Insurance licensing test prep – Flashcards
Unlock all answers in this set
Unlock answersquestion
Superimposed Plan
answer
Which of the following statements is not true of a Combination Dental Plan?
question
Funds exceeding premium are taxed as income
answer
Which is true about the cash surrender nonforfeiture option?
question
Emergency Surgery
answer
All of the following may be excluded from coverage in a Major Medical Expense policy, EXCEPT...
question
At least 100 employees
answer
SIMPLE Plans require all of the following EXCEPT
question
Full benefits
answer
Alden is involved in a small plane accident that renders him permanently deaf, although he does not sustain any other major injuries. Alden is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?
question
It provides income the beneficiary can't outlive
answer
Which of the following is true regarding a single life settlement option?
question
Depreciation Period
answer
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
question
Target premium
answer
Which of the following would help prevent a universal life policy from lapsing?
question
Policy delivery
answer
Which of the following is the most common time for errors and omissions to occur on the part of an insurer?
question
Premiums are lower
answer
Which is generally true regarding insureds who have earned Preferred status?
question
Residential care
answer
Which of the following LTC Coverages would NOT encourage an insured to receive care at home?
question
The plan is funded by permanent insurance only
answer
All of the following are true of Key Person insurance EXCEPT
question
Rated
answer
Another name for a substandard risk classification is...
question
Amanda is 67 and is covered by a basic medical expense policy
answer
Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?
question
Prior to the time of the application
answer
A long-term care shopper's guide must be presented at what point?
question
They seldom contain a conversion privilege
answer
Which of the following statements is true concerning employer group dental plans?
question
$120 a day
answer
An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged a $100 per day. How much will the insurance company pay?
question
The commissioner
answer
If a producer is suspected of acting in violation of the Insurance Code, what authority would preside over a legal hearing regarding the matter?
question
Set premium rates
answer
The Ownership provision entitles the policyowner to do all of the following EXCEPT
question
Race
answer
What is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance?
question
Has at least 50 members
answer
An association could buy group insurance for its members if it meets all of the following requirements EXCEPT
question
Purchase a single premium policy with a reduced face amount
answer
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
question
24 hours
answer
How many hours of continuing education credits are required in order for a producer to renew his/her license?
question
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
answer
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
question
Warn the applicant about the 10-day free-look period
answer
An agent is completing an application for a long-term care policy. The agent is required to do all of the following EXCEPT
question
Insured is unable to perform duties of the occupation for which he/she was educated and trained.
answer
Which of the following refers to "own occupation" disability?
question
Increase benefit levels without providing proof of insurability
answer
Guarantee of insurability option in long-term care policies allows the insured to
question
Application
answer
Where would an underwriter find an agent's report regarding a prospective insured?
question
Funding against general company financial loss.
answer
The following are legitimate uses of insurance in a business setting EXCEPT
question
2 years
answer
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over what period of time?
question
Producer B writes a group policy covering a large hospital where his wife is the comptroller. This represented 27% of his commissions last year.
answer
Which of the following cases would constitute a violation of Louisiana's Controlled Business Statute?
question
Visits by a registered nurse
answer
What types of services may not be provided under LTC's Assisted Living?
question
The 12 months of creditable coverage must all come from the same employer.
answer
Which of the following is INCORRECT regarding HIPAA's creditable coverage?
question
FINRA
answer
An agent selling variable annuities must be registered with
question
Private insurers may be authorized to transact insurance by state insurance departments.
answer
Which of the following statements is an accurate comparison between private and government insurers?
question
Medical Information Bureau
answer
An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?
question
A statement of good health
answer
When the policy premium wasn't submitted with the application, what should the agent obtain from the insured upon policy delivery?
question
Installments for a fixed PERIOD
answer
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
question
Fair Credit Reporting Act
answer
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?
question
Free Look
answer
Which provision allows a person to return a Medicare supplement policy within 30 days for a full premium refund?
question
In a Stock Redemption Plan, the policies are owned by an entity, and in a Cross Purchase Plan, the policies are owned by individuals.
answer
What is the major difference between a Stock Redemption Plan and a Cross Purchase Plan?
question
20 days
answer
Once a claim for loss is received, how many days does the insurer have to pay it before the interest on benefits begins to accrue?
question
Monthly
answer
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
question
The payable premium amount steadily declines throughout the duration of the contract.
answer
All of the following are true regarding a decreasing term policy EXCEPT
question
Are made by the business and are NOT tax-deductible
answer
Under a Key Person disability income policy, premium payments
question
Mental illness
answer
In health underwriting, it would be inappropriate to decline a risk using any of the following factors EXCEPT
question
After more than 1 year
answer
With a Single Premium Deferred Annuity (SPDA), when are the benefits paid?
question
Closed panel
answer
In which of the following cases is the doctor considered to be an employee of the PPO?
question
Early detection through regular checkups
answer
What is the goal of the HMO?
question
Evidence of insurability may be required when insurance is increased.
answer
Which of the following statements is correct regarding Adjustable Life?
