What is the cost of coverage based on for group life insurance?
the average age and the ratio of men and women
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
decreasing term
Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?
occupation
Which of the following would be required to become licensed as an insurance producer?
a customer service representative who solicits no more than one policy a year
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as
estate conservation
Who would be the insured in business disability insurance?
key employees
A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?
family term
All of the following are features of catastrophic plans EXCEPT
high premiums
All of the following are true of annually renewable term insurance EXCEPT
proof of insurability must be provided at each renewal
Which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed with a terminal illness that will result in death within 2 years?
living needs rider
When an insured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when
the insurance company accepts the risk
A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
coercion
What type of an interest rate is guaranteed in universal life policies?
contract interest rate
Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?
10 days
Carlos's health insurance policy benefits according to a list which indicates the amount that is payable under each type of covered treatment or procedure. Carlos's policy provides benefits on a
scheduled basis
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
if an applicant is declined for an insurance policy, he or she has no right to know what was in the report
Which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs?
term insurance
An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
twisting
If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?
prior to performance of the test
A producer's license must be renewed
every 2 years
Agents may be found guilty of defamation if they make false statements that are intended to
maliciously criticize another insurance company
Medicare Part A services do NOT include which of the following?
private duty nursing
A person has a history of DUIs. To his insurer, this presents what type of hazard?
morale
Regarding health insurance, all of the following are tax-deductible EXCEPT
employee paid group disability income
An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA
within 60 days
A producer in another state wants to become a producer in PA. The other state gives the same privileges to PA producers wanting to be licensed in that state as it does its own producers. What is this called?
reciprocity
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will
continue to increase
Which of the following does NOT need to be included on the first page of a Medicare supplement policy?
premium rates
Under the mandatory uniform provision "Notice of Claim" written notice of a claim must be submitted to the insurer within what time parameters?
within 20 days
A medicare supplement plan must have at least which of the following renewal provisions?
guaranteed renewable
Annuities certain limit the amount laid by the annuity to a certain fixed
period or fixed amount
Which of the following is true regarding pure life annuity settlement option?
it provides the highest monthly benefit
Which of the following is NOT a characteristic of a managed care plan?
risk retention
Which of the following would be TRUE of both the fixed period and fixed amount settlement options?
both guarantee that the principal and interest will be fully paid out
An individual was denied coverage under Social security because his disability did not meet the strict definition of total disability used by social security. Which of the following would provide disability income coverage?
SIS rider
What is the most common name for a single policy that is designed to insure two or more lives with a standard premiums and that pays the death benefit upon the first death?
joint life
An insured recently underwent surgery related to a specified disease. How much can her specified (dread) disease policy pay for this expense?
$3,500
Which of the following meets the insured's personal needs, and is provided by nonmedical personnel?
custodial care
John and Joyce, joint beneficiaries, were to receive the proceeds of their fathers life insurance policy as joint life with 10 year term certain. If John dies after they had received proceeds for 7 months, what will Joyce receive?
benefits for the next 9 years and 5 months