Description
155 Mutiple choice life and heath questions
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Insurance applicants with an average life expectancy who represent the same risk classification at the
majority of people with similar lifestyles are considered witch type of risk?
A.
B.
C.
D.
Declined
Preferred
Standard
Substandard
Which rider allows the husband or wife of the insured to add primary insured policy?
A.
B.
C.
D.
Level of term ride
Spouse term rider
Guaranteed insurability rider
Associated death benefit rider
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
A general report used during the health insurance underwriting process that may provide information
regarding the applicants morals, lifestyles 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
Agents report
An individual who knowingly submits a false statement in support of a claim may be found guilty of
A.
B.
C.
D.
Coercion
Fraud
Misrepresentation
Twisting
Insurers offering dental care minimize adverse selection by
A.
B.
C.
D.
Allowing insureds to postpone treatment until coverage takes effect
Giving insureds a wide choice of treatment options and costs
Offering some plans on an individual basis
Limiting benefits for cosmetic procedures
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
What action does the misstatement of age provision give the insurance company the right to do?
A.
B.
C.
D.
Cancel the contract
Bring suit for fraud
Adjust premium payment
Reduce dividends payable
Which of the following constitutes grounds for license suspension or revocation
A.
B.
C.
D.
Having been convicted of a traffic misdemeanor
Unintentional misrepresentation of terms of a proposed contract ‘
Misappropriating money received in the course of doing insurance business
Having had a complaint filed for dishonest practices in the conduct of business
A group that is eligible for insurance and is composed of several employees combining their workers for
insurance coverage is
A.
B.
C.
D.
An individual employer group
An Alumni association group
A multiple employer trust
A labor union trust
If an annuitant dies during the accumulation period, his or her beneficiaries will receive
A.
B.
C.
D.
The greater of the accumulated cash value of the total premiums paid
The lessor of the accumulated cash value of the total premiums paid
No monetary funds
Both the accumulated cash value and the total premiums paid
Which is the simplest type of life insurance plan that provides protection for a specified time period and
pays a benefit ONLY if the insured dies during that time period
A.
B.
C.
D.
Whole life insurance
Level term life insurance
Variable life insurance
ordinary life insurance
which of the following is described when a select group of practitioners, in a certain area, agrees to
provide services at the pre-arranged cost on a fee-for-service basis
A.
B.
C.
D.
preferred provider organization
indemnity organization
risk purchasing group
coalition group
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 a medical information bureau (MIB) report
ensuring the accuracy and completeness of an individual application
a single contract for group medical insurance issued to an employee is known as
A.
B.
C.
D.
a group policy
a mastery policy
an employer policy
a certified policy
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 purpose 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
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 from the department before complying
direct them to the insurance companies for this information
an individual who acts on behalf of an insurer to solicit an insurance contract is known as a
A.
B.
C.
D.
broker
producer
counselor
principal
under the health insurance portability and accountability act (HIPAA) the employee MUST verify
creditable coverage from previous employer so that the
A.
B.
C.
D.
employees benefits still owed can be claimed
employee cannot be excluded from the new employers health plan
new health insurance carrier will have a clear record of any chorionic conditions that exist
employees waiting period for coverage of a preexisting condition can be reduced under the new
employers health plan
at time of an insureds death, per capita distribution of policy proceeds are paid to
A.
B.
C.
D.
the estate of the decreased beneficiaries
the primary beneficiary children if the primary has predeceased the insured
all the primary and contingent beneficiaries in equal installments
the named living primary beneficiaries
which of the following is generally covered in a majority medical plan
A.
B.
C.
D.
cosmetic surgery
skilled nursing care
intestinal injuries
infertitly treatment
a policyholder should provide notification of claims to the insurer within how many days of the loss
A.
B.
C.
D.
5 days
10 days
20 days
45 days
A participating life insurance policy distributing dividends is called
A.
B.
C.
D.
Fixed
Mutal
Permanent
Variable
A producer offers a $55 handbag in exchange for the purchase of an insurance policy. The producer
would be considered to have committed which unfair trade practice
A.
B.
C.
D.
