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155 life insurance questions Mutiple choice all need answered correctly
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Which of the following statements regarding federal taxation of group accidental death and
disbursement policies is correct?
A.
B.
C.
D.
Premiums paid by the employer are tax deductible
Benefits paid must be reported as income of the insured or beneficiary
Death benefits are tax-free and disbursement benefits are taxable income
Premiums paid by the employer are considered income and taxable to the employee
Which of the following are policy proceeds that can be obtained in a lump sum and invested to create an
estate for the beneficiary
A.
B.
C.
D.
Cleanup fund
Readjusted fund
Estate conversation
Estate creation
A point of service (POS) Plan is an example of
A.
B.
C.
D.
A preventive care provider
A manager care plan
A preferred provider organization
An exclusive provider organization
If an insurer does NOT pay a covered individual health insurance claim with the time required, the
insured may file a legal action against the insurer for up to how many years after proof of loss was
required to be furnished
A.
B.
C.
D.
1 year
3 years
5 years
7 years
Which activity does NOT require an insurance producers license?
A.
B.
C.
D.
Advising
Negotiating
Soliciting
Underwriting
Which of the following is an example of a presumptive disability?
A.
B.
C.
D.
Loss of a hand
Loss of one foot
Loss of hearing
Loss of three toes on one foot
Accident-only policy commonly include benefits due to losses related to
A. Accidental injury
B. Accidental disease
C. Accidental illness
D. Intentional bodily injury, regardless of nature
Which statement is correct concerning classification of risks?
A.
B.
C.
D.
Rated policies merit lower premiums
A preferred individual is issued a rated policy
Substandred applicants are never issued policies
Preferred risks pay a lower premium then standard risk
Employees covered by an employer health plan are issued an insurance
A.
B.
C.
D.
Mastery policy
Group policy
Certificate
Contract
A disability income benefits is intend to
A.
B.
C.
D.
Provide cash payments for living expenses
Provide benefits for nursing home expenses
Provide an annuity
Pay for non-reimbursement expenses
For an insurance contract to be valid it must
A.
B.
C.
D.
Be notarized
Be in writing
Include a deposit and receipt
Include an offer and acceptance
A general report during the health insurance underwriting process that may provide information
regarding the applicants morals, lifestyle and financial background, including a credit report, is referred
to as the
A.
B.
C.
D.
Medical information Bureau report
Consumer investigation report
Attending physician statement
Agent report
Who has the right to nonforfeiture values in an annuity?
A.
B.
C.
D.
Beneficiary
Policyowner
Insure
Employer
Human life value approach measures which of the following
A. Total lifetime earnings
B. Total lifetime benefits
C. total lifetime family needs
D. total lifetime dividends
the insurance application is considered
A.
B.
C.
D.
legal and binding
to be the producers report
to be the insurance contract
a source of underwriting information
a producer that presents a claim for payment which contains false information is guilty of
A.
B.
C.
D.
defamation
enticement
forgery
fraud
disability policies MOST often pay benefits in the form of
A.
B.
C.
D.
an annuity
periodic income
a lump sum reimbursement
a lump sum payment based on projected income
which of the following Long Term Disability clauses states that insureds are considered totally disabled
when they CANNOT preform the major duties of a gainful occupation for which they are reasonably
suited because of education
A.
B.
C.
D.
partial disability clause
presumptive disability clause
regular occupation clause
any occupation clause
when an individual schedules regular physical examinations which of the following risk management
techniques is being used
A.
B.
C.
D.
risk sharing
risk transfer
risk reduction
risk avoidance
which of the following elements of insurable risk allow the insurance company to exclude nuclear events
or war from coverage
A.
B.
C.
D.
randomly selected exposure ‘
definite and measurable
large loss exposer
not catastrophic
Long-term polices cover expenses for care when the insured CANNOT perform all of the following
activities of daily living EXCEPT
A.
B.
C.
D.
shopping
toileting
transferring
dressing
which of the following is a solicitation by a producer
A.
B.
C.
D.
buyers guide
sales presentation
statements to shareholders
non-public internal communications
All of the following occurrences may result in license revocation EXCEPT
A.
B.
