Final Insurance Exam
what is the difference between a straight life policy and a 20-pay whole life policy
premium payment peroid
Which of the following riders would not cause the death benefit to increase
payor benefit rider
all of the following are true of the survivorship life policy except
the premium based on the age of each insured
which of the following statements is false: -the physical exam and autopsy provision gives the insurer the right to examine the insured as often as may be reasonably necessary when a claim is pending -the insurer als have the right to conduct an autopsy if not forbidden by state law -the insurer does not have the right to conduct an autopsy -the physical exam and autopsy provision gives the insurer the right to examine the insured at its own expense
the insurer does not have the right to conduct an autopsy
Which of the following is not a standard exclusion in life insurance policies
Disability
all of the following information needs to be included on an application for life insurance except
health insurance policies in force
an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible. which term describes what the agent has done
misrepresentation
when an insured terminated membership in the insured group, the insured can convert to
whole life without proof of insurability
which of the following actions does not constitute false advertising
with premiums based on the age at which employment ends
Which of the following is true regarding optional benefits with long term care policies
they are available for additional premiums.
which of the following is true regarding viatical settlements and annuity contracts
a business entity may receive a viatical settlement broker license
what is the main difference between coinsurance and copayments
copayment is a set dollar amount
an agent has moved from va to another state when will his license authority be terminated
immediately
What does basic medical expense cover
non surgical services a physician provides
which of the following are characteristics of term life insurance
temporary protection, renewability, no cash value
a retail shop owner is insured under a business overhead expense policy that pays a max monthly benefit of 2500. his actual monthly expenses are 3000 if the owner becomes disabled the monthly benefit payable under his policy will be
2500
in whole life insurance, when is the policy cash value scheduled equal the face amount
at the insureds age of 100
all of the following are consideration in an insurance policy except
cash value in the policy
when a prospective client decides to purchase an annuity he asks you to recommend a particular product. You ask him to disclose to you certain aspects of his current financial situation. which of the following items is the least important to you for recommendation of an annuity product
the clients health
if the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policy owner
when the policy is delivered
According to the common disaster clause if the insure and primary beneficiary are killed in the same accident and it cannot be determined who died first which of the following will be assumed
the primary beneficiary died before the insured
in order for a business partner to be eligible for Keogh plan, he/she must have work full time and own at least how much of the business
%10
the insured under a 100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. it was determined that the accident was his fault. the triple indemnity rider in the policy specific that the death must not be contributed by the insured in any many in this case, what will the policy beneficiary receive
100,000
which of the following statements is not true regarding health insurance policy provisions
all additional provisions written by insurers are cataloged by their respective states
an application gives her agent a completed application and initial premium. What can the agent issue her that acknowledges the initial premium payment
conditional receipt
which of the following elements of insurance contract requires paying premium and providing a statement of good health
conditional receipt
When filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available what could the applicant do to properly correct his mistake
cross the incorrect answer, write the correct one beside it and initial the answer
an employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under social security
currently insured
all of the following are features of a health insurance plan purchased on health insurance marketplace except
dollar limits on essential benefits
the uniform provision law that prevents the insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called
entire contract provision
continuimg education must be completed
even-numbered years
an applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts
fair credit reporting act
cash values guarantees in a whole life policy are called
nonforfeiture values
the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except
purchase of a new home
which of the following is a major consideration when making recommendations to a client regardin gthe purchase or exchange of an annuity
suitability
onc condition placed on group life coverage provided through a group credit life plan is
the plan coverage may only cover the remaining balance on the account
a lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
coercion
which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs
term insurance
which of the following describes the relationship between a capital sum and a principal sum
capital sums are percentages of principal sums
under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner
cash surrender
an insured and his spouse recently had a child. which of the following riders would allow the couple to insure the child for a limited period at a specified amount
children's term rider
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?
