Oklahoma Life and Health State Exam Simulator3/4

The maximum prison sentence given under federal law for unfair and deceptive insurance practices is

15 years

A survivorship life insurance policy usually covers how many lives?

2

In conjunction with an Oklahoma insurance license renewal, which one of the following is the continuing education REQUIREMENT?

24 hours every 2 years

Which statement regarding the cash value of a whole life insurance policy is correct?

Available to the policyowner when policy has been surrendered

Which statement regarding universal life insurance is correct?

Cash value accumulations have a guaranteed minimum interest rate

An accident and health insurance policy's premium requirements are set forth in which of the following provisions?

Consideration clause

What effect does interest income have upon insurance premiums?

Decreases premium

In Oklahoma, an insurer providing small employer group medical plans may discontinue an employer's coverage if

Discontinued to all employees (lost answer)

Which of the following statements BEST describes employer contributions for employer provided health insurance?

Employer contributions are deductible

When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement?

Eye examination

Which statement concerning a decreasing term life policy is accurate?

FACE AMOUNT decreases over the policy period

Which of these statements reflects an accurate portrayal of Medicare SELECT?

Insured uses preferred providers in exchange for paying lower premiums

An applicant for accident and health insurance has a risk factor that is similar to a majority of the insurer's other applicants. What will be the likely outcome of this applicant?

Issued with a standard premium rate

What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?

Less than the policy's face amount

Who regulates an insurer's claim settlement practices?

State insurance departments

Which parties are directly involved in a group accident and health insurance contract?

The employer and the insurer

Which statement concerning adjustable life insurance is accurate?

The face amount and premiums can be changed simultaneously by the policyowner

Which statement regarding a fixed period settlement option is correct?

The installment payment amount is determined by the total number of installments

A single-life annuity only has ONE

annuitant

Federally qualified HMO's must offer

family planning services

Which of the following relationships demonstrates insurable interest in the absence of economic interest?

marriage partners

A stock insurance company is owned by its

stockholders

Tonya has been diagnosed with kidney failure and is covered by group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months immediately following her diagnosis?

Her employer's group accident and health plan

Larry has a Major Medical Expense policy for his family with a $1,000 per family/per year deductible and an 80/20 coinsurance provision. If Larry's family files four claims of $400, $800, $100, and $700 in one year, how much will the insurance company pay?

$800

Which of the following statements accurately describes the "time limit on certain defenses"?

After a stated period of time, claims cannot be denied due to material misrepresentation on the application

Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted?

Fixed amount installment option

An organization that requires healthcare services to be provided by a network of physicians and hospitals is known as a(n)

HMO

Julie is an employee with a group health plan that contains the Mandatory Second Surgical Opinion provision. What is to be expected with this provision in place?

Out-of-pocket expenses are lower when a second surgical opinion is obtained as opposed to having only one

Renewal of small employer health insurance plans may be denied for all of the following reasons EXCEPT

Overuse of physician and hospital services

Dividends from a mutual insurance company are paid to whom?

Policyholders

Omar is covered by a disability income policy. He is hurt while performing an occupation more hazardous than the occupation listed in his policy. The policy's change of occupation provision will have what effect?

Reduce the benefit level

What effect can a long-term care benefit rider have on a life insurance policy?

Reduced DEATH benefit

A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen?

Reduction of premium payment

If an individual would like to enroll in Medicare or seek public information about Medicare, which federal agency handles this?

Social Security Administration

How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)?

Taxed as ordinary income in the year received

A Health Reimbursement Arrangement MUST be established

by the employer

Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans

cover preventative care once every six months

When a sum of money undergoes capital liquidation, that sum will

decrease in size

Which of these is typically regarded as a major treatment in an indemnity dental plan?

dentures

An HMO prescription drug plan is generally characterized by

drugs dispensed through participating pharmacies

Insurable interest involves what assumption?

One person benefits from another person's continued life

Which of the following is NOT a reason for a business to buy key person life insurance?

An increased pension liability if the key employee dies

A reciprocal insurer typically has an administrator who manages the premiums collected from the group's members. This administrator is called a(n)

Attorney in fact

What does the rehabilitation benefit cover in a disability income policy?

Covers the approved cost of the rehabilitation necessary to help a disabled insured return to work

All of these statements correctly describe an aleatory contract EXCEPT

Only one party makes any kind of legally enforceable offer

A policyowner has just borrowed from a life insurance policy's cash value. Which of these statements is true?

In the event of death, the loan amount is deducted from the policy proceeds

Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?

Incontestable clause

A retired couple would like to maximize the income derived from their combined life savings and have it payable until they both die. Which annuity would be their best choice?

Joint and survivor annuity

Which of these is NOT relevant when determining the amount of personal life insurance needed?

Local unemployment rate

Which of the following is an example of an Unfair Claim Settlement Practice committed by an insurer?

Misrepresenting to a claimant pertinent facts or policy provisions relating to coverages at issue

Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

The policy is surrendered for less than what was paid into it

What happens when a policyowner borrows against the cash value of his life insurance policy?

The policy proceeds would be reduced by the outstanding loan balance

Which of the following statements about universal life insurance is NOT true?

Universal life insurance normally has a minimum guaranteed cash value for duration of the policy

An insurance policy that can also be classified as a securities product is called

Variable Life

Which of the following best describes the presumptive disability provision?

Waives the normal total disability requirements

Laura has an employer-based preventative health care plan that focuses on an enrollee's problems, such as drug abuse or stress. These plans are called

Wellness programs

Which event triggers a deferred annuity to start making benefit payments to the annuitant?

When the contract is annuitized

When does the producer give a premium receipt for a life insurance application?

When the initial premium has been collected with the application

Which of these is NOT used as selection criteria in the underwriting process of a life insurance application?

national origin

A life annuity feature which provides benefit payments for a minimum number of years, no matter when the annuitant dies, is called

period certain

When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?

producer

The automatic premium loan provision can be accurately described as a

provision that provides a policy loan to pay any premiums by the end of the grace period

Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be

somewhat less

The following are all elements of a valid contract EXCEPT

written evidence

Medicare supplement insurance that provides a preventative medical care benefit will often cover

yearly physical examinations