Life & Accident & Sickness License
What is the per incident fine for violation of the national do not call list? a) $16,000 b) $5,000 c) $10,000 d) $20,000
a) $16,000
J pays 25% of his group medical insurance premium. His employer pays the rest. J is paid $5,000 to reimburse him for a hospital claim. How much of the claim is taxable as income to J? a) 0 b) 25% c) 75% d) 100%
a) 0 (reimburse)
Life insurance consumers have _____ days to review the policy and return for a full refund. a) 10 b) 30 c) 45 d) 60
a) 10 days
An insured is covered by an Accident and Health Policy; he submits proof of loss to the insurer. In absence of an overriding state law, the insured has a maximum of how many years to bring legal action against the insurer? a) 3 years b) 2 years c) 1 year d) 5 years
a) 3 years
How long can a temporary agent license remain in effect? a) 6 months, renewable up to 15 months b) 3 months, renewable up to 15 months c) until a license is issued d) 6 months
a) 6 months, renewable up to 15 months
On a weekly premium mode for health insurance, what is the grace period? a) 7 days b) 10 days c) 15 days d) 31 days
a) 7 days
Which of the following types of policies is designed primarily for the accumulation of funds within a specified period of time and provides protection in the amount of the contract's face value during that time? a) Endowment b) Annuity c) 20 Pay Whole Life d) Term Life
a) Endowment
T purchases a life insurance policy with coverage on himself and his wife, L. When their son is born, the insurance agent informs T that the baby will be covered automatically under the policy when the baby is 15 days old. What policy does T most likely have? a) Family Policy b) Family income c) Family maintenance d) Jumping Juvenile
a) Family Policy
Who manages the Do Not Call List? a) Federal Trade Commission b) the Insurance Department c) the Attorney General d) Financial Industry Regulatory Authority
a) Federal Trade Commission
On June 20th, S purchased a major medical policy and paid the initial premium to agent C. On July 1st, Agent C received the policy from the insurer. On July 3rd, Agent C attempted to deliver the policy to S but S was not home. On July 5th, Agent C was able to deliver the policy. On July 7th, S decided she did not want the policy. S had 10 days from which of the following dates to review the policy and return it to the company for a full refund? a) July 5th b) July 3rd c) July 1st d) July 7th
a) July 5th
Which of the following is not deductible as a business expense? a) Key Person Life Insurance b) Payroll c) Parking lot repair d) Business overhead expense insurance
a) Key person life insurance
Which of the following is an interest sensitive form of protection? a) Universal Life b) Limited Pay Life c) Graded Death Benefit d) Multiple Protection
a) Universal Life
An applicant for insurance submits an application to an insurer for underwriting but does not forward any premium payment with the application. Legally the applicant is making a) an invitation to make an offer b) an offer c) counter offer d) an acceptance
a) an invitation to make an offer
Two business partners own life insurance on each other. If one partner dies, which of the following will allow the other partner to use the death benefit to buy 100% of the deceased partner's business interest? a) cross-purchase b) key employee life c) survivorship life d) joint and life
a) cross-purchase
HIPAA classifies Long Term Care Insurance as: a) custodial insurance b) life insurance c) annuities d) endowments
a) custodial insurance
Which of the following provisions places a precise limit of an agent's authority to waive provisions in an insurance contract? a) entire contract b) reinstatement c) time limit on certain defenses d) legal actions
a) entire contract
When a producer accepts an insured's premiums he is acting as a/an: a) fiduciary b) beneficiary c) expressed authority d) "I ran out of choices"
a) fiduciary
An individual may obtain a temporary insurance agent's license without passing the licensing examination if the individual: a) is a deceased licensed agent's next of kin b) is taking insurance courses at a university c) has met the minimum experience requirement d) holds a license in another state
a) is a deceased licensed agent's next of kin
Which of the following is not true about a Health Maintenance Organization? a) it pays directly to the insured, rather than the hospital or doctor b) it encourages preventative medicine c) it covers dental expenses due to an accident d) it provides local facilities for treatment
a) it pays directly to the insured, rather than the hospital or doctor
Which of the following health policy renewal provisions guarantees premiums to stay the same? a) non-cancelable b) optionally renewable c) guaranteed renewable d) cancelable
a) non-cancelable
Which of the following policy provisions allows for continuation of coverage despite nonpayment of premiums? a) nonforfeiture option b) entire contract c) ownership clause d) insuring clause
a) nonforfeiture option
An application is taken without initial premium. Before the policy is issued, the applicant mails the premium to the insurer. Then the policy is issued as applied for. What must the agent do when the policy is delivered? a) require a signed statement of good health at time of delivery b) meet with applicant and fill out new application c) mail the policy because the policy was issued as applied for d) give the applicant a conditional receipt
a) require a signed statement of good health at time of delivery