2 years
an insurer moved into a new house 10 days ago how many more days does he have to report change to commission
20
how many hours of continuing education would need to be completed by an agent holding life, health, property and casualty license
24
who is legally required to keep records pertaining to insurance transactions
all licensees
what is the purpose of the agent's report in the application process
to provide additional info about the applicant to the underwriters
all of the following must be included in the report to the commissioner after felony conviction or administrative action is taken against a licensed insurance agent except
a copy of the agents license
According to the entire contract provision, a policy must contain
a copy of the original application for insurance
a major medical expense policy woul exclude coverage for all of the following treatments except
drug addiction
long term care policies must provide to their policyowners all of the following features except
be incontestable after 6 months
an adjustable life policy can assume the form of
either term insurance or permanent insurance
most methods used to determine the suitability of a particular annuity recommendation to a client are based on information regarding all of the following except
clients insurability
Life income joint and survivor settlement option guarantees
income for 2 or more recipients until they die
an insured hospital policy states that it will pay him a flat fee of 75 per day for each day he is hospitalized. the policy pays benefits on what basis
indemnity
your client was insured under her employer group life insurance plan at her place of employments group life insurance plan at her place of employment she contacted you as she was terminated from her job she wants to convert her group policy to an individual policy. all of the following statements about her situation are correct except
she will be able to convert to term insurance
insured have the rights to do which of the following if they have not recieved the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy
submit the description in their own words on a plain sheet of paper
medicare is a health insurance program for all of the following individuals except
those with low income and low assets
in the case of policy renewal an insurer must issue to the policy holder a disclosure of information practices
only when such a disclosure has not been issued in the last 24 hours
an insured purchased a health insurance policy with a renewability clause that states the the policy is guaranteed renewable. This means that as long as the required premiums are paid, the policy will continue until the insured
reaches 65
an agent in an insurer's office has been transacting life insurance policies but licenses only to transact property and casualty policies. The agent may be subject to all of the following policies except
1000 fee for each life insurance policy written
during policy replacement the replacing insurer must notify existing insurers within what time period
5 business days
a life insurance policy qualifies a modified endowment (MEC) if the amount of premium paid exceeds the amount that would have provide paid up insurance in how many years
7 years
which of the following statements is incorrect concerning modified endowment contracts (MECS)
an mec must always pass the 7 pay test
a corridor deductible applies between
basic and major medical coverage
How does insurance distribute the financial consequence of individual losses
it transfers the risk to all persons insured
A father owns a life insurance policy on his 15 year old daughter the policy contains the optional payor benefit rider. if the father becomes disabled what will happen to the life insurance premiums
the insured's premium will be waived until she is 21
all long term care policy advertisemeents must be retained by the insureer for at least how many hours from the date the a was first used
3 years
an insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered
delivered
in group insurance the primary purpose of the coordination of benefits provision is to
prevent overinsurance
an underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses
attending physicians statement
what does the life accident and sickness insurance guaranty association guard against
insurer insolvency
Dividends received on participating life insurance policies are
not taxable because they are a return of unused premiums
a married couple purchase a life insurance policy on their newborn baby. they concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agen recommend.
payor benefit
all of the following are true of annually renewable term insurance except
proof of insurability must be provided at each renewal
Under the mandatory uniform provision Notice of Claim must submitted to the insurer within what time parameters
20 days
an annuity has accumulated the cash value of 70,000 of which 30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive
70,000
an employee is insured by a group major medical plan that is provided through her employer. The employer contributes 75% of the premium and the employee contributes 25%. If the insured recievieved a benefit from this policy in the amount of 1,000 how much of this benefit would be taxed as income
0 -group and dental expenses benefits
which of the following best describes a presumptive disability
one that is severe enough that the insured automatically qualifies for full disability benefits
a licensed agent contract with the insurer is not completely valid unless the insurer has also appointed the agent. Within how many days from the date of execution of the first insurance application must the agent be appointed
30 days
an agent whose license is denied or revoke must wait how long before reapplying
5 years
decreasing term insurance is often used to
coverage a mortgage
which of the following best describes the type of care provided by HMOs
preventative
because of an injury an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet the policy remained in force. The policy includes
waiver of premium rider
an insured owes a 50,000 whole life policy. At age 47, the insured decides to cancel his policy and execrcise the estended term option for the policy's cash value, which is currently 20,000. What would be the face amount of the new policy
50,000
considering the principles of liequity how would policyowners use todays cash values in a life insurance policy
use it for emergency expenses
an insured bought an insurance policy that requires him to pay 150 in premiums on the 15th of each month. he then takes an extended vacation and forgets to pay the premium. ten days later his policy is still in affect and has not lapsed. which policy provision allowed for this
grace period
which of the following would be required to become a licensed as an insurance as an insurance producer
a customer service representative who solicits no more than one policy year
how often must a viatical settlement broker license be renewed
annually