Insurance Test
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
If an insurer becomes insolvent, which of the following would pay benefits to policyholders?
The Guaranty Association
According to OBRA, what is the minimum number of employees required to constitute a large group?
100
Most vision expense insurance plans restrict benefits to one exam and one pair of glasses in what time period?
12 months
An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?
2 years
Each person licensed as an agent or solicitor is required to complete continuing education instruction every
2 years
COBRA applies to employers with at least
20 employees
An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
25%
An insolvent insurer is one who is unable to pay its obligations when they are due or has fewer assets than liabilities for a period of
3 years
Agents who change their state of residence must notify the Superintendent within how many days of any change in address?
30
What is the period of coverage for events such as death or divorce under COBRA?
36 months
If a cybersecurity event has occurred, licensees must maintain records of the incident for no less than
5 years
How long is an open enrollment period for Medicare supplement policies?
6 months
Benefit periods for individual short-term disability policies will usually continue from
6 months to 2 years
Unreimbursed medical expenses paid for the insured may be claimed as deductions if the expenses exceed what percentage of the adjusted gross income?
7.5%
Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within
90 days
In which of the following scenarios must an insurer automatically provide prior authorization approval for prescription drugs necessary to treat a chronic condition?
A drug treatment requires 10 months to resolve the condit
Which of the following does the insuring clause NOT specify?
A list of available doctors
Where would long-term care services be provided?
A nursing home or the insureds own home
Who is an insurance agent
A person authorized to sell, solicit and negotiate insurance contracts
An insured carries health insurance with two different providers and is covered on an expense incurred basis. He has an appendectomy and files the claims to both insurers. Neither company is notified in advance that the insurer has other coverage. What should each insurer pay?
A proportionate amount
The free-look provision allows for which of the following?
A right to return the policy for a full premium refund
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to identify the insured and the nature of the claim.
Which of the following groups would probably be covered by blanket insurance?
A university's sports team
All of the following statements concerning workers compensation are correct EXCEPT
A worker receives benefits only if the work related injury was not his/her fault.
Which of the following statements is true regarding Medicare prescription drug coverage tiers?
Drugs in a lower tier must cost less to an insured than a higher tier.
In a group policy, the contract is between
Employer and insurance company
The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the
Entire contract clause
Every subscriber of a health insuring corporation is entitled to a/an
Evidence of Coverage
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions clause
The authority granted to an agent through the agent's contract is referred to as
Express authority
When an employee terminates coverage under a group insurance policy, coverage continues in force
For 31 days.
When is the annual open enrollment for state insurance exchanges?
November 1 through January 31
In long-term care insurance, what type of care is provided with intermediate care?
Occasional nursing or rehabilitative care
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.
Which of the following terms requires a health care practitioner to seek approval from an insurer before providing healthcare service?
Prior authorization
Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?
Promptly forwarding premiums to the insurance company
The Federal Fair Credit Reporting Act
Regulates consumer reports
What method do insurers use to protect themselves against catastrophic losses?
Reinsurance
All of the following are marketing arrangements used by insurers EXCEPT
Reinsurance System
Which of the following is NOT covered under part B of medicare policy?
Routine dental care
An insurance policy that requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insureds age 100 is called?
Single premium whole life
If a firm between 2 and 50 employees that are actively engaged in business during the preceding calendar year, what is its classification?
Small employer
When an employee covered under a health reimbursement account changes employers, the HRA
Stays with the employer
Which of the following statements about suicide clause in a life insurance policy is true?
Suicide is excluded for a specific period of years and covered thereafter.
Which of the following would an accident-only policy NOT cover?
Surgery to repair a wrist damaged by tendonitis.
During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59 ½.
Which of the following is true regarding a waiver of a surrender charger on an annuity contract?
The charge can only be waived if the annuitant needs the funds for medical expenses.
Which of the following statements about group life is correct
The cost of coverage is based on the ratio of men and women in the group.
What type of information is NOT included in a certificate of insurance?
The cost the company is paying for monthly premiums
J transferred his life insurance policy to his son two years before his death. Which of the following is true?
The entire face value of the policy will be included in J's taxable estate.
In a group policy, who is issued a certificate of insurance?
The individual insured
Who chooses a primary care physician in an HIC
The individual member
Which of the following is correct regarding selecting a primary care physician in a PPO plan?
The insured may choose medical providers not found on the preferred list.