Coercion
Rebating
Replacement
Twisting
Under workers compensation injured employees are covered for all of the following losses EXCEPT
A.
B.
C.
D.
Loss of wage
Pain and suffering
Medical expenses
Occupational illness
When a policy owner request 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
Surender of the policy
Decreased in the coverage amount
Renewable term life insurance guarantees the policy can be renewed
A.
B.
C.
D.
To a pre-determined date or age, regardless of the insureds health status
To a predetermined date or age based on the insured providing evidence of insurability
At the insured option at the same premium with no change in death benefits to age 100
An unlimited number of times, even if the insured lives beyond her life expectancy
Which of the following is a whole life policy option that allows for a delinquent premium to be paid
automatically by a new policy loan
A.
B.
C.
D.
Term rider
Fixed-period installment
Automatic premium loan option
Spindrift clause
Group disability income insurance usually involves
A.
B.
C.
D.
Higher premiums than individual disability polices
Providing benefits for nonoccupational illnesses are injuries
A requirement that all employees participate
Workers who are individually uninsurable because of their high-risk occupations
A specified coverage plan would provide coverage for which of the following
A.
B.
C.
D.
Cancer
Broken leg
Pneumonia
Vasectomy
An early withdrawal before age 59 ½ from a qualified plan is taxed an additional penalty of what percent
A.
B.
C.
D.
5%
10%
25%
50%
What is required for each prescription drug benefit are written
A.
B.
C.
D.
Pharmacy approval
Administrative fee
Copay or flat amount
Nature and purpose disclosure
Which of the following individuals is REQUIRED to be licensed as an insurance counselor is the state of
Michigan
A.
B.
C.
D.
An insurer or director
An individual selling insurance polices
A person providing insurance advice to a person or business for a fee
An employee working for an independent insurance agency performing non-insurance duties
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
Who has the right to the nonforfeiture values in an annuity
A.
B.
C.
D.
Beneficiary
Policyowner
Insurer
Employer
Accidental and heath insurance protects the insured against financial loss caused by which of the
following
A.
B.
C.
D.
Suicide
Bodily injury
Loss of a job
Injury on the job
A corporation is owned by three individuals who hold significant positions in running the business.
Which of these polices will pay the business a monthly benefit to cover the expenses of hiring a
replacement if one of the partners is seriously injured?
A.
B.
C.
D.
Key person life insurance
Business overhead expenses
Compromise medical expenses
Key person disability insurance
How often must a report of the value of a universal life policy be sent
A.
B.
C.
D.
Monthly
Annually
Quarterly
Semi-annually
Under long-term care insurance, which of the following must an insurer offer to each policyowner at the
time of purchase
A.
B.
C.
D.
Daily minimum benefits levels
An inflation protection feature
Lifetime minimum benefits feature
A decrease in annual benefits levels
When determining the need and amount of life insurance, calculating the lump-sum needs to provide
for unexpected emergencies and a family might encounter immediately after the death of an insured
are considered when using the
A. Needs approach
B. Capital liquidation method
C. Human life value approach
D. Policy cost comparison method
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
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 services
Create a medical information resource for non medical purposes
Provide accurate information to consumers regarding medical procedures and practices
If an insurer does NOT pay a covered individual heath insurance claim within the time required, the
insured may file a legal action against the insurer for up to how many years after the proof of loss was
required to be furnished
A.
B.
C.
D.
1 year
3 years
5 years
7 years
When advertising, the indemnity of the insured shall be
A.
B.
C.
D.
Capitalized
Generally secure
Guaranteed
Clearly identified
Which of the following is the form of risk If an entity chooses to set aside funds to self-insuring
A.
B.
C.
D.
Retention
Avoidance
Control
Transfer
Which rider pays a monthly amount in the policyowner in the event of a total and permeant disability
A.
B.
C.
D.
Waiver of cost of insurance
Disability income rider
Waiver of premium
Payor benefit
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
All of the following are purposes of an annuity except
A.
B.
C.
D.
An annuity is designed to create an estate
An annuity is designed to liquidate an estate
An annuity is designed to distribute accumulated principal
An annuity is deigned for tax-deferred growth of a principal
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
Which form of insurer has shareholders
A.
