EXAM #7 updated
Level Term Life policy
Death benefit remains constant
Group conversion option is allowed for all except
During annual benefits period
The group conversion option is allowed for all of the following EXCEPT
During the annual benefits enrollment period
probationary period
During which period of a Disability Income Policy is coverage effective but during which no benefits will be paid under the policy?
Are subject to vesting requirements
Employer contributions made to a qualified plan
What Specific new procedures does the USA Patriot Act require of insurance companies
Establish an anti money laundering program
What specific new procedures does the USA Patriot Act require of insurance companies?
Establish an anti-money laundering program
Insurers must allow individual life insurance customers the ability to return their new policy within 10-30 days (this time period is up to the insurer) for a full refund.
Every individual life insurance policy must provide for a free-look provision that lasts for at least
12 weeks of no work within one year
FMLA Child Birth
Decreasing term life policy fact
Face amount reaches zero at policy expiration
Obtaining consumer information reports under false pretense is prosecutable by which of the following?
Fair Credit Reporting Act
Obtaining consumer information reports under false pretenses is prosecutable by which of the following?
Fair Credit Reporting Act
obtaining consumer information reports under false pretenses is prosecutable by
Fair Credit Reporting Act
In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses?
Flexible Spending Account (FSA)
age
Fo an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?
Age
For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?
age
For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?
6 months
For how long is an insurance company allowed to defer policy loan requests?
Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms of costs?
Free look
Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms or costs?
Free look
the employer under business expenses
Group AD&D policies may be deducted by whom and under which deduction category?
Which option enables the insured to purchase additional disability income protection at specified future dates at the applicable premium rate at the attained age at the time of future purchase?
Guaranteed insurability
Trained and registered volunteers. Service is free
HICAP counselors are primarily
Which plan is most commonly paired with a High Deductible Health Plan?
Health Savings account (HSA)
In favor of the insured because the insurance company drafts the language in the contract.
How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion?
to purchase insurance on a family member of the originally insured
How are term riders used
add coverage
How are term riders used?
It must be handled as a new claim for a new period of disability, requiring a new elimination period.
How do most disability policies handle the case of a recurrent disability occurring at least 90 days after the first claim?
A warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.
How do warranties differ from representations?
a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.
How do warranties differ from representations?
The proceeds are divided equally among living primary beneficiaries.
How does the per capita rule apply to proceeds from a life insurance policy?
2 years
How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?
purchasing family term insurance
How might someone cover the extra expenses of child care and home-related costs?
The premiums paid by the company as a business expense
If a company provides group disability insurance to its employees, which of the following may be tax-deductible?
Securities (Investment License)
If an agent wishes to sell variable life polices, what license must the agent obtain?
the treatment procedures that are covered by the policy.
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT
the treatment procedures that are covered by the policy.
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT:
Dread disease policy covers
Illness that do not occur frequently but incur significant costs when they do.
The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount.
In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?
the individuals policy pays first then the spouses pays the remaining
In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?
Death Benefit
In a level term life policy, which ALWAYS remains constant?
What is the waiver of premium provision?
In a long term care contract, the premium is waived after the insured has been confined for a specific period of time.
How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion?
In favor of the insured because the insurance company drafts the language in the contract
1
In noncontributory plans, which percentage of eligible members must participate?
The premium increase must be in the contract at the time it is issued.
In order for an insurer to increase the premium on a non-cancelable policy, which of the following MUST be true?
Seven-pay test
In order to AVOID being classified as an MEC, a policy must pass which of the following?
seven-pay test
In order to AVOID being classified as an MEC, a policy must pass which of the following?
seven-pay test
In order to avoid being classified as an MEC, a policy must pass which of the following
Executive is the owner, and the executive pays the premium
In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?
Key person disability income insurance
In which of the following cases are premiums paid by a business NOT tax deductible as a business expense?
key person disability income insurance
In which of the following cases are premiums paid by a business NOT tax deductible as a business expense?
Recording Methods
In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?
recording method
In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?
Unilateral
In which of the following types of contracts is only one party is legally required to do something after the insured has completed the act of paying the premium?
Which is a primary difference between individual and group health insurance?
Individual insurance requires evidence of insurability
Proof of Loss Fact
Insured has 90 days from date of loss to provide proof of loss
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
Insured original issue age is used
What does it mean if a health policy is conditionally renewable?
Insurer may elect NOT to renew only under conditions specified in the policy
Which part of an insurance contract contains the promise to pay loses covered big the policy in exchange for the insured's premium and compliance with policy terms?
Insuring clause
Assumption Whole life policies are sensitive to
Interest Rates
Adjustable life policy
Interest rate is not adjustable
Current assumption whole life policies are sensitive to which of the following?
Interest rates
Which of the following is TRUE of an equity indexed annuity
It has a guaranteed minimum interest rate
Which of the following is TRUE of an equity-indexed annuity?
It has a guaranteed minimum interest rate
Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?
It is financially insufficient to cover end of life expenses.
Why is the accidental death benefit referred to as double indemnity?
It provides twice the face value in the policy for death due to accident
Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?
Joint life annuity
Impairment Rider
Lists specific conditions in contract that are excluded.
In which type of insurance is individually purchased coverage commonly more economical than group offered coverage?
Long term care insurance
Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?
Long-Term Care Rider
Increasing beneficiary cost sharing, controlling inpatient admissions and length of stay, selectively contracting with health care providers
Managed care plans increase efficiency by
transferring the management of costs to the insureds.
Managed care plans increase efficiency by all of the following means EXCEPT
What is a MIB report?
Medical information on an applicant for assessing life or health insurance risk
Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT
Medicare
Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT?
Medicare
Which of the following refers to how often a premium is paid?
Mode
Which of the following was specifically designed to address STOLI and IOLI practices
NCOIL Act
Which of the following was specifically designed to address STOLI and IOLI practices?
NCOIL Act
All of the following are classifications of risk EXCEPT
Non-nicotine
Short term disability insurance generally only covers injuries due to which of the following?