C.
D.
producing an inadequate amount of new premiums
having been convicted of a felony
forging another’s name to an application for insurance
falling to meet court-ordered child support obligations
An early withdrawal before the age of 59 ½ from a qualified plan is taxed an additional penalty of what
percent
A.
B.
C.
D.
5%
10%
25%
50%
When would at attending physician statement by appropriate for life insurance purposes?
A.
B.
C.
D.
As a matter of routine when the applicant signs the life insurance application
At the request of the insurer without knowledge of approval of the applicant
At the request of the insurance applicant to be submitted with the life insurance application
At the request of the insurer when it could affect the underwriting decisions but with the
consent of the applicant
A life producer should look for annuity prospects whose needs meet all the following EXCEPT
A.
B.
C.
D.
For building retirement savings
For a tax-deferred investment
For a conservative investment
To provide for beneficiaries
For standard HMO polices, who monitors health care needs and helps to control costs?
A. Insurer
B. Insured
C. Subscriber
D. Primary care physician
One of the purposes of the formation of the medical information bureau (MIB) was to
A.
B.
C.
D.
Reduce the potential for fraud
Review the quality of heath care service
Create a medical information resource for nonmedical personnel
Provide accurate information to consumers regarding medical procedures and practices
An employer contribution to the premium of a group disability plan is
A.
B.
C.
D.
Deductible to the employee
Deductible to the employer
Declined by the employer
Paid to the employer
Which of the following individuals is REQUIRED to be licensed as an insurance counselor in the state of
Michigan
A.
B.
C.
D.
An insurer officer or director
An individual selling insurance policies
A person providing insurance advice to a person or business for a fee
A employee working for an independent insurance agency
What is the term used to describe the taxable portion of non-qualified annualization payments
A.
B.
C.
D.
Loss ration
Cost basis
Exclusion ratio
Expect return
If an annuitant dies during the accumulation period, his or her beneficiary will receive
A.
B.
C.
D.
The greater of the accumulated cash value of the total premiums paid
The lesser of the accumulated cash value or the total premiums paid
No monetary funds
Both the accumulated cash value and the total premiums paid
Blood tests to detect the presence of human immunodeficiency Virus (HIV) are commonplace. Laws
have been passed allowing insurance companies to
A.
B.
C.
D.
Share the positive HIV information with other entities
Call the applicant if the HIV test is positive
Require HIV testing at the applicants expense
Deny coverage to an individual with HIV
Non-routine dental care correcting irregularities of teeth by means of apparatus is
A. Oral surgery
B. Orthodontics
C. Periodontics
D. Oral pathology
A policy may contain provisions excluding or restricting coverage as specified in the event of death
under all of the following EXCEPT
A.
B.
C.
D.
Fare-paying passenger
War, act of war
A licensed pilot of a personal aircraft
Suicide
Accident and health insurance protect the insured against financial loss caused by which of the following
A.
B.
C.
D.
Suicide
Bodily injury
Loss of job
Injury on the job
Which of the following is REQUIRED to be licensed as an insurance producer
A.
B.
C.
D.
An underwriter of an insurer
An officer or director of a licensed insurance insure
An administrator of a group plan
An individual selling a policy of commission
Why do comprehensive dental plans usually provide routine dental care service without deductible
A.
B.
C.
D.
To simplify the claims process
To encourage preventive dental care
Because the administrative costs exceed the total cost of the care
Because these fees are incorporated by the dentist in other procedures
In addition to the actual policy, an entire contract includes which of the following
A.
B.
C.
D.
Clauses
Credit report
Provisions
The application
Which of the following is the specified period when the insured may still make payment for the
continuance of the policy after the premium payment
A.
B.
C.
D.
Grace period
Late pay period
Elimination period
Reinstatement period
Heath insurance polices that include the benefit amount for specific commonly preformed operations
are
A. Nonscheduled benefit plans
B. Limited medical policies
C. Scheduled benefit plans
D. Major medical policies
A corporation is owned by three individuals who hold significant positions in running the business.
Which of these policies will pay the business a monthly benefit to cover the expenses of hiring a
replacement if one of the partner is seriously injured an unable to work?
