Exam 17 Wrong Answers

Question 1

Who is the beneficiary in a credit health policy?

Answer 1

The lending institution

Question 2

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

Answer 2

$5,000

Question 3

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?

Answer 3

Universal life

Question 4

All of the following are requirements for life insurance illustrations except

Answer 4

They must be part of the contract

Question 5

In order to become licensed to become a viatical settlement provider, an application must be made with

Answer 5

The Insurance Department

Question 6

Which of the following is not a cost saving service in a medical plan?

Answer 6

Denial of coverage

Question 7

An insured receives an annual life insurance check. What term best describes this arrangement?

Answer 7

Cash option

Question 8

For the purpose of examination by the department, insurers must keep a record of all financial files for at least

Answer 8

5 years

Question 9

What would a physician utilize if he/she wanted to know if a treatment is covered under an insured’s plan and at what rate it will be paid?

Answer 9

Prospective review

Question 10

In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?

Answer 10

Insurer to the insured

Question 11

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

Answer 11

Insurer’s guaranteed minimum rate of interest

Question 12

All of the following are characteristics of group life insurance except

Answer 12

Premiums are determined by the age, sex and occupation of each individual certificate holder

Question 13

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

Answer 13

The capital amount in a lump sum

Question 14

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

Answer 14

Parts A and B of Medicare

Question 15

Which of the following policies would be classified as a traditional level premium contract?

Answer 15

Straight life

Question 16

In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?

Answer 16

The insured must have first been hospitalized for 3 consecutive days

Question 17

Which of the following is true regarding a term health policy?

Answer 17

It is nonrenewable

Question 18

In a group policy, who is issued a certificate of insurance?

Answer 18

The individual insured

Question 19

The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

Answer 19

The death benefit can be increased by providing evidence of insurability

Question 20

All of the following are characteristics of group life insurance plan except

Answer 20

There is a requirement to prove insurability on the part of the participants

Question 21

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

Answer 21

2 years

Question 22

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 22

18 months

Question 23

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Answer 23

Settlement option

Question 24

A rider attached to a life insurance policy that provides coverage on the insurer’s family members is called the

Answer 24

Other insured rider

Question 25

Which of the following are not fundable by annuities?

Answer 25

Death benefits

Question 26

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor’s parents have died or become disabled?

Answer 26

Payor benefit