Insurance Life and Health Exam FX
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under and individual policy, if requested within 31 days?
Conversion
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 Days
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50*(premiums are lower) 75/25 80/20 90/10
The least expensive first year premium is found in which of the following policies.
Annually renewable term
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
Any form of Life Insurance
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must initial that change.
Applicant
What is the term used for an applicants written request to an insurer for the company to issue a contract based on the information provided?
Application
What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application.
As long as the policy is in force
An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?
Ask her to sign a statement of goodhealth
In a replacement situation, all of the following must be considered except?
Assets* Exclusions Benefits limitations
What is The Consolidated Omnibus Budget Reconciliation Act
COBRA
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a?
Convertible Term Policy.
What characteristic makes whole life permanent protection?
Coverage until death or age 100
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?
Family Term Rider
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
Insuring Clause
Which of the following policy components contains the company's promise to pay?
Insuring Clause
When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?
Interest Only
Which of the following programs expand individual public assistance programs for people with insufficient income and resources?
Medicaid
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is a
Modified endowment Contract
A man decided to purchase a 100,000 annually renewable term life policy to to provide additional protection until his children finished college. He discovered that his policy
Required a premium increase each renewal
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
Respite Care Home Health Care Custodial care in insureds house Skilled care*
What is the best way to change and application?
Start over with a fresh application
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
Which of the following would an accident-only policy not cover
Surgery to repair a wrist damaged by tendonitis (sickness)
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
Which of the following can legally bind coverage?
The Insurer
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?
The insured was in compliance with the policy requirements regarding claims.
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable Universal Life Insurance
Manny has been injured in an accident. Although she is still receiving benefits from her policy, she does not have to pay premiums. Her policy includes
Waiver of premium Rider
All of the following benefits are available under Social Security EXCEPT
Welfare Benefits
The main difference between immediate and deferred annuities is?
When the income payment begins
Which of the following statements regarding the taxation of modified Endowment Contracts is false?
Withdrawals are not taxable
Which of the following is NOT covered by medicare?
cosmetic surgery
COBRA applies to employers with at least?
20 employees
Which of the following is not a characteristic or a service of an HMO plan?
Contracting with insurance companies* Providing annual free checkups Encouraging early treatment Providing care on an out patient basis
An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?
Full Benefits
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. The rider is called?
Guaranteed insurability
Under the privacy for HIPAA protected information includes all individually identifiable health information
Held or transmitted in any form
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person
Which of the following is true regarding HIV exams?
The applicant must give prior informed written consent
Who may contribute to a Keogh (HR-10) plan?
self-employed plumber
L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay?
$900 (deductible + 20% of the bill after the deductible (20% of $2,000)
An individual purchased a 100,000 Joint Life Policy on himself and his wife. Eight years later he died in an automobile accident. How much will his wife receive from the policy?
100,000
Which of the following statements is TRUE concerning the accidental Death Rider?
It will Pay double or triple the face amount.
In a group health policy, a probationary period is intended for people who?
Join the group after the effective date
If an applicant does not receive a copy of the new insurance policy, who is held responsible?
The agent
All of the following are requirements for life insurance illustrations
- They may only be used as approved - They must identify non-guaranateed values -They must differentiate between guaranteed and projected amounts.
Regarding a PPO, which of the following is correct when selecting a primary care physician?
-The insurer may choose medical providers not found on the preferred list and still retain coverage. -The insured is allowed to receive care from any provider, but if the insured selects the PPO provider, the insured will realize lower out-of-pocket costs. -If a non-network provider is used, the insureds out-of-pocket costs will be higher. All of the above*
All of the following are True statements regarding the accumulation at interest option.
-The policy holder has the right to withdraw the accumulations at anytime. -The annual dividend is retained by the company. -The interest is credited at the rate specified by the policy.
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is correct?
100% participation of members is required in noncontributory plans.
Which of the following would be a following event as it relates to COBRA
Termination of employment do too downsizing.
On a health insurance application, a signature is required from all of the following except
The agent The proposed insured The policy owner (if policy owner is different) The spouse of the policy owner*
The annuity owner dies while the annuity is still in the accounting stage. Which of the following is true?
