EXAM

Question 1

when an insured applies for reinstatement of a health policy and recieves a conditional receipt, how long does the insurer have to approve or deny

Answer 1

within 45 days of the date of application

Question 2

typically, a disability income rider will pay

Answer 2

a monthly income for as long as the insured remains totally and completely disabled

Question 3

extended residence in a nursing home is covered by a

Answer 3

long term care policy

Question 4

if premiums are paid more frequently than annually, the policyowner can expect to

Answer 4

have a higher total outlay of dollars for the coverage for that year

Question 5

on Nov 10 ozzies major medical policy is reinstated. he is later injured in an automobile accident on Nov 13 and immediately hospitalized. he is elidgable for

Answer 5

full benefits

Question 6

periodic benefit payments must be made no less frequently than

Answer 6

monthly

Question 7

the notice of claim provision states the insured notify the insurance company within…… days of a claim

Answer 7

20

Question 8

the proceeds of a life insurance policy can be paid in a form other than lump sum called

Answer 8

settlement options

Question 9

medicare advantage (part C) allows utilization of benefits through

Answer 9

HMO, PPO, or traditional insurer

Question 10

the long term care partnership program is designed to allow seniors to

Answer 10

shelter assets from the spend down requirements of medicaid

Question 11

what is not true regarding medicare supplement policies

Answer 11

must include a minimum 20-day free-look provision

Question 12

what is true concerning the fixed period option?

Answer 12

the principal amount gradually decreases to zero

Question 13

what will not result in an increase in life insurance policy dividends

Answer 13

higher reserves

Question 14

janet is retired and looking to invest a lump sum of money through an insurance company. which product would be best suited for this?

Answer 14

annuity

Question 15

medicare eligibility is typically based on

Answer 15

age

Question 16

the witholding of facts in an insurance application is called

Answer 16

concealment

Question 17

under a HMO service providers are paid a fixed monthly fee for each member. this is called

Answer 17

capitation

Question 18

what is vesting?

Answer 18

the employees right to the employers contributions in a retirement plan if employment terminates prior to retirement

Question 19

the period of time during which a surviving spouse doesnt qualify for social security survivor or retirement benefits is called

Answer 19

the blackout period

Question 20

a policyowner can collect the face amount on what type of policy?

Answer 20

endowment policy

Question 21

a collateral assignment allows a policyowner to assign

Answer 21

a portion of the policy proceeds to the assignee

Question 22

john is an annuitant who has surrendered his annuity at age 55. what will he pay?

Answer 22

tax on the interest earned

Question 23

A long term care policy has a minimum renewability level of:

Answer 23

guaranteed renewable

Question 24

carol is a life insurance policyowner who has transferred her ownership to a third party in exchange for a percentage of the death benefit. what is this called?

Answer 24

viatical settlement agreement

Question 25

eligible participants are required to make premium payments for which part of Medicare

Answer 25

part B

Question 26

anita is an office clerk at the time she purchases a disability income policy. she later changes her career to a king crab fisherman. if she ever becomes injured on the boat, the change of occupation provision states that the insurer can

Answer 26

adjust the benefits

Question 27

bart is injured and provides notice of a health claim to his insurer he later recieves the required claims forms. within how many days of the loss must bart file proof of loss with the insurance company?

Answer 27

90

Question 28

jan is named irrevocable beneficiary of jim's life insurance policy, what does he need her permission for?

Answer 28

to borrow the policy's loan value

Question 29

katherine is a retiree and was recently hospitalized for 10 days. which type of insurance policy would best cover her for excess hospital expenses?

Answer 29

medicare supplement

Question 30

the premium payment mode which results in the highest total premium is

Answer 30

monthly

Question 31

the notice of claim provison states that the insured notify the insurance company within...... days of a claim

Answer 31

20

Question 31

a preferred provider organization (PPO) contract typically uses which payment arrangement

Answer 31

negotiated fee-for-service

Question 32

a retirement plan intended for a sole proprietor and his/her employees would be an

Answer 32

keogh plan

Question 33

what will not result in an increase in life insurance policy dividends

Answer 33

higher reserves

Question 34

health maintenance organizations and preferred provider organizations are both considered to be

Answer 34

managed health care systems

Question 35

what best describes a health maintenance organization

Answer 35

provides full medical services that stress preventative medicine

Question 36

what is not an example of insurable interest

Answer 36

an airline insuring the lives of its passengers

Question 37

why are insurance contracts said to be contracts of adhesion

Answer 37

one party writes the contract and the other party must accept the contract as written

Question 38

at what point does a whole life policy pay the face amount

Answer 38

upon insureds death or reaching age 100

Question 39

a collateral assignment allows a policyowner to assign

Answer 39

a portion of the policy proceeds to the assignee

Question 40

within how many calender days must all clean electronic health insurance claims be paid in alabama

Answer 40

30

Question 41

when can a lapsed life insurance policy usually be reinstated

Answer 41

within 3-5 years of policy lapsing

Question 42

john is an annuitant who has surrendered his annuity at 55. what will he pay

Answer 42

tax on interest earned

Question 43

a life insurance policyowner has just exercised the policy's reduced paid up option. what is true

Answer 43

the amount of coverage will be much less than the original coverage

Question 44

a life insurance producer's agency agreement normally authorizes the licensee to do all of the following except

Answer 44

issue policies

Question 45

tim has a universal life policy. the cash value growth in his policy is

Answer 45

interest sensitive

Question 46

what will the insurance company pay once the stop loss is exceeded on a major medical policy

Answer 46

100% of covered expenses

Question 47

buying land with the anticipation of it going up in value is an example of

Answer 47

speculative risk

Question 48

john purchases insurance because he expects to experience a loss. this is known as

Answer 48

adverse selection

Question 49

risk is best defined as the

Answer 49

uncertainty of loss

Question 50

after the insurance company recieves a written request, an insured may have health insurance benefits paid to

Answer 50

anyone designated by the insured

Question 51

katherine is a retiree and was recently hospitalized for 10 days, what type of insurance policy would best cover her for excess hospital expenses

Answer 51

medicare supplement

Question 52

the long term care partnership program is designed to allow seniors to

Answer 52

shelter assets from the spend down requirements of medicaid

Question 53

which of the following is true concerning the fixed period option

Answer 53

the principal amount gradually decreases to zero

Question 54

under a HMO service prviders are paid a fixed monthly fee for each member. this is called

Answer 54

capitation

Question 55

a policyowner can collect the face amount on what type of policy

Answer 55

endowment policy