Insurance
Nonqualified medical expense distributions from an HSA have a tax penalty of: - 7.5% - 10% - 20% - 30%
20%
A producer MUST maintain insurance transaction records for a minimum of ____ years. - 2 - 3 - 4 - 5
3
How long must a life insurance polcy be in effect befor ethe policy owner may use the nonforfeiture provision? - 1 year - 2 years - 3 years - 4 years
3 years
An insured previously covered under a private health insurance plan must notify the insurer within ______ days of deactivation from the military in order to reinstate the coverage. - 15 - 30 - 45 - 60
30
Jerry is a resident producer who has moved to another city in OK. How long does he have to notify the Insurance Commissioner of the change of address? - 10 days - 20 days - 30 days - 60 days
30 days
Annual mammography screening for women ____ and older MUS Tbe covered under group and individual health insurance plans in OK. - 30 - 35 - 40 - 45
40
How often must the Commissioner examine each domestic insurance company? - yearly - 2 years - 3 years - 5 years
5 years
Under HIPAA requires guarantee issue of insurance as long as there has not been more than a ______ day gap in coverage. - 21 - 30 - 46 - 63
63
In OK, a life insurance policy loan may NOT exceed an interest rate of: - 6% - 7% - 8% - 9%
8%
A life insurance policy's waiver of premium rider has the ability to: - waive the premium payments in the even the insured becomes financially insolvent - relieve the insured of premium payments following an initial waiting period after the insured becomes totally disabled - provide a policy loan to cover the premium payments in the even the insured becomes totally disabled - waive the premiums on this policy as well as any other insurance policies belonging to the insured in the event of total disability
relieve the insured of premium payments following an initial waiting period after the insured becomes totally disabled
If a producer is found to have violated an OK insurance statute, a fine can be given up to ______ for each violation. - $500 - $1000 - $1500 - $2000
$1000
John rcvd a 1 time distribution of $50k from his modified endowment contract (MEC). Prior to that, the contract's cash value was $150k, the contract investment amoutn was $100k, and the death benefit was $500k. What percentage of the $50k distribution was taxable as ordinary income? - 0% - 25% - 50% - 100%
100%
The insured's consideration given for a health insurance policy is: - 1st premium and application - initial premium - application - initial premium and investigative report
1st premium and application
A life insurance policy becomes incontestable after it has been in force for: - 30 days - 6 months - 2 years - 3 years
2 years
An insured must notify an insurer of a medical claim within how many days after an accident? - 10 - 20 - 30 - 40
20
Which of these would NOT be a valid reason to add the waiver of premium rider to a life insurance policy? - Prevents a policy from lapsing in the event of total disability - Premiums waived by the insurer do not have to be repaid by the policyowner - Policy's cash value would still increas as policy premiums are being waived - It allows a policy loan to cover premium paymnets in the policyowner becomes totally disabled
Allows a policy to cover premium payments if the policyowner becomes totally disabled.
Which of these is NOT an advantage of term life insurance? - Greatest amount of coverage can be provided for the initial premium paid - Can be provided as a rider to another policy - Cash benefit will be provided if the insured is alive at the end of the policy period. - Temporary insurance needs can be met
Cash benefit will be provided if the insured is alive at the end of the policy period.
Whic of the following reduces the opportunity for overinsurance? - Reduction in coverage provision - Coordination of benefits provision - Insuring clause - Conformity with state statutes
Coordination of benefits provision
What kind of life polcy typically offers mortgage protection? - Whole life - Decreasing term - Increasing term - Level term
Decreasing term
Which of the following is generally a form of group credit life insurance? - Decreasing term insurance - Increasing term insurance - Level term insurance - Whole life insurance
Decreasing term insurance
Which annuity allows contributions to an IRA? - Single Premium Immediate Annuity - Annuity certain - Deferred - Life with period certain
Deferred
Whci of the following is NOT guaranteed in a whole life policy? - Settlement options - Nonforfeiture options - Dividend scale - Policy loan values
Dividend scale
A large corporation pension plan purchased an accumulation annuity contract where all of the participating employees received certificates of participation. What is this contract called? - 403(b) plan - Group deferred annuity - Group immediate annuity - Joint and survivor group plan
Group deferred annuity
Which statement regarding whole life insurance is accurate? - Cash value loans are not permitted - Insurance coverage can continue for life - Policy normally matures at retirement - No cash value accumulations
Insurance coverage can continue for life
The Optionally Renewable provision allows what party to cancel the contract? - Policyowner - Insured - Insurer - Either insurer or policyowner
Insurer
What would be a valid reason for naming a trust as the beneficiary as opposed to naming an individual? - Avoiding probate - Management of proceeds - Trustee can pay off an existing policy loans - More settlement options available
Management of proceeds
A MET 3rd part administrator may NOT perform which of the following functions? - Claims processing - Marketing the plan - Underwriting the plan - Insuring the plan
Marketing
Which of the following health insurance plans charges a premium that cannot be increased? - Guaranteed revewable - Cancelable - Noncancelable - Conditionally renewable
Noncancelable
A signed good health statement may be requested by a life producer at the time of: - policy issue - application - policy delivery - physical exam
Policy delivery
If an insured dies during the grace period without having paid the premium, how much will the insurer pay? - Face amount - Total premiums paid will be returned - Policy's face amoutn minus any premiums due - Nothing
Policy's face amoutn minus any premiums due
Whic of the following could be a future use of the cash value that builds in a recently-purchased whole life insurance policy? - Covert the cash value to a paid up term policy - Gives policy owner ability to borrow against funds within two years - Increases the policy's face amount - Provide supplemental income in 35 years?
