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Ins > Exam 4 > Flashcards

Exam 4 Flashcards

1
Q

IF INSURED UNDER VARIABLE LIFE INS DIES

AMOUNTS ARE DEDUCTED FROM DEATH benefit

Loans are waived

AMOUNTS ARE DEDUCTED FROM DEATH
Benefit

A

AMOUNTS ARE DEDUCTED FROM DEATH
Benefit

vlad

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2
Q

All examples of third party ownership of life ins policy except

Insured purchased new home insured Mae an absolute assignment f life ins policy to mortgage company

Insured borrows money from bank and makes a collateral assignment of part of the death benefit to secure the loan

A

Insured borrows money from bank and makes a collateral assignment of part of the death benefit to secure the loan

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3
Q

If hmo is cancelled how long must insurer give insured

45 days

30 days

A

30 days

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4
Q

Upon submission of death claim under life ins policy when must insurer pay policy benefit

Immediately after recg written proof of loss

2

A

Sodt

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5
Q

What authority is responsible for examining operations of ins companies in this state

Commissioner

Guaranty association

A

Commissioner

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6
Q

Which of following is another term fo authorized insurer

Certified

Admitted

A

Admitted

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7
Q

During replacement of life ins a replacing insurer must do which of

Send a copy of notice regarding replacement to department of ins

Obtain a list of all life ins policies that will be replaced

A

Obtain a list of all life ins polices that will be replaced

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8
Q

Married couple owns permanent policy which covers both of their lives and pays death benefit only upon death of first insured

Survivorship life policy

Joint life policy

A

First Insured=Joint life policy

Fijlip like Philip

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9
Q

Which is true re variable annuities

Companies guarantees minimum interest rate

Annuitant assumes risk on investment

A

Annuitant assumes risks on investment

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10
Q

Premium payments for personally owned disability income policies are

Not tax deductible

Tax deductible

A

Not tax deductible

Podnot

Or
Nd tf not down to fall

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11
Q

If a consumer requests additional info concerning an investigative consumer report how long does insurer or reporting agency have to comply

5 days

3 days

A

5 days

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12
Q

Under which Nonforfeiture option does company pay surrender value and have no further obligations to policyowner

Paid up

Cash surrender

A

Cash surrender

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13
Q

Which re biz overhead expense policies is not true

Benefits are usually limited to six months

Any benefits recd are taxable to the business

A

Benefits are usually limited to six months

Bob6

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14
Q

Universal life ins policy is best described as an

Annually renewable term policy with a cash value account

Variable life with a cash value account

A

Annually renewable term policy with a cash value account

Ular universal life annually renew

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15
Q

Which is not covered under plan a medigap

Medicare part a deductible

20% part b coinsurance amounts for Medicare approved services

A

Medicare part a deductible

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16
Q

Which product provides income for specified period of years or life and protects person against outliving their money

Annuity

Survivorship life policy

A

Annuity

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17
Q

All of following info about applicant is identitied in the general info section of life ins application except

Education

Occupation

A

Education

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18
Q

Which is not true re basic surgical expense coverage

There is not deductible

Coverage is unlimited

A

Coverage is unlimited

Ciubs or
BsEXCEPTcu

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19
Q

Individual is purchasing a permanent life ins policy with face value of 25000. While this is all ins he can afford he wants to be sure that additional coverage will be available

Guaranteed insurability option GIO

Guaranteed renewable option

A

Guaranteed insurability GIO
25000=GIO

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20
Q

Death protection component of universal life ins is always

Annually renewable term

Decreasing term

A

Annually renewable term

Ul=ar

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21
Q

Which entity has authority to make changes to an ins policy

Producer

Ins executive officer

A

Ins exec officer

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22
Q

Which of following is available to employers of all sizes

Hra

Msa

A

Hra

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23
Q

Insured pays monthly premium of 100 for her health ins. Duration of grace period under policy?

