Last Exam Flashcards
How much notice must department provide to agent prior to agent’s license expiring
10
30
30
When are agents required to provide outline of coverage to applicant for individual long term care policy
At time of policy solicitation
At time of policy delivery
At time of policy solicitation
When enrolling an applicant for hmo coverage all of following evidence of coverage must be provided to applicant except
Applicant’s health status
Cancellation provisions
Applicant’s health status
Which of following does not have to be included on first page of Medicare supplement policy
Premium rates
Company’s rights to change premium
Premium rates
It is the agents responsibility to notify the department on a monthly basis about all of the following except
Change of mailing address
Change in agent’s marital status
Marital status
Who is responsible for covering expenses associated with examination of domestic insurers
Insurance guaranty association
Insurer being examined
Insurer being examined
In texas life insurance policies that include illustrations must include which of following
Illustration is not part of the insurance contract
Values in the illustration are guaranteed
Illustration is not part of the insurance contract
During a policy solicitation an insurer exaggerates the financial condition of one of its competitors and makes it sound worse than it is
Defamation
Misrepresentation
Defamation
In this state in order for an employer to obtain group health coverage for small employers what percentage of employees are required to be covered by the plan
75
50
75
Which of following is not a duty of commissioner
Develop insurance rates
Regulate the internal affairs of the department
Develop ins rates
What provision helps to make sure that the insured is protected in the event of a lapse in the policy
Continuity
Grace period
Grace period
Under an hmo child immunizations costs cannot be charged for children under what minimum age
3
6
6
All following are true of credit life except
Insured names beneficiary
Premium payments is included in loan payments
Insured names beneficiary
Sharing commissions is legal if
The other party is licensed fro same lines of ins as the agent sharing the commission
Other party has any valid insurance license
Other party is licensed for same lines of ins as agent sharing commission
Which is true regarding coverage for chemical dependency treatment in group health ins policies issued in this state
Coverage is optional and may be offered at the discretion of the insurer
Benefits provided must be the same as for any other physical illness
Benefits provided must be the same as for any other physical illness
Family term rider incorporates
Whole life and other insured term
Spouse term and children’s term
Spouse term and children’s term
Which is not a medicaid qualifier
Insurability
Residency
Insurability
According to common disaster clause if insured and primary beneficiary are killed in same accident and it cannot be determined who died first which following will be assumed
Primary beneficiary died before insured
Deaths occurred same time
Primary beneficiary died before the insured
A new homebuyer wants to purchase a life ins policy that would protect his family against losing the home should he die before th mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Deceasing term
Level term
Decreasing term
If an insured is not entirely satisfied with a policy issued the insured may return it to the insurance company and rec a refund of entire premium paid at which of following times
Within 10 days of when policy was delivered
Within 10 days of when the policy was issued
Within 10 days of when the policy was delivered
The entire contract includes all of the following except
A buyer’s guide
A copy of the application
A buyer’s guide
Which of the following would not be eligible for coverage under key person
Owner of a shop
Pharmacist in a drug store
Owner of a shop
Owner is not a key person but the principal
Medicare suppplement policy must havea free look period of at least
10 days
30 days
30 days
What is purpose of disability buy sell agreement
Allow business buyout in case of owner’s disability
Help business meet overhead expenses in case of owner’s disability
Allow business buyout in case of owner’s disability
Which of following best describes pure life annuity
Provides highest monthly benefits
Continues payments to beneficiary when annuitant dies
Provides highest monthly benefits
Regarding health ins all of following are tax deductible except
Employee paid group disability income
Employer paid group acacidental death and dismemberment
Employee paid group disability income
Which of following is guaranteed under variable whole life ins policy
Cash value
Minimum death benefit
Minimum death benefit
When life ins proceeds are used to pay inheritance taxes and federal estate taxes it is known as
Life settlement
Estate conservation
Estate conservation
An applicant may challenge info discovered aaa result of an investigative consumer report under which of the following acts
Fair credit reporting act
Consumer credit protection act
Fair cr reporting act
Couple wants to include entire family in their whole life policy under one rider. Which of following riders will help them achieve that goal
Family term
Other insured term
Family term
Under mandatory uniform provision notice of claim written notice of claim must be submitted to insurer within wha time parameters
Within 20 days
Within 60 days
Within 20 days
Where are premiu8ms from fixed annuities invest4ed
General account
Separate account
General account