How often must the director examine financial affairs of domestic insurers?
every 3 years
Under a typical health insurance policy, claims that result from injuries while the insured was intoxicated or under the influence of drugs are generally
excluded
Which of the following are the authorities that an agent can hold?
express and implied
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
fixed amount
The automatic premium loan provision is activated at the end of the
grace period
Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage?
health maintenance organization plan
Which of the following types of LTC is NOT provided in an institutional setting?
home health care
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
implied
Which of the following factors about the insured determines the amount of disability benefit that the insured will receive
income
Guarantee of insurance option in long-term care policies allows the insured to
increase benefit levels without providing proof of insurability
Which of the following is NOT a metal level of coverage offered under the Patient Protection and Affordable Care Act?
iron
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
is not covered
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
legal actions
The primary eligibility requirement for Medicaid benefits is based upon
need
Premium payments for personally owned disability income policies are
not tax deductible
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
paid up option
Which of the following riders would NOT cause Death Benefit to increase?
payor benefit rider
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
permanent
In dental insurance, what type of care will cover crowns?
restorative
It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?
sexual orientation
When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments
spendthrift provision
A person steps off a street car and trips and breaks his ankle. This type of injury can be described as
sudden, unforeseen
A group blanket health policy is best suited for which of the following?
summer camp
Which of the following is NOT an activity of daily living (ADL)
talking
The director may examine books and records of all authorized insurers in Ohio. Who is responsible for paying for the examination?
the insurer
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have?
variable
An insured with a life insurance policy is diagnosed with a terminal illness. Which of the following could be a suitable option for this insured?
viatical settlement
How many days does the viator have to rescind a contract after receiving the viatical settlement proceeds
15 calendar days
What is the penalty for IRA distributions that are below the required minimum for the year?
50%
If an annuitant dies during the accumulation period, what benefit(if any) will be included in the annuitant's estate?
Accumulated cash value
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
Which of the following best describes gross annual premium?
Net premium plus expenses
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
Which of the following individuals must have insurable interest in the insured
Policyowner
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits.
Which of the following is NOT true regarding Equity Indexed Annuities
They earn lower interest rates than fixed annuities.
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
Type of investment
Which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase
Withdrawn amounts are taxed on a last in, first out basis.
What required provision protects against unintentional lapse of the policy?
grace period
Which of the following is another term for the accumulation period of an annuity
pay-in period
Which of the following is called a second to die policy
survivorship life
For how long is the certificate of pre licensing course completion valid
180 calendar days
The maximum duration of a temporary license in this state is
180 days
What documentation grants express authority to an agent
Agent's contract with the principal
which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?
Bail out
Which of the following is TRUE about a class designation?
Beneficiaries are not identified by name
All of the following information about a customer must be used in determining annuity stability EXCEPT
Beneficiary's age
Which of the following best describes fixed-period settlement option
Both the principal and interest will be liquidated over a selected period of time
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
Installments for a fixed period
Who might receive dividends from a mutual insurer?
Policyholders
An application buys a non qualified annuity, but dies before the starting date. For which of the following beneficiaries would the interest accumulated in the annuity NOT be taxable?
Spouse
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.
An insurance producer who by contract is bound to write insurance for only one company is classified as a/an
captive agent
How often are agents required to renew their insurance license?
every 2 years
An adjustable Life policy owner can change which of the following policy features?
the coverage period
An insurance company receives an application with some information missing and issues the policy anyway. What is this called
waiver
After being penalized previously for making false statements regarding the insurer's financial condition, the insurer continues to knowingly commit the same offense. What is the maximum penalty that may be imposed on the insurer?
$1,000
How many hours of continuing education must be completed in ethics?
3 hours
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
What does liquidity refer to in a life insurance policy?
Cash values can be borrowed at any time
When a policy owner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called
Class designation
Which of the following is NOT typically excluded from life policies
Death due to plane crash for a fare-paying passenger
An insurer suspects an agent of fraud and cancels his appointment. Which authority, if any, should be notified?
Director
What insurance concept is associated with the names Weiss and Fitch
Guides describing company financial integrity
In insurance transactions, fiduciary responsibility means?
Handling insurer funds in a trust capacity
when a life insurance policy was issued the policy owner designated a primary and contingent beneficiary. Several years later, both the insured, and 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.
Insured's contingent beneficiary
Which of the following best describes a bail-out provision
It allows the owner to surrender the annuity without a charge.
In which of the following situations is it legal to limit coverage based on marital status
It is never legal to limit coverage based on marital status
Which of the following is usually true of a participating life insurance policy?
It pays dividends to policyowners
Which of the following is NOT true regarding a temporary license in the state of ohio
It will continue for 180 days even if the owner disposes of the business
An insured who had a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?
It will go to the insured's estate
An insured purchased an individual life insurance policy with a face of $15,000. The insured pays a premium each month directly to the insurance company. What type of policy is that?
Ordinary life
An insured states her age as 40 on the application. When she dies the insurer discovers that she was actually only 37 at the time of the application. What will the insurance company do?
Pay the death benefit in the amount that the premium at the correct age would have purchased
Which services are associated with Standard & Poor's and AM Best?