Non-occupational injuries
Fair Credit Reporting Act
Obtaining consumer information reports under false pretenses is prosecutable by which of the following
Fair Credit Reporting Act
Obtaining consumer information reports under false pretenses is prosecutable by which of the following?
Which is the difference between participating and non-participating policies?
Participating policies pay dividends while non-participating policies do not.
How might someone cover the extra expenses of child care and home-related costs?
Purchasing family term insurance
In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?
Recording method
Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age?
Renewable term
replacing an existing policy with a new one
Replacement refers to which of the following?
All life insurance and health insurance contracts contain all of the following EXCEPT?
Representations
Which of the following is true for most comprehensive dental policies?
Routine care is provided without coinsurance or deductibles
All of the following are tax qualifies retirement plans EXCEPT
Section 529 plan
Acceptance
Self-insurance is an example of which method of handling risk?
Non-occupational injuries
Short term disability insurance generally only covers injuries due to which of the following?
Determines whether a person passes a financial test to qualify for medicaid
State Law
Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses?
Stop Loss Limit
Which of the following is defined as the dollar amount beyond which the insured no longer participated in payment of medical expenses?
Stop loss limit
What is the order in which beneficiaries receive proceeds from a life insurance policy?
Succession of beneficiaries
Survivorship life insurance insures two people and only pays out the death benefit after both have passed away. It's often purchased by a couple as a means of leaving money to their children, estate planning, leaving a sizeable legacy, or funding a support system for a dependent who may require lifetime care. Survivorship life insurance can also be called: Joint survivorship life insurance Second-to-die life insurance
Survivorship life insurance is a type of joint life insurance
All of the following are ownership rights EXCEPT?
Switching the policy from one insured to another
Which of the following amends the Social Security Act to make Medicare secondary to group health plans?
TEFRA
Which of the following amends the social security to make a medicare secondary to group health plans
TEFRA
Foreign Insurer
The ZYX insurance company is incorporated in Alabama. While doing business in Texas, it is a(n)
Alien Insurer
The ZYX insurance company is incorporated in Mexico. While doing business Texas, it is a(n)
What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?
The applicant and possibly the agent initial any changes made.
All of the following are features of the spendthrift clause EXCEPT?
The beneficiary may encumber the proceeds
When the courts look at a contract to determine the intent of the parties which of the following is considered?
The entire contract
Which of the following is true about a decreasing term life policy?
The face amount reaches zero at policy expiration
All of the above:-Counseling and advocacy to assist individuals with long-term care planning and insurance policies, billing, or claims.-Information through community forums about the myths and realities of Medicare and private health insurance.-Legal representation and advice when necessary and appropriate.
The goals of HICAP are to provide
during the annual benefits enrollment period.
The group conversion option is allowed for all of the following EXCEPT
All of the following are TRUE regarding incomplete applications EXCEPT
The incomplete application can be accepted with the missing information added later
In a case where an individuals health is insured by both their own policy and their spouses policy, which policy pays in the event of an illness?
The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount
Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed?
The insured has 90 days from the date of loss to provide proof of loss
The policy is delivered to the applicant, the first premium is collected, the statement of good health is obtained by the insurer
The life insurance policy will not be truly effective until all of the following
the agent has explained the policy to the client
The life insurance policy will not be truly effective until all of the following occur EXCEPT
Which of the following represents an advantage of obtaining a policy loan versus a withdrawal?
The loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis
All of the following are required signatures on a life insurance application EXCEPT?
The minor in a juvenile policy
What is the purpose of Stranger-originated life insurance (STOLI)?
The policy is originated primarily or solely for the purpose resale
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?
The policy owner has named an irrevocable beneficiary
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?
The policyowner has named an irrevocable beneficiary
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved tot he policyowner UNLESS which of the following is true?
The policyowner has named an irrevocable beneficiary
In order for an insurer to increase the premium on a noncancellable policy which of the following must be true
The premium increase must be in the contract at the time it is issued
A profitable distribution of exposures
The protection of the insurer from adverse selection is provided in part by
Which of the following is TRUE for a flexible premium annuity?
The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount
The policyowner has named an irrevocable beneficiary.
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?
Insured
The term used to describe the individual who is covered by the insurance is
The insured's beneficiaries
The title page of the policy provides a summary of the benefits and coverages provided by the policy. All of the following is included in the title page EXCEPT
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT
The treatment
Which of the following occurs immediately after the application is submitted and the initial premium paid?
The underwriting process begins
All of the following are characteristics of variable whole life EXCEPT
There is no guaranteed minimum death benefit.
Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?
They are MORE likely to receive a loan based on the expectations of proceeds.
Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?
They are MORE likely to receive a loan based on the expectations of the proceeds
Which is the primary purpose of Health Reimbursement Accounts (HRAs)
To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions
Which is the primary purpose of Health Reimbursement Accounts (HRAs)?
To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.
SEC Registration
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
Whole life insurance
To which of the following products does the replacement regulation apply?
Long term care rider
Type of rider reimburses health and social service expenses incurred in convalescent or nursing home
benefits are adjusted to an amount that the premium would have purchased at the correct age or gender
Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender
Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
benefits are adjusted to an amount that the premium would have purchased at the correct age or gender
Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
When a third-party applicant names themselves beneficiary.
Under which situation must insurable interest exist between the applicant and insured at the time of application?
25
Until What age can you remain on parents health insurance policy?
45 days
Upon the issuance of a conditional receipt for a renewal when the premium is paid AFTER the time granted by the insurer, what is the maximum amount of time for reinstatement of policy?
Type of annuity that attempts to offset inflation by providing a benefit linked to an underlying investment account.
Variable Annuity
Which of the following lists the three common types of permanent individual life insurance?
Variable Life, Whole Life, Universal Life
3 common types permanent individual life insurance
Variable life, whole life, universal life
Which of the following lists the three common types of permanent individual life insurance
Variable life, whole life, universal life
62
What age can you collect social security?
Containing costs and early treatment
What are two characteristics of Health Maintenance Organizations (HMOs)?
The insurer and the insured share expenses over the deductible.
What does coinsurance mean?
Insurer may elect NOT to renew only under conditions specified in the policy.
