California Stimulation Test
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
An "insurance agent" means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance?
Annuities
When is the practice of 'post claims' underwriting allowable on disability insurance covering hospital, medical or surgical expenses?
At no time
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
Attending physician
What is the contract provision that allows the insurer to non renew health coverage if certain events occur?
Conditionally renewable
A long stretch of national economic hardship causes a 7% rate of inflation. A Policyowner notices that the face value of her life insurance policy has been raised 7% as a result. What policy rider caused this change?
Cost of Living Rider
Which coverage is a life insurance licensee NOT authorized to produce?
Coverage for major medical expenses
Which of the following statements about occupational vs nonoccupational coverage is TRUE?
Disability insurance can be written as occupational or nonoccupational
Which of the following is true regarding taxation of dividends in participating policies?
Dividends are not taxable
What is the goal of the HMO?
Early detection through regular checkups
All of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT
Education
How is the insurance commissioner chosen?
Elected by the people
A person who does NOT hold a valid license may do which of the following?
Examine contracts of insurance
Which of the following is an INACCURATE statement regarding replacement for long-term care coverage?
Group long-term care policies have the same rules regarding replacement as individual long-term care policies.
Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer?
If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf
When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer?
If the same insurance coverage cannot be procured from an admitted insurer.
Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called
Key employee disability insurance
Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life?
Need is predicted using the number of years until the insured's retirement
Qualified long-term care policies covering home care must provide benefits if the insured is impaired in at least two of the six activities of daily living (ADL). The term "impaired" means
Needs substantial hands on or standby assistance with ADL's
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
Profitable distribution of exposures serves the purpose of
Protecting the insurer against adverse selection
A straight life policy has what type of premium?
A level annual premium for the life of the insured
In which situation is a person or other entity that provides coverage for medical expenses NOT subject to the jurisdiction of the insurance department?
When they are subject to the jurisdiction of another agency of this or another state or the federal government.
When can earned surplus be returned to the policyholder?
Whenever it exists and is not needed for other expenses
The annual contribution limit of a Dependent Care Flexible Spending Account is set by
The IRS
Which of the following is NOT a characteristic of pure risk?
The loss must be measurable in dollars
Which of the following is TRUE of the conversion privileges for the insured in group life insurance?
The option to name a new beneficiary can be exercised by the owner
Which is an INACCURATE statement regarding blanket life insurance?
The policy is for the benefit of the policyholder.
On a health insurance application, a signature is required from all of the following individuals EXCEPT
The spouse of the policyowner
What are the requirements for notices required by any provision of the insurance code to a person unless expressly provided otherwise?
They should be sent to a mailing notice at their residence or place of business.
When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?
When the expenses exceed a certain percentage of the insured's adjusted gross income
All of the following define insolvency EXCEPT
revocation of certificate of authority by the commissioner.
The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT
the applicant is lacking in good judgment
All of the following must be specified in an insurance policy EXCEPT
the financial rating of the insurer
Which of the following is a party to a contract of insurance bound to communicate EXCEPT
those which the other would know by retaining a consultant with specialized knowledge in insurance matters
Which of the following is a party to a contract of insurance bound to communicate EXCEPT
those which the other would know by retaining a consultant with specialized knowledge in insurance matters.
What is the purpose of creating minimum underwriting standards for those testing positive for Acquired Immune Deficiency Syndrome, Human Immunodeficiency Virus or Aids Related Complex?
to avoid discrimination between individuals in the same rating class who have been diagnosed with the condition of AIDS, ARC or HIV
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT
unless otherwise apparent from the context
When does a license become inactive for a broker?
upon the termination of all appointments, or all endorsements
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT
upon the termination of all contracts
An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged a $100 per day. How much will the insurance company pay?
$120 a day
A situation in which a person can only lose or have no change represents
pure risk
In the event of receiving notice of a claim or other claim communication, all of the following timelines are accurate EXCEPT
every licensee or claims agent shall transmit notice of the claim to the insurer in no more than 5 calendar days.
