Guaranteed Exam Flashcards
Which of the following best defines the Probationary period in group health policies?
A specified period of time that a person joining a group has to wait before becoming eligible for coverage
Which of the following types of care could be provided at a community center?
Adult day care
In a variable life insurance policy, all of the following assets are held in the insurance company’s general account except
Cash surrender values
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?
$5,000
What is the only difference between blanket insurance and group health insurance?
The insured members are not named
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?
7 years
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?
$0
When may HIV related test results be provided to MIB?
Only if the individual is not identified
Under HIPAA portability, which of the following are not protected under required benefits?
Groups of one or more
All of the following are true of group life insurance except
The insureds each own their own contract
Which of the following Medicare parts provide prescription drugs benefit?
Part D
Which of the following is not a personal use of life insurance?
An individual buys insurance to fund a buy sell agreement
What type of interest rate is guaranteed in universal life policies?
Contract interest rate
If a person qualified for Social Security disability benefits after the 5 month elimination period, when will benefits begin?
Benefits begin at the beginning of the 6th month and are not retroactive to the beginning of the disability
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
Critical illness insurance
Which of the following is a permissible Eason for an insurance company to contest payment of a claim based on statements in the application?
The application contains material misstatements
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?
The primary beneficiary died before the insured
All of the following are excluded from coverage in an individual health policy except
Mental illness
An individual covered under a group Dental Expense plan needs to have bridgework done. Bridgework is covered as
Prosthodontics
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
120 days
An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA
Within 60 days
Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?
Intermediate care
Under the mandatory uniform provision “Notice of Claim” written notice of a claim must be submitted to the insurer within what time parameters?
Within 20 days
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?
Attending Physician’s Statement
Who would be the insured in business disability insurance?
Key employees
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?
Immediately
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
$10,000
Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?
10 working days
If an insured decides to reduce he coinsurance amount on her major medical insurance, what can the insured expect?
A higher monthly premium
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
The insurance company accepts the risk
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?
How much are you able to pay in premiums?
Which dividend option will increase the death benefits?
Paid up additions
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
Twisting
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?
He won’t collect anything
All of the following are true grading the federal Fair Credit Reporting Act except
Reports may be sent to anyone who requests one
If a life insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of the procedure?
Prior to performance of the test
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?
Fixed amount
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?
Never, the insurer has waived its right to those answers by issuing the policy
Which statement below is incorrect regarding the type of term insurance that fits best with the applicant’s needs?
Applicants who may require a larger death benefit in the future should buy convertible term insurance
All of the following must sign an application for health insurance except the
Insurer
To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan?
75%
Which of the following is not a Medicaid qualifier?
Insurability
What guarantees that he information explained in the insurance contract is true?
A warranty
All of the following are true of the Survivorship Life policy except
The premium is based on the age of each insured
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?
$2,500
