the policy
the termination of martial property rights may be reveresed for all of the following reasons EXCEPT
the spouse named as beneficiary has obtained or consented to a final decree or judgment of an annulment, divorce or separation
which of the following regulatory authorities participated in creating the national do not call registry?
FTC
all of the following are true regarding the medical information bureau EXCEPT:
MIB reports are based upon information supplied by doctors and hospitals
In order for a foreign insurer to do business in this state, it must apply for and obtain
a certificate of authority
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
a legal advertsing strategy
a licensee serving in the military is unable to fulfill her continuing education requirement. what would the licensee have to do to renew the license?
a licensee may submit a request to the department to have requirements and fees waived. the department will then determine if the request is permissible
Where would Long-term care services be rendered?
a nursing home or ones own home
which of the following is an example of a producers fiduciary responsibilities
a producer promptly forwarding premiums to the insurance company
An insured carries health insurance with two different providers and is covered on an expense incurred basis. He has an appendectomy and files the claims to both insurers. Neither company is notified in advance that the insurer has other coverage. What should each insurer pay?
a proportionate amount
which of the following would be required to be licensed as an insurance producer?
a salaried employee who advertises and solicits insurance
the most the insurance guaranty association will pay for net cash surrender values is
$100,000
In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least
12 months
the medicare supplement renewal commissions paid in the third year must be as high as the commission of which year
2nd
which of the following is true about nonforfeiture values?
they are required by state law to be included in the policy
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
a statement that is sufficiently clear to identify the insured and the nature of the claim
which of the following is true regarding METs
They allow several small employers purchase less expensive insurance together.
the insured health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?
accident-only
An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?
adjust the claim benefit to reflect the insureds true age
the omnibus budget reconciliation act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under
age 65 who are not retired
The commissioner of insurance is placed in office by which means?
an appointment by the governor
Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy?
an individual who was previously covered by group health insurance for 6 months is eligible
which of the following types of agent authority is also called "perceived authority"?
apparent
Under a Key Person disability income policy, premium payments
are made by the business and are not tax deductible
Under a Key Person disability income policy, premium payments
are made by the business and are not taxable
an applicant for an individual health policy failed to complete the application properly. before being able to complete the application and pay the intital premium, she is confined to a hospital. this will not be covered by insurance because she has not met the conditions specified in the
consideration clause
In a group prescription drug plan, the insured typically pays what amount of the drug cost?
copayment
what happens when a policy is surrendered for its cash value
coverage ends andd the policy cannot be reinstated
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 bested suited to this situation?
decreasing term
which of the following is an example of an unfair claims settlement practice
failure to promptly settle a claim when liability has been clearly established
violation of unfair discrimination law may result n all of the following penalties except
fines of up to $1000 for each act
Violation of unfair discrimination law may result in all of the following penalties EXCEPT
fines up to $1,000 for each act
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
fixed period
all of the following are licensing requirements for a business entity, except
having all employees complete continuing education courses once every 2 years