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Insurance Exam
Exam Practice
| Question | Answer |
|---|---|
| Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? | Life income |
| Kathy pays a monthly premium on her health insurance policy. How long is her grace period? | 10 days |
| An example of endodontic treatment is a | Root canal |
| Any transaction in which new life insurance is purchased and, as a result, the existing life insurance will be surrendered is called | Replacement |
| An insurer must submit all policy forms and applications to the Commissioner at least __ days before they can be used. | 30 days |
| HIPAA considers which of the following as "individually identifiable health information"? | A persons health claim information |
| David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision? | Unpaid provision |
| The open enrollment period for Medicare Supplements begins at age | 65 |
| If an insurer terminates a producer's appointment, it must notify the Commissioner within ___ days of the termination. | 30 |
| Written notice of a health (disability) insurance claim should be given to the insurer within __ days after the occurrence of any loss covered by the policy. | 20 |
| Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage? | integrated deductible |
| A change in an insurance application requires | an initial made by the applicant |
| What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? | representation |
| Which of these individuals would require continuing education? | Resident Producer |
| Rob has a benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits this description? | deferred compensation option |
| An insured was injured as an innocent bystander when someone committed a felony. The insurer is | liable for loss |
| A whole life insurance policy accumulates cash value that becomes | the policy loan value which the insured may borrow against |
| What may be the result of replacing an existing life insurance policy with a new one? | Surrender charge |
| How soon can the benefit payments begin with a deferred annuity? | A minimum of 12 months after date of purchase |
| In what part of an insurance policy are policy benefits found? | Declarations |
| What does the word "level" in Level Term describe? | the Face amount |
| Bob and Tom start a business. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Eventually, they retire and dissolve the | Tom |
| An Outline of ______ is required for long-term care policies and provides a brief description of the important features of the policy. | Benefits |
| When are group disability benefits considered to be tax-free to the insured? | when the recipient pays the premiums |
| Small employers who are sponsored by an insurer to provide group benefits to its employees are called | MEWA (multiple employer welfare association) |
| At what age will a person normally enroll with an insurance carrier under a Part C Medicare Advantage Plan? | 65 |
| The least expensive option to pay off a 30-year mortgage balance would be | decreasing term life |
| Refusing an insurance applicant because of marital status is an example of | illegal discrimination |
| Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? | Guaranteed insurability rider |
| An insurer may pay a commission in which of the following scenarios? | to a licensed producer who is appointed with the insurer |
| What is the purpose for having an accelerated death benefit on a life insurance policy? | It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill |
| What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? | Last Survivor Life insurance |
| Advertising regulations exist in order to | demonstrate full and truthful disclosures to the public |
| Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because | the MEC tends to be an investment vehicle |
| When a decreasing term policy is purchased, it contains a decreasing death benefit and | level premiums |
| A single premium cash value policy can be described as | a policy that is paid up after only one payment |
| Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid? | Individual |
| Field underwriting performed by the producer involves | completing application and collecting initial premium |
| The standard grace period for a life insurance policy sold in Washington is | 30 days |
| Which type of disability would be less than total impairment and equal to permanent impairment? | permanent partial disability |
| In which of the following processes will the insurer oversee the insured's hospital stay to confirm everything is going according to schedule and that the insured will be released as planned? | concurrent review |
| Which of the following statements is NOT true regarding a Critical Illness Plan? | Coverage is limited to a single devastating disease |
| Insurance companies determine risk exposure by which of the following? | Law of large numbers and risk pooling |
| Who assumes the investment risk with a fixed annuity contract? | the insurer |
| Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? | Assisted living |
| A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n) | nonforfeiture provision |
| A life insurance policyowner does NOT have the right to | revoke an absolute assignment |
| Distributions from a Health Savings Account (HSA) for qualified medical expenses are | tax-free |
| An individual insurance producer who allows his or her license to expire may, within ___ months from the expiration date, reinstate the same license without passing a written exam. | 12 |
| An example of naming a beneficiary by class would be | to the children born of my union with Ned Jackson |
| Premium mode is a term used to describe the | frequency of the premium payment |
| A dread disease policy is considered to be a type of | limited health insurance policy |
| Which of the following is an example of a producer's fiduciary duty? | recording receipts and remittance of premium due to the insurance company |
| A policyholder's unmarried child is incapable of self support due to a physical disability. The child is provided medical care coverage under the parent's policy | until policy termination with proof of incapacity |
