Questions I missed: Focused Exam

A Universal Life Insurance Policy is best described as a/an a) Annually Renewable Term Policy with a Cash Value Account b) Variable Life with a cash value account c) Whole Life Policy with two premiums: target and Minimum d) Flexible Premium Variable Life Policy

a)

A Policyowner has sold his life insurance viatical settlement provider. How Long does the provider have to inform the Policyowner's insurer that his life policy has been viaticated? a) 15 days b) 20 c) 30 d) 90

b)

All of the following could be considered rebates if offered to an insured in the sale of insurance Except a) Stocks, securities or bonds b) An offer to share in commission generated by the sale c) Dividend from a mutual insurer d) An offer of employment

c)

An insured and his wife are both involved in a head on collision. the husband dies instantly and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision? a) survivor Life b) Second-to-die c) Common Disaster d) Accidental Death

c)

Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months? a) 12 b) 24 c) 30 d) 36 months

c)

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 10 b) 3 c) 5 d) 7

c)

What documentation grants express authority to an agent? a) Fiduciary Contract b) State Provisions c) Anent's Contract with the Principal d) Agent's insurance license

c)

Any Inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as a) twisting b) false Advertising c) Coercion d) Rebating

d)

A Father owns a life insurance policy on his 15 year old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled what will happen to the life insurance premiums? a) The Insured premiums will be waived until she is 21 b) The premiums will become tax deductible until the insured's 18th birthday c) Since it is the Policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected d) The insured will have to pay premiums for 6 months. if at the end of this period the father is still disabled the insured will be refunded the premiums

a)

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? a) 100 per violation b) revoking of license c) 2,500 d) 1,000

b)

Which nonforfeiture option provides coverage for the longest period of time? a) Accumulation at interest b) Reduced Paid-up c) Extended term d) paid up option

b)

Which of the following authorities that an agent can hold? a) Primary and secondary b) Express and Implied c) apparent and allowed d) Authorized and Admitted

b)

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis? a) Noncancelable b) Nondiscriminatory c) Indemnity d) Guaranteed

d)

For how many days of skilled nursing facility care will Medicare pay benefits? a) 30 b) 60 c) 90 d) 100

d)

All of the following are true regarding Key Employee Disability Income Insurance Except a) benefits are taxable to the employer b) the employer owns the policy c) benefits are paid to the employer to retrain a new person d) Premiums are not tax deductible for the employer

a)

How many pairs of glasses in a 12 month period will a vision expense insurance cover? a) One b) Two c) Three d) Unlimited

a)

How many pints will be paid for by Medicare Supplement Core Benefits? a) First 3 b) None: Medicare pays for it all c) everything after first 3 d) 1

a)

In a replacement situation all of the following must be considered EXCEPT a) Assets b) Benefits c) Limitations d) Exclusions

a)

A rider that may be attached as a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index is called a) payor rider b) Cost of living Rider c) accelerated benefit rider d) Living need rider

b)

Concerning Insurance, the definition of a fiduciary responsibility is a) Handling insurer funds in a trust capacity b) Handling assets or money belonging to others c) Being liable for negligence with respect to clients' applications d) Maintaining an agents personal funds

a)

When an Employee becomes insured under a PPO Plan provided by his Employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen? a) the PPO will pay reduced benefits b) The PPO will not pay any benefit at all c) The Insured will be required to pay a higher deductible d) The PPO will pay the same benefit as if the insured had seen a PPO Physician

a) The PPO will pay reduced benefits, the group health plan will not pay the full amount charged by the non-PPO doctor

All of the following are unfair claims settlement practices EXCEPT a) Failing to acknowledge pertinent communication pertaining to a claim b) suggesting négociations in settling the claim c) Refusing to pay claims without conducting a reasonable investigation d) failing to adopt and implement reasonable standards for settling a claims

b)

Which of the following statements is NOT true concerning insurable interest as it applies to Life Insurance? a) Business partners have an insurable interest in each other b) a Husband or wife has an insurable interest in their spouse c) An individual has an insurable interest in his or her own life d) A debtor has an insurable interest in the life of a lender

d)

Which type of Medicare policy requires insureds to use specific healthcare providers and hospitals (network Providers) except in emergency situations? a) Medicare Advantage b) Medicare Part A c) preferred d) Medicare SELECT

d)

All of the following are true regarding the Medical Information Bureau except: a) MIB reports are based upon information supplied by doctors and hospitals b) MIB information is reported to underwriters in coded form c) MIB reports contain previous insurance information d) Insurers may not refuse to accept an application solely due to information in a MIB report

a)

