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Life And Health Exam > Exam Wrong Answers 4 > Flashcards

Exam Wrong Answers 4 Flashcards

1
Q

How often must the Commissioner examine rating organizations?

A

Every 5 years

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2
Q

All of the following are Nonforfeiture options except

A

Interest only

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3
Q

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?

A

10 days

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4
Q

Which of the following best describes what the annuity period is?

A

The period of time during which accumulated money is converted into income payments

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5
Q

Issue age policy premiums increase in response to which of the following factors?

A

Increased benefits

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6
Q

Which of the following is not true of basic medical expense plans?

A

Coverage for catastrophic medical expenses

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7
Q

Occasional visits by which of the following medical professionals will not be covered under LTC’s home health care?

A

Attending physician

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8
Q

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?

A

2 years

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9
Q

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?

A

25%

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10
Q

In order to become licensed to become a viatical settlement provider, an application must be made with

A

The Insurance Department

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11
Q

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

A

Consideration

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12
Q

All other factors being equal, the least expensive first year premium payment is found in

A

Annually Renewable Term

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13
Q

A policy available to business owners that provides payment for normal business expenses in the event that the owner is disabled is called

A

Business Overhead Expense

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14
Q

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?

A

Joint Life Policy

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15
Q

When the policy premium wasn’t submitted with the application, what should the agent obtain from the insured upon policy delivery?

A

A statement of good health

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16
Q

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

A

Parts A and B of Medicare

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17
Q

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?

A

Immediate annuity

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18
Q

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?

A

Suspension of license

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19
Q

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

A third degree misdemeanor and a $1,000 fine

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20
Q

Which of the following is true regarding a term health policy?

A

It is nonrenewable

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21
Q

How long is the right to examine period for new individual annuities issued in this state?

A

10 days

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22
Q

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the…

A

Spendthrift clause

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23
Q

Which policy component decreases in decreasing term insurance?

A

Face amount

24
Q

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?

A

The capital amount in a lump sum

25
Q

The automatic premium loan provision is activated at the end of the

A

Grace period

26
Q

Which of the following statements is not correct regarding Medicare?

A

Medicare Advsntsge must be provided through HMOs

27
Q

The paid up addition option uses the dividend…

A

To purchase a smaller amount of the same type of insurance as the original policy

28
Q

Which of the following is not true regarding an annuity certain?

A

Benefits stop at the annuitant’s death

29
Q

Which is true about the cash surrender nonforfeiture option?

A

Funds exceeding the premium paid are taxable as ordinary income

30
Q

All of the following statements about Medicare supplement insurance policies are correct except

A

They cover the cost of extended nursing home care

31
Q

What document describes the insured’s medical history, including diagnoses and treatments?

A

Attending Physician’s Statement

32
Q

The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

A

The death benefit can be increased providing evidence of insurability

33
Q

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?

A

Guaranteed

34
Q

In comparison to consumer reports, which of he following describes a unique characteristic of investigative consumer reports?

A

The customer’s associates, friends and neighbors provide the report’s data

35
Q

What must happen when an individual policy or annuity has been personally delivered to the policy owner?

A

The policy owner must sign a delivery receipt

36
Q

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?

A

If a consumer does not sign and return the notice of disclosure within 30 days

37
Q

For what reason may a life insurance producer backdate a life insurance policy?

A

To avoid an increase in premium rate for the insured

38
Q

Which of the following is not a feature of a guaranteed renewable provision?

A

The insurer can increase the policy premium on an individual basis.

39
Q

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?

A

Those who have been insured under the plan for at least 5 years

40
Q

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?

A

Interest only option

41
Q

What is the number of credits required for fully insured status for Social Security disability benefits?

A

40

42
Q

According to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means…

A

The consumer directs the piece see not to disclose the consumer’s non public personal financial information to a third party

43
Q

All of the following statements about Medicare Part B are correct except

A

It is a compulsory program

44
Q

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…

A

Coercion

45
Q

In insurance, an offer is usually made when

A

An applicant submits an application to the insurer

46
Q

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

A

Have attained fully insured status

47
Q

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

A

3 days

48
Q

What is the advantage of reinstating a policy instead of applying for a new one?

A

The original age is used for premium determination

49
Q

Which of the following riders would not cause the Death Benefit to increase?

A

Payor benefit rider

50
Q

Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right to voting?

A

Stock

51
Q

All of the following are considered to be basidia benefits of an HMO plan except…

A

Prescription drugs

52
Q

All of the following are requirements for life insurance illustrations except…

A

They must be part of the contract

53
Q

Which nonforfeiture option has the highest amount of insurance protection?

A

Extended Term

54
Q

Under HIPPS, which of the following is incorrect regarding eligibility requirements for conversion to an individual policy?

A

An individual who was previously covered by group health insurance for 6 months is eligible

55
Q

What is the civil penalty for first violation of the Pennsylvania Insurance Fraud Prevention Act?

A

$5,000

56
Q

If an insurer appoints a producer, which authority must be notified?

A

Department of Insurance

Life And Health Exam (40 decks)

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