Test Questions Flashcards
The gatekeeper of an HMO helps……
Control Specialist Costs
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan whichever is the greater amount
1. How soon following the occurrence of a covered loss must an insured submit written proof of such a loss to the insurance company?
A) as soon as possible
B) within 20 days
C) within 60 days
D) within 90 days or as soon as reasonably possible, but not to exceed one year
D) Within 90 days or as soon as reasonably possible, but not to exceed one year.
The “proof of loss” provision states the claimant must submit a proof of loss within 90 days; however, if it is not possible to comply, the time parameter is extended to one year. The one-year limit does not apply if the claimant is not legally competent to comply with this provision.
2. Who must pay the cost of a medical examination required in the process of underwriting?
A) applicant
B) underwriters
C) department of insurance
D) insurer
The insurer
If an insurer requests a medical examination, the insurer is responsible for the cost of the exam.
4. All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
a) most term policies contain a convertibility option.
b) upon conversion, the premium for the permanent policy will be based upon attained age.
c) upon conversion, the death benefit of the permanent policy will be reduced by 50%
d) evidence of insurability is not required.
c) upon conversion, the death benefit of the permanent policy will be reduced by 50%.
Convertible term insurance is convertible without Proof of insurability up to the fall term definite fit. However, upon conversion, the premium for the permanent policy will be based on the insured’s attained age.
In a policyholder takes a policy loan after the 4th year of the policy and dies before the loan is repaid, what portion of the death benefit will be paid?
Any outstanding policy loan balance plus interest will be deducted from the policy death benefit.
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio.
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the?
Insuring clause
Which health insurance provision describes the insureds right to cancel coverage?
Renewal provision
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard & Poor’s 500 index
Equity indeed annuity
What is eligibility requirement for all Social Security disability income benefits?
Have attained fully insured status
What is true about the premium on the children’s rider in a life insurance policy?
It remains the same no matter how many children are added to the policy
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
An insured pays $100 premium every month for his insurance coverage, yet then insurer promises to pay $10,000 for a covered loss. What characteristic of insurance contract does this describe?
Aleatory
What type of insurance would be used for a return of premium rider?
Increasing term
what can legally bind coverage?
Insurer
An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicants premium check, answers any questions the applicant may have and then leaves. What did the agent forget to do?
Ask her to sign a statement of good health
Which provision of a life insurance policy, states the insurers duty to pay benefits upon the death of the insured, and to whom the benefits will be paid
Insuring clause
Which type of life insurance policy generates immediate cash value?
Single premium
Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
Which of the following special policies cover unusual risks that are not normally included under Accidental Death and dismemberment coverage
Special risk policy
An insured pays $1200 annually for her life insurance premium. The insured applies this year’s $300 worth of accumulated dividends to the next year’s premium thus reducing it to $900
Reduction of premium
Under which non forfeiture option does the company pay the surrender value and have no further obligation to the policy owner
Cash surrender
What is the name of the insured who enters into a viatical settlement?
Viator
Upon policy delivery, the producer may be required to obtain any of the following except?
Signed waiver of premium
The main difference between immediate and deferred annuities is?
When the income payments begin
The type of dental plan which is incorporated into a major medical expense plan is a?
Integrated dental plan
What will be included in the policy summary?
Premium amounts and Surrender values
In which of the following situations would Social Security disability benefits not cease?
The individual son gets a part-time job to help support the family
While a claim is pending, an insurance company may require:
an independent examination as often as reasonably required
When a disabled dependent child reaches the age limit for coverage, how long does the policy owner have to provide proof of dependency to remain covered under the policy?
31 days
The policy owner wants to make sure upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children, when they reach a certain age. Which settlement option?
Interest only option
A policy will pay the death benefit if the insured dies during the 20 year premium paying period, And nothing if death occurs after the 20 year period. What type of policy is this?
Level term
A policy with a 31 day grace period implies ?
The policy will not lapse for 31 days if the premium is not paid when due
Zoe was recently prescribed a new medication by her doctor. She has been using a pharmacy that her HMO provider recommended, but now wants to use another pharmacy that is more convenient for her. What Must Zoe consider?
Since an HMO cannot prohibit members from using any pharmacy, Zoe will be fine in this example
The inflation protection feature in long-term care policies issued in the state must provide protection for inflation at what percentage anually?
5%
