question

which of the following is true regarding METs

answer

they allow several small employers purchase less expensive insurance together

question

a medical expense policy that establishes the amount of benefit paid based upon the prevailing changes which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as

answer

usual, customary, and reasonable

question

in reference to fixed annuities, what comprises most of a life insurance companys general account

answer

conservative investment like bonds

question

when can a long term policy deny a claim for losses incurred because of a more existing condition

answer

within 6 months of the effective date of coverage

question

what option allows the insured to periodically increases benefit levels without providing evidence of insurability

answer

guarantee of insurability

question

which nonforfeiture option provides coverage for the longest period of time

answer

reduced paid up

question

Which of the following is NOT a goal of risk retention? a) to fund losses that cannot be insured b)to minimize the insureds level of liability in the event of loss c) to reduce expenses and improve cash flow d) to increase control of claim reserving and claims settlements

answer

the minimize the insureds level of liability in the event of loss

question

Charla wants to serve as a producer for commissions galore insurance company, In addition to obtaining her producers license, what else must happen before she can officially transaction ignorance for CGIC?

answer

she must be appointed specifically by CGIC

question

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? a) Adhesion b)Subrogation c)Warranty d)Aleatory

answer

Aleatory

question

In which of the following cases will the insured be able to recieve the full face amount from a whole life policy? a) as soon as the cash value exceeds the face amount b) if there are no named beneficiaries when the policy is paid up c)at age 65 d)if the insured lives to age 100

answer

If the insured lives to age 100

question

Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? A)flexible life B) Variable Life C) Adjustable life D)Universal life

answer

Universal life

question

An insured notifies the insurance company that he has become disabled. what provision states that claims must be paid immediately upon written proof of loss?

answer

time of payment claims

question

an insured and his wife are both involved in a head on collision. the husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance had what provision?

answer

Common Disaster

question

The omnibus budget reconciliation act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under what age ________

answer

age 65 who are not retired

question

all of the following are true regarding MIB except? 1) MIB reports are based upon information supplied by doctors and hospitals 2)MIB information is reported to underwriters in coded form 3) MIB reports contain previous insurance information 4)Insurers may not refuse to accept an application solely due to information in an MIB report

answer

MIB reports are based upon information supplied by doctors and hospitals

question

The gatekeeper of an HMO helps

answer

control specialist costs

question

which of the following best defines target premium in a universal life policy? 1) the max amount the policyownder may pay on a policy 2)the minimum amount to make sure the policy is annually renewable 3)the corridor of insurance 4)the recommended amount to keep the policy in force throughout its lifetime

answer

the recommended amount to keep the policy in force throughout its lifetime

question

which statement regarding insurable risks is not correct? 1)the insurable risks needs to be statistically predictable 2) an insurable risk must involve a loss that is definite as to cause, time, place, and amount 3)insureds cannot be randomly selected 4)insurance cannot be mandatory

answer

insureds cannot be randomly selected

question

Occasional visits by which of the following medical professionals will not be covered under LTC's home health care? a)licensed practical nurses b)community based organization professionals c)attending physicians d)Registered Nurse

answer

Attending physicians

question

A producers license has been revoked a second time for violating the insurance code. When can the producer apply for a new license?

answer

after the revocation period

question

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of

answer

Misrepresentation

question

When is the insurability conditional receipt given

answer

when the premium is paid at the time of the application

question

when a life insurance policy stipulates that the beneficiary will receive payments in specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments

answer

spendthrift provision

question

what is the difference between the medicare approved amount for a service or supply and the actual charge

answer

excess charge

question

what is the advantage of reinstating a policy instead of applying for a new one>

answer

the original age is used for premium determination

question

To be eligible for a health savings account, an individual must be covered by a

answer

high deductible health plan

question

which of the following is not a feature of a guaranteed renewable provision? a)the insurer can increase the policy premium on an individual basis b)the insurer has a unilateral right to renew the policy for the life of the contract c) coverage is not renewable beyond the insureds age 65 d)The insured's benefits cannot be reduced

answer

The insurer can increase the policy premium of an individual basis

question

An applicant is considered to be high risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true? a)the insurer will issue a conditional coverage b)The insurer can increase the premium c) the insurer can add exclusions to the policy d)the insurer can rate up the policy

answer

the insurer will issue a conditional coverage

question

which of the following is true regarding statistics under an advertisement? a)the source must be identified b)the statistics must be figured using data from the last 3 years c)The equations used to figure them must also be shown d)the use of statistics is not allowed in advertisements

answer

the source must be identified

question

what is a major problem with naming a trust as the beneficiary of life insurance policy?

