Need to go over
A group life insurance policy insured may assign up to __ of the insureds coverage
100%
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss.
15
A licensee must complete __ hours of continuing education every two years
16
A nondisabled individual is first eligible for a Medicare Supplement policy at age
65
N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?
Claim will be denied
Which of the following is NOT included in the policy face?
Exclusions
Which of the following nonfofeiture options offers the highest death benefit
Extended term
What is the required renewability status of all Medicare supplement policies
Guaranteed renewable
All of these statements about the Waiver of Premium provision are correct EXCEPT
Insured must be eligible for Social Security disability for claim to be accepted
The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)
Insuring agreement
A sole proprietor may use this plan only if the employers of this business are included
Keogh pension plan
Health insurance coverage of autism spectrum disorder treatments may be limited in which way?
Medically necessary treatment in accordance with a treatment plan
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?
Modified Whole Life
Which of the following provisions guarantees that premiums will be waived if a juvenile life policyowner becomes disabled
Payor clause
What is the consideration given by an insurer in the consideration clause of a life policy
Promise to pay a death benefit
A major medical policy typically
provides benefits for reasonable and necessary medical expenses, subject to policy limits
A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as
representation
With Optionally Renewable Health policies, the insurer may
review the policy annually and determine whether or not to renew it
The suicide provision for life policies would apply to
subsequent increases in benefits
An individual who purchased a life annuity is given protection against
the risk of living longer than expected
All of these are considered to be a benefit under social security except for:
unemployment
Pre-hospitalization authorization is considered an example of
managed care
Which of these is not an element of life insurance premiums
morbidity rate
In an individual retirement account (IRA), rollover contributions are
not limited by dollar amount
J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?
Nonoccupational coverage
What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value?
Notice Regarding Replacement
T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called
Time Limit on Certain Defenses
An ___ annuity pays benefits based on units rather than stated dollar amounts
Variable
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Variable Universal Life
Medicare Part B does NOT cover
inpatient hospital services
An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?
$1,250 3.5 months - 1 month elimination period = 2.5 months. 2.5 months X $500 monthly indemnity = $1,250.
Insurers may request a hearing within ___ if their policy is rejected
20 days
continuing education providers must report to the director a licenses earned credit hours within
30 days
Which of the following is not a required provision in a group life policy?
Accidental Death and Dismemberment
The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called an
Accidental Death and Dismemberment rider (AD&D)
A policyowner may generate taxable income from which of the following Dividend Options?
Accumulation at interest
Which of the following would a Medicare supplement policy cover
Allowable amounts under Medicare Part B
Group health plans typically contain a coordination of benefits (COB) provision. this provision's purpose is to
Avoid the duplication of benefit payments
To be eligible for a group health policy a group must comply with which of the following
Be formed for a purpose other than obtaining insurance
A resident for a nonresident producer license must
Be in good standing in their home state
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Benefits are taxable to T
The difference between group insurance and blanket health policies is
Blanket health policies do not issue certificates
Which of the following is considered a producers fiduciary responsibility
Collect premiums and remit to the insurance company as soon as reasonably possible
An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?
Consideration clause
Insurance policies are offered on a "take it of leave it" basis, which make them
Contracts of adhesion
Which of the following features of a group term life enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?
Conversion privilege
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued
B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have?
Disability Income
Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual accident and health insurance
Disability income policy premiums are tax-deductible
The federal income tax treatment of employer provided group medical expense insurance can be accurately described as
Employee's premiums paid by the employer is tax-deductible to the employer as a business expenditure
Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract?
Entire Contract
A universal life policy is sometimes referred to as unbundled life policy because the owner can see the interest earned, cost of insurance and the
Expense charges
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
Full benefits are payable under the Master contract
X is insured with a disability income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain?
Guaranteed renewable
All of the following statements regarding a tax sheltered annuity(tsa) are true except
Income derived from the TSA is received income tax free
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?
Income that cannot be outlived by the owner
T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?
Life Annuity with Period Certain
A producer is circulating incorrect information about the benefits of a policy. This producer may be found guilty of
Misrepresentation
Which of these statements accurately describes the waiver of premium provision in an accident and health policy
Premiums are waived after the insured has been totally disabled for a specified time period
P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as?
Recurrent Disability
P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?
She does need to provide evidence of insurability
The percentage of an individuals primary insurance amount(pi's) determines the benefits paid in which of the following programs?
Social security disability income
Whole life insurance is sometimes referred to as "straight life" what does the word straight indicate when using this phrase
The duration of premium payments
Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
Variable Life
A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of
adhesion
An applicant for a nonresident producer license must
be a producer in good standing in their home state
In order to establish a health reimbursement arrangement (HRA) it must
be established by the employer
An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to
determine if the applicant is an acceptable risk by completing standard underwriting procedures
Which of the following provisions specified how long a policyowners health coverage will remain in effect if the policyowner does not pay the premium when it is due?
grace period
The first portion of a covered major medical insurance expense that the insured is required to pay is called the
initial deductible
A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
irrevocable
Basic Hospital and Surgical policy benefits are
lower than the actual expenses incurred
At the time of application, major medical health plans (including HMOs) are REQUIRED to
offer coverage for prosthetic devices
Whole life insurance policies are contractually guaranteed to provide each of the following EXCEPT
partial withdrawal features beyond a surrender charge period
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
the current contract surrender value
Life and health insurance policies are
unilateral contracts
Disability policies do NOT normally pay for disabilities arising from which of the following?
war
What type of insurance offers permanent life coverage with premiums that are payable for life?
whole life