Which definition of disability would cover a permanent partial disability? a) residual disability b) own occupation c) any occupation d) partial disability
a) residual disability
Which of the following statements is true about a disability policy with a guaranteed insurability rider? a) the insured may increase the amount of benefits payable under the policy upon verification of income b) the insured may assign the policy to a member of the insured's family c) the insurance company is not permitted to cancel the policy d) the insurance company will issue the policy without a medical exam
a) the insured may increase the amount of benefits payable under the policy upon verification of income
S buys a $25,000 10-year level term rider with her permanent policy of $25,000. S dies 5 years into the policy. What would the payout be after the death benefit of the permanent insurance? a) 0 b) $25,000 c) $50,000 d) $100,000
b) $25,000
F has an accidental death rider on a $50,000 life insurance policy. He was jogging in the park and had a heart attack. What will the total death benefit be? a) 0 b) $50,000 c) $100,000 d) $150,000
b) $50,000
An insurance company must provide claim forms to an insured within a maximum of how many days after receiving a notice of an Accident & Health claim? a) 5 b) 15 c) 20 d) 31
b) 15
How many continuing education hours are required to renew a resident's license in the state of Georgia? a) 3 b) 15 c) 12 d) 5
b) 15
Who cannot apply for a temporary license? a) a trainee who is being trained by an insurance broker b) A counselor who has taken over the affairs of an agent who has received a cease & desist c) A spouse of an agent that has died d) An administrator of a firm who has to take over the affairs of an agent
b) A counselor who has taken over the affairs of an agent who has received a cease & desist
ABC company purchases a disability policy on their key person. Who would the claim be paid to in the event the key person is disabled? a) the insured b) ABC company c) the deceased key person's family d) the principal
b) ABC company
Which of the following provisions of a whole life policy provides the policy owner protection against a policy lapse? a) Reduced Paid-Up Insurance b) Automatic Premium Loan c) Cash Surrender Value d) Extended Term Insurance
b) Automatic Premium Loan
Agent D takes an application for an individual life policy on R. R pays with his application on May 5th. Agent D gives the applicant a conditional receipt. R completes the medical exam May 8th. The company issues a policy that is rated up based on the medical exam. Agent D delivers and explains the rated up policy to R on May 20th. R signs a health statement and pays the additional premium May 24th. When is the policy effective? a) May 8th b) May 24th c) May 20th d) May 5th
b) May 24th
H is a stockbroker. H purchased an individual AD&D policy and is covered under his employer's group health plan. While on a business trip, H falls down a flight of stairs and breaks his leg. Which of the following policies will pay the claim? a) AD&D only b) Worker's compensation c) AD&D and Worker's compensation d) Group Health Only
b) Worker's compensation
In a health insurance policy, which of the following provisions involves a benefit or a premium reduction? a) change of beneficiary b) change of occupation c) cancellation d) change of insured
b) change of occupation
All of the following are included on the face page of a policy except the: a) effective date b) dividend option selected c) name of the insured d) insurer's promise to pay benefits
b) dividend option selected
How often must telemarketers check the National Do Not Call List? a) every 90 days b) every 31 days c) annually d) semi-annually
b) every 31 days
Which nonforfeiture option offers the most insurance protection? a) cash surrender b) extended term c) reduced paid-up d) paid-up addition
b) extended term
Under COBRA, which of the following statements is correct concerning Vic's rights under the group health insurance continuation privilege upon termination of employment? a) he has the right to convert to an individual policy of health insurance b) he can continue on the group for 18 months c) he can continue on the group for 29 months d) he can continue on the group for 36 months
b) he can continue on the group for 18 months
Under a guaranteed renewable health policy, the insurer retains the right to: a) increase the premium rate for one insured without increasing the rate for others in the same class b) increase the premium rate for an entire class of insured's c) decrease the benefits for an entire class of insured's d) decrease benefits for one insured without decreasing benefits for others
b) increase the premium rate for an entire class of insured's
A waiver of premium rider would take effect when an insured: a) loses a hand in an accident b) is totally disabled for 6 months c) is partially disabled for 3 months d) dies
b) is TOTALLY disabled for 6 months
Which of the following settlement options will allow the beneficiary to change options? a) beneficiary cannot change the settlement option b) lump sum c) interest only d) fixed period
b) lump sum
A Long Term Care Policy can be terminated because of the insured's a) age b) nonpayment of premium c) loss of mental capacity d) loss of physical ability
b) nonpayment of premium
In an advertisement, which of the following is true? a) cannot list prices of the competitor's policies b) paid endorsements must be stated as such c) policies must be listed as approved by the insurance commissioner d) rates must be noted as reviewed and accepted by the insurance commissioner