A.
B.
C.
D.
Key person life insurance
business overhead expenses
comprehensive medical expenses
key person disability insurance
what is a producers apparent authority
A.
B.
C.
D.
authority required to execute express authority
authority specially granted to the producer
powers the public expects producers to have
powers inferred but not written ‘
which of the following is a provision in interest-sensitive life policy which allows the public owner to
withdraw the policy’s cash value interest free?
A.
B.
C.
D.
Partial surrender
Automatic premium loan
Waiver of premium
Spendthrift clause
Which of the following is described when a selected group of partitioners, in a certain area, agrees to
provide services at a pre-arranged cost on a fee-for-service basis
A.
B.
C.
D.
Preferred provider organization
Indemnity organization
Risk purchasing group
Coalition group
When a policy owner requests a partial surrender from her universal life policy she is requesting which
of the following
A.
B.
C.
D.
Cash withdrawal
A loan from the policy
Surrender of the policy
Decrease in the coverage amount
A reinstatement clause outlines conditions that include
A.
B.
C.
D.
A higher premium charge
Payment of outstanding loans within the year
Proof of insurability
a decrease in policy limits
if an insured under a life insurance policy dies with an outstanding loan balance then the death benefit
will
A.
B.
C.
D.
be reduced by the amount of the loan and interest owned
not be paid under the loan is repaid
be paid less the amount of the loan but not the interest
be paid less the amount of the loan interest but not the principal
which of the following statements is true regarding a licensed individual changing their legal name
A.
B.
C.
D.
change of legal name has a direct impact on the status as a licensee
the licensee must notify the commissioner upon changing their legal name
the licensee is required to file a name change from on the next license renewal
the insurance code strictly prohibits name changes for the purpose of marketing insurance
products
which type of annuity contract includes an interest rate adjustment factor that can cause the surrender
value to fluctuate in response to economic conditions if the owner surrenders the contract within a
specific time period
A.
B.
C.
D.
variable annuity
qualified annuity
tax-sheltered annuity
market-value adjusted annuity
a contacted marketing firm asks the agency to provide their clients policy numbers for use in a
marketing campaign. According to the Michigan insurance code what is the agency required to do about
this request
A.
B.
C.
D.
fully comply with this legal request
do not comply with this request as doing so is illegal
gain permission form the department before complying
direct them to the insurance company for the information
an insurer monitors the care an insured is receiving in the hospital to be sure that everything is
proceeding according to schedule. This BEST describes
A.
B.
C.
D.
precertification authorization
concurrent review
benefit checking
claims adjudication
in health insurance policies, the reinstatement provision is
A.
B.
C.
D.
mandatory
optional
elective
not required
the PRIMARY purpose of respite care is to
A.
B.
C.
D.
ensure the patient gets some skilled care
provide the patient with social opportunities
provide counseling services to the patients primary care
provide temporary relief to the patient primary caregiver
the purpose of the life and health insurance guarantee association act is
A.
B.
C.
D.
a requirement to pay all claims
to allow purchasing insurance across state lines
to promote higher standards of quality healthcare
to promote a higher standard of quality healthcare
an individual who knowing submits a false statement in support of a claim may be found guilty of
A.
B.
C.
D.
coercion
fraud
misrepresentation
twisting
an insurer owned by its policyholders and pays dividends is considered a
A.
B.
C.
D.
stock company
mutual company
reciprocal exchange
closely held corporation
which type of annuity guarantees a level of benefit payment
A.
B.
C.
D.
variable
universal
limited life
fixed
a producer who knowingly solicits new insurance risks by an insolvent insurer is guilty of
A.
B.
C.
D.
deformation
enticement
forgery
fraud
which of the following polices provides benefits for a specific sickness or disease
A.
B.
C.
D.
hospital indemnity
blanket policy
long term care
critical illness
a life insurance producer may assist as a field underwriter for an insurer by
A. taking accurate information regarding an applicants personal data
B. providing the rate and premium information with the completed application
C. arranging for an applicants medical examination required for insurance purposes
D. reporting unusual characteristics of the applicant that might affect the underwriting decision
an insured owns a whole life insurance policy on himself he would also like to coverage for his son. One
way the insured can accomplish this goal is to purchase
A.
