Connecticut life and health state exam simulator
In Connecticut, a temporary license may be issued for a period Not to exceed_____days.
180
Who is protected with the " other insurance with this insurer" provision?
Insurance company
Where will a life insurance policy's proceeds be directed to if all of the beneficiaries die before the insured?
Insured's estate
Which of these statements reflects in accurate portrayal of Medicare select?
Insured's uses preferred providers in exchange for paying lower premiums
Who is required to notify the producer in the event of Appointment termination?
Insurer
Which of the following causes of disability is not covered under Connecticut Worker's Compensation laws?
Intentional, self-inflicted injuries that occur at the worksite
Which of these statements is not true regarding a cash value loan against a life insurance policy?
Interest payments made by policyowner are deductible
Andy is in need of health care performed by skilled medical practitioners, but only in intermittent basis. What level of care what his doctor likely prescribe?
Intermediate care
When compared to a fixed annuity, a variable annuity has what distinguishing feature?
Investment risk is assumed by the purchaser
Which of the following is associated with an immediate annuity?
Lack of an accumulation period
Which of the following does TRICARE provide accident and health coverage to?
Military families
In Connecticut, false advertising is an example of
Misrepresentation
Which of the following best to find the illegal act of twisting
Miss representing a policy for the purpose of inducing a policyholder to change or replace an existing policy
The insured's consideration given for a health insurance policy is
The first premium payment in the application
When disability buy-sell insurance benefits exceed a partnership cost basis, which of the following is correct?
The full amount is non-taxable to the partner
An individual who intentionally violate to Connecticut insurance law may be subject to a maximum fine of
$5000
To be classified as a small employer in Connecticut, and employer must employ how many eligible employees?
1 to 50
The free look period provided in a life insurance policy is usually
10 days
Premature IRA distributions are subject to a penalty tax of
10%
What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?
100%
The health insurance premiums paid for by each partner in a partnership is considered to be
100% tax deductible
Within______months of passing the Connecticut producer licensing exam, an individual must apply for and be issued a license or be required to retake the exam.
12
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
A survivorship life insurance policy usually covers how many lives?
2
A life insurance policy that is paid annually must contain a grace period of at least _____ days.
30
Any administrative action taken against a producer MUST be reported to the commissioner within _____ days.
30
Any administrative action taken against a producer must be reported to the commissioner with an______days after the final disposition.
30
Producers licensed in Connecticut must notify the insurance department within___days of any change of name or address.
30
Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insureds death?
30-year decreasing term
Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?
60 days
Which of the following is an example of defamation?
A brochure including an untrue statement regarding a competitor's ability to pay claims
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?
Accidental Death and Dismemberment
A(n) ____________ insurer operates in the U.S but is headquartered outside the U.S.
Alien
a _________ Ensure operates in the United States but is headquartered outside the United States.
Alien
An order issued by the commissioner that prohibits a specific practice listed in the order is called a
Cease and desist order
When does the insured stop making payments under a 30 payment whole life policy?
At the time of death or 30 years after the policies inception, which ever comes
What is the tax treatment of benefit payments for a non-qualified annuity?
Benefit payments are always fully taxable
A life settlement_________negotiate the life settlement between a policy owner in a life settlement provider.
Broker
A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?
Business Overhead Expense
Which of these Is not considered to be a cost connected with an individual's death?
Business expenses
Which of the following types of insurers limits the exposures it writes to those of its owners?
Captive insurer
Medical costs and birthing centers are lowered by
Certified nursing midwives
What type of employee welfare plans are not subject to ERISA regulations?
Church plans
A consultant derives their income from which source?
Client
Prepaid dental plans differ from most other types of dental plans in what way?
Closed panel of dentists can only be used
A prospective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of
Coercion
Which of the following is considered to be an example of unfair restraint of competition?
Coercion
Which of these is not a punishment for committing an unfair or prohibited insurance practice?
Community service
Life settlement brokers are not allowed to
Complete transactions prior to being approved for a license
A______is a licensee who charges a fee for contracted insurance advisory services.
Consultant
In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange?
Contact the employer if an employee stops coverage under a plan offered in the exchange
Which of the following does not involve a life settlement transaction?
Converting term life coverage to whole life insurance
Which of the following disability buy sell agreement is best suited for businesses with a limited number of partners?
Cross purchase agreement
What type of doctor ordered care assist in individual with performing basic daily activities such as bathing dressing and eating?
