Practice Test Questions Flashcards
Which of the following is an annuity that is linked to a market-related index?
Market-related annuity
Equity-index annuity
Deferred risk annuity
Fixed-amount annuity
Equity-index annuity
All of these are standard exclusions found in a life insurance policy?
Hazardous occupations
Aviation
Disability
War
War
Bryce purchased a disability income policy with a rider that guarantees additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?
Guaranteed insurability rider
Additional coverage rider
Paid-up option rider
Extended insurability rider
Guaranteed insurability rider
An eligible employee can be excluded from group health coverage for up to __ months if they are considered a “late enrollee”
6
12
18
24
18
Which of these is considered to be a document that describes the critical segments of a life insurance policy?
Buyer’s guide
Policy summary
Consumer report
Buyer’s summary
Policy summary
Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage?
Standard deductible
Combined deductible
Integrated deductible
Blended deductible
Integrated deductible
If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1000 monthly disability benefit?
$100
$250
$500
$1000
$500
The typical free look period for life insurance policies sold in South Carolina is __ days?
5
10
15
20
10
All of the following riders can increase the death benefit amount EXCEPT
Cost of Living
Waiver of Premium
Accidental Death Rider
Guaranteed Insurability
Waiver of Premium
According to life insurance contract law, insurable interest exists
When any business relationship exists
At the time of application
At the time of death
Only when determined by a judge
At the time of application
All producers shall remain full and correct transaction records of the business done by them for a period of at least
1 year
3 years
5 years
7 years
5 years
A fee for service of health insurance will normally cover
Vitamins and natural remedies
Cosmetic producers
Gym membership
A disease
A disease
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called
Automatic premium loan
Nonforfeiture option
Collateral assignment
Irrevocable assignment
Collateral assignment
An insurance policy may not be canceled by the insurer (except for fraud) after __ year(s) from policy issue
1
2
3
4
2
Coordination of benefits regulation applies to all of the following plans except
Group vision plan
Preferred Provider Organization plan
Self-funded group health plan
Group health plan
Preferred Provider Organization plan
Distributors from a Health Savings Account (HSA) for qualified medical expenses are
Fully-taxable
tax-free
partially taxable
tax credits
tax free
A hospital or medical expense policy will typically cover dental treatment expenses under which circumstance?
After the annual limit of a dental policy’s coverage is reached
Dental treatment is needed to repair an injury
Cosmetic dental treatment is performed
If treatment is performed at an in-network provider
Dental treatment
Victoria’s producer license was initially issued on July 18, 2021. Her birthday is June 9, 1982. Her license will renew
July 31, 2022
June 30, 2022
June 30, 2023
July 31, 2023
June 30, 2023 (Renewable two years on or before the last day of the producers birth month)
Which type of rider will waive the premium on a child’s life insurance policy if the parent paying the premium dies?
Waiver of premium
Juvenile waiver
Guaranteed insurability
Payor benefit
Payor benefit
Medicare Part B covers
long-term care
hospital room and board
doctors charges
prescription drugs
doctors charges
David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision?
Unpaid provision
Consideration clause
Waiver of premium provision
Reduced benefit clause
Unpaid provision
Which of these factors is NOT taken into account when determining an applicant’s life insurance needs?
Social security
Automobile
Savings
Pension
Automobile
Which of these ensures that proceeds of a life insurance policy will be free from attachment or seizure by the beneficiary’s creditors
Spendthrift clause
protection clause
viatical clause
settlement clause
Spendthrift clause
A medicare supplement policy must NOT contain benefits which
Charge additional premiums
Duplicate medicare benefits
cover more than medicare coverage
are covered by workers compensation
Duplicate medicare benefits
Tim’s individual life insurance policy has just recently lapsed. His policy may be reinstated at any time within __year(s)
1
2
3
4
3
Proof of loss on a health insurance claim must be submitted to an insurer within __ days after the insured’s date of loss
30
60
90
120
90
If an insured’s age on a life insurance policy has been misstated, what is the insurer’s liability if the insured dies
No death benefit is owed because of the misstatement of age
the full original death benefit listed on the policy
A prorated death benefit based on the amount of insurance the insured’s premiums would have been if purchased at the correct age
The original death benefit listed on the policy minus any outstanding loans and interest
A prorated death benefit based on the amount of insurance the insured’s premiums would have been if purchased at the correct age
Which of the following statements regarding Group Disability Income Insurance is TRUE?
