Guarantee Exam 2

When may HIV-related test results be provided to the MIB? A. Only if the individual is not identified B. Under all circumstances C. When given authorization by the patient D. Only when the test results are negative

A. Only if the individual is not identified

Which of the following best describes the type of care provided by HMOs? A. Preventative B. Elective C. Major medical D. Fee-for-service

A. Preventative

An insured had a heart attack while jogging but is expected to return to work in approximately 6 weeks. The insured's Disability Income policy will A. Replace a percentage of his lost income B. Cover injuries only C. Not pay D. Pay a lump sum benefit

A. Replace a percentage of his lost income

Guaranteeing future dividends is considered to be an unfair or deceptive act known as A. Twisting B. False financial statements C. Rebating D. Misrepresentation

D. Misrepresentation

Under the Affordable Care Act, when would pregnancy be considered a pre-existing condition? A. Only if specifically excluded by the insurer B. If it begins before the coverage takes effect C. Always D. Never

D. Never

Under HIPAA portability, which of the following are NOT protected under required benefits? A. Groups of one or more B. Self-employed C. Pregnant women D. Mentally Ill

A. Groups of one or more

Under the long-term care marketing regulations, which of the following questions would a producer NOT have to ask the applicant in order to determine if the purchase is suitable? A. How much are you able to pay in premium? B. Do you currently have any Medicare supplement policies? C. Are you planning to replace an existing health insurance? D. What is the amount of your existing health or long-term care insurance?

A. How much are you able to pay in premium?

Which of the following is NOT a Medicaid qualifier? A. Insurabiltiy B. Income level C. Age D. Residency

A. Insurability

If an insured pays a health insurance premium each month, how long would the grace period be under the policy? A. 7 days B. 10 days C. 14 days D. 25 days

B. 10 days

The benefit for group disability plans are based on A. The number of employees of the company B. A percentage of the worker's income C. A flat amount D. The employer's net worth

B. A percentage of the worker's income

According to the life insurance replacement regulations, which of the following would be an example of policy replacement? A. A lapsed policy is reinstated within a specific timeframe B. A policy is reissued with a reduction in cash value C. A term policy expires, and the insured buys another term life policy D. Term insurance is changed to a Whole Life policy

B. A policy is reissued with a reduction in cash value

Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy? A. A Covered Peril Rider B. An Accidental Death Rider C. A Double Indemnity Rider D. A Guaranteed Insurability Rider

B. An Accidental Death Rider

Which of the following documents used in the underwriting process contains specific medical details about an applciant? A. Application B. Attending Physician's Statement (APS) C. Statement of Good Health D. Agent's report

B. Attending Physician's Statement (APS)

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will A. Reduce to the pre-surrender value B. Continue to increase C. Remain the same D. Decrease over time

B. Continue to increase

An insurance agent who represents multiple companies on a nonexclusive basis and earns commission on personal sales is working in what kind of marketing system? A. Managerial System B. Independent Agency System C. Exclusive Agency System D. General Agency System

B. Independent Agency System

Which of the following is NOT true of the agent's implied authority? A. It is given to an agent by the insurance company that is not specifically communicated B. It is specifically stated in the contract C. It is assumed by the agent in order to transact the business of insurance D. It is incidental to express authority

B. It is specifically stated in the contract

Which of the following statements is TRUE regarding an Agent's Report during the policy application process? A. It is a required element of the contract B. It provides the agent's personal observations concerning the proposed insured C. It is only used when the initial premium is not paid with the application D. It becomes part of the entire contract after the policy is issued

B. It provides the agent's personal observations concerning the proposed insured

An individual buys a disability policy May 1 with a waiver of premium rider. The insured becomes disabled June 1. It is determined the insured is permanently totally disabled on July 1st, and he receives his first benefit payment on July 15.When does the waiver of premium provision start? A. May 1 B. June 1 C. July 1 D. July 15

