Exam Wrong Answers 4 Flashcards
How often must the Commissioner examine rating organizations?
Every 5 years
All of the following are Nonforfeiture options except
Interest only
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
Which of the following is not true of basic medical expense plans?
Coverage for catastrophic medical expenses
Occasional visits by which of the following medical professionals will not be covered under LTC’s home health care?
Attending physician
An insured was involved in an accident and could not perform her current job for 3 years. If the insured could readonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under “own occupation” disability plan?
2 years
An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
25%
In order to become licensed to become a viatical settlement provider, an application must be made with
The Insurance Department
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
All other factors being equal, the least expensive first year premium payment is found in
Annually Renewable Term
A policy available to business owners that provides payment for normal business expenses in the event that the owner is disabled is called
Business Overhead Expense
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint Life Policy
When the policy premium wasn’t submitted with the application, what should the agent obtain from the insured upon policy delivery?
A statement of good health
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Parts A and B of Medicare
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Immediate annuity
An agent misrepresents the details of an insured’s new insurance contract that will be replacing the current contract. Which of the following will most likely happen?
Suspension of license
An individual was just caught acting as an exclusive general agent, even though he is not properly licensed. Assuming that this occurred in a single day, what is the maximum penalty he faces?
A third degree misdemeanor and a $1,000 fine
Which of the following is true regarding a term health policy?
It is nonrenewable
How long is the right to examine period for new individual annuities issued in this state?
10 days
The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the…
Spendthrift clause
Which policy component decreases in decreasing term insurance?
Face amount
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
The automatic premium loan provision is activated at the end of the
Grace period
Which of the following statements is not correct regarding Medicare?
Medicare Advsntsge must be provided through HMOs
The paid up addition option uses the dividend…
To purchase a smaller amount of the same type of insurance as the original policy
Which of the following is not true regarding an annuity certain?
Benefits stop at the annuitant’s death
Which is true about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income
All of the following statements about Medicare supplement insurance policies are correct except
They cover the cost of extended nursing home care
What document describes the insured’s medical history, including diagnoses and treatments?
Attending Physician’s Statement
The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased providing evidence of insurability
A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?
Guaranteed
In comparison to consumer reports, which of he following describes a unique characteristic of investigative consumer reports?
The customer’s associates, friends and neighbors provide the report’s data
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
Under which of the following circumstances can financial institutions share insurance coverage information with third parties for the purpose of soliciting the purchase of insurance?
If a consumer does not sign and return the notice of disclosure within 30 days
For what reason may a life insurance producer backdate a life insurance policy?
To avoid an increase in premium rate for the insured
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 employees insured under a group life plan would be allowed to convert individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
The policy owner wants to make sure that upon his death, the life policy will pay a portion of proceeds annually to his spouse, but that the principal will be paid to their children’s when they reach a certain age. Which settlement option should the policy owner choose?
Interest only option
What is the number of credits required for fully insured status for Social Security disability benefits?
40
According to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means…
The consumer directs the piece see not to disclose the consumer’s non public personal financial information to a third party
All of the following statements about Medicare Part B are correct except
It is a compulsory program
A banker is easy to close a customer’s loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of…
Coercion
In insurance, an offer is usually made when
An applicant submits an application to the insurer
Which of the following is an eligibility requirement for all Social Security Disability Income benefits?
Have attained fully insured status
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
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
Which of the following riders would not cause the Death Benefit to increase?
Payor benefit rider
Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right to voting?
Stock
All of the following are considered to be basidia benefits of an HMO plan except…
Prescription drugs
All of the following are requirements for life insurance illustrations except…
They must be part of the contract
Which nonforfeiture option has the highest amount of insurance protection?
Extended Term
Under HIPPS, which of the following is incorrect regarding eligibility requirements for conversion to an individual policy?
An individual who was previously covered by group health insurance for 6 months is eligible
What is the civil penalty for first violation of the Pennsylvania Insurance Fraud Prevention Act?
$5,000
If an insurer appoints a producer, which authority must be notified?
Department of Insurance