What does it mean if a health policy is conditionally renewable?
Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date.
What does it mean if a health policy is optionally renewable?
Coverage ends and the policy cannot be reinstated
What happens when a policy is surrendered for cash value?
medical information on an applicant for assessing life or health insurance risk
What is MIB Report
Medical insurance for 65 and older, people under 65 with disabilities, people with end stage renal disease. When you're eligible, you can enroll in Medicare Parts A and B - also known as Original Medicare - through the Social Security Administration. If you are already receiving Social Security or Railroad Retirement Board benefits you'll automatically be enrolled.
What is Medicare
Medical information on an applicant for assessing life or health insurance risk
What is a MIB report?
It lists specific conditions in the contract that are excluded from the contract
What is an impairment rider?
Insurance coverage if premiums are paid
What is granted to the insured in the consideration clause?
Multiple indemnity
What is it called when a life insurance policy pays a multiple of the coverage amount when certain types of accidents occur?
Key person insurance is a type of life insurance policy that provides a death benefit to a business if its owner or another significant employee passes away, according to the Insurance Information Institute (III).
What is key person insurance?
A copayment is a set dollar amount, while coinsurance is set as a percentage.
What is the difference between copayment and coinsurance?
Buyers often think they are getting broader coverage than they actually purchase.
What is the major reason that insurance regulators are often critical of dread disease insurance policies?
3 Years
What is the maximum amount of time the insured has to file legal action against the insurer after written proof of loss is provided
succession of beneficiaries
What is the order in which beneficiaries receive proceeds from a life insurance policy?
Insured original issue age is used
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
insured original issue age is used
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
the policy is originated primarily or solely for the purpose of resale
What is the purpose of Stranger-originated life insurance (STOLI)?
In a long term care contract, the premium is waived after the insured has been confined for a specific period of time.
What is the waiver of premium provision?
You'll usually pay 20% of the cost for each Medicare-covered service or item after you've paid your deductible. Medicare pays 80%
What percentage of medical bills Does Medicare pay?
The applicant and possibly the agent initial any changes made.
What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?
Establish an anti-money laundering program
What specific new procedures does the USA Patriot Act require of insurance companies?
key person insurance
What type of insurance should a company purchase if it wants to insure the life of its CEO?
Spendthrift Provision
When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?
A detailed and comprehensive summary of the accelerated benefit
When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing the applicant a summary of coverage that includes all of the following EXCEPT:
Under which situation must insurable interest exist between the applicant and insured at the time of application?
When a third-party applicant names themselves beneficiary
It becomes inactive
When an agent doesn't hold any active appointments, what happens to the agent's license
Transfer
When an individual purchases insurance, what risk management technique is he or she practicing?
When the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year
When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?
when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year
When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?
when the applicant for the policy is not the insured
When does insurable interest come into play in a life insurance policy?
At all times.
When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner?
When there is a buy-sell agreement funded with life insurance to buyout the interest of a deceased owner or partner.
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability?
Entire Contract
When the courts look at a contract to determine the intent of the parties which of the following is considered?
The entire contract
When the courts look at a contract to determine the intent of the parties which of the following is considered?
2 year period
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability?
When there is a buy-sell agreement funded with disability insurance to buyout the interest of a deceased owner or partner
When should a buy-sell agreement include a provision for the buy-out of an owners business interest in event of a disability
When there is a buy-sell agreement funded with life insurance to buy-out the interest of a deceased owner or partner
When would dependent children's benefits for Social Security disability payments be scaled back?
When they cause the family benefit to exceed the maximum benefit amount
When particular benefits are not listed on a payment schedule
When will a policy pay on a UCR basis?
when the payments aren't listed on a scheduled basis
When will a policy pay on a UCR basis?
Joint and survivorship option
Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant?s death the same or a lesser amount paid for the lifetime of the survivor?
Joint option
Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant?s death the same or a lesser amount paid for the lifetime of the survivor?
Establishing a trust to administer proceeds
Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy?
establishing a trust to administer proceeds
Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy?
Participating policies pay dividends while non-participating policies do not
Which is the difference between participating and non-participating policies?
Participating policies pay dividends while non-participating policies do not.
Which is the difference between participating and non-participating policies?
To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.
Which is the primary purpose of Health Reimbursement Accounts (HRAs)?
TEFRA
Which of the following amends the Social Security Act to make Medicare secondary to group health plans?
The insurer's financial rating
Which of the following does NOT need to be identified in an insurance policy?
To minimize the insured's level of liability in the event of loss
Which of the following is NOT a goal of risk retention?
Beneficiaries are not identified by name?
Which of the following is TRUE about class designation?
The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount
Which of the following is TRUE for a flexible premium annuity?
The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.
Which of the following is TRUE for a flexible premium annuity?
The corporation is the applicant and policy holder. The employee is the insured.
Which of the following is TRUE in a key employee life insurance policy?
A patients care is coordinated by an in-network primary care physician
Which of the following is TRUE of a point of service plan?
It has a guaranteed minimum interest rate.
Which of the following is TRUE of an equity-indexed annuity?
Coverage continues after the policy is paid-up.
Which of the following is TRUE of the limited pay whole life policy?
They are MORE likely to receive a loan based on the exceptions of the proceeds
Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?
They are MORE likely to receive a loan based on the expectations of the proceeds.
Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?
Variable whole life has a guaranteed death benefit
Which of the following is a key distinction between variable whole life and variable universal life products?
annual premium payment
Which of the following is an example of a premium payment mode?
plan does not meet federal guidelines for tax benefits
Which of the following is characteristic of a non-qualified plan?
Plan does not meet federal guidelines for tax benefits
Which of the following is characteristic of a nonqualified plan?
plan does not meet federal guidelines for tax benefits
Which of the following is characteristic of a nonqualified plan?
It begins with little or no insurance protection.
Which of the following is common in an increasing term life policy?
Stop Loss Limit
Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses?
fraudulent misstatements
Which of the following is exempted from the incontestability provision in insurance policies?
Coverage offered by private insurers
Which of the following is the most common method to supplement Medicare coverage?
