FxExam

#92. What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

An insured is covered by a partially contributory group disability income plan that pays benefits of $4,000 a month. If the insured pays 25% of the monthly premium, how much of the monthly benefit would be taxable?

$3000

#44. An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?

$500

An employee group with which of the following number of employees would qualify for a medical savings account?

23 employees

#65. The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability clause.

#150. Which statement regarding insurable risks is NOT correct?

Insureds cannot be randomly selected.

Who makes up the Medical Information Bureau

Insurers

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium.

#72. Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

#69. In a conservation or liquidation effort, what powers does the Commissioner have?

The Commissioner has all of these powers.

Which answer is true about extension of benefits in group disability policies?

The benefits are extended if a disabled person's coverage terminates as a result of a discontinued group plan.

Which of the following is correct about Medicare?

The program is divided into four parts (A-D).

#1. What is the amount a physician or supplier bills for a particular service or supply?

Actual charge

#31. What size companies are eligible for health reimbursement accounts (HRAs)?

Companies of all sizes

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed.

All of the following statements are correct regarding credit life insurance EXCEPT

Benefits are paid to the borrower's beneficiary.

#95. Which of the following is true regarding inpatient hospital care for HMO members?

Care can be provided outside of the service area.

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

#11. All of the following are duties and responsibilities of producers at the time of application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement

15 #70. A man is injured while robbing a convenience store. How does his major medical policy handle the payment of his claim?

Claim is denied if his policy contains the Illegal Occupation provision.

Which of the following is NOT covered under a long-term care policy?

Acute care in a hospital

#23. An insured misstates her age at the time the life insurance application is taken. This misstatement may result in

Adjustment in the amount of death benefit.

#46 In reference to the standards Medicare supplement benefits plan, what does the term standard mean?

All providers will have the same coverage options and conditions for each plan

An agent has been hired by a local businessowner to determine what type of personal and professional coverage he needs. The agent has determined the businessowner's needs and recommended policies from 3 possible companies. The agent does NOT have an agency contract with any of these companies. The agent is acting as

An insurance broker.

A natural person that is employed to aid an insurance agent or insurance broker in the transacting of insurance business other than life insurance transactions is called

An insurance solicitor.

#15. Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

Attending physician

If a change needs to be made to the application for insurance, the agent may do all of the following

Erase the incorrect answer and record the correct answer.

#20. What type of group ratings do the Blue Cross and Blue Shield organizations use as a factor in developing the rates to be charged?

Experience rating

#19. Factual statements about the insured or the risk in an insurance policy are considered

Express warranty.

#96. Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

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

#81. Which of the following expenses is NOT covered by a health insurance policy?

Funeral

#87. The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases.

#139. Which of the following annuity riders ensures investors will receive a set amount of income annually?

Guaranteed Minimum Income Benefit

#37. All of the following statements about Medicare Part B are correct EXCEPT

It is a compulsory program.

#14. Which of the following best describes the MIB?

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

#122. Which of the following is true regarding free insurance issued in this state?

It is illegal.

#38. Which of the following is true regarding a term health policy?

It is nonrenewable.

#91. Which of the following statements is TRUE about a policy assignment?

It transfers rights of ownership from the owner to another person

#94. Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount.

#35. Which of the following will be covered by a nonoccupational policy?

John gets hurt in a car accident during his lunch break.

A woman's health insurance policy dictates which doctors she is allowed to see. Her health providers share an assumed risk for their patients and encourage preventive care. What best describes the health system that the woman is using?

Managed care

#120. Which of the following statements is INCORRECT regarding IRAs?

Married couples are required to purchase a jointly owned IRA.

An insured is covered under a Medicare policy that provides a list of network healthcare providers that the insured must use to receive coverage. In exchange for this limitation, the insured is offered a lower premium. Which type of Medicare policy does the insured own?

Medicare SELECT

#149. Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

Under a non-contributory group health plan, which of the following is FALSE?

No less than 50% of the eligible employees must elect to participate in the plan.

#93. In long-term care insurance, what type of care is provided with intermediate care?

Occasional nursing or rehabilitative care

#128. An insured who signs a fraudulent claim form may be guilty of

Perjury.

#145. All of the following are examples of risk retention EXCEPT

Premiums.

