insurance exam
Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?
Guaranteed renewable
Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements?
HMO
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
A catastrophic illness would be best covered by which of the following health insurance plans? A. Major Medical B. Limited C. Indemnity D. Surgical Expense
Major Medical
What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?
Waiver of premium rider
which documents MUST accompany an application that initiates the replacement of an existing life insurance policy?
a signed statement by the applicant regarding the replacement
which provision is NOT a requirement in a group life policy?
accidental
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
along with a decrease in premium
in Georgia, which of the following statements is CORRECT about life insurance advertisements?
an insurance agency is responsible for advertisements placed by its insurance agents
When is a group accident and health policy required to provide coverage for a newborn child?
at the moment of birth
what's the requirement for a nonresident agent license applicant?
being a licensed agent in the agent's home state
A life insurance application must be signed by all of these, EXCEPT:
beneficiary
what is considered to be a characteristic of an immediate annuity?
benefit payments start within one payment period of purchase
all of the following statements about Major Medical benefits are true, EXCEPT
benefits have no maximum limit
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim?
claim will be denied
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
An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?
consideration clause
A prospective insured completes and signs an application for health insurance but intentionally conceals information about a pre-existing heart condition. The company issues the policy. Two months later, the insured suffers a heart attack and submits a claim. While processing the claim, the company discovers the pre-existing condition. In this situation the company will:
continue coverage but exclude the heart condition
A Universal Life policy is sometimes referred to as un unbundled Life Policy because the owner can see the interest earned, expense charges, and the
cost of insurance
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?
deferred
Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
disability income policy premiums are tax deductible
a characteristic of preferred provide organizations (PPOs) would be:
discounted fees for the patient
how often must an insurance agent license be renewed in Georgia?
every 2 years
D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?
ex-wife
The reason for a business having a Business Overhead Expense Disability Plan is to cover
fixed business expenses
In Georgia, an example of an alien insurer would be one that is incorporated in
france
Nonprofit life insurance providers that are covered by a special section in the Georgia insurance code are called
fraternal life insurance organization
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
free look period has expired
A life insurance application may be rejected on the basis of all these factors except A. medical history B. hobbies C. gender D. weight
gender
which of the following provisions specifies how long a policy owner's health coverage will remain in effect if the policy owner does not pay the premium when it is due?
grace period
With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's
gross income at the time of purchase
which of the following statements is CORRECT about an agent who is taking an insurance application?
the agent should have the applicant initial any changes made on the application
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
the current contract surrender value
a noncontributory group term life plan is characterized by:
the entire cost of the plan is paid for by the employer
during the application process, the agent's primary responsibility is to:
the insurance company
J, and Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained by an accident. J's age, as stated on the application five years ago, was found to be understated by ten years. Which of the following actions will the insurance company take?
the insurer will adjust the benefit to what the premiums paid would have purchased at the insurer's actual age
A(n) ____ rider may be used to include coverage for children under their parents' life insurance policy.
term
N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is
$1,250
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?
$50,000
The Commissioner must give ___ days notice prior to holding a hearing regarding an agent's unfair or deceptive practice
10 days
in Georgia, how long is the "free look" period?
10 days
in Georgia, monthly premium accident and sickness insurance policies must provide a grace period of at least
10 days
in Georgia, most life insurance policies have a contestability period of
2 years
Insurers may request a hearing within ___ if their policy is rejected
20 days
How long is the typical free look period for Long Term care insurance policies?
30 days
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?
36
Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.
6 months
All are true statements regarding the underwriting process, EXCEPT:
AIDS and HIV virus exams can be conducted in a discriminatory fashion
Under a Long Term Care policy, which benefit would be typically excluded or limited?
Alcohol Rehabilitation
P loses an arm in a farm accident and is paid $10,000 from his Accidental Death and Dismemberment policy. This benefit is known as the
Capital Sum
When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates?
Change of occupation provision
Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on
March 1
Which of these life products is NOT considered interest-sensitive?
Modified Whole Life
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she chose?
Paid-Up Additional Insurance
The provision that defines to whom the insurer will pay benefits to is called
Payment of claims
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be payable to K's estate if P dies within a specified time
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary?
Split-Dollar Plan
which of the following BEST describes a warranty?
Statement guaranteed to be true
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?
guaranteed insurability option rider
X is insured with a disability income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain?
guaranteed renewable
T sends proof of loss to her insurer for an acceptable medical expense claim under her individual Health Insurance policy. Upon receipt, the insurer must pay the benefits
immediately
Who makes the legally enforceable promises under a unilateral insurance policy?
insurance company
an insurance company normally has 2 years to contest information provided on a accident and health application. This 2 year period begins on the date that the:
insurer dates the policy
The ___ clause identifies which losses resulting from an accident or sickness are insured by the policy
insuring
a foreign insurance company doing business in Georgia
is a company that was formed under the laws of another state
K is an insured under a life insurance policy owned by a third party. Which of these statements is true?
k has no ownership rights
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
level
Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies?
long-term care
an insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?
loss of eyesight due to an accidental injury
under a guaranteed renewable health insurance policy, the insurer
may cancel the policy for nonpayment only
According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options?
monthly
What type of renewability guarantees premium rates and renewability?
non cancellable
When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?
none
Which of the following actions is required by an insured who leaves the primary area of medical coverage and seeks medical care?
obtain prior approval from the insurer for the medical service
An example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
Whole Life Insurance policies are contractually guaranteed to provide each of the following EXCEPT:
partial withdraw features beyond a surrender charge period
The ___ is authorized to assign a Life Insurance policy as collateral for a loan.
policy owner
what is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?
premiums may increase at time of renewal
which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities?
prepared sales presentations used by insurance agents
consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determinate:
probability of making timely premium payments
When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits?
recurrent disability
which of the following is an example of a nonforfeiture option?
reduced paid-up option
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
reimbursement
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
request of the change will be refused
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
With Optionally Renewable Health policies, the insurer may
review the policy annually and determine whether or not to renew it
S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?
single premium
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
social security
Under a Renewable Term policy, A. the face amount is automatically adjusted at the time of renewal B. evidence of insurability must be provided at each renewal C. the renewal premium is calculated on the basis of the insured's attained age D. a new application must be completed at each renewal
the renewable premium is calculated on the basis of the insureds attained age
the consideration clause of an insurance contract includes
the schedule and amount of premium payments
Medicare is intended for all of the following groups EXCEPT
those enrolled as a full-time student
which accident and health policy provision addresses preexisting conditions?
time limit on certain defenses
A Business Disability Buyout plan policy is designed:
to pay benefits to the Corporation of other shareholders
an insurance agent is guilty of ____ if the agent misrepresents a policy to induce a policy owner to surrender an existing policy.
twisting
Which of the following phrases refers to the fees charged by a healthcare professional?
usual, customary, and reasonable expenses
In order to sell a (n)____ Life policy, a producer is required to register with financial Industry Regulatory Authority (FINRA).
variable
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a(n)
variable universal life policy
When must insurable interest be present in order for a life insurance policy to be valid?
when the application is made
at what point does a Whole Life Insurance policy endow?
when the cash value equals the death benefit
What does the ownership clause in a life insurance policy state?
who the policy owner is and what rights the policy owner is entitled to