Custodial care
Health providers are compensated by a preferred provider organization for normal dental procedures by what means?
Decreased fee schedules
All of these are used to prevent adverse selection of the group dental plan except
Decreased participation
Elimination periods Typically apply to
Disability policies
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
Group life plans sold in Connecticut typically contain a conversion option. If the insured's Elects this option, the new policy
Does not require evidence of insurability
When dealing with long-term care coverage, which of the following are classified as ALDs?
Eating,bathing,dressing, mobility
A temporary license may be issued to which of the following?
Employee of a disabled producer
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as
Facultative reinsurance
An example of an unfair claim settlement practice is
Failing to promptly investigate and settle legitimate claims
Which of the following would be considered a violation of Connecticut insurance law?
Failure to remit premium in a timely manner
A producer is meeting with a client to determine whether in annuity will be suitable for purchase. Which of the following topics needs to be discussed with the client?
Financial status of the client
A _________insurance business in a state other than the one in which is domiciled.
Foreign
An annuity contract maybe return them for refund during the
Free look period
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?
Given written consent by the state insurance regulatory agency
An insurer may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?
Good health statement
A producers license may only be suspended or revoked if the producer
Has been afforded the right to hearing
When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?
Identifies the needs of an individual and the individual's dependents
A policyowner has just borrowed from a life insurance policies cash value. Which of these statements is true?
In the event of death, the loan amount is deducted from the policy proceeds
A 55-year-old recently received a $30,000 distribution from a previous employer 401(k) plan, -$6000 for income tax withholding. Which of the federal taxes apply and none of the funds rolled over?
Income tax plus a 10% penalty tax on $30,000
Which life insurance clause prohibits an insurance company from questioning the validity of the contract after the stated period of time has passed?
Incontestable clause
Which of the following is not classified as an employee under a group employer insurance plan?
Independent contractors
All of these are considered features of whole life insurance EXCEPT
Initial premium is lower than for an equivalent amount of term insurance
The medical information bureau consist of members from which group?
Insurance companies
A policy owner has a life insurance policy where she has listed her age on the application as five years younger than her actual age. If she dies and then sure discovers the misstatement at age, how much will the insurance company pay?
Less than the face amount
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
Less than the policy's face amount
Which of the following is NOT information needed to determine the suitability of an annuity recommendation?
Level of education
The _________________ Is responsible for reporting to the commissioner any name or address change of the licensee's.
Licensee
What is another term used for a pure life annuity?
Life Income
All of these are common limiting factors with dental insurance except for
Limit placed on number of teeth that may be treated annually
What action can an insurer take to discourage malingering And false disability claims?
Limit the amount of benefits and insured can receive from two disability policies with the same insurer
How can A group dental insured discourage adverse selection?
Limit the duration of coverage
Employees usually receive workers compensation benefits for
Lost wages and medical expenses due to on-the-job accidents
Which of these policies is considered to be a comprehensive health policy?
Major Medical policy
The commissioner is empowered to perform each of the following ask except
Make rules that are consistent with those of neighboring states
Risk______is the process of analyzing exposures that create risk in designing programs to handle them.
Management
An insurance applicant has Made a false statement on the application that will affect inch or's decision on whether or not to issue the policy. This false statement is considered
Material misrepresentations
According to the affordable care act (ACA), The proportion of premium revenue spent on clinical services and quality improvement is called the
Medical loss ratio
Which of these is a Type of private insurance that covers the cost sharing amount under Medicare?
Medicare supplement
Which of the following is bot a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?
Misstatement of age
All of the following are covered under most dental plans EXCEPT for
Mouth cancer
If the commissioner Request access to a producers business records, the producer
Must provide access to the records upon request
James the producer has sold a life insurance contract to a client without using an illustration, even though his ensure all first one. For this particular transaction, the applicant
Must sign a statement that no illustration was provided
What must be disclosed with a procedure advertised as a life insurance policy?
Name of the actual insirer
How would preventative care be encouraged in a dental plan?
No deductible or coinsurance required on teeth cleanings
The disability income policy most likely to have been issued on a substandard basis is
Non-cancelable with a health condition exclusion rider
A _______________ Producer lives in another state and transacts insurance in Connecticut.
Non-residential
Which of the following health insurance plans charges a premium that cannot be increased?
Noncancelable
Which of these is not an unfair claim settlement practice?
