A policyowner is allowed to pay premiums more than once a year under which provision?
Mode of Premium
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?
Entire cash surrender value is taxable
The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)
Accidental Death and Dismemberment rider (AD&D)
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Employee
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a
$25,000 individual whole life policy
What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?
Primary Insurance Amount (PIA
Which plan is intended to be used by a sole proprietor and the employees of that business?
Keogh Plan". A Keogh Plan may be used by a sole proprietor only if the employees of the business are included.
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured?
PPO
The provision in a health insurance policy that interrupts premiums being paid to the insurer while the insured is disabled is called the
Waiver of Premium
The underwriting process involves all of these EXCEPT for
Policy loan
Which of the following are NOT managed care organizations?
Medical Information Bureau (MIB
Which statement regarding a Key Employee Life policy is NOT true?
The beneficiary is named by the key employee
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the
policy proceeds
An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A
Consideration clause
Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?
The maximum amount considered eligible for reimbursement by an insurance company under a health plan
Which of these are NOT an example of a Nonforfeiture option?
Life Income
Which of the following statements BEST describes the intent of a Coinsurance clause in a Major Medical policy?
Discourages overutilization of the insurance coverage
When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?
Void the policy only if it is discovered during the Contestable period and proven to be material
Which type of provider is known for stressing preventative medical care?
Health Maintenance Organizations (HMO's)
Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?
Variable Life
What type of life insurance are credit policies issued as?
Term
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised, based on investment performance
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
policyowner
The difference between group insurance and blanket health policies is
Blanket health policies do not issue certificates
All of these are characteristics of an Adjustable Life policy EXCEPT
face amount can be adjusted using policy dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value?
20-pay life
Which of these characteristics is consistent with a Straight Life policy?
Premiums are payable for as long as there is insurance coverage in force
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
S is covered by a whole life policy. Which insurance product can cover his children?
Child term rider
Under the Unfair Trade Practice law, agents may be found guilty of defamation if they make a false statement that is intended to
malign another insurance company
An insurance company that publishes misleading information about insurance coverage may be found guilty of
false advertising
Inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance is
twisting
All of the following actions are considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
Replacement regulations apply to which of the following types of contracts?
Ordinary Life
All of the following statements about health coverage for physically handicapped dependents of insureds are correct EXCEPT that the dependent must
have been over ten years of age when the handicap was incurred
Which of these Nonforfeiture Options continue a build-up of cash value?
Reduced Paid-Up
All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT
Interest Only
Which of these is NOT a characteristic of a Health Reimbursement Arrangement (HRA)?
Employee funds the HRA entirely
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
Fixed Deferred
The incontestable clause allows an insurer to
contest a claim during the contestable period
J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?
Reinstatement provision
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the
Insuring clause
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
Evidence of insurability is required when the option is exercised
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised, based on investment performance
Term insurance has which of the following characteristics?
Expires at the end of the policy period
A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as
Variable Life
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
Which of these life products is NOT considered interest-sensitive?
...
A life insurance policy that provides a policyowner with cash value along with a level face amount is called
Whole life
A characteristic of Preferred Provider Organizations (PPOs) would be:
Discounted fees for the patient
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?
Issue the policy with an altered Time of Payment of Claims provision
M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her est
earned, but unpaid benefits
All of the following statements about Major Medical benefits are true EXCEPT
Benefits have no maximum limit
Which of the following statements is CORRECT about A & H advertisements?
Insurance companies are responsible for the accuracy of testimonials
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Variable Universal Life
How does an indexed annuity differ from a fixed annuity?
...
All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT
...
All of these statements concerning Settlement Options are true EXCEPT
Only the beneficiary may select
All of these statements about Equity Indexed Life Insurance
...
Which of these life products is NOT considered interest-sensitive?
...
Which of these characteristics is consistent with a Straight Life policy?
...
The difference between group insurance and blanket health policies is
...
N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as
...
If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best desribes this policy is called
...
An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to
...
Which of these is NOT a type of agent authority?
...
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured?
...
An insurance company can usually contest the information contained in an accident and health application for two years from the date that the
...
The signed document that starts the Free Look period is the
...
Making an unfair comparison of two policies is defined as
...
How does an indexed annuity differ from a fixed annuity?
...
All of these statements concerning Settlement Options are true EXCEPT
...