insurance exam
long term care policies MUST cover
Alzheimer disease
Int terms of social security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse many receive retirement benefits
Blackout period
A producer who fails to segregate premium monies from his own personal funds is guilty of
Commingling
A health insurance plan that covers all accidents and sicknesses that are not specifically excluded from the policy is referred to as a
Comprehensive plan
A universal life insurance policy 2 type interest rate
Guaranteed and Current
Who has the ability to request the change of a life policy beneficiary?
Insured
a long term insurance shopper guide must be provided in the format developed by which of the following
NAIC
Which of the following must be present in all medicare supplement plans?
Plan A
When an insured under a life insurance died, the designated beneficiary received the face amount of the policy as well as refund of all of the premiums paid, Which rider is attached to the policy?
Return of premium
which of the following is Not a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds death
a minor son of the insured
under which of the following circumstances would an insurer pay accelerated benefits?
an insured is diagnosed with cancer and needs help paying for her medical treatment
a business entity acting as an insurance producer is required to do all of the following EXCEPT
be a public-ally owned company
representations are written or oral statement made by the applicant that are
considered true to the best of the applicants knowledge
which of the following statements regarding HIV testing for life insurance purposes is NOT true
insurers are barred from requesting HIV testing
all of the following actions by a person could be described as risk avoidance EXCEPT
investing in the stock market
state law specifically prohibits using illegal inducements in the marking of insurance, all of the following would be considered illegal inducements EXCEPT
inviting prospective clients to the grand opening of the company new office
which of the following best describes taxation during the accumulation period of an annuity
taxes are deferred
which of the following when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount to temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members
term rider
which of the following would qualify as a competent party in an insurance contract?
the applicant has a prior felony convivtion
in group life insurance policy the employer may select all of the following EXCEPT
the beneficiary
in Alabama, domestic insurance companies may be examined by the commissioner or by an examiner designated by
the commissioner
a group of 15 skydivers met at a seminar and began talking about life insurance during a break. because it was expensive to get individual life insurance, they decided to band togeather to form a small group so that they could qualify for group life insurance. after they applied for group life insurance they were rejected. why?
the purpose of the group was to purchase life insurance
under an extended term non forfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
an insured has chosen joint and 2/3 survivor as the settlement option. what does this mean to the beneficiaries?
the surviving beneficiary will continue receiving 22/3 of the benefit paid when both beneficiaries were alive
which is generally true regarding insureds who have been classified as preferred risks
their premiums are lower
all of the following are characteristics of a group life insurance plan EXCEPT
there is a requirement to prove insurability on the part of the participants.
what kind of policy allows withdrawals or partial surrenders
universal life
which of the following is NOT a factor in determining qualifications for Social Security disability benefits
workers occupation
in order to collect social security disability, the claimant must be able to demonstrate that the disability will last at least
12 months
benefit periods for individual short-term disability policies will usually continue from
6 months to 2 years
According to the entire contract provision, a policy must contain
A copy of the original application for insurance
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated
what insurance concept is associated with the names weiss and fitch
guides describing company financial integrity
if an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
it is only taxable if the cash value exceeds the amount paid for premiums
which of the following is INCORRECT concerning medicaid?
it is solely a federally administered program
variable whole life insurance is based on what type of premium
level fixed
your client wants both protection and savings from insurance and is willing to pay premiums until retirement at age 65, what would be the right policy for this client?
limited pay whole life
all of the following are considered to be basic benefits of an HMO plan EXCEPT
prescription drugs
which rule would apply if an agent knows an applicant is going yo cash in an old policy and use the funds to purchase new insurance
replacement rule
all of the following are beneficiary designations EXCEPT
specified
when the insurer stipulates the time period for payment of claims, how soon must the insurer pay a death benefit claim after receiving the proof of death
2 months
every small employer carrier must actively offer to small employers at least how many health benefit plans
2 plans
what is the waiting period on a waiver of premium rider in life insurance policies?
6 months
according to the PPACA rules, what percentage of health care costs will be covered under a bronze plan
60%
under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
90 days of a loss
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount
level term insurance provides a level death benefit and a level premium during the policy term. if the policy renews at the end of a specified period of time, the policy premium will be
adjusted to the insureds age at the time or renewal
the policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as
the policy contains sufficient cash value to cover the cost of insurance
all of the following are true about variable products EXPECT
the premiums are invested in the insurer's general account
An HSA holder who is 65 years old decides to use the money in the account for nonhealth expense. which of the following is true
there will be tax
which of the following statement regarding conditional receipt is is true?
they are temporary insuring agreements
an insurance company wants to obtain the insurance history of an applicant. which source releases coded information to insurers regarding information included on previous insurance applications?