Applicant misstates his age on application for health ins policy. He states tha the is 39 but his actual age is 49. When he files a claim what wil most likely happen
Benefits paid will be those that would have been purchased at the correct age
If Mistake was found after incontestability period, the benefit will be paid in full
Benefits paid will be those that would have been purchased at the correct age
All of following are consideration in an ins policy except
Cash value in policy
Statements on application
Cash value in policy
An elimination waiting period may not have to be satisfied for a disability in which of the following
Insured suffers a relapse of prior disability within six months from initial covered disability
Insured contracts an incurable disease
Insured suffers a relapse of prior disability within six months from initial covered disability
Which of following would not trigger the payment of accelerated death benefits
Being permanently disabled
Being permanently institutionalized
Being permanently disabled
The purpose of the fair credit reporting act is to
Protect consumers against the circulation of inaccurate or obsolete personal or financial info
Ensure the consumers rec a copy of the investigative consumer reports
Protect consumers against the circulation of inaccurate or obsolete personal or financial info
The benefits for group disability plans are based on
Flat amount
Percentage of worker’s income
Percentage of worker’s income
On adjustable life policy can assume the form of
Only permanent insurance
Either term ins or permanent ins
Either term ins or permanent ins
Considering the principals of liquidity how would the policyowner use today’s cash values in life ins policy
Use it for emergency expenses
Find a retirement
Use it for emergency expenses
An equity indexed annuity will row passed on
Performance of a recognized index
Performance ins separate account
Performance of a recognized index
All must sign an application for health ins except the
Proposed insured
Insurer
Insurer
An annuity would normally be purchased by an individual who wants to
Create an estate
Provide income for retirement
Create an estate
An ira contribution can be made from which of the following
Cash
Stocks and bonds
Cash
Which fo the following is the primary source of info that an insurer uses to evaluate an insured’s risk for life ins
Risk analysis
Ins application
Ins application
An insured and his spouse recently had a child. Which of following riders would allow the couple to insure the child for a limited period of time at a specified amount
Children’s term rider
Payor rider
Children’s term rider
Which of following is a correct statement about annuities
Fixed annuities have the annuitant assume the risks on investment
Fixed annuities do not provide protection against inflation
Fixed annuities do not provide protection against inflation
When may hiv related test results be provided to the mib
Only if individual is not identified
When given i authorization by the patient
Only if the individual is not identified
Which of the following is not true regarding a deferred annuity
Income payments will begin 1 year from date of purchase
It is used to accumulate funds for retirement
Income payments will begin 1 year from date of purchase
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured’s death was caused by an accident as defined in the policy
Accidental death rider
Double indemnity rider
Accidental death rider
An applicant gives her agent a completed application and the initial premium. What can agent issue her that acknowledges the initial premium payment
Premium receipt
Conditional receipt
Conditional receipt
All of the following are characteristics of group health ins plans except
Parties that hold a group health ins contract are the employees and the employer
Cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan
Parties that hold a group health ins contract are the employees and the employer
Which of following best defines probationary period in group health policies
Specified period of time that person joining a group has to wait before becoming eligible for coverage
Number of days that must expire after onset of an illness before benefits will be earned
Specified period of time that person joining a group has to wait before becoming eligible for coverage
An insured had a heart attack while jogging but is expected to return to work in approximately six weeks. The insured’s disability income policy will
Replace a percentage of his lost income
Not pay
Replace a percentage of his lost income
All of the following are true about key person ins except
Death benefit is taxable to the business
Employee must give written consent by signing the application
Death beenfit is taxable to the business
Which would not be considered a limited coverage policy
Special risk policy
Major medical expense ins
Major medical expense ins
Which time period is general enrollment period for Medicare part b
January 1 through march 31
March 1 through may 31
January 1 through march 31
What is it called when a doctor accepts the Medicare approved amount
Acceptance
Assignment
Assignment
In whole life ins when is policy cash value scheduled to equal face amount
At insured’s age 100
When insured paid up all policy loans
At insured age 100
In this state the owner gets a free look of specified number of days from
The date of application
Delivery of policy
Delivery of policy
In order to reinstate a life ins policy the insured must do all of the following except
Pay next year’s premium in advance
Repay any outstanding loans and interest
Pay next year’s premium in advance
