Life and health
The patient protection and affordable care act mandates that insurers provide coverage for adult children of the insured up to the age of
26
How long is the commissioner's term?
4 years
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
What is the maximum allowed rate of interest on policy loans from life insurance
8%
According to the Entire Contract provision, a policy must contain
A copy of the original application for insurance
A 63-year-old man is planning to be employed until age 68. When will he be eligible for Medicare?
Age 65, regardless of his employment status
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company
Aleatory
Who can make a fully deductible contribution to an IRA?
An individual not covered by an employer-sponsored plan
The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's
Attained age
What document describes an insureds medical history including diagnosis and treatments
Attending Physician's Statement
Which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business
Buy-sell agreement
After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true?
By law, the new, individual policy must provide the same benefits as the group insurance policy.
What characteristic makes whole life permanent protection
Coverage until death or age 100
What is another name for interest- sensitive whole life insurance
Current assumption life
What is not true regarding accidental death and dismemberment
Death benefits are paid only if death occurs within 24 hours of an accident
A waiver of premium provision may be included with what type of health insurance policies?
Disability Income
The requirement that agents not commingle insurance monies with their own funds is know as
Fiduciary responsibility
An annuity purchased with multiple payments that begins income payments after one year from the moment of purchase is known as what type of annuity?
Flexible premium deferred annuity
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first.
In direct transfer how is money transferred from one retirement plan to a traditional IRA
From trustee to trustee
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
Which of the following entities has the authority to make changes to an institution policy
Insurers executive officer
The type of dental plan which is incorporated into a major medical expense plan is a
Integrated dental plan
A guaranteed renewable disability insurance policy
Is renewable at the insureds option to a specified age
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
Which of the following best describes the MIB
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Which of the following is true of a children's rider added to an insureds 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 an example of a limited pay life policy
Life Paid-up at Age 65
A whole life policy that the policy owner only pays premiums for a specified number of years is known as what kind of policy
Limited-pay whole life
Which term describes the benefits of a life insurance policy that the policy owner does not automatically relinquish even if the policy lapses
Nonforfeiture values
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions
Which of the following instances would the premium be tax deductible
Premiums paid by an employer on a $30,000 group term life insurance plan for employees
What does not describe the principle goal of a preferred provider organization
Provide medical services only from physicians in the network
A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n
Reciprocity agreement
Which of the following determines the length of time that benefits will be received under the fixed amount settlement option
Size of each installment
Which of the following when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members
Term rider
Which of the following is true about the requirements regarding HIV exams
The applicant must give prior informed written consent
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
The beneficiary will only receive payments of the interest earned on the death benefit.
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?
The group plan will not pay because the employee was injured at work.
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
Which is not a feature of a guaranteed renewable provision
The insurer can increase the policy premium on an individual basis
Hospital indemnity / hospital confinement indemnity policy will provide payment based on
The number of days confined in a hospital.
Which is generally true regarding insureds who have been classified as preferred risks
Their premiums are lower.
What is the purpose of COBRA
To allow continuation of health insurance coverage for terminated employees
What is the purpose of coinsurance provisions
To help the insurance company to prevent overutilization of the policy
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 is a key distinction between variable whole life and variable universal life products
Variable whole life has a guaranteed death benefit
When would a 20-pay whole life policy endow?
When the insured reaches age 100
Which of the following is not covered under a long term care policy
acute care hospital
Which of the following products provides income for a specified period of years or for life and protects a person against outliving their money
an annuity
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance
defamation
How is the Commissioner of Insurance selected to be the chief officer of the Department of Insurance?
elected office
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
fixed period
Who bears all of the investment risk in a fixed annuity?
insurance company
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
interest-sensitive whole life
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
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 is called a second to die policy
survivorship life