| In an insurance contract, the element that shows each party is giving something of value is called | consideration |
| An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in | risk avoidance |
| Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year? | 100% of his health insurance costs can be deducted from his gross income |
| The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. | 1 |
| An attending physician's statement would be appropriate for which life insurance purpose? | at the request of the insurer to assist in underwriting decision |
| Under the subrogation clause, legal action can be taken by the insurer against the | responsible third party |
| In Washington, a Long-Term Care policy must be _______ renewable. | guaranteed |
| Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? | interest only |
| Producers must complete ___ hours of continuing education biannually. | 24 |
| What happens to the total amount of premium paid for an insurance policy when the payment frequency increases? | increases |
| A producer has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime? | US Attorney General |
| Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? | taxable income |
| A long-term care policy typically provides all of the following levels of care EXCEPT | acute care |
| A waiver of premium rider allows an insured to waive premium payments if the insured is | completely and permanently disabled |
| An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees? | 25 employees |
| The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? | implied |
| Fixed annuities provide each of the following EXCEPT | hedge against inflation |
| The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? | Insurable interest can be based on the love and affection of individuals related by blood or law |
| An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of | fraud |
| Index whole life insurance contains a securities component that acts as a(n) | Index whole life insurance contains a securities component that acts as a(n) |
| The _______ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant. | producer |
| This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes | the entire insurance contract between the parties |
| An advertisement for an insurance product may contain | the insurers name |
| What is issued to each employee of an employer health plan? | certificate |
| Which of the following unfair trade practices involves a producer who makes public, malicious statements about an insurer's financial condition? | defamation |
| Which of the following is NOT included under a health benefit plan? | hospital indemnity plan |
| What does the Group Life underwriting risk selection process help protect insurance companies from? | Adverse selection |
| Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy? | 31 |
| If an accident and health (disability) policy is reinstated after it had lapsed for nonpayment, there is a waiting period of ___ days before a claim covering sickness will be covered. | 10 |
| A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called | conditionally renewable |
| Medicare Part B covers | doctor's charges |
| The entire contract includes the actual policy and the | application |
| A partial surrender is allowed in which of the following life policies? | universal life |
| The Washington Life and Health ______ Association is used to rehabilitate insolvent insurers | guaranty |
| Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? | business overhead expense policy |
| What is the purpose of a Disability Income Benefit? | Provide money for living expenses |
| Which of the following is considered to be an event or condition that increases the probability of an insured's loss? | Hazard |
| The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule? | Long Term Care insurance premiums |
| What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? | Dread disease insurance |
| Which of these factors would an insurer consider when determining whether to accept a group life plan? | average age |
| During the accumulation period, who can surrender an annuity? | Policyowner |
| Over the course of a year, which premium payment mode is most expensive? | monthly |
| A ______ license may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer's business. | temporary |
| An insurer's ability to make unpredictable payouts to policyowners is called | liquidity |
| An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT | providing commission information to the applicant |
| Which scenario would most life insurance policies exclude coverage for? | An individual who has a hobby racing cars once a month |
| In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest? | Insurable interest can be established sufficiently by sentimental attachment alone |
| An example of replacement is | canceling a term life policy to buy a whole life policy |
| Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Which of the following is the likely result? | care is covered |
| Respite care is able to provide | temporary relief to the patient's primary caregiver |
| If the annuitant dies before the annuity start date, | the premiums paid plus interest earned will be given to the beneficiary |
| Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity? | temporary annuity certain |
| One role of the Commissioner is to | enforce state insurance laws |
| In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST | provide evidence of insurability to the insurer |
| Which of the following is a requirement for ANY change in an insurance application? | Change must be initialed by the applicant |
| Decreasing term life insurance is often used to | provide coverage for a home mortgage |
| Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this plan? | 0 |
| A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the | 'named living primary beneficiaries' "Per capita" is a method of life insurance distribution using total number of individuals. This means that all living members that are identified in the life insurance policy will receive an equal amount of the life in |
