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Health and life
Exam prep
166 cards·by Mick112199
Traditional whole life policies are a type of insurance policy that will provide coverage
under what circumstance?
It is for the entire life of the insured
What happens if the insured no longer wants to make premiums on a traditional whole life policy
and asks carrier to cancel it?
The insured would collect part of the premium already paid to carrier, Traditional policies
contain cash surrender which allows cancellation
what type of policy would an insured obtain if he or she doesn't want to continue making
premiums payments after a set # of years?
Limited pay life insurance either 10, 15, or 20 years. Coverage continues till death of
insured.
Newly married 33 year old and doesn't know what future holds. . What type of policy would be good
for him?
Adjustable life allows flexibility to change coverage during life of policy. he could amend
premiums, coverage amts, and length of policy
Adjustable policies differ from others how?
Do not require additional purchase of coverage or cancellation when life event change.
Customer can use the interest gained on a policy to pay premium is they have this type of policy?
Universal life
The cash value from investments in Universal grows at what rate?
a variable rate that is adjusted monthly. (Due to market changes)
Insurance policy with a key feature that allows an insured to take premium dollars and invest
it in multiple types of investment options? (m
Variable Life Insurance
Interest Sensitive whole life policy is appropriate for which group of individuals?
people needing permanent insurance with a fixed premium (premium won't change even if health
does)
people needing permanent insurance with a fixed premium (premium won't change even if health
does)
Equity Indexed Universal Policy --allows insured the security with a fixed universal policy
but has potential of growth like a variable poli
What type of Annuity will allow and insurer to invest and guarantee how much a return will be
once the policy is over.
Fixed Annuity-*normally terminates upon annuits death
An insured has a primary group health plan and an excess plan, eachcovering losses up to
$10,000. The insured suffered a loss of $15,000.Dis
$5,000 Once the primary plan has paid its full promised benefit, the insured submits the claim
to the secondary, or excess, provider for
Which of the following is NOT correct regarding examination of companies?
The Commissioner must examine all alien companies. Under certain circumstances, the
Commissioner may waive examination of foreign and a
Which of the following methods to designate a beneficiary literally means "by the head?"
Per capita Per Capita means "by the head." Each person named asbeneficiaries would receive
equal portions
If a member of a Blue Cross/Blue Shield (BC/BS) obtains medical treatment from a
non-participating provider, the insurer will pay
The amount that would have been paid to aparticipating provider.
Which of the following will be EXEMPT from continuing education requirements?
A limited lines credit producer
Which of the following is considered a qualifying event under COBRA?
Divorce Other qualifying events include the voluntary termination of employment;an
employee's change from full time to part time; or the dea
The factor added to the net premium to cover the costs of the insurer inobtaining and
maintaining the business is called
Expenses. Loading is another term for expenses. Net premium (mortality minusinterest
earned) plus expenses (or loading) equal the gross prem
An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The
insurer deducts the unpaid premium amount fro
Unpaid premium
All of the following are features and requirements of the Living Needs Rider EXCEPT
Diagnosis must indicate that death is expected within 3 years. The Living Needs Rider
provides for the payment of part of the policy de
Living Needs Rider
Diagnosis must indicate that death is expected will result in death within 2 years. A
participating insurance policy may do which of the fol
Living Needs Rider
Diagnosis must indicate that death is expected will result in death within 2 years.
A participating insurance policy may do which of the following
Pay dividends to the policy owner. What is the benefit of choosing extended term as a
nonforfeiture option
All of the following are characteristics of a Universal Life policy EXCEPT
The planned premium pays for mortality charges and expenses and any excess is returned to the
policy owner
Any premium amounts not required to pay for mortality and expenses
create the cash account.
Under an individual disability policy
the MINIMUM schedule of time in which claim payments must be made to an insured is
An insured has a Level Term Life Insurance policy that is guaranteed renewable and also
includes a re-entry provision The re-entry provision
Pay a lower renewal premium by proving insurability.
An insurance producer has not been appointed to an insurance company Who is the producer
considered to represent
The client.
All of the following are characteristics of a Universal Life policy EXCEPT
The planned premium pays for mortality charges and expenses and any excess is returned to the
policy owner
Any premium amounts not required to pay for mortality and expenses
create the cash account.
Under an individual disability policy
the MINIMUM schedule of time in which claim payments must be made to an insured is
An insured has a Level Term Life Insurance policy that is guaranteed renewable and also
includes a re-entry provision The re-entry provision
Pay a lower renewal premium by proving insurability.