10 days

31 days

A

10 days

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24
Q

Limited pay life policy example

Life paid up at age 65

Level term life

A

Life paid up at age 65

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25
Q

Nonforfeiture option provides coverage fo longest period of time

Extended term

Reduced paid up

A

Reduced paid up

Non longest=

nlrpu or
Nocrpu

Lprpu

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26
Q

Initial period of time specified in disability income policy that must pass after policy is in force before loss can be covered

Probationary period

Elimination period

A

Probationary period

Dipppp

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27
Q

Typical deductible for basic surgical expense ins

0

200

A

0

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28
Q

Must acknowledge text of notice of claim within

15

30

A

15 NOC
Nocf
Knockfirst or

Tonoc is 15 years old

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29
Q

Each hmo enrollee must be provided

Evidence of coverage

Buyer’s guide

A

Evidence of coverage hmoeoc

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30
Q

Most hmo operate through what type of system

Group formed principally for purpose of obtaining hmo coverage

Group enrollment system either at their place of employment or as member of association

A

Hmoges
Group enrollment system either a their place of employment or as a member of an association

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31
Q

In all plans under Aca how any essential benefit categories are there

10

12

A

10 Aca

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32
Q

Upon submission of death claim under life ins policy when must insurer pay policy benefit

30 days

2 months

A

Sodt

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33
Q

Forcing client to buy ins from particular lender as a condition of granting a loan is defined as

Rebating

Coercion

A

Coercion forcing

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34
Q

Policyowner wants to make sure upon his death the life policy will pay a portion of proceeds annually to espouse but principal will be paid to their children when reach certain age. Which settlement

Interest only

Joint and survivor

A

Interest only

Caio

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35
Q

Couple receives a set amount of income from annuity. Wife dies husband no longer recs annuity payments. What annuity

Joint life

Joint and survivor

A

Joint life
Wdjl or
Wifeyjointlifey

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36
Q

Which of following statements regarding taxation of modified endowment contracts is false

Policy loans are taxable distributions

Withdrawals are not taxable

A

Withdrawals are not taxable mec

Mecwnt

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37
Q

Which option for universal life allows beneficiary to collect both death benefit and cash value upon death of insured

Option a

Option b

A

Option b

Ulbb

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38
Q

Which of the following is not provided by an hmo

Financing

Reimbursement

A

Reimbursement NOT hmo

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39
Q

Which would be considered non qualified retirement plan

Split dollar

Roth IRA

A

Split dollar nqsd

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40
Q

Feature of a disability buyout plan

Taxable benefits

Lump sum benefit payment option

A

Taxable benefits

Dbtb
Dis buyout tax benef

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41
Q

Not included in general info section of application for insurance

Medical background

Occupation

A

Medical background

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42
Q

Typical accident death and dismemberment policy covers all of following except

Income

Life

A

Income

Tad NOT i
income

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43
Q

License will terminate within how many days from due date of obligatory fees and continuing education requirements

180

90

A

90
Lt90 years old!
Or
Of90

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44
Q

Primary diff between health maintenance organization network models and group models

Network model hmo contracts with multiple physician groups to provide services to memebers

Network model hmo requires members to pay coinsurance costs after meeting the initial deductible requirement

A

Network model hmo contracts with multiple physician groups to provide services to memebers

nm!pg rating

Hmo multiple pg
Nmmp
Network model multiple physicians

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45
Q

Upon submission of death claim under life ins policy when must insurer pay policy benefit

2 months

30 days

A

2 months

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46
Q

Most hmo operate through what system

Group enrollment system either at their place of employment or as member of an association

Individual subscribers

A

Group enrollment system either at their place of employment or as member of an association

47
Q

What percentage of containing education hours must be in classroom setting

50

75

A

50

Cr50 years old!!