B.
C.
D.
Reciprocal company
Mutal company
Stock company
Fraternal society
blood tests to detect the presence of human im-deficiency virus (HIV) are complacent. Laws have been
passed allowing insurance companies to
A.
B.
C.
D.
Share the positive HIV information with other companies
Call the applicant if the HIV test is positive
Require HIV testing at the applicants expense
Deny coverage to an individual with HIV
If a managed care plan, what may be required to obtain treatment
A.
B.
C.
D.
Deductible
Coinsurance
Consolation
Preauthorization
Each life insurance policy offers a 30-day grace period. This prevents the policy from being cancelled if
payment is received late, but within 30 days of the premium due date. Which of the following is TRUE, if
an insured dies during the 30 day-day grace period assuming the policy is in good standing ‘
A.
B.
C.
D.
The late premium is forgiven and the full benefit is paid
The late premium will be subtracted from the benefit will be paid
The policy is considered invalid and no benefit will be paid
The policy will require reinstatement before the benefit can be paid
If an insurer does NOT pay on a disability claim, how many days after the written proof of loss has been
furnished must the insured wait to file a legal action
A.
B.
C.
D.
10
30
60
90
The dividend option where the insurer issues the policy owner a check for the dividend amount is called
a
A.
B.
C.
D.
Reduced premium dividend option
Cash dividend option
One-year option
Paid-up option
A disability income benefit is intended to
A.
B.
C.
D.
Provide cash payment for living expenses
Provide benefits for nursing home expenses
Provide an annuity
Pay for non-reimbursement expenses
Disability polices MOST often pay benefits in the from of
A.
B.
C.
D.
An annuity
Periodic income
A lump sum reimbursement for wages lost
A lump sum payment based on projected income
Statements by an applicant concerning personal health history, family health history, occupation, and
hobbies are referred to as
A.
B.
C.
D.
Deprecations
Certifications
Representations
Personal characteristics
When underwriting an individual health insurance policy, the underwriter will NOT consider the
applicants
A.
B.
C.
D.
Martial status
Occupation
Zip code
Age
In the state of Michigan insurers offering long term care insurance shall provide the proposed insured a
summary of coverage. Which of the following is the purpose of the summary?
A.
B.
C.
D.
To describe the protections to the riders
To provide the facilities offering long-term care
To make the prospective applicant aware that the premium costs can rise
To provide a brief description of the Important features of the policy
When the insured gives birth, coverage for the eligible newly born child consists of coverage of injury or
sickness including
A.
B.
C.
D.
Delivery expenses
Mothers lost wages
Birth abnormalities
Mothers hospitalization
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
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 a higher standard of quality healthcare
To protect against failure of contractual obligations
A type of Medicare supplement plan is
A.
B.
C.
D.
Plan N
Plan O
Plan R
Plan T
If a premium is NOT submitted with a life insurance application, the producer MUST have the applicant
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
Withholding a material fact by the applicant is called
A.
B.
C.
D.
Concealment
Fraud
Misrepresentation
Misstatement
What is protected by the Gramm-leach-billey Act and chapter 5 of the Michigan insurance code
A. Consumers financial information
B. Third party claimants rights
C. Company statistical data
D. Extended policy coverages
Long term care polices cover expenses for care when the insured CANNOT preform all of the following
activities of daily living expenses
A.
B.
C.
D.
Shopping
Toileting
Transferring
Dressing
In life insurance, a contract warranties are considered to be
A.
B.
C.
D.
Any statement made by the applicant
The same as a representation
Grounds to void a policy
Absolute true statement
In addition to the actual policy, an entire contract includes which of the following
A.
B.
C.
D.
Clauses
Credit reports
Provisions
The application
What happens when multiple disability polices are held from the same insurer in excess of the maximum
limit of indemnity
A.
B.
C.
D.
The excess insurance is valid and payable at the time of the claim
The regular insurance is void and the premiums are returned to the insured
The excess insurance is void and excess premiums are returned to the insured
The regular and excess insurance are void and all premiums are retuned to the insured
Which of the following elements of insurable risks allow the insurance company to exclude nuclear
events or war from coverage
A.
