Missed questions exam fx

A producer's license lapses. It can be reinstated without requiring the producer to pass the licensing exam again, provided that the producer applies for reinstatement within a) 90 days. b 3 months. b months. d) 12 months.

12 months

A temporary license in this state is valid for how manv days? a) 180 h 120 30 60

180

Anindividual recentlv lost her iob. She intends to convert her group policy to an individual policy. In order to avoid proving insurability, the conversion must occur within 60 days. hi 61days 30 davs 0 3l davs.

31

All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT a) Single employer with 14 employees. b) An association of 35 people. c labor union. d Multiple employer tusl

Association of 35 people

#60. The "stop-loss" feature on a major medical policy is intended to a) Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense for the life of the policy. b) Discourage insured from making unnecessary appointments at the doctor's office. c) Establish the number of claims that may be filed on a policy in a calendar year. d) Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year

Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year

As a part of the policy approval process, the Commissioner may require the insurer to provide all of the following, EXCEPT

The producer's commission schedule.

What is the purpose of a disability buy-sell agreement? a) To help the business meet overhead expenses in case of the owner's disability b) To protect individuals against loss of income due to a disability c) To allow the business buyout in case of the owner's disability d) To reimburse the business in case of a key employee's disability

To allow the business buyout in case of the owner's disability

A dentist is off work for 4 months due to a disability. His dental assistant's salary would be covered by a) Key Employee Disability. b) Partnership Disability. c) Business Overhead Insurance. d) Disability Income.

Business overhead insurance

Five-year-old David has been diagnosed by a psychiatrist as being emotionally handicapped. David requires extensive treatment for his condition. His parents" health insurance plan covers standard inpatient hospital and medical expenses. Which of the following is true? a) - David's treatment will not be covered. b) David's treatment may be covered on the same basis as other benefits--but only after his case is heard by a court of law. c) David's treatment will be covered--but on a different basis from the other benefits. d) David's treatment will be covered on the same basis as other benefits.

David's treatment will be covered on the same basis as other benefits.

Regarding health insurance, all of the following are tax-deductible EXCEPT a) Employee paid group disability income. b) Employer paid group health insurance. c) Employer paid group Long-Term Care. d) Employer paid group Accidental Death and Dismemberment.

Employee paid group disability income.

How often must producer licenses be renewed? a) Every 12 months b) Every 12 months for the first five years and every 24 months thereafter c) Every 24 months Every 24 months for the first ten years and every three years thereafter

Every 24 months

All of the following are features of catastrophic plans EXCEPT a) High premiums. b) Out-of-pocket costs. c) High deductibles d) Essential benefits.

High premiums

Which of the following best describes a Major Medical Expense Policy? a) It provides catastrophic medical coverage beyond basic benefits on a usual, customary and reasonable basis. b) It provides surgical coverage to an insured with a schedule indicating charges for each procedure. c) It provides coverage for in-hospital doctor visits that are of a nonsurgical nature. d) It provides coverage to an insured who is confined to a hospital with a daily benefit amount and a specified benefit period.

It provides catastrophic medical coverage beyond basic benefits on a usual, customary and reasonable basis.

An example of an alien insurer doing business in this state is one formed under the laws of Arizona Mexico. d) District of Columbia

Mexico

An insurance company that is owned by the policyholders is called a a) Reciprocal insurer. b). Mutual insurer. c) Fraternal insurer. Stock insurer.

Mutual insurer

A producer lives and is primarily licensed in one state but wants to conduct business in a neighboring state. What type of license will allow the producer to do that? a) Surplus lines b) Nonresident c) Resident d) Limited lines

Nonresident

Which of the following terms relates to disability income insurance? alunsurable interest Residual benefit Coinsurance stop loss © Deductibles

Residual benefit

What does the application of contract of adhesion mean? a) The holder of the contract has the ultimate power of promise. b) The insurer may go to another for representation. c) It makes sure that the insured does not get more than the value of the loss. d) Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the

An insured, who is 44 years old, falls while mountain climbing on vacation. He is left paralyzed. After a year, doctors feel he will never recover from his iniuries. From which of the following programs will he be able to collect disability income? a) Social Security h) Medicare ci Medcal Worker's Compensator

Social security

#42. If a license is revoked, that person cannot apply for another license for another a) 6 months. b) Year. c) 2 years. d) 3 years. A revocation

2 years

According to the Time Limit on Certain Defenses provision, statements or misstatements made in the application at the time of issue cannot be used to deny a claim after the policy has been in force for a minimum of how many years? a 1 vear b 2 years C 3 years 1 svears

2 years

Which of the following CANNOT obtain a temporary license? a) - An employee of a retirins producer until the training of the new personnel is complete b) An applicant in the process of obtaining a permanent producer license c) The surviving spouse of a deceased producer d) A designee of a producer entering the U.S. Armed Forces

