Guaranteed exam attempt 1

Under the Conditions for Pavment Form an insurer mav require ail of the followins conditions to be met in order to pay accelerated death benefits EXCEPT A) The insured paying all necessary medical fees for the diagnosis of a medical condition. b) The written consent of a beneficiary. C) A second medical opinion on the diagnosis of the insured's medical condition. d) A probationary period of no more than 1 year.

d) A probationary period of no more than 1 year.

A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes disabled, the monthly benefit payable under his policy will be

$2,500

How many excess continuing education credit hours may a licensee carry forward from one licensins period to the next?

24

All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT The customer must be notified if adverse action is taken as a result of a report Reports may be sent to anyone who requests one Insurers are not required to give customers copy of the report It applies to credit reports ordered in connection with insurance, banking, and employment

Reports may be sent to anyone who requests one

Which of the following is NOT true regarding term health coverage The policy expires at the end of the term The policy could be written as accident only policy The owner may renew the policy for a specified term The policy is issued for a specified period of time only

The owner may renew the policy for a specified term

An agent received some inaccurate information, and, as a result. he publicly misstated the financial condition of another entity 12 times over a period of 3 months. If this fact is revealed, the agent may face a fine up to a) $10,000 b) $5,000 c) $1,000 d) The agent will not be fined due to the unintentional violation.

a) $10,000

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 upon which the underwriting decision was made. d) Usually included in the "entire contract"

b) Not included in the "entire contract"

When may HIV-related test results be provided to the MIB? a Only when the test results are negative b) Only if the individual is not identified c) Under all circumstances d) When given authorization by the patient

b) Only if the individual is not identified

An insured purchased a health insurance policy with a renewability clause that states the policy is "Guaranteed Renewable." This means that as long as the required premiums are paid, the policy will continue until the insured a) Becomes disabled. b) Reaches age 65. c) Dies. d) Reaches age 100.

b) Reaches age 65.

Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options? a) The amount of payments is based on the recipient's life expectancy. b) The size of installments decreases after certain period of time. c) Both guarantee payments for the life of the beneficiary d) Both guarantee that the principal and interest will be fully paid out.

d) Both guarantee that the principal and interest will be fully paid out.

Contributions to Roth IRAs are a) Always subject to a 6% tax penalty. b) Paid with pre-tax dollars. c) Not tax deductible. d) Tax deductible.

c) Not tax deductible.

Which of the following must be listed by producers during replacement? a) Policies still in force and policies sold during the past 5 years b) Policies that cannot be replaced c) Policies still in force d) Policies sold during the past 5 years

a) Policies still in force and policies sold during the past 5 years

Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured? a) 3 calendar days b) 10 working days c) 15 working days d) 30 calendar days

b) 10 working days

In a viatical settlement, a person is considered "terminally ill" if he is not expected to live longer than a 12 months. b) 24 months. c 6 months di9 months.

b) 24 months.

All of the following are reasons for group insurance termination for dependents EXCEPT a) The overall maximum benefit for major medical benefits is received. b) The dependent reaches age 21 c) The dependent fails to meet the definition of a dependent. d The end of the last period for which the employee has made the required premium for dependent coverage passes

b) The dependent reaches age 21

Which of the following would be required to become licensed as an insurance producer? a) Agency supervisor whose actions do not include selling insurance b) A person whose activities are limited to insurance advertising c) An officer of an insurer who does not receive commissions d) A customer service representative who solicits no more than one policy a year

d) A customer service representative who solicits no more than one policy a year

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 insurance company requests a medical examination. b) The applicant signs the conditional receipt. c) The producer delivers the policy. d) The insurance company accepts the risk.

d) The insurance company accepts the risk.

All group health insurance policies must cover mammographic examinations. The minimum coverage required must include all costs associated with a mammogram every year for women at least a) 40 years old b) 45 years old. c) 35 years old. d) 38 years old.

a) 40 years old

All of the following must sign an application for health insurance EXCEPT the a) Insurer b) The proposed insured. c) Applicant. d) Producer.

a) Insurer

An employee is covered under COBRA. His previous premium payment was $100 per month. His employer now collects $102 each month. Why does the employer collect an extra $2? a) To cover other employees who qualify to bypass premium payment b) To cover the employer's administration costs c) Penalty for termination d) Premiums go up every year regardless of health conditions

b) To cover the employer's administration costs

An individual acted as an exclusive general agent even though she was not licensed to do so. Since this offense occurred over a period of 60 days what is the maximum penalty she faces? a) $1,000 and a third-degree misdemeanor b) $10,000 and a second-degree felony c) $60,000 and a third-degree misdemeanor d) $60,000 and a second-degree misdemeanor

c) $60,000 and a third-degree misdemeanor

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

c) A policy is reissued with a reduction in cash value.

An agent is hand delivering an insurance policy to a policyowner. What must the agent obtain to complete the transaction? a) A statement of good health b): An agent's report c) A signed delivery receipt d) A conditional receipt

c) A signed delivery receipt

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? a) Uninsured b) Conditionally insured c) Currently insured d) Fully insured

c) Currently insured

I is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did I choose? a) Interest Only b) Joint and Survivor c) Fixed Amount d) Fixed Period

c) Fixed Amount

All of the following are true of the Sunivorship Life policy EXCEPT a) The premium would be lower than in a joint life policy. b) It can insure more than 2 lives. c) The premium is based on the age of each insured. d) The death benefit is not paid until the last death.

c) The premium is based on the age of each insured.

A person receives his Medicare supplement policy and is not satisfied with the provisions. He can return the policy for a full premium refund if he does so within how many days? a) 10 6) 15 c) 20 d) 30

d) 30

Which of the following best defines the Probationary Period in group health policies? a) The number of days the insured has to determine if he/she will accept the policy as received b) The stated amount of time when benefits may be reduced under certain conditions c) The number of days that must expire after the onset of an illness before benefits will be earned d) A specified period of time that a person joining a group has to wait before becoming eligible for coverage

d) A specified period of time that a person joining a group has to wait before becoming eligible for coverage

Which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed with a terminal illness that will result in death within 2 years? a) Long-Term Care Rider b) Cost of Living Rider c) Accidental Death Rider d) Living Needs Rider

d) Living Needs Rider

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as a) Fraud. b) Concealment c) Misrepresentation. d) Twisting

d) Twisting

An insured wants to cancel her health insurance policy. Which portion of the contract would explain cancellation rights? a) Consideration clause b) Renewability provision c) Exclusions d) Insuring clause

b) Renewability provision