b) paid endorsements must be stated as such
If a juvenile life insurance policy has a payor benefit, whom would it cover? a) employer b) parent c) child d) spouse
b) parent (benefits child, covers parent)
The provision that specifies the time limit that an insured has to return health claim forms to the insurer is known as: a) grace period b) proof of loss c) claim forms d) payment of claims
b) proof of loss
H owns a gift shop and has a business overhead expense policy (BOE policy). She becomes disabled. The policy will cover which of the following expenses? a) physician's fee b) rent c) lost revenue d) physical therapy
b) rent
Q has an existing health policy and calls his agent to add a Guaranteed Insurability Rider. Which of the following should the agent do? a) mail an application to Q and have him fill it out, sign it and mail it to the insurer b) schedule a meeting with Q, complete the application, have him sign it and submit it to the insurer c) verify information over the phone, have Q come in to verify the information on the application, sign it, and submit to the insurer d) take the application over the phone, agent signs on behalf of client and mails the application
b) schedule a meeting with Q, complete the application, have him sign it and submit it to the insurer
M has a group health policy that covers his spouse and twin boys. When the twins turn 18, one goes to college and the other joins the Navy. Which, if either, of the twins would still be covered under M's group plan? a) both b) the one that goes to college c) neither d) the one in the navy
b) the one that goes to college
All of the following are true regarding reinstatement of health insurance except: a) reinstatement is automatic unless the insurer notifies the applicant within 45 days that he has been rejected b) upon reinstatement coverage for illness is effective immediately c) upon reinstatement coverage for accidents is effective immediately d) evidence of insurability is required
b) upon reinstatement coverage for illness is effective immediately
A company is paying for group term life. G is laid off. G can convert to which of the following policy types? a) any type he chooses b) whole life c) term d) conversions are not permitted on group
b) whole life
J has a disability policy with a 30-day elimination period. The policy pays $500 per month. J is disabled for 3 1/2 months. How much would J receive in disability payments? a) $0 b) $500 c) $1250 d) 1750
c) $1250
How many quarters of credit does one need in order to qualify for "survivor" benefits for the surviving spouse of the deceased worker under OASDI (Social Security)? a) 6 out of 13 b) 20 c) 40 d) 40 plus 6 out of 13
c) 40
The waiting period for SocialSecurity Disability benefits is: a) 3 months b) 6 months c) 5 months d) 12 months
c) 5 months
The commissioner must examine a domestic insurer at least once every: a) month b) year c) 5 years d) 2 years
c) 5 years
When will benefits end when someone is on Social Security Disability? a) 59 1/2 b) 62 c) 65 or 67 (dictated by retirement date) d) until death
c) 65 or 67
The Uniform Mandatory Policy Provisions in an individual health insurance policy are an example of which feature in an insurance contract? a) Fiduciary b) Aleatory c) Adhesion d) Unilateral
c) Adhesion
If an insurer violates any sector of the insurance code, what can the Commissioner issue to stop that insurer from committing the violation? a) Notice of a hearing b) Notice of violation c) Cease and desist order d) Suspension order
c) Cease and desist order
The primary reason for selecting a Variable Whole Life Policy instead of a traditional Whole Life Policy is that a Variable Whole Life Policy: a) Provides flexible premium payments b) Allows the policy owner to borrow a larger percent of the cash value c) Has the potential to earn a higher rate of return inside the policy d) Allows the policy owner more flexibility in naming and changing beneficiaries
c) Has the potential to earn a higher rate of return inside the policy
The nurse at the medical clinic is disabled; the doctor needs to hire a replacement. Which policy would cover this expense? a) Business Overhead b) Group Disability c) Key Person Disability d) Disability Buy Sell
c) Key Person Disability
J has a life insurance policy with his wife as primary beneficiary and his son M, as contingent beneficiary. J has 2 other sons. J and his wife are in a car accident and killed immediately. Two days later, M dies of a heart attack. The insurer will pay the proceeds to whom? a) J's estate b) J's wife's estate c) M's estate d) His other 2 sons split the proceeds
c) M's estate
H is 8 years old and requires daily kidney dialysis. Which of the following would over these expenses? a) Medicaid b) Social Security c) Medicare d) MediGap
c) Medicare
Private insurers using networks manage which of the following: a) Medicare Part A b) Medicare Part B c) Medicare Part C d) Medicare Part D
c) Medicare Part C
Which of the following does not represent a third party contract? a) a husband owns a policy on his wife b) a business owns a policy on a key employee c) a person buys a policy on himself d) a parent buys a policy on her child
c) a person buys a policy on himself
S is insured under a disability income policy. S is severely inured in an accident. He is unable to work for a period of 8 months, during which he receives his policy full benefit. After 8 months, he returns to work. Due to his permanent partial disability, he can work only part time. In order to collect benefits under the policy, the policy must include what kind of provision? a) a total disability provision b) a partial disability provision c) a residual disability provision d) a fully insured disability provision
c) a residual disability provision
All of the following forms require the applicant's signature except the a) application b) disclosure statement c) agent's report d) aviation questionnaire
c) agent's report
Which of the following must sign the Notice to Applicants Regarding Replacement of Life Insurance? a) agent and replacing insurer b) applicant and existing insurer c) applicant and agent d) existing and replacing insurer
c) applicant and agent
Which of the following health conditions can insurers not discriminate against? a) heart murmur b) asthma c) blindness d) high blood pressure
c) blindness
Occupational disability benefits are often reduced by benefits received a) from Social Security Disability only b) from worker's compensation only c) from either Social Security Disability or worker's compensation d) before the elimination period
c) from either Social Security Disability or worker's compensation
Which of the following statements is correct about health coverage for an insured's newborn child? a) it becomes effective after the insured provides notification of the birth to the insurer b) it becomes effective 15 days after birth if the insured provides proper notification to the insurer c) it is provided without notice or additional premium for 31 days after birth or adoption d) it is not provided unless maternity coverage is part of the insured's medical plan
c) it is provided without notice or additional premium for 31 days after birth or adoption
The primary purpose of Medicaid is to: a) pay for expenses not covered by Medicare b) provide disability benefits to people on Medicare c) provide medical expense coverage to the financially needy d) provided funds for people injured in natural disasters
c) provide medical expense coverage to the financially needy
An applicant's statements on an application are considered to be legal: a) warranties b) guarantees c) representations d) waivers
c) representations
In order for a non-resident applicant to be eligible for a non-resident license in Georgia, the applicant must: a) reside in a town within 25 miles of the Georgia border b) plan to move to Georgia in the next 6 months c) reside in a state which licenses Georgia agents d) maintain an office in Georgia
c) reside in a state which licenses Georgia agents
When delivering a policy to a client, an agent should take all of the following actions except: a) collect any premium due b) fully explain all exclusions and/or riders c) reveal the reasons for any substandard ratings d) review all benefits provided by the policy
c) reveal the reasons for any substandard ratings
When S applied for her individual disability policy, she was a receptionist and indicated she was an avid whitewater rafter. The company issued her a policy and rated her occupation as a "class one." One year later, S quit her job as a receptionist and became a whitewater rafting instructor, a "class nine occupation." She did not inform the insurance company of her job change. She becomes disabled and applies for her benefit. According to the Change of Occupation Provision, the insurer will most likely take which of the following actions? a) deny her claim since she did not notify the company of her job change b) deny her claim and cancel her policy since statements on the original application are no longer true c) settle the claim according to what the premiums would have purchased under the more hazardous job d) pay the claim based on her original application
c) settle the claim according to what the premiums would have purchased under the more hazardous job
Long Term Care Insurance provides all of the following benefits except? a) skilled nursing care b) intermediate care c) surgical expense d) custodial care
c) surgical expense
Which of the following best describes "probationary period" for group health? a) the period of time underwriting is being done b) the period of time between the beginning of a disability and the date benefits begin c) the period of time one must wait to become eligible for benefits d) a period of time after premium due date the coverage remains in force without penalty
c) the period of time one must wait to become eligible for benefits
L and V die in a fatal car crash. V is the primary beneficiary of the insurance on L's life. What happens to the life insurance proceeds? Proceeds are paid: a) to L's estate b) to V's estate c) to L's estate or to a contingent beneficiary, if named d) to no one
c) to L's estate or to a contingent beneficiary, if named
R has group disability plan. The plan is contributory. R pays half and the employer pays half. R is out on a disability claim. He receives $2,000 a month income. How much of this income is taxable to R? a) 75% b) $0 c) $2,000 d) $1,000
d) $1,000
The employer canceled the group major medical policy. The disabled employee will be able to continue under extension of benefits at no premium for (basic medical expense is 90 days): a) 10 days b) 21 days c) 30 days d) 12 months
d) 12 months
For each benefit period Medicare will pay the full cost of up to how many days of skilled nursing care? a) 30 b) 60 c) 100 d) 20
d) 20
N had to leave his job due to total disability. How long can N remain on COBRA? a) 35 months b) 18 months c) 90 days d) 29 months
d) 29 months
What is the maximum limit of liability for life insurance paid by the Guaranty Association? a) 50,000 b) 100,000 c) 1,000,000 d) 300,000
d) 300,000
Under Medicare Part A, how many days are in a benefit period? a) 120 days b) 60 days c) 30 days d) 90 days
d) 90 days
Which of the following policies would best suit the needs of a 35 year old factory worker who is concerned about inflation and wants to establish a retirement plan? a) Single Premium Deferred Annuity b) Level Premium Deferred Annuity c) 20 Year Endowment d) Flexible Premium Variable Annuity
d) Flexible Premium Variable Annuity
S purchases a life insurance policy on her sister, F. S is named the beneficiary. Who is required to sign the application? a) agent b) S c) S & F d) S, F, & agent
d) S, F, & agent
Which of the following terms can be used in advertisements when published in the paper? a) Life Savings Plan b) Term Charter Products c) Charter Plan d) Universal Life Insurance
d) Universal Life Insurance
In an Accidental Death and Dismemberment policy, the term "capital sum" refers to: a) the benefit paid for death caused by a dread disease b) the monthly disability income paid if an insured loses a limb or the sight in one or both eyes c) a lump sum payment made when disease causes amputation of an arm or leg d) a lump sum payment made for accidental dismemberment
d) a lump sum payment made for accidental dismemberment
Which of the following types of health policies guarantees renewability to a specified date or age unless certain specified events occur? a) non-cancelable b) optionally renewable c) guaranteed renewable d) conditionally renewable
d) conditionally renewable
Which of the following is used to prevent duplication of coverage? a) coinsurance b) deductibles c) coordination of earnings d) coordination of benefits
d) coordination of benefits
An agent takes an application and initial payment from client. The client is given a conditional receipt. During underwriting, the underwriter notices the check is not signed. The policy is issued as applied for. When is the policy effective? a) application date b) medical exam, since the applicant had a conditional receipt c) date of check d) date policy is delivered, a new health statement is signed, and a new check is paid
d) date policy is delivered, a new health statement is signed, and a new check is paid
Y's $10,000 life insurance policy became effective on 2/1/2000. He died on 11/1/2000. The insurer discovered he had heart surgery 1 year prior to the effective date of the life insurance policy and had not disclosed this. What will the insurer most likely do? a) deny the claim based on pre-existing condition b) pay a reduced benefit c) pay the claim d) deny claim based on material misrepresentation
d) deny claim based on material misrepresentation
An agent deposits premium payments from the applicants into his personal bank account. This agent is guilty of which of the following? a) rebating b) soliciting c) twisting d) embezzlement
d) embezzlement
N died without a will. The distribution of his estate will be handled as a (an): a) Testamentary distribution b) Intervivos distribution c) Vivos testate distribution d) Intestate distribution
d) intestate distribution
Which of the following statements about renewable term insurance is correct? a) it is renewable at the option of the insurance company b) it is renewable at the option of the principal c) it is renewable at the option of the insurer, with proof of insurability d) it is renewable at the option of the insured, without proof of insurability
d) it is renewable at the option of the insured, without proof of insurability
M wants to receive the largest monthly benefit from his fixed annuity contract. Which option should he select? a) Life and 10 year certain b) joint life c) life and 20 year certain d) life annuity
d) life annuity
Which definition of disability is most favorable to the insured? a) any occupation b) they are the same c) two tiered d) own occupation
d) own occupation
An insured becomes disabled three years after his Disability Income policy is issued. The disability is caused by a condition that existed prior to the policy issue date, but was not excluded from coverage. In this situation, the insurer will most likely take which of the following actions? a) deny the claim on the basis of material misrepresentation b) pay the claim for maximum of 6 months only c) deny the claim because it involves a pre-existing condition d) pay the full claim
d) pay the full claim
If an insured commits suicide after the suicide clause in the insured's life insurance policy has expired, the insurer will take which of the following actions? a) refuse to pay the death benefit or refund any premiums b) refund the premiums paid plus interest c) refund only the premiums paid d) pay the full death benefit
d) pay the full death benefit
An agent takes an application from identical twins. They want to buy the same type of policy in the same amount. The insurer issues the policies applied for, but charges a 25% higher premium for one of the policies. The difference in premiums is probably due to which of the following factors? a) incontestability b) insurable interest c) consideration d) risk classification
d) risk classification
Which of the following permits an insurer to mitigate worker's compensation losses? a) juris prudence b) sue the employer c) none of the above d) subrogation
d) subrogation