Accident and Health policies include several uniform provisions, one of which is called the "claim form" provision. An insurer is required to send a proof of loss form to an insured within what period of time after notice of loss has been provided by the
15 days
If an insurance company issues a health insurance policy based upon an incomplete application, it has unknowingly engaged in a:
waiver
Disability income policies generally include a waiting period which functions like a deductible. Which of the following is a primary purpose of a waiting or elimination period when it appears in a long-term disability policy?
To permit an insurer to lower the cost of everyone's benefit
A life insurance policy is comprised of several provisions and clauses. What provision allows the insurer to void the contract if it finds during the initial two years that the policyowner engaged in material misrepresentation?
Incontestable clause
A producer collecting premiums from clients for his own personal use is a:
Larcenous activity
There are several classes of insurers. Which of the following best defines a domestic insurer?
An insurer authorized to conduct insurance business in this state
The maximum amount of expenses that an insured is responsible for before a major medical plan pays 100% of remaining expenses is known as the:
Stop Loss Limit
The Superintendent or Commissioner of Insurance may place on probation, suspend, revoke or refuse to issue or renew a producer's license for each of the following acts, EXCEPT:
Failing to meet an insurer's production requirements
Which of the following is not automatically included in a life insurance contract?
Waiver of premium
An employer is mandated to offer COBRA benefits as long as he or she employs:
20 or more employees
Each of the following is a requirement that must be present in long-term care coverage in order for the plan to be qualified, EXCEPT:
It must include a cash surrender value in case benefits are never used
The purpose of an insurance application is to:
Find out facts about the applicant
Each of the following is true regarding optional provisions available in a health insurance policy, EXCEPT:
Illegal occupation provides coverage if an insured is injured while committing a felony
An insurance producer may engage in each of the following actions, EXCEPT:
Approving applications
Which of the following riders prevents a policy from lapsing if the insured becomes disabled for more than six months?
waiver of Premium
A surplus lines insurance carrier is also referred to as a:
Non-Admitted Insurer
Which of the following health coverage providers requires an individual to "spend down" their income or assets before they are eligible for coverage ?
Medicaid
A salary continuation plan is also referred to as a:
Non-qualified deferred compensation plan
Wally completes a life insurance application on Ben and collects the initial premium. A conditional receipt is provided to the applicant. If underwriting approves the application without requiring a medical exam, when will coverage become effective?
As of the date of the receipt
Any insurer, agent or solicitor engaging in rebating will be subject to:
License suspension or revocation
Each of the following factors is of primary importance when underwriting life or health insurance, EXCEPT:
The marital status of the proposed insured
The Medical Information Bureau is a clearing house of information cataloguing an applicant's responses with regard to his or her insurability that appear on a life insurance application. Which of the following best describes the purpose of the MIB?
The MIB allows an insurer to check application information against the health history of the proposed insured
Except in cases of fraud, what life insurance policy provisions limits an insurer to contest application information for the initial two years of the contract?
Incontestable clause
Each of the following is excluded under an individual long-term car insurance policy, EXCEPT:
Institutional care received within the U.S.
The payment of claims provision states that the insurer may only pay benefits under an A&H policy to which of the following?
An insured
Which of the following statements is true with regard to limited health policies?
Limited policies must state clearly what coverage they provide
Which statement listed is false when discussing policy illustrations?
Only guaranteed elements of the contract must be listed
In the event a Long Term Care policy is replaced, a Notice Regarding Replacement form must be provided to and signed by the applicant at what time?
At time of policy application
The Fair Credit Reporting Act requires that a notice to the applicant be included and a premium receipt provided to a life insurance applicant. This notice explains that:
The insurer may conduct an investigative consumer report at its discretion
Insurance companies use age 100 to calculate life insurance death benefits because:
They assume everyone will have died by that age
Which of the following policies is best suited to provide funds to pay for taxes due and other administrative expenses with regard to a deceased's estate?
Survivor Life insurance
An underwriter may accept a risk but charge an extra premium for a:
Substandard Risk
Which of the following is not a responsibility of a field underwriter?