48
Q

Insured purchased 10 year level term life policy that is guaranteed renewable and convertible. What happens at end of 10 years

Insured may only convert policy to another term policy

Insured may renew the policy for another 10 years but at a higher premium rate

A

Insured may renew the policy for another 10 years but at a higher premium rate

101010hpr

49
Q

For how long is an ins company allowed to defer policy loan requests

6 months

30 days

A

6 months

Def6

50
Q

Nonforfeiture values guarantee which of following for policyowner

That cash value will not be lost

That death benefit will be paid in a lump sum

A

That cash value will not be lost

Nglostnot

Nvcvl

51
Q

Which health ins provision describes the insured’s right to cancel coverage

Renewal provision

Cancellation provision

A

Renewal provision

Cancelrenpro

52
Q

Which statement concerning group health ins is correct

Employer is policyholder

Only employer recs certificate of ins

A

Employer is policyholder

53
Q

An insured misstated her age on an app for an individual health ins policy. Ins company found mistake after contestable period had expired. Ins company will

Adjust the claim benefit to reflect the insured’s true age

Pay the full amount of claim bc the contestable period has ended

A

Adjust the claim benefit to reflect the insured’s true age

54
Q

Which life ins settlement option guarantees payments for lifetime of recipient but also specifies a guaranteed period during which if the original recipient dies the payments will continue to a designated beneficiary

Life income with period certain

Joint and survivor

A

Life income with period certain

OrLrlip
Original recipient lifetime recipient lip

55
Q

Fixed amount settlement=
Fas=

A

Size of each installment=
Size

56
Q

Hmo operate through

Group enrollment system

Individual fee for service

A

Group enrollment system

57
Q

Hmo canceled give insured

45
30

A

30

58
Q

How long commissioner in office

4 years

2

A

By gov every 2 years

59
Q

Not required in outline of coverage

Basic info about ins company

Basic info about supplementary policy

A

Basic info about supplementary policy

60
Q

Not commonly used n credit life ins

Whole life

Decreasing

A

Whole life

Clw like claw

61
Q

Insurers must offer

Reduction of tax remount

Shortened benefit period

A

Reduction of tax remount

62
Q

Hmo act of 1973

No longer forced to offer hmo

Minimum number has decreased

A

No longer forced to offer hmo

63
Q

Individual Disability Income
Premiums
Benefits

A

Nd
Nt

64
Q

Group Disability Income
Premium
Benefit

A

Dd for employer
Taxable

Gdi, ddet like good day! With accent
Or
Gdi Ddet
Oh, goodie..debt

65
Q

Individual Medical
Premium
Benefit

A

Nd
Nt

66
Q

Group Medical
Premium
Benefit

A

Dde

Nt

Hello, gm, Ddent or
Hm Ddent on

67
Q

/Individual Long-Term Care
Prem
Ben

A

Nd
Nt

68
Q

Group Long-Term Care
Prem
Ben

A

Dde
Nt

GlocDdent

69
Q

Individual Medicare Supplement
Prem
Ben

A

Nd
Nt

Ims not down not tired like tims

70
Q

Group Medicare Supplement
Prem
Ben

A

Dde
Nt

Gramasddent in wall!

71
Q

Buy-Sell
Prem
Ben

A

Nd
Nt

72
Q

Key Person
Prem
Ben

A

Nd
Nt

73
Q

Business Overhead Expense
Prem
Ben

A

Dde
T

Boeddet like snake debt

74
Q

Msa
Prem
Ben

A

Dd
Nt meds
T end of year

75
Q

Fsa

A

Nd
Nt

76
Q

Hra
Prem
Ben

A

Dd
Nt

Hraddnt
Human Resources Don’t do not tired
Or
Henderson Rhonda ann don’t do no tired

77
Q

Hsa
Prem
Ben

A

Dd
Nt med
T2065nonmed

78
Q

Personally Owned Health Insurance
Prem
Ben

A

Nd
Tf

Po ndtf pissed off Not down to fall

79
Q

Jlp

A

1st dies

80
Q

Jas

A

2nd dies

81
Q

Jas

A

Either alive

82
Q

Premium of survivorship policy compared with joint life policy

Half the amount
Lower

A

Lower

83
Q

When policy is surrendered for cash value

Policy can be converted to term coverage
Coverage ends and policy cannot be reinstated

A

Coverage ends and policy cannot be reinstated

Surrendered =no reinstate

84
Q

Differences between individual and group health except

Individual ins does not require medical exams while group ins does require medical exams

Individual coverage can be written on an occupational basis group plans cove only nonoccupational

A

Individual ins does not require medical exams while group ins does require medical exams

