Insurance Licensing Questions
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of A) Rebating B) Coercion C)Twisting D) Controlled Business
A) Rebating
What is the shortest possible elimination period for group short-term disability benefits provided by an employer? A) 0 days B) 30 days C) 60 days D) 90 days
A) 0 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A) 3 days B) 5 days C) 10 days D) 14 days
A) 3 days
Which of the following groups seeking group health insurance would represent a bad risk for underwriters? A) A group that changes insurance annually B) A group that pays a low monthly premium C) A group that has a noncontributory plan D)A group that has a large number of members
A) A group that changes insurance annually
The two types of assignments are A) Absolute and collateral. B ) Absolute and partial. C) Complete and partial. D) Complete and proportionate.
A) Absolute and collateral
A Universal Life insurance policy has two types of interest rates that are called A) Guaranteed and Current B) Option A and Option B C) Fixed and Variable D) Minimum and Target
A) Guaranteed and Current
Who makes up the Medical Information Bureau? a) Insurers b) Hospitals c) Former insured d) Physicians and paramedics
A) Insurers
Which of the following is TRUE of a qualified plan? A) It has a tax benefit for both employer and employee B) It does not need to have a vesting schedule C) It may discriminate in favor of highly paid employees D) It may allowed unlimited contributions
A) It has a tax benefit for both employer and employee
Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses? A) The insurer will return a percentage of premiums paid B) The insurer will not returns any premiums in the case the policy is allowed to lapse C) The premium will only be returned if the insured dies D) The insurer will return all of the premiums paid
A) The insurer will return a percentage of the premiums paid
All of the following statements are true regarding installments for a fixed amount EXCEPT A) The payments will stop when the annuitant dies B) Value of the account and future earnings will determine the time period of the benefits C) The option pays a specific amount until the funds are exhausted D) The annuitant may select how big the payments will be
A) The payments will stop when the annuitant dies
Which of the following is a key distinction between variable whole life and variable universal life products? A) Variable whole life has a guaranteed death benefit B) Variable universal life is regulated solely through FINRA
A) Variable whole life has a guaranteed death benefit
In all health care plans under the Affordable Care Act (ACA), how many essential benefit categories are there? A) 5 B) 10 C) 12 D) 15
B) 10
If the appointment of any insurance producer is to be terminated, the Director must be notified by the insurer within how many days of that termination? A) 15 B) 30 C) 5 D) 10
B) 30
Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe? A) Assumed B)Apparent C) Express D) Implied
B) Apparent
All of the following are true regarding Key Employee Disability Income insurance EXCEPT A) Premiums are not tax deductible for the employer B) Benefits are taxable to the employer C) The employer owns the policy D) Benefits are paid to the employer to retrain a new person
B) Benefits are taxable to the employer
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n) A) Attending Physician Statement B) Inspection report C) Medical Information Bureau report D) Medical examination
B) Inspection report
Which of the following is correct about a group health insurance policy? A) It cannot exclude coverage for VA hospital treatment B) It can provide coverage for handicapped children C) It cannot exclude coverage from an occupational accident D) It can exclude newborn children from coverage
B) It can provide coverage for handicapped children
What type of dental care would cover operative treatment of the mouth? A) Orthodontics B) Oral surgery C) Restorative D) Endodontics
B) Oral surgery
Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT A) The loss is produced by the risk must be definite B) The loss may be intentional C) The loss must not be catastrophic D) There must be a sufficient number of homogeneous exposure units to make losses reasonably predictable
B) The loss may be intentional
An insured stops making payments on a loan taken from his cash value policy. What will most likely happen? A) The policy will be reduced to an extended term option B) The policy will terminate when the loan amount with interest equals or exceeds the cash value C) The insurer will increase the rate on the loan and charge a penalty D) The insurer will not permit the policy owner to take out any more loans
B) The policy will terminate when the loan amount with interest equals or exceeds the cash value
COBRA applies to employers with at least A) 60 employees B) 50 employees C) 20 employees D) 80 Employees
C) 20 employees
Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months? A) 12 months B) 24 months C) 30 months D) 36 months
C) 30 months
All of the following apply to short-term disability plans EXCEPT A) Individual plans can provide benefit periods of up to 2 years B) A benefit period of 26 weeks is most common for group plans C) Both group and individual plans are renewable D) Group plans can provide a benefit period up to 52 weeks
C) Both group and individual plans are renewable
An association could buy group insurance for its members if it meets all of the following requirements EXCEPT A) Holds annual meetings B) Is contributory C) Has at least 50 members D) Has a constitution and by-laws
C) Has at least 50 members
When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force? A) Active physician B) Agent C) Insurer D) State government
C) Insurer
An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits? A) Partial Benefits B) Full benefits until the blindness lifts C) No benefits D) Full Benefits
C) No benefits
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the A) Buyer's Guide B) Certificate of Coverage C) Notice Regarding Replacement D) Policy application
C) Notice regarding replacement
Which of the following is correct regarding the taxation of group medical expense premiums and benefits? A) Premiums are not tax deductible and benefits are not taxed B)Premiums are tax deductible and benefits are taxed C) Premiums are tax deductible and benefits are not taxed D) Premiums are not tax deductible and benefits are taxed
C) Premiums are tax deductible and benefits are not taxed
Insurance producers must ensure that contracts they recommend are in the best interest of the insured. This is called A) Approval B) Underwriting C) Suitability D)Client protection
C) Suitability
All of the following are ways in which a Major Medical policy premium is determined EXCEPT A) The coinsurance percentage B) The stop-loss amount C) The average age of the group D) The amount of the deductible
C) The average age of the group
If a policy is rated-up, which of the following is true? A) The number of exclusions decreases B) The number of benefits increases C) The premium increases D) The premium decreases
C) The premium increases
According to OBRA, what is the minimum number of employees required to constitute a large group? A) 15 B) 20 C) 50 D) 100
D) 100
When an employee terminates coverage under a group insurance policy, coverage continues in force A) 60 days B) Until the employee can obtain coverage under a new group plan C) Until the employee notifies the group insurance provider that coverage conversion policy is issued D) 31 days
D) 31 days
An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued? A) Deny any claims and cancel the policy B) Deny paying a claim based on misrepresentation C) Pay the full amount of a claim because the contestable period has ended D) Adjust the claim benefit to reflect the insured's true age
D) Adjust the claim benefit to reflect the insured's true age
Which of the following is the closest term to an authorized insurer? A) Certified B) Licensed C) Legal D) Admitted
D) Admitted
The gatekeeper of an HMO helps A) Determine who will be allowed to enroll in an HMO program B) Prevent double coverage C) Determine which doctors can participate in an HMO plan D) Control specialist costs
D) Control specialist costs
In which of the following cases would a cred disability policy be issued? A) If a person receives disability benefits, they are eligible for credits on their group policies for future disabilities B) A person receiving disability benefits cannot receive a credit disability policy C) If an insured has filed bankruptcy and his premiums are waived he can be issued a credit disability policy D) If an individual is in debt to a specific creditor, payments will be made for them until they return to work
D) If an individual is in debt to a specific creditor, payments will be made for them until they return to work
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? A) Apparent B) Assumed C) Express D) Implied
D) Implied
The Medical Information Bureau (MIB) was created to protect A) Insurance departments from lawsuits by policy owners B) Insureds from unreasonable underwriting C) Medical examiners that perform insurance physical examinations D) Insurance companies from adverse selection by high risk persons
D) Insurance companies from adverse selection by high risk persons
Which type of dental care would cover the cost of fillings? A) Endodontics B) Orthodontics C) Oral surgery D) Restorative
D) Restorative
Under what condition are group disability income benefits received by an employee NOT taxable as income? A) When the employer makes all the premium payments B) When the employee is 59 1/2 C) When the amount of the benefit is equal or less than the amount contributed by the employer D) When the benefits received are equal or less than the employee's percentage of the contribution
D) When the benefits received are equal or less than the employee's percentage of the contribution