Provide supplemental income in 35 years?
Assets that back the non-guaranteed values of variable life insurance products are held in which account? - Trust acct set up by the insured - Sep acct set up by the insurer - General account of the insurer - Money Market account
Sep acct set up by the insurer
What is the face amount of a $50k graded death benefit life insurance policy when the policy is issued? - $0 - $50k - Under $50k initially, but decreases annually over time - Under $50k initially, but increases over time
Under $50k, but increases annually until fully insured
Under what circumstances does an accident and health insurer have the right to request an autopsy? - When the claim exceeds an amount specified in the policy - When 2 days have passed after death - When not prohibited by state law - When consent is given by the beneficiary
When not prohibited by state law
An accident an health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before: - submitting another claim - bringing legal action against the insurer - the insurer will pay the claim - purchasing more insurance from this insurer
bringing legal action
Whic of the following is NOT a condition that must be met for an accidental death benefit to be paid? - injury must have been suffered prior to a stated age - accidental bodily injury must have been the cause of death - cause of death must be from a job-related injury - death must occur within a stated number of days after the accident
cause of death must be from a job-related injury
Which of the following unfair trade practices invovles a producer who makes public malicious statements about a n insurer's financial condition? - boycotting - defamation - unfair discrimination - misrepresentation
defamation
Which of the following health insurance provisions requires that the application becomes part of the policy? - consideration clause - insuring clause - entire contract clause - application clause
entire contract clause
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus the accumulated dividends: - equal the net single premium for the same face amount at the insured's attained age - can purchase extended term coverage for a period of 2 years or more - equal the nonforfeiture value of the policy - can purchase a paid-addition
equal the net single premium for the same face amount at the insured's attained age
Which of these may NOT be deducted from premium payments or the cash value of a variable life insurance policy? - mortality costs - admin charges - investment management fees - federal premium taxes
federal premium taxes
An applicant for health insurance deliberately lies in order to obtain a lower premium rate. This is an example of: - embezzlement - misrepresentation - fraud - unfair settlement practice
fraud
A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the: - negotiated amount payable - avg amount payable - lowest amount payable - highest amount payable
highest amount payable
Which of the following provisions permits an insurer to return a portion of the premium an pay benefits on a pro rata basis if it finds that an insured has duplicate coverage? - change of occupation - relation of earning to insurance - insurance with other insurers - other insurance in this insurer
insurance with other insurers
The standard provisions of an accident and health insurance policy require that the - policy, endorsements, and attached paper constitute the "entire contract" - policy summary, conditional receipt, and initial premium constitute the "entire contract" - change of occupation provision is mandatory - grace period be no shorter than 60 days
policy, endorsements, and attached paper constitute the "entire contract"
Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate? - Evidence of insurability is required - coverage remains until death of the insured - premium to purchase the coverage comes from the policy's cash value - cash value will continue to grow
premium to purchase the coverage comes from the policy's cash value
A guaranteed renewable provision allows: - discrimination of individuals who have an increased loss experience - premiums that may not be increased beyond contractual requirements - premiums which can only be increased per rate class - cancellation of the policy at the insurer's discretion
premiums which can only be increased per rate class
Which of these is considered a whole life policy? - Credit life - Single premium life - renewable life - convertible life
single premium life
Jeamse is covered with health insurance by two different insurers. The "insurance with other insurers" provision in an individual health insurance polcy allows an insurer to pay benefits to the insured on a pro-rata basis when: - the policy's max lifetime benefit level has been paid - the policy is beyond the incontestable period - the insurer was not notified prior to the claim that the insured has other health coverage - the polcy is beyond the free-look period
the insurer was not notified prior to the claim that the insured has other health coverage
How is an insured's accident an health claim handled by an insurer if it occurs during the policy's grace period? - claim has to be approved by an officer of the insurer - no claim will be paid until premium is paid current - the claim is paid in full and the unpaid premium will be waived by the insurer - unpaid premium may be subtracted from the reimbursement
unpaid premium may be subtracted from the reimbursement
An insurance polcy that can also be classified as a securities product is called: - variable life - modified life - universal life - a Modified Endowment Contract
variable life