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Ins > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

Not covered under LTCs home health care

Attending physician
Endowment payout

A

Attending physician

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2
Q

Policy lapses due to nonpayment of premium; how many days would policy be reinstated once premium paid

10
45

A

45

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3
Q

Who bears all risk in fixed annuity

Ins company

Annuitant

A

Ins company

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4
Q

Waiver of premium may be included with

Disability income

Hospital indemnity

A

Disability income

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5
Q

All are correct re Medicare except

They are issued by private insurers

They cover cost of extended nursing home care

A

They cover cost of extended nursing home care

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6
Q

Correct re taxation fo premiums in key person

Premiums are not tax deductible as biz expense

Premiums are tax deductible by key employee

A

Premiums are not tax deductible as bc expense

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7
Q

When reduced paid up nonfortfeiture is chosen face amount

Is reduced to amount of what cash value would buy as single premiums

Decreases over term of policy

A

Reduced to amount of what cash value would buy as single premium

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8
Q

Sole proprietor makes salary of 50000; medical expenses reached total of 75000; he may deduct re his medical expenses…

10000
50000

A

50000

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9
Q

Rider added to life ins policy to pay part of death benefit to insured to cover expenses in nursing or convalescent home

Long term care

Payor benefit

A

Long term care

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10
Q

Paid to beneficiary in event of insured’s accidental death

Capital sum

Principal sum

A

Principal sum

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11
Q

If insured withdraws portion of face amount in form of accelerated benefits bc of terminal illness how will affect payable death benefit from policy

Death benefit will be smaller

Death benefit will be same as original face amount

A

Death benefit will be smaller

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12
Q

No longer billed for medical expenses

Stop-loss limit

Waiver of premium

A

Stop loss limit

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13
Q

waiting period waiver of premium rider

6 months

30 days

A

6 months

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14
Q

Proposed insured makes premium payment on new ins policy; dies; insurer will pay death benefit to beneficiary if policy is approved

Conditional

Unilateral

A

Conditional

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15
Q

How frequently policyowner required to pay premium

Mode

Schedule

A

Mode

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16
Q

All regulate variable policies except

Guaranty association

Sec

A

Guaranty association

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17
Q

Brain surgeon develops tremors in right arm… which disability policy definition of total disability

Own occupation less restrictive

Own occupation more restrictive

A

Own occupation less restrictive

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18
Q

All true re qualified plan except

At distribution all amounts recd by employee are tax free

Employee and employer contributions are not counted as income to employee for income tax purposes

A

At distribution all amounts recd by employee are tax free

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19
Q

Incorrect re medicaid

Federally administered program

Pays for hospital outpatient laboratory and X-ray

A

Federally administered program

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20
Q

Hmo AND ppo

Pos

Fsa

A

Pos

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21
Q

Terms directly associated with annuity funding

Single payment or period payments

Increasing or decreasing

A

Single payment or periodic payments

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22
Q

Substandard risk aka

Rated

Elevated

A

Rated

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23
Q

Joint life settlement pays benefits to two or more annuitants and

Begins upon death of first

Stops upon death of first

A

Stops upon death of first

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24
Q

If contract provides est amount of income for two or more persons with income stopping upon first death of insured it is

Joint and survivor

Joint life annuity

A

Joint life annuity

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25
Q

Skilled nursing care

Spouse

Doctor

A

Doctor

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26
Q

When is misrepresentation fraud

If intentional and material

Never statements by applicant are only representations

A

If intentional and material

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27
Q

All correct re executive bonus except

Policy is owned by company

Any ins may be used

A

It is NOT owned by the company

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28
Q

Intermediate care

Occasional nursing or rehabilitative care

Intensive care

A

Occasional nursing or rehabilitative care

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29
Q

Allows to customize policy to provide additional amount of temporary insured CE on the insured or allows amounts of temporary ins to cover other family members

Term rider

Change of insured rider

A

Term rider

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30
Q

Applicant doesnt rec copay of new ins policy
Who fault

Agent

Insurer

A

Agent

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31
Q

Relation of earnings to ins provision allows ins company to limit insured’s benefits to average income over last

