Exam 4 Flashcards by Rhonda Sky

IF INSURED UNDER VARIABLE LIFE INS DIES

AMOUNTS ARE DEDUCTED FROM DEATH benefit

Loans are waived

AMOUNTS ARE DEDUCTED FROM DEATH
Benefit

vlad

How well did you know this?

Not at all

Perfectly

All examples of third party ownership of life ins policy except

Insured purchased new home insured Mae an absolute assignment f life ins policy to mortgage company

Insured borrows money from bank and makes a collateral assignment of part of the death benefit to secure the loan

How well did you know this?

Not at all

Perfectly

If hmo is cancelled how long must insurer give insured

45 days

30 days

How well did you know this?

Not at all

Perfectly

Upon submission of death claim under life ins policy when must insurer pay policy benefit

Immediately after recg written proof of loss

Sodt

How well did you know this?

Not at all

Perfectly

What authority is responsible for examining operations of ins companies in this state

Commissioner

Guaranty association

Commissioner

How well did you know this?

Not at all

Perfectly

Which of following is another term fo authorized insurer

Certified

Admitted

How well did you know this?

Not at all

Perfectly

During replacement of life ins a replacing insurer must do which of

Send a copy of notice regarding replacement to department of ins

Obtain a list of all life ins policies that will be replaced

Obtain a list of all life ins polices that will be replaced

How well did you know this?

Not at all

Perfectly

Married couple owns permanent policy which covers both of their lives and pays death benefit only upon death of first insured

Survivorship life policy

Joint life policy

First Insured=Joint life policy

Fijlip like Philip

How well did you know this?

Not at all

Perfectly

Which is true re variable annuities

Companies guarantees minimum interest rate

Annuitant assumes risk on investment

Annuitant assumes risks on investment

How well did you know this?

Not at all

Perfectly

Premium payments for personally owned disability income policies are

Not tax deductible

Tax deductible

Not tax deductible

Podnot

Or
Nd tf not down to fall

How well did you know this?

Not at all

Perfectly

If a consumer requests additional info concerning an investigative consumer report how long does insurer or reporting agency have to comply

5 days

3 days

5 days

How well did you know this?

Not at all

Perfectly

Under which Nonforfeiture option does company pay surrender value and have no further obligations to policyowner

Paid up

Cash surrender

How well did you know this?

Not at all

Perfectly

Which re biz overhead expense policies is not true

Benefits are usually limited to six months

Any benefits recd are taxable to the business

Benefits are usually limited to six months

Bob6

How well did you know this?

Not at all

Perfectly

Universal life ins policy is best described as an

Annually renewable term policy with a cash value account

Variable life with a cash value account

Annually renewable term policy with a cash value account

Ular universal life annually renew

How well did you know this?

Not at all

Perfectly

Which is not covered under plan a medigap

Medicare part a deductible

20% part b coinsurance amounts for Medicare approved services

Medicare part a deductible

How well did you know this?

Not at all

Perfectly

Which product provides income for specified period of years or life and protects person against outliving their money

Annuity

Survivorship life policy

Annuity

How well did you know this?

Not at all

Perfectly

All of following info about applicant is identitied in the general info section of life ins application except

Education

Occupation

Education

How well did you know this?

Not at all

Perfectly

Which is not true re basic surgical expense coverage

There is not deductible

Coverage is unlimited

Ciubs or
BsEXCEPTcu

How well did you know this?

Not at all

Perfectly

Individual is purchasing a permanent life ins policy with face value of 25000. While this is all ins he can afford he wants to be sure that additional coverage will be available

Guaranteed insurability option GIO

Guaranteed renewable option

Guaranteed insurability GIO
25000=GIO

How well did you know this?

Not at all

Perfectly

Death protection component of universal life ins is always

Annually renewable term

Decreasing term

Annually renewable term

Ul=ar

How well did you know this?

Not at all

Perfectly

Which entity has authority to make changes to an ins policy

Producer

Ins executive officer

Ins exec officer

How well did you know this?

Not at all

Perfectly

Which of following is available to employers of all sizes

Hra

Msa

Hra

How well did you know this?

Not at all

Perfectly

Insured pays monthly premium of 100 for her health ins. Duration of grace period under policy?

10 days

31 days

10 days

How well did you know this?

Not at all

Perfectly

Limited pay life policy example

Life paid up at age 65

Level term life

Life paid up at age 65

How well did you know this?