The beneficiary will receive the greater of the money paid into the annuity or the cash value.
A corporation is the owner and the beneficiary of the key person life policy. If the corporation collects the policy benefit, then
The benefit is received tax free
Which of the following statements about group life is correct?
The cost of coverage is based on the ration of men and women in the group
Which statement accurately describes group disability income insurance?
The extents of benefits is determined by the insureds income.
An insured pays her major medical insurance premium annually on March. Last March she forgot to mail her premium to the company. On march 19, she had an accident and broke her leg.
The insurance company would pay the claim.
When a life insurance policy was issued, the policy owner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first, Which of the following would receive the death benefit?
The insureds contingent beneficiary.
Who must pay for the cost of a medical examination required in the process of underwriting?
The insurer
Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?
They can be changed only with the written consent of that beneficiary
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner?
Third-party owner
Which provision states that the insurance company must pay medical expenses immediately?
Time of payment Claims
Which of the following is the best reason to purchase life insurance rather than the annuities
To create an estate
When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 years old, when in fact, she was 37. If the policy contains the optional misstatement of age provision.
Amounts payable under the policy will reflect the correct age
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized User
Which statements best describes the free look provisions?
It allows the insureds to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason.
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
When a reduced paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is the reduced to the mount of what the cash value would buy as a single premium.
Which of the following is true about a policy assignment?
It transfers rights of ownership from the owner to another person.
What type of health insurance policy provides an employer with funds to train a replacement if a valued employee becomes disabled?
Key Person Disability
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-pay Life
If a settlement options is not chosen by the policy owner or the beneficiary, which option will be used.
Lump Sum
An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation?
The applicant
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary.
An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,
The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy.
What percentage of a company's employees must take part in a noncontributory group life plan
100%
Which of the following of the named beneficiaries would not be able to receive the death benefit directly from the insurer in the event of the insured death.
A minor son of the insured
The insureds health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?
Accident-Only
An insured pays 100 dollars premium every month for his insurance coverage, yet the insurer promises to pay 10,000 for a covered loss. What characteristic of an insurance contract does this describe.
Aleatory
What is an important feature of a dental expense insurance plan that in NOT typically found in a medical expense insurance plan.
Diagnostic and preventive care
The insurance policy, together with the policy application and any added riders form what is known as
Entire Contract
What does level refer to in level term insurance.
Face Amount
What policy component decreases in decreasing term insurance?
Face Amount
Insurance is a contract by which one seeks to protect another from
Loss
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done at this point?
Neither approved the application nor issued the policy
How many pairs of glasses in a 12-month period will a vision expense insurance plan cover?
One
A participating insurance policy may do which of the following?
Pay dividends to the policy-owner.
A prospective insured receives a conditional receipt bit dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy.
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to the stated age, with the company having the right to increase premiums on the entire class.
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex, and occupation of each individual certificate holder
An insured pays 1,200 annually for her life insurance premium. The insured applies this years300 worth of accumulated dividends to the next years premiums, this reducing it to 900. What option does this describe?
Reduction of premium
What type of care is Respite care?
Relief for a major care giver
Which of the following is the risk classification used by an underwriters for life insurance?
Standard.
Which of the following is not a feature of a non cancellable policy
The insurer may terminate the contract only at renewal for certain conditions.* The premiums cannot be increased beyond the amounts stated in the policy. The guarantee to renew coverage usually applies until the insured reached a certain age. The insured had the right to renew the policy for the life of the contract.
An employe quits his job on May 15 and doesn't convert his group life policy to an individual policy for two weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit
Which of the following statements in correct regarding a whole life policy?
The policy owner is entitled to policy loans.
Most vision expense insurance plans restrict benefits to one exam and one pair of glasses in what time period?
12 months
A father purchases a life insurance policy on his teenage daughter and adds the payor benefit rider. In which of the following scenarios will the rider waive the payment of the premium.
If the father is disable for more than 6 months..
The premium charged for exercising the guaranteed insurability Rider is based upon the insured's?
attained age