B.
C.
D.
Randomly selected exposure
Definite and measurable
Large loss exposure
Not catastrophic
Those entering into a legal contract are called
A.
B.
C.
D.
Annuities
Beneficiaries
Insured parities
Competent parties
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 exclusions
High premiums
Paying claims ‘
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
Which of the following is TRUE regarding group health insurance?
A.
B.
C.
D.
There is no minimum
Each employee must be ne approved through underwriting
The requirement is the same for small and large companies
Employee size is calculated based on all eligible employees
Six years after disability policy was issued, an insured changed occupations from less hazardous to more
hazardous and failed to notify the insurer. Under the change of occupation provision, if a claim is filed
the insurer will
A. Pay no benefit since the insured failed to inform the insurer of the change in occupation
B. Pay the benefit as benefit as contracted for since the policy is over 2 years old
C. Reduce the benefit to an amount of the actual premium would have purchase at the more
hazardous occupation
D. Reduce the payment by the exact amount of the premium underpayment
Which type of health insurance combines all of the basic medical expense benefits into a single package
A.
B.
C.
D.
Group credit health insurance
Accidental death insurance
Compressive medical
Limited polices
The major factor in determining the benefit under a disability income policy is
A.
B.
C.
D.
Age
Gender
Occupation
Wages
A point of service (POS) plan is an example of
A.
B.
C.
D.
A preventive care provider
A managed care plan
A preferred provider organization
An exclusive provider organization
When an individual schedules regular examinations which of the following risk management is being
used?
A.
B.
C.
D.
Risk sharing
Risk transfer
Risk reduction
Risk avoidance
In most case, enrollment in which Medicare coverage part requires no premium and automatically
for individuals who receive social security benefits?
A.
B.
C.
D.
Part A
Part B
Part C
Part D
In Michigan, which of the following statements is TRUE regarding a licensed individual changing his or
her legal name?
A.
B.
C.
D.
Change of marital status has a direct impact on the status as a producer
The producer is required to file a name change form on the next license renewal
The producer must notify the commissioner upon changing his or her legal name
Michigan insurance code strictly prohibits name for the purpose of marketing insurance
products
If a business premiums as a deductible expense for an employee disability, what is the tax consequences
to the employee?
A.
B.
C.
D.
The benefits are taxable
The benefits are not taxable
The premiums must be paid with after tax dollars
The premiums cannot be deducted as a business expense
A producer who knowingly solicits new insurance risk by an insolvent insurer is guilty of
A.
B.
C.
D.
Deformation
Enticement
Forgery
Fraud
An applicant purchases a life insurance policy to avoid the forced sale of assets upon his death. What is
this action called?
A.
B.
C.
D.
Buy-sell funding
Capital retention
Capital liquidation
Estate conservation
An insurer owned by its policyholders and pays dividends is considered a
A.
B.
C.
D.
Stock company
Mutal company
Reciprocal company
Closely held corporation
Which is NOT excluded in a long term-care policy?
A.
B.
C.
D.
Alcoholism
Alzheimer’s disease
Non-cognitive mental disorder
Treatment caused by participation in criminal behavior
Under the consolidated omnibus budget reconciliation (COBRA) guidelines an organization with 20 or
more employees must administer continuing health insurance to a former employee who does not
experience a disqualifying event
A.
B.
C.
D.
12 months
18 months
24 months
30 months
Which of the following statements is true regarding the annuitant
A.
B.
C.
D.
The annuitant has the right to name the beneficiary
The annuitant is the person who is paying the premiums
The cash value is available to the annuitant for the withdrawal
The annuitant life expectancy determines the annuity payments
Which of the following is covered under Medicare part B?
A.
B.
C.
D.
Diagnostic tests
Home health care
Hospice benefits
Inpatient psychiatric care
The PRIMARY purpose of respite is to
A.
B.
C.
D.
Ensure that the patient gets some skilled care
provide the patient with social opportunities
provide consoling services to the patients primary caregiver
provide temporary relief to the patients primary caregiver
a policy may contain provision exclusions or restricting coverage as specified in the event of death under
all of the following EXCEPT
A.
