Guaranteed Exam

Question 1

Which of the following best defines the Probationary period in group health policies?

Answer 1

A specified period of time that a person joining a group has to wait before becoming eligible for coverage

Question 2

Which of the following types of care could be provided at a community center?

Answer 2

Adult day care

Question 3

In a variable life insurance policy, all of the following assets are held in the insurance company’s general account except

Answer 3

Cash surrender values

Question 4

What is the maximum civil penalty per violation of the regulations of the Insurance Code that define acts that are subject to fines, or license suspending or revocation?

Answer 4

$5,000

Question 5

What is the only difference between blanket insurance and group health insurance?

Answer 5

The insured members are not named

Question 6

A life insurance policy qualified a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid up insurance in how many years?

Answer 6

7 years

Question 7

An employee is insured by a group major medical plan that is provided though her employer. The employer contributes 75% of the premium and the employee contributes the remaining 25%. If the insured received a benefit from this policy in the amount of $1,000, how much of the benefit would be taxed as income?

Answer 7

$0

Question 8

When may HIV related test results be provided to MIB?

Answer 8

Only if the individual is not identified

Question 9

Under HIPAA portability, which of the following are not protected under required benefits?

Answer 9

Groups of one or more

Question 10

All of the following are true of group life insurance except

Answer 10

The insureds each own their own contract

Question 11

Which of the following Medicare parts provide prescription drugs benefit?

Answer 11

Part D

Question 12

Which of the following is not a personal use of life insurance?

Answer 12

An individual buys insurance to fund a buy sell agreement

Question 13

What type of interest rate is guaranteed in universal life policies?

Answer 13

Contract interest rate

Question 14

If a person qualified for Social Security disability benefits after the 5 month elimination period, when will benefits begin?

Answer 14

Benefits begin at the beginning of the 6th month and are not retroactive to the beginning of the disability

Question 15

A limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke or renal failure is known as

Answer 15

Critical illness insurance

Question 16

Which of the following is a permissible Eason for an insurance company to contest payment of a claim based on statements in the application?

Answer 16

The application contains material misstatements

Question 17

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

Answer 17

The primary beneficiary died before the insured

Question 18

All of the following are excluded from coverage in an individual health policy except

Answer 18

Mental illness

Question 19

An individual covered under a group Dental Expense plan needs to have bridgework done. Bridgework is covered as

Answer 19

Prosthodontics

Question 20

The contingent benefit on lapse will be triggered when an insurer increases an insured’s premium rates to a certain level, and the policy subsequently lapses within

Answer 20

120 days

Question 21

An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA

Answer 21

Within 60 days

Question 22

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

Answer 22

Intermediate care

Question 23

Under the mandatory uniform provision “Notice of Claim” written notice of a claim must be submitted to the insurer within what time parameters?

Answer 23

Within 20 days

Question 24

An underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?

Answer 24

Attending Physician’s Statement

Question 25

Who would be the insured in business disability insurance?

Answer 25

Key employees

Question 26

When an insured reinstated his major medical policy, he was involved in an accident that required hospitalization. When would this accident be covered upon reinstatement of the policy?

Answer 26

Immediately

Question 27

An agent received some inaccurate information and as a result he publicly misstated the financial condition of another entity 12 times over a period of 3 months. If this fact is revealed, he agent may face a fine up to

Answer 27

$10,000

Question 28

Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?

Answer 28

10 working days

Question 29

If an insured decides to reduce he coinsurance amount on her major medical insurance, what can the insured expect?

Answer 29

A higher monthly premium

Question 30

An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when

Answer 30

The insurance company accepts the risk

Question 31

Under the long term care marketing regulations, which of the following questions would a producer not have to ask the applicant in order to determine if the purchase is suitable?

Answer 31

How much are you able to pay in premiums?

Question 32

Which dividend option will increase the death benefits?

Answer 32

Paid up additions

Question 33

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Answer 33

Twisting

Question 34

An insured has an individual disability income policy with a 30 day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?

Answer 34

He won’t collect anything

Question 35

All of the following are true grading the federal Fair Credit Reporting Act except

Answer 35

Reports may be sent to anyone who requests one

Question 36

If a life insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of the procedure?

Answer 36

Prior to performance of the test

Question 37

J is receiving fixed amount benefit payments from his late wife’s insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Answer 37

Fixed amount

Question 38

If an insurance company issued a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?

Answer 38

Never, the insurer has waived its right to those answers by issuing the policy

Question 39

Which statement below is incorrect regarding the type of term insurance that fits best with the applicant’s needs?

Answer 39

Applicants who may require a larger death benefit in the future should buy convertible term insurance

Question 40

All of the following must sign an application for health insurance except the

Answer 40

Insurer

Question 41

To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan?

Answer 41

75%

Question 42

Which of the following is not a Medicaid qualifier?

Answer 42

Insurability

Question 43

What guarantees that he information explained in the insurance contract is true?

Answer 43

A warranty

Question 44

All of the following are true of the Survivorship Life policy except

Answer 44

The premium is based on the age of each insured

Question 45

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?

Answer 45

$2,500