A person who does NOT hold a valid license may do which of the following
examine contracts of insurance
All of the following are dividend options EXCEPT
fixed period installments
All of the following are TRUE for commissions paid to an agent for the sale of a Medicare supplement policy EXCEPT
gifts, bonuses, prizes, awards or finder's fees given for sales or renewals are not considered compensation
All of the following are requirements for an applicant to be licensed as a life & disability insurance analyst EXCEPT
having been employed by an insurance company
All the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT
his or her most recent license and appointment date
When shall an individual certificate be deemed to be "individualized" within the meaning of the CIC?
if it contains either the name of the person covered or some other means of identifying to the individual covered that it is his individual certificate
What is the maximum fine for a person who transacts insurance without a valid license?
$50,000 and/or imprisonment for a period not exceeding one year
What is the maximum fine for a person who transacts insurance without a valid license?
$50,000 and/or imprisonment for a period not exceeding one year.
What type of licensee can receive a fee from any person or source other than an insurer?
Life and Disability Insurance Analyst
Which of the following is NOT a characteristic of pure risk?
The loss must be catastrophic
An agent selling variable annuities must be registered with
FINRA
Which policy component decreases in decreasing term insurance?
Face amount
Health coverage becomes effective when the
First premium has been paid and the application has been approved
What percentage of a company's employees must take part in a noncontributory group life plan?
100%
The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print?
12 point bold print
What is a penalty tax for nonqualified distributions from a medical savings account?
20%
How long must an insurer keep records of electronic transmission to customers?
5 years
The legal definition of "person" would NOT include which of the following?
A family
When a replacement policy is being considered, what is required from an insurer?
A list of existing policies, replacement notice signed by the applicant and the agent, and a notice sent to any existing insurers that replacement is possible are all requirements
Which of the following persons in NOT eligible for Medicare?
A person who has been entitled to social security disability benefits for the last 6 months
Which is an INACCURATE statement regarding coverage for domestic partnerships?
A policyholder may not require that a domestic partnership be registered to qualify for coverage
In health insurance, what is a copayment?
A specific amount paid by the insured when treatment is received
A group blanket health policy is best suited for which of the following?
A summer camp
Which of the following is NOT covered under a long-term care policy?
Acute care in a hospital
When does a disability policy become incontestable as to the statements contained in the application?
After this policy been in force for a period of two years during the lifetime of the insured
What happens under a misstatement of age clause on a disability policy?
All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age.
In reference to the standard Medicare Supplement benefits plans, what does the term standard mean?
All providers will have the same coverage options and conditions for each plan
Bob was rendered totally disabled at the time his group health insurance plan was discontinued. Since benefits began to be paid while the policy was in force, which of the following would be required?
An Extension of Benefits
How does an "admitted" person, differ from an "non admitted" person, as it pertains to insurance?
An admitted person has the right to transact insurance business within the state, while a non admitted person is not entitled to this action
An insurance agent explains to his client the difference between two disability income insurance policies and then offers to fill out an application with the client's personal information and history. Upon completion of the application, the agent informs his client that he will "shop around" to find the company with the most favorable rates. If the agent presents the client's application to an insurer, he will be acting in which of the following capacities?
An insurance broker
When an annuity is written, whose life expectancy is taken into account?
Annuitant
Which concept is associated with "exclusion ratio?"
Annuity payments
Which of the following is TRUE regarding continuing education requirements of an agent or broker?
Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal
In disability income insurance, if an insured is considered disabled if they cannot perform any job they are suited for by prior education, training or experience, they fall under which definition of total disability?
Any occupation
Who must sign the notice regarding replacement?
Both the applicant and agent
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?
Buyer's guide
How can a licensee surrender any license for cancellation?
By submitting written notice or by delivering the license to the commissioner.
What is Medi-Cal?
California's Medicaid health care program
If an applicant for a health insurance policy is found to be a substandard risk, the insurance company is most likely to
Charge an extra premium
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
Conditional
All of the following are features and requirements of the Living Needs Rider EXCEPT
Diagnosis must indicate that death is expected within 3 years
Which of the following is considered a qualifying event under COBRA?
Divorce
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first
Which of the following policies is characterized by a provision where the premiums are lower in the early years of the policy and increase over time to a point where they become level for the remainder of the policy?
