Exam Wrong Answers 3 Flashcards
The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is True?
The beneficiary will receive the greater of the money paid into the annuity or the cash value
If an immediate annuity is purchased with the face amount at death or with cash value surrender, this would be considered a
Settlement option
All of the following are true about group disability income insurance except
Coverage applies both on and off the job
Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage?
Health Maintenance Organization plan
Based on Human Life Value Approach, which of the following is not used to calculate an individual’s life value?
Predicted needs of the family after the insured’s death
Which of the following Life insurance policies would be considered interest sensitive?
Universal life
Which of the following is true about nonforfeiture values?
They are required by state law to be included in the policy
All of the following statements about Medicare supplement insurance policies are correct except
They cover the cost of extended nursing home care
What type of insurance would be used for a Return of Premium rider?
Increasing term
Which of the following explains the policy owner’s right to change beneficiaries, choose options and receive proceeds of a policy?
Owners rights
Which of the following is not a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
Which of the following named beneficiaries would not be able to receive the death benefit directly from the the insurer in the event of the insured’s death?
A minor son of the insured
Which of the following is not an enrollment period for Medicare Part A applicants?
Automatic enrollment
In disability income insurance if an insured is considered disabled if they cannot perform any job they are suited for by prior education, training or experience, they fall under which definition of total disability?
Any occupation
According to the privacy of consumer financial information regulation, if a consumer decides to opt out this means
The consumer directs the licensee not to disclose the consumer’s non public personal financial information to a third party
How soon after the due date should the insurer pay the agent appointment fees?
Within 30 days
Which of the following is true regarding a waiver of a surrender charge on an annuity contract?
The charge may be waived if the annuitant is confined to a long term facility for at least 30 days
What is the civil penalty for the first violation if the Pennsylvania Insurance Fraud Prevention Act?
$5,000
Which component increases in the increasing term insurance?
Death benefit
The two types of assignments are
Absolute and collateral
Elijah and Mary are to receive the proceeds of a life insurance policy jointly until the first one dies. If either one should die within a specified time, the other one will receive benefits until the end of the specified time. This settlement option is known as…
Joint life with Term Certain
The requirement that an agent not co-mingle insurance monies with their own funds is known as…
Fiduciary responsibility
Under most dental plans, what limitations are posed for denture replacement?
Once every 5 years
If forming an insurance contract, when dose acceptance usually occur?
When an insurer’s underwriter approves coverage
How often must the commissioner examine rating organizations?
Every 5 years
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive…
Nothing, Payment’s will cease
A policy will pay the death benefit if the insured dies during the 20 year premium paying period and nothing if death occurs after the 20 year period. What type of policy is this?
Level term
If a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a…
Guaranteed insurability rider
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid up
Which of the following statements is not true concerning Medicaid?
It consists of 3 parts: Part A hospitalization, Part B: doctors services, Part C disability income
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
Which of the following statements about the reinstatement provision is true?
It requires the policy owner to pay all overdue premiums with interest before the policy is reinstated
Which of the following statements is true concerning the accidental death rider?
It will pay double or Triple the face amount
How long is the right to examine period for new individual annuities issued in this state?
10 days
Which of the following is true regarding a term health policy?
It is nonrenewable
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
Which of the following is a statement that is guaranteed to be true and if untrue, may breach an insurance contract?
Warranty
Which of the following is not a goal of risk retention?
To minimize the insured’s level of liability in the event of loss
At the time of initial licensing, what fee must a visit all settlement provider pay?
$300
Which of the following reports will provide the underwriter with information about an insurance applicant’s credit?
Consumer report
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
The capital amount in a lump sum
A client has a new individual disability income policy with a 30 day probationary period and a 30 day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
15 days
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to…
Purchase a single premium policy for a reduced face amount
Which renewability provision allows an insurer to terminate a policy for any reason and to increase the premiums for any class of insureds?
Optionally renewable
One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of…
50 or more
Which of the following types of agent authority is also called “perceived authority”?
Apparent
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following except
Loss of the owner’s income
Which of the following authorities monitors the financial strength of insurers?
Department of Insurance
Within how many days must a producer respond to an inquiry from the Commisioner?
30 days
All of the following could be considered rebates if offered to an insured in the sale of insurance except
Dividends from a mutual insurer
All of the following are requirements for producer license renewal except…
Renewal examination
What must happen when an individual policy or annuity has been personally delivered to the policy owner?
The policy owner must sign a delivery receipt
Which types of insurance companies marketing long term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?
Every company is required to establish marketing procedures
What is the civil penalty for violating a cease and desist order of the Commisioner?
$10,000
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Jumping juvenile policy
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
All of the following are dividend options except…
Fixed period installments
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
A producer had become disabled. In order to keep his business going, what may his designee do?
Obtain a temporary license
Annuities can be used to fund which of the following?
Retirement plans
In long term care policies, as the benefit period lengthens, the premium…
Increases
Which of the following is considered a qualifying event under COBRA?
Divorce
Who is involved in completing the agent’s report?
Only the agent
Children’s riders attached to whole life policies are usually issued as what type of insurance?
Term
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
COBRA applies to employers with at least…
20 employees
Violation of unfair discrimination law may result in all of the following penalties except…
Fines up to $1,000 for each act
