Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Insurance Producer License > Practice Test Questions > Flashcards

Practice Test Questions Flashcards

1
Q

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

A

Equity-index annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

All of these are standard exclusions found in a life insurance policy?

Hazardous occupations
Aviation
Disability
War

A

War

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

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

A

Guaranteed insurability rider

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

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

A

18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

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

A

Policy summary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

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

A

Integrated deductible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

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

A

$500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The typical free look period for life insurance policies sold in South Carolina is __ days?

5
10
15
20

A

10

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

All of the following riders can increase the death benefit amount EXCEPT

Cost of Living
Waiver of Premium
Accidental Death Rider
Guaranteed Insurability

A

Waiver of Premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

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

A

At the time of application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

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

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A fee for service of health insurance will normally cover

Vitamins and natural remedies
Cosmetic producers
Gym membership
A disease

A

A disease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

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

A

Collateral assignment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

An insurance policy may not be canceled by the insurer (except for fraud) after __ year(s) from policy issue

1
2
3
4

A

2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

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

A

Preferred Provider Organization plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Distributors from a Health Savings Account (HSA) for qualified medical expenses are

Fully-taxable
tax-free
partially taxable
tax credits

A

tax free

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

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

A

Dental treatment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

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

A

June 30, 2023 (Renewable two years on or before the last day of the producers birth month)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

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

A

Payor benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Medicare Part B covers

long-term care
hospital room and board
doctors charges
prescription drugs

A

doctors charges

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

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

A

Unpaid provision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which of these factors is NOT taken into account when determining an applicant’s life insurance needs?

Social security
Automobile
Savings
Pension

A

Automobile

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

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

A

Spendthrift clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

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

A

Duplicate medicare benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

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

A

3

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

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

A

90

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

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

A prorated death benefit based on the amount of insurance the insured’s premiums would have been if purchased at the correct age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

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

A

It provides benefits for nonoccupational illnesses and injuries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

A guaranteed issue insurance policy has no

Initial premium requirement
Incontestable period
Waiting period
Medical underwriting

A

Medical underwriting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Which of these is NOT subject to false advertising regulations?

Gifts
Brochures
Billboards
Letters

A

Gift

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

An insurer formed according to the legal requirements of another country is considered a(n)

reciprocal insurer
alien insurer
foreign insurer
international insurer

A

alien insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

An insurance applicant with a below-average likelihood of loss is typically considered to be a

preferred risk
subpar risk
declined risk
standard risk

A

preferred risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

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

A

completing all applications and collecting initial premiums

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Which of these is affected by the frequency of an insurance policy premium payments?

settlement options
cash value
death benefit
cost

A

cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

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

A

temporary employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

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

A

it must include outpatient prescription drug coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Which of these gaps in medicare coverage is addressed with medicare supplement insurance

medicare in-hospital deductible
dental work
nutrional supplements
chiropractic care

A

medicare in-hospital deductible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

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

A

gains

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

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

A

life annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

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

A

to help underwriters evaluate risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

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

A

The family’s financial objectives if the income earner were to die or become disabled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

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

A

insurable interest can be established sufficiently by sentimental attachment alone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

what guarantees that the statements supplied by an insurance applicant are true?

assurance
promise
representation
warranty

A

warranty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Within __ days after policy delivery, an individual life insurance policy can be returned for a 100% premium refund

5
10
15
20

A

10

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

If an employer-sponsored group accident and health plan, a master contract is issued to the

TPA
employees
Administrative Service Organization
employer

A

employer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

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

A

National association of insurance underwriters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

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

A

defamation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

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

A

names of the beneficiaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

what does the Group Life underwriting selection process help protect insurance companies from?

risk aversion
natural selection
adverse selection
risk management

A

adverse selection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

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

A

60% of the benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

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

A

applicant’s health condition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Benefits for a Medicare Supplement policy

may duplicate medicare benefits
must not duplicate medicare benefits
may duplicate specific medicare benefits
are provided by medicare

A

must not duplicate Medicare benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

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

A

excludes payments for a short-term illness or injury

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

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

A

the daily amount paid for nursing home care

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

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

A

an amount the premium would have purchased at the correct age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

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

A

The amount contributed by the employer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

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

A

Benefit period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

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

A

making a false written or oral statement for the purpose of replacing an existing policy to the detrement of the insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

All of the following are characteristics of a Group Life Insurance policy plan EXCEPT

group underwriting
master contract
individual underwriting
probationary period

A

individual underwriting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Within how many days must a traditional IRA be rolled over to another IRA in order to avoid tax consequences?

