Exam 10 Wrong Answers Flashcards
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?
Full benefits
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?
Deferred
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured’s accidental death?
Principal sum
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
Which of the following statements is Not correct regarding Medicare?
Medicare Advantage must be provided through HMOs
What is necessary in order to be eligible to receive benefits from a long term care policy?
The insured must be unable to perform some activities of daily living
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?
Outline of Coverage
An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?
The Medical Information Bureau
Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant’s spouse receive in benefits?
$50,000
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?
Reinstatement provision
An applicant is considered to be high risk but not so much that the insurer wants to deny coverage. Which of the following is not true?
The insurer will issue conditional coverage
To sign up for a Medicare prescription drug plan, individuals must first be enrolled in…
Medicare part A
Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policy owner?
Payment of claims
An employer 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.
Another name for a substandard risk classification is
Rated
Which of the following is not a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?
Reimbursement
A policy will pay the death benefit if the insured dies during the 20-year period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
In a non contributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective?
100%
Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal life
Which of the following statements regarding Business Overhead Expense policies is not true?
Benefits are usually limited to six months
An insured’s long term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long term care facility only charged $100 per day. How much will the insurance company pay?
$120 per day
All of the following are considered to be supplemental benefits under an HMO plan except
Preventative services
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid up additions
An employee is insured under her employer’s group life plan. If she terminates her group coverage, which of the following statements is incorrect?
The insured may choose to convert to term or permanent individual coverage
Which of the following will not be an appropriate use of a deferred annuity?
Creating an estate
A return of premium term life policy is written as what type of term coverage?
Increasing
If an insurance company offers Medicare supplement policies, it must offer which of the following plans?
A
The section of a health policy that states the clauses of eligible loss under which an insured is assumed to be disabled is the…
Insuring clause
To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
What is the goal of the HMO?
Early detection through regular checkups
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will…
Pay the policy proceeds only if it would have issued the policy
Which of the following would not be considered an exception to the National Do Not Call List?
Calls based from outside of the United States
All of the following statements concerning the use of life insurance as an Executive Bonus are correct Except
The policy is owned by the company
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
All of the following violations may result in an agent’s imprisonment except
Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction
An insured is scheduled to have two cavities filled. He knows in advance that benefits will be paid for the procedure. Which clause is responsible for the advanced notification?
Prior authorization
