Insurance 1

Which of the following situations does not apply to the flood replacement rule?

-an existing policyholder purchases an additional policy from the same

P would like to purchase an annuity that will provide a lifetime of income stream beginning at age 60. Which of the following did she not buy?

-an immediate annuity.

The coordination of benefits provision exist in order to

-avoid duplication of benefit payment

What is not a given right of a policy holder?

-modify a provision in the insurance contract

Under an individual disability insurance policy, what is the minimum schedule of time in which claims must be paid to the insured?

-monthly

What is the most important factor when deciding how much disability income coverage an applicant should purchase?

-monthly income

The provision that defines whom the insurer will pay benefits to is called?

-payment of claims

A 15 year mortgage is best protected by what kind of life policy

-15 year decreasing term policy

K pays a 20,000 20 year endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

-20,000 death benefit

Which type of policy would offer a 40 year old the quickest accumulation of cash value

-20-pay life

According to the mandatory uniform policy provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid.

-31 days

Three law partners form a cross-purchase buy and sell agreement. This agreement is funded with individual life insurance. How many total life insurance policies are needed for this agreement?

-6 -each partner owns, is the beneficiary and pays the premiums for the life insurance of the other partners.

An insurer may normally delay the payment of cash value loan or surrender value for up to

-6 months

J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a predetermined price. What type of plan does J belong to?

-HMO -health maintenance organization

Which entity approves the insurance policy forms used in Florida

-OIR -office of insurance regulation

T was insured by individual disability income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by t in. What was described as arson. What actions will the insurer take?

-Rescind the policy, deny the claim, and recover all payments made

In Florida, deceptive advertising is considered to be?

-a form of misrepresentation

Decreasing term policy

-a life insurance policy written for a specific period of time with a death benefit that changes regularly according to a schedule

What do dread disease policies cover?

-a single specific disease or illness

Which provision is not a requirement in a group life policy?

-accidental

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

-adhesion

Which of the following is not required on every insurance application sold in Florida

-adress and phone number of agent

Twisting

-an agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurance agent can be taken out has committed twisting

How does an indexed annuity differ from a fixed annuity

-an indexed annuity differs from a fixed annuity in that indexed annuity owners may receive credited interest tied to the fluctuations of the linked index

An applicants medical information received from the medical information bureau may be furnished to the

-applicants physician

When does a probationary period provision become effective in health insurance contract?

-at the policy inception

In order to establish a health reimbursement arrangement (HRA), It MUST: x

-be established by the employer

Which is true concerning a variable universal life policy

-policy owner controls where the investment will go and the amount of the premium payment

What must be included in a medicare supplement policy outline of coverage?

-policys exceptions and limitations

Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost

-ppo -preffered provider organization

Insurance policies are considerate aleatory contracts because

-preformance is conditioned upon a future occurrence

A limited pay life policy has?

-premium payments limited to a specific number of years?

What can an individual use their medical flexible spending account to Pay for?

-prescription drugs

A major medical policy typically

-provides benefits for reasonable and necessary medical expenses, subject to policy limits

What is medicare part b?

-provides supplementary medical insurance to cover physician services, medical services and supplies not covered under part a -does not cover inpatient hospital services

With optionally renewable health policies, the insurer may?

-review the policy annually and determine whether or not to renew it

What statement best describes a warranty?

-statment garunteed to be true

The annuity that represents the largest possible monthly payment to an individual is a

-straight life annuity -pays the most because it is based only on life expectancy -creates risk that the annuitant might die and forfeit much of the value of the annuity to the insurance company

What is considered a right given to a policy owner

-surrender the policy cash value -assigment of ownership -change the revocable beneficiary

What is true if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made?

-the account can be rolled into the surviving spouses IRA

Upon policy delivery a signed good health statement is requested form the applicant. Why would this be necessary

-the initial premium was not submitted with the application

Who is normally considered to be the owner of a 403(b) tax sheltered annuity

-the participating employee

The advantage of reinstating an original life policy is

-the premiums are based on a younger age

Which of the following statements is true about most blue cross/blue shield organizations

-they are nonprofit organizations

Medicare is not intended for

-those enrolled as full-time students

Which accident and health policy provision addresses preexisting conditions

-time limit on certain defenses

A bussiness disability buyout plan policy is designed:

-to pay benefits to the corporation or other shareholders

What are typical characteristics of the nature of an insurance contract?

-unilateral -aleatory -adhesion

Scott needs a life insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for s would be?

-universal life -flexible premiums and adjustable death benefit

The free look provisin begins

-upon receipt of the policy by the policy owner

A variable annuity pays benefits based on units, rather than stated dollar amounts

-variable

What type of insurance allows the policy owner to have level premiums and to also choose from a. Selection of investment options?

-variable life

Which policy requires an agent to register with the national association of securities dealers before selling?