2 years
Which of the following is the time limit on certain defenses after which the policy becomes incontestable?
Creditor is the policyowner
Which of the following is true about credit life insurance?
All unearned premiums must be returned to the insured
Which of the following is true of a cancelable policy?
All unearned premiums must be returned to the insured.
Which of the following is true of a cancelable policy?
Variable Life, Whole Life, Universal Life
Which of the following lists the three common types of permanent individual life insurance?
notice of claim
Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible?
The underwriting process begins
Which of the following occurs immediately after the application is submitted and the initial premium paid?
the underwriting process begins
Which of the following occurs immediately after the application is submitted and the initial premium paid?
Automatic premium loan
Which of the following policy loans is a provision in which an amount equal to the premium due is subtracted from the cash value to pay the premium and prevent a lapse of the policy.
payor clause
Which of the following provides for the continuance of life insurance coverage on a juvenile in the event of the death or total disability of the individual responsible for the payment of the premiums?
Mode
Which of the following refers to how often a premium is paid?
mode
Which of the following refers to how often a premium is paid?
It transfers rights of ownership from the owner to another person
Which of the following statements is true about a policy assignment?
Convertible
Which of the following term insurance types provides temporary protection that can be changed to some type of permanent protection without evidence of insurability?
convertible
Which of the following term insurance types provides temporary protection that can be changed to some type of permanent protection without evidence of insurability?
Decreasing Term
Which of the following types of insurance policies is most commonly used in credit life insurance?
NCOIL Act
Which of the following was specifically designed to address STOLI and IOLI practices?
hospitalization insurance
Which of the following, by definition, provides benefits for expenses incurred as a result of in-hospital medical treatment and surgery as well as certain outpatient expenses such as doctor's visits, laboratory tests, and diagnostic services?
any exclusions
Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?
the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis
Which one of the following represents an advantage of obtaining a policy loan vesus a withdrawal?
Guaranteed insurability
Which option enables the insured to purchase additional disability income protection at specified future dates at the applicable premium rate at the attained age at the time of future purchase?
Insuring clause
Which part of an insurance contract contains promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms?
insuring clause
Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms?
Health Savings Account (HSA)
Which plan is most commonly paired with a High Deductible Health Plan?
Health savings account (HSA)
Which plan is most commonly paired with a High Deductible Health Plan?
Free Look
Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms or costs?
Free Look
Which policy provision permits the policy-owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy-owner rejects the terms or costs?
Free look
Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs?
Variable Universal Life
Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?
variable universal life
Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?
variable
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?
Joint life annuity
Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?
permanent
Which type of assignment occurs when a person transfers ownership of a life insurance policy to another person, such as a son when turning 18?
Business overhead expense disability insurance
Which type of coverage pays the operating costs of a small business when the owner becomes disabled?
binding receipt
Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?
long term care rider
Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?
Continuous Premium
Which whole life policy premium type is the most common?
continuous premium
Which whole life policy premium type is the most common?
The producer
Who's responsibility is it to make certain that an application is filled out completely and correctly?
the producer
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)?
Certain conditions need to be met to make the contract legally enforceable.
Why are insurance policies considered conditional contracts?
for increased amount protection
Why do equity-indexed life insurance policies have an increased premium?
It is financially insufficient to cover end of life expenses.
Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?
It provides twice the face value in the policy for death due to accident.
Why is the accidental death benefit referred to as double indemnity?
How does a noncancelable policy differ from a guaranteed renewable policy?
With the noncanceable policy the insurer may increase premiums only based on the terms of the policy
When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing the applicant a summary of coverage that includes all of the following EXCEPT
a detailed and comprehensive summary of the accelerated benefit
Stop-loss limit
a dollar amount beyond which the insured no longer participates in payment of medical expenses
A group conversion option may be used in all the following instances EXCEPT
a life changing event such as marriage, divorce, or childbirth
A group conversion option may be used in all the following instances EXCEPT
a life-changing event, such as marriage, divorce, or childbirth
Which of the following is TRUE of a point of service plan
a patients care is coordinated by an in network primary care physician
which of the following is true of a point of service plan
a patients care is coordinated by an in network primary care physician
Insurance
a social device for spreading the chance of financial loss amount a large number of people
How do warranties differ from representations?
a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge
How do warranties differ from representations
a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.
How do warranties differ from representations?
a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.
Which of the following policy types is considered double indemnity?
accidental death
disadvantage of flexible premium annuity
actual amount of annuity benefit cannot be determined in advance
For an individual long term care policy there is an annual dollar limit for tax deductions that is based on which of the following?
age
For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?
age
for an individual long term care policy there is an annual dollar limit for tax deductions that is based on which of the following
age
Which of the following is true of a cancelable policy
all unearned premiums must be returned to the insured
TEFRA
amends the Social Security Act to make Medicare secondary to group health plans
What is the return of premium rider
an increasing amount of term insurance that always equals the total of premiums paid up to the current point
What does the grace period protect the policy holder from?
an unintentional lapse of the policy
What does the grace period protect the policyholder from
an unintentional lapse of the policy
Which of the following is an example of premium payment mode
annual premium payment
All of the following statements define preexisting conditions EXCEPT
any chronic health condition that presents symptoms and which was unknown at the time of application
Which of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy
any exclusions
Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?
any exclusions
which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy
any exclusions
Which is the major reason why long term care insurance is becoming increasingly important
as life expectancy increases, the chances of needing long term care also increases
What does first dollar coverage mean
as soon as medical expenses are incurred, the policy begins to pay
Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
benefits are adjusted to an amount that the premium would have purchased at the correct age or gender
Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?
binding receipt
which type of receipt makes the insurer liable for the risk from the date of application regardless of the applicants insurability
binding receipt
In a home healthcare benefit all of the following are eligible expenses except
blood transfusions
In a home healthcare benefit, all of the following are eligible expenses EXCEPT
blood transfusions
Which type of coverage pays the operating costs of a small business when the owner becomes disabled
business overhead expense disability insurance
What is the major reason that insurance regulators are often critical of dread disease insurance policies
buyers often think they are getting broader coverage than they actually purchase
renewable term
can be continued year after year without medical examination but raters are dependent on insureds current age.
All of the following are nonforfeiture options EXCEPT
cash dividend option
Insurance policies are considered conditional contracts because
certain conditions need to be met to make the contract legally enforceable
Why are insurance policies considered conditional contracts?
certain conditions need to be met to make the contract legally enforceable
All of the following are characteristics of COBRA EXCEPT
change in medical privacy procedures
All of the following are characteristics of COBRA except
change in medical privacy procedures
all of the following are common exclusions from loss found in disability income policies except for that incurred while
commiting a misdeanor
All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while
committing a misdemeanor
an insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary
common disaster clause
accidental death
considered double indemnity
Which whole life policy premium type is the most common?
continuous premium
Which of the following is TRUE of the limited pay whole life policy
coverage continues after the policy is paid up
Which of the following is true of t limited pay whole life policy
coverage continues after the policy is paid up
most common method to supplement medicare coverage
coverage offered by private insurers
Business overhead expense disability insurance
coverage pays for operating costs of small business when owner becomes disabled
In a level term life policy, which ALWAYS remains constant?
death benefit
NCOIL Act
designed to address STOL and LOLI practices
Which of the following coverage types pay a monthly cash benefit following the elimination period for total disability due to accident or sickness
disability income insurance
Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness
disability income insurance
Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness?
disability income insurance
The group conversion option is allowed for all of the following except
during the annual benefits enrollment period
the group conversion option is allowed for all the following except
during the annual benefits enrollment period
Which of the following may be though of as a time deductible rather than a dollar deductible in a disability income policy because benefits are not payable during that time
elimination period
difference between elimination period and probationary period
elimination period is how long you must wait to receive benefits while probationary period is period of time you are unable to file a claim.
What specific new procedures does the USA Patriot Act require of insurance companies
establish an anti money laundering program
which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy
establishing a trust to administer proceeds
Common approach to addressing problems inherent in naming a minor as a beneficiary of life policy
establishing a trust to administer proceeds.
The application of the law of large number enables actuaries to
estimate the future losses of a class or group of people
obtaining consmer information reports undr false pretenses is prosecutable by which of the following
fair credit reporting act
In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses
flexible spending account (fsa)
According to the Time Payment of Claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT
for claims involving periodic payments
According to the time of payment claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT
for claims involving periodic payments
According to the time of payment of claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT
for claims involving periodic payments
Which of the following is exempted from the incontestability provision in insurance policies
fraudulent misstatements
exempted from incontestability provision in insurance policies
fraudulent misstatements
which of the following is exempted from the incontestability provision in insurance policies
fraudulent misstatements
Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs
free look
which policy provision permits the policyowner to take a specified number of days to examine the contract and allows for cancellation and a full refund if the policyowner rejects the terms or costs
free look
equity- index annuity
guaranteed minimum interest rate
Which of the following by definition provides benefits for expenses incurred as a result of in hospital medical treatment and surgery as well as certain outpatient expenses such as doctors visits, lab test and diagnostic services
hospitalization insurance
Which of the following, by definition, provides benefits for expenses incurred as a result of in hospital medical treatment and surgery as well as certain outpatient expenses such as doctor's visits, laboratory test, and diagnostic services?
hospitalization insurance
Which of the following is covered by a dread disease policy
illnesses that do not occur frequently but incur significant costs when they do occur
Which of the following is covered by a dread disease policy?
illnesses that do not occur frequently but incur significant costs when they do occur
death benefit
in a level term life policy, which ALWAYS remains constant?
What is the waiver of premium provision
in a long term care contract the premium is waived after the insured has been confined for a specific period of time
Issues of ambiguity usually resolved
in favor of insured because insurance company drafts the language in the contract
How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion?
in favor of the insured because the insurance company drafts the language in the contract
return of premium rider
increasing amount of term insurance that always equals total of premiums paid up to the current point
Which is the primary difference between individual and group health insurance
individual insurance requires evidence of insurability
Granted to insured in consideration clause
insurance coverage if premiums are paid
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one
insured original issue age is used
what happens when lifetime maximum benefit limit has been reached
insured will pay all of remaining medical costs for as long as policy is in force.
what does it mean if a health policy is optionally renewable
insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date
conditionally renewable policy
insurer may elect NOT to renew only under conditions specified in the policy
which party of the insurance contract contains the promise to pay losses covered by the policy in exchange for the insureds premium and compliance with policy terms
insuring clause
Current assumption whole life policies are sensitive to which of the following
interest rates
Current assumption whole life policies are sensitive to which of the following?
interest rates
Which of the following is common in an increasing term life policy
it begins with little or no insurance protection
Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?
it is financially insufficient to cover end of life expenses
What is an impairment rider
it lists specific conditions in the contract that are excluded from the contract
What is an impairment rider?
it lists specific conditions in the contract that are excluded from the contract
How do most disability policies handle the case of a recurrent disability occuring at least 90 days after the first claim
it must be handled as a new claim for a new period of disability, requiring a new elimination period
How do most disability policies handle the case of a recurrent disability occurring at least 90 days after the first claim?
it must be handled as a new claim for a new period of disability, requiring a new elimination period
Why is the accidental death benefit referred to as double indemnity
it provides twice the face value in the policy for death due to accident
Why is rehabilitation considered worthy of federal help under workers' compensation?
it reduces insurance losses and helps regain the worker's dignity
Why is rehabilitation considered worthy of federal help under workers compensation
it reduces insurance losses and helps regain the workers diginity
Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant's death the same or a lesser amount paid for the lifetime of the survivor?
joint and survivorship option
Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies
joint life annuity
In which of the following cases are premiums paid by a business NOT tax deductible as a business expense
key person disability income insurance
In which of the following cases are premiums paid by a business NOT tax deductible as a business expense?
key person disability income insurance
What type of insurance should a company purchase if it wants to insure the life of its CEO
key person insurance
What type of insurance should a company purchase if it wants to insure the life of its CEO?
