Exam 11 Wrong Answers

Question 1

What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?

Answer 1

$5,000

Question 2

Which of the following is one of the requirements for a person to be considered “chronically ill?”

Answer 2

To have a condition that renders the person unable to perform at least 2 activities of daily living

Question 3

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventative care services except

Answer 3

Cervical cancer exams for all women starting at age 40

Question 4

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is True?

Answer 4

The beneficiary will receive the greater of money paid into the annuity or the cash value

Question 5

All of the following are personal uses of life insurance except

Answer 5

Buy-sell agreement

Question 6

When an insurer issued an individual health insurance policy that is guaranteed renewable, the insurer agrees

Answer 6

To renew the policy until the insured has reached age 65

Question 7

A guaranteed renewable health insurance policy allows the

Answer 7

Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class

Question 8

A long term care insurance shopper’s guide must be provided in the format developed by which of the following?

Answer 8

NAIC

Question 9

If an insurer appoints a producer, which authority must be notified?

Answer 9

Department of Insurance

Question 10

The paid up addition option uses the dividend…

Answer 10

To purchase a smaller amount of the same type of insurance as the original policy

Question 11

Employers can reduce health plan costs by coupling a Health Reimbursement Account (HRA) with

Answer 11

A high deductible health plan

Question 12

Kevin and Nancy are married. Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the following options would be best for Nancy at this point?

Answer 12

COBRA

Question 13

Which renewability provision allows an insurer to terminate a policy for any reason, and increase the premiums for any class of insureds?

Answer 13

Optionally renewable

Question 14

A tax sheltered annuity is a special tax favored retirement plan available to

Answer 14

Certain groups of employees

Question 15

Which of the following will be included in a policy summary?

Answer 15

Premium amounts and surrender values

Question 16

To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?

Answer 16

10 days

Question 17

Who effectuated viatical settlement contracts?

Answer 17

Viatical settlement providers

Question 18

Which of the following is true about class designation?

Answer 18

Beneficiaries are not identified by name

Question 19

A person who gives money as consideration for a life insurance policy or interest in the death benefits of a life insurance policy is called a

Answer 19

Viatical settlement purchaser

Question 20

As it pertains to group health insurance, COBRA stipulates that

Answer 20

Group coverage must be extended for terminated employees up to a certain period of time at the former employee’s expense

Question 21

A universal life insurance policy is best described as a/an

Answer 21

Annually Renewable Term policy with a cash value account

Question 22

Which of the following is not true regarding a flexible spending account?

Answer 22

It does not have limits on contributions

Question 23

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

Answer 23

5

Question 24

Issue age policy premiums increase in response to which of the following factors?

Answer 24

Increased benefits

Question 25

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

Answer 25

5 days

Question 26

COBRA. Applies to employers with at least

Answer 26

20 employees

Question 27

Which of the following determines the length of time that benefits will be received under the Fixed Amount settlement option?

Answer 27

Size of each installment

Question 28

A policy will pay the death benefit if the insured dies during the 20 year premium paying period and nothing if death occurs after the 20 year period. What type of policy is this?

Answer 28

Level term

Question 29

Which of the following are not fundable by annuities?

Answer 29

Death benefits

Question 30

All of the following statements are true regarding tax qualified annuities except…

Answer 30

Employer contributions are not tax deductible