Offering to settle claim by arbitration
An insurer may not refuse the renewal of a small employer health insurance plan because of
Overuse of medical services
Which statement best describes a single premium whole life policy?
Paid-up policy that offers lifetime protection
Which of the following is not a function of accident and health insurance?
Pays a death benefit as a result of natural causes
Twisting means
Persuading and insured, to the insured's detriment, to switch policies
Which of these plans allow a participant to choose either in network or non-network provider at the same time when medical care is needed?
Point of service
A producer sold a life insurance policy but did NOT provide the applicant with a basic illustration. In this situation, the insurer is REQUIRED to provide the applicant with a policy summary no later than the
Policy delivery date
These are all accurate statements regarding universal life insurance except
Policy loans are not permitted
Straight whole life insurance can be accurately described in all of these statements EXCEPT
Policy protection normally expires at age 65
How are level term policies able to provide level term premiums?
Premiums are averaged over the term of the policy
Which statement regarding the life insurance premium for a children's rider is true?
Premiums remain the same no matter how many children
Which of these is not a standard provision and qualified long-term care policy sold in Connecticut?
Prior hospitalization
At what point must a producer give notification to the commissioner about using an assumed name?
Prior to using the assumed name
What is the name of the period of time during which a new employee is in eligible for group health insurance coverage?
Probationary period
Under federal law, which of the following actions may result in a producer becoming imprisoned?
Producer embezzling funds from an insurer
A producer has Indicated to a potential client that the proposed life insurance is covered by the Connecticut life and health insurance guarantee association. This action taken by the producer is
Prohibited by law
They handicapped child is covered under an individual health policy. If continuation of coverage is needed to be on the policies age limit, which of the following is required?
Proof of incapacity in dependency upon reaching the age limit
The dental special to you which deals with the replacement of missing teeth is called
Prosthodontics
Ambiguities In insurance contracts are typically interpreted in favor of the insured. This rule is referred to as
Reasonable expectations
Which of the following actions may result in a producers license being suspended by the commissioner?
Rebating part of a commission to the applicant
Which of the following is not a dividend option for a life insurance policy?
Receiving the entire policy cash value
Which of the following facilitates non-resident licensing in the state of Connecticut?
Reciprocity agreement
Which of the following statements BEST describes the HIPPA portability rules for an individual who changes from one group medical plan to another?
Reduces or eliminates any pre-existing conditions excluded under the new plan
Which of these is not an unfair claim settlement practice?
Refusing to pay person's bringing false or fraudulent claims
Which of the following is NOT included as a hospice benefit under a major medical plan?
Rehabilitation
A life insurance policies waiver of premium riders has the ability to
Relieve the insured of premium payments following an initial waiting period After that insured becomes totally disabled
When an insurer market it's Medicare supplement products in Connecticut, which method is acceptable?
Replacing an existing policy with one that has greater benefits
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
Which of the following would most likely purchase an immediate annuity?
Retiree having a lump sum to invest
What kind of arrangement gives a policyowner the right to change the beneficiary?
Revocable designation
Which of the following can be defined as "the potential for loss"?
Risk
A example of endodontic treatment is a
Root canal
What does a 401(k) plan generally provide to its participants?
Salary-deferral option
Security laws passed by Congress are in force by which federal agency?
Security and exchange commission
Long-term care policies are in Connecticut may not exclude coverage for
Selena dementia
Laura is a new employee and will be obtaining non-contributory group major medical insurance from her employer. Which of the following actions much she take during the open enrollment period?
Sign an enrollment card
Medicare part A covers which type of care?
Skilled nursing facility care
Which of the following would not have a restricted ability to enter into a contract?
Small employer
An individual may receive Medicare part a hospital benefits, regardless of age, as long as the person has received which of the following benefits for at least 24 months?
Social Security disability
Licensed producers in Connecticut are authorized to
Solicit, receive, and forward applications to the insurer
Which entity is responsible for regulating claim settlement practices of insurers?
State insurance departments
In regards to technology in the ACA, which of the following statements is correct?
States which operate within the exchange qualify for federal aid to initiate an Internet-based portal
A group health certificate for coverage issues in Connecticut must contain a
Summary of policy features and benefits
Which of these annuity contract features is meant to discourage withdrawals and exchanges?
