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
