Final study
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000
Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing?
100%
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required in noncontributory plans
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
A producer must report to the Director any conviction of the producer taken in any jurisdiction within how many days?
30 days
A producer must report to the Director any coviction of the producer taken in any jurisdiction whithin how many days
30 days
How long must a licensee keep records of insurance transactions on file, available for inspection by the Director?
5 Years
What is the elimination period for Social Security disability benefits?
5 months
At what age may an individual make withdrawals from an HSA for non health purposes without being penalized ?
65
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to identify the insure and the nature of the claim
Which of the following Medicare supplement plans would be available to a reasonably healthy 91 year old female?
A-N
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristics does this describe?
Adhesion
Which of the following is another term for an authorized insurer?
Admitted
The least expensive first-year premium is found in which of the following policies?
Annually Renewable Term
Which of the following hospice expenses would NOT be covered in a cost-contaiment setting?
Antibiotics
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
Any form of life insurance
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
In a replacement situation, all of the following must be considered EXCEPT
Assets
A policy fails to pay the premium due on his whole like policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
What limits the amount that a policyowner may borrow from a whole life insurance policy?
Cash value
Before being issued a license, applicants must submit which of the following to the Director as a part of a background check?
Complete set of fingerprints
A health insurance plan that covers all accidents and sickness that are not specifically excluded from the policy refereed to as a
Comprehensive plan
What term best describes the act of withholding material information that would be crucial to an underwriting decision?
Concealment
Which of the following is NOT fundable by annuities?
Death benefits
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
Decreases
An individual has just borrowed $10,000 from his bank of a 5-year installment loan requiring monthly payments. What type of life insurance policy would be the best suited to this situation?
Decreasing term
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
An individual purchased a life insurance policy on his life naming his wife as primary beneficiary, and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceases the insured
Which of the following best describes a misrepresentation?
Issuing material with exaggerated statements about policy benefits
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
Which of the following statements concerning Medicare Part B is correct?
It pays for physician services, diagnostic tests, and physical therapy
Which of the following is true regarding a single life settlement option?
It provides income the beneficiary cannot outlive
A married couple owns a permanent policy which covers both of their lives and pays the death benefits only upon the death of the first insured. Which policy is that?
Joint life policy
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
Legal action
What is the definition of a Unilateral contract?
One sided only; one party makes enforceable promise
Which of the following can surrender a deferred annuity contract?
Only the annuity owner
When a life insurance polity 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?
Spendthrift provision
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
Can an individual who belongs to a POS plan use an out-of-network physician?
Yes, and they may use any preferred physician, even if not part of the HMO
Who is responsible for covering the expenses associated with the examination of domestic insurers?
the examined insurer
An absolute assignment is a
transfer of all ownership rights in a policy
An agent selling variable annuities must be registered with
FINRA
All of the following are divided options EXCEPT
Fixed-period installments
When an employee terminates coverage under a group insurance policy, coverage continues in force
For 31 days
In life insurance policies, cash value increases
Grow tax deferred.
The Federal Fair Credit Reporting Act
Regulates consumer reports
Which of the following statements is INCORRECT about appointment of producers?
A Certificate of Authority is the license given by the insurer to its producers
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
Employers can reduce health plan costs by coupling a HRA with
A high deductible health plan
An insured is admitted to the hospital for surgery on a herniated disk. The insurance company monitors the treatment and progress in order to make sure that everything proceeds according to the insurer's schedule. This is called
Concurrent review
An insured is involved in a car accident. After the accident is determined to be her fault, the police give her a breathalyzer test to determine whether or not she had been drinking alcohol before the accident. Her blood alcohol level was over the legal limit. What type of health benefits will her health insurance policy pay for her injuries if the policy includes the narcotics and intoxicants policy?
No benefits
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Parts A and B of Medicare
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class
Which of the following is NOT a characteristic of variable annuities?
They offer guaranteed stock performance
Which of the following is NOT the purpose of HIPAA?
To provide immediate coverage to new employees who had been previously covered for 18 months
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Twisting
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life- Option A
Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
Unlimited
Which statement accurately describes group disability income insurance?
The extent of benefits is determined by the insured's income
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions
Which of the following will vary the length of the grace period in health insurance policies?
The mode of the premium payment
In a life settlement contract, whom does the life settlement broker represent?
The owner
Which of the following is true regarding a market value adjusted annuity?
The owner is guaranteed a fixed interest rate for a specific period of time
What process will the insurance company use to monitor the insured's hospital stay to make sure that everything is proceeding according to schedule?
Concurrent review
The purpose of managed care health insurance plans is to
Control health insurance claims expenses
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
Disability Buy-Sell
Because of the history of cancer in her family, Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy?
Dread Disease Policy
An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?
Full Benefits
All of the following are business uses of life insurance EXCPET
Funding against company's general financial loss
A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?
Guaranteed
Which of the following is an eligibility requirement for all Social Security Disability Income benefits?
Have attained fully insured status
The primary eligibility requirement for Medicaid benefits is based upon
Need
Attempting to determined how much insurance a family would require based upon their financial objectives is know as
Needs approach
Which of the following statements about the reinstatement provisions is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated
A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?
Joint and survivor
Which of the following programs expands individuals public assistance programs for people with insufficient income and resources?
Medicaid
An insurance company wants to obtain the insurance history of an applicant. Which source releases coded information to insurers regarding information included on previous insurance applications?
Medical Information Bureau
Which of the following are the main factors taken into account when calculating residual disability benefits?
Present earnings and earnings prior to disability
In respect to the consideration clause, which of the following is consideration on the part of the insurer?
Promising to pay in accordance with the contract terms
An insured committed suicide one year after his life insurance policy was issued. The insurer will
Refund the premium paid
What method is used to determine the taxable portion of each annuity payment?
The exclusion ratio
In the event of an insurer's insolvency, the South Carolina Life and Health Guaranty Association will
Reinsure policies of the insolvent through other companies
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may
Require evidence of insurability
In major medical insurance policies, when the insured's share of coinsurance reaches a certain amount, the insured is no longer obligated to pay it. This feature is known as
Stop-loss
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is personal use of life insurance known as
Survivor protection
Which of the following statements is NOT true regarding the Director of Insurance in this state?
The Director is elected for the term of 4 years
In transaction of insurance, which of the following is considered to be representing the client?
The broker
Which of the following statements is true concerning the creditors of the deceased insured?
The creditors have rights to the proceeds if they can show evidence of valid assignment
The limits of a health reimbursement account as set by
The employer
An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?
The policy will terminate when the loan amount with interest equals or exceeds the cash value
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible
Which of the following statements regarding conditional receipts is true?
They are temporary insuring agreements
Which of the following statements regarding deferred compensation funds is INCORRECT?
They are usually qualified plans