| In Washington, a Medicare Supplement policy must be _______ renewable. | guaranteed |
| Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this? | guaranteed insurability rider |
| An insurance applicant with a below-average likelihood of loss is typically considered to be a | preferred risk |
| Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium? | " 14 day waiting period / 10 year benefit period " The disability income policy with the lowest waiting period and longest benefit period would have the highest premium. |
| Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary? | interest only |
| Which of these will typically authorize treatment from a specialist? | gatekeeper |
| An annuity is primarily used to provide | retirement income |
| A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n) | association or labor group |
| An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called | Partial Surrender |
| In an insurance contract, the applicant's "consideration" is the | statements made in the application and the premium |
| A producer is meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics needs to be discussed with the client? | financial objective |
| A nonparticipating company is sometimes called a(n) | a stock insurer |
| An employee under a group insurance policy has the right to name a beneficiary and the right to | convert to an individual policy in the event of employment termination |
| Which type of multiple protection policy pays on the death of the last person? | survivorship life policy |
| The reinstatement provision in a health insurance policy is | mandatory |
| James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? | The death benefit paid will be what the premium would have purchased at the correct age |
| A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured | Prior to or at the time of signing the application |
| Prior to or at the time of signing the application | "defined contribution plan". A defined contribution plan is considered a tax-qualified plan. |
| An association operating solely for the benefit of its members and their beneficiaries is called a | Fraternal benefit society |
| Which of these would NOT be considered a presumptive disability? | Loss of a leg or arm |
| Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true? | the face and the premium will remain constant over the 10 year period |
| Which of these annuities require premium payments that vary from year to year? | Flexible premium deferred annuity |
| The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? | certificate of coverage and benefits |
| An insurer has a right to screen applicants for HIV in which of the following ways? | Blood test for HIV |
| An individual who has a contract with an insurance company to represent it is called a(n) | Producer |
| What amount will be paid under a policy where the insured misstated his/her age? | An amount the premium would have purchase |
| All of these are considered key factors in underwriting life insurance EXCEPT | Marital status |
| Which of these is likely to occur when life or health insurance is being applied for? | medical history from the insured may be reviewed and reported |
| Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? | Medicare in-hospital deductible |
| A closed network plan offers a primary physician copay of $25. If a subscriber chooses a primary care physician outside of the network, the subscriber will likely pay | 100% of the billed amount |
| Which of the following is an example of the insured's consideration? | a paid premium |
| A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the | reinsurer |
| What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? | no tax payment needed |
| A master contract and certificate of coverage can be found in which type of policy? | group |
| A Medicare Supplement policy can be cancelled by the insurer for | nonpayment |
| Health insurance involves two perils, accident and ____. | sickness |
| Benefits for a Medicare Supplement policy | must not duplicate Medicare benefits |
| The conversion privilege under a group life plan allows an employee to convert to a(n) | individual plan upon employment termination |
| Someone needing custodial care at home would require which type of coverage? | long-term care |
| A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) | guaranteed renewable policy |
| Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen? | fixed amount |
| The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is | The shorter the payment period, the higher the premium |
| A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment | indicates a preexisting condition |
| Maria the producer would like to advertise an annuity product on a highway billboard. Which of the following must be included in the advertisement? | her name |
| Which type of policy combines the flexibility of a universal life policy with investment choices? | variable universal life policy |
| Insurance producer Kelly offers an insured a $500 shopping card if an insurance product is purchased through her. What is this an example of? | rebating |
| Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must | be the same and the premium cannot exceed 102% |
| What is implied authority defined as? | Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties |
| A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) | partial surrender |
| Which of the following would be considered an underwriting duty of an agent? | completing all application and collecting initial premiums |
| Which of the following is a reinstatement condition? | Proof of insurability, One of the conditions required for an insurance policy reinstatement is proof of insurability. |
| All of these are valid options for an Adjustable Life Policy EXCEPT | A nonforfeiture option can be used to increase the death benefit |
| Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to its participants? | A MEWA is an arrangement where a group of employers pool their contributions together to purchase group health and other insurance benefits for their employees. By pooling their contributions together, these smaller employers are better positioned to offe |