Not at all

Perfectly

Nonforfeiture option provides coverage fo longest period of time Extended term Reduced paid up

Reduced paid up Non longest= nlrpu or Nocrpu Lprpu

Initial period of time specified in disability income policy that must pass after policy is in force before loss can be covered Probationary period Elimination period

Probationary period Dipppp

Typical deductible for basic surgical expense ins 0 200

Must acknowledge text of notice of claim within 15 30

15 NOC Nocf Knockfirst or Tonoc is 15 years old

Each hmo enrollee must be provided Evidence of coverage Buyer’s guide

Evidence of coverage hmoeoc

Most hmo operate through what type of system Group formed principally for purpose of obtaining hmo coverage Group enrollment system either at their place of employment or as member of association

Hmoges Group enrollment system either a their place of employment or as a member of an association

In all plans under Aca how any essential benefit categories are there 10 12

10 Aca

Upon submission of death claim under life ins policy when must insurer pay policy benefit 30 days 2 months

Sodt

Forcing client to buy ins from particular lender as a condition of granting a loan is defined as Rebating Coercion

Coercion forcing

Policyowner wants to make sure upon his death the life policy will pay a portion of proceeds annually to espouse but principal will be paid to their children when reach certain age. Which settlement Interest only Joint and survivor

Interest only Caio

Couple receives a set amount of income from annuity. Wife dies husband no longer recs annuity payments. What annuity Joint life Joint and survivor

Joint life Wdjl or Wifeyjointlifey

Which of following statements regarding taxation of modified endowment contracts is false Policy loans are taxable distributions Withdrawals are not taxable

Withdrawals are not taxable mec Mecwnt

Which option for universal life allows beneficiary to collect both death benefit and cash value upon death of insured Option a Option b

Option b Ulbb

Which of the following is not provided by an hmo Financing Reimbursement

Reimbursement NOT hmo

Which would be considered non qualified retirement plan Split dollar Roth IRA

Split dollar nqsd

Feature of a disability buyout plan Taxable benefits Lump sum benefit payment option

Taxable benefits Dbtb Dis buyout tax benef

Not included in general info section of application for insurance Medical background Occupation

Medical background

Typical accident death and dismemberment policy covers all of following except Income Life

Income Tad NOT i income

License will terminate within how many days from due date of obligatory fees and continuing education requirements 180 90

90 Lt90 years old! Or Of90

Primary diff between health maintenance organization network models and group models Network model hmo contracts with multiple physician groups to provide services to memebers Network model hmo requires members to pay coinsurance costs after meeting the initial deductible requirement

Network model hmo contracts with multiple physician groups to provide services to memebers nm!pg rating Hmo multiple pg Nmmp Network model multiple physicians

Upon submission of death claim under life ins policy when must insurer pay policy benefit 2 months 30 days

2 months

Most hmo operate through what system Group enrollment system either at their place of employment or as member of an association Individual subscribers

Group enrollment system either at their place of employment or as member of an association

What percentage of containing education hours must be in classroom setting 50 75

50 Cr50 years old!!

Insured purchased 10 year level term life policy that is guaranteed renewable and convertible. What happens at end of 10 years Insured may only convert policy to another term policy Insured may renew the policy for another 10 years but at a higher premium rate

Insured may renew the policy for another 10 years but at a higher premium rate 101010hpr

For how long is an ins company allowed to defer policy loan requests 6 months 30 days

6 months Def6

Nonforfeiture values guarantee which of following for policyowner That cash value will not be lost That death benefit will be paid in a lump sum

That cash value will not be lost Nglostnot Nvcvl

Which health ins provision describes the insured’s right to cancel coverage Renewal provision Cancellation provision

Renewal provision Cancelrenpro

Which statement concerning group health ins is correct Employer is policyholder Only employer recs certificate of ins

Employer is policyholder

An insured misstated her age on an app for an individual health ins policy. Ins company found mistake after contestable period had expired. Ins company will Adjust the claim benefit to reflect the insured’s true age Pay the full amount of claim bc the contestable period has ended

Adjust the claim benefit to reflect the insured’s true age

Which life ins settlement option guarantees payments for lifetime of recipient but also specifies a guaranteed period during which if the original recipient dies the payments will continue to a designated beneficiary Life income with period certain Joint and survivor

Life income with period certain OrLrlip Original recipient lifetime recipient lip

Fixed amount settlement= Fas=

Size of each installment= Size

Hmo operate through Group enrollment system Individual fee for service

Group enrollment system

Hmo canceled give insured 45 30

How long commissioner in office 4 years 2

By gov every 2 years

Not required in outline of coverage Basic info about ins company Basic info about supplementary policy

Basic info about supplementary policy

Not commonly used n credit life ins Whole life Decreasing

Whole life Clw like claw

Insurers must offer Reduction of tax remount Shortened benefit period

Reduction of tax remount

Hmo act of 1973 No longer forced to offer hmo Minimum number has decreased

No longer forced to offer hmo

Individual Disability Income Premiums Benefits

Nd Nt

Group Disability Income Premium Benefit

Dd for employer Taxable Gdi, ddet like good day! With accent Or Gdi Ddet Oh, goodie..debt

Individual Medical Premium Benefit

Nd Nt

Group Medical Premium Benefit

Dde Nt Hello, gm, Ddent or Hm Ddent on

/Individual Long-Term Care Prem Ben

Nd Nt

Group Long-Term Care Prem Ben

Dde Nt GlocDdent

Individual Medicare Supplement Prem Ben

Nd Nt Ims not down not tired like tims

Group Medicare Supplement Prem Ben

Dde Nt Gramasddent in wall!