Issue a policy
Each of the following statements is true with regard to the modifications made to an existing life insurance policy, EXCEPT:
The change must be countersigned by the agent
All of the following provisions are optional uniform provisions, EXCEPT:
Grace period
Statements made by an applicant on a health insurance application are contestable by an insurer for an initial period of:
Two Years
A producer who attempts to intimidate a consumer with regard to an insurance transaction has engaged in:
Coercion
If a life insurance policy becomes a modified endowment contact, it may revert back to an ordinary life policy within:
It is not allowed to revert back to an ordinary life contract
All of the following may be ordered by an underwriter when there are questions about a proposed insured's health, EXCEPT:
An interview with the Attending Physician
An Accident & Health insurer pays a claim and later finds that the insured's injury was the result of engaging in a felony. What will the insurer do?
Attempt to recover the claim payment
How does the cash value of a universal life insurance policy accumulate?
Tax-deferred
If an individual makes a payment to fund an annuity contract today and the benefit commences thirty days later, which of the following contracts has been purchased?
Immediate annuity
Which of the following is not considered to be one of the Required Uniform Accident and Health policy provisions?
Free-Look Provision
The main purpose of the underwriting department is?
to review applicants
Paul applies for a health policy on February 5th. Underwriting approves the application on February 12th. The policy is delivered by the agent on February 15th. When does the free-look period end?
Feb 25th
Which of the following policies would be best suited
adjustable whole life
Two partners buy life insurance on one another. Five years later the partnership is dissolved. Insurable interest no longer exists but no changes are made to the policies. Which of the following will occur if one of the partners dies?
the claim will be paid
There are twelve required uniform provisions that must appear in all health insurance policies. What provision states that a proof of loss form must be provided to an insured within 15 days of the notice of loss?
claim form provision
Dick owns a whole life policy with a face amount of $200,000. He has added an accidental death rider with the same face amount for an additional premium. A second rider has also been added which will prevent the policy from lapsing if Dick becomes disable
waiver of premium rider
In some states, the Commissioner of Insurance is appointed by the Governor. Which of the following are powers or duties of the Commissioner?
issues licenses to producers
The fact that an Accident & Health policy premium payment of $850 must be paid each year in return for coverage is stipulated in which of the following sections of the policy?
Insuring Clause
Which of the following policy provisions protects an insured against a small claim that may be present prior to coverage being provided under a new health insurance policy?
Pre-existing conditions provision
Which of the following would not be considered rebating?
A producer offers an advantageous premium payment plan to an insured.
Mutual insurers issue participating life insurance policies. One dividend option available to a whole life policyowner is called "paid-up additions." What does it provide to the policyowner if selected?
Increased cash values
Which of the following is true with regard to the taxation of a whole life insurance policy?
The death benefit is tax free and the cash value buildup is tax-deferred
All of the following are factors which affect a life insurance risk, EXCEPT:
Unearned income. (age occupation and family history are factors)
Which of the following involves the right of an insurer to recover the amount of benefits paid to a claimant?
subrogation
Which of the following accurately describes an equity indexed annuity?
It is a form of non-variable annuity
Rhonda purchases a health insurance policy that is characterized as nonoccupational. This type of insurance contract would cover each of the following contingencies, EXCEPT:
Rhonda is hurt at work
Which of the following insurers is formed without capital stock and may share its surplus with policyholders?
a mutual company
Engaging in an unfair marketing practice may result in a suspension of a producer's insurance license. Which of the following is an unfair or deceptive marketing practice?
false advertising
When an individual receives a qualified distribution from a Roth IRA, the benefit received is:
tax free
Which of the following statements best describes the entire contract provision?
The entire contract provision states that the whole life contract consists of the policy, a copy of the original application and all other amendments, endorsements or riders
Brad buys a permanent life insurance policy that has a fixed premium for five years. In year six, the premium increases to a higher amount and stays level for life. What type of life insurance policy did Brad purchase?
modified life
A stock insurer is one that is owned by its shareholders and issues non-participating policies. A mutual insurer, by definition, is owned by its policyholders. Therefore, a stock and mutual insurer differ according to:
What entity owns them
Once a reinstatement application is completed by an insured, the insurer must inform him or her whether or not reinstatement has been approved within:
45 days
Which of the following is true with regard to the replacement of an individual long-term care insurance plan ?
