9-4 learning test
An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined, and the cash value fell to $10,000. If the insured dies, how much will be paid out?
$50,000
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
At times, it is possible for a life insurance agent to affect a savings of premium rates by backdating an application for life insurance. What is the maximum amount of time that an application may be backdated?
6 months
How long is an open enrollment period for Medicare supplement policies?
6 months
In long term care policies, the term "chronically ill" means an individual who is unable to perform at least 2 activities of daily living for at least
90 days.
Jason is insured under his employer's group health insurance. He splits the cost of the premiums with his employer. This is an example of
A contributory plan.
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?
Annuity certain
Under a Key Person disability income policy, premium payments
Are made by the business and are not tax-deductible.
In a replacement situation, all of the following must be considered EXCEPT
Assets.
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time.
In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide a coverage that is
Broader in general.
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only.
Which of the following authorities is authorized to issue a temporary insurance producer's license?
Commissioner
If an insurer appoints a producer, which authority must be notified?
Department of Insurance
Which of the following is considered to be a morale hazard?
Driving recklessly
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
The authority granted to an agent through the agent's contract is referred to as
Express authority.
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?
Fair Credit Reporting Act
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which type of Medicare policy requires insureds to use specific healthcare providers and hospitals (network providers), EXCEPT in emergency situations?
Medicare SELECT
Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?
Metal level classification
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an
Modified endowment contract.
An insured is involved in a car accident. In addition to less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will the insured receive Presumptive Disability benefits?
No benefits
Medicare Part A services do NOT include which of the following?
Outpatient Hospital Treatment
An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?
Pay the death benefit
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
Permanent
When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?
Reimbursement
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 of the following entities established the Do-Not-Call Registry?
The Federal Trade Commission
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment.
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
The capital amount in a lump sum
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
The insured's age at death.
Which of the following is true regarding elimination periods and the cost of coverage?
The longer the elimination period, the lower the cost of coverage
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
What is the purpose of the rehabilitation benefit in disability insurance?
To cover the expenses of retraining the insured to return to work
Which of the following is NOT the purpose of HIPAA?
To provide immediate coverage to new employees who had been previously covered for 18 months
An absolute assignment is a
Transfer of all ownership rights in a policy.
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Viatical settlement brokers represent
Viators.
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from an insurance regulatory authority.
