state license insurance exam
All of the following may be excluded from coverage in a Major Medical Expense policy, EXCEPT
emergency surgery
Which of the following statements is correct concerning taxation of long-term care insurance?
excessive benefits may be taxable
what nonforfeiture option has the highest amount of insurance protection
extended term
If the insured has the right to keep a long term care insurance policy in force by making timely premium payments and the insured may not make any changes to the policy or decline to renew it. What insurance policy is this?
guaranteed renewable
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
immediate annuity
What are the two components of a universal policy?
insurance and cash account
Which of the following is true regarding health insurance?
it could provide payments among the loss of income
what is the benefit of choosing extended term as a nonforfeiture option?
it has the highest amount of insurance protection
All of the following statements are true of a Combination Dental Plan EXCEPT
it is also known as the superimposed plan
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?
life income with period certain
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
limited pay whole life
untrue statements on the application unintentionally made by insureds, that, if discovered would alter the underwriting decision of the insurance company are called what?
material misrepresentations
If an insurer does not have the right to change any provision or the premium rate of a policy, then the policy is
noncancellable
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
notice regarding replacement
An insured has health insurance that covers them at work and at home. This policy was written on what basis?
occupational
Which of the following can surrender a deferred annuity contract?
only the annuity owner
Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due date?
optionally renewable
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
parts a and b of medicare
A participating insurance policy may do which of the following?
pay dividends to the policy owner
Which of the following is NOT true about a joint and survivor annuity benefit option?
payments stop after the first death among the annuitants
Which of the following riders would NOT cause the Death Benefit to increase?
payor benefit rider
what is correct regarding the taxation of group medical expense premiums and benefits?
premiums are tax deductible; benefits are not taxed
the act that sets the standards for advice given by insurance producers regarding annuities is known as the Nebraska
protection in annuity transaction act
under the fair credit reprinting act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must
respond to the consumers complaints
Which of the following is NOT a characteristic of a group long-term disability plan?
the benefit can be up to 50% of the ones yearly income
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
the capital amount in a lump sum
In a group policy the contract is between who?
the employer and the insurance company
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
the fair credit reporting act
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
the insurer will pay the full death benefit from the group policy to the beneficiary
What happens if a deferred annuity is surrendered before the annuitization period?
the owner will receive the surrender value of the annuity
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. What will probably happen to the policy?
the policy will not be affected
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
they are tax deductible
Which provision states that the insurance company must pay Medical Expense claims immediately?
time of payment claims
Which of the following is NOT a goal of risk retention?
to minimize the insureds level of liability in the event of a loss
What is the purpose of the Insurance Guaranty Association?
to protect policy owners against insurers insolvency
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
universal life - option a
Which of the following is NOT a characteristic of a single (k) plan?
unlimited contributions
Are insurance company underwriters allowed to discriminate?
yes but not unfairly
The insured had his wife as the beneficiary of his life insurance policy. to ensure his wife had income for life after this death, he choose the life income settlement option. The amount of payments will not be determined on what?
The insureds age at death
A hospital indemnity policy will pay
a benefit for each day the insured is in the hospital
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?
a debtor has insurable interest in the life of a lender
Which of the following is NOT an allowable 1035 exchange?
a whole life insurance policy is exchanged for a term insurance policy
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
adjustable life
What documentation grants express authority to an agent?
agents contract with the principal
Which of the following hospice expenses would NOT be covered in a cost-containment setting?
antibiotics
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
as of the application date
Which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?
basic information about the supplemental policies
what is true regarding benefits paid to a disabled employee?
benefits may be subject to taxes if the premium was paid by the employer
It is mandatory for all new policies to include surgical and nonsurgical treatment for all of the following EXCEPT
broken cervical vertebrae
How many eligible employees must be included in a contributory plan?
75%
Nebraska resident producers must complete a new set of continuing education requirements every
2 years
A small employer must have at least 2 but no more than 50 workers actively engaged in business for at least how many of the working days during the preceding calendar quarter?
50%
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
$500
An insured has a major medical policy with a $500 deductible and a coinsurance clause of 80/20. If he incurs medical expenses of $4,000, the insurer would pay
2800
the Medicare supplement renewal commissions paid in the third year must be as high as the commission from what year?
2nd
In all health care plans under the Affordable Care Act (ACA), how many essential benefit categories are there?
10
insurers must obtain what before they can sell insurance in the state?
certificate of authority.
All of the following are duties and responsibilities of producers at the time of application EXCEPT
change any incorrect statement on the application by personally initaling next to the corrected spot
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
common disaster clause
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is
conditional
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
conversion
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?
cost containment
