Questions on the Pretest

Question 1

An insurer must provide an insured with claim forms within __ days after receiving notice of a loss

An insurance company is required to send forms for filing proof of loss to a claimant within __ days after company receives notice of a claim.

Answer 1

15 Days

Question 2

P is a producer who is licensed in Iowa but a resident of Nebraska. P is a(n) _____producer.

Answer 2

nonresident

Question 3

A Disability Income policy that only the policy owner can terminate and which the rates will never go up is considered to be

Answer 3

Noncancellable

Question 4

Insuring Clause

Answer 4

states the amount of benefits to be paid in an Accident and Health policy

Question 5

M’s insurance company denied a reinstatement application for her lapsed health insurance policy. The company did NOT notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically place back in force?

Answer 5

45 days

Question 6

Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is

Answer 6

Business overhead expense

Question 7

Which of the following is NOT included in the policy face?

Answer 7

Exclusions are Not included

Question 8

The reason for a business having a Business Overhead Expense Disability Plan is to cover:

Answer 8

Fixed Business Expenses

Question 9

In a Disability Income Policy, Which of these clauses acts as a deductible?

Answer 9

Elimination Period

Question 10

How much of Individual Disability Income Policy payouts are subject to Federal Income Tax?

Answer 10

$0000

Disability income benefits that derive from an individual policy which was paid entirely by the policy owner is not subject to federal income tax.

Question 11

Which of the following statements BEST describes dental care indemnity coverage?

Answer 11

Services are reimbursed after insurer receives the invoice

Question 12

The sections of an insurance contract which limit coverage are called

Answer 12

exclusions

Question 13

Taking receipt of premiums and holding them for the insurance company is an example of

Answer 13

Fiduciary responsibility

Question 14

If a Medicare Supplement Policy involves replacement, it must be verified on a question located

Answer 14

on the application

Question 15

Which Accident and Health policy provision addresses preexisting conditions?

Answer 15

Time Limit on Certain Defenses

Question 16

The Notice of Claims provision requires a policyowner to:

Answer 16

notify an insurer of a claim within a specified time

Question 17

Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?

Answer 17

The maximum amount considered eligible for reimbursement by an insurance company under a health plan.

“UCR charges are the maximum amount the insurer will consider eligible for reimbursement under a health insurance plan.”

Question 18

Under what system do a group of doctors and hospitals in a designated are contract with an insurer to provide services at a prearranged cost to the insured?

Answer 18

PPO

Question 19

Under Iowa law, which of the following provisions is NOT required in a Medicare Supplement policy?

Answer 19

Limitation on pre-existing conditions for up to 12 months

Question 20

During the course of a Medicare Supplement sale, T the producer determines there is an existing policy being replaced. Which of these actions is T NOT required to perform?

Answer 20

Notify the replaced insurance company

Question 21

XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is:

Answer 21

100%

Question 22

The percentage of an individuals Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?

Answer 22

Social Security Disability Income

Question 23

Long Term Care policies will usually pay for eligible benefits using which of the following methods?

Answer 23

Expense Incurred

Question 24

C is the policyowner of a Comprehensive Individual Major Medical Policy. C pays an annual premium which is due September 1. If C forgets to pay the premium and is hospitalized September 10, how will the insurer handle this claim?

Answer 24

Pay the claim in full minus the premium due

Question 25

What is the initial requirement for an insurd to become eligible for benefits under the Waiver of Premium provision?

Answer 25

Insured must be under a physicians care

Under Waiver of Premium, which is a rider that will pay your premium while you’re disabled, you must have a doctor certify that you meet the definition of disability as contained in the rider.

Question 26

When must insurable interest be present in order for a life insurance policy to be valid?

Answer 26

When the application is made

Question 27

The benefits under a Disabiltiy Buy-Out policy are:

Answer 27

payable to the company or another shareholder

Question 28

Insurers may request a hearing within _____ if their policy is rejected

Answer 28

20 Days

Question 29

S is a producer. His appointment with his insurer has been terminated. The insurer is required to mail a notice of termination to S within ____ days.

Answer 29

15 days

Question 30

An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the:

Answer 30

insurer dates the policy

Question 31

Which of the Following BEST describes a short-term medical expense policy?

Answer 31

Nonrenewable

Question 32

The required free-look period in a Medicare Supplement policy is ___days

Answer 32

30

Question 33

According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?

Answer 33

31 days

Question 34

An individual must submit an application for a producers license within ___ days after successfully passing the state examination

Answer 34

90 days

Question 35

A disability elimination period is best described as a

Answer 35

time deductible

Question 36

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to;

Answer 36

continue group health benefits

Question 37

Insured losses are covered immediately after a health policy is reinstated when

Answer 37

the losses result from accidental injuries

Question 38

How long is the typical free look period for Long Term care insurance policies?

Answer 38

30 days

Question 39

A life insurance policy would be considered a wagering contract WITHOUT:

Answer 39

insurable interest