Life Insurance
Mr. E wants to become an insurance advisor. His hiring manager informs him that he must post a single security bond to quality. How much money must Mr. E post?
1000
Long-term care insurance policies must cover which of the following?
Alzheimer's
Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?
Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit
Which of the following hospice expenses would NOT be covered in a cost-containment setting?
Antibiotics
An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?
Apparent
What limits the amount that a policyowner may borrow from a whole life insurance policy?
Cash Value
What phase begins after a new policy is delivered?
Free-Look Period
Issue Age policy premiums increase in response to
Increased Benefits
Medicare Part A services do NOT include which of the following?
Outpatient Hospital Treatment
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Part A & B
Under a Key Person disability income policy, premium payments
Payed by employer / not tax deductible
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
Skilled Care
Which of the following would help prevent a universal life policy from lapsing?
Target Premium
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
The policy is owned by the company
At what point must an Outline of Coverage be delivered?
at the time of the application or upon the delivery of the policy
How are state insurance Guaranty associations funded
by their members - authorized insurers
Scheduled Plans provide first dollar benefits w/o
coinsurance and deductibles
What is the benefit of experience rating?
low claims get lower premiums
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
misrepresentation
Which of the following options best depicts how the eligibility of members for group health insurance is determined?
By conditions of the employment
If an employer health care plan is grandfathered, it is required to
Cover children up to age 26
Which of the following would be a typical maximum benefit offered by major medical plans?
1 Million
If a beneficiary is NOT named for annuity benefits, to which entity will the benefit be paid?
Annuitant's Estate
Which of the following is NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
What type of annuity activity will cause immediate taxation of the interest earned?
Surrendering the annuity for cash
If the owner prematurely surrenders his deferred annuity before the annuitization period begins, which of the following is most likely to occur?
The owner will receive the premium payments that have been paid into the annuity, plus any interest, minus a surrender charge.
Joe has just been diagnosed with a quickly-spreading, fatal form of cancer; his oncologist predicts that he will live for a month. He applies for an individual health insurance policy. What risk classification will he most likely receive?
declined
father payor disability rider
father 6 months
Kevin and Nancy are married; Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the following options would be best for Nancy at this point?
COBRA
An agent just received his Maryland Life\Health insurance license. His specialty is selling long-term care policies. In order to satisfy his continuing education requirement, he must do which of the following?
Complete 24 hours of continuing education, including 2 hours of long-term care education, and 3 hours of ethics, every two years.
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
Conversion
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an Estate
For what reason may a life insurance producer backdate a life insurance policy?
To avoid an increase in premium rate for the insured
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
A tax-sheltered annuity is a special tax-favored retirement plan available to
certain groups of employees
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)
Inspection Report
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
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 type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal Life
All of the following are beneficiary designations EXCEPT
Specified
What is the shortest possible elimination period for group short-term disability benefits provided by an employer?
0 Days
For what time period can coverage be excluded on permissible pre-existing conditions applicable to a Medicare supplement insurance policy?
6 months on effective date of policy
Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death?
Life insurance proceeds
What are the two components of a universal policy?
Insurance and Cash Account