Any pre-existing condition limitation in the new long-term care plan is waived
AD&D coverage provides all of the following benefits, EXCEPT:
Benefits for loss of sight due to an illness
An insurer engaging in an unreasonable restraint of trade has committed which of the following unfair practices?
Coercion or Boycott
Each of the following is an unfair or illegal sales practice, EXCEPT:
disclosure
The annuity phase is also referred to as which of the following?
the Pay Out Period
Mutual insurers issue participating policies which in turn may pay dividends. Which of the following is a dividend option provided to the policyowner of a "par" policy?
Reduce the premium
A life or health insurer that underwrites risks properly and according to company guidelines will be more profitable than an insurer that does not engage in such activity. What is the primary purpose of underwriting?
To avoid adverse selection
according to the notice of claim mandatory provision, the policyowner must furnish the insurer with a notice of claim within how many days after a loss occurs?
20 days
A producer may have his or her insurance license suspended for engaging in an unfair sales practice or a failure to comply with other insurance regulations. Which of the following would cause a producer to suffer a license suspension.
Failure to pay a child support obligation
In order for a contract to be legal, there must be present a valid offer and acceptance. Which of the following illustrates an acceptance of an offer to contract for insurance?
policy delivery
Long-term care insurance coverage may be secured through each of the following, EXCEPT:
A rider added to a disability income plan
Routine dental care and loss due to intentionally self-inflicted injuries are identified in which of the following health insurance policy sections?
Exclusions
Ray has a life insurance policy with a waiver of premium benefit. If he becomes disabled for a lengthy period of time, the insurer will begin to waive the premium in which of the following months?
The seventh month following the onset of the disability
An insurer may be classified according to domicile or ownership. Stockholders sharing in the profits and losses of an insurer best describes which of the following?
Stock Company
Mode
Which of the following best describes the method selected by a policyowner to pay policy premiums?
What often occurs with the deductible for preventative dental care?
It is waived by the insurer
An accident and health policy that may never be cancelled and its premium may never be increased best describes:
Non-cancelable
A policy is purchased covering a 14-year-old child. The premiums for the policy are waived when the child's parents are killed in an accident. Which of the following allowed for the waived premium?
Payor Rider
All of the following statements are true regarding the reinstatement provision in a health insurance policy, EXCEPT:
Reinstatement may occur without application
Which of the following health insurance policy provisions allows an insurer to deny a claim that does not occur during the policy period?
Insuring Clause
Mortgage redemption life insurance
A whole life policy provides permanent insurance protection since it never needs to be converted. All of the following are types of traditional whole life insurance, EXCEPT:
Tim has a whole life policy with an assortment of riders attached. He is blinded in an accident and receives proceeds from one of the riders. Which of the following riders paid a benefit for his loss of sight?
Accidental dismemberment rider
Group plan sponsors may include all of the following, EXCEPT:
Self-employed individuals
Which of the following is designed to protect life insurance beneficiaries against the insolvency of an insurer?
Guaranty Association
To be eligible for coverage under Part C of Medicare, an individual does not have to prove that he or she is insurable if enrollment occurs during what period of time following the attainment of age 65?
6 months
Art and Bob are business partners. They buy $500,000 of life insurance on each other to protect the business in case one of them dies. Eight years later the partnership dissolves since Bob leaves the business and begins working for another company. Art co
Art
In most States, domestic insurers must be examined or audited:
At least Once Every 5 years
ividends paid by a life insurance policy are tax-exempt. Each of the following are true regarding dividend options, EXCEPT:
The dividend is subject to taxation as ordinary income if taken in cash
According to the time of payment of claims provision, insurers must provide payment of disability income benefits not less frequently than:
Monthly
Initial agent underwriting is called:
Field Underwriting
Which of the following accident and health provisions allows an insurer to deny a claim if it finds during the first two years of the contract that the insured engaged in a material misrepresentation?