An insurance producer has not been appointed to an insurance company Who is the producer
considered to represent
The client.
All of the following are true regarding viatical settlement regulations in Indiana EXCEPT
Viatical contracts allow for a 10 day freelook period Viatical contracts require a longer
free-look period 30 days from the date of contract
What is the elimination period for Social Security disability benefits
5 months.
What is the elimination period for Social Security disability benefits
5 months.
Under SIMPLE plans participating employees may defer up to a specified amount each year and
the employer then makes a matching contribution
3.
Which of the following will be included in a policy summary
Premium amounts and surrender values.
What type of benefit helps to pay for accidental injuries that are not severe enough to qualify
as disabilities
Medical Reimbursement Benefit.
An individual applied for an insurance policy and paid the initial premium The insurer issued
a conditional receipt Five days later the appl
The date of medical exam.
Which of the following is NOT covered under a core policy Plan A in Medigap insurance
The Medicare Part A deductible.
In Indiana all of the following may act as insurance consultants EXCEPT
An individual who holds both the producers and a consultants license.
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
60 days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
What is the elimination period for Social Security disability benefits
5 months.
Under SIMPLE plans participating employees may defer up to a specified amount each year and
the employer then makes a matching contribution
3.
Which of the following will be included in a policy summary
Premium amounts and surrender values.
What type of benefit helps to pay for accidental injuries that are not severe enough to qualify
as disabilities
Medical Reimbursement Benefit.
An individual applied for an insurance policy and paid the initial premium The insurer issued
a conditional receipt Five days later the appl
The date of medical exam.
Which of the following is NOT covered under a core policy Plan A in Medigap insurance
The Medicare Part A deductible.
In Indiana all of the following may act as insurance consultants EXCEPT
An individual who holds both the producers and a consultants license.
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
60 days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
An individual applied for an insurance policy and paid the initial premium The insurer issued
a conditional receipt Five days later the appl
The date of medical exam.
Which of the following is NOT covered under a core policy Plan A in Medigap insurance
The Medicare Part A deductible.
In Indiana all of the following may act as insurance consultants EXCEPT
An individual who holds both the producers and a consultants license.
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
60 days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
In Indiana all of the following may act as insurance consultants EXCEPT
An individual who holds both the producers and a consultants license.
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
60 days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
In Indiana all of the following may act as insurance consultants EXCEPT
An individual who holds both the producers and a consultants license.
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
Sixty days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
Sixty days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
Under the Affordable Care Act a special enrollment period allows an individual to enroll in a
qualified health plan within how many days of
Sixty days.
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT
All of the following are TRUE statements regarding the accumulation at interest option
Except
All of the following are True statements regarding the accumulation at interest option
Except
Which of the following is NOT a term for the period of time during which the annuitant or the
beneficiary receives income
Depreciation period The annuitization period is the time during which accumulated money is
converted into an income stream It is also referr
In Indiana controlled business is Limited to
25 percent of a producers annual commission income.
A married couples retirement annuity pays them 250 per month The husband dies and his wife
continues to receive 125 per month for as long as
Joint and survivor.
Rule 38 point 1 is also known as
Group Coordination of Benefits.
Premium payments for personally-owned disability income policies are
Not tax deductible.
An insured pays a monthly premium of $100 for her health insurance What would be the duration of
the grace period under her policy
10 days.
When a life insurance policy stipulates that the beneficiary will receive payments in
specified installments or for a specified number of ye
Spendthrift provision.
The Waiver of Cost of Insurance rider is found in what type of insurance
Universal Life.
Every insurer marketing LongTerm Care insurance must establish marketing procedures to
ensure all of the following EXCEPT
LTC policies are marketed effectively to prospective insureds All insurers marketing long
term care policies must establish these procedures
Which of the following is NOT true regarding policy loans
Money borrowed from the cash value is taxable Money borrowed from the cash value is not taxable
Policy loans can be repaid at any time inclu
A producer is helping a married couple determine the financial needs of their children in the
event one or both should die prematurely This
Survivor protection.
Which of the following must an agent receive in order to sell variable life insurance policies
FINRA registration.
All of the following statements describe a MEWA EXCEPT
MEWAs are groups of at least 3 employers MEWAs are groups of at least 2 employers who pool their
risks to self insure.
Another name for a substandard risk classification is
Rated.
