Final hopeful review
The most the Insurance Guaranty Association will pay for net cash surrender values is
$100,000
An insurance policy specifies that it will pay $600 for a specific loss. The policyowner suffers a loss of $535. How much will the policy pay?
$535, the insurer will always pay the actual cost up to what is stated in the policy
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
What percentage of the coverage's premium can be required to be paid by the employee under COBRA?
102%
How long does the provider in a viatical settlement have to inform the insurer that a life policy has been vindicated?
20 days
If a vatical settlement provider transfers ownership of an insurance policy, how long does the insurer have to inform the insured of the change?
20 days
How many employees does a compony have to have for COBRA to be in effect
20 or more
How long do terminated employees have to convert to an individual health insurance policy without having to provide proof of insurability?
31 days
How long should a compony keep a file of all advertisements?
4 years
How long after an accident that resulted in death will the AD and D rider pay double the face value?
90 days
What is another term for an authorized insurer?
Admitted
Who does the Omnibus Budget Reconciliation Act cover
Age 65 who are not retired
What does the term standards mean when referring to a standard medicare supplement plan?
All providers will have the same coverage and conditions for each plan
The insurance component of a Universal Life policy is always...?
Annual renewable term insurance
What type of life insurance is used to fund a buy-sell agreement?
Any type of life insurance
When is the Guide to Health Insurance for People with Medicare issued?
At the time of application
What happens when the policy owner fails to pay the premium on his whole life policy after the grace period passes but the policy remains in force. What provision allows this
Automatic premium loan
What are the features of the Living Needs Rider?
Available at no additional charge, the remainder of the policy proceeds is payable to the beneficiary at the insureds death, it provides funds for the medical and nursing home expenses to a terminally ill insured
In an AD and D coverage, what is the amount called when one lost sight or a limb in an accident
Capital sum
What is considered a presumptive disability?
Conditions that would automatically qualify the insured full disability benefits, such as the loss of two limbs
An insured is reciving hospice care. His insurer will pay for painkillers but not for operation to reduce the size of the tumor. What term best fits this arrangement?
Cost-containment
What services are generally not subject to coinsurance or deductibles in nonscheduled plans? What services are?
Diagnostic and preventative care are "free". Basic and major services you have to pay for
What is the goal of the HMO
Early detection through regular checkups
How often must the commissioner examine rating organizations
Every 5 years
An agent selling variable annuities must be registered with?
FINRA and hold a securities license
Violation of unfair discrimination law penalties
Fines of up to $500 for each act, Suspended license, refusal to renew license
What is another name for a primary care physician in an HMO
Gatekeeper
Variable life insurance is based on what kind of premium?
Graded
What are the two types of interest rates on a Universal Life insurance policy?
Guaranteed and current
Coverage is guaranteed but rates can be adjusted for the entire class, what health insurance policy is this?
Guaranteed renewable
When are rebates allowed?
If its in the best interest of the client
When will a life insurance policy pay for the death of an insured caused by war?
If the policy does not have a War and Military Service clause
Where are MIB reports information based off of?
Information from insurers from medical information on past applications, not doctors or hospitals
The two components in an Universal Life Insurance Policy
Insurance or death protection and cash account
What is the term participating refer to in a life insurance policy?
It pays dividends to policy-owners by cash payments, reduced premiums, units of paid-up life insurance, a savings program, or by the purchase of term insurance
Whats the other name for a cash payment settlement option?
Lump sum
Group disability income insurance premiums paid by the employer are received taxed or tax deductible?
Neither
A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less then what is currently being offered. If this a fair settlement practice?
No
Can a licensee be barred from charging a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business?
No
Can a trustee access trust funds for their personal account?
No
Can an insurance producer charge a fee for the completion of an application for a contract of insurance?
No
Can your license be suspended or revoked if you're charged with any misdemeanor?
No
Does a producer have to take a renewal test upon renewal?
No
Does the commissioner have the power to imprison someone found in violation of state insurance laws?
No
Does the insuring clause state the method of premium payment?
No
Does installments for a fixed amount in an annuity stop when the annuitant dies?
No, fixed amount has no life contingances
Are curative measures provided for hospice patients in a cost containment setting?
No, only pain containment
Are dividends considered a rebate in the eyes of the IRS?
No, they are a return of overpaid premiums.
When an insured cancels a policy, how is unearned premium refunded?
On a short rate basis
Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premium for any class of insureds?
Optionally renewable
What allows the insurer to relieve a minor insured from premium payments if the minors parents have died or become disabled?
Payor benefit
In a key person life insurance policy, what is the taxation like for premiums paid?
Premiums are not tax deductible as a business expense
In an AD and D coverage, what is the amount called when death is the result of an accident?
Principal sum
Under which provision can a physician submit claim information prior to providing treatment?
Prospective review
The Gramm-Leach-Bliley Act was passes to
Protect private customer information filed with a financial institution
If you want to use your dividend to pay for your premium, what option lets you do this?
Reduction of premium
If the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must do what?
Respond to the consumers complaint
Benefit option that will pay the largest monthly amount for life
Straight life
Group disability income insurance premiums paid by the employer are tax deductible or not?
Tax deductible as a business expense
When you cancel and exercise the extended term option for the policy's cash value, what is the face amount of the new policy if the cash value is 2/3 of the face amount of the first policy?
The face amount of the new policy is the face amount of the old policy
What does the cost of living rider annually adjust the policy's face value in accordance to?
The national rate of inflation
Who pays for continuing coverage with COBRA?
The terminated employee
What is it called when a insurer doesn't promptly settle a claim when liability has clearly been established
Unfair claims settlement practice
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
How soon after the due date should the insurer pay the agent appointment fees?
Within 30 days
Does the commissioner have the power to impose a civil penalty on someone found guilty of state insurance laws?
Ye
Can you receive commission on a sale you made before your license was suspended
Yes
Can your license be suspended or revoked if you fail to pay your child support obligations?
Yes
Can the insurer change the premium when a terminated employee changes there group policy to an individual one?
Yes as it sees fit
When a terminated employee changes there policy from group to individual, can the benefits change in the new policy?
Yes, they could offer lesser benefits in the new policy
What is required to be stated in the outline of coverage provided with a long term care policy?
information about the insurance company, the policy number, important features of the policy, and explain the right to return the policy for a refund
What does the Notice Regarding Replacement must inform the applicant
of the 30-day free look period of the replacing policy
In an optionally renewable policy, who has the option to renew or not
the insurer
How long does COBRA coverage last?
up to 18 to 36 months