Rating the financial strength of insurance companies
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of the medical exam
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal Life
Which of the following terms is used to name the non taxed return of unused premiums
dividend
Stranger-originated life insurance policies are in direct opposition to the principle of
insurable interest
In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?
it will likely be higher because the applicant is a substandard risk
Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?
law of large numbers
Insurance is a contract by which one seeks to protect another from
loss
What is the other term for the cash payment settlement option?
lump sum
Insurance is the transfer of
risk
When may an insurance company use suicide as a defense against paying a death claim?
When death occurs within a specified period of time after the policy was issued.
An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?
$10,000, no tax consequence
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
Which is the primary source of information used for insurance underwriting
Application
When must an IRA be completely distributed when a beneficiary is not named?
December 31 of the year that contains the fifth anniversary of the owner's death.
When calculating the amount a policy owner may borrow from a variable life policy, what must be subtracted from the policy's cash value?
Outstanding loans and interest
all of the following are true regarding the convertibility option under a term life insurance policy, EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
Whether an insurable interest exists between the individuals
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
the insured's premiums will be waived until she is 21.
Traditional IRA contributions are tax deductible based on which of the following
Owner's income
which of the following allows the insurer to relieve a minor insured from premium payments, if the minors parents have died, or become disabled
Payor benefit
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Predicted needs of the family after the insured's death
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required.
Which of the following is an example of liquidity in a life insurance contract?
The cash value available to the policyowner
When a fixed owner pays a monthly annuity premium to the insurance company, where is this money placed
The insurance company's general account
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
The loss may be intentional. To insure intentional losses would be against public policy.
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity.
Which of the following best describes what the annuity period is
The period of time during which accumulated money is converted into income payments
An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?
The policy will terminate when the loan amount with interest equals or exceeds the cash value.
For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become
larger
A person filed a report about an insurance fraud practice. The person could be sued for civil damages by which of the following?
no one
An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 2.5%. During an economic downswing, the investments only drew 2%. What interest rate will the insurer pay to it's policyholders?
2.5%
Each person licensed as an agent or solicitor is required to complete how many hours of approved continuing education instruction every 2 years?
3.24
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the
Revocable beneficiary
Adverse selection is a concept best described as
Risks with higher probability of loss seeking insurance more often than other risks.
Which of the following types of risks will result in the highest premium?
Substandard risk
A viatical settlement is arranged between a viatical company and a/an
Terminally ill insured
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
Life insurance death proceeds are
Generally not taxed as income
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Guaranteed surrender value
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
Required a premium increase each renewal.
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
beneficiary
After being penalized previously for making false statements on advertisements regarding the insurers financial condition, the insurer continues to knowingly commit the same offense. What is the maximum penalty that may be imposed on the insurer?
$1,000
A $100,000 life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?
$3,000 per year
An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles how much will the excess plan pay?
$5,000
The sole proprietor of a business makes a total salary of $50,000 a year. This year, his medical expenses have reached a total of $75,000. What amount may the sole proprietor deduct in regards to his medical expenses?
$50,000
An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
$500
What percentage of individually-owned disability income benefits is taxable?
0%
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 increased risk
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 insured's age at the time of renewal
In Ohio, a temporary license may be issued for any of the following reasons EXCEPT
Agents retirement
In insurance, an offer is usually made when
An applicant submits an application to the insurer
The current interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500
Under HIPPA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy?
An individual who was previously covered by group health insurance for 6 months is eligible.
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
What is the maximum period of time during which an insurer may contest fraudulent misstatements made in health insurance application?
As long as the policy is in force
What document describes an insureds medical history, including diagnoses and treatments?
Attending Physician's Statement
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
Which of the following is NOT an enrollment period for Medicare Part A applicants?
Automatic enrollment
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Becomes terminally ill
How often must a specialty health care insurer provide current company information, providers list, methods of operation and other reports to its insured?
Biennially
A children's group is planning a summer camp. What kind of accident and health policy could cover all of the participants without requiring individual applications and identifying each of the children attending the camp?
Blanket policy
Which of the following is a true comparison between annuities and life insurance?
Both annuities and life insurance use mortality tables.
A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability?
Business overhead expense policy
Which of the following statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy
Which of the following best describes how eligibility for a Health Insuring Corporation (HIC) is determined
By geographic boundaries
Which of the following best describes how eligibility for a health insuring corporation (HIC) is determined
By geographic boundaries
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
Which of the following is true regarding inpatient hospital care for HIC members?
Care can be provided outside of the service area
In order to provide services in Ohio, a Health insuring corporation must first obtain which of the following from the director?
Certificate of authority
Representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
Which of the following is NOT a cost-saving service in a medical plan?
Denial of coverage
What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?
Diagnostic and preventive care
Which authority is responsible for reviewing and approving Medicare supplement insurance advertisements?
Director
When contributions to an immediate annuity are made with before-tax dollars, which of the following is true of the distributions?