30
45
60
90

A

60

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

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

A

coinsurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

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

A

viatical settlement contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

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

A

Requires certain conditions or acts by the insured individual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

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

A

with guidelines regarding credit reporting and distribution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

The cause of a loss is referred to as a(n)

hazard
adversity
peril
risk

A

peril

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

which of the following is NOT a required provision in an accident and health insurance policy?

legal actions
grace period
change of occupation
reinstatement

A

change of occupation

67
Q

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

A

63

68
Q

In a Long-term care policy, activities of daily living (ADL’s) can be each of the following EXCEPT

Talking
Dressing
Transferring
Feeding Oneself

A

Talking

69
Q

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

A

full time nursing care

70
Q

An insurer may legally defer payment of a cash surrender value for up to

6 months
9 months
12 months
15 months

A

6 months

71
Q

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

a flexible premium schedule

72
Q

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

A

funded by federal, state, and local taxes

73
Q

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

A

fails to pay the premium

74
Q

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

A

normally at any time during the policy term

75
Q

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

A

Net benefit will be reduced if the loan is not repaid

76
Q

The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage

1
3
5
7

A

1

77
Q

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

A

payor rider

78
Q

After a disability policy has been in force for __ year(s) it is considered incontestable

1
2
3
4

A

2

79
Q

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

A

Part C

80
Q

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

A

Bronze, silver, gold, and platinum

81
Q

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

A

stop engaging in the act

82
Q

How many employees must an employer have for a terminated employee to be eligible for COBRA

20
30
40
50

A

20

83
Q

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

A

Change of occupation provision

84
Q

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

A

Time period a disabled person must wait before benefits are paid

85
Q

Who were Keogh plans designed to provide pension benefits for?

Corporate officers
Public school employees
The self-employed
Government employees

A

The self-employed

86
Q

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

A

March 23, 2010

87
Q 
An example of a presumptive disability would be 
a stroke
deafness
diabetes
cancer
A

deafness

88
Q

The type of policy which pays on the death of the last person is called

joint life
survivorship life
dual life
shared life

A

survivorship life

89
Q

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

A

Universal life

90
Q

When the principal gives the agent authority in writing, it is referred to as

express authority
implied authority
apparenty authority
imposed authority

A

express authority

91
Q

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

A

giving a gift of less than $25 to a client

92
Q

Ownership of a life insurance policy may be temporarily transferred with a(n)

collateral assignment
absolute assignment
transferable assignment
beneficiary assignment

A

collateral assignment

93
Q

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

A

the insurer’s obligation to pay a death benefit upon an approved death claim

94
Q

How do insurers predict the increase of individual risks?

law of large numbers
US Census
Average mortality incidents
Experience of morbidity

A

law of large numbers

95
Q

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

A

human life value

96
Q

A master contract and certificate of coverage can be found in which type of policy?

long term
medicaid
group
medicare

A

group

97
Q

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

A

The benefit can be offered as a rider at a specific extra cost or may be at no cost

98
Q

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

A

14 day waiting period / 10 year benefit period

99
Q

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

A

the policy would be payable, minus the premium amount

100
Q

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

A

Medicare supplement Plan F

101
Q

Medicare Part A covers

outpatient services
doctors fee
inpatient hospital stay
prescription drugs

A

inpatient hospital stay

102
Q

Fixed annuities provide each of the following EXCEPT

guaranteed interest
retirment funds
hedge against inflation
tax advantage

A

hedge against inflation

103
Q

The open enrollment period of Medicare Supplements begins at age

62
65
67
70

A

65

104
Q

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

A

refund annuity

105
Q

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

A

when the recipient pays the premiums

106
Q

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

A

fare-paying passenger

107
Q

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

A

state insurance departments

108
Q

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

A

lower than the typical whole life policy during the first few years and then higher than the typical for the remainder

109
Q

which entity is responsible for regulating continuing education requirements in South Carolina

Department of Insurance
NAIC
Board of Regents
Department of Education

A

Department of Insurance

110
Q

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

A

seeks temporary protection and lower premiums

111
Q

In most dental plans, a decutible is not typically applied to

preventative and diagnostic services
restorative dentistry
orthodontics
oral surgery