key person insurance
what type of insurance should a company purchase if wants to insure the life of its ceo
key person insurance
group conversion option can not be used for
life changing event such as marriage divorce, or childbirth
advantage of obtaining a policy loan versus a withdrawal
loan is not taxed while withdrawn is taxed for amounts above contract cost basis .
waiver of premium provision
long term care contract premium is waved after insured has been confined for specific period of time
In which type of insurance is individually purchased coverage commonly more economical than group offered coverage
long term care insurance
Which problem was universal life insurance designed to address
low interest rates during periods of high inflation
Which problem was universal life insurance designed to address?
low interest rates during periods of high inflation
Compared to basic hospital, medical an surgical policies, which type of insurance provides a broader coverage, fewer gaps, higher individual benefits, and a higher policy maximums
major medical insurance
Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?
major medical insurance
What is a MIB report
medical information on an applicant for assessing life or health insurance risk
What is a MIB report?
medical information on an applicant for assessing life or health insurance risk
what is the MIB report
medical information on an applicant for assessing life or health insurance risk
MIB Report
medical information on applicant for life or health insurance risk.
A consumer report used to determine eligibility for insurance may include all of the following EXCEPT
medical underwriting exam
Consumers report used to determine eligibility will not include
medical underwriting exam
Which of the following refers to how often the premium is paid
mode
which of the following refers to how often a premium is paid
mode
Assignment rights for irrevocable beneficiaries
more likely to receive a loan based on expectations of proceeds
variable whole life
no guaranteed minimum death benefit
all of the following are classifications of risk except
non nicotine
Short term disability insurance generally only covers injuries due to which of the following
non occupational injuries
All of the following are classification of risk EXCEPT
non-nicotine
All of the following are classifications of risk EXCEPT
non-nicotine
Short term disability insurance generally only covers injuries due to which of the following?
non-occupational injuries
non-nicotine.
not a classifications of risk
Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as reasonably possible
notice of claim
unilateral
only having one party legally required to do something after insured pays the premium.
purpose of stranger-originated life insurance (STOLI)
originated primarily or solely for purpose of resale
Health savings account
paired with high deductible plan
Avoid being classified as MEC
pass Seven-pay test
Hospital Indemnity plan
pays a fixed amount per day to the insured for each day insured is hospitalized.
probationary period
period of disability income policy is coverage effective but during which no benefits will be paid under the policy
Which type of assignment occurs when a person transfers ownership of a life insurance policy to another person, such as a son when turning 18?
permanent
Which of the following is a characteristic of a nonqualified plan
plan does not meet federal guidelines for tax benefits
Which of the following is characteristic of a nonqualified plan
plan does not meet federal guidelines for tax benefits
Which of the following is characteristic of a nonqualified plan?
plan does not meet federal guidelines for tax benefits
Which of the following is characteristic of a non-qualified plan?
plan does not meet the federal guidelines for tax benefits
Which of the following is considered the major advantage of HIPAA?
portability
considered a major advantage of HIPPA
portability
which of the following is considered the major advantage of HIPAA
portability
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)
prearranged costs for services rendered
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?
prearranged costs for services rendered
key person disability income insurance
premiums are paid by business not tax deductible as business expense
During which period of a disability income policy is coverage effective but during which no benefits will be paid under the policy
probationary period
Per capita rule for life insurance policy
proceeds are divided equally among living primary beneficiaries.
insuring clause
promises to pay losses covered by policy in exchange for insureds premium and policy terms
Payor clause
provides continuance insurance coverage on a juvenile in event of death or total disability of person making premiums.
Joint and survivorship option
provides monthly amount to annuitant and upon the annuitants death the same or lesser amount paid for lifetime of survivor
convertible
provides temporary protection that can be changed to permanent protection without evidence of insurability.
accidental death benefit
provides twice the face value in the policy for death due to accident
Automatic premium loan
provision in which amount equal to the premium due is subtracted from cash value to pay premium
In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?
recording method
in which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records
recording method
Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current
renewable term
Replacement refers to which of the following?
replacing an existing policy with a new one
all life insurance and health insurance contracts contain all of the following except
representaitons
Some states require life insurance policies to include a provision that gives the insurer the right, at its own expense, to do which of the following
require an autopsy
Some states require life insurance policies to include a provision that gives the insurer the right, at its own expenses, to do which of the following?
require an autopsy
Comprehensive dental policies
routine care is provided without coinsurance or deductibles
A basic vision care package includes all of the following EXCEPT
safety glasses
All of the following are tax qualified retirement plans except
section 529 plan
all of the following are tax qualified retirement plans except
section 529 plan
in order to avoid being classified as an mec, a policy must pass which of the following
seven pay test
In order to AVOID being classified as an MEC, a policy must pass which of the following?
seven-pay test
Which of the following determines whether a person passes the financial test to qualify for Medicaid?
state law
Which of the following determines whether a person passes the financial test to qualify for medicaid
state law
Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses
stop loss limit
What is it called when an insurance company tries to recover from a different insurance policy all or part of its losses resulting from a claim
subrogation
what is the order in which beneficiaries receive proceeds from a life insurance policy
succession of beneficiaries
what is the order in which the beneficiaries receive proceeds from a life insurance policy
succssion of beneficiaries
ownership rights except
switching policy from one insured to another
All of the following are ownership rights EXCEPT
switching the policy from one insured to another
All of the following are ownership rights except
switching the policy from one insured to another
Insurer
term used to denote insurance companies
Which is a disadvantage to a flexible premium annuity
the actual amount of the annuity benefit cannot be determined in advance
Life insurance policy will not be truly effective until all occur EXCEPT
the agent has explained policy to client
The life insurance policy will not be truly effective until all of the following occur EXCEPT
the agent has explained the policy to the client
What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent to not recall the changed that were made in a completed application
the applicant and possibly the agent initial any changes made
what procedure is used by an insurer to protect itself in the event a dispute arises an the applicant and the agent do not recall the changes that were made in a completed application
the applicant and possibly the agent initial any changes made
All of the following are features of the spendthrift clause EXCEPT
the beneficiary may encumber the proceeds
All of the following are features of the spendthrift clause except
the beneficiary may encumber the proceeds
All of the following are features of the spendthrift clause EXCEPT
the beneficiary must encumber the proceeds
group ad&d policies may be deducted by whom and under which deduction category
the employer under business expenses
When the courts look at a contract to determine the intent of the parties which of the following is considered
the entire contract
When the courts look at a contract to determine the intent of the parties which of the following is considered?
