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PRACTICE EXAMS
Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? - CORRECT ANSWERS ✅Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender. Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as thereafter as is reasonably possible? - CORRECT ANSWERS ✅Notice of claim. When will a policy pay on a UCR basis? - CORRECT ANSWERS ✅When particular benefits are not listed on a payment schedule. All of the following are non-forfeiture options EXCEPT - CORRECT ANSWERS ✅Cash dividend option. What happens when the lifetime maximum benefit limit has been reached? - CORRECT ANSWERS ✅The insured will pay all of the remaining medial costs for as long as the policy is in force.
PRACTICE EXAMS
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)? - CORRECT ANSWERS ✅The producer. What is the waiver of premium provision? - CORRECT ANSWERS ✅In a long term care contract, the premium is waived after the insured has been confined for a specific period of time. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while? - CORRECT ANSWERS ✅Committing a misdemeanor Which is a disadvantage to a flexible premium annuity? - CORRECT ANSWERS ✅The actual amount of the annuity benefit cannot be determined in advance. What does coninsurance mean? - CORRECT ANSWERS ✅The insurer and the insured share expenses over the deductible. Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed? - CORRECT ANSWERS ✅The insured has 90 days from the date of loss to provide proof of loss.
PRACTICE EXAMS
Which of the following refers to how often a premium is paid? - CORRECT ANSWERS ✅Mode What is the return of premium rider? - CORRECT ANSWERS ✅An increasing amount of term insurance that always equals the total of premiums paid up to the current point. What does first dollar coverage mean? - CORRECT ANSWERS ✅As soon as covered medical expenses are incurred, the policy begins to pay. When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial: - CORRECT ANSWERS ✅2 year period All of the following are required signatures on a life insurance application EXCEPT? - CORRECT ANSWERS ✅The minor in a juvenile policy. What is the purpose of Stranger-originated life insurance (STOLI)? - CORRECT ANSWERS ✅The policy is originated primarily or solely for the purpose of resale.
PRACTICE EXAMS
What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application? - CORRECT ANSWERS ✅The applicant and possibly the agent initial any changes made. What specific new procedures does the USA Patriot Act require of insurance program? - CORRECT ANSWERS ✅Establish an anti-money laundering program. Which of the following occurs immediately after the application is submitted and the initial premium paid? - CORRECT ANSWERS ✅The underwriting process begins. A consumer report used to determine eligibility for insurance may include all of the following EXCEPT? - CORRECT ANSWERS ✅Medical Underwriting exam. Why are insurance policies considered conditional contracts? - CORRECT ANSWERS ✅Certain conditions need to be met to make the contract legally enforceable.
PRACTICE EXAMS
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT? - CORRECT ANSWERS ✅The treatment procedures that are covered by the policy. How do warranties differ from representations? - CORRECT ANSWERS ✅A warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge. In noncontributory plans, which percentage of eligible members must participate? - CORRECT ANSWERS ✅100% Managed care plans increase efficiency by all of the following means EXCEPT? - CORRECT ANSWERS ✅Transferring the management of costs to the insureds. All of the following are tax qualified retirement plans EXCEPT? - CORRECT ANSWERS ✅Section 529 plan. Which of the following is characteristic of a non-qualified plan? - CORRECT ANSWERS ✅Plan does not meet federal guidelines for tax benefits.
PRACTICE EXAMS
Under which situation must insurable interest exist between the applicant and insured at the time of application? - CORRECT ANSWERS ✅When a third-party application names themselves beneficiary. The group conversion option is allowed for all of the following EXCEPT?
- CORRECT ANSWERS ✅During the annual benefits enrollment period. In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness? - CORRECT ANSWERS ✅The individual's policy pays first, the spouse's policy pay the remaining up to coverage amount. Why is rehabilitation considered worthy of federal help under workers' compensation? - CORRECT ANSWERS ✅It reduces insurance losses and helps regain the worker's dignity. When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax? - CORRECT ANSWERS ✅When the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year.
PRACTICE EXAMS
Which of the following policy types is considered double indemnity? - CORRECT ANSWERS ✅Accidental death Which of the following is true about a decreasing term life policy? - CORRECT ANSWERS ✅The face amount reached zero at policy expiration. Which of the following lists the three common types of permanent individual life insurance? - CORRECT ANSWERS ✅Variable Life, Whole Life, Universal Life Which types of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age? - CORRECT ANSWERS ✅Renewable term Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness? - CORRECT ANSWERS ✅Disability income insurance Which of the following is TRUE of an equity-indexed annuity? - CORRECT ANSWERS ✅It has a guaranteed minimum interest rate.
PRACTICE EXAMS
Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? - CORRECT ANSWERS ✅Major medical insurance. Which of the following is the most common method to supplement Medicare coverage? - CORRECT ANSWERS ✅Coverage offered by private insurers. Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses? - CORRECT ANSWERS ✅Stop Loss Limit A basic vision care package includes all of the following EXCEPT? - CORRECT ANSWERS ✅Safety glasses In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses? - CORRECT ANSWERS ✅Flexible Spending Account (FSA) Current assumption whole life policies are sensitive to which of the following? - CORRECT ANSWERS ✅Interest rates
PRACTICE EXAMS
Which of the following is TRUE for a flexible premium annuity? - CORRECT ANSWERS ✅The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount. All of the following are characteristics of COBRA EXCEPT? - CORRECT ANSWERS ✅Change in medical privacy procedures. Which is the primary purpose of Health Reimbursement Accounts (HFAs)? - CORRECT ANSWERS ✅To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax. Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies? - CORRECT ANSWERS ✅Joint Life Annuity All of the following are characteristics of variable whole life EXCEPT? - CORRECT ANSWERS ✅There is no guaranteed minimum death benefit.
PRACTICE EXAMS
Which problem was Universal Life insurance designed to address? - CORRECT ANSWERS ✅Low interest rates during periods of high inflation. Which of the following is covered by a dread disease policy? - CORRECT ANSWERS ✅Illnesses that do not occur frequently but incur significant costs when they do occur.