24 months

12 months

A

24 months

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32
Q

All true regarding convertibility EXCEPT

Upon conversion death benefit reduced by 50%

Based on attained age upon conversion

A

Upon conversion death benefit reduced by 50%

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33
Q

Purpose of target premium

Keep policy in force

Pay up policy faster

A

Keep policy in force

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34
Q

Which is NOT true re underwriting group health ins

Group is assessed individually for insurability

Everyone is covered regardless of medical history

A

Group is assessed individually for insurability

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35
Q

Replacing insured’s current health ins policy with new one

Old policy should stay in force until new policy is issued

Old policy must be cancelled before new one can be issued

A

Old policy should stay in force until new policy is issued

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36
Q

Conversion to individual whole life permitted without evidence of insurability within how many days of termination

31 days

30 days

A

31 days

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37
Q

Unfair claims settlement practices except

Suggesting negotiations in settling the claims

Failing to adopt and implement reasonable standards for settling claims

A

Suggesting negotiations in settling the claims

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38
Q

Re credit life ins responsible for reporting term of debt for insurer

Debtor

Creditor

A

Creditor

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39
Q

Inducement offered to insured in sale of ins policy

Rebating

Coercion

A

Rebating

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40
Q

Licensed agent recs criminal conviction

Department of insurance

Naic

A

Department of insurance

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41
Q

Small employer =

At least 2 not more than 50

Between 1 and 25

A

At least 2 and not more than 50

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42
Q

True re iinsurance amount in credit life policy

Creditor can only insure debtor for amount owed

Amount of coverage can be greater than the amount owed

A

Creditor can only insure debtor for amount owed

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43
Q

Under affordable care act cannot be underwritten based on

Health condition

Age

A

Health condition

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44
Q

Insured not legally bound to any particular action in the ins contract but insurer is legally obligated to pay losses covered by policy

Unilateral

Aleatory

A

Aleatory

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45
Q

Replacement situation all considered except

Exclusions

Assets

A

Assets

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46
Q

Which ins policy allows owner to pay more or less than planned premiums

Universal life

Variable whole life

A

Universal life

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47
Q

If insured withdraws portion of face amount in form of accelerated benefits

Death benefit will be smaller

Death benefit will Match original face amount

A

Death benefit will be smaller

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48
Q

Informed hernia repair. Ins plan covers 200 points of surgical expenses. Each point represents $10, so $2000 will be covered by ins plan. What system

Relative value

Conversion factor

A

Relative value

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49
Q

Purchasing permanent life ins policy face value of 25000; all he can afford; wants additional coverage to be available in future; whic option

Guaranteed insurability

Guaranteed renewable

A

Guaranteed insurability

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50
Q

Lapses nonpayment of premium automatically reinstated

45 days

30 days

A

45 days

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51
Q

Hra can be coupled with

Ira

High deductible plan

A

High deductible plan

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52
Q

If annuitant doses before annuitization

Either amount paid into plan or cash value whichever is greater

Cash value

A

Either amount paid into plan or cash value whichever is greater

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53
Q

Variable whole life =

Level fixed

Increasing

A

Level fixed

54
Q

Nonforfeiture has highest amount of ins

Extended term

Conversion

A

Extended term

55
Q

Not characteristic of hmo

Contracting with ins companies

Outpatient care

A

Contrasting with ins companies

56
Q

Within how many days of investigative consumer report must be notified that report will be obtained

