2nd Garantee Exam Flashcards
An insurer can decide to not renew an Optionally Renewable policy
On premium due dates
Who would be the insured in business disability insurance?
Key employees
Life insurance creates an immediate estate. Which of the following best explains this statement?
The face amount of the policy is payable to the beneficiary upon the death of the insured
All of the following statements are true regarding an ordinary straight life policy except
It does not have a guaranteed death benefit
An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA
Within 60 days
Which of the following statements is true of a Combination Dental Plan?
It is a combination of a scheduled and nonscheduled dental plan
In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer?
If there are no authorized insurers for a specific type of coverage in this state
A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?
Family term
An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when
The insurance company accepts the risk
Which of the following policies would not offer a policy loan option?
Term life
All of he following are characteristics of group health insurance plans except
The parties that hold a group health insurance contract are the employees and the employer
Utilization management consists of an evaluation of the appropriateness, necessity and quality of health care, and may include
Prospective and concurrent review
An insured’s life expectancy is 6 months. How often may a viatical settlement provider contact the insured and inquire about the insurer’s health status?
Once a month
Which of the following best defines the Probationary Period in group health policies?
A specified period of time that a person joining a group has to wait before becoming eligible for coverage
What type of an interest rate is guaranteed in universal life policies?
Contract interest rate
Conrad receives $50,000 from a $100,000 Accidental Death and Dismemberment policy as a result of the loss of his left arm in an accident. Conrad has received the
Capital Amount
Regarding health insurance, all of the following are tax deductible except
Employee paid group disability income
An individual buys a disability policy on May 1 with a waiver of premium rider. The insured becomes disabled June 1. It is determined the insured is permanently totally disabled on July 1; and he receives his first benefit payment on July 15. When does the waiver of premium provision start?
June 1
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
What is the difference between a straight life policy and a 20 pay whole life policy?
Premium payment period
How often must organizations consult the National Do Not Call Registry?
Every 31 days
An agent’s first year commission cannot exceed what percentage of the renewal commission for servicing a Medicare Supplement policy in its second year?
200%
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?
Grace period
Which of the following is not a characteristic of a managed care plan?
Risk retention
An insured’s hospital policy states that it will pay him a flat fee of $75 per day for each day he is hospitalized. The policy pays benefits on what basis?
Indemnity
With Adjustable Life, the owner can change all of the following except
The insured
What is the maximum civil penalty per violation of the regulations of the Insurance Code that define acts that are subject to fines or license suspension or revocation?
$5,000
An insurer must notify the consumer in writing that an investigative consumer report has been requested within how many days of the initial request?
3 days
All of the following are features of catastrophic plans except
High premiums
All of the following could qualify as a group for the purpose of purchasing group health insurance except
An association of 35 people
Once an insurer receives a claim, within how many days must the insurer provide claims forms to the insured?
10 working days
Under which of the following conditions would life insurance be taxable by the federal government?
If there is a transfer for value
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Decreasing term
Which of the following does not need to be included on the first page of a Medicare supplement policy?
Premium rates
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party’s offer
HMOs are known as what type of plans?
Service
