Exam 12 Wrong Answers

Question 1

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Answer 1

Waiver of premium

Question 2

The Federal Fair Credit Reporting Act

Answer 2

Regulates consumer reports

Question 3

When is the earliest a policy may go into effect?

Answer 3

When the application is signed and a check is given to the agent

Question 4

For how many days of skilled nursing facility care will Medicare pay benefits?

Answer 4

100

Question 5

Regarding viatical settlements, the term terminally ill means a person who is expected to live for no longer than

Answer 5

24 months

Question 6

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?

Answer 6

Decreasing term

Question 7

A policy which covers medical costs related to a specific condition is called a

Answer 7

Dread Disease Policy

Question 8

What is an important feature of a dental expense insurance plan that is not typically found in a medical expense insurance plan?

Answer 8

Diagnostic and preventative care

Question 9

Every insurer marketing Long Term Care insurance must establish marketing procedures to ensure all of the following except

Answer 9

LTC policies are marketed effectively to prospective insureds

Question 10

All of the following are unfair claims practices except

Answer 10

Suggesting negotiations in settling the claim

Question 11

Which of the following is not an exclusion in medical expense insurance policies?

Answer 11

Coverage for dependents

Question 12

Which of the following statements is not correct concerning the COBRA Act of 1985?

Answer 12

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage

Question 13

When can a Long Term Care policy deny a claim for losses incurred because of a preexisting condition?

Answer 13

Within 6 months of the effective date of coverage

Question 14

The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the

Answer 14

One year term option

Question 15

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

Answer 15

5 days

Question 16

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?

Answer 16

$500

Question 17

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

Answer 17

Cost of Living (COLA)

Question 18

Which of the following types of annuities will generally provide the highest monthly income?

Answer 18

Straight life

Question 19

Which authority is not stated in an agent’s contract but is required for the agent to conduct business?

Answer 19

Implied

Question 20

In an Adjustable Life policy all of the following an be changed by the policy owner except

Answer 20

The type of investment

Question 21

Which of the following authorities is authorized to issue a temporary insurance producer’s license?

Answer 21

Commissioner

Question 22

Which statement regarding insurability risks is not correct?

Answer 22

Insureds cannot be randomly selected

Question 23

Which of the following types of LTC is not provided in an institutional setting?

Answer 23

Home health care

Question 24

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?

Answer 24

Continuation provision

Question 25

Which of the following is not covered under a long term care policy?

Answer 25

Acute care in a hospital

Question 26

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?

Answer 26

90

Question 27

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

Answer 27

Survivor protection

Question 28

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?

Answer 28

Joint Life Policy

Question 29

Which of the following is true regarding benefits paid to disabled employees?

Answer 29

They may be subject to taxation if the premium was paid by the employer

Question 30

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?

Answer 30

$100,000

Question 31

Which nonforfeiture option provides coverage for the longest period of time?

Answer 31

Reduced paid up

Question 32

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

Answer 32

10 days