B.
C.
D.
fare-paying passenger
war, or act of war
a licensed pilot or personal aircraft
suicide
which of the following is a provision in an interest sensitive life policy which allows the policyowner to
withdraw the polices cash value interest free?
A.
B.
C.
D.
Partial surrender
Automatic premium loan
Waiver of premium
Spendthrift clause
Who may terminate a producers appointment
A.
B.
C.
D.
The insurer
The producer
The policy owner
The insured
The general enrollment period for Medicare part B ends on
A.
B.
C.
D.
March 31st
May 31st
June 30th
December 31st
Which of the following circumstances may cause policy premiums to be higher than standard premiums
A.
B.
C.
D.
Agent misquotes the price
The insured appears unhealthy
Insured does not meet certain health requirements
Insured does not complete the application completely
A group health insurance certificate of coverage is
A.
B.
C.
D.
Issued in lieu of a policy
Only provided to an employer
Given to the employee as proof of coverage
Issued to the policyowner as proof of coverage
Who is the beneficiary of a key insurance policy?
A.
B.
C.
D.
Business partners spouse
Business associate
Employee
Employer
Which statement is TRUE about whole life insurance?
A.
B.
C.
D.
Outstanding loans do not affect the death benefit
Income taxes may be due when the policy is surrendered
Policy loans may fluctuate depending on the stock market
The cash value may fluctuate depending on the stock market
All of the following retirement plans qualify for a federal income tax deduction EXCEPT A
A.
B.
C.
D.
Keogh plan for non-incorporated businesses
Simplified employee pension plan
Traditional; IRA
Roth IRA
A whole life policy is replaced with an annuity without incurring a tax penalty, this is referred to as
A.
B.
C.
D.
A cross-purchase
An endowment contract
A transfer of value
A 1035 exchange
Preferred risk reflects
A.
B.
C.
D.
Above average risk of loss
Risks an insurer may decline
Risks that may be insured at a discounted premium
Risks with an average exposures in a normal range
All of the following occurrences may result in licenses 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
Failing to meet court-ordered child support obligations
To be eligible for Medicare part C, an individual must be enrolled in which of the following
A.
B.
C.
D.
Part A only
Part B only
Parts A and parts B
Parts A and part D
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
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 due date
A.
B.
C.
D.
Grace period
Late pay period
Elimination period
Reinstatement period
Jacks long-term care insurance policy is most likely to provide which of the following benefits
A. $200 a day
B. $10,000 per person
C. $50,000 per accident
D. $1,000,000 combined single limit
An insurer monitors the care an insured is receiving in the hospital to be sure that everything is
processing according to schedule. This BEST describes
A.
B.
C.
D.
Precertification authorization
Concurrent review
Benefit checking
Claims adjudication
What is the maximum percentage of earned income that can be contributed to a Roth IRA, up to the IRS
specified maximums
A.
B.
C.
D.
25
50
80
100
What is a producers apparent authority
A.
B.
C.
D.
Authority requires to execute express authority
Authority specified granted to the producer
Powers the public expects producers to have
Powers inferred but not written
What is the period of time referred to that MUST lapse before disability income benefit begins
A.
B.
C.
D.
Probationary period
Elimination period
Conversion period
Holding period
Which action must be taken by a producer when premiums are collected
A.
B.
C.
D.
Pay premiums due to the insurers on a timely basis
Maintain premiums funds in interest-baring accounts ]
Deposit premiums in separate accounts for each insurer they represent
Return the premiums to clients at the close of the agency’s fiscal year
Under the pre-existing conditions provision, the term group health plan is defend as
A.
B.
C.
D.
An individual health insurance policy
An employee welfare benefit plan
Medigap
Part A of the social security act
Heath insurance polices that include the benefit amount for specific commonly preformed operations
are
A.
B.
C.
D.