Distributions are taxable
Which of the following is considered to be a morale hazard?
Driving recklessly
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
Which of the following is an eligibility requirement for all Social Security Disability Income benefits?
Have attained fully insured status
The benefits received by the business in a Disability Buy-sell policy are
Income tax free
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
Which of the following refers to "own occupation" disability
Insured is unable to perform duties of the occupation for which they were educated and trained.
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
Insurer's guaranteed minimum rate of interest
The type of dental plan which is incorporated into a major medical expense plan is a/an
Integrated dental plan
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary
Which of the following best describes misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
What is the benefit of experience rating?
It allows employers with low claims experience to get lower premiums.
What statement best describes the free look provision
It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason
What is the main purpose of the seven pay test
It determines if the insurance policy is an MEC.
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
Which of the following of a children's rider added to an insured's permanent life insurance policy?
It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age
Which of the following is NOT true regarding a temporary license in this state?
It will continue for 180 days even if the owner disposes of the business.
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount
Which statements is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint Life
Concerning Juvenile Life insurance, which of the following statements is INCORRECT?
Juvenile Life is classified as any life insurance purchased by a minor.
Which of the following is an example of a limited-pay life policy
Life Paid-up at Age 65
Insurance is contracted by which one seeks to protect another form
Loss
An applicant who receives a preferred risk classification qualifies for
Lower premiums than a person who receives a standard risk.
In franchise insurance, premiums are usually
Lower than individual policies, but higher than group policies.
Which of the following programs expands individual public assistance programs for people with insufficient income and resources?
Medicaid
Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?
Medical Information
Which of the following may be used when determining Medicare Advantage out of pocket costs?
Medicare Part B premiums paid by the plan
An insured is covered under a Medicare policy that provides a list of network healthcare providers that the insured must use to receive coverage. In exchange for this limitation, the insured is offered a lower premium. Which type of Medicare policy does the insured own?
Medicare SELECT
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable.
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
Under which plan does preventative dental treatment not apply toward the deductible?
Nonscheduled
In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?
The insured must have first been hospitalized for 3 consecutive days
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
The loss may be intentional
Twins brother and sister each purchased a retirement annuity. When they retired at the same time, each selected the life income option. Both have similar life styles and are in good health. Which of the following is true with respect to their monthly annuity payments?
The man's payments will be larger
The director issues a cease and desist order. A hearing is held in order to determine whether the order should be continued. After the hearing, the Director decides to continue the order. The agent wants to appeal this decision. Which of the following is true?
The order can be appealed
What must happen when an individual policy or annuity has been personally delivered to the policyowner?
The policyowner must sign a delivery receipt
If a policy is rated-up, which of the following is true?
The premium increases
How does a member of an HIC see a specialist
The primary care physician refers the member
Which of the following is correct about Medicare?
The program is divided into four parts (A-D).
Which is true about a spouse term rider
The rider is usually level term insurance
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
Which state has jurisdiction over a group policy that covers individuals that reside in more than one state?
The state in which the policy was delivered
On a disability income policy that contains the "own occupation" definition of total disability, the insured will be entitled to benefits if they cannot perform
Their regular job
What are the requirements for Health Insurance Marketplace coverage of specific vaccines administered by an in-network provider?
They must be covered without a copayment or coinsurance
An insurer offers a policy very similar to Medicare, although it differs slightly. An agent tells an applicant that the policy is Medicare, since the policies are so similar anyway. Which of the following is true?
This practice is illegal.
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
Why do group health providers usually require a certain amount of participation in the plan by eligible employees?
To guard against adverse selection and reduce cost
An insured his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pays the insured the difference. What provision allows for this?
Unpaid premium
An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pays the insured the difference. What provision allows for this?
Unpaid premium
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as
Utmost good faith
When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?
When the expenses exceed a certain percentage of the insured's adjusted gross income
When would life insurance policy proceeds be included in the insured's taxable estate?
When there is an incident of ownership at the time of death
Which of the following is another term for an authorized insurer?
admitted
Which of the following would be considered a routine procedure?
annual check-up
The LEAST expensive first-year premium is found in which of the following policies?
annually renewable term
Medicaid is sponsored by what kind of sources?
both state and federal
All of the following are personal uses of life insurance EXCEPT
buy-sell agreement
Most scheduled plans provide first-dollar benefits without
coinsurance and deductibles
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
As deductible amounts increase, premium amounts change in what way?
decrease
Why is it essential for an insurer to document all correspondence with an insured?
errors and omissions
In ohio, a temporary license may be issued for any of the following reasons EXCEPT
Agent's retirement.
All of the following are required to qualify for a resident license EXCEPT
An applicant that is at least 21 years old
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
When an annuity is written, whose life expectancy is taken into account?
Annuitant
The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the
Entire Contract