It pays 100% or more of an insured’s income in the event of disability
It provides benefits for nonoccupational illnesses and injuries
It is generally more expensive than individual policies
It usually pays for occupation-related disabilities
It provides benefits for nonoccupational illnesses and injuries
A guaranteed issue insurance policy has no
Initial premium requirement
Incontestable period
Waiting period
Medical underwriting
Medical underwriting
Which of these is NOT subject to false advertising regulations?
Gifts
Brochures
Billboards
Letters
Gift
An insurer formed according to the legal requirements of another country is considered a(n)
reciprocal insurer
alien insurer
foreign insurer
international insurer
alien insurer
An insurance applicant with a below-average likelihood of loss is typically considered to be a
preferred risk
subpar risk
declined risk
standard risk
preferred risk
Which of the following would be considered an underwriting duty of an agent
requesting medical information from the MIB
completing all applications and collecting initial premiums
accepting or declining an application
assigning a risk classification
completing all applications and collecting initial premiums
Which of these is affected by the frequency of an insurance policy premium payments?
settlement options
cash value
death benefit
cost
cost
which of the following is typically not eligble for coverage in a group health policy?
full time policy
temporary employee
business owner
partner in a partnership
temporary employee
A medicare supplement policy issued in the State of South Carolina is required to provide each of the following EXCEPT
it must cover intermediate and outpatient care for substance abuse
it must be guaranteed renewable
it must include outpatient prescription drug coverage
it must have a free-look period of 30 days
it must include outpatient prescription drug coverage
Which of these gaps in medicare coverage is addressed with medicare supplement insurance
medicare in-hospital deductible
dental work
nutrional supplements
chiropractic care
medicare in-hospital deductible
when a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?
Principal
Contributions made by employee
contributions made by employer
gains
gains
which type of annuity stops all payments upon the death of the annuitant?
life annuity
period certain annuity
cash refund annuity
joint and survivor annuity
life annuity
what is the purpose of the Medical Information Bureau (MIB)?
to accept or decline insurance applicants
to set the premium rates for insurers
to help underwriters evaluate risk
to perform physical examinations on applicants
to help underwriters evaluate risk
when calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach?
The income earner’s future projected income
The family’s financial objectives if the income earner were to die or become disabled
The insurance company’s financial rating
The income earner’s credit score
The family’s financial objectives if the income earner were to die or become disabled
In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest?
individuals are assumed to have insurable interest in themselves
insurable interest is established by a court of law
insurable interest can be established sufficiently by sentimental attachment alone
isnurable interest must exist at the time of the application
insurable interest can be established sufficiently by sentimental attachment alone
what guarantees that the statements supplied by an insurance applicant are true?
assurance
promise
representation
warranty
warranty
Within __ days after policy delivery, an individual life insurance policy can be returned for a 100% premium refund
5
10
15
20
10
If an employer-sponsored group accident and health plan, a master contract is issued to the
TPA
employees
Administrative Service Organization
employer
employer
All of these are considered sources of information than can assist an underwriter in determining whether or not to accept a risk EXCEPT
agents report
MIB
inspection reports
National association of insurance underwriters
National association of insurance underwriters
Which of the following unfair trade practices involves a producer who makes public, malicious statments about an insurer’s financial condition?
boycotting
defamation
Unfair discrimination
Misrepresentation
defamation
All of the following are typically included in a life insurance policy illustration EXCEPT
Premium of the policy
names of the beneficiaries
interest charged for policy loans
cash surrender value in 20 years
names of the beneficiaries
what does the Group Life underwriting selection process help protect insurance companies from?
risk aversion
natural selection
adverse selection
risk management
adverse selection
In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at
Employee has no tax liability
40% of the benefit
60% of the benefit
100% of the benefit
60% of the benefit
which of the following is a valid reason for an insurer to refuse the issuane of insurance policy?
applicant’s health condition
applicant’s religion
applican’ts gender
applicant’s race
applicant’s health condition
Benefits for a Medicare Supplement policy
may duplicate medicare benefits
must not duplicate medicare benefits
may duplicate specific medicare benefits
are provided by medicare
must not duplicate Medicare benefits
The waiting period for a disability insurance policy
excludes payments for a short-term illness or injury
is the period of time that must elapse following the effective date of the policy before benefits are payable
helps the insurer determine if the claim is legitimate
allows the insurer to collect medical information on the policyowner
excludes payments for a short-term illness or injury
All long term care policies sold in South Carolina are REQUIRED to pay the same daily benefit amount for “at home” care as compared to
the daily amount paid for disability coverage
the daily amount paid for physical therapy
the daily amount paid for nursing home care
the daily amount paid for respite care
the daily amount paid for nursing home care
What amount will be paid under a polocy where the insured misstated their age
the amount stated in the policy, only if the insured pays an additional premium
no adjustments will be made
an amount the premium would have purchased at the correct age
no amount will be paid because the insured misstated their age
an amount the premium would have purchased at the correct age
Which of the following decisions would a Health savings account (HSA) owner NOT be able to make?
