Exam 19 Wrong Answers

Question 1

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

Answer 1

The death benefit can be increased by providing evidence of insurability

Question 2

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

Answer 2

It does not have limits on contributions

Question 3

To sign up for Medicare prescription drug plan, individuals must first be enrolled in

Answer 3

Medicare Part A

Question 4

Variable whole Life insurance is based on what type of premium?

Answer 4

Level fixed

Question 5

Peril is most easily defined as

Answer 5

The cause of loss insured against

Question 6

Which clause allows both the insured and dentist to know in advance which benefits will be paid?

Answer 6

Precertification

Question 7

Which of the following is true regarding Medicare supplement policies?

Answer 7

They must be guaranteed renewable

Question 8

Which of the following factors would be an underwriting consideration for a small employer carrier?

Answer 8

Percentage of participation

Question 9

Which component increases in the increasing term insurance?

Answer 9

Death benefit

Question 10

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30 day

Answer 10

Elimination period

Question 11

Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?

Answer 11

20

Question 12

Which of the following is an example of a peril covered in an accident and health insurance policy?

Answer 12

Sickness

Question 13

Who must sign the notice regarding replacement?

Answer 13

Both the applicant and agent

Question 14

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at the time that the insured had concealed information during the application process. What can they do?

Answer 14

Pay the death benefit

Question 15

What is the elimination period for Social Security disability benefits?

Answer 15

5 months

Question 16

The coverage provided by disability income policy that does not pay benefits occurring as a result of the insured’s employment is called

Answer 16

Nonoccupational coverage

Question 17

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

Answer 17

Increased benefits

Question 18

A Straight Life policy has what type of premium?

Answer 18

A level annual premium for the life of the insured

Question 19

Which type of care is not covered by Medicare?

Answer 19

Long term care

Question 20

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 20

5

Question 21

An insured owns a general disability policy and is injured during a war, rendering him disabled. What will be the extent of benefits that he will receive?

Answer 21

0%

Question 22

An insured who has a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?

Answer 22

It will go to the insured’s estate

Question 23

Which of the following entities has the authority to make changes to an insurance policy?

Answer 23

Insurer’s executive officer

Question 24

What is the purpose of coinsurance provisions?

Answer 24

To help the insurance company to prevent overutilization of the policy

Question 25

Within how many days of requesting an investigative report must an insurer notify the consumer in writing that the report will be obtained?

Answer 25

3 days

Question 26

Which of the following is not an example of insurance interest?

Answer 26

Debtor in creditor

Question 27

Which of the following is not true regarding the needs approach method of determining the value of an individual’s life?

Answer 27

Need is predicted using the number of years until the insured’s retirement

Question 28

Which of the following is incorrect concerning taxation of disability income benefits?

Answer 28

If paid by the individual, the premiums are tax deductible