question
2 or more
answer
HIPAA applies to groups of
question
Accident only
answer
Jacob's insurance policy only pays for medical costs related to accidents. Which of the following types of policies does he have?
question
Prohibits payments for regularly covered services if provided by non-network providers.
answer
A Medicare SELECT policy
question
Cash values can be borrowed at any time.
answer
What does "liquidity" refer to in a life insurance policy?
question
Nothing, due the insured's reaching the maximum age.
answer
An employer provides a group life plan for its employees; it is $50,000 of term to age 65. When one of the employees was hired 10 years ago, he misstated his age and told the employer he was 50, when in fact he was 56 years old. The insured employee died last week. His beneficiary will receive
question
Workers Compensation
answer
Which of the following is NOT an example of a business use of Life Insurance?
question
It transfers the owner's rights under the policy to the extent expressed in the assignment form.
answer
Which of the following statements is true about a policy assignment?
question
Automatic Premium Loan
answer
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
question
The creditors have rights to the proceeds if they can show evidence of valid assignment.
answer
Which of the following statements is true concerning the creditors of the deceased insured?
question
Extended term
answer
Which nonforfeiture option has the highest amount of insurance protection?
question
Submit the form to the Commissioner of Insurance for approval
answer
An insurer writes a Disclosure Authorization Notice. Before it is distributed to insureds, what must the insurer do?
question
Errors and Omissions
answer
What type of insurance protects producers in the event that they are negligent in their duties and are sued by insureds as a result?
question
Not subject to income taxation by the Federal Government.
answer
Death benefits payable to a beneficiary under a life insurance policy are generally
question
The insured should contact the insurer to confirm her actual Social Security benefit amount. The SIS rider should pay the difference between the rider amount and the actual benefit.
answer
An insured has a Social Insurance Supplement rider in her disability income plan. Following a disability, she begins receiving benefit payments from the insurer. She then begins receiving Social Security benefits that are smaller than the SIS benefit payments. At that point, her insurer ends the SIS benefit payments. Which of the following best describes the situation?
question
Denial of coverage
answer
Which of the following is NOT a cost-saving service?
question
150 days
answer
The widower of an agent was issued a temporary license 30 days ago. How much longer can he legally serve under this license?
question
Medicaid is a state funded program that provides health care to persons over age 65, only.
answer
Which of the following statements concerning medicaid are false?
question
An executive officer of an insurer
answer
Who can make changes to the policy once it is in effect?
question
Adjust the claim benefit to reflect the woman's true age
answer
A woman misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?
question
Death due to plane crash for a fare-paying passenger
answer
Which of the following is NOT typically excluded from life policies?
question
Children born after the inception of the contract
answer
A man purchased a health policy to provide coverage on himself, his wife, and their two children. All of them would need to prove insurability EXCEPT
question
The insurance through his company is primary
answer
A man works for Company A and his wife works for Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim,
question
They allow several small employers purchase less expensive insurance together.
answer
Which of the following is true regarding METs?
question
It provides care to people with life expectancies of 1-2 years
answer
Which of the following does NOT describe hospice care?
question
Time Limit on Certain Defenses Clause
answer
A health insurance policy clause that prevents an insurance company from denying payment of a claim after a specified period of time is known as the
question
The spouse of a retired producer
answer
A temporary license may NOT be issued to
question
Consider decreasing the premium
answer
When Ken purchased his health policy he was a window washer. He has since changed occupations and now manages a library. Upon notifying the insurer of his change of occupation, the insurer should
question
When the insured reached age 100
answer
When would a 20-pay whole life policy endow?
question
A defined contribution plan for a small business
answer
If a company has a Simplified Employee Pension plan, what type of plan is it?
question
Integrated Dental Plan
answer
The type of dental plan which is incorporated into a major medical expense plan is a
question
Mutual
answer
An insured purchased an insurance policy 5 years ago. Last year she received a dividend check from the insurance company which was not taxable. This year she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
question
The guardian may or may not be accountable for assets
answer
Life insurance benefits for minors must be placed in the hands of either a guardian or a trustee. Which of the following is true?
question
Need is predicted using the number of years until the insured's retirement.
answer
Which of the following is NOT true regarding the Needs Approach method of determining the value of an individual's life?
question
To protect policyowners against insurer insolvency
answer
What is the purpose of the Insurance Guaranty Association?
question
Exemption periods
answer
What is the purpose of the Insurance Guaranty Association?
question
Coverage for the treatment of Alzheimer's Disease
answer
Long term care insurance policies can exclude all of the following EXCEPT
question
Cash Value
answer
What limits the amount that a policyowner may borrow from a whole life insurance policy?
question
The insured's secondary beneficiary
answer
If both the insured and the primary beneficiary died in the same car accident and it is impossible to determine who died first, which of the following will most likely receive the death benefit?
question
Aleatory
answer
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
question
Producer C uses her license to write uncontrolled business only
answer
Which of the following would not be a violation of Louisiana insurance regulations?