-variable life

Disability policies do not normally pay for disabilities arising from which of the following

-war

What type of insurance offers permanent life coverage with premiums that a payable for life?

-whole life

A return of premium life insurance policy is?

-whole life and increasing term.

A policy owner may generate taxable income from which of the following dividend options?

-accumulation of premium

what is not included under hospitalization expense coverage?

-surgical fees -does pay for daily room and board, intensive car and misc expenses

when is the face amount of a whole life policy paid?

When the insured dies or on the maturity of the policy, whichever comes first

what type of group insurance plan involves employees sharing cost?

contributory plan

K has an accidental death and dismemberment insurance policy where her husband is the beneficiary and her daughter is contingent. Under the common disaster clause, if k and her husband are both killed in a car accident, where would the death proceeds be directed? -

daughter

With a medical discount plan, how often would a person generally have to pay a fee to get discounts on specific services?

monthly

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made b p during the application process. Which of these actions will the insurer take

-beneficiary will be paid death benefit because it was after contestable period

Variable whole life insurance can be describes as

-both an insurance and a securities product

Wich statement about a whole life policy is true?

-cash value may be borrowed against

Endowment:

-characterized by cash values that grow at a rapid pace so that the policy matures or endows at a specified age before 100

A major medical policy typically contains a provision that requires the insurer to pay only part of a loss, while the balance is paid by the insured. This provision is called

-coinsurance

Which of the following best describes a hospital indemnity policy

-coverage that pays for a stated amount per day of a covered hospitalization

The combination of whole life and ___ term insurance is referred to as a family income policy

-decreasing term

How ares surrender charges deducted in a life policy with a rear end loaded provision

-deducted when the policy is discontinued

Which of the following statements does not accurately describe the tax treatment of premiums and benefits of an individual accident and health insurance

-disability income premiums are tax deductible What does -disability income is not tax deductible -major medical policy benefits are normally not tax deducted -disability income policy benefits are normally not taxed

characteristics of a health reimbursement arrangement

-employer funded medical reimbursement plans -reimbursements for eligible medical expenses are allowed -hra can be offered with other health plans

A noncontributory group term life plan is characterized by

-employer paying entire plan

What provisions are required in a HMO contract/certificate?

-enrollment -rates shall not be excessive -no pre-existing exclusions for children

D owns a whole life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which nonforfeiture option will the insurer likely proceed with?

-extended term -allows the policy owner to use cash value to purchase a term insurance policy with a death benefit equal to that of the original whole life policy

An underwriter determines that a life insurance applicants risk should be reclassified due to health issue. The policy may be issues with an

-extra premium

Which federal law allows an insurer to obtain an inspection report on potential insured?

-fair credit reporting act

The act of an insurance company publishing misleading information about its policy provisions is called?

-false advertising

Things that result in the suspension of an agents license: intentionally misrepresenting the provisions of a policy

-forging a name on an insurance application -being convicted of a felony

A nonforfeiture clause gives the policy owner?

-garunteed values even if the policy has lapsed

In Florida, insurer agents must offer and issue all small employer health plans on a ________ basis

-garunteed-issue

Variable life products require a producer to

-hold a life insurance license and a securities license

What should a producer do when submitting an insurance application to an insurer?

-inform insurer of relevant information not included with the application

A multiple employer welfare arrangement (MEWA) provides what type of benefits

-insurance

A life insurance arrangement which circumvents insurable interest statutes is called -

-investor originated life insurance -ioli

Who owns a stock company?

-its stockholders

In a major medical expense policies, what is the objective of a stop loss provision?

-limit an insureds out-of-pocket medical expense

What is considered a mandatory provision?

-misstatement of age

Life insurance policy with death benefit of 100,000. Shepays 600$ per year in premium for the first five years. The premium then increases to 900$ per year in the sixth year, and remains level thereafter. The policy death benefit also remains 100,000. What type of life insurance is this?

-modified premium life?

What are adjustable rates for life policy loans in Florida based on?

-moodys cooperate index

In Florida, what practitioners normally do not receive payment from health insurance policies?

-naturopaths

Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy

-notice to existing replacing insurers of. Intention to replace

The entity that would like to file a complaint against a life insurance agent. In Florida the entity that oversees these complaints is called the

-office of financial regulation

Upon reaching the limiting age, a disabled child may extend their health insurance coverage as a dependent

-only if the child is incapable of employment and chiefly dependent on the policy owner

K owns a whole life policy. If K wants an increasing Death Benefit to protect against inflation, which dividend option should she choose?

-paid up additional insurance

The benefits under a disability buy-out policy are?

-payable to the company or another shareholder

What juvenile life provision? garuntees that the premiums will be waved if a juvenile life policy owner becomes disabled

-payor clause

An insurer must provide an insured with claim forms within __ days after recieving notice

15

Disability income policys typically have a ____day elimination period

30