The amount contributed by the employer
the amount contributed by the owner
the underlying account investments used
the medical expenses paid for by the HSA
The amount contributed by the employer
A disability policyowner is insured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?
Recurrent period
probationary period
benefit period
elimination period
Benefit period
Twisting is BEST defined as
making a false written or oral statement for the purpose of replacing an existing policy to the detrement of the insured
offering something of value not stated in the insurance contract as an inducement to purchase an insurance policy
unfairly discriminating against a person in any way on an insurance-related matter
making any public statemetn or advertisement that contains false or malicious information about the insurance company
making a false written or oral statement for the purpose of replacing an existing policy to the detrement of the insured
All of the following are characteristics of a Group Life Insurance policy plan EXCEPT
group underwriting
master contract
individual underwriting
probationary period
individual underwriting
Within how many days must a traditional IRA be rolled over to another IRA in order to avoid tax consequences?
30
45
60
90
60
An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called
a manged plan
stop loss
coinsurance
a deductible
coinsurance
A policyowner can receive an immediate payment before the insured dies by using a(n)
viatical settlement contract
buy-sell agreement
adhesion agreement
spendthrift plan
viatical settlement contract
Which of the following BEST describes a conditional insurance contract?
Requires certain conditions or acts by the insured individual
Has the potential for the unequsl exchanged of consideration for both parties
Where one party “adheres” to the terms of the contract
Where only one party makes any kind of enforceable contract
Requires certain conditions or acts by the insured individual
The Fair Credit Reporting Act protects consumers
from insolvent insurers
by recommending insurers with good AM Best ratings
with guidelines regarding credit reporting and distribution
by providing consumer credit counseling
with guidelines regarding credit reporting and distribution
The cause of a loss is referred to as a(n)
hazard
adversity
peril
risk
peril
which of the following is NOT a required provision in an accident and health insurance policy?
legal actions
grace period
change of occupation
reinstatement
change of occupation
If a new enrollee to a group health plan has had previous creditable coverage for up to __ days prior to enrollment, the Pre-existing condition provision will apply
43
53
63
73
63
In a Long-term care policy, activities of daily living (ADL’s) can be each of the following EXCEPT
Talking
Dressing
Transferring
Feeding Oneself
Talking
Tom has a home health care benefit and is confined to his home. Which of these benefits is NOT typically covered
part time nursing care
full time nursing care
physical therapy
home health aides
full time nursing care
An insurer may legally defer payment of a cash surrender value for up to
6 months
9 months
12 months
15 months
6 months
Which policy feature makes a universal life policy different from a whole life policy?
a fixed cash value
a flexible premium schedule
a fixed death benefit
the ability to take out a policy loan
a flexible premium schedule
which of these statements about medicaid is correct?
pays for medicare charges exceeding the approved amount
intended for senior citizens
funded by federal, state, and local taxes
administrated by the federal government
funded by federal, state, and local taxes
A carrier for a small group health plan may refuse to renew the plan if the employer
exceeds a specified number of claims
fails to generate minimum revenues
falls below a minimum AM Best rating
fails to pay the premium
fails to pay the premium
A beneficiary change can occur
only upon th erequest of the revocable beneficiary
only on specified dates within the policy
normally at any time during the policy term
at no time
normally at any time during the policy term
Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is true?
Net benefit will be reduced if the loan is not repaid
No interest rate will be charged on loan balance
Term life policies are the only type of insurance that allows policy loans
A loan can be take nout for up to the face amount of the policy
Net benefit will be reduced if the loan is not repaid
The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage
1
3
5
7
1
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)
waiver of premium rider
payor rider
automatic premium loan rider
juvenile waiver rider
payor rider
After a disability policy has been in force for __ year(s) it is considered incontestable
1
2
3
4
2
Joe is a Medicare participant who receives his benefits through a Managed Health Care plan. Which Medicare plan does he have?
Part A
Part B
Part C
Part D
Part C
What are the levels of coverage as defined by the Affordable Care Act?