B.
C.
D.
child term rider
family income rider
family maintenance rider
guaranteed insurability rider
under the long-term care insurance which of the following must an insurer offer to each of the
policyowner at the time of purchase?
A.
B.
C.
D.
Daily minimum benefit level
An inflation protection feature
Lifetime minimum benefit feature
A decrease in annual benefit levels
What is the minimum percentage of earned income that can be contributed to a Roth IRA, up to IRS
specified maximums
A.
B.
C.
D.
25
50
80
100
Those entering into a legal contract are called
A.
B.
C.
D.
Annuities
Beneficiaries
Insured parties
Competent parties
Which type of group has a constitution and bylaws, is organized and maintained in good faith for
purposes other than obtaining insurance, and has insurance for the purposes of covering members and
their employees
A.
B.
C.
D.
Credit insurance group
Multiple employer group
Association of labor group
Employee or individual employer group
Client of HMO are known as
A.
B.
C.
D.
Insureds
Subscribers
Participants
Beneficiaries
Under the health insurance portability and accountability act (HIPAA) the employer MUST verify
creditable coverage from pervious employer so that the
A.
B.
C.
D.
Employees benefits still owned can be claimed
Employees cannot be excluded from the new employers health plan
New health insurance carrier will have a clear record of any chronic conditions that exist
Employees waiting period for coverage of a preexisting condition can be reduced under the new
employee handbook
Which nonforfeiture option allows the policyowner to purchase less coverage for life
A.
B.
C.
D.
Reduced paid-up insurance
Cash surrender value
Settlement value
Extended term
All of the following are true concerning group life polices EXCEPT
A.
B.
C.
D.
A master policy is issued to the company
Individual insureds receive a certificate of insurance
The group must contain a specified number of members
The group must be formed for insurance purposes
The general enrollment period for Medicare part B ends on
A.
B.
C.
D.
March 31
May 31
June 30
December 31
In place of license or revocation, the director may require s licensee charged with multiple violations to
pay a penalty. What is the maximum penalty per violation the license would pay?
A.
B.
C.
D.
$1,000
$2,5000
$5,000
$7,500
Generally, if an application is NOT prepaid the effective date of coverage begins on the date the
A.
B.
C.
D.
Application is signed
Application is postmarked and mailed to the insurer
Company underwriter approves the risk
Producer delivers the policy and collects a premium
Which type of health insurance combines all of the basic medical expenses benefits into a single package
A. Group credit health insurance
B. Accidental death insurance
C. Comprehensive medical
D. Limited policies
If an insurer determine the insured is totally disabled, the policyowner is relived of paying the policy
premium as long as the disability continues. The statement describe the
A.
B.
C.
D.
Double indemnity rider
Disability income rider
Return of premium rider
Waiver of premium rider
When a beneficiary inherits a traditional IRA, which of the following is TRUE about taxation when the
money is withdrawn? The beneficiary pays
A.
B.
C.
D.
No tax
An estate tax
Capital gain tax
Income tax
If a premium is NOT submitted with a life insurance application, the producer MUST have the application
sign which of the following when delivering a policy
A.
B.
C.
D.
A replacement form
An HIV consent form
A statement of good health
A beneficiary assignment
An insured has a policy with a cash value of $1,500, a death benefit of $5,000 and an outstanding loan of
$500. How much money will the insured receive under the cash surrender value option?
A.
B.
C.
D.
$500
$1,000
$1,500
$4,500
Under the misstatement of age provision, an insurer must
A.
B.
C.
D.
Honor any past and present claims
Rescind the policy and return the premiums
Pay benefits according to the correct age at the time of application
Report the matter to the department of insurance and financial services (DIFS)
When underwriting an individual health insurance policy, the underwriter will NOT consider the
applicants
A.
B.
C.
D.
Marital status
Occupation
Zip code
Age
In most cases, enrollment in which Medicare coverage part requires no premium and is automatic for
individuals who receive social security benefits?
A.
B.
C.
D.
Part A
Part B
Part C
Part D
Which of the following is covered under the Medicare part B?
A.
