Exam 4 Flashcards
IF INSURED UNDER VARIABLE LIFE INS DIES
AMOUNTS ARE DEDUCTED FROM DEATH benefit
Loans are waived
AMOUNTS ARE DEDUCTED FROM DEATH
Benefit
AMOUNTS ARE DEDUCTED FROM DEATH
Benefit
vlad
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
Insured borrows money from bank and makes a collateral assignment of part of the death benefit to secure the loan
If hmo is cancelled how long must insurer give insured
45 days
30 days
30 days
Upon submission of death claim under life ins policy when must insurer pay policy benefit
Immediately after recg written proof of loss
2
Sodt
What authority is responsible for examining operations of ins companies in this state
Commissioner
Guaranty association
Commissioner
Which of following is another term fo authorized insurer
Certified
Admitted
Admitted
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
Obtain a list of all life ins polices that will be replaced
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
First Insured=Joint life policy
Fijlip like Philip
Which is true re variable annuities
Companies guarantees minimum interest rate
Annuitant assumes risk on investment
Annuitant assumes risks on investment
Premium payments for personally owned disability income policies are
Not tax deductible
Tax deductible
Not tax deductible
Podnot
Or
Nd tf not down to fall
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
5 days
Under which Nonforfeiture option does company pay surrender value and have no further obligations to policyowner
Paid up
Cash surrender
Cash surrender
Which re biz overhead expense policies is not true
Benefits are usually limited to six months
Any benefits recd are taxable to the business
Benefits are usually limited to six months
Bob6
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
Annually renewable term policy with a cash value account
Ular universal life annually renew
Which is not covered under plan a medigap
Medicare part a deductible
20% part b coinsurance amounts for Medicare approved services
Medicare part a deductible
Which product provides income for specified period of years or life and protects person against outliving their money
Annuity
Survivorship life policy
Annuity
All of following info about applicant is identitied in the general info section of life ins application except
Education
Occupation
Education
Which is not true re basic surgical expense coverage
There is not deductible
Coverage is unlimited
Coverage is unlimited
Ciubs or
BsEXCEPTcu
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
Guaranteed insurability GIO
25000=GIO
Death protection component of universal life ins is always
Annually renewable term
Decreasing term
Annually renewable term
Ul=ar
Which entity has authority to make changes to an ins policy
Producer
Ins executive officer
Ins exec officer
Which of following is available to employers of all sizes
Hra
Msa
Hra
Insured pays monthly premium of 100 for her health ins. Duration of grace period under policy?
10 days
31 days
10 days
Limited pay life policy example
Life paid up at age 65
Level term life
Life paid up at age 65
Nonforfeiture option provides coverage fo longest period of time
Extended term
Reduced paid up
Reduced paid up
Non longest=
nlrpu or
Nocrpu
Lprpu
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
Probationary period
Dipppp
Typical deductible for basic surgical expense ins
0
200
0
Must acknowledge text of notice of claim within
15
30
15 NOC
Nocf
Knockfirst or
Tonoc is 15 years old
Each hmo enrollee must be provided
Evidence of coverage
Buyer’s guide
Evidence of coverage hmoeoc
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
Hmoges
Group enrollment system either a their place of employment or as a member of an association
In all plans under Aca how any essential benefit categories are there
10
12
10 Aca
Upon submission of death claim under life ins policy when must insurer pay policy benefit
30 days
2 months
Sodt
Forcing client to buy ins from particular lender as a condition of granting a loan is defined as
Rebating
Coercion
Coercion forcing
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
Interest only
Caio
Couple receives a set amount of income from annuity. Wife dies husband no longer recs annuity payments. What annuity
Joint life
Joint and survivor
Joint life
Wdjl or
Wifeyjointlifey
Which of following statements regarding taxation of modified endowment contracts is false
Policy loans are taxable distributions
Withdrawals are not taxable
Withdrawals are not taxable mec
Mecwnt
Which option for universal life allows beneficiary to collect both death benefit and cash value upon death of insured
Option a
Option b
Option b
Ulbb
Which of the following is not provided by an hmo
Financing
Reimbursement
Reimbursement NOT hmo
Which would be considered non qualified retirement plan
Split dollar
Roth IRA
Split dollar nqsd
Feature of a disability buyout plan
Taxable benefits
Lump sum benefit payment option
Taxable benefits
Dbtb
Dis buyout tax benef
Not included in general info section of application for insurance
Medical background
Occupation
Medical background
Typical accident death and dismemberment policy covers all of following except
Income
Life
Income
Tad NOT i
income
License will terminate within how many days from due date of obligatory fees and continuing education requirements
180
90
90
Lt90 years old!
Or
Of90
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
Network model hmo contracts with multiple physician groups to provide services to memebers
nm!pg rating
Hmo multiple pg
Nmmp
Network model multiple physicians
Upon submission of death claim under life ins policy when must insurer pay policy benefit
2 months
30 days
2 months
Most hmo operate through what system
Group enrollment system either at their place of employment or as member of an association
Individual subscribers
Group enrollment system either at their place of employment or as member of an association
What percentage of containing education hours must be in classroom setting
50
75
50
Cr50 years old!!
