Simulated exam questions

what is a penalty tax for nonqualified distributions from a health savings account?

1. 8% 2. 10% 3. 12% 4. 20% ANSWER 4

long term care coverage may be available as any of the following EXCEPT

1. Endorsement to a health policy 2. group long-term care 3. individual long-term care 4. endorsement to a life policy ANSWER 1

Wich of the following is true regarding optionals benefits with a long-term care policies?

1. They are offered at no additional cost to the insured 2. They are included in all policies 3. They are available for an additional premium 4. only standard benefits are available with LTC policies ANSWER 3

all of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

1. an offer of employment 2. stocks, securities, or bonds 3. an offer to share in commissions generated by the sale 4. dividends from a mutual insurer ANSWER 4

in a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?

1. half 2. none 3. corridor 4. full ANSWER 3

Insurer may charge which of the following on a guaranteed renewable health insurance policy?

1. no charges are permitted 2. rates by class 3. coverage 4. individual rates ANSWER 2

Which of the following would be an example of an unfair claims settlement practice?

1. offering a quick settlement of a claim 2. suggesting negotiations in settling a claim 3. denying a claim within 10 days of receipt of proof of loss 4. failing to acknowledge a claim with 30 days ANSWER 4

Wich document helps ensure that full and fair disclosure is provided to the recipient of a policy?

1. policy summary 2. statute of limitations 3. outline of coverage 4. benefit limitations ANSWER 3

An insurance agent B likes to add additional coverages to applicants policies and charge them for such coverage without their knowledge. The agents is guilty of

1. rebating 2. defamation 3. sliding 4. misrepresentation AnSWER 3

your clients wants to know what the tax implications are for contributions to a health savings account. You should advise her that the contributions are

1. subject to capital gains taxes 2. tax deductible 3. subject to personal income taxes 4. post tax-dollar ANSWER 2

When an insurer appoints an agent

1. the appointment is for life 2. the insurer is bound by the agents acts 3. the agent must represent the insurers clients 4. thw agent may not be appointment by other insurers ANSWER 2

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later.

1. the insurer will sue the insured for committing fraud 2. because thw insured is currently not a drug user, his policy will not be affected 3. the policy will not be affected 4. the policy will be voided ANSWER 3

An insurance advertisement exaggerates the benefits of an insurance policy, due to human error at the insurers advertising agency. Who will the department of insurance hold responsible for exaggeration?

1. the person who made the mistake 2. the insurer 3. inadvertenr error are not subject to any penalties 4. the advertising company ANSWER 2

Ehat type of information is NOT included in a certificate of insurance?

1. the procedures for filling a claim 2. the length of coverage 3. the cost the company is paying for monthly premiums 4. the policy benefits exclusions ANSWER 1

in insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does thia describe?

1. unilateral 2. unidirectional 3. aleatory 4. conditional ANSWER 1

When does medicare cover nursing home?

1. only if the deductible has been met 2. only for those age 80 and older 3. medicare covers all nursing home care for eligible policyholders 4. only if its part of treatment for a covered illness or injury ANSWER 4

Wich of the following provisions is mandatory for health

1. physical examination and autopsy 2. recurrent disability 3. unpaid premiums 4. intoxicants and narcotics AnSWER 1

Which one of the following is an eligibility requirement for social security disability income benefit?

1. experiencing at least one year of disability 2. being at least 50 years of age 3. currently employed status 4. fully insured status ANSWER 4

wich of the following is not true of disability buy_sell coverage?

1. it is typically written to cover partners or corporate officers of a closely held business 2. premium payments are not deductible to the business 3. the policies provide funds for the business organization 4. benefits are considered taxable income to the business ANSWER 4

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

1. 10 days 2. 3 days 3. 5 days 4. 7 days ANSWER 3

An agent has been convicted of a crime punishable by a 1 year imprisonment. Within how many days must the agent notify the department of insurance?

1. 180 days 2. 10 days 3. 30 days 4. 90 days ANSWER 4

A corporation can be considered a "small group employer" if it has at least one and a maximum of how many employees?

1. 20 2. 30 3. 40 4. 50 ANSWER 4

within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that report will be obtained?

1. 3 days 2. 5 days 3. 10 days 4. 14 days ANSWER 1

What is the maximum elimination period in long-term care policies issued in florida?

1. 30 days 2. 90 days. 3. 180 days 4. 350 days ANSWER 3

The relation of earning to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last

1. 6 months 2. 12 months 3. 18 months 4. 24 months ANSWER 4

all of the following are correct about the required provisions of a health insurance policy EXCEPT

1. a reinstated policy provides immediate coverage for an illness 2. proof of loss forms must be sent to thw insured within 15 days of notice of claim 3. a grace period of 31 days is found in an annual pay policy 4. the entire contract clause means the signed application, policy, endorsement, and attachments constitute the entire contract ANSWER 1

Which of the following does NOT have to be disclosed in a long-term care policy?

1. any riders or endorsements 2. the aggregate amount of premiums due 3. the meaning of the terms " reasonable" and "customary" 4. any limitations or conditions of elegibility for LTC benefits

how soon following the occurrence of a coveted loss must an insured submit written proof of such loss to the insurance company?

1. as soon as possible 2. within 20 days 3. within 60 days 4. within 90 days or as soon as reasonably possible but not exceed 1 year. ANSWER 4

Which of the following best describes a misrepresentation?

1. making a maliciously critical statement that is intended to injure another person 2. discriminating among individuals of the same insuring class 3. issuing sales material with exaggerated statements about policy benefits 4. making a deceptive or untrue statement about a person engaged in the insurance company ANSWER 3

an insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. the insured is still able to perform his current job. To what extent will he receive presumptive disability benefits?

1. no benefits 2. full benefits 3. partial benefits 4. full benefits for 2 year ANSWER 2