Which of the following would be deducted from the death benefit paid to a beneficiary if a
partial accelerated death benefit had been paid w
Amount paid with the accelerated benefit plus the earnings lost by the insurance company in
interest income from the accelerated benefit.
The Affordable Care Act requires all US citizens and legal residents to have qualifying
health care coverage This is known as
The individual mandate.
illustrations
They must not be part of the contract.
Contracts that are prepared by one party and submitted to the other party on a take it or leave it
basis are classified as
Contracts of adhesion.
An agent selling variable annuities must be registered with
FINRA.
Which of the following statements about occupational vs nonoccupational coverage is TRUE
Disability insurance can be written as occupational or nonoccupational.
In a group prescription drug plan the insured typically pays what amount of the drug cost
Copayment.
A banker is ready to close on a customer's loan The bank is prepared to offer the loan but only if
the customer purchases a life insurance p
Coercion.
What type of insurance would be used for a Return of Premium rider
Increasing Term.
An insured is involved in a car accident In addition to general less serious injuries he
permanently loses the use of his leg and is rendere
No benefits.
Under workers compensation
which of the following benefits are NOT included
The policyowner pays for her life insurance annually Until now she has collected a nontaxable
dividend check each year She has decided that
Reduction of premium.
Which of the following is the required number of participants in a contributory group plan
75 percent.
In forming an insurance contract when does acceptance usually occur
When an insurer's underwriter approves coverage.
Which of the following would be a typical maximum benefit offered by major medical plans
1 million.
Under which circumstance can a producer receive a commission and a consultant's fee for the
same transaction
A producer makes a disclosure about the compensation arrangements prior to the transaction.
Concerning group Medical and Dental insurance
For group medical and dental expense insurance any premium paid by the employer is deductible
as a business expense However premiums provide
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies Installments for a fixed amount option has no
life contingencies A specific amount of benefit
An insured has an Accidental Death & Dismemberment policy with a principal value of $50000 He
loses sight in both eyes in a hunting accident
$50000 The policy will usually pay the principal amount for the loss of both eyes or two or more
limbs.
Equity Indexed Annuities
Equity Indexed Annuities invest on an aggressive basis in order to yield higher returns
Equity Indexed Annuities have guaranteed minimum int
Kevin and Nancy are married Kevin is the primary breadwinner and has a health insurance policy
that covers both him and his wife Nancy has a
COBRA.
The classification Small Employer means any person actively engaged in a business that on at
least 50% of its working days during the preced
At least 2 and not more than 50 persons.
An individual applies for a life policy Two years ago he suffered a head injury from an accident
so he cannot remember parts of his past but
The policy will not be affected.
Which of the following is NOT an example of controlled business
A licensee writes policies solely for friends and their families Controlled business is
defined as insurance written on the interests of the
In franchise insurance premiums are usually
Lower than individual policies but higher than group policies.
Who is responsible for making sure that agents are properly trained in the use of the
suitability standards for LTC policies
Insurer.
Which of the following is NOT an example of controlled business
A licensee writes policies solely for friends and their families Controlled business is
defined as insurance written on the interests of the
In franchise insurance premiums are usually
Lower than individual policies but higher than group policies.
Who is responsible for making sure that agents are properly trained in the use of the
suitability standards for LTC policies
Insurer.
Which of the following is NOT an example of controlled business
A licensee writes policies solely for friends and their families Controlled business is
defined as insurance written on the interests of the
In franchise insurance premiums are usually
Lower than individual policies but higher than group policies.
Who is responsible for making sure that agents are properly trained in the use of the
suitability standards for LTC policies
Insurer.
Which of the following is NOT an example of controlled business
A licensee writes policies solely for friends and their families Controlled business is
defined as insurance written on the interests of the
In franchise insurance premiums are usually
Lower than individual policies but higher than group policies.
Who is responsible for making sure that agents are properly trained in the use of the
suitability standards for LTC policies
Insurer.
Which of the following is NOT an example of controlled business
A licensee writes policies solely for friends and their families Controlled business is
defined as insurance written on the interests of the
In franchise insurance premiums are usually
Lower than individual policies but higher than group policies.
Who is responsible for making sure that agents are properly trained in the use of the
suitability standards for LTC policies
Insurer.
Under the Replacement Regulation Rule 16 1 which of the following statements would best
describe the producers duties
The producer must conduct a reasonable investigation to determine if a replacement will take
place.