answer

they are expensive to administer

question

when a life insurance policy was issued, the policy owner designated a primary and contingent beneficiary. Several years later, both the insured and the primary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?

answer

The insureds contingent beneficiary

question

simple plans require all of the following except 1)no more than 100 employees 2)employees must receive a minimum of $5000 in annual compensation 3)at least 1000 employees 4)no other qualified plan can be used

answer

at least 1000 employees

question

What type of annuity promises to pay beneficiary, in lump sum, the difference between the amount paid into the contract and the benefits received prior to the annuitants death?

answer

Cast Refund annuity

question

All of the following are true regarding insurance policy loans EXCEPT 1) policy loans can be made on policies that do not accumulate cash value 2)the amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies 3)The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy 4)Policy owners can borrow up to the full amount of their whole life policy cash value

answer

policy loans can be made on policies that do not accumulate cash value

question

Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?

answer

20

question

All of the following are characteristics of a group life insurance plan EXCEPT a)the cost of the plan is determined by the average age of the group b)There is requirement to prove insurability on the part of the participants c)the participants receive a certificate of insurance as their proof or insurance d)a minimum number number of participants is required in order to underwrite the plan

answer

there is requirement to prove insurability on the part of the participants

question

an insured loses her left arm in an accident that is covered by her Accidental death and dismemberment policy. What kind of benefits will she most likely receive from the policy?

answer

The capital amount in lump sum

question

All of the following are correct about the required provisions of a health insurance policy EXCEPT a)the entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract b)a reinstated policy provides immediate coverage for an illness c)policies become incontestable after being in force for 3 years d)a grace period of 31 days is found in an annual pay policy

answer

a reinstated policy provides immediate coverage for an illness

question

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his suppose, but that the principal will be paid to their children whey they reach a certain age. Which settlement option should the policy owner choose?

answer

Interest only option

question

a policyowner is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership.The policy owner should have her husband named as the ____________

answer

revocable beneficiary

question

When a reduced paid up nonforfeiture option is chose, what happens to the ace amount of the policy?

answer

It is reduced to the amount of what the cash value would buy as a single premium

question

Medicaid provides all of the following benefits except a)eyeglasses b)family planning services c)income assistance for work related injury d)home health care services

answer

Income assistance for work related injury

question

In a survivorship life policy, when does the insurer pay the death benefit

answer

upon the last death

question

On a disability income policy that contains the "own occupation"definition of total disability, the insured will be entitled to benefits its they cannot perform

answer

their regular job

question

The regulation of the insurance industry primarily rests with

answer

the state

question

which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

answer

Replacement rule

question

Which of the following methods to designate a beneficiary literally means "by the head"

answer

per capita

question

Committing insurance fraud is considered a

answer

felony

question

to sign up for medicare prescription drug plan, individuals must first be enrolled in

answer

Medicare Part A

question

An applicant is discussing his options for medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare part A and Part B. what is the insurance company obligated to do?

answer

Offer the supplement policy on a guaranteed issue basis

question

A man bought an individual health insurance policy for himself. Which of the following roles does he now legally have?

answer

Subscriber and Insured

question

All of the following are characteristics of a universal life policy except?

answer

the planned premium pays for mortality charges and expenses and any excess is returned to the policy owner

question

The clause that protects the proceeds of a life insurance policy from the creditors after the death of the insured is known as

answer

spendthrift policy

question

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

answer

coercion

question

Which of the following will be included in a policy summary

answer

premium amounts and surrender values

question

IN a group life insurance policy, the employer may select all of the following except for the

answer

beneficiary

question

With the cash refund option, when the annuitant dies, what would the beneficiary receive

answer

the refund of the original amount minus payments already made

question

Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?

answer

bail out

question

which of the following statements is true regarding the cash value in a universal life policy?

