Exam 12 Wrong Answers Flashcards
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium
The Federal Fair Credit Reporting Act
Regulates consumer reports
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
For how many days of skilled nursing facility care will Medicare pay benefits?
100
Regarding viatical settlements, the term terminally ill means a person who is expected to live for no longer than
24 months
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
A policy which covers medical costs related to a specific condition is called a
Dread Disease Policy
What is an important feature of a dental expense insurance plan that is not typically found in a medical expense insurance plan?
Diagnostic and preventative care
Every insurer marketing Long Term Care insurance must establish marketing procedures to ensure all of the following except
LTC policies are marketed effectively to prospective insureds
All of the following are unfair claims practices except
Suggesting negotiations in settling the claim
Which of the following is not an exclusion in medical expense insurance policies?
Coverage for dependents
Which of the following statements is not correct concerning the COBRA Act of 1985?
It requires all employers, regardless of the number or age of employees, to provide extended group health coverage
When can a Long Term Care policy deny a claim for losses incurred because of a preexisting condition?
Within 6 months of the effective date of coverage
The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the
One year term option
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
An insured is covered under 2 group health plans- under his own and his spouse’s. He suffered a loss of $2000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount if any would be paid by the secondary insurer?
$500
The rider that may be added to a Disability Income policy that allows for an increase in the benefit amount under certain conditions is called
Cost of Living (COLA)
Which of the following types of annuities will generally provide the highest monthly income?
Straight life
Which authority is not stated in an agent’s contract but is required for the agent to conduct business?
Implied
In an Adjustable Life policy all of the following an be changed by the policy owner except
The type of investment
Which of the following authorities is authorized to issue a temporary insurance producer’s license?
Commissioner
Which statement regarding insurability risks is not correct?
Insureds cannot be randomly selected
Which of the following types of LTC is not provided in an institutional setting?
Home health care
Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer’s right to change premium amounts?
Continuation provision
Which of the following is not covered under a long term care policy?
Acute care in a hospital
If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing evidence in Pennsylvania with proof of licensing from their prior home state?
90
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint Life Policy
Which of the following is true regarding benefits paid to disabled employees?
They may be subject to taxation if the premium was paid by the employer
An individual purchased a $100,000 Joint Life policy in himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid up
To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