1st, 2nd, 3rd, and 4th
Bronze, silver, gold, and platinum
Substandard, standard, preferred, and premium
PPO, HMO, POS, and MEt
Bronze, silver, gold, and platinum
If a producer has broken a state insurance statute, the Director may issue a cease and desist order. This order demands that the producer
be incarcerated
stop engaging in the act
pay a fine
have his/her appointment terminated
stop engaging in the act
How many employees must an employer have for a terminated employee to be eligible for COBRA
20
30
40
50
20
When an insured changes to a more hazardous occupation, which disability provision allows an insurer to adjust policy benefits and rates?
Relation of earnings to insurance provision
Change of occupation provision
Conformity of state statutes provision
Modified occupation provision
Change of occupation provision
What is the elimination period of an individual disability policy?
Time period an insured must wait before coverage begins
Time period a disabled person must wait before benefits are paid
Time period after the policy issue date in which the provisions are still contestable
The point in time when benefits are no longer payable
Time period a disabled person must wait before benefits are paid
Who were Keogh plans designed to provide pension benefits for?
Corporate officers
Public school employees
The self-employed
Government employees
The self-employed
According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan?
March 23, 2010
March 23, 2011
March 23, 2012
March 23, 2013
March 23, 2010
An example of a presumptive disability would be a stroke deafness diabetes cancer
deafness
The type of policy which pays on the death of the last person is called
joint life
survivorship life
dual life
shared life
survivorship life
Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy’s face amount has become $600,000. Which type of life insurance policy is this?
Adjustable life
Credit life
Modified life
Universival life
Universal life
When the principal gives the agent authority in writing, it is referred to as
express authority
implied authority
apparenty authority
imposed authority
express authority
All of the following are considered an example of illegal inducement EXCEPT
giving a gift to a client worth $75
giving a gift of less than $25 to a client
Offering special terms of a stock purchase to a client
Offering employment to a client
giving a gift of less than $25 to a client
Ownership of a life insurance policy may be temporarily transferred with a(n)
collateral assignment
absolute assignment
transferable assignment
beneficiary assignment
collateral assignment
Under a life insurance policy what does the insuring clause state?
the agent’s obligation to provide the proper amount of coverage
the insurer’s obligation to return all premiums upon an approved death claim
the insurer’s obligation to pay a death benefit upon an approved death claim
the agent’s obligation to pay a death benefit upon an approved death claim
the insurer’s obligation to pay a death benefit upon an approved death claim
How do insurers predict the increase of individual risks?
law of large numbers
US Census
Average mortality incidents
Experience of morbidity
law of large numbers
Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner’s death?
Financial loss value
human life value
assessment value
replacement value
human life value
A master contract and certificate of coverage can be found in which type of policy?
long term
medicaid
group
medicare
group
Which one of these is not a characteristic of the accelerated death benefit option?
The face amount and policy premium are not affected by the payment
Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness
There may be a dollar limit on the maximum benefit
The benefit can be offered as a rider at a specific extra cost or may be at no cost
The benefit can be offered as a rider at a specific extra cost or may be at no cost
Frank is shopping for a disability income policy. Which of the following would have the highest premium
14 day waiting period / 5 year benefit period
14 day waiting period / 10 year benefit period
28 day waiting period / 5 year benefit period
28 day waiting period / 10 year benefit period
14 day waiting period / 10 year benefit period
If an insured dies during the grace period with no premiums paid
the policy would be payable, minus the premium amount
the policy would be payable after the beneficiary makes past due premium payment
all past premiums will be refunded with interest
the claim would be denied
the policy would be payable, minus the premium amount
Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will NOT pay for charges exceeding the approved amount
Medicaid
Long-term care
Medicare supplement Plan F
Comprehensive major medical
Medicare supplement Plan F
Medicare Part A covers
outpatient services
doctors fee
inpatient hospital stay
prescription drugs
inpatient hospital stay
Fixed annuities provide each of the following EXCEPT
guaranteed interest
retirment funds
hedge against inflation
tax advantage
hedge against inflation
The open enrollment period of Medicare Supplements begins at age
62
65
67
70
65
An annuitant dies before during the distribution period. What kind of annuity will return to a beneficary the difference between the anniity value and the income payments already?
variable annuity
refund annuity
rebate annuity
return annuity
refund annuity
When are group disability benefits considered to be tax-free to the insured?