Nonscheduled benefit plan
Limited medical polices
Scheduled benefit plans
Major medical polices
Which of the following statements regarding federal taxation of the group accidental death and
dismemberment polices 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 dismemberment benefits are taxable as income
Premiums paid by the employer are considered income and taxable to the employee
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 service
A percentage of the fee is paid directly to the provider
No limit insurance provided there are receipts
The purpose of the buyers guide for life insurance and annuities is to
A.
B.
C.
D.
Take the place of a contract or policy argument
Provide detailed policy information and points to consider
Offer basic information and points to consider
Replace a consultation with an agent
When would attending a physicians statement be apostolate 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 or approval of the application
At the request of the insurance applicant to be submitted with life insurance application
At the request of the insurer when it could affect the underwriting decision with the consent of
applicant
Which of the following insurance policies pay a specific amount of insurance for each day an individual is
hospitalized
A.
B.
C.
D.
Disability insurance
Hospital confinement
Hospital indemnity insurance
Short-term care insurance
Medicaid provides which coverage that Medicare does NOT
A.
B.
C.
D.
Custodial care
Outpatient surgery
Ambulance services
Impatient hospital services
The purpose of a policy summary is to provide
A.
B.
C.
D.
Comparative policy illusions
A summary of producers compensation
The features and elements of the policy
The company’s general policy provisions
A Michigan insurance producer license is required for what type of service
A.
B.
C.
D.
Engaging in the inspection, rates or classification of risks
Administrative service related to mass marketed insurance products
Advising an employer concerning insurance needs without receiving commissions
Giving advice or describing the specific characteristics of coverage of an insurance products
Which type of life insurance policy is characterized by premiums that are fully paid up without a
standard period, after which no further premiums are required
A.
B.
C.
D.
Vanish premium
Continuous premiums
Endowment insurance
Limited payment insurance
What medical plans REQUIRES the subscriber to choose a primary care physician (PCP) who authorizes
referrals also known as a “Gatekeeper system”
A.
B.
C.
D.
HMO
PPO
Medicare supplement
Point of service (POS)
Why do comprehensive dental plans usually provide routine dental services without deductibles or
coinsurance
A.
B.
C.
D.
To simplify the claim
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
Health insurance polices that can be purchased to cover specific low frequency disease are
A.
B.
C.
D.
Group health polices
Group specific policies
Individual health polices
individual limit policy
which of the following is a common exclusion form coverages found in accident and health polices
A. coordination of benefits
B. emergency room coverages
C. flu and pneumonia converges
D. self-inflicted injuries
an insured has chosen to receive the payout from her husbands life insurance policy so that she will
receive an income for the next 10 years. At the end of that time, the entire proceeds from the policy will
have been paid out. The insured has selected which option
A.
B.
C.
D.
fixed period
interest only
fixed amount ‘
life income
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 gains tax
income tax
clients of an HMO are known as
A.
B.
C.
D.
insureds
subscribers
participants
beneficiaries
what is the term used to describe the taxable portion of non-qualified annualization
A.
B.
C.
D.
loss ratio
cost benefits
exclusions ratio
expected return
which of the following long term disability clauses states that insured are considered totally disabled
when they CANNOT preform the major duties of a gainful occupational for which they are reasonably
suited because of education
A.
B.
C.
D.
partial disability
presumptive disability clause
regular occupation clause
any occupation clause
who of the following is REQURED to be licensed as an insurance producer
A.
B.
C.
D.
an underwriter at an insurer
an officer or director of a licensed insurer
an administrator of a group plan
an individual selling a policy for commission
HIPAA provides that the 10% excise tax for early withdrawal from 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.
B.
C.
D.
5.0%
6.5%
7.5%
8.0%
Which of the following is a characteristic of a contract of adhesion
A.
B.
C.
D.
Each party is entitled to reply on others representations
The insurer agrees to pau a stated sum regardless of loss
The term must be accepted or rejected in full
The insurer obligations as dependent upon certain acts of the insured individual’s
Generally, if the applicant 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
Both husband and wife have group health insurance through their employers. Each spouse is covered
under both polices. Under the coordination of benefits provision, how will the benefits be paid if the
wife incurs a covered loss?
A. Each insurer will pay equal amounts of the covered loss
B. Only the primary insurer will pay expenses towards the loss un