Surrender charges
When testing for the human immunodeficiency virus, Connecticut law requires a consent form
That discloses who may receive a copy of the results
To secure authority for soliciting insurance products in the state of Connecticut, and insurance company must secure a certificate of authority from
The Connecticut insurance commissioner
Which statement regarding the joint and survivor life insurance settlement option is not true?
The amount of each installment is larger than the single life income option
In order to contribute to a health savings account
The applicant must be enrolled in a high deductible health plan
What is payable to the policy owner of a whole life policy is surrendered prior to its maturity date?
The cash value
Which of the following is not a valid cause for termination of an employee's group health coverage?
The coinsurance limit has been exceeded
If one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission?
The commission will likely be shared between the two producers
Which of the following statements accurately describes the financial impact of total disability?
The financial impact may be worse than that of death
What is taken into consideration when defining " total disability" In a disability income insurance policy?
The insured's education, training, and experience
How is a community rating used for underwriting purposes?
The same rates are charged for individual and group plans in the same geographical area
How is an insured accident and health Claim handled by an inch or if it occurs during the policies grace period?
The unpaid premium may be subtracted from the reimbursement
What is a "function assessment" For long-term care benefits?
They review of the insured's ability to perform for activities of daily living
Why does Connecticut require insurers to maintain a minimum level of assets?
To demonstrate insurer solvency
Which of these situations would not potentially involve a prison sentence under federal law?
Transacting insurance with a nonresident license
Which of the following does medical expense insurance not typically cover?
Treatment in a government facility
A life insurance policy may ONLY be contested by the insurer during the first ________ years of the contract.
Two
After a life insurance policy has been in force for____years, it becomes incontestable
Two
Charging different premiums to policyholders in the same risk classification is referred to as
Unfair discrimination
When an individual buys insurance under a threat made by a producer, and violation has occurred under the
Unfair trade practices act
In an individual retirement account, rollover contributions are
Unlimited by dollar amount
How long does protection normally extend to under a limited pay whole life policy?
Until age 100
Mentally or physically handicapped dependent children must be covered until an individual health insurance policy
Until they become self supporting
At what point are death proceeds paid in a joint life insurance policy?
When the first insured dies
A policy owner Is permitted to take out a policyown on a whole life policy at what point?
When the policy has a cash value
According to federal Fraud and False statement regulations, what is required for a prohibited person to transact insurance business in the state?
Written consent from the state insurance regulatory agency
Disability income insurance normally excludes coverage for disabilities that arise from
active military duty
In regards to health insurance, employees age 65 or older are typically required to
be offered the same group health benefits offered to the younger employees
Accident and health insurance claim handling is made more convenient to the insured by Utilizing
assignment of benefits
The Guarantee of insurability option provides a long-term care policyowner the ability to
buy additional coverage at a later date
Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans
cover preventative care once every six months
Which of these is not considered a federal punishment for unfair and deceptive insurance practices?
community service
Which of these is typically regarded as a major treatment in an indemnity dental plan?
dentures
For purposes of disability income insurance, earned income would include all the following except
dividends
When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement?
eye examination
According to the Affordable care act, coverage may be rescinded
if intentionally false statements were offered
Which of the following financial products creates an instant estate, no matter when the date of death?
life insurance
Custodial care is normally covered under
long term care insurance
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the amount transferred
A MET third-party administrator may not perform which of the following functions?
marketing plan
Which of the following relationships demonstrates insurable interest in the absence of economic interest?
marriage partners
Misrepresentation on the application is
material
Field underwriting by a producer
may result in the disclosure of hazardous activities of the applicant
Which of these is not used as selection criteria in the underwriting process of a life insurance application?
national origin
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were
not distributed to life annuitants who died before life expectancy
Long-term care policies normally cover expenses associated with
nursing homes
Most prepaid dental plans cover
oral exams
Where is the difference between a standard risk and a substandard risk reflected?
premium charges
In most dental plans, a deductible typically is not applied to
preventative and diagnostic services
Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will discontinue after a stated number of years remain a constant dollar amount for the duration of the annuity period pay a lump sum if the annuitant dies vary according to the underlying investment performance
remain a constant dollar amount for the duration of the annuity period
What type of risk involves the potential for loss in the possibility for gain?
speculative
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally
tax deductible to the business
Under a key person disability income policy, benefits will be received as
tax-free income to the business
Medicare part A does not provide coverage for
the first 3 pints of blood
The major medical deductible carryover period normally applies to expenses incurred during the last _____ months of the plan year.
three
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