B.
C.
D.
Diagnosis
Home health care
Hospice benefits
Impatient psychiatric care
One major benefit of the non-contributory health insurance plan helps the insurer avoid which of the
following?
A.
B.
C.
D.
Adverse selection
Tax exclusion
High premium
Paying claims
All of the following retirement plans qualify for a federal income tax deductible EXCEPT
A.
B.
C.
D.
Keogh plan for non-incorporated businesses
Simplified employee pension plan ‘
Traditional IRA
Roth IRA
Which of the following is one of the MAIN tasks of a field underwriter
A.
B.
C.
D.
Approving an individual policy
Editing an applicants report to ensure approval
Obtaining medical information bureau (MIB) report
Ensure the accuracy and completeness of an individual application
A producer who knowingly submits a false statement in support of a claim may be found guilty of
A.
B.
C.
D.
Fraud
Coercion
Illegal inducement
Misrepresentation
A qualified long-term care policy must pay benefits when an individual is
A.
B.
C.
D.
Incapable of preforming at least 2 activities of a daily living
Dismembered to a serious accident
Hospitalized for more than 3 days
Diagnosed as mentally ill
What do part C Medicare advantage plans require
A.
B.
C.
D.
Benefits provided for long-term care
Must be offered by the federal government
Require enrollment in both Medicare parts A and B
Must be purchased in addition to Medicare supplement policy
The major factor in determining the benefit under a disability policy is
A.
B.
C.
D.
Age
Gender
Occupation
Wages
Under the pre-existing conditions provision, the term Group health plan is defined as
A.
B.
C.
D.
An individual health insurance policy
An employee welfare benefit plan
Medigap
Part A of the social security act
Which of the following would be covered under the health insurance policy
A.
B.
C.
D.
Elective surgery
Self inflicted injury
Preventative health services
Work related injury on the job
Which of the following is NOT considered to be a characteristic of whole life insurance
A.
B.
C.
D.
Level face amount
Nonforfeiture values
Guaranteed cash value
Decreasing death benefit
At the time of an insureds death, a per capita distribution of policy proceeds are paid to
A.
B.
C.
D.
The estate of the deceased beneficiaries
The primary beneficiaries children If the primary had predeceased the insurance
All the primary and contingent beneficiaries in equal installments
The name living primary beneficiaries
The consolidated omnibus budget reconciliation act (COBRA) of 1985 allows employers to
A. Make a mid-year election change with a qualifying event
B. Change plan election upon involuntary termination of employment
C. Continue their group medical insurance by self paying the premiums after the employment has
been terminated
D. Elect to receive a cash stipend in lieu of medical coverage when their preferred medical provider
is not covered by their group medical plan
A licensee who is required to take continuing education must complete a minimum of how many hours
of ethics coursework?
A.
B.
C.
D.
1
2
3
6
The PRIMARY difference between a noncancellable policy and a guaranteed renewable policy is that
only a noncancellable policy can the insurer
A.
B.
C.
D.
Retain the right to refuse the policy at a certain age
Cancel the excessive claims ‘
Allow renewal of policy for 5 years if the insured is over the age of 54
Never raise premiums
A specified plan would provide coverage for which of the following
A.
B.
C.
D.
Cancer
Broken leg
Pneumonia
Vasectomy
Under the grace period, an insured submits a $300 claim for medical expenses. The insurer notes that
the insured has a past due balance of $100, and as a result, the insurer only pays $200 which of the
following uniform optical provisions covers the situation
A.
B.
C.
D.
Renewability
Payment of claims
Unpaid premium
Payment action
health insurance policies that can be purchased to cover specific low frequency diseases are
A.
B.
C.
D.
Group health policies
Group specific policies
individual health policies
individual limit policies
Medicaid provides which coverage that Medicare does NOT?
A.
B.
C.
D.
Custodial care
Outpatient surgery
Ambulance services
Impatient hospital services
All of the following riders can increase the death benefit amount EXCEPT
A. Cost of living
B. Waiver of premium
C. Accidental death rider
D. Guaranteed insurability
Term life insurance differs from permanent life insurance in the MOST often, term life insurance
A.
B.
