Exam 6 corrections
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
According to OBRA, what is the minimum number of employees required to constitute a large group?
100
The term "illustration" in a life insurance policy refers to
a presentation of non guaranteed elements of a policy
All of the following are correct about the required provisions of a health insurance policy EXCEPT
a reinstated policy provides immediate coverage for an illness
Which of the following conditions would a disability income policy most likely NOT require in order to qualify for benefits?
a specified income status prior to the disability
Which of the following authorities is authorized to issue a temporary insurance producer's license?
commissioner
An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial 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
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
guaranteed insurability rider
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 statements are true of a Combination Dental Plan EXCEPT
it is also known as the superimposed plan
All of the following are licensing requirements for a business entity, EXCEPT
having all employees complete continuing education courses once every 2 years
When would a misrepresentation on the insurance application be considered fraud?
if it is intentional and material
In a group health policy, a probationary period is intended for people who
join the group after the effective date
An individual's tendency to be dishonest would be indicative of a
moral hazard
All of the following are considered to be supplemental benefits under an HMO plan EXCEPT
preventive services
A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?
the full death benefit
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
When is the earliest a policy may go into effect?
when the application is signed and a check is given to the agent
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
Once a viatical contract has been established, how long does the viator have to rescind the contract?
15 calendar days
How often must the Commissioner examine rating organizations?
5 years
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