medical information bureau
to sign up for a medicare prescription drug plan, individuals must first be enrolled in
medicare Part A
which of the following is NOT true regarding minors purchasing insurance policies in this state?
minors at the age of 14 are allowed to buy their own policies
what was created to keep telemarketers from calling consumers who do not wish contacted
national do not call registry
attempting to determine how much insurance an individual would require based upon their financial objectives is known as
needs approach
which of the following insurers are owned by stockholders who have usual rights of ownership, including the right of voting?
stock
which of the following describes the tax advantage of a qualified retirement plan
the earnings in the plan accumulate tax deferred
what federal legislation provided incentives to health care provider by giving grants for them to solicit subscribers, loan guarantees to cover initial deficits and through the Act, force employers with more than 25 employees to offer the health care provider as an alternative to their regular health plan
the health maintenance act of 1973
in a group policy, who is issued a certificate of insurance?
the individual insured
when Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss, however, her agent did not notify the insurance company until 60 days after the loss. which of the following statement correctly explains how this claim would be handled?
the insurer is considered to be notified since the notification to agent equals notification to the insurer
an insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. what organization can help the insurer accomplish this
the medical information bureau
if the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?
adjust the benefit in accordance with the increases risk
when an insured purchases her disability income policy, she misstated her age to the agent. she told the agent she was 30 years old, when in fact she was 37. if the policy contains the optionsal misstatement of age provision
amounts payable under the policy will reflect the insured correct age
a universal life insurance policy is best described as a/an
annually renewable term policy with a cash value account
an insured receives an annual life insurance dividend check. what term best describes this arrangement?
cash option
which of the following scenarios will incur a 10% tax penalty on distributions
distributions are made on a policy before age 59 1/2
when the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
equal to the original policy for as long as the cash values will purchase.
the authority granted to an agent through the agents contract is referred to as
express authority
which nonforfeiture option has the highest amount of insurance protection?
extended term
what option allows the insured to periodically increase benefit levels without providing evidence of insurability
guarantee of insurability
at the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. this rider is called?
guaranteed insurability
the type of term insurance that provides increasing death benefits the insured ages is called
increasing term
what would be an advantage to naming a contingent beneficiary in a life insurance policy?
it determines who receives policy benefits if the primary beneficiary is deceased
in which of the following situation is it legal to limit coverage based on marital status
it is never legal to limit coverage based on martial status
which of the following applies to the 10-day free look privilege?
it permits the insured to return the policy for a full refund of premiums paid
a married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured
joint life policy
all of the following are true regarding the guaranteed insurability rider EXCEPY
this rider is available to all insureds with no additional premium
what is the purpose of life insurance solicitation regulations?
to help consumers compare life insurance products in regard to their relative cost
which of the following is NOT the purpose of HIPAA
to provide immediate coverage to new employees who had been previously covered for 18 months
when an individual purchases insurance, what risk management tecnique is he or she practicing?
transfer
which of the following life insurance policies would be considered interest sensitive
universal life
an insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. the insured knows that his financial state will worsen even more with the upcoming medical expenses. what option could the insured utilize?
viatical settlement
what is a penalty tax for non qualified distributions from a health saving account
20%
following an injury, a policyowner covered under medicare parts A & B was treated by her physician on an outpatient basis. how much of her doctors bill will she be required to pay out of pocket
20% of covered charges about the deductible
The relation of earnings to insurance provision allows the insurance company to limit the insured benefits to his/her average income over the last
24 months
a 35 year old spouse of the insured collects early distributions from her husband retirement plan as a result of a divorce settlement. what penalties, if any,will she have to pay
no penalties
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
an insured has a continuous premium whole life policy. she would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. what dividend option could she use?
paid-up option
a participating insurance policy may do which of the following?
pay dividends to the policyowner
when a whole life policy lapses or is surrendered prior to maturity, the cash value can used to
purchase a single premium policy for a reduced face amount
should an authorized insurance company have their certificate of authority suspended, during the period of the suspension, the insurer must do all of the following EXCEPT
reapply for the certificate of authority
during which income period does the surviving spouses working income ceases and the social security begin?
retirement
justyne a widow is retiring from her job and will soon receive social security benefits which income period is justyne about to enter?
retirement period
blue cross and blue shield organizations are
service organizations
an employee has a group life insurance through her employer. after 5 years she decides to leave the company and work independently. how can she obtain an individual policy?
she can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan
if a firm has 30 employees that were actively engaged in business 75% of working days during the preceding calendar quarter, what is its classification
small employer
the clause that protects the proceeds of life insurance policy from creditors after the death of the insured is known as the
spendthrift clause