| What percentage of a participant's income are group long-term disability benefit amounts typically limited to? | 60% |
| How do interest earnings accumulate in a deferred annuity? | tax-deferred basis |
| All of the following are included as part of a contract in the entire contract provision EXCEPT the | changes made by the producer |
| Which of these statements regarding the annuitant is CORRECT? | The annuitant's life expectancy determines the annuity payments |
| All of the following are considered appropriate uses of life insurance for business purposes EXCEPT | protecting the business by covering entry level employees with life insurance |
| In Washington, an insurance producer cannot sell, solicit, or negotiate policies for an insurer unless there is an agreement in place between the producer and insurer. This agreement is called a(n) | appointment |
| All of the following are functions of an insuring clause EXCEPT | Primarily describes the free-look period |
| An example of a primary care physician would be a(n) | internist |
| A Medicare Supplement policy must NOT contain benefits which | duplicate Medicare benefits |
| Within how many days must a rollover be completed in order to avoid being taxed as current income? | 60 |
| Which of the following would be a valid reason why a policy premium would be higher than the standard premium? | The insured does not meet established underwriting requirements |
| All of these are valid policy dividend options for a life insurance policyowner EXCEPT | accumulate without interest |
| Which of the following signatures is not required on an individual insurance application? | insurer |
| A disability elimination period is best described as a | time deductible |
| Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? | Universal life policy |
| ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is called | reinsurance |
| To be classified as a small employer in Washington, an employer must employ | 1-50 employees |
| Fraternal Benefit Society has each of the following characteristics EXCEPT | Exist for the benefit of its members |
| A rehabilitation benefit is intended to | prepare the insured to return to employment |
| A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs | from insurer to insurer and no cash is received by the policyowner |
| A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of $75. If the insured has previously met her deductible and receives a bill for $175, how much will the insurer pay? | 140 |
| A producer who is licensed in Washington but resident in another state is called a | nonresident producer |
| Which of these is NOT considered to be a purpose of an annuity? | Annuities are intended to create an estate |
| A Medicare Supplement policy's outline of coverage MUST include a(n) | description of policy benefits |
| Which of the following does restorative dental treatment cover? | Crowns |
| Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called? | Estate Conservation |
| Ambiguities in an insurance policy are always resolved in favor of the | insured |
| Which of the following is Medicare Part B also known as? | Medical insurance |
| Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this? | Child term rider |
| A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) | optional renewable clause |
| Which of the following is NOT information found in a life insurance buyer's guide? | How to take legal action against an insurance company |
| The Life and Disability Guaranty Association provides funds to carry out its powers and duties by assessing | member insurers |
| Shirley has a Medigap policy, which is designed to pay costs associated with | Medicare Parts A and B |
| An HMO that involves a partnership of physicians and other providers who practice out of a central facility is called a(n) | group HMO |
| Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a | Presumptive disability |
| People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called | adverse selection |
| Ron has a new employer and wishes to enroll in the company's group health plan. In determining whether his pre-existing health condition applies, Ron cannot have more than a ___ day gap without previous health insurance. | 63 |
| When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? | The family's financial objectives if the income earner were to die or become disabled |
| All of the following riders can increase the death benefit amount EXCEPT | Waiver of Premium |
| After a disability policy has been in force for ___ year(s), it is considered incontestable. | 2 |
| What enables applicants to compare different life insurance policies and helps them choose which policy is best for their needs? | buyer's guide |
| The premium for a Modified whole life policy is | lower than the typical whole life policy during the first few years and then higher than typical for the remainder |
| According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan? | March 23, 2010 |
| The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. The two plans are fee-for-service and | prepaid |
| What is involved when a life insurance policy has been backdated? | Making the policy effective on an earlier date than the present |
| Preferred provider organization | Managed care plan |
| An insurer has the right to recover payment made to the insured from the negligent party. These rights are called | subrogation |
| All of the following are qualifications for establishing a health savings account (HSA) EXCEPT | Enrolled in a health plan with a prescription drug benefit |
| A temporary license is valid for a maximum of __ days | 180 |
| Which contract element is insurable interest a component of? | Legal purpose |
| A health care provider claim may be settled using which of the following payment methods? | Fee-for-service |
| Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have cove | may 30 |