Time limit on certain defenses
Term life insurance may be converted at any time without proof of insurability. All of the following statements pertaining to the conversion privilege of group term life insurance are correct, EXCEPT:
An insured employee must convert to the same type of term life coverage as was provided under the group plan
The primary purpose of the Medical Information Bureau (MIB) is to:
discover misrepresentation and fraud
Accident & Health policies generally include a renewability provision. Which of the following statements best describes a cancelable accident and health insurance policy?
The policy may be cancelled by the insurer at any time
The Taxpayer Act of 1997 resulted in the creation of a Roth IRA. Each of the following are characteristics of a Roth IRA, EXCEPT:
Contributions are tax-deductible
Each of the following is a power and duty of the Superintendent or Commissioner of Insurance, EXCEPT:
Prosecutes producers for criminal activity
Medicare Supplement policies may not include a pre-existing condition limitation that exceeds:
6 months
Which of the following is the purpose of an accident and health policy's probationary period?
Allows an insurer to deny small pre-existing claims
A Point of Service plan (POS) is a hybrid arrangement that combines the aspects of a traditional HMO and a PPO. Such plans allow treatment inside or outside the "network". If the POS requires that a member insured provide notification of treatment outside
the gatekeeper
Which of the following provisions places limitations on an insurer's or producer's authority to waive a provision in an insurance contract?
entire contract provision
An accidental death and dismemberment rider (AD&D) may be added to a disability income policy or purchased as a separate contract. The death benefit paid by this rider is known as the:
Principal sum
An annuity is not used for which of the following reasons?
to provide death protection
Which of the following policy options allows a policyowner to effectuate a single premium purchase?
Reduced paid-up insurance
There are several types of insurance licenses available in this state. Which of the following licenses allow the holder to provide insurance advice for a fee as long as the fee is in writing prior to the work being performed?
Insurance consultant or adviser
A producer offering an item of value to a prospect in return for purchasing an insurance policy has engaged in:
Rebating
Tom's disability income policy has a 30-day elimination period and provides $2,500 per month for total disability. The policy also contains a partial disability rider. The insured is totally disabled for thirty days. Total disability benefits paid will be
$0
Federal and State death taxes must be paid within how many months of the decedent's death?
9 months
The Fair Credit Reporting Act states that an applicant for insurance must be notified:
Of any investigative report ordered by the insurer
Examination expenses incurred when the Commissioner decides to audit an insurer will be the responsibility of which of the following?
The insurer being examined
Which of the following riders does not provide a benefit for a living insured?
accidental death benefit
A premium receipt is provided to an applicant by the producer when an initial premium is collected at the time of application. Which of the following statements is true regarding a "Conditional Receipt"?
This receipt provides coverage on a date earlier than the issue date of the policy
Which of the following best describes the attempt by an existing life insurer or its agent to exchange or trade life insurance in force with a new policy?
replacement
A person applying for insurance intentionally misrepresents material facts in order to obtain an insurance policy. The insurer discovers the deceit ten months later after the policy has been issued. What action will the insurer take?
void the contract
When a producer passes a State examination for an additional line of insurance, which of the following will apply ?
The new line will be added to the existing license
Most long-term care policies, whether issued on an individual or group basis, include a guarantee of insurability. This benefit allows an insured to purchase additional amounts of benefit without:
proving insurability
In order for an insurance contract to be legal and enforceable it must contain four elements. One of these elements is called a consideration. A consideration is something of value that must be exchanged between the parties to the contract. Which of the f
Premium paid and application representations
Which of the following is a primary purpose of a Medical Information Bureau (MIB) report?
Allows insurer to avoid high risk applicants
Which of the following is NOT* a necessary underwriting tool to determine eligibility for insurance provided a premium was submitted with the application?
a statement of good health
Which of the following would make sure that coverage continues in the event of a premium lapse for more than the grace period?
Automatic premiums loan provision
The concept of "corridor" is most often associated with which of the following policies?
Universal Life
Which of the following best describes a life insurance policy with no cash value and increasing premiums over a period of time?
Term life
In order for an insurance policy to be legal, there must be a valid offer and acceptance present. The offer is usually made in which of the following instances?
When the application is submitted to the underwriting department
In most States, licensed producers must satisfy which of the following in order to maintain their insurance license?
Continuing education requirements
A short term disability policy usually has a benefit payout period of:
Less than 2 years