C.
D.
Accumulates a much smaller cash value
Has a longer premium payment period
Remains in force for a specific period of time
Is automatically renewable at the end of the term year
Which of the following circumstances may cause policy premiums to be higher then standard
premiums?
A.
B.
C.
D.
Agent misquoted the price
The insured appears unhealthy
Insured does not meet certain health requirements
Insured does not complete the application
Rules established as standards for developing and implementing safeguards to protect the security of
confidentiality of insureds information are considered
A.
B.
C.
D.
Not necessary under Michigan law
The responsibility of the insured only
Necessary consumer privacy regulation issues
The responsibility of insurance companies only
Which type of insurance policy is characterized by premiums that are fully paid up within a stated
period, after which no future premiums are REQUIRED
A.
B.
C.
D.
Vanishing premium
Continuous premium
Endowment insurance
Limited payment insurance
Group disability income insurance involves
A.
B.
C.
D.
Higher premiums than individual disability policies
Providing benefits foe nonoccupational illnesses and injuries
A requirement that all employees participate
Workers who individually uninsurable because of the high-risk occupations
The cost of long-term care policy is based on all of the following EXCEPT
A.
B.
C.
D.
Age
Health conditions
Level of benefits provided
Personal income
In a life insurance contract, warranties are considered to be
A. Any statement made by the applicant
B. The same as a representation
C. Grounds to void a policy
D. Absolute true statements
Which of the following statements is True about an insurers rights to screen applicants for HIV?
A.
B.
C.
D.
An insurer can require a blood test for HIV
An insurer can ask about sexual orientation
An insurer can ask about risky sexual behaviors
An insurer can use an investigative consumer report to determine sexual orientation
To receive proceeds from a death benefit, a minor
A.
B.
C.
D.
Must be related to the insured
Can only be named as a contingent beneficiary
Must be at least 16 years old
Must have an appointed guardian
Under workers compensation, injured employees are covered for all of the following except
A.
B.
C.
D.
Loss of wages
Pain and suffering g
Medical expenses
Occupational illness ‘
A physician submits claim information prior to treating a patient for a particular procedure in order to
find out if the procedure is covered. This is referred to as a
A.
B.
C.
D.
Pre-certification
Concurrent review
Benefit checking
Claim submission
When advertising, the identity of the insurer shall be
A.
B.
C.
D.
Capitalized
Generally secure
Guaranteed
Clearly identified
What type of insurance is designed to fill the gap following medicates guidelines regarding deductibles
copayment requirements are benefit period
A.
B.
C.
D.
Medicare part A and B
Medicare part C
Medicare part D
Medicare supplement insurance
If a business pays premiums as a deductible expense for an employee disability income policy, what are
the tax consequences
A.
B.
C.
D.
The benefits are taxable
The benefits are not taxable
The premium must be paid with after tax dollars
The premiums cannot be deducted as a business expense
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts allow the surviving partner to use the death benefit to purchase the deceased owners
interest?
A.
B.
C.
D.
Buy-sell agreement
Key employee life insurance e
Business continuation
Accidental death
The divided option where the insurer issues the policyowner a check for the divided amount is called
A.
B.
C.
D.
Reduced premium dividend option
Cash divided option
One-year dividend option
Paid-up option
An applicant purchases a life insurance policy to avoid the forced sale of asset upon his death. What is
this action called
A.
B.
C.
D.
Buy-sell funding
Capital retention
Capital liquidation
Estate conservation
Which of the following is generally covered in a major medical plan
A.
B.
C.
D.
Cosmetic surgery
Skilled nursing care
Intentional injuries
Infertility treatment
A life insurance rider which reimburses expenses incurred in a convalescent or nursing home facility is
A.
B.
C.
D.
Disability
Long-term care
Accidental death
Cost of living
Which of the following is the form of risk if an entity chooses to set aside funds to be self insuring?
A.
B.
C.
D.
Retention
Avoidance
Control
Transfer
a Medicare supplement policy is best described as
A.
B.
C.
D.
A blanket policy
A limited policy
An accident-only policy
A specified disease policy
Which form of insurer has shareholder?
A.
B.
C.
D.