when the recipient pays the premiums
when the employer pays the premiums
when both the employer and recipient pay the premiums
when benefits paid are equal to or lower than the recipients salary
when the recipient pays the premiums
A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT
fare-paying passenger
pilot of personal airpline
suicide
war
fare-paying passenger
An insurer’s claim settlement practices are regulated by the
Securities and Exchange Commission (SEC)
National Association of Claims Adjusters (NACA)
National Association of Insurance Commissioners (NAIC)
State insurance departments
state insurance departments
The premium for a Modified whole life policy is
higher than the typical whole life policy during the first few years and then lower than the typical for the remainder
lower than the typical whole life policy during the first few years and then higher than the typical for the remainder
normally graded over a period of 20 years
level for the first 5 years then decreases for the remainder of the policy
lower than the typical whole life policy during the first few years and then higher than the typical for the remainder
which entity is responsible for regulating continuing education requirements in South Carolina
Department of Insurance
NAIC
Board of Regents
Department of Education
Department of Insurance
Term insurance is apprpriate for someone who
seeks living benefits for themselves
seeks a policy that builds cash value
seeks temporary protection and lower premiums
seeks permanent protection and higher premiums
seeks temporary protection and lower premiums
In most dental plans, a decutible is not typically applied to
preventative and diagnostic services
restorative dentistry
orthodontics
oral surgery
preventative and diagnostic services
Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Provisions covers the sitation?
payment of claims
legal actions
unpaid premium
time of payment claims
unpaid premium
After a health insurance policy has been in force for __ year(s) the policy is incotestible (except for fraud)
1
2
3
4
2
An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period
incontestable period
probation period
reinstatement period
grace period
grace period
Which of the following is considered to be an alternative to a life settlement?
accelerated death benefit rider
waiver of premium rider
extended term option
decreasing term insurance
accelerated death benefit rider
the free look period in south carolina for individual health insurance policies is __ days
5
10
15
20
10
Which of the following is Medicare Part B also known as
hospital insurance
medical insurance
long term care insurance
medigap
medical insurance
a life insurance policyowner does not have the right to
change a beneficiary
select a beneficiary
take out a policy loan
revoke an absolute assignment
revoke an absolute assignment
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called
mutual insurer
reinsurer
reciprocal insurer
participating insurer
reinsurer
The difference between a Long term care partnership plan and a non partnership plan is which of the following
pre-existing conditions
levels of benefits
asset protection
elimination period
asset protection
Which of the following is not a common exclusion for a medical expense policy?
physical therapy
act of war
on the job injury
self inflicted injury
physical therapy
A spouse and child can be added to the primary insured’s coverage as what kind of rider
dependent term
guaranteed insurability
primary term
family term
family term
What is the primary factor that determines the benefits paid under a disability income policy?
education level
wages
type of occupation
age
wages
Prior to a disciplinary hearing, the director is required to give at least __ days notice
20
30
40
50
30
After __ year(s) from date of issue, a policy can no longer be cancelled by the insurer for mistatements (except for fraud)
1
2
3
4
2
during the course of an insurance transaction, which of the following is NOT a duty of the producer?
Highlight the protections guaranteed by the Guaranty Associations
be fair and honest
do not misrepresent the provisions of the policy
submit premiums collected to the insurer in a timely manner
Highlight the protections guaranteed by the Guaranty Associations
Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performd, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability?
Recurrent
Any occupation
Own occupation
Presumptive
Own occupation
In contrast to a guaranteed renewable policy, a noncancellable policy?
May cancel the policy only at renewal
may raise premiums at policy renewal
may raise premiums at anytime
may never raise premiums
may never raise premiums
XYZ corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence
premiums are paid with tax credits
benefits are partially taxable
benefits are fully taxable
premiums are paid with after tax dollars
benefits are fully taxable
A producer has committed an insurance crime that violates US COde 1033 (interstate commerce). Who would be responsible for the prosecution of this crime?
US attorney general
lieutenant governor
director
state senate
US attorney general
An insured under a major medical expense plan with a zero deductible and 80/20 coinsurance provision files a $1,000 claim. How much of this claim is the insured responsible for?
$160
$200
$600
$800
$200
The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage, which can include
medicare in-hospital deductible
replacing HMO coverage
covering chiropractice treatment
treatment provided in government hospital
medicare in-hospital deductible
The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under the rule?
long term care insurance premiums
dread disease insurance premiums
travel accidental insurance premiums
individual disability income insurance premiums
long term care insurance premiums
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?