B. June 1

All of the following statements are true about participating and nonparticipating policies EXCEPT A. Nonparticipating policies issue dividends to shareholders B. Nonparticipating policies issue dividends to policyowners C. They are sometimes referred to as par and non-par D. Participating policies allow a policyowner to share in a mutual company's divisible surplus in the form of dividends

B. Nonparticipating policies issue dividends to policyowners

Only the agent is involved in completing the agent's report. The agent's statement is A. Included in the "entire contract" B. Not included in the "entire contract" C. Only included in the "entire contract" if it provides information in which the underwriting decision was made D. Usually included in the "entire contract"q

B. Not included in the "entire contract"

An Equity Indexed Annuity will grow based upon A. A rate of interest determined by the banking system B. Performance of a recognized index C. Performance in a separate account D. Current interest rates

B. Performance of a recognized index

The benefits in Medical Expense Insurance are A. Taxed when they reach $25,000 per year B. Received income tax free by the individuals C. Taxable D. Nonexistent

B. Received income tax free by the individuals

Partial disability usually pays what percent of the total disability benefit? A. 10% B. 25% C. 50% D. 65%

C. 50%

In dental insurance, "predetermination of Benefits" or "Precertification" does which of the following? A. Allows the insurance company to refer the patient to a cheaper dentist B. Allows the dentist to charge more C. Avoid unnecessary care D. Is normally mandatory

C. Avoid unnecessary care

Which of the following is consideration on the part of the insurer? A. Paying the premium B. Underwriting C. Paying a claim D. Decreasing premium amounts

C. Paying a claim

A married couple purchase a life insurance policy on their newborn baby. They are 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 agent recommend? A. Automatic premium loan B. Waiver of premium C. Payor benefit D. Guaranteed insurability

C. Payor benefit

Which of the following will NOT be included in the buyer's guide? A. Explanation on how to choose the amount and type of insurance B. Basic information about life insurance policies C. Specific information about the policy D. Comparison of policy costs

C. Specific information about the policy

An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when A. The applicant signs the conditional receipt B. The producer delivers the policy C. The insurance company accepts the risk D. The insurance company requests a medical examination

C. The insurance company accepts the risk

How long is the grace period for an individual life insurance policy? A. 2 weeks B. 7 to 10 business days C. 3 months D. 1 month

D. 1 month

To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan? A. 100% B. 50% C. 65% D. 75%

D. 75%

A subscriber has been treated for a medical condition by his primary care physician for 3 months with experimental remedies without a significant health improvement before being referred to a specialist. Which of the following types of plans does the subscriber have? A. A limited benefit plan B. A fully-paid indemnity plan that covers his condition only at a specified provider C. Major medical insurance with a low deductible and low coinsurance D. A gatekeeper HMO plan to control the costs

D. A gatekeeper HMO plan to control the costs

How is a licensee's date of Continuing Education credit review determined? A. By the name of the company to which the licensee is appointed B. By the number of years the licensee has been a producer C. By the date on which he/she was initially licensed D. By the licensee's month and date of birth

D. By the licensee's month and date of birth

Which of the following meets the insured's personal needs, and is provided by nonmedical personnel? A.Skilled care B. Assisted living C. Intermediate care D. Custodial care

D. Custodial care

To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept? A. Indemnity B. Exposure C. Pure loss D. Insurable Interest

D. Insurable Interest

What happens to the copy of the application for health insurance once the policy is issued? A. It is filed with the Department of Insurance B. It is discarded C. It is returned to the insured D. It becomes part of the entire contract

D. It becomes part of the entire contract

Who determines if a particular group of employees can be excluded from group health coverage? A. The employee union B. The Department of Insurance C. The insurer D. The employer

D. The employer

When an insured terminates membership in the insured group, the insured can convert to A. Whole life with proof of insurability B. Term without proof of insurability C. Term with proof of insurability D. Whole life without proof of insurability

D. Whole life without proof of insurability