How Long is the right to examine period for new individual annuities issued in this state? a) 10 days b) 20 c) 45 d) 90

a)

How many eligible employees must be included in a contributory plan? a) 75% b) 90 c) 100 d) 50

a)

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT? a) Employee paid premiums may be deductible if certain conditions are met b) Employee benefits are tax deductible in the year which they were received c) benefits received by the employee are free from federal income tax d) Premiums paid by the employer are deductible as a business expense

b)

An agent selling variable annuities must be registered with? a) The Guaranty Association b) SEC c) FINRA d) Department of Insurance

c)

Which of the following is an example of a producer's fiduciary responsibilities? a) a producer helping his clients to file claims b) a producer reviewing his/her client's coverage c) A producer offering additional coverages to his client d) a producer promptly forwarding premiums to the insurance company

d)

Which of the following is true regarding a term health policy? a) It is conditionally renewable b) It is guaranteed renewable c) it is noncancellable d) It is nonrenewable

d)

Which of the following would be the best option that would help the surviving spouse of the insured put her child through daycare after the insured's death? a) State Education Waiver b) Viatical Settlement c) Estate Conservation d) Life Insurance proceeds

d)

Which type of hospital Policy allows the Policyowner to pay more or less than the planned premium? a) variable life b) decreasing term c) Straight whole life d) Universal life

d)

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? a) Fixed Amount b) Life income with period certain c) Joint and Survivor d) Single life

b)

A policy which covers medical costs related to a specific condition is called a a) Specific Condition Policy b) Limited Coverage Policy c) Dread Disease Policy d) Condition-Specific Policy

c)

The State Insurance code identifies all of the following as prohibited acts that can cause suspension, revocation or denial of an insurance producer license except a) Failing to pay child support obligations b) Committing a felony or equivalent c) Committing any misdemeanor d) Failing to pay state income taxes

c)

When would a 20-pay whole life policy endow? a) After 20 payments b) In 20 years c) When the insured reaches age 100 d) At the insured age of 65

c)

Using a class designation for beneficiaries means a) Naming beneficiaries as a group b) not naming beneficiaries c) naming an estate as the beneficiary d) Naming each beneficiary by his or her name

a)

What is other term for the cash payment settlement option? a) Proceeds b) Lump Sum c) Principal Amount d) Face amount

a)

When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis? a) Reimbursement b) Service c) Limited d) Scheduled

a)

Which of the following is TRUE for both Equity indexed annuities and fixed annuities? a) They have a guaranteed minimum interest rate b) They are both tied to an equity Index c) Both are considered to be more risky than variable annuities d) They invest on a conservative basis

a)

Which of the following is a short term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated? a) Annuity Certain b) Fixed Annuity c) Refunded life d) variable Annuity

a)

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? a) Automatic Premium loan b) Extended term c) Reinstatement d) Reduced paid-up option

a)

An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require? a) Statement of Continued Good Health b) Attending Physician Statement c) A complete medical record d) Sworn health affidavit from the applicant

b)

If an Insurance company wishes to order a consumer report on an applicants to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the information except a) Prior Insurance b) Ancestry c) Credit History d) Habits

b)

Upon the submission of a death claim under a life insurance policy, when should the insurer pay the policy benefit? a) Within 2 years after receiving written proof of Loss b) Immediately after receiving written proof of loss c) on the next anniversary of the policy d) After the estate of the insured has been settled

b)

Which of the following hospice expenses would not be covered in a cost-containment setting? a) Special Hospital Bed b) Antibiotics c) Tylenol d) Morphine

b)

Your Client is planning to retire. She has accumulated 100,000 in a retirement annuity, and wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent you should recommend a) Joint and Survivor b) Straight Life c) Life Income with period certain d) Installment refund

b)

Which of the following effectuate a viatical settlement contract? a) Viatical Settlement brokers b) Lending Institutions c) Viatical settlement Providers d) Viatical Officers

c)

Another name for substandard risk classification is a) Controlled b) Declined c) Elevated d) Rated

d)

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writingg that the report will be obtained? a) 3 days b) 5 c) 8 d) 10

a)

Which of the following is NOT a feature of non-cancelable policy? a) the Insurer may terminate the contract only at renewal for certain conditions b) The premiums cannot be increased beyond the amount stated in the Policy c) The guarantee to renew coverage usually applies until the insured reaches a certain age d) the insured has the right to renew the policy for the life of contract

a) the insurance company cannot cancel a non-cancelable policy, nor can the premium be increased beyond what is stated in the policy. The insured has the right to renew the policy for the life of the contract; however the guarantee to renew usually only applies till age 65

if another government agency takes legal action against a licensee, whose responsibility is it to report the action? a) the person/entity requesting the action b) the licensee c) The Department of Insurance d) the Judge

b) the Licensee must make a report if any action taken against them in another jurisdiction or by another government agency in PA within 30 days of final disposition of the matter

All of the following are requirements for producer license renewal EXCEPT a) renewal fees b) record of fingerprints c) Renewal examination d) Up-to-date Continuing education

c)

An insured is receiving hospice care. His insurer will pay for painkillers but not for an operation to reduce the size of a tumor. What term best fits this arrangement? a) Limited Coverage b) Claims Saving c) Cost-Containment d) Selective Care

c)

Which of the following determines the length of time that benefits will be received under the Fixed-Amount Settlement Option? a) Size of Installment b) Predetermined length of time Stated in Contract c) Length of income Period d) Amount of Interest

a) the size of each installment determines the length of time that benefits are received under the Fixed Amount settlement option. It logically follows that that larger installments translate into shorter benefit periods

An insured purchased an Insurance policy 5 years ago. Last Year she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? a) Reciprocal b) Nonprofit Service Organization c) Stock d) Mutual

d)

What happens if a deferred annuity is surrendered before the annuitization period a) Deferred annuities cannot be surrendered prior to the annuitization period b) The owner will receive the surrender value of the annuity c) The owner will only receive a refund of the premium d) The insurer can only apply the surrender value toward another annuity

b)

The insuring clause of a disability policy usually states all of the following except a) That insurance against loss is provided b) The types of losses covered c) The Method of Premium payment d) The identities of the insurance company and the insured

c)

In Which of the following situations is it legal to limit coverage based on marital status? a) It is Never legal to limit coverage based on marital status b) Excessive number of divorces, as defined by the Insurance Code c) Legal separation during the application process d) Divorce within the last six months of applying for insurance

a)

In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party? a) Insurer to Insured b) Insured to Insurer c) Insurer to the department of Insurance d) Insured to the department of Insurance

a)

What does level refer to in level term insurance? a) Face Amount b) Premium c) Cash Value d) Interest rate

a)

Which of the following is an eligibility requirement for all Social Security Disability Income Benefits a) Be at least 50 b) Have attained fully insured status c) Be disabled for at least 1 year d) Have permanent Kidney Failure

b) Have Attained fully insured Status: Although SS offers many benefits such as retirement, survivors and Medicare, only those who have attained fully insured status are eligible for Disability income benefits. (40 quarters [10 years] attains fully insured)

A Medicare SELECT policy does all of the following except a) Provide payment for full coverage under the policy covered services not available through network providers b) Provide for continuation of coverage that Medicare SELECT policies are discontinued due to the failure of the program c) Prohibit payment for regular covered services if provided by non-network providers d) Make full and fair disclosure in writing of the provisions, restrictions and limitations of the Medicare SELECT policy to each applicant

c)

Under which installment option does the annuitant select the amount of each payment and the insurer determines how long they will pay the benefit? a) Variable amount b) Fixed period c) Fixed amount d) Variable period

c)

When must an IRA be completely distributed when a beneficiary is not named? a) December 31 of the year following the year of the owner's death b) Due date of deceased owner's final tax return including extensions c) December 31 of the year that contains the 5th anniversary of the owner's death d) due date of beneficiary's tax return including extensions

c)

Which of the Following is excluded in a dental Insurance plan? a) Cosmetic treatment due to an accident b) Replacement of a stolen prosthetic device c) lost dentures d) Treatment for the surrounding and supporting tissue of the teeth as for gum disease

c) Loss dentures are specifically excluded from coverage in a dental plan

An Employee insured under a group health policy is injured in a car wreck while performing duties for her employer. This results in a long hospitalization period. Which of the following is true? a) the group plan will pay b) The group plan will pay a portion of the employee's expenses c) the group plan will pay depending on the Employee's recovery d) The group plan will not pay because the employee was injured at work

d)

What is the initial period of time specified in a disability income policy that must pass after the policy is in force, before a loss can be covered? a) Contestable Period b) Elimination Period c) Grace Period d) Probationary Period

d)

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? a) Defamation b) Coercion c) Misrepresentation d) False advertising

d)

If an insurance company offers Medicare supplement policies, it must offer which of the following plans? a) A&B b) B-N c) A-D d) A

d)

Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending? a) none at all b) 1 per week of the claim of processing period c) 2 per week of the claim of processing period d) Unlimitied

d)

Which of the following is the basis of claims against an insurance policy? a) Material change b) Hazard c) Misrepresentation d) Loss

d)