Graded premium whole life
As it pertains to group health insurance, COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense
A Medicare Supplement plan must have at least which of the following renewal provisions?
Guaranteed renewal
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
All of the following are requirements for an agent who advertises and transacts business on the internet EXCEPT
His or her most recent license and appointment date
Which of the following best describes an applicant's avocations?
Hobbies
Units with the same or similar exposure to loss are referred to as
Homogenous
A contract which one party undertakes to indemnify another against loss is called
Insurance
What type of licensee can receive a fee from any person or source other than an Insurer?
Life and Disability Insurance Analyst
Which is an INACCURATE statement regarding standards to avoid unfair underwriting for applicants at risk for auto immune deficiency, human immunodeficiency virus, or AIDS related conditions?
Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance.
When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?
Interest only
An insured purchases a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
Interest sensitive Whole life
All of the following actions by a person could be described as risk avoidance EXCEPT
Investing in the stock market
Which of the following is NOT a metal level of coverage offered under the Patient Protection and Affordable Care Act?
Iron
Which is considered unnecessary replacement for long-term coverage unless as a means to consolidate policies with one insurer?
Issuing 3 or more policies within a 12 month period
Which of the following BEST defines the general concept of the 24-hour care plan?
It integrates workers compensation medical care with the care provided by group health insurance
Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?
It requires a separate charge or fee
Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?
It requires a separate charge or fee.
Which of the following statements is TRUE concerning the Accidental Death rider?
It will pay double or triple the face amount
Variable Whole life insurance is based on what type of premium?
Level fixed
Kayla's husband died in a plane crash. She needs a new source of funding that will help put her child through daycare. Which of the following would be the best source?
Life insurance proceeds
Insurance is a contract by which one seeks to protect another from
Loss
Which of the following is NOT correct concerning a medical savings account (MSA)?
MSAs are only available to groups with at least 100 employees
Which of the following statements is INCORRECT regarding IRA's?
Married couples are required to purchase a jointly owned IRA
Doug decided to retire at age 62. When he applied for social security retirement benefits, he discovered
Medicare coverage was not available until the month of his 65th birthday
Acting as an agent for a non-admitted insurer (unless a surplus line broker) is considered a/an
Misdemeanor
As long as employment continues, which is the ONLY reason the validity of a group life insurance policy can be contested?
Non-payment of premiums after the policy has been in force for two years
Insurance is which type of contract?
One agrees to indemnify against loss, damage or liability arising from a contingent or unknown risk.
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Parts A and B of Medicare
Which of the following levels of care in long-term care policies specifically includes assistance with activities of daily living?
Personal care
Which of the following must be present in all Medicare Supplement plans?
Plan A
When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called
Preferred Provider Organization (PPO)
A woman obtains health coverage through the Marketplace on October 1. Two weeks later she finds out that she is 3 months pregnant. Which of the following is true about coverage for pregnancy?
Pregnancy will be covered immediately
What is the term for the fee a Policyowner must pay to the insurance company to maintain coverage?
Premium
How does insurance written under a franchise agreement or on a wholesale basis differ from standard group insurance?
Premiums for the coverage under a franchise agreement may be written for more than the usual rates for such insurance
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
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 her next premium. What option would allow her to do this?
Reduction of premium
Which of the following is NOT provided by an HMO?
Reimbursement
If a licensee wants to terminate her agent's license but it is in the possession of her employer, which of the following is true?
She can terminate the license by sending the Commissioner a written notice
When does the guaranteed issue period for Medicare supplement end?
Sixty three days after the disenrollment of the previous coverage
Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend
Straight life
Who is the California Life and Health & Guarantee Association is regulated by?
The California Insurance Commissioner
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
Which of the following would qualify as a competent party in an insurance contract?
The applicant has a prior felony conviction
In a group of life insurance policy, the employer may select all of the following EXCEPT
The beneficiary
Peril is most easily defined as
The cause of loss insured against
When examination of an insurer shows the insurer to be insolvent and a danger to the public, which authority is granted to the Commissioner by the CIC?
The commissioner may take possession of offices, books and property immediately without court order.
Which is an ACCURATE statement regarding dependent coverage under a group insurance policy?