Reciprocal company
Mutual company
Stock company
Fraternal company
What happens when multiple disability policies are hold from the same insurer in excess of the
maximum limit od indemnity
A.
B.
C.
D.
The excess insurance is valid at the time of the claim
The regular insurance is void and the premium are retuned to the insured
The excess insurance is void and excess premium returned to the insured
The regular and excess insurance are void and all premiums are retuned to the insured
Which of the following is TRUE regarding group health insurance?
A.
B.
C.
D.
There is non minimum participation requirement
Each employee must be approved through underwriting
The requirement is the same for small and large companies
Employer size is calculated based on all eligible employees
It is acceptable for a person to solicit, negotiate and sell insurance when the person has
A.
B.
C.
D.
Submitted an application and received an insurance producer license
Submitted an application and received an insurance adjusters license
Passed the examination and submitted a license application for an insurance prodder license ‘
Passed the examination and submitted a license application for an insurance solicitor license
When the insured gives birth, coverage for eligible newly born children consists of coverage of injury or
sickness including
A.
B.
C.
D.
Delivery expenses
Mothers lost wages
Birth abnormalities
Mothers hospitalization
How does a graded premium whole life policy differ from a modified premium whole life policy
A.
B.
C.
D.
It increases the premium annually during the first several years of the policy
It increases the premium annually for the duration of the policy
it increases the premium once during the duration of the policy
it has a lower premium for the duration of the policy
an insurance has elected to receive $20,000 per month until the principal and interest on his wife’s life
insurance policy has been paid out. The insured has elected which option?
A.
B.
C.
D.
Interest only
Fixed amount
Fixed period
Life income
An employer may purchase life insurance on a key employee because of
A.
B.
C.
D.
Facultative agreement
Insurable interest
Adverse selection
Reinsurance
A single contract for group medical insurance issued to an employer is known as
A.
B.
C.
D.
A group policy
A master policy
An employer policy
A certificate policy
Which of the following statement is true regarding the annuity
A.
B.
C.
D.
The annuitant has the right to name the beneficiary
The annuitant is the only person who is paying the premiums
The cash value is available to the annuitant for withdrawal
The annuitant life expectancy determines the annuity payment
Which of the following BEST describes an indemnity plan?
A.
B.
C.
D.
A percentage of the fee is paid directly to the primary care physician
An insured is provided a specific dollar amount for services
A percentage of the fee is paid directly to the provider
No limit insurance provided there are receipts
An insurer intentional relinquishment of a known right is ‘
A.
B.
C.
D.
An esstoppel
A privilege
A waiver
A choice
HIPAA provides that the 10% excise tax for early withdrawal form IRAs will not apply to the extent a
withdrawal is used for medical expenses that exceed what percentage of the individuals adjusted gross
income?
A. 5.0%
B. 6.5%
C. 7.5%
D. 8.0%
A producers fiduciary responsibility inclides which of the following activities
A.
B.
C.
D.
Receive the receipt and distribution of premiums to an insurer
Properly remunerating persons who furnish leads on prospects
Providing needed insurance to prospects insured through any source that are available
Guaranteeing payment to the insureds for loss covered by policies that the producer sold
If term life insurance is renewable, the policy owner is purchasing the right to renew the policy
A.
B.
C.
D.
With proof of insurability
Without an increase in premiums at renewal
For an unlimited number of times
Without showing proof of insurability
Dependent children can be covered under an individuals group plan up to what age?
A.
B.
C.
D.
18
19
25
26
An individual employer group health plan is noncontributory when
A.
B.
C.
D.
A minimum of 75% of all employees must be covered
An employer pays the premium and employees are covered
The employees (Rather than the employer) pay most of the premiums for the plan
Employee dependents will not be covered
Events or conditions that increase the likelihood of an insureds loss are referred to as
A.
B.
C.
D.
Perils
Hazards
Exposures
Risks
Statements by an applicant concerning personal health history, family health history, occupation and
hobbies are referred to as
A.
B.
C.
D.
Depictions
Certification
Representations
Personal characteristics
Title XVIII of the social security act outlines
A.
B.
C.
D.
Medicare provisions
HMO
