test questions insurance

monthy

periodic health claim payments must be made at least: A. monthly B.weekly C. daily D. annually

managed care

pre-hospitalization is considered an example of: A.managed care B.PPO care C.medicaid D.major medical insurance

credit life

the rules governing life insurance and annuity replacements do not apply to: A. whole life B.universal life C. increasing term life D. credit life

10,000

under the USA Patriot act, insurers are required to report receipt of cash payments in excess of: A. 10,000 B.7,500 C.5,000 D.2,500

not limited by dollar amount

In an individual retirement account (IRA), rollover contributions are: A.subject to capital gains tax B.subject to ordinary income tax C.partially limited by dollar amount D.not limited by dollar amount

6 months

Long-term care policies sold in mississippi may exclude coverage for pre-existing conditions for: A.6 months B.8 months C.12 months D.18 months

policy proceeds

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will dedcut the outstanding loan balance from the: A. cash value B. estate of the insured C.policy proceeds D.nonforfeiture value

Fixed deferred

N, age 50 recently bought an annuity that will pay a guaranteed 2,000/month at age 70 for life. What type of annuity did N purchase? A. fixed period B.fixed deferred C.fixed immediate D.fixed variable

Family Maintenance Policy

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase? A. Family benefit policy B.Family Maintenance policy C. Family income policy D. Family survivor policy

P will still receive declared dividends

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? A.P cannot borrow against the policy's cash value while disabled B.P will have to pay income taxes on the amount of premiums waived. C.P will still recieve declared dividends D. P cannot assign ownership of the policy while premium are being waived

Forward the application to the insurer without the intial premium.

What action should a producer take if the intial premium is NOT submitted with the application? A. Keep the application until the premimum is paid. B. Foward the application to the insurer after giving the applicant a binding reciept. C. Foward the application to the insuer, without the intial preimum. D. Foward the application to the insuer after giving the applicant a conditional receipt.

variable

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds? A. Deferred B.Flexialbe C. Variable D. Fixed

recurrent disability

When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following provisions? A.residual disability B.presumptive disability C.recurrent disability D.repeat disability

None

When funds are shifted from one IRA to another IRA, what percentage of tax is withheld? A. 10% B.20% C.30% D.none

usual, customary, and reasonable expenses

Which of the following phrases refers to the fees charged by a healthcare professional? A. deductible B.coinsurance C.usual,customary, and reasonable expenses D.hospital expense

Disability income policy preimums are tax-deductible

Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance? A. Disability income policy premiums are not tax-deductible B.disability income policy premiums are tax-deductible C.major medical policy benefits are normally not taxed D.disability income policy benefits are normally not taxed

payment of claims

Which of these is considered a mandatory provison? A.payment of claims B.insurance with other insurers C.misstatement of age D.change of occupation

entire cash surrender value is taxable

Which of these statements is INCORRECT reguarding the federal income tax treatment of life insurance? A.premiums are normally not tax deductible B.cash dividends are normally not taxed C. entire cash surrender value is taxable D.proceeds are received tax-free if there is a named beneficary

the employee

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? A.the 403(b) custodian B.the financial institution C.the employer D.the employee

Paritial withdraw features beyond a surrender change period.

Whole life insurance policies are contractually guarenteed to provide each of the following, EXCEPT: A. cash value that will ultimately replace the death benefit. B. Nonforfeiture benefit options. C.Premiums that remain fixed for the life of the policy. D. partial withdrawal features beyond a surrender charge period.

100%

XYZ company pays the entire premium for its group health plan. The minimum percentage of eligible employees that must be covered is: A.25% B.50% C.75% D.100%

discounted fees for the patient

a characteritic of preferred provider organization would be: A. discounted fees for the patient B. not allowed to see-out-network physicans C. physicians are paid on a capitations basis D. a primary care physician is required

wavier of premium

a life insurance policy which ensures that the premimum will be paid if the insured becomes disabled has what kind of rider attached? A. accelerated benefits B. wavier of preimum C. cost of living D. return of preimum

Guaranteed insurability option rider

A physician opens up a new practice and qualifies for a 7,000/month disability income policy. what rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? A.extended term rider B.cost of living adjustment rider C. guaranteed insurability option rider D. waiver of premium rider

Applicant

Any changes made on an insurance application requires the intials of whom? A. Insured B.Agent C.Applicant D.Beneficiary

replacememt

J is a producer who is recommending that an insured surrender an existing life insurance policy and purchase a new one. Which provison would this producer be subject to? A. binding B. conversion C. replacement D. 1035 exchange

endowment at age 65

K purchased a 10,000 life policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. K purchased which of the following types of policies? A. Limited-pay life B.term to age 65 C.whole life paid-up at age 65 D.endowment at age 65

Protect the producer

The legal actions provison of an insurance contract is designed to do all the following except: A. Provide the insuer adequate time to research a claim B. protect the insured from having claim research delayed C. Protect the producer. D. Give the insured guidelines for pursuing legal action against and insurer.

provides benefits for a reasonable and necessary medical expenses, subject to policy limits.