The coverage must not exceed more than 100 percent of the coverage for the insured employee
An adjustable Life Policyowner can change which of the following policy features?
The coverage period
For an individual who is eligible for Medicare at age 65, and who is still employed and covered under the employer's plan. which of the following is true?
The employer plan is primary coverage, and Medicare is secondary coverage
What method is used to determine the taxable portion of each annuity payment?
The exclusion ratio
When an insured under age 60 purchases a new policy, how much time do they have to cancel and receive a full refund of premiums?
The insured has a period of not less than 10, and not more than 30 days, during which they may cancel and receive a full refund for the premiums paid
What does concealment, whether intentional or unintentional, entitle the injured party to?
The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions
Which is an INACCURATE statement regarding a life settlement contract?
The loan proceeds are used to solely pay premiums for the policy and any expenses incurred
What happens if an owner requests an immediate investment of monies in a variable annuity policy be returned during the 30 day cancellation period?
The owner shall receive the market value at the time of the cancellation
How does a member of an HMO see a specialist?
The primary care physician refers the member
Materiality to be solely determined by which of the following?
The probable and reasonable influence of facts upon the party to whom the communication is due
Materiality to be solely determined by which of the following?
The probable and reasonable influence of the facts upon the party to whom the communication is due.
Which is an INACCURATE statement regarding underwriting based on genetic testing?
The proposed insured must pay for the cost of the testing
Which is an INACCURATE statement regarding inflation protection for long-term care insurance?
The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount
Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans?
There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition
Medical may be available to persons over age 65 if
They have medical or long-term care claims not paid by Medicare
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
Why do group health providers usually require a certain amount of participation in the plan by eligible employees?
To guard against adverse selection and reduce cost
Which of the following actions is considered part of the insurance sales process?
Transaction of matters subsequent to execution of the contract and arising out of it
What types of services may NOT be provided under the long term care's assisted living care?
Visits by a registered nurse
Which circumstances in a pretext interview determine if the questions are permissible?
When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected.
Are dependents eligible for any premium refunds or dividends paid under any policy of group disability insurance?
Yes, insured employees are generally eligible as well as their dependents
What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder?
a duty of honesty, good faith, and fair dealing
Which statement accurately describes de-mutualization?
a mutual insurance company that decides to convert to a stock company
All of the following are TRUE regarding regulation and use of an agency name EXCEPT
a name would not be denied on the basis of being too similar to other company names.
A claimant can be any of the following EXCEPT
a person who is conducting an investigation of a claim on behalf of an insurer.
The California Life and Health Insurance Guarantee Act provides coverage for all of the following EXCEPT
a stop-loss insurance plan.
After what time period is the policy considered to have been delivered in an acceptable way if premiums have been paid?
after 6 months if the premiums have been paid
When may a licensee surrender for cancellation any license under which they are permitted to act?
at any time
If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT
bonds issued in all 50 states of the United States.
Which of the following types of coverage must have a proven insurable interest at the time of the application?
coverage for a minor child under age 18 or a corporate owned policy on an employee
The insurer may suspect that a moral hazard exists if the policyholder
is not honest about his health on an application for insurance
All of the following are examples of representation EXCEPT
it may be altered after the insurance is effected.
An insurance agent is a person who transacts all of the following types of insurance EXCEPT
life insurance
"Notice of legal action" can mean all of the following EXCEPT
notice of action against the agent
Under which situation would an individual enrolled in Medicare Part B be INELIGIBLE for open enrollment?
notice of end stage renal desease from the primary care physician
How many pairs of glasses in a 12 month period will a vision expense insurance plan cover?
one
An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would
pay the claim
Which would permit an insurer to escape insolvency?
possession of assets equal to the total paid-in capital after all liabilities and reinsurance
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?
present a proposal for insurance and transmit an application to the insurer
Every long-term care insurer in California must submit to the Commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of long-term care insurance. These submitted agent lists must be updated at least
semiannually
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
skilled care
Events in which a person has both the chance of winning or losing are classified as
speculative risk
Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?
survivors of the Holocaust
All of the following are TRUE regarding the process to change the California Code of Regulations EXCEPT
the Office of Administrative Law (OAL) may substitute its own judgment for that of the law rule making agency
All of the following are TRUE about the rules regarding the sale of life insurance and annuities to seniors age 65 or older EXCEPT
the agent, broker or insurer is required to show a copy of their insurance license with name, address, and phone number when conducting business in the senior's home
The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT
the applicant is lacking in good judgment.
