Insurance
#17. When assessing needs for life insurance, an individual may use retention, which means
Keeping a life insurance policy until death.
#97. If a long-term care policy contains a return of premium feature, and the insured dies, the insurer will return
a)A percentage of the paid premiums.
#21. The insurance component of a Universal Life policy is what type of insurance?
a)Annual Renewable Term
#54. Which of the following is true regarding commission sharing by insurance agents?
a)Commissions can only be shared with a person authorized and licensed in the same line of authority.
#63. Which of the following statements is true regarding common exclusions from health coverage?
a)Cosmetic dental surgery may be paid by health insurance if the surgery is necessary due to an accident.
#73. Which of the following is a private health insurance plan?
a)Medicare supplement policies
#22. For which of the following reasons can the Department of Financial Services issue a temporary license?
a)Servicing existing business
#86. When an annuity is surrendered early, the annuitant will receive
a)The annuity value minus the surrender charge.
#55. The loan value of a whole life policy is limited to the policy's
c)Cash value.
#47. Regular premium payments made to purchase an individual nonqualified annuity are
d)Nondeductible.
#43. What is a primary difference between an HMO and a traditional insurance company?
d)The HMO provides both the financing and patient care for its members, while traditional companies provide the financing only.
#1. An insured owns a life policy for $100,000. Due to a terminal illness, the insured had to withdraw $20,000 from the policy 2 years before his death. Since the amount was withdrawn, the insurance company lost $200 in interest. Upon the insured's death, what amount will the beneficiary receive?
b)$79,800
#27. Which of the following is TRUE regarding a joint life policy?
b)Premium is based on the average age of the insureds.
#3. After a policy had been in effect for 18 months, a claim was submitted. The insurer determined that the insured had made a material misstatement on the application for coverage. The insurer would probably do which of the following?
b)Contest the claim
#67. All of the following are characteristics of group health insurance EXCEPT
b)Groups may be formed for the purpose of purchasing insurance.
#23. To be eligible for coverage under the Health Insurance Marketplace, an applicant must meet all of the following qualifications EXCEPT
b)Have been previously insured by a private insurer
#5. Under which of the following circumstances may the uniform individual accident and sickness policy provisions be changed?
b)If the change is more favorable to the policyholde
#26. An annuity pays a monthly amount for the remainder of the annuitant's life. If death occurs before the principal is exhausted, the remaining amount will be paid to a designated beneficiary. Which payment option has this annuitant selected?
b)Refund life
#83. Under what circumstances will the Superintendent issue a replacement life settlement broker's license?
b)The license is active, but has been lost or destroyed.
#66. Which of the following are the features of a variable life insurance policy?
d)Fixed premium, guaranteed minimum death benefit, separate accounts
#95. All of the following statements regarding Medicare Supplement insurance are true EXCEPT
d)Insurers use the traditional risk rating of preferred, standard, and substandard in underwriting.
#50. In long-term care (LTC) policies, the longer the elimination period,
b)The lower the premium.
#61. Which of the following is NOT an IRS requirement for a qualified retirement plan?
b)The plan must favor shareholders.
#32. Which of the following persons would qualify for Medicare Part A?
c)Anyone who has permanent kidney failure
#94. Under which of the following riders will the insurer both waive policy premiums and pay monthly income to the insured if the insured is disabled?
c)Disability Income Benefit Rider
#37. What is the minimum required annual benefit level increase in long-term care policies to protect the insured from inflation?
c)5%
#44. A life settlement transaction is an option for all of the following insureds EXCEPT
c)An insured who wants to assign the policy as collateral for a loan.
#39. Which of the following nonforfeiture options of a life insurance policy allows a policyowner to use the cash value to purchase additional insurance of the same type?
c)Reduced paid-up
#93. When an insured chooses the indemnity method of benefit payment, the insurer will pay
c)The fixed benefit amount, regardless of the actual charge.
#51. Which of the following is NOT true regarding the policy summary?
a)The policy summary may be part of the policy.