the entire contract
Large group
the estimation of future losses is more accurate when information is from a
Which of the following is true about a decreasing term life policy
the face amount reaches zero at policy expiration
Which of the following is true about a decreasing term life policy?
the face amount reaches zero at policy expiration
All of the following are TRUE regarding incomplete applications EXCEPT
the incomplete application can be accepted with the missing information added later
all of the following are true regarding incomplete applications except
the incomplete application can be accepted with the missing information added later
In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?
the individual's policy pays first, the spouse's policy pays the remaining up the coverage amount
In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?
the individuals policy pays first the spouses policy pays the remaining up to coverage amount
In a case where an individuals health is insured by both their own policy and their spouses policy which policy pays in the event of an illness
the individuals policy pays the first, the spouses policy pays the remaining up to coverage amount
Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed
the insured has 90 days from the date of loss to provide proof of loss
Under normal conditions which of the following is true for proof of loss when a single loss is claimed
the insured has 90 days from the date of loss to provide proof of loss
What happens with the lifetime maximum benefit limit has been reached
the insured will pay all of the remaining medical costs for as long as the policy is in force
What happens with the lifetime maximum benefit limit has been reached?
the insured will pay all of the remaining medical costs for as long as the policy is in force
All of the following are required signatures on a life insurance application EXCEPT
the minor in a juvenile policy
All of the following are required signatures on a life insurance application except
the minor in a juvenile policy
all of the following are required signature on a life insurance application except
the minor in a juvenile policy
what is the purpose of stranger originated life insurance (STOLI)
the policy is originatd primarily or solely for the purpose of resale
What is the purpose of Stranger originated life insurance (STOLI)
the policy is originated primarily or solely for the purpose of resale
What is the purpose of Stranger-originated life insurance (STOLI)?
the policy is originated primarily or solely for the purpose of resale
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true
the policyowner has named an irrevocable beneficiary
In order for an insurer to increase the premium on a non-cancelable policy, which of the following MUST be true?
the premium increase must be in the contract at the time it is issued
How does the per capita rule apply to proceeds from a life insurance policy?
the proceeds are divided equally among living primary beneficiaries
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)?
the producer
Which of the following is TRUE for a flexible premium annuity
the purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount
which of the following is true for a flexible premium annuity
the purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount
if the insurer wishes to share an applicants hiv status the applicant must be given full notice of all the following except
the treatement procedures that are covered by the policy
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT
the treatment procedures that are covered by the policy
Which of the following occurs immediately after the application is submitted and the initial premium is paid?
the underwriting process begins
Which of the following occurs immediately after the application is submitted and the initial premium paid
the underwriting process begins
which of the following occurs immediately after the application is submitted and the initial premium paid
the underwriting process begins
All of the following are characteristics of variable whole life EXCEPT
there is no guaranteed minimum death benefit
Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries
they are more likely to receive a loan based on the expectations of the proceeds
elimination period
time deductible rather a dollar deductible in disability income policy because benefits are not payable at that time.
managed care plans do not
transfer management of costs to insureds
Managed care plans increase efficiency by all of the following means EXCEPT
transferring the management of costs to the insureds
Stock
type of insurance company owned by its shareholders
Annuity
type of policy is designed to protect against the risk of living too long
All of the following are requirements to qualify for social security disability benefits except when
unable to work in occupation in which the worker has trained or educated
All of the following are requirements to qualify for Social Security disability benefits EXCEPT when
unable to work in occupation in which the worker was trained or educated
Requirements to qualify for social security disability EXCEPT
unable to work in occupation which worker was trained or educated
benefits are adjusted to what it would have been with the right age
under the misstatement of age provision what happens if it is determinded at death that the insureds age or gender was misstated on a life insurance policy application
occurs after application is submitted and initial premium is paid
underwriting process begins
grace period protects
unemotional lapse of the policy
In which of the following types of contracts is only one party legally required to do something after the insured has completed the act of paying the premium
unilateral
immediate annuity would be appropriate
upon larger receipt of large insurance proceeds.
Which is an example of when an immediate annuity would be appropriate?
upon receipt of large insurance proceeds
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account
variable
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?
variable
Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?
variable universal life
Under which situation must insurable interest exist between the applicant and insured at the time of application?
when a third party applicant names themselves beneficiary
Under which situation must insurable interest exists between the applicant and insured at the time of application?
when a third party applicant names themselves beneficiary
under which situation must insurable interest exist between applicant and insured at time of application
when a third party applicant names themselves beneficiary
when does insurable interest come into play in a life insurance policy
when applicant for policy Is not insured
when does insurable interest come into play in life insurance policy
when applicant for policy is not insured
subrogation
when insurance company tries to recover from different insurance policy all or part of its losses resulting from a claim.
When will a policy pay a UCR basis
when particular benefits are not listed on a payment schedule
when will policy pay on VCR basis
when particular benefits are not listed on payment schedule
When does insurable interest come into play in a life insurance policy?
when the applicant for the policy is not the insured
When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?
when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year
When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?
when the taxpayer's medical expenses exceeds 7.5% of adjusted gross income during a taxable year
When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?
when the taxpayers medical expenses exceed 7.5% of adjusted gross income during a taxable year
When would dependent children benefits for social security disability payments be scaled back
when they cause a family benefit to exceed the maximum benefit amount
Fraudulent missstatements
which of the following is exempt from the incontestability provision in insurance policies?
How does a noncancelable policy differ from a guaranteed renewable policy
with the non cancelable policy the insurer may increase premiums only based on the terms of the policy
How does a noncancelable policy differ from a guaranteed renewable policy?
with the noncancelable policy the insurer may increase premiums only based on the terms of the policy
In noncontributory plans, which percentage of eligible members must participate?