All of the following are to be specified in an insurance policy EXCEPT
the financial rating of the insured.
All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or an insurance broker or solicitor EXCEPT
the specific contract language
All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or and insurance broker or solicitor EXCEPT
the specific contract language
An insured has a $1,000 HRA account through his employer. He incurred $750 in medical expenses the first year of the plan. How much, if anything, will the insured be able to roll over toward the next year's expenses?
$250
An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay?
$5,000
Which of the following individuals is eligible for a Health Savings Account?
Allison is insured by a High Deductible Health Plan (HDHP)
A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability?
Business overhead expense policy
The provision that provides for the sharing of expenses between the insured and the insurance company is
Coinsurance
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
Common disaster
Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT
Declining applicant for a positive HIV test result
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
Depreciation period
Which of the following terms is defined by the California Insurance Code as unassigned funds that must be reported on a stock insurer's annual statement?
Earned surplus
Who will be affected by the share of cost requirement for Medi-Cal?
Individuals whose income exceed the Medi-cal limit
Which of the following does NOT describe hospice care?
It provides care to people with life expectancies of 1 to 2 years
Using a class designation for beneficiaries means
Naming beneficiaries as a group
Shortly after a replacement transaction on a Medicare Supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
Notice Regarding Replacement
All of the following are covered by Part A of Medicare EXCEPT
Physician's and surgeon's services
Which of the following is the most common time for errors and omissions to occur on the part of an insurer?
Policy delivery
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 premium on the entire class
Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?
Reduction
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary
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
Which of the following best describes the "first dollar coverage" principle in basic medical insurance?
The insured is not required to pay a deductible
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
Unilateral
The minimum interest rate on an equity indexed annuity is often based on
an index like Standard & poor's 500
Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)?
during the open enrollment period
Which of the following is NOT true regarding a flexible spending account?
it does not have limits on contributions
Which of the following groups would most likely be covered under a blanket accident policy?
students at a public school
After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns the all the premium payments to the owner, except for a predetermined percentage. What is the percentage called?
surrender charge
All of the following are true of key person insurance EXCEPT
the plan is funded by permanent insurance only
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 statement accurately describes group disability income insurance?
The extent of benefits is determined by the insured's income
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant no later than
with the policy
The commissioner has the authority to issue a cease and desist order against any person acting as an insurance agent or broker without being licensed. The commissioner may also impose a penalty for each day the order is violated in what amount?
$5,000
Employer contributions made to a qualified plan
Are subject to vesting requirements
When a Policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called
Class designation
A producer is acting in what capacity when he or she is trying to obtain credible information about an applicant for health insurance?
Field underwriter
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of times is known as the
Incontestability clause
Which of the following statements best describes the effect the Accelerated Benefit provision would have paid to the beneficiary?
It will decrease the benefits paid to the beneficiary
Which of the following insurance options would be considered a risk-sharing arrangement?
Reciprocal
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
Which of the following is an example of a peril covered in an accident and health insurance policy?
Sickness
In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to
The contingent beneficiary
Who determines the eligibility and contribution limits in HRA?
The employer determines both
According to the code, how many separate requirements should an insurance policy have?
6
How long is an open enrollment period for Medicare Supplement policies?
6 months
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
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
Which answer is true about extension of benefits in group disability policies?
The benefits are extended if a disabled person's coverage terminates as a result of a discontinued group plan
How do employer contributions to a Health Savings Account affect the insured's taxes?
The employer contributions are not included in the individual insured's taxable income
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for specific procedure by a doctor of similar training and experience in that geographic area is known as
Usual, customary and reasonable
During the free-look period, the premium for a variable annuity may be invested in all of the following EXCEPT
Value funds
Which of the following is true regarding the gender of the applicant in disability income insurance?
Women, as they age, present a higher health risk and are more prone to disability