85
Q

Who must have insurable interest in the insured

Policyowner

Beneficiary

A

Policyowner

86
Q

Another term for accumulation period of annuity

Pay in period

Annuity period

A

Pay in period

87
Q

Under extended term Nonfortfeiture option policy cash value converted to

Same face amount as in whole life policy

Higher face amount as in whole life policy

A

Same face amount as in whole life policy

88
Q

All true re installments for fixed amount except

Payments will stop when annuitant dies

Option pays specific amount until funds are exhausted

A

Payments will stop when annuitant dies

89
Q

In forming an ins account when does acceptance usually occur

When insured submits application

When insureds underwriter approves coverage

A

When insureds underwriter approves coverage

90
Q

Who can make changes to an ins policy

Producer

Ins executive officer

A

Ins exec officer

91
Q

Right to change premium amounts

Continuation provision

Insurers rights

A

Continuation provision

92
Q

Regulations regarding replacement apply to

Renewable term

Replacement of existing policy by same insurer

A

Renewable term

93
Q

Responsible for reporting termination of debt to insurer

Creditor

Debtor

A

Creditor

94
Q

Not allowed in credit life ins

Creditor requiring that a debtor buys ins from a certain insurer

Creditor having a collateral assignment in the policy

A

Creditor requiring that a debtor buys ins from a certain insurer

95
Q

Hmo policy may be canceled or renewed if

Does not reside in the hmo service area

Removed coverage for dependents

A

Does not reside in the hmo service area

96
Q

To become texas ins agent an individual must

Have passed a licensing exam within the 12 months before applying

File a personal financial statement with the commissioner for the previous three years

A

Have passed a licensing exam within the 12 months before applying

97
Q

Unfair trade practice of defamation

Making derogatory oral statements about another insurers financial condition

Refusing to deal with others

A

Making derogatory oral statements about another insurers financial condition

98
Q

Which is not allowed on n credit life insurance

Creditor requiring that debtor buys insurance from certain insurer

Creditor sending agent to insure on credit report

A

Creditor requiring that debtor buys insurance from certain insurer

99
Q

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new ins

A

Replacement rule

100
Q

All insurers that provide life or accident and health ins coverage in texas must be members of what association

A

The life and health ins guarantee association

101
Q

Circulating deceptive sales material to public is what type of unfair trade practice

False advertising
Misrepresentation

A

False advertising

102
Q

What is the minimum percentage of a licensees total volume of premiums in a calendar year that must come from business other than controlled biz

A

25

Mp25 years old

103
Q

According to state Nonfortfeiture law for life ins policies insurers must offer at least one of the following except

Reduction of premium

Reduction of copayment

A

Reduction of premium
Nfrop

104
Q

Commissioner of ins issues cease and desist order and f agent wishes to contest the charges in court how many days after the order was issued does agent have to make request

A

60

Cd 60 years old

105
Q

Classification of small employer means

A

At least two and not more than 50

106
Q

Which of following is example of agents fiduciary responsibility

A

Forwarding premiums to the insurer

107
Q

Insurer purchased a noncancellable health ins policy one year ago: which is not reason for ins to cancel policy

The insured is in an accident and incurs a large claim

Payout is reached

A

The insured is in an accident and incurs a large claim

108
Q

Individual buys flexible premium deferred life annuity with 20 year period certain
What would beneficiary Rec if died five years after beginning annuity phase

Payments for 5 years

Payments for 15 years

A

Payments for 15 years

109
Q

For group medical and dental ins what percentage of premium paid by employer is deductible as biz expense

A

100

110
Q

Cannot refer to any document that is not contained in the contract

A

Entire contract clause

111
Q

Insured decides to surrender 100000 whole life. Premiums add up to 15000. At surrender cash was 18000

A

3000

112
Q

Class designation means

Naming beneficiaries as a group

Naming beneficiaries

A

Naming beneficiaries as a group

113
Q

Commissioner of insurance issues cease and desist and immediately received request for charges to be reviewed in hearing. Within How many days must hearing be held

60

30

A

30

Ins (77 decks)

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