A

preventative and diagnostic services

112
Q

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

A

unpaid premium

113
Q

After a health insurance policy has been in force for __ year(s) the policy is incotestible (except for fraud)

1
2
3
4

A

2

114
Q

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

A

grace period

115
Q

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

A

accelerated death benefit rider

116
Q

the free look period in south carolina for individual health insurance policies is __ days

5
10
15
20

A

10

117
Q

Which of the following is Medicare Part B also known as

hospital insurance
medical insurance
long term care insurance
medigap

A

medical insurance

118
Q

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

A

revoke an absolute assignment

119
Q

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

A

reinsurer

120
Q

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

A

asset protection

121
Q

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

A

physical therapy

122
Q

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

A

family term

123
Q

What is the primary factor that determines the benefits paid under a disability income policy?

education level
wages
type of occupation
age

A

wages

124
Q

Prior to a disciplinary hearing, the director is required to give at least __ days notice

20
30
40
50

A

30

125
Q

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

A

2

126
Q

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

A

Highlight the protections guaranteed by the Guaranty Associations

127
Q

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

A

Own occupation

128
Q

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

A

may never raise premiums

129
Q

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

A

benefits are fully taxable

130
Q

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

A

US attorney general

131
Q

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

A

$200

132
Q

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

A

medicare in-hospital deductible

133
Q

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

A

long term care insurance premiums

134
Q

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

A

Premiums paid plus interest earnred is returned to the beneficiary

135
Q

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

A

replacing insurer’s financial statements

136
Q

Long term care insurance policies sold in south carolina are not required to cover

substance addiction
dementia
alzheimers disease
custodial care

A

substance addiction

137
Q

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

A

managed care plan

138
Q

If the cause of death appears to be accidental, an insurer may require a(n)

police report
background check
hospital report
autopsy

A

autopsy

139
Q

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

A

pay an amount the premiums would have purchased at the insured’s actual age

140
Q

Someone needing custodial care at home qould require which type of coverage?

major medical
disability
long-term care
medicaid

A

long-term care

141
Q

What are an applicants statements concerning occupation, hobbies, and personal health history regarded as?

warranty
guarantee
representation
collateral

A

representation

142
Q

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

A

limited payment insurance

143
Q

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

A

doctor cannot charge more than medicare’s scheduled coverage

144
Q

A policyowner may change two policy features on what type of life insurance?

modified whole life
decreasing term life
adjustable life
whole life

A

adjustable life

145
Q

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

A

the annuitant’s life expectancy determines the annuity payments

146
Q

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

A

May 30

147
Q

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

A

ongoing inspection of accident-prone individuals

148
Q

In south carolina the grace period for a life insurance policy is __ days

14
30
31
45

A

31

149
Q

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

A

period of time the premium is due but the policy remains in force

150
Q

Notice of claim must be completed in how many days

10
20
30
45

A

20

151
Q

Claim forms must be provided in how many days

10
15
30
45

A

15

152
Q

Proof of loss must be provided in how many days

30
60
75
90

A

90

153
Q

Policy owner must wait how many days from submitting a claim taking legal action

10
15
30
60

A

60

154
Q

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

A

3 years

155
Q

Reinstated health plans protect accidents after how long

immediately
10 days
20 days
30 days

A

immediately

156
Q

Reinstated health plans protect against sickness after how long

immediately
10 days
20 days
30 days

A

10 days

157
Q

HIPPA applies to employer groups of what size

2 or more
10 or more
15 or more
20 or more

A

2 or more

158
Q

COBRA applies to employer groups of what size

2 or more
10 or more
20 or more
50 or more

A

20 or more

159
Q

non qualified means

A

funded with after tax dollars

160
Q

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

A

The insured is permanently and totally disabled

161
Q

Which policy contains a corridor deductible?

Major Medical
Base Plan
Disability Income
Comprehensive Major Medical

A

Comprehensive Major Medical

162
Q

Which benefit of Disability Income policy is only available as a rider?

Waiver of Premium
Recurrent Disability
Presumptive Total Disability
Additional Monthly benefit

A

Additional Monthly Benefit

163
Q

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

A 3 year incontestable clause

Insurance Producer License (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions