Practice Exam

Which of the following does NOT describe hospice care?

It provides care to people with life expectancies of 1 to 2 years

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable

In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least:

12 months

If an insurance company offers Medicare supplement policies, it must offer which of the following plans?

A

What documentation grants express authority to an agent?

Agent's contract with the principal

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean?

All providers will have the same coverage options and conditions for each plan

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 applicant wants to buy a life insurance policy in which he can can on receiving the same benefits as stated in the contract. Which type should he buy?

Fixed

Issue age policy premiums increase in response to which of the following factors?

Increased benefits

Which of the following is NOT true regarding a nonqualified retirement plan?

It needs IRS approval

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group covereage?

No, the group must be formed for a purpose other than obtaining group insurance

All of the following are examples of risk retention EXCEPT:

Premiums

Which of the following insurance options would be considered a risk-sharing arrangement?

Reciprocal

All of the following would be different between qualified and nonqualified retirement plans EXCEPT:

Taxation on accumulation

Which of the following is TRUE regarding the premium in term policies?

The premium is level

Which of the following is NOT the purpose of HIPAA?

To provide immediate coverage to new employees who had been previously covered for 18 months

How often must life settlement brokers renew their license?

Annually

All of the following are true regarding Key Employee Disability Income insurance EXCEPT:

Benefits are taxable to the employer

Which of the following would be the beneficiary in credit life insurance?

Creditor

R recently was found to be engaging in an unfair business practice before a hearing with the Insurance Commissioner. If R was unaware that the practice was unethical, what would the Commissioner probably have done?

Issued a cease and desist order

Which of the following is true regarding a term health policy?

It is nonrenewable

The regulation of the insurance industry primarily rests with

The State

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner

Which if NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data

Basic policy illustration formats must include all of the following EXCEPT:

The illustration may only be white colored paper

How long will the beneficiary receive payments under the single life settlement option?

Until the beneficiary's death

Every small employer carrier must actively offer to small employers at least how many health benefit plans?

2 plans

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

The Commissioner investigates claims filed against a licensee and finds that the licensee has chronically violated several insurance regulations. The Commissioner decides to hold a hearing. What is the minimum amount of notice that the licensee must be given for the hearing?

30 days

Which of the following hospice expenses would NOT be covered in a cost-containment setting?

Antibiotics

Which of the following is NOT true about a joint and survivor annuity benefit option?

Payments stop after the first death among the annuitants

All of the following are true regarding a decreasing term policy EXCEPT?

The payable premium amount steadily declines throughout the duration of the contract

To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan?

18 months

An insured was involved in an accident and could not perform her job for 3 years. If the insured could reasonably perform another job utilizing skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?

2 years

What is the elimination period for Social Security disability benefits?

5 months

One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of:

50 or more

According to the requirements for small employers, an eligible employee may be any of the following EXCEPT:

A part-time employee

All other factors being equal, the least expensive first-year premium payment is found in:

Annually Renewable Term

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members

Which of the following statements concerning Medicare Part B is correct?

It pays for physician services, diagnostic tests, and physical therapy

The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is TRUE?

The cash value will be paid to the annuitant's estate