Principal returned is taxable
Benefits are still payable tax-free to the beneficiary
Company retains entire cash value
Premiums paid plus interest earnred is returned to the beneficiary
Premiums paid plus interest earnred is returned to the beneficiary
Tia the producer is recommending to a prospect that an existing life insurance policy be replaced with a new one from her insurer. If this transaction moves forward, which of the following does NOT need to be provided to the prospect at or before the policy is delivered?
notice regarding replacement
replacing insurer’s financial statements
buyer’s guide
policy summary
replacing insurer’s financial statements
Long term care insurance policies sold in south carolina are not required to cover
substance addiction
dementia
alzheimers disease
custodial care
substance addiction
Which of the following is considered to be a point of service (POS) plan?
preferred provider organization
managed care plan
protected care provider
restricted provider organization
managed care plan
If the cause of death appears to be accidental, an insurer may require a(n)
police report
background check
hospital report
autopsy
autopsy
Which action will a life insurance company most likely take if an insured dies and it is discovered that the insured’s age was misstated on the application?
pay an amount reduced by a specific percentage of the face amount
pay nothing
pay an amount the premiums would have purchased at the insured’s actual age
pay 50% of the initial death benefit
pay an amount the premiums would have purchased at the insured’s actual age
Someone needing custodial care at home qould require which type of coverage?
major medical
disability
long-term care
medicaid
long-term care
What are an applicants statements concerning occupation, hobbies, and personal health history regarded as?
warranty
guarantee
representation
collateral
representation
A life insurance policy that has premiums fully paid up with within a stated time period is called
stated payment insurance
limited univeral insurance
stated modified insurance
limited payment insurance
limited payment insurance
A doctor who accepts mediare assignment agrees to which of the following
may charge up to a 15% more than medicare pays for the service
doctor is not bound by medicares limitations on charges
doctor cannot charge more than medicare’s scheduled coverage
doctors bills the medicare beneficiary directly for services performed
doctor cannot charge more than medicare’s scheduled coverage
A policyowner may change two policy features on what type of life insurance?
modified whole life
decreasing term life
adjustable life
whole life
adjustable life
Which of these statements regarding the annuitant is correct?
the contract can only be assigned by the annuitant
the annuitant is the only individual who can surrender the contract
the annuitant must also be the beneficiary
the annuitant’s life expectancy determines the annuity payments
the annuitant’s life expectancy determines the annuity payments
sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective start date being May 30. On which date would sonya have coverage?
April 1
April 6
May 15
May 30
May 30
Which of the following is not an example of utilization review?
monitoring length of hospital stay
ongoing inspection of accident-prone individuals
monitoring the appropriateness of care
setting a hospital release date for a patient
ongoing inspection of accident-prone individuals
In south carolina the grace period for a life insurance policy is __ days
14
30
31
45
31
What is an insurance policy’s grace period?
Period of time after the initial premium is paid and before the policy is issued
period of time it takes for a policy’s underwriting to complete
period of time after a policy is issued and before it is delivered to a policyowner
period of time the premium is due but the policy remains in force
period of time the premium is due but the policy remains in force
Notice of claim must be completed in how many days
10
20
30
45
20
Claim forms must be provided in how many days
10
15
30
45
15
Proof of loss must be provided in how many days
30
60
75
90
90
Policy owner must wait how many days from submitting a claim taking legal action
10
15
30
60
60
Policy owner must wait how long after submitting a loss to file legal action against the company
1 year
2 years
3 years
5 years
3 years
Reinstated health plans protect accidents after how long
immediately
10 days
20 days
30 days
immediately
Reinstated health plans protect against sickness after how long
immediately
10 days
20 days
30 days
10 days
HIPPA applies to employer groups of what size
2 or more
10 or more
15 or more
20 or more
2 or more
COBRA applies to employer groups of what size
2 or more
10 or more
20 or more
50 or more
20 or more
non qualified means
funded with after tax dollars
Which does NOT trigger the payment of an Accelerated Death Benefit
The insured is terminally ill
The insured is medically confined to a nurse home
The insured requires an organ transplant
The insured is permanently and totally disabled
The insured is permanently and totally disabled
Which policy contains a corridor deductible?
Major Medical
Base Plan
Disability Income
Comprehensive Major Medical
Comprehensive Major Medical
Which benefit of Disability Income policy is only available as a rider?
Waiver of Premium
Recurrent Disability
Presumptive Total Disability
Additional Monthly benefit
Additional Monthly Benefit
Which is not allowed in a Life policy approved for sale
A free 30 day look period
A free 60 day look period
A one month suicide clause
A 3 year incontestable clause
A 3 year incontestable clause
