test2

in a relative value system of determining coverage for a given procedure what term describes the total amount payable per point

conversion factor

which type of policy can be changed from one that does not accumulate cash value to one that does

convertible term policy

key person insurance policies can pay for which of the following

costs of training a replacement

which of the following is not an example of insurable interest

debtor in a creditor

at what point would a misrepresentation made on an insurance application be considered fraud?

if it is intentional and material

all of the following are nonforfeiture options except

interest only

which of the following is another term for an annuity accumulation period

pay in period

which of the following provisions is required for health insurance policies

physical examination and autopsy

which statement correctly describes group disability income insurance

the insured's income determines the extent of benefits

a general disability policy owner is injured during a war rendering her disability what will be the extent of benefits that she will receive

0%

the relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to their average income over the last

24 months

An insured owns a $50,000 whole life policy. At age 46, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

50,000

in life insurance the waiting period on a waiver of a premium rider is

6 month

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of loss

rob has an individual major medical policy that requires a coinsurance payment rob rarely visits his physician and would like to pay the lowest premium possible which coinsurance would be best

90/10

which of the following must be a producer receive to sell variable life insurance policies

FINRA resignation

According to the Entire Contract provision, a policy must contain

a copy of the insurance application

which of the following does the insuring clause not specify

a list of available doctors

which of the following named beneficiaries would not be able to receive a death benefit directly from the insurance provider in the event of the insured death

a minor son of the insured

the two types of assignments are

absolute and collateral

under the disability income policy if the insured changes to a more hazardous occupation after the policy has been issued and a claim is filed the insurer should

adjust the benefit commensurate with the increase risk

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

adjusted to the insured's age at the time of renewal

Group Health Insurance (GHI) is characterized by all expcet

adverse selection

which of the following terms best describes the concept that the insured pays a small premium for a large amount of risk on the insurance providers part

aleatory

under the mandatory uniform notice of claim provision the first notice of sickness or injury covered under an accident and health policy has to to include

an adequately clear statement to identify the insured and the nature of the claim

while a claim is pending an insurer can require that

an independent examination as often as reasonably required

the equity in a equity index annuity is linked to

an index like the standard & poors 500

an agent collected the entire premium with the application for the life insurance and the policy was issued two weeks later when does the policy's coverage become effective

as the application date

An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?

ask the applicant to sign a statement of good health

in a replacement situation all of the following have to be considered expect

assets

a person is insured under her employers group disability income policy the insured suffered an accident while for 4 months which would be true if the disability income policy pays the benefit

benefits that came from employers contributions are fully taxable as income to the employee

what license or licenses are needed to sell variable annuities

both a life insurance license and a securities license

under a disability a small business owner is an insured that funds a buy sell agreement if the owner becomes disabled or dies the policy would provide which of the following

cash to the owner's business partner to achieve a buyout

when steve purchased his health policy he was a roofer he since has changed occupations and now manages a bookstore upon notifying the insurance company the change of his occupation the insurer should?

coinsider decreasing the premium

since an insurance policy is a legal contract it is required to confirm to the state laws governing contracts which require all of the following except

conditions

representations are oral and written statements made by the applicant that are

considered to be true to the best of the applicant's knowledge

which of the following includes information regarding an individual's credit , reputation, character and habits

consumer report

in medical expense insurance policies which of the following is NOT an exclusion

coverage for dependents

a partnership buy sell agreement where all partners buy insurance on the life of each of the other partners is called

cross purchase plan

which of the following is not a term for the period when the beneficiary or the annuitant receives income

depreciation period

what is a KEY feature of a dental expense insurance plan that is not usually found in medical expenses insurance plan

diagnostic and preventive care

under the group life plan which of the following insured employees would be allowed to convert to an individual insurance of the same coverage once the plan is terminated

employees who have been insured under the group life plan for at least 5 years

the provision in a health insurance policy that ensured that the insurance company cannot refer to any document that is not found in the contract is the

entire contract clause

a husband and wife incur medical expenses that are credited to a single major medical insurance deductible which type of policy do they have

family

when added to a permanent life insurance policy which rider provides an amount of insurance for all family members

family term rider

which of the following is not a dividend option

fixed premium installments

alison is buying a permanent life insurance policy with the face value of 25,000$ while this is all the insurance she can afford right now alison wants to ensure additional coverage will still be available in the future which of the following options should be found in the policy

guaranteed insurability option

Health Savings Account (HSA)

help people save for qualified health expenses

the life income joint and survivor settlement option guarantees

income for two or more recipients under their death

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

indemnity

an insurance provider receives a report regarding a potential insured that includes the insured's habits, hobbies, and financial status what type of report is that

inspection report

the two components of a universal policy are

insurance and cash account

which entity has the authority to revise or make changes to an insurance policy

insurer's executive officer

which of the following policy components includes the insures promise to pay

insuring clause

when a beneficiary receives payments that consist of principal and interest which portions of the payments are taxable as income

interest only

a guaranteed renewable disability insurance policy

is renewable at the insured discretion to a specific age

concerning the free look provision the insurer

is required to allow the policy owner to return the policy for a full refund

which of the following is INCORRECT regarding medicare

it is a program solely administered by the federal government

the policy provision which prevents the insured from beginning any legal action against the insurer for the least 60 days after proof of loss is known as

legal actions

which of the following is an example of a limited-pay life policy

life paid-up at age 65

what kind of life insurance policy requires an insured to only pay premiums for a specific number of years until the policy is paid -up

limited pay life

which of the following individuals is eligible for a health saving acccount

marley is insured by a high deductible health plan (HDHP)

which of the following statements regarding medicare is not correct

medicare advantage has to be provided through HMO's

an insured is involved in an auto accident besides general less severe injuries the insured permanently loses the use of their leg and is entirely blind teh blindness improves one month later to what extent will the insured receive presumptive disability benefits

no benefits

a rider attached to a life insurance policy providing coverage for the insured's family members is called a

other insured rider

a heart surgeon has an accident and develops tremors in his right arm which definition of total disability will cover him for all losses under a disability income policy

own occupation - less restrictive than other definitions

which of the following explains the right of the policy owner to choose options, change beneficiaries and receive the processed of a policy

owner's rights

which provision would prevent an insurer from paying a claim to somebody other than the policy owner

payment of claims

all of the following are true about insurance policy loans except

policy loans can be made on policies that do not accumulate cash value

which disability policy provision describes conditions such as total and permanent blindness or dismemberment that automatically qualify the insured for full disability benefits

presumptive disability

before insures can cover a loss what is the initial period stated in a disability income policy that must pass after the policy is in force

probationary period

the policy owner pays for her life insurance annually until now she has received a non taxable dividend check every year she has decided to use the dividends to help her pay for her next premium which of the following options would allow her to do this

reduction of premium

the primary reason to obtain disability income insurance is to

replace income lost because of a disability

an insured wants to name his wife as the beneficiary of his policy heh also wishes to retain all of the rights of ownership the insured should have his wife names as what type of beneficiary

revocable

upon the insured's death methods used to pay the death benefits to a beneficiary are called

settlement options

what is the best way to change an application

start over with a new application

an insured has undergone multiple hospitalizations and surgeries for an illness during the summer his insurance provider no longer pays bills for medical expenses what term best describes the condition he has met

stop loss limit

which of the following is referred to as a second to die policy

survivorship life

in a business life insurance policy the premiums paid by the employer are

tax deductible by the employer

whose responsibility is it to ensure that all of the questions on an application have been answered

the agent

what is the purpose of an agent providing a conditional receipt to an applicant

the agent provides it only to applicants who prepay all premiums in advance of the policy issue

Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent informs the customer of this change, and he accepts it. What must the agent do now?

the agent should ask the customer to sign a statement acknowledging that they are aware of the change

regarding variable annuities which of the following is correct

the annuitant assumes all the risk on the investment

all of the following statements about equity index annuities are correct except

the annuitant receives a fixed return

an insurance provider is attempting to determine an applicant's insurability and decides to obtain medical information form several different sources which entity is required to be notified of the investigation

the applicant

an applicant signs an application for a $25,000 life insurance policy pays the initial premium and is given a conditional receipt if the applicant is killed in a car accident the next day

the beneficiary would receive the $25,000 death benefit if it was determined that the insured qualified for the policy

how many pints of blood will a medicare supplements core benefits cover

the first 3 pints

The cost for an autopsy covered under the physical exam and autopsy provision is paid by

the insurance provider

all of the following are true about the cancellation of an individual insurance policy under the rights of renewability rider for cancelable policies except

the insurance provider retains unearned premiums

an insured provided their insurance company with a notice of a claim but did not receive any claim forms the insured submits proof of loss and describes the extent of the loss in a hand written letter to the insurance company which is true?

the insured is compliant with the policy requirements regarding claims

when a life insurance policy was issued the policy owner specified a primary and a contingent beneficiary a few years later both the insured and the primary beneficiary died in a car accident and it was impossible to resolve who was the first to die which entity would receive the death benefits proceeds

the insured's contingent beneficiary

what is the advantage of reinstalling a lapsed policy instead of applying for a new one

the original age is used for determining the premium

the life settlement broker represents whom in a life settlement contract

the owner

concerning a decreasing term policy all of the following are true except

the payable premium account steadily decreases throughout the contract

which of the following is true concerning optional benefits with long term care policies

they are available for an added premium

the purpose of managed care health insurance plan is

to control health insurance claims expenses

if only one party to an insurance contract makes a legally enforceable promise what type of contract is it

unilateral

which of the following products has a securities licence requirement

variable annuity

when is the earliest a policy can go into effect

when the applicant is signed and a check is provided to the agent

can a person who belongs to a point of service plan use an out-of-network physician

yes, and they have to use any preferred physician even if its not part of the HMO