Which of the following is TRUE regarding variable annuities
The annuitant assumes the risks on investment.
What is a major problem with naming a trust as the beneficiary of a life insurance policy
They are expensive to administer.
What required provision protects against unintentional lapse of the policy
Grace period.
Under the Accidental Death and Dismemberment coverage what type of benefit will be paid to the
beneficiary in the event of the insured's acc
Principal sum.
An association could buy group insurance for its members if it meets all of the following
requirements EXCEPT
Has at least 50 members All of the above characteristics would make an association group
eligible for buying group insurance except the grou
Which of the following is NOT true regarding a business entity
Business entity does not need an insurance license A business entity acting as an insurance
producer is REQUIRED to obtain an insurance prod
All of the following would be different between qualified and nonqualified retirement plans
EXCEPT
Taxation on accumulation.
The insurer may suspect that a moral hazard exists if the policyholder
Is not honest about his health on an application for insurance.
What type of annuity can be purchased with a single premium and provides benefit payments
immediately
Immediate.
In case of a loss the indemnity provision in insurance policies
Restores an insured person to the same financial state as before the loss.
In a defined contribution plan
The contribution is known and the benefit is unknown.
When a producer is trying to reinstate a lapsed license what kind of fees would he be required to
pay
The producer will have to pay a penalty 3 times the unpaid renewal fees.
Which nonforfeiture option has the highest amount of insurance protection
Extended Term.
A corporation is the owner and beneficiary of the key person life policy If the corporation
collects the policy benefit then
The benefit is received tax free.
Which of the following riders would NOT cause the Death Benefit to increase
Payor Benefit Rider.
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
Every company possessing a certificate of authority must notify the Commissioner of the
election or appointment of every new director or pri
30 days.
What is a standard time limit for a pre-existing condition period in an ICHIA policy
3 months.
Under the Fair Credit Reporting Act if the consumer challenges the correctness of the
information contained in his/her report the reporting
Respond to the consumer's complaint.
All of the following apply to defined benefit plans EXCEPT
All of the following apply to defined benefit plans EXCEPT
defined benefit plans
defined benefit plans
Defined benefit plans are not tied to the employing companys profit however the employer is
obligated to provide a certain specified retirem
Which of the following is TRUE regarding a policy issued to a labor union insuring members of
the organization for the benefit of persons ot
The members eligible for insurance under the policy must be all the members of the union or
organization.
In the transaction of insurance which of the following is considered to be representing the
client
The broker.
The Waiver of Cost of Insurance rider is found in what type of insurance
Universal Life.
What authority is responsible for examining the operations of insurance companies in this
state
The Commissioner.
If the Commissioner issues a cease and desist order but the producer continues the same
activities the producer can face a fine up to which
$50
Which of the following would NOT be eligible for a health insurance policy from the Indiana
Comprehensive Health Insurance Association
A person who applied for Medicaid 90 days prior to applying for the Association policy.
A long-term care shopper's guide must be presented at what point
Prior to the time of application.
An insured was involved in an accident and could not perform her current job for 3 years If the
insured could reasonably perform another job
2 years Under an Own Occupation plan.
An employee is insured under her employer's group life plan. If she terminates her group
coverage which of the following statements is INCOR
The insured may choose to convert to term or permanent individual coverage WHEN coverage is
converted to an individual policy the insurer wi
The Probationary Period is
A specified period of time that a person joining a group has to wait before becoming eligible
for coverage.
Annuity contracts grow tax deferred That means that
There is no current income taxation upon the growth in the annuity.
Which statement regarding insurable risks is NOT correct
Insureds cannot be randomly selected GRANTING insurance must not be mandatory selecting
insureds randomly will help the insurer to have a fa
All of the following would NOT be considered eligible expenses under an ICHIA policy EXCEPT
AIDS treatment.
A temporary license may be obtained for all of the following situations EXCEPT
A producer's retirement.
Which of the following is INCORRECT concerning taxation of disability income benefits
All of the following would NOT be considered eligible expenses under an ICHIA policy EXCEPT
AIDS treatment.
A temporary license may be obtained for all of the following situations EXCEPT
A producer's retirement.
Which of the following is INCORRECT concerning taxation of disability income benefits
If paid by the individual the premiums are tax deductible.
Who is protected by an Interim Insuring Agreement
The applicant and the insurer.
If a company transacts any business of insurance without a certificate of authority what
isthe maximum penalty that can be charged to the d
Civil penalty of $25,000