EXAM 2!!

Basic Hospital and Surgical policy benefits are :

lower than the actual expenses incurred

Which of these statements concerning an individual Disability Income policy is TRUE?

normally includes an Elimination period

Which statement is TRUE in regards to a policy loan ?

past-due interest on a policy loan is added to the total debt

K pays on a $ 20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses?

$3,000

A 15-year mortgage is best protected by what kind of life policy ?

15-year decreasing term

How many days is a temporary producer's license valid?

180

To be classified as a small employer , an employer must employ:

2-50 employees

In Indiana, the MAXIMUM fine that the Commissioner can impose on a producer or company who violates a cease and desist order is per violation

25,000

What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan ?

50%

Which of these is an element of a Variable Life policy ?

a fixed, level premium

All of the following statements regarding group health insurance is true, EXCEPT :

an individual policy is given to each member

An insurer is NOT required to provide information on fraudulent claims if requested by

an insured

Any changes made on an insurance application requires the initials of whom ?

applicant

Which of the following is a requirement to attain a nonresident producer license in Indiana?

be licensed as a producer in the producer's state of domicile

Variable Whole Life Insurance can be described as:

both an insurance and securities product

Dividends paid from a life insurance policy are

issued by the insurer

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T ?

conditional receipt

The incontestable clause allows an insurer to:

contest a claim during the contestable period

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability ?

conversion

Jill is covered under two Group Health policies, one through her employer and one through her husband's employer. If Jill suffers a loss , which policy provision dictates the primary coverage ?

coordination of benefit

Consumers who purchase Health insurance through a Marketplace/Exchange:

do not have their health history taken into account

S takes out a health insurance policy which contains a provision that states that the producer does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this ?

entire contract

D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with ?

extended term

An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be issued with a(n) :

extra premium

The reason for a business having a Business Overhead Expense Disability Plan is to cover :

fixed business expenses

All of these are powers of the Commissioner EXCEPT:

incarcerate a producer

When must insurable interest exist for a life insurance contract to be valid?

inception of the contract

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have:

insurable interest in the proposed insured

During the course of an insurance business transaction, who does the producer legally represent?

insurance company

Who makes the legally enforceable promises in a unilateral insurance policy?

insurance company

The underwriting process involves all of these , EXCEPT for:

policy loan

XYZ Corp was issued a group Health policy for its employees. Under this plan a:

policy must be issued to XYZ, and a certificate must be issued to each employee

With Optionally Renewable Health policies , the insurer may :

review the policy annually and determine whether or not to renew it

Which of the following is NOT a required provision in group life policies?

right to loan

Post-tax dollar contributions are found in:

roth IRA investments

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?

subrogation

When a life insurance application is completed, a Policy Summary must be given to the applicant. The Policy Summary MUST include

the premium cost for basic coverage applied for

Which of the following is a requirement to attain a nonresident producer license in Indiana?

the producer's state of residence must have reciprocity with indiana

A Business Disability Buyout plan policy is designed:

to pay benefits to the Corporation or other shareholders

A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is referred to as a(n)_______rate loan .

variable

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds ?

variable

A life policy with a death benefit and cash value that can fluctuate according to the performance of its underlying investment portfolio is referred to as:

variable life

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

waiver of Premium

An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

loss of eyesight due to an accidental injury

Life insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event" under these riders?

medical condition resulting in a significantly - shortened lifespan

If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses ?

medicare supplement

Which of the following BEST describes how a Preferred Provider Organization (PPO) is less restrictive than a Health Maintenance Organization (HMO)?

more physicians to choose from

What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value?

notice regarding replacement

All of these statements concerning Settlement Options are true, EXCEPT:

only the beneficiary may select