Missed questions

Key Person Disability Insurance

Employer pays the premiums, employee is the insured, and the employer receives the benefits if the key person is disabled. The premiums they pay are NOT tax deductible.

Hospital, medical, or surgical

Medicare supplement policies are designed primarily for reimbursement of expenses of persons eligible for Medicare. What expenses do they cover?

Annuities

What type of policy would not be subject to the life insurance solicitation regulation?

15 days

When a hearing regarding an insurance matter is requested all parties must receive how much notice?

Extended Term

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Indexed Whole Life Insurance

This policy the face amount increases annually to keep up with inflation, premium is fixed, guaranteed minimum interest rate, and cash value depends on the performance of the equity index.

Noncancellable Policies

Type of policy- state the policy cannot be cancelled nor can its premium rates be increased under any circumstances. Disability policies are the most common. Insurer has the unilateral right to renew the policy for the life of the contract but can cancel the policy at any time by discontinuing premium payments.

Business Overhead Expenses

insurance is designed to reimburse a business for business expenses and payroll in the event the business owner becomes disabled. Overhead expenses include such things as rent or mortgage payments, utilities, telephones, leased equipment, employees' salaries, and the like. Benefits are LIMITED to covered expenses and taxable to the business

Probationary Period

A specified period of time that a person joining a group has to wait before becoming eligible for coverage

Separate Account

All underlying assets in a variable life insurance policy must be kept in what type of account, variable life insurance policies cannot provide a guaranteed cash surrender value.

Misrepresentation

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

He won't because he didn't satisfy the elimination period

An insured has an individual disability policy with 30 day elimination period. He becomes disabled on June 1 for 15 days. When will he collect on his disability income payments?

Medicare Advantage Plans

Commonly called Plan C, (used to be called Medicare +Choice) these plans provide Medicare benefits to eligible people, but they differ in that they are administered by private providers rather than by the government. Common supplemental benefits include vision, hearing, dental, general checkups, and health and wellness programs.

Received tax free

How are the taxation of accelerated benefits paid under a life insurance policy?

6 months

How long is open enrollment period for Medicare Supplement policies? To apply for coverage they must do so during an open enrollment period, submit the application within this period of time beginning the first day of the first month the applicant is both age 65 or older and enrolled in benefits under Medicare Part B,

2 months

How soon from a receipt of death must an insurer pay death benefits on a life insurance policy? Payment of Claims provisions requires this

Adjust the death benefit to what the premium would have purchased at the actual age or gender

If an insured dies and it is discovered that the insured misstated his/her age or gender, the life insurance company will do what?

10 days

If an insured pays a health insurance premium each month, how long would the grace period be under the policy?

Gatekeeper

In an HMO plan, this person is the primary care physician. They refer the member to specialists and keeps the member away from higher priced specialists to control costs.

Fresh application and start over or draw a line through the incorrect answer and insert the correct one. Applicant MUST initial the change

When filling out an application for insurance, the applicant makes a mistake. What can the applicant do to correct the mistake?

Only if the individual is not identified

When may HIV-related test results be provided to the MIB?

Both guarantee that the principal and interest will be fully paid out

Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?

Shareholders/Stockholders

Who are stock insurers owned by? They issue nonparticipating policies.

Commisioner of Insurance

Who enforces the provisions of the Insurance Code?

Proposed insured, policyowner, and the agent or producer.

Who must sign an application for health insurance policy?

Policyowner, insured, and applicant

Who needs to have insurable interest in the insured?

30 days

A Medicare supplement policy must have a free-look period of at least how many days?

Part A deductible

A core medicare supplement policy (Policy A) will cover all of the following expenses: first 3 pints of blood, 20% of the Part B coinsurance amounts for Medicare- approved services, and Part A coinsurance. What do they not cover?

Medicare

A health insurance program that is for individuals with permanent kidney failure, those who have been on Social Security Disability for 2 years, and are 65 or over. (Not low income)

Delivered

An insurer mails an insurance policy to a new policyowner. Wen the insurer relinquishes control of the policy, the policy is considered what?

Alien insurer

An insurer organized under the laws of any jurisdiction outside of the United States, whether or not it is admitted to do business in this state.

Proceeds in excess of face amount are taxable as interest

Are proceeds from a life insurance policy taxable?

Principal and interest will be fully paid out

Both fixed-period and fixed-amount settlement options guarantee what?

Nonforfeiture Values

Cash values guarantees in a whole life policy are called

Cease and Desist Order

If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued? They send a written copy requiring the person to stop engaging in such method.

Face amount reserves, incidental benefits amounts, and mortality reserves

In variable life insurance policies, what assets are held in the insurance company's general account?

Fixed amount

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. What settlement option did J choose?

Survivorship Life Policy

Joint life policy in which the policy proceeds are paid out upon the death of the second insured (last death), premium is lower than a joint life policy, can insure more than 2 lives, and premium is based on the joint age.

Estate Conservation

Life insurance proceeds may be used to pay inheritance taxes and federal estate taxes so that it is not necessary for the beneficiaries to sell off the assets.

Agreement

One party accepts the exact terms of the other parties offer.

Medicaid

Program operated by the state with some federal funding tp provide medical care for those in need. To qualify you must be poor or become poor, be a US citizen, or be blind, disabled, pregnant, or over 65, caring for children receiving welfare benefits. Qualify by: age, residency, income level. NOT insurability.

Supplemental Social Security Coverage

Rider to a disability policy

Principal Sum

The amount under an AD&D policy that is payable as a death benefit if death is due to an accident.

Tax free by the individual

The benefits in Medical Expenses Insurance are received ___

Limited Insurance Coverage

These types of insurance all what? Travel insurance, dread disease policy, AD&D policy.

Within 20 days

Under the mandatory uniform provision "Notice of Claim", written notice of a claim must be submitted to the insurer within what time parameters?

Protect the general public

What is the purpose of requiring licenses for persons who transact insurance?

Deferred Annuity

What type of annuity grows tax deferred, used to accumulate funds for retirement, and can be purchased with a single lump sum? Payments begin sometime after 1 year after the contract was purchased.

Term Insurance

What type of insurance products would be appropriate for someone with low income and high insurance needs? This pure protection. Greatest amount of coverage for the lowest premium compared to any other form of protection.

Fixed Annuities

What type of policy does not protect against inflation? The insurance company bears the investment risk.

only an executive officer of the company

With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?

Total Disability

_____ is the inability to perform partial duties of any occupation for which a person is suited by the reason of education, training, or experience.

Either term insurance or permanent insurance

An adjustable life policy can assume the form of what? Provides the owner the best of both worlds.

Misdemeanor

An agent's license has been suspended but continues to transact insurance for his existing clients . This is considered a what? This is illegal in Georgia

Foreign Insurer

An insurer incorporated under the laws of another state but doing business in this state is called what?