Exam 13 Wrong Answers

Question 1

Once a mail-order solicitation has been filed, how long may it be used?

Answer 1

2 years

Question 2

Using class designation for beneficiaries means

Answer 2

Naming beneficiaries as a group

Question 3

All of the following statements concerning Accidental Death and Dismemberment coverage are correct except

Answer 3

Death benefits are paid only if death occurs within 24 hours of an accident

Question 4

Traditional IRA contributions are

Answer 4

Tax deductible

Question 5

An employee is insured under her employer’s group life plan. If she terminated her group coverage, which of the following statements is incorrect?

Answer 5

The insured may choose to convert to term or permanent individual coverage

Question 6

A straight life policy has what type of premium?

Answer 6

A level annual premium for the life of the insured

Question 7

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

Answer 7

90 days of a loss

Question 8

What is the best way to change an application?

Answer 8

Start over with a fresh application

Question 9

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

Answer 9

One year term option

Question 10

HIPAA applies to groups of

Answer 10

2 or more

Question 11

If a new individual long term care policy holder is not satisfied with a new policy, within how many days can the insured return the policy for a full premium refund?

Answer 11

30

Question 12

Which of the following will vary the length of the grace period in health insurance policies?

Answer 12

The mode of the premium payment

Question 13

Which of the following is not true regarding the Life and Guaranteed Minimum annuity settlement option?

Answer 13

It does not guarantee that the entire principal amount will be paid out

Question 14

In a disability policy, the elimination or waiting period refers to the period between

Answer 14

The first day of disability and the day the insured starts receiving benefits

Question 15

After a person’s employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is not true?

Answer 15

By law, the new, individual policy must provide the same benefits as the group insurance policy

Question 16

To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan?

Answer 16

18 months

Question 17

The insurance company underwriter could find information concerning the personal activities and character of an applicant from which of the following reports?

Answer 17

Producer’s report

Question 18

An individual has been diagnosed with Alzheimer’s disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

Answer 18

A portion of the benefit up to a limit is tax free, the rest is taxable income

Question 19

Which of the following statements regarding Business Overhead Expense policies is Not true?

Answer 19

Benefits are usually limited to six months

Question 20

Under which installments option does the annuitant select the amount of each payment, and the insurer determined how long they will pay benefits?

Answer 20

Fixed amount

Question 21

The term illustration in life insurance policy refers to

Answer 21

A presentation of non guaranteed elements of a policy