3 days

5

A

5 days

57
Q

Individually owned disability income taxable

0

50

A

0%

58
Q

Relation of earnings to insurance provision

24 months

6 months

A

24 months

59
Q

Coinsurance and copayments main diff

Copayment is set dollar amount

Coinsurance is set dollar amount

A

Copayments is set dollar amount

60
Q

Advantage of reinstating policy instea dod applying for new one

Original age is used for premium determination

Proof of insurability is not required

A

Original age is used for premium determination

61
Q

Change insured under policy

Payor benefit rider

Substitute insured rider

A

Substitute insured rider

62
Q

Elimination period refers to period between

First day of disability and day insured starts receiving benefits

Effective date of policy and date first premium is due

A

First day of disability and day insured starts receiving benefits

63
Q

Offer is made when

Applicant submits app to insurer

App is approved and recs initial premium

A

Applicant submits app to insurer

64
Q

Notice prior to suspending cert of authority

10

60

A

10

65
Q

Minimum percentage of licenceees total volume

25%

50%

A

25%

66
Q

Not required illustration sale of ins policy

Name of primary and secondary beneficiaries

Name of insurer

A

Name of primary and secondary beneficiaries

67
Q

Termination of debt

60

30

A

60

68
Q

Authorized insurer aka

Admitted

Certified

A

Admitted

69
Q

Which entity can bind coverage

Federal ins board

Insurer

A

Insurer

70
Q

Term for specific dollar amount paid by hmo member for service

Deductible

Copayment

A

Copayment

71
Q

Annuitant dies while annuity is still in accumulation stage

Beneficiary will rec the greater of money paid into annuity or cash value

Owner’s estate will rec the money paid into the annuity

A

Beneficiary will rec the greater of money paid into annuity or cash value

72
Q

Insured is not legally bound to any action but insurer is legally obligated to pay losses

Unilateral

Aleatory

A

Unilateral

73
Q

Relation of earnings=

A

24 months

74
Q

Pay more or less than planned premium

A

Universal life

75
Q

No deductible=

Comprehensive

First dollar basis

A

First dollar basis

76
Q

Provision prevents legal action against company for at least 60 days after proof is known

Legal actions

Proof of loss

A

Legal actions

77
Q

Immediate cash value

Single premium

Continuous premiums

A

Single premium

78
Q

Ty

A

Yy

79
Q

Back injury; disabled for year;disability income benefit rider in place

Monthly premium waiver and monthly income

Payments for life

A

Monthly premium waiver and monthly income

80
Q

Material misrepresentation

A statement by appliacant that would affect underwriting decision of ins company

Any misstatement made by an applicant for insurance

A

A statement by appliacant that would affect underwriting decision of ins company

81
Q

Which is not correct re non qualified retirement plan

Employer can rec a current tax deduction for any contributions made to plan

Plan is legal method of accumulations money for retirement needs

A

Employer can rec a current tax deduction for any contributions made to plan

82
Q

Fixed refers to all except

Death benefit

Equal annuity payments

A

Death benefits

83
Q

Accidental bodily injury compared to acccidental

Broader in general

More limited in general

A

Broader in general

84
Q

True re Medicare part b

Pays for physician services diagnostic test and physical therapy

Provided automatically to anyone who qualified for part a

A

Pays for physician services diagnostic test and physical therapy

85
Q

Policy lapses and reinstated how any days

45

10

A

45

86
Q

Policyowner wants to increase adjustable life policy.

Death benefit can be increased by providing evidence of insurability

Death benefit cannot be increased

A

Death benefit can be increased by providing evidence of insurability

87
Q

Fails to pay premium due after grace period passes but policy remains in force

Automatic premium loan

Waiver of premium

A

Automatic premium loan

88
Q

Interest earned on policy dividends

Taxable

Tax deductible

A

Taxable

89
Q

Best describes free look provision

Allows insured to return policy within 10 days for full refund of premiums if dissatisfied for an reason

Allows for proposed insured to carefully look over policy before applying for it

A

Allows insured to return policy within 10 days for full refund of premiums if dissatisfied for an reason

90
Q

Probationary period refers to

During which illness related disabilities are excluded from coverage

Between the 10th day of an illness related disability and the fist payment

A

During which illness related disabilities are excluded from coverage

91
Q

Insuring clause does not specify

List of available doctors

Covered perils

A

List of available doctors

92
Q

Annually renewable level dearth benefit that

Increase annually

Remain level

A

Increase annually

93
Q

Covered unable to perform any job for which qualified

Any occupation less restrictive

Any occupation more restrictive

A

Any occupation more restrictive

94
Q

Which is not enrollment period for Medicare part a

Automatic enrollment

Special enrollment

A

Automatic enrollment

95
Q

An employee has group life leaves after 5 years.

