Guaranteed Exam - Missed Questions
When must insurable interest exist in a life insurance policy?
At the time of application
Which of the following provisions states the insurer's right to change premium amounts?
Continuation Provision
Which of the following losses would likely be covered under the Accidental Death rider?
Death caused by a head-on collision
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Decreasing term
Viatical settlements may be rescinding wihin what time period after the viator receives the proceeds?
15 days
The Insurance Commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every
5 years
The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. The annuity plan is
A nonqualified annuity plan
What is another name for interest-sensitive whole life insurance?
Current assumption life
Fixed annuities provide all of the following EXCEPT
Hedge against inflation
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
Which of the following used to be called Medicare + Choice Plans?
Medicare Advantage Plans
To sign up for a Medicare prescription drug plan, individuals must first be enrolled in
Medicare part A
Who bears all of the investment risk in a fixed annuity?
The insurance company
With Adjustable Life, the owner can change all of the following EXCEPT
The insured
Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?
The insured's primary beneficiary
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
Medicare is a health insurance program for all of the following individuals EXCEPT
Those with low income and low assets
Under workers compensation, which of the following benefits are NOT included?
Legal benefits
Which of the following settlement options in life insurance is known as straight life?
Life income
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
Reaches age 65
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
Revocable
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
What guarantees that the information explained in the insurance contract is true?
A warranty
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
A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following?
Cash to the owner's business partner to accomplish a buyout
The owner of a deferred annuity pays $100 in premium one month, and $130 the next month. Which of the following terms best describes this premium payment arrangement ?
Flexible premium
An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a Statement of Good Health, relinquishes the policy, and leaves. What did he do wrong?
He left the policy with the insured without collecting the premium
An insured has an individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?
He won't collect anything
Which of the following types of LTC is NOT provided in an institutional setting?
Home health care
Which of the following is NOT true regarding a deferred annuity?
Income payments begin within 1 year from the date of purchase
What type of insurance would be used for a Return of Premium rider?
Increasing Term
A guaranteed renewable disability insurance policy
Is renewable at the insured's option to a specified age
With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?
Only an executive officer to the company
Under a pure life annuity, an income is payable by the company
Only for the life of the annuitant
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
Paid-up additions
Which dividend option increases the death benefit?
Paid-up additions
Which of the following is consideration on the part of an insurer?
Paying a claim
The frequency and amount of the premium payment are known as what?
Premium mode
If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?
Supplementary major medical
Which of the following is true about requirements regarding HIV exams?
The applicant must give prior informed written consent
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only
According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT
Cervical cancer exams for all women starting at age 40
The owner of a small restaurant submits a claim to his insurer after a loss due to fire. The insurer's investigation finds a police report that shows that a fire may have been of suspicious origin. The insurer can do which of the following?
Delay an acceptance or rejection decision
All of the following are differences between individual and group health insurance EXCEPT
Individual insurance does not require medical examinations, while group insurance does require medical examinations
Which of the following is NOT true regarding a noncancellable policy?
Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
If an insured continually uses the automatic premium loan option to pay the policy premium,
The policy will terminate when the cash value is reduced to nothing
How does a member of an HMO see a specialist?
The primary care physician refers the member
If an applicant submits the initial premium with an application, which action constitutes acceptance?
The underwriters approve the application
An adjustable life policy can assume the form of
Either term insurance or permanent insurance
All of the following statements are true regarding installments for a fixed period annuity option EXCEPT
It is a life contingency option
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
Which is true regarding obtaining underwriting sources?
The applicant must be informed of the sources contacted and how the information is being gathered
Which of the following best describes the tax advantage of a qualified retirement plan?
The earnings in a qualified plan accumulate tax deferred.
Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
The employer is the owner and beneficiary
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?
To cover the employer's administration costs
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
Premiums paid by self-employed sole proprietors or partners for medical expense insurance are
Totally tax deductible
All of the following statements concerning dividends are true EXCEPT
Dividend amounts are guaranteed in the policy
A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?
Family term
An annuity owner receives the same guaranteed payment every month. What type of annuity is it?
Fixed
Which of the following statements in INCORRECT regarding the definition of total disability?
Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training, or experience.
Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?
Worker's occupation
A deductible is
a specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits
Which entity has the option of including optional provisions in a health insurance policy?
The insurer
A temporary license holder can receive a commission from a sale made to all of the following EXCEPT
The license holder's sister-in-law