| A Modified Endowment Contract (MEC) is best described as | A life insurance contract which accumulates cash values higher than the IRS will allow |
| Which of the following policies does NOT build cash value? | term |
| Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? | A good health statement |
| Which market index is normally associated with an indexed annuity's rate of return? | S & P 500 |
| A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? | Partial disability |
| Which of these would be the best example of a limited pay life insurance policy? | Whole life policy with premiums paid up after 20 years |
| Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds | will no longer provide insurance protection |
| All of these are typically sources of underwriting information for life or health insurance EXCEPT | Disclosure authorization response |
| States that have "no loss no gain" laws require a replacing policy to | pay for ongoing claims under the policy it replaces |
| Who were Keogh plans designed to provide pension benefits for? | The self-employed |
| A Roth IRA owner must be at least what age in order to make tax-free withdrawals? | 59 1/2 and owned account for a minimum of 5 years |
| A pharmacy benefit covers prescription drugs derived from a list called a(n) | administrative drug list |
| Which of the following is NOT a required provision in an accident and health insurance policy? | change of occupation |
| Which of the following is considered to be an alternative to a life settlement? | Accelerated death benefit rider |
| The standard grace period for a group life insurance policy sold in Washington is ___ days. | 31 |
| The Right-to-Examine period is ___ days for all Long-Term Care Policies sold in Washington. | 30 |
| The waiting period for a disability insurance policy | excludes payments for a short-term illness or injury |
| Ownership of a life insurance policy may be temporarily transferred with a(n) | collateral assignment |
| Coverage for newborns under an accident and health (disability) plan MUST include coverage for | birth abnormalities |
| All of these are standard exclusions found in a life insurance policy EXCEPT | disability |
| All of the following are examples of a Business Continuation Plan EXCEPT | Deferred Compensation |
| A form of medical health insurance covering the treatment and care of gum disease is called | Dental expense insurance |
| Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? | Endowment policy |
| A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences. | 60 |
| Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt | dies instantly from a car accident |
| Credit Accident and Health plans are designed to | help pay off existing loans during periods of disability |
| A renewable Term Life insurance policy allows the policyowner the right to renew the policy | without producing proof of insurability |
| A type of policy that would help pay for uncovered Medicare claims is called | Medicare Supplement |
| Which of these riders will pay a death benefit if the insured's spouse dies? | Family term insurance rider |
| Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? | Accumulation period |
| A Renewable Term Life insurance policy can be renewed | at a predetermined date or age, regardless of the insured's health |
| What happens to interest earned if the annuitant dies before the payout start date? | It is taxable |
| How are survivorship life insurance policies helpful in estate planning? | Provide funds to help pay taxes |
| An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? | Refund annuity |
| Which of these is NOT an Unfair Claims Settlement Practice? | Settling a claim by arbitration |
| Which of these would limit a company's liability to provide insurance coverage? | Exclusion |
| An insured has a health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses. This list is called a | benefit schedule |
| The deeds and actions of a producer indicate what kind of authority? | Apparent |
| A producer may be disciplined by the Commissioner for which of the following actions? | Misappropriation of premium funds |
| The branch of dentistry which deals with the replacement of missing parts is called | Prosthodontics |
| Replacement can be BEST described as | exchanging a new policy for one already in force |
| An indemnity plan | provides the insured a specific dollar amount for services |
| Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. | Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. |
| An employer is issued a group medical insurance policy. This single contract is known as a(n) | master policy |
| A policy owner may change two policy features on what type of life insurance? | Adjustable Life |
| When does a life insurance policy typically become effective? | When initial premium is collected and policy is issued |
| Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences? | 60 |
| An example of an unfair claims settlement practice is | turning down a claim without providing the basis of denial |
| Proof of loss on a health (disability) insurance claim must be submitted to an insurer within ___ days after the insured's date of loss. | 90 |
| Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA? | It would be considered taxable income to the employee |
| Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have? | Calendar-year deductible |
| A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) | limited pay policy |
| Within ___ days after policy delivery, disability policies can be returned for a 100% premium refund. | 10 |
| A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n) | payor rider |
| How do interest earnings accumulate in a deferred annuity? | On a tax-deferred basis |
| When a whole life policy is surrendered, income taxes may be owed | When a whole life policy is surrendered, income taxes may be owed |
| In group health care, what is the purpose of the coordination of benefits provision? | Determines what is paid by the primary and secondary insurers in the event of a claim |
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Samantha_Berk05
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