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving group plan

She will be covered under group plan but will have to pay an individual policy premium

A

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving group plan

96
Q

Offer usually made when

Applicant submits an application to insurerer

Insurer approves applications nd receives the initial premium

A

Applicant submits an application to insurerer

97
Q

Main difference between stock company and mutual company

Ownership

Amount of benefits

A

Ownership

98
Q

How much notice before suspension of certificate of authority

10 days

30 days

A

10 days

99
Q

Nonresident agent

Agent who resides in another state but licensed in texas

Agent who does not earn commission pin texas

A

Agent who resides in another state but licensed in texas

100
Q

Suspects arson is involved

30 days

10 days

A

30 days

101
Q

True re Medicare supplement policies

Must be at least guaranteed renewable

Must contain a minimum of plans a and b

A

Must be at least guaranteed renewable

102
Q

Termination of debt=

A

60

103
Q

Nonforfeiture highest amount=

A

Extended term

104
Q

Termination of debt=

A

60

105
Q

Nonmember physician utilized under point of service plan

Member patient will have it pay all costs out of pocket

Attending physician will be paid a fee for service but member patient will have to pay higher coinsurance amount

A

Attending physician will be paid a fee for service but member patient will have to pay higher coinsurance amount

106
Q

Re elimination period

Longer elimination lower cost of coverage

Longer elimination higher cost of coverage

A

Longer elimination lower cost of coverage

107
Q

Extended term nonfortfeiture option cash value used to purchase term ins with what face amount

Same as original policy minus cash value

Equal to original policy for as long as cash values wil purchase

A

Equal to original policy for as long as cash values wil purchase

108
Q

What is the max penalty fair credit reporting act noncompliance

1000
2500

A

2500

109
Q

immediate cash value

Single premium

Level term

A

Single premium

110
Q

May change which on guaranteed renewable health ins policy

Rates by class

Individual rates

A

Rates by class

111
Q

Receives quarterly dividends. Instructed company to apply policy dividends to increase death benefit.

Paid up additions

Reduction of premiums

A

Paid up additions

112
Q

Died by suicide one year after life ins policy was issued

Refund premiums paid

Pay nothing

A

Refund premiums paid

113
Q

Cobra applies to employers with at least

20

50

A

20

114
Q

Before death annuitant recd 125000 in monthly benefits from his 25000 straight life annuity. He was also insured under 50000 paid up whole life policy. How much will wife rec

50000

62500

A

50000 FACE AMOUNT

115
Q

Specified dollar amount beyond which insured no longer participates in sharing

Stop loss limit

Corridor deductible

A

Stop loss

116
Q

Protects consumers againasat circulation f inaccurate personal info

Fair credit reporting act

Consumer privacy act

A

Fair credit reporting act

117
Q

Periodic additions to face amount at standard rates w/o proving insurability

Guaranteed insurability rider

Paid up additions option

A

Guaranteed insurability rider

118
Q

Interest only settlement option

Beneficiary will only rec payments of interest earned on death benefit

Beneficiary must pay interest to the insurer

A

Beneficiary will only rec payments of interest earned on death benefit

119
Q

True regarding installments for fixed period annuity settlement except

Life contingency option

Payments are not guaranteed for life

A

Life contingency option

120
Q

Group health ins is characterized by all of the following except

Adverse selection

Master contract

A

Adverse selection

121
Q

Annuity income payments scheduled to begin after 1 year since the annuity was purchased

Deferred
Fixed

A

Deferred

122
Q

Person’s credit character reputation and habits

Consumer report

Consumer history

A

Consumer report

123
Q

Social security def includes all except

Disability expected to last for ast least six months

Inability to engage in any gainful work

Disability resulting from a medically determinable mental impairment

A

Disability expected to last for at least six months

124
Q

Employee terminates coverage under group ins policy

31 days

Obtain coverage under a new group plan

A

31 days

125
Q

Advises client regarding benefits of her life ins policy in exchange for a fee

Agent

Counselor

A

Counselor

126
Q

Most commonly used in credit life ins

Decreasing term

Whole life

A

Decreasing term

127
Q

Arson =

A

30 days

128
Q

Incontestability=

A

2 years

129
Q

Aca/poverty level=

A

100-400%

130
Q

Fraud being committed notify=

A

30 days

Ins (77 decks)

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