Exam 23 Wrong Answers Flashcards
Which of the following is true regarding a term health policy?
It is nonrenewable
Because an agent is using stationary with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?
Apparent
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
Conversion
To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
Concerning Medicare Part B, which statement is incorrect?
It is fully funded by Social Security taxes (FICA)
The risk of loss may be classified as
Pure risk and speculative risk
Which component increases in the increasing term insurance?
Death benefit
In order to minimize adverse selection, employer group dental plans may require employees who enroll after they were initially eligible to participate to do all of the following except
Increase benefits for a period of one year
An agent selling variable annuities must register with
FINRA
An insured committed suicide one year after his life insurance policy was issued. The insurer will
Refund the premiums paid
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One year term option
Which of the following best describes the bailout provision?
It allows the owner to surrender the annuity without a charge
All of the following long term care coverages would allow an insured to receive care at home except
Skilled care
The causes of loss insured against in an insurance policy is known as
Perils
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?
Return the application to the applicant for completion
An employee is insured under her employer’s group life plan. If she terminates her group coverage, which of the following statements is incorrect?
The insured may choose to convert to term or permanent individual coverage
What must happen when an individual policy or annuity has been personally delivered to the policyowner?
The policyowner must sign a delivery receipt
Which of the following is not true of Disability Buy Sell Coverage?
Benefits are considered taxable income to the business
In forming an insurance contract, when does acceptance usually occur?
When an insurer’s underwriter approves coverage
Which of the following authorities is authorized to issue a temporary insurance producer’s license?
Commissioner
Which of the following statements is incorrect?
A licensee is barred from charging a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer sponsored plan who has earned income
Once a mail order solicitation has been filed, how long may it be used?
2 years
To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
When is the insurability conditional receipt given?
When the premium is paid at the time of application
