FINAL EXAM Life Insurance
After an annuity has been in force for __year(s), It becomes incontestable
2
All Louisiana licensed producers must complete which of the following continuing education requirements
24 Hours every 2 years
After ___ year(s) from date of issue, a policy can no longer be cancelled by the insurer for misstatements (except for fraud)
3
After a disability policy has been in force for __year(s), it is considered incontestable.
3
A producer must notify the Commissioner within __ days of a felony conviction.
30
After the first payment is made, the grace period for an accident and health policy is
30 days
A newborn is required to be covered for __ days from the moment of birth.
31
A Roth IRA owner must be at least what age in order t omake tax-free withdrawals?
59 1/2 and owned account for a minimum of 5 years
A rollover from a Traditional IRA to another IRA must be done within __ days to avoid tax consequences
60
A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed __ of the individual's adjusted gross income.
7.50%
A policyowner who anticipates death or develops a life-threatening condition may obtain proceeds from a life insurance contract. These proceeds are known as
Accelerated benefits
A long term care policy typically provides all of the following levels of care except
Acute care
A policyowner may change two policy features on what type of life insurance?
Adjustable life
A change in an insurance application requires
An initial made by the applicant
A licensed producer MUST be _____ by an insurer to be eligible for soliciting insurance contracts
Appointed
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
Association or labor group
A renewable Term Life Insurance policy can be renewed
At a predetermined date or age regardless of the insured's health
According to life insurance contract law, insurable interest exists
At the time of application
A company that is authorized by the Commissioner to transact insurance business in Louisiana is called a(n)
Authorized insurer
A domestic insurance company in Louisiana MUST
Be organized under Louisiana insurance laws
A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing
Benefit limits
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)
Collateral assignment
A Louisiana insurance producer solicits a life insurance policy. In the even of a controversry between the insured and the company, the producer is considered to represent the
Company
A waiver of premium rider allows an insured to waive premium payments if the insured is
Completely and permanently disabled
A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called
Conditionally renewable
A producer who sells most of his/her insurance policies to family members is said to be engaging in
Controlled business
____ is NOT an element of a valid contract.
Countersignature
____ life is designed to pay the balance of a loan if the insured dies before repayment of the loan
Credit
Advertising regulations exist in order to
Demonstrate full and truthful disclosure to the public
A form of medical health insurance covering the treatment and care of gum disease is called
Dental expense insurance
A medicare Supplement policy's outline of coverage MUST include a(n)
Description of policy benefits
A Medicare Supplement Policy is
Designed to fill in the gaps of Part A and Part B Medicare
A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?
Disability Income Rider
A doctor who accepts Medicare Assignment agrees to which of the following?
Doctor cannot charge more than Medicare's scheduled coverage
A pharmacy benefit covers prescription drugs derived from a list called a(n)
Drug formulary
A Medicare Supplement Policy must NOT contain benefits which
Duplicate Medicare benefits
A professional liability for which producers can be sued for mistakes for putting a policy into effect is called
Errors and Omissions
A life insurance policy normally contains a provision that restricts coverage in the event of death under all fo the following situations EXCEPT
Fare-paying passenger
A health care provider claim may be settled using which of the following payment methods?
Fee-for-service
A payment system for health care in which the provider is paid for each service given is called?
Fee-for-service
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
File written proof of loss
A Medicare supplement plan can be canceled by the insurer
For nonpayment of premiums
A cease and desist order
Forbids a stated practice listed in the order
A group Disability Income plan that pays tax-free benefits to covered employees is considered
Fully contributory
A master contract and certificate of coverage can be found in which type of policy?
Group
A business will typically use which type of life insurance to cover their employees?
Group Policy
A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n)
Guaranteed insurability rider
A health insurance policy that allows an insurer to change the policyowners premiums, but NOT cancel the policy is called a(n)
Guaranteed renewable policy
A dependent child may remain on a parents health insurance plan beyond age 26 if the child
Has a mental or physical handicap and remains dependent on the parent
A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment
Indicates a preexisting condition
A policyowner is prohibited from kaing any changes to the policy without the beneficiary's written consent under which beneficiary designation?
Irevocable beneficiary
A foreign insurance company doing business in Louisiana
Is a company that was formed under the laws of another state
According to HIPAA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual
Is eligible for coverage upon hire
A person covered with an individual health plan
Is issued a policy
A life insurance policy written on one contract for two people in which it is payable upon the first death is called
Joint
A common exclusion with Vision plans is
Lasik surgery
A limited payment whole life policy provides
Lifetime protection
A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n)
Limited pay policy
A life insurance policy that has premiums paid up within a select time period is called
Limited payment insurance
All ____ policies must be guaranteed renewable
Long-term care
A viatical settlement broker may NOT
Make any transactions before being approved for a license
A guaranteed issued insurance policy has no
Medical underwriting
A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the
Named living primary beneficiaries
A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed?
No federal income tax is owed on life insurance proceeds
A whole life policy option where extended term insurance is selected is called a(n)
Nonforfeiture option
A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n)
Nonforfeiture provision
A medicare supplement policy can be cancelled by the insurer for
Nonpayments
A beneficiary change can occur:
Normally at any time during the policy term
A business entity wishing to act as an insurance prodcuer MUST
Obtain a producer's license
A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n)
Optional renewability clause
A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decreas in income resulting form this injury would make him eligible for benefits under which provision?
Partial disability
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n)
Partial surrender
According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied?
Participation or contribution rules have been violated.
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)
Payor rider
All Medicare Supplement policies MUST contain which provision?
Pre-Existing conditons may be excluded from coverage for a maximum of 6 months
A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?
Preferred
A rehabilitation benefit is intended to
Prepare the insurer to return to employment
A health insurance policy will typically cover
Preventative health services
All health Benefit Plans issued after January 1, 2014 must provide
Preventative health services
A(n) ______ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.
Producer
A nonresident producer from a state outsideo f Louisiana may become licensed in Louisiana IF a(n)
Reciprocal arrangement exists with the state of domicile
A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
Reduction of premium dividend option
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the
Reinsurer
According to Louisiana law, group life insurance conversion privileges must NOT
Require evidence of insurability
A life insurance policyowner does NOT have the right to
Revoke an absolute assignment
A preexisting condition is a condition for which medical advice or treatment was recocmmended by or received from a provider of health care service with __months preceding a health policy's efffective date.
Six
A life insurance replacement transaction could result in a/n
Surrender charge
A medicare supplement basic benefit is
The first 3 pints of blood per year
A Whole life Insurance policy accumulates cash value that becomes
The policy loan value which the insured may borrow against
A disability elimination period is best described as a
Time deductible
A field underwriter's main task is
To ensure an applicant's medical information is accurate and complete
A life insurance policy sold in Louisiana can be contested by the insurer only during the first __ years of the contract.
Two
A producer license is NOT required when
Underwriting insurance
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called
Universal life
A life insurance policy that is subject to a contract interest rate is referred to as
Universal life
"Maximum benefits" refers to the
Upper limit of the total lifetime benefits the insurance company will pay
A securities license is required for a life insurance producer to sell
Variable Life Insurance
A life insurance policy which contains cash values that vary according to its investment performance of stocks is called
Variable whole life
A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract?
Viatical settlement agreement
A renewable Term Life Insurance policy allows the policyowner the right to renew the policy
Without producing proof of insurability