An employee of a retirins producer until the training of the new personnel is complete

An underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses? a) Policy application b) Medical exam c) Attending Physician's Statement MIB Report

Attending physician statement

A licensed producer moved from an apartment to a house on January 1. By what date must the producer notify the Commissioner of the change in address? a Bv Marn 31 b) By January 10 c) By January 31 By January 14

By January 10

Which of the following policy provisions makes it clear that both parties to a contract must contribute something of value for the contract to be effective? a) Assignment b) Incontestability c) Consideration d) Ownership

Consideration

An insurer that operates for one or more social, educational, charitable, benevolent, or religious purposes for the benefit of its members is known as a Reciprocal insurer Stock insurer. c) Fraternal insurer.

Fraternal insurer

What is the purpose of the impairment rider in a health insurance policy? a) To provide disability coverage b) To identify pre-existing conditions c) To exclude coverage for a specific impairment d) To cover impairments that otherwise could not be covered

To exclude coverage for a specific impairment

An elimination (waiting) period may NOT have to be satisfied for a disability in which of the following? a An insured suffered the disability from the results of active duty with the US Armed Forces b) An insured is disabled from a work-related accident © An incured contracts an incurable disease An insured suffers a relapse of a prior disability within 6-months of the initial covered disability

An insured suffers a relapse of a prior disability within 6-months of the initial covered disability

The guaranteed purchase option is also referred to as the a) Impairment rider. b) Evidence of insurability rider. c) Future increase option. d) Multiple indemnity rider.

Future increase option.

Which of the following is NOT a cause of loss form for commercial lines insurance? Special D) General c Basic Broad

General

#68. The Minnesota Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT alinsurees D) Insurers. c Policvowners d) Beneficiaries.

Insurers

The benefits from a business overhead expense insurance policy a) Cover all business expenses but are taxable to the business owner. b) Are received tax free. c) Are only available upon the business owner's death. d) Are limited to covered expenses and are taxable to the business.

Limited to covered expenses and are taxable to the business

producer who failed to comply with the state continuing education requirement is guilty of a First degree offer class A violation Misdemeanor. Felonv. ? Need Help O

Misdemeanor

Guaranteeing future dividends is considered to be an unfair or deceptive act known as a) False financial statements. b) Rebating. c) Misrepresentation. d) Twisting.

Misrepresentation

Which of the following best defines the unfair trade practice of rebating? a) - Charging premium amounts in excess of the amount stated in the policy b) Making false statements that are maliciously critical and intended to injury another person in the business of insurance c) Offering an inducement of something of value not specified in the policy d) Making statements that misrepresent an insurance policy in order to induce an insured to replace the policy

Offering an inducement of something of value not specified in the policy

#75. Which of the following optional provisions allows insurers to limit benefits to an insured's average income over the last 2 years? a) Change of Occupation b) Time Limit on Certain Defenses c) Conformity to State Statutes d) Relation of Earnings to Insurance

Relation of Earnings to Insurance

Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician? a) Skilled care b) Intermediate care c) Custodial care Assisted living

Skilled care

insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer major medical policy? a) Speak with a claims adjuster or another representative from the insurance company. ¡b) Submit the description in their own words on a plain sheet of paper. c) Be reimbursed any copayment or deductible on the claim d) Demand full payment immediately for the claim

Submit the description in their own words on a plain sheet of paper.

The state of Minnesota has enacted a plan designed to promote the availability of health insurance to small employers. To be eligible for coverage, which of the following requirements must be met? 100% of eligible employees must participate in a plan. b) The employer may not have up to 100 employees. Employees to be covered must meet medical insurability standards. d) The business must employ at least 2 people on 50% of its working days

The business must employ at least 2 people on 50% of its working days

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy has committed an illegal practice known as

Twisting

An aleatory contract is based on what kind of exchange? a) Equal amounts for pay in and pay out b Balanced benefits Exchange of equal obligations d) Unequal exchange of values

Unequal exchange of values

#57. If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times? a) Within 10 days of when the policy was delivered b) Before any claim has been filed on the policy c) Within 10 days of when the policy was issued d) Within 10 days of when the insurer received the first premium The free look period begins at the time the policy is delivered.

Within 10 days of when the policy was delivered

#9! An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of bent Within 30 days. b) Before termination is complete. Within 10 days. d Within 60 days,

Within 60 days

Which of the following describes the relationship between the principal sum and a capital sum? a) The capital sum varies, while the principal sum does not. b) The principal sum is a percentage of a capital sum. c) A capital sum is a percentage of the principal sum. d) The principal sum varies, while the capital sum does not.

capital sum is a percentage of the principal sum.