answer

the insurer credits the cash value in the policy with a current interest rate

question

A universal life insurance policy has two types of interest rate that are called

answer

guaranteed and current

question

which of the following provisions must be included on the first page of a medicare supplement policy, which states the insurers right to change premium amounts?

answer

continuation provision

question

which of the following statements is not true concerning insurable interest as it applies to a life insurance

answer

a debtor has insurable interest in the life of a lender

question

which of the following would not be in violation of LA insurance regulations

answer

Producer C uses her license to write uncontrolled business only

question

Which of the following Regulatory authorities participated in creating the National do not call Registry

answer

The FTC....(and the FCC)

question

which of the following Life insurance policies would be considered interest sensitive?

answer

Universal life

question

which of the following is not the purpose of HIPAA

answer

to provide immediate coverage to new employees who had been previously covered for 18 months

question

Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due fate?

answer

Optionally Renewable

question

Which authority is not stated in an agents contract but is required for the agent to conduct business

answer

Implied

question

Which of the following types of insurance policies is most commonly used in credit life insurance?

answer

decreasing

question

Which of the following statements is true regarding LTC insurance

answer

every policy must offer nonforfeiture benefits to the applicant

question

Who makes up the medical information bureau

answer

insurers

question

premium payments for personally owned disability income policies are

answer

not tax deductible

question

what is the benefit of choosing extended term as a nonforfeiture option

answer

it has the highest amount of insurance protection

question

All of the following are examples of risk retention except for

answer

Premiums

question

Rod wants to pay his initial insurance premium in advance. Which of the following best describes his situation?

answer

Rod can pay his premium as early as he wants, even with his application

question

what documentation grants express authority to an agent

answer

agents contract and principal

question

which of the following is an eligibility requirement for all social security disability income benefits

answer

have attained fully insured status

question

In Insurance, an offer is usually made when

answer

the completed application is submitted

question

a husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouses coverage. IF one of them incurs hospital expense how will those expenses be paid

answer

the benefits will be coordinated

question

an applicant signs and application for 25,000 life insurance policy, pays the intial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,

answer

the beneficiary would receive 25,000 if it was determined that the insured qualified for the policy applied for

question

If an insured continually uses the automatic premium loan option to pay the policy premium the policy

answer

will terminate when the cash value is reduced to nothing

question

According to the rights of renewability rider for canceable policies, all of the following are correct about the cancellation of an individual insurance policy except

answer

unearned premiums are retained by the insurance company

question

an insured is upset that her new health insurance policy was delivered to her by certified mail and not through her agent. what is true

answer

there is nothing wrong with this policy delivery

question

According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10% what type of plan is this

answer

platinum

question

any license person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurnace may be imprisoened for

answer

10 years

question

which of the following is not true regarding equity indexed annuities

answer

they earn lower interest rates than fixed annuities

question

to sell variable life insurnace policy, an agent must receive all of the following except

answer

a SEC registration

question

when a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

answer

equal to the original policy for as long a period of time that the cash values will purchase

question

In reference to the standard medicare supplement benefits plans, what does the term standard mean

answer

all providers will have the same coverage options and conditions for each plan

question

which of the following entities established the DO not call registry

answer

the federal trade commission

question

in health insurance, if a doctor charge 50 more than what the insurance proves considers usual customary....

answer

is not covered

question

all of the following are characteristics of a group life insurance plan except

answer

there is a requirement to prove insurability on the part of the participants

question

if a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply

answer

5 days

question

a guaranteed renewable health insurance policy allows the

answer

policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class

question

which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover premium amount

answer

universal life

question

intended to provide coverage on a date earlier than the date of the issuance of the policy

answer

conditional receipt

question

which of the following is true regarding a waiver of a surrender charge on an annuity contract

answer

the change may be waived if the annuitant is confined to a long term care facility for at least 30 days

question

what type of annuity guarantees to pay an income to the annuitant each year as long as he lives, and upon death the annuity will refund the remaining payments to a beneficiary

answer

installment refund annuity

question

in group description drug plan, the insured typically pays what amount of the drug cost

answer

copayment

question

which of the following riders would NOT increase the premium for a policy owner

answer

impairment rider

question

what documentation express authority to an agent

answer

agents contract with principle

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