a major medical policy typically: A.provides benefits for surgical expenses only, subject to policy limits. B.contains more limitations than a basic hospital, medical, or surgical policy C. contains a 60-day elimination period of losses due to accident D. provides for benefits for reasonable and necessary medical expenses, subject to policy limits

insured

a renewable term policy is renewable at the option of the: A. owner B.company C.insured D. Assignee

upon the insured's death during the term of the policy

a term life policy matures: A.upon endowment of the contract B. upon dealth of the insured C. when the cash value equals the dealth benefit D. upon the insured's death during the term of the policy

paid-up additional insurance

a young, married teacher has two children and owns a whole life policy. if the teacher wants an increasing dealth benefit to protect against inflation, the teacher should select which of the following dividend options? A. paid-up additional insurance B.accumulate at intrest C. reduced preimums D.cash

full face amount minus any past due premiums

an insured is past due on his life insurance premium, but is still within the grace period. what will the beneficiary recieve if the insured died during this grace period? A.refund of all premiums paid, plus intrest B. refund of all preimums paid C. full face amount minus any past due premiums D. full face amount

20

an insured must notify an insurer of a medical claim within how many days after an accident? A. 10 B. 20 C.30 D. 40

15

an insurer must provide an insured with claim forms within _______ days after receiving a notice of loss. A.5 B.10 C.15 D.20

probability of making timely premium payments

consumer reports requested by an underwritter during the application process of a life insurance policy can be used to determine: A. driving history B. probability of making timely premium payments C.if applicat is a tabacco user D. overall health of the applicant

issued in any amount not exceed the amount of the loan

credit life insurance is: A.issued in any amount at the discretion of the applicant B. used in the event of loss of income C. issued in an amount not to exceed the amount of the loan D. coverage that waives the premiums on a loan payment in the event of total disability.

60 days

how long does an individual have to "rollover" funds from an IRA or qualified plan? A. 60 days B.90 days C.120 days D. no limit

owner's rights

in a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipent of any financial benefits from the policy? A.nonforfeiture B.entire contract C.insuring clause D.owner's rights

conditonal

insurance contracts are known as ________ because certain future conditions or acts must occur before any claims can be paid. A. consideration B.unilateral C.aleatory D.conditonal

performance is conditioned upon a future occurance

insurance policies are considered aleatory contracts because: A.they are "take it or leave it" contracts B. both parties consent to the contract C. performance is conditioned upon a future occurance D. the contract is voidable upon proof of fraud

5 months

one becomes eligible for social security disablity benefits after having been disabled for: A. 3 months B. 5 months C.6 months D.12 months

avoid a policy laspe

the automatic premium loan provison is designed to: A.provide a source of revenue to the insurance company B. avoid a policy laspe C.allow a policyowner to request a policy loan D.allow a policyowner to take out additional coverage without evidence of insurability.

internal limit

the phrase "this policy will only pay for a semi-private room" is an example of a: A.maximum policy limit B.internal limit C.stop loss D.participation percentage

Fund a buy-sell agreement

what is considered a vaild reason for a small business to insure the lives of its major shareholders? A. to provide an income for the surviving dependents. B.reduce the company's tax liability C. to pay for final expenses D. fund a buy-sell agreement

100

what is the maximum number of employees (earning at least 5,000) that an employer can have in order to start a SIMPLE retirement plan? A.25 B.50 C.100 D.250

wages

what is the primary factor that determines the benefits paid under a disability income policy? A. education level B. wages C. type of occupation D. age

family maintenance policy

what kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? A. family maintenance policy B.family income policy C. survivor policy D. family survivor policy

policyowner controls where the investment will go and selects the amount of the preimum payment

which is true concerning a variable universal policy? A.policyowner controls where the investment will go and selects the amount of the preimum payment B.policyowner has no say where the investment will go but can choose the preimum mode C. the investment vehicle for this type of policy is held in the insurer's general portfolio

dismemberment

which of the following does social security not provide benefits for? A.surviviorship B.dismemberment C.disability D.retirement

life insurance policies

which of the following is not a limited benefit plan? A. cancer policies B.life insurance policies C.dental policies D.critical illness polices

inform insurer of relvant information not included on the application

which of these actions should a producer take when submitting an insurance application to an insurer? A.issue a binding receipt to applicant if no intial preimum is submitted. B. disclose to the applicant the amount of commissions to be earned on this transaction. C. inform insurer of relevent information not included on the application. D. arrange for a copy of the attending physicain statement to be sent to the producer.

premiums are payable for as long as ther is insurance coverage in force

which of these characteristics is consistent with a straight life policy? A. owner can adjust both premium and dealth benefit B. preimums are lower for the first five years, increase the sixth year, then levels off for the remaining length of the contract. C. owner has the option of converting to term insurance. D. premiums are payable for as long as there is insurance coverage in force.

employee funds the HRA entirely

which of these is not a characteristic of a health reimbursement arrangment? A. employee funds HRA entirely. B. emoloyer funds HRA entirely C. HRA's can be offered with other health plans D. HRA's allow reinburstment for eligible medical expenses

modified whole life

which of these life products is not considered intrest-sensitive? A. modified whole life B. variable universal life C. intrest sensitive whole life D. variable life

reinstatement

which of these provisons require prood of insurability after a policy has lapsed? A. insuring B. conversion C. reinstatement D.consideration

variable life

which of these types of life insurance allows the policyowner to have level preimums and to also choose from a selection of investment options? A. modified whole life B. variable life C. universal life D. adjustable life