1
noncontributory plans
1 percent of eligible members must participate
States generally define a true "group" for insurance as requiring a minimum of how many participants
10
States generally define a true "group" for insurance as requiring a minimum of how many participants?
10
In noncontributory plans, which percentage of eligible members must participate
100%
In noncontributory plans, which percentage of eligible members must participate?
100%
maximum amount insurer has to provide claim forms for filling out proof of loss
15 days
what is the maximum amount of time an insurer has to provide the claimant the forms for filing proof of loss
15 days
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial:
2 year period
How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits
2 years
How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?
2 years
Time limit on certain defenses after which the policy becomes incontestable
2 years
Which of the following is the time limit on certain defenses after which the policy becomes incontestable?
2 years
length of time individuals waits to receive medicare benefits after being entitled to disability benefits.
2 years
which of the following is the time limit on certain defenses after which the policy becomes incontestable
2 years
A - inpatient/ hospital care B - outpatient/ medical coverage C- Alternative ways to receive (medicare advantage) D - Prescription
4 Parts of Medicare
safety glasses
A basic vision care package includes all of the following EXCEPT
safety glasses.
A basic vision care package includes all of the following EXCEPT
Medical underwriting exam
A consumer report used to determine eligibility for insurance may include all of the following EXCEPT:
The benefit is received tax free
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then
Fraud
A deceptive act or practice committed by a person with the intent to secure an unfair advantage or unlawful gain is known as
When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing that applicant a summary of coverage that includes all of the following EXCEPT
A detailed and comprehensive summary of the accelerated benefit
a life-changing event, such as marriage, divorce or child birth
A group conversion option may be used in all of the following EXCEPT
a life-changing event, such as marriage, divorce, or childbirth.
A group conversion option may be used in all the following instances EXCEPT
Which of the following is TRUE of a point of service plan?
A patient's care is coordinated by an in-network primary care physician
what is true about point of service plan
A patients corse is coordinated by an in-network primary care physician.
Family Protection Policy
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?
Pure Risk
According to the California insurance code, which of the following can be classified as an insurable event?
For claims involving periodic payments
According to the time of payment of claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT
For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?
Age
individual long term care policy there is an annual dollar limit for tax deductibles that is based on
Age
Policy Face, Conditions, Insuring Clause
All life insurance and health insurance contracts contain all of the following
Representations
All life insurance and health insurance contracts contain all of the following EXCEPT
the incomplete application can be accepted with the missing information added later.
All of the following are TRUE regarding incomplete applications EXCEPT
change in medical privacy procedures.
All of the following are characteristics of COBRA EXCEPT
there is no guaranteed minimum death benefit.
All of the following are characteristics of variable whole life EXCEPT
non-nicotine.
All of the following are classifications of risk EXCEPT
commiting a misdemeanor
All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while
committing a misdemeanor
All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while:
it generally is not renewable beyond a certain age, the insured may be left with inadequate protection when it is most needed, it becomes considerably more expensive over time
All of the following are disadvantages to an annually renewable term life policy
The living benefits decrease over time.
All of the following are disadvantages to an annually renewable term life policy EXCEPT
fixed period installments
All of the following are dividends options EXCEPT? REMEMBER OH CRAP
the beneficiary may encumber the proceeds.
All of the following are features of the spendthrift clause EXCEPT
switching the policy from one insured to another
All of the following are ownership rights EXCEPT
the minor in a juvenile policy.
All of the following are required signatures on a life insurance application EXCEPT
insurer
All of the following are required signatures on a life insurance application EXCEPT
the minor in a juvenile policy.
All of the following are required signatures on a life insurance application EXCEPT
credited with the appropriate number of quarters of coverage, disability expected to last 12 months or end in death, total and permanent disabled for at least 5 months
All of the following are requirements to qualify for Social Security disability benefits
unable to work in occupation in which the worker was trained or educated.
All of the following are requirements to qualify for Social Security disability benefits EXCEPT when:
Section 529 plan
All of the following are tax qualified retirement plans EXCEPT
Section 529 plan.
All of the following are tax qualified retirement plans EXCEPT
the rider is available to all insureds with no additional premium
All of the following are true regarding the guarabteed insurability rider EXCEPT
common disaster clause
An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary?
Free Look Period
An insured has the right to return the new insurance policy for a full refund during the
Consideration
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy
403(b) Plan (TSA)
An internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n)
All of the following statements define preexisting conditions EXCEPT
Any chronic health condition that presents symptoms and which was unknown at the time of application
Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?
Any exclusions
An administration penalty of no less than $5,000 and no more than $50,000 per violation
Any insurance agent commits a repeated violation of the insurance code with respect to insurance replacement will be liable for
Which is the major reason why long term care insurance is becoming increasingly important?
As life expectancy increases, the chances of needing long term care also increase
First dollar coverage is
As soon as covered medical expense are incurred the policy begins to pay.
What does first dollar coverage mean?
As soon as covered medical expenses are incurred, the policy begins to pay
At the time the policy is purchased by the owner of the policy.
At which point are contractual death benefit settlement options determined and by whom?
Common in an increasing term life policy
Begins with little or no insurance protection
Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
Benefits are adjusted to an amounts that the premium would have purchased at the correct age or gender
Makes insurer liable for risk from date of application
Binding Receipt
Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?
Binding receipt
Which type of coverage pays the operating costs of a small business when the owner becomes disabled?
Business overhead expense disability insurance
All of the following are non-forfeiture options EXCEPT
Cash dividend option
Nonfofeiture options Except
Cash dividend option
All of the following are characteristics of COBRA EXCEPT
Change in medical privacy procedures
All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while
Committing a misdemeanor
All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while..
Committing a misdemeanor
An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary?
Common disaster clause
2 characteristics of HMO's
Containing costs and early treatments
Which whole life policy premium type is the most common?
Continuous premium
Difference between copayment and coinsurance
Copayment is set dollar amount, Coinsurance is set percentage.
Which of the following is TRUE of the limited pay whole life policy?
Coverage continues after the policy is paid-up
Which of the following is the most common method to supplement Medicare coverage
Coverage offered by private insurers
interest rates
Current assumption whole life policies are sensitive to which of the following?