Buy-Sell Prem Ben

Nd Nt

Key Person Prem Ben

Nd Nt

Business Overhead Expense Prem Ben

Dde T Boeddet like snake debt

Msa Prem Ben

Dd Nt meds T end of year

Fsa

Nd Nt

Hra Prem Ben

Dd Nt Hraddnt Human Resources Don’t do not tired Or Henderson Rhonda ann don’t do no tired

Hsa Prem Ben

Dd Nt med T2065nonmed

Personally Owned Health Insurance Prem Ben

Nd Tf Po ndtf pissed off Not down to fall

Jlp

1st dies

Jas

2nd dies

Jas

Either alive

Premium of survivorship policy compared with joint life policy Half the amount Lower

Lower

When policy is surrendered for cash value Policy can be converted to term coverage Coverage ends and policy cannot be reinstated

Coverage ends and policy cannot be reinstated Surrendered =no reinstate

Differences between individual and group health except Individual ins does not require medical exams while group ins does require medical exams Individual coverage can be written on an occupational basis group plans cove only nonoccupational

Individual ins does not require medical exams while group ins does require medical exams

Who must have insurable interest in the insured Policyowner Beneficiary

Policyowner

Another term for accumulation period of annuity Pay in period Annuity period

Pay in period

Under extended term Nonfortfeiture option policy cash value converted to Same face amount as in whole life policy Higher face amount as in whole life policy

Same face amount as in whole life policy

All true re installments for fixed amount except Payments will stop when annuitant dies Option pays specific amount until funds are exhausted

Payments will stop when annuitant dies

In forming an ins account when does acceptance usually occur When insured submits application When insureds underwriter approves coverage

When insureds underwriter approves coverage

Who can make changes to an ins policy Producer Ins executive officer

Ins exec officer

Right to change premium amounts Continuation provision Insurers rights

Continuation provision

Regulations regarding replacement apply to Renewable term Replacement of existing policy by same insurer

Renewable term

Responsible for reporting termination of debt to insurer Creditor Debtor

Creditor

Not allowed in credit life ins Creditor requiring that a debtor buys ins from a certain insurer Creditor having a collateral assignment in the policy

Creditor requiring that a debtor buys ins from a certain insurer

Hmo policy may be canceled or renewed if Does not reside in the hmo service area Removed coverage for dependents

Does not reside in the hmo service area

To become texas ins agent an individual must Have passed a licensing exam within the 12 months before applying File a personal financial statement with the commissioner for the previous three years

Have passed a licensing exam within the 12 months before applying

Unfair trade practice of defamation Making derogatory oral statements about another insurers financial condition Refusing to deal with others

Making derogatory oral statements about another insurers financial condition

Which is not allowed on n credit life insurance Creditor requiring that debtor buys insurance from certain insurer Creditor sending agent to insure on credit report

Creditor requiring that debtor buys insurance from certain insurer

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new ins

Replacement rule

All insurers that provide life or accident and health ins coverage in texas must be members of what association

The life and health ins guarantee association

Circulating deceptive sales material to public is what type of unfair trade practice False advertising Misrepresentation

False advertising

What is the minimum percentage of a licensees total volume of premiums in a calendar year that must come from business other than controlled biz

25 Mp25 years old

According to state Nonfortfeiture law for life ins policies insurers must offer at least one of the following except Reduction of premium Reduction of copayment

Reduction of premium Nfrop

Commissioner of ins issues cease and desist order and f agent wishes to contest the charges in court how many days after the order was issued does agent have to make request

60 Cd 60 years old

Classification of small employer means

At least two and not more than 50

Which of following is example of agents fiduciary responsibility

Forwarding premiums to the insurer

Insurer purchased a noncancellable health ins policy one year ago: which is not reason for ins to cancel policy The insured is in an accident and incurs a large claim Payout is reached

The insured is in an accident and incurs a large claim

Individual buys flexible premium deferred life annuity with 20 year period certain What would beneficiary Rec if died five years after beginning annuity phase Payments for 5 years Payments for 15 years

Payments for 15 years

For group medical and dental ins what percentage of premium paid by employer is deductible as biz expense

100

Cannot refer to any document that is not contained in the contract

Entire contract clause

Insured decides to surrender 100000 whole life. Premiums add up to 15000. At surrender cash was 18000

3000

Class designation means Naming beneficiaries as a group Naming beneficiaries

Naming beneficiaries as a group

Commissioner of insurance issues cease and desist and immediately received request for charges to be reviewed in hearing. Within How many days must hearing be held 60 30

Exam 4 Flashcards

(113 cards)