Worksheetsexam part 2
Total questions: 67
Worksheet time: 34mins
an insured completes an application and the producer submits it to underwriting. the underwriter issues the policy. what is still needed for this to become a legal contract ?
acceptance
money
legal duty
offer
k has a disability income policy providing coverage until age 65, but it includes a provision which allows the insurer to adjust rates based off of her class ranking. what is most likely renewability option ?
interim
guaranteed renewable
cancelable
noncancelable
a medicare supplement policy must cover which of the following :
hospital services
hospice services
physician services
home care services
the type of contract that does not pay death benefit, but only returns principle upon death, would be best described as :
annuity
universal life
adjustable life
whole life
a pre- authorization form is most likely required by which type of organization?
medical care organization
health maintenance organization
managed care organization
preferred provider organization
an hr-10 plan is commonly know as which plan ?
401k
403b
simple ira
keogh
all of the following scenarios dictate when an agent may lose their license except
embezzling money form an insurer
writing threat letters to the commissoner
twisting
selling insurance with a non- resident license
which of the following is true about a producers duty for collecting premiums ?
funds may be held in an escrow account
funds may be held in a general account
funds may be comingled between accounts
funds may be held inconsequentially
changes to a policy are covered under which clause in a contract ?
nonforfeiture clause
entire contract
beneficiary clause
riders
a father is going to purchase a term a life policy on his 18 year old son. which of the following signatures are required ?
the father and mother
the father , mother ,and son
the father and son
the father only
if a producer submits a signed application along with an unsigned check, what must the insurer most likely do ?
send all documents back to the agent
issue the policy regularly
void the policy
complete underwriting but require payment and a statement of good health at the time of delivery
when two people are divorced, under the coordination of benefits clause, which policy will cover the child ?
the state paying child support
the state
the friend of the parent with custody
the parent with custody
which dividend option on a whole life policy allows for an annual payment to the insured ?
reduced paid up
installment refund
cash payment dividend
one year term option
a policy that may cover all of the passengers on an airliner would be know as :
health maintenance organization
basic hospital
blanket accident
critical illness
which of the following is a characteristic of term?
endows at specific age
ceases at end of time period
coverage for life
retirement income
which of the following is a limited pay policy ?
straight life
renewable term
life paid up at 65
universal life
which of the following is true about medical supplement and long term care ?
high deductibles
30 day free look period and guaranteed renew ability option
no medical underwriting
30 day free look period and noncancellable renew ability option
a group insurance contract will have the coordination of benefits provision. there is a specific purpose for having this provision, what is that specific purpose ?
to protect the insurer from paying claims if the insured has another group health contract in force
to protect insureds and ensure benefits are paid
it ensure commissions are paid to agents timely
to protect the insurer from like minded people purchasing insurance
an applicant must sign an application for insurance for which purpose ?
to bind the insurer to the risk
to attest that answers are guaranteed to be true and are considered warranties
to agree that the insured filled out the application
to attest that answers are to the reasonable best of their knowledge and are considered representations
a long term care extra expense policy will pay for which of the following services ?
managed
custodial
major
preventative
under a group voluntary long term care plan, which of the following statements is considered to me the most accurate
benefits will likely be lower than that of an individual policy
premiums will likely be higher than that of an individual policy
benefits will likely be higher than that of an individual policy
premiums will likely be lower than that of an individual policy
which of the following must be given to a medicare supplement purchaser ?
commission schedule
government contract
illustration
outline of coverage
xyz company purchases key-person insurance on employee M to cover training cost. what of the following is true ?
XYZ company names M's family as beneficiary
M is the applicant and the insured of the policy
XYZ company is the applicant
M is able to name the beneficiary
the commissioner of insurance investigates an hmo for which reason ?
no investigations are ever needed
determine the trust beneficiary of the hmo
schedule claims
confirm the solvency of the hmo
which of the following best describes a contract written on a "take it or leave it " basis?
unilateral
adhesion
conditional
aleatory
a retirement account that can be coupled with any employer sponsored retirement account would be considered :
keogh
simple 401k
ira
403b
a pre - authorization form is which part of managed care ?
a case management review
concurrent review
prospective review
indemnity review
x has term life insurance of 10,000 and an accidental death rider of 10,000. x has been diagnosed with terminal cancer and succumbs to the illness 6 months later. how much will x's beneficiary receive?
40,000
0
20,000
10,000
which of the following has investment components ?
fixed universal life
variable universal life
straight life
adjustable life
a state -issued document empowering an insurance company to become an admitted insurer is called
certification of acceptance
certification of authorization
certificate of authority
certificate of admittance
under the entire contract provision in regards to an in force policy when the insurer wishes to change items in the contract, what will most likely occure ??
the insured arbitrarily policy changes
changes may only be made by a producer
the policy may not be changed
changes may only be made on a triannual basis
when an agent is boycotting an insurer, this is considered?
unfair competition practices
rebating
unfair claims settlement practices
fraud
which of the following would be needed in order for an insurer to pay a claim
risk
loss
hazard
peril
x's employer has noticed an increase in her experience rated plans premiums this year. in response x's employer has raised the health plans deductible to $2,500. which type of employee funded roll-over account would allow for savings toward the deductible up until 65 ?
consumer driven health plan
health reimbursement account
health savings account
flexible spending account
an absolute assignment can be best described as ?
transferring a policy
a temporary transfer
a two way transfer
one way transfer
a person in hospice could receive which of the following ?