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
Insured may renew the policy for another 10 years but at a higher premium rate
101010hpr
For how long is an ins company allowed to defer policy loan requests
6 months
30 days
6 months
Def6
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
That cash value will not be lost
Nglostnot
Nvcvl
Which health ins provision describes the insured’s right to cancel coverage
Renewal provision
Cancellation provision
Renewal provision
Cancelrenpro
Which statement concerning group health ins is correct
Employer is policyholder
Only employer recs certificate of ins
Employer is policyholder
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
Adjust the claim benefit to reflect the insured’s true age
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
Life income with period certain
OrLrlip
Original recipient lifetime recipient lip
Fixed amount settlement=
Fas=
Size of each installment=
Size
Hmo operate through
Group enrollment system
Individual fee for service
Group enrollment system
Hmo canceled give insured
45
30
30
How long commissioner in office
4 years
2
By gov every 2 years
Not required in outline of coverage
Basic info about ins company
Basic info about supplementary policy
Basic info about supplementary policy
Not commonly used n credit life ins
Whole life
Decreasing
Whole life
Clw like claw
Insurers must offer
Reduction of tax remount
Shortened benefit period
Reduction of tax remount
Hmo act of 1973
No longer forced to offer hmo
Minimum number has decreased
No longer forced to offer hmo
Individual Disability Income
Premiums
Benefits
Nd
Nt
Group Disability Income
Premium
Benefit
Dd for employer
Taxable
Gdi, ddet like good day! With accent
Or
Gdi Ddet
Oh, goodie..debt
Individual Medical
Premium
Benefit
Nd
Nt
Group Medical
Premium
Benefit
Dde
Nt
Hello, gm, Ddent or
Hm Ddent on
/Individual Long-Term Care
Prem
Ben
Nd
Nt
Group Long-Term Care
Prem
Ben
Dde
Nt
GlocDdent
Individual Medicare Supplement
Prem
Ben
Nd
Nt
Ims not down not tired like tims
Group Medicare Supplement
Prem
Ben
Dde
Nt
Gramasddent in wall!
Buy-Sell
Prem
Ben
Nd
Nt
Key Person
Prem
Ben
Nd
Nt
Business Overhead Expense
Prem
Ben
Dde
T
Boeddet like snake debt
Msa
Prem
Ben
Dd
Nt meds
T end of year
Fsa
Nd
Nt
Hra
Prem
Ben
Dd
Nt
Hraddnt
Human Resources Don’t do not tired
Or
Henderson Rhonda ann don’t do no tired
Hsa
Prem
Ben
Dd
Nt med
T2065nonmed
Personally Owned Health Insurance
Prem
Ben
Nd
Tf
Po ndtf pissed off Not down to fall
Jlp
1st dies
Jas
2nd dies
Jas
Either alive
Premium of survivorship policy compared with joint life policy
Half the amount
Lower
Lower
When policy is surrendered for cash value
Policy can be converted to term coverage
Coverage ends and policy cannot be reinstated
Coverage ends and policy cannot be reinstated
Surrendered =no reinstate
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
Individual ins does not require medical exams while group ins does require medical exams
Who must have insurable interest in the insured
Policyowner
Beneficiary
Policyowner
Another term for accumulation period of annuity
Pay in period
Annuity period
Pay in period
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
Same face amount as in whole life policy
All true re installments for fixed amount except
Payments will stop when annuitant dies
Option pays specific amount until funds are exhausted
Payments will stop when annuitant dies
In forming an ins account when does acceptance usually occur
When insured submits application
When insureds underwriter approves coverage
When insureds underwriter approves coverage
Who can make changes to an ins policy
Producer
Ins executive officer
Ins exec officer
Right to change premium amounts
Continuation provision
Insurers rights
Continuation provision
Regulations regarding replacement apply to
Renewable term
Replacement of existing policy by same insurer
Renewable term
Responsible for reporting termination of debt to insurer
Creditor
Debtor
Creditor
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
Creditor requiring that a debtor buys ins from a certain insurer
Hmo policy may be canceled or renewed if
Does not reside in the hmo service area
Removed coverage for dependents
Does not reside in the hmo service area
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
Have passed a licensing exam within the 12 months before applying
Unfair trade practice of defamation
Making derogatory oral statements about another insurers financial condition
Refusing to deal with others
Making derogatory oral statements about another insurers financial condition
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
Creditor requiring that debtor buys insurance from certain insurer
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
Replacement rule
All insurers that provide life or accident and health ins coverage in texas must be members of what association
The life and health ins guarantee association
Circulating deceptive sales material to public is what type of unfair trade practice
False advertising
Misrepresentation
False advertising
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
25
Mp25 years old
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
Reduction of premium
Nfrop
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
60
Cd 60 years old
Classification of small employer means
At least two and not more than 50
Which of following is example of agents fiduciary responsibility
Forwarding premiums to the insurer
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
The insured is in an accident and incurs a large claim
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
Payments for 15 years
For group medical and dental ins what percentage of premium paid by employer is deductible as biz expense
100
Cannot refer to any document that is not contained in the contract
Entire contract clause
Insured decides to surrender 100000 whole life. Premiums add up to 15000. At surrender cash was 18000
3000
Class designation means
Naming beneficiaries as a group
Naming beneficiaries
Naming beneficiaries as a group
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
30