Which of the following plans allows small employers who do not offer health insurance to assist in the payment of employee medical expenses and insurance premiums?

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

#22. Insurers may change which of the following on a guaranteed renewable health insurance policy?

Rates by class

#53. In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

The type of investment.

#40. Which of the following is NOT true regarding Blue Cross and Blue Shield organizations?

They are insurance companies.

#56. Regarding Medicare SELECT policies, what are restricted network provisions?

They condition the payment of benefits.

Medi-Cal may be available to persons over age 65 if

They have medical or long-term care claims not paid by Medicare.

#79. What is the purpose of coinsurance provisions?

To help the insurance company to prevent overutilization of the policy

Which of the following is NOT a goal of risk retention?

To minimize the insured's level of liability in the event of loss

#96. The Waiver of Cost of Insurance rider is found in what type of insurance?

Universal Life

Which characteristic does NOT describe managed care?

Unlimited access to providers

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as

Usual, customary and reasonable.

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

Variable universal life

#32. Which of the following is NOT a feature of a guaranteed renewable provision?

a) The insurer can increase the policy premium on an individual basis.

Which of the following was designed to provide more extensive privacy protection than the federal Gramm-Leach-Bliley Act?

d) California Financial Information Privacy Act

#56. All of the following are features and requirements of the Living Needs Rider EXCEPT

d) Diagnosis must indicate that death is expected within 3 years.

Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?

Reduction

#142. Which type of beneficiary is changeable at any point?

Revocable

Which of the following components of dental insurance does NOT require the payment of a deductible?

Routine and Preventive maintenance

The following are features of the Indexed Universal Life EXCEPT

Sale of this product requires a securities license.

Who does HICAP serve?

Seniors receiving Social Security

#26. Which of the below statements does NOT describe a Blue Cross and Blue Shield Plan?

Services are paid for at the time of use.

Which of the following is NOT covered under Plan A in Medigap insurance?

The Medicare Part A deductible

Your client has a Social Insurance Supplement (SIS) rider on his disability policy. After he becomes disabled, he receives payments from the company. Shortly thereafter, he also begins receiving Social Security benefit payments. Which of the following will happen?

The SIS payment will be reduced dollar-for-dollar by the Social Security benefit payment.

#40. The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract.

#47. All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

#143. The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

#111. Which answer is true about extension of benefits in group disability policies?

The benefits are extended if a disabled person's coverage terminates as a result of a discontinued group plan.

#35. Group underwriting is beneficial in comparison to individual underwriting due to which of the following reasons?

The cost of coverage is generally lower due to the reduction of risk

Group underwriting is beneficial in comparison to individual underwriting due to which of the following reasons?

The cost of coverage is generally lower due to the reduction of risk

Which of the following describes the tax advantage of a qualified retirement plan?

The earnings in the plan accumulate tax deferred.

#21. An insurer's liability shall be limited to

The face amount of an individual insurance policy, subject to any exclusions and riders as applicable minus any outstanding policy loans and interest payments due the insurer.

An insured purchased a noncancellable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy?

The insured is in an accident and incurs a large claim.

#138. Which of the following is NOT a feature of a guaranteed renewable provision?

The insurer can increase the policy premium on an individual basis.

The importance of a misrepresentation is determined by

The materiality of a given concealment.

#98. When purchasing an occupational disability income policy, each of the following factors may be used to establish the premium EXCEPT

The number of dependents the insured has.

#82. All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies.

In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost

Is not covered.

#79. An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?

$120 a day

#75. Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?

.Susie is 67 and is covered by a basic medical expense policy

#104. Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?

50/50

#94. How long is an open enrollment period for Medicare supplement policies?

6 months

Under the Affordable Care Act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event?

60 days

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized?

65

#103. When employees are covered by group insurance, they receive

A certificate of insurance.

#62. The legal definition of "person" would NOT include which of the following?

A family

#62. A person caught violating provisions regarding misrepresentation could be subject to

A fine up to $25,000.

#13. Employers can reduce health plan costs by coupling a Health Reimbursement Account (HRA) with

A high deductible health plan.

#24. Which of the following best describes a misrepresentation?

A statement intended to distract, mislead, or deceive a party to a contract.