antibiotics
immunizations
preventative care
pain medicine
in which portion of the contract would an insured find the benefits covered and not covered as well as the scope of coverage
grace period
time payment of claims
insuring clause
consideration clause
N and M are identical twins with the same job . when n applied for health insurance his premium was set at $200. M applied for the same health plan but was charged a higher amount of $300 which the insurer based the up charge due to one of them being married . what is the insurer guilty of ?
unfair claim practices
unfair trade practices
nothing
unfair privacy practices
which type of plan has a corridor deductible after basic benefits are exhausted but before coinsurance begins ?
long term care
hospital indemnity
major medical
disability insurance
all of the following are unfair claim settlement practices on an insurers part except
denying a claim without a good reason stated in the letter
compromising the payment of a claim if fraud or illegal acts are suspended
delaying payment of a claim due to market rates
arbitrarily denying a claim
an insured has a 20 pay whole life policy in the amount of $20,000 with an accident and dismemberment rider that pays double indemnity. the insured died due to cancer, what amount will the beneficiary receive ?
$60,000
$0
$20,000
$40,000
which of the following is illegal ?
writing your own insurance policy
only insuring for family
insuring multi-faceted companies
explaining policy provisions
an ex-employee who has exhausted COBRA coverage and chooses to convert to individual coverage, would not have to do which of the following
apply for federal subsides
complete medical underwriting
add the benefits onto a tax form
ask the employer to pay premiums
which type of assignments is best suited for a bank loan ?
collateral assignment
absolute assignment
assignment
impending assignment
what is true about section 125 plan if the employee elects more coverage than the employer pays for ?
the coverage is void
the employer would pay the difference
the employee would pay the difference
the insurer would reduce benefits
which rider will allow the insured to add their child onto the policy
child term rider
third party ownership
payor benefit
guaranteed issue
a producer selling medicare advantage must state they are representative of whom
their own interest
the federal government
their respective insurer
the state goverment
if an insured is injured at work while covered by workers compensation, group health insurance and medicare which plan would be considers primary under the coordination of benefit clause ?
workers compensation
group health
medicare
none they share cost
a copy of the application plus the policy will constitute which of the following ?
settlement provisions
dividend option
mutual insurance company
entire contract
COBRA benefits would be terminated in which of these scenarios ?
the employee is eligible for medicaid
the employee has made on -time payments
the employee has filed too many claims
the employer has canceled the heath plan
which of the following is not true about the guaranteed insurability rider ?
the death benefit may be increased every 3 years
it allows for death benefit increases without medical exam
the death benefit may be increased after marriage or kids
it allows for death benefit increases with out higher premiums
what would be added to a policy that can cover higher risk hobbies?
specialized risk
long term care
impairment rider
illegal occupation
which of the following best describes where a foreign insurer is incorporated?
the laws of another country
the laws of another division in the usa
the laws of another state
the laws of texas
which provision will allow an insured to resume coverage should an insurer accept premium after the allotted time in a policy
reinstatement
grace period
free look
incontestability
a consumer driven health plan most likely has what ?
a flexible spending account
no deductible
a high deductible
a low deductible
the provision in disability insurance that describes a person will receive income in the event of a disability that qualifies them from doing a job for which they are trained for , educated for ,or experienced for is know as:
occupational disability
total disability
residual disability
own occupation disability
which of the following is true about the reinstatement provision included in an accident and health policy ?
back premiums may not be collected for past due premiums longer than 90 days
insurers allow up to 3 yrs to reinstate a health policy
coverage remains for 45 days after a premium is missed
accidents will have a 10 day probationary period before coverage
an insured has a convertible term policy with a death benefit of $400,000 and a cola rider attached to it. in 2011 the consumer price index rates inflation at 2%, how much will the insureds death benefit be in 2012?
$402,000
$392,000
$400,000
$408,000
n paid for his long term disability policy with a lump sum in 2006.in 2008,n died, which of the following most likely occurred ?
Benefits paid to the state reimbursement fund
absolutely nothing
unearned premiums are returned
benefits paid to his child's tertiary revocable
which of the following is found on an outline of coverage?
names of every insured at the insurer
the amount of cash value in a life policy
the agents commission
policy coverage and exclusions
if a person takes out a loan against a variable universal life insurance policy what will most likely happen next year ?
the policy will lapse automatically
the policy becomes modified endowment contract
the policy loses nonforfeiture status
interest will accrue on the loan
a 62 year old annuitant named H is looking to annuitize her annuity and receive benefits after retiring. she has settled on the life income settlement option, but is afraid that if she dies her benefits will completly cease. which life income settlement will provide payments to her survivors?
single life
period certain
joint life
lump sum
changes made to an FSA may only be made during which period?
never
open enrollment period
open annualization period
open accountability period
what option allows the insured to periodically increase benefit levels with out providing evidence of insurability ?
guarantee of insurability
annual increase
guarantee renewable
waiver of insurability
which of the following is true about the social security waiting period ?
benefits begin on the 5th month and are paid on the 3rd of the month
benefits are paid for only the first 6 mths
benefits will not begin until the 5th month and be paid on the 6th mth
benefits are paid after 1 yr of disability
medicaid is a form of what type of insurance ?
self-funded insurance
government insurance
blue cross blue shield plan
state facilitated coverage for disabilities
which of the following best describes a term policy ?
cash value growth
temporary coverage
refund of premium
permanent coverage
