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Insurance Flashcards

(98 cards)

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1
Q

30-year decreasing term.

A

paying off the outstanding balance of a 30-year mortgage in the event of the insured’s death?

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2
Q

How many days notice does the ACA require insurers to give before rescinding coverage?

A

30

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3
Q

A signed good health statement may be requested by a life producer at the time of

A

Policy Delivery

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4
Q

Carol purchases a whole life policy that provides a choice of dividend options. This policy is required to include a statement that the dividends are

A

Not Guaranteeed

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5
Q

Tim is confined to a nursing home but doesn’t have a terminal illness. Which life insurance rider is designed to help pay for this type of expense?

A

Long-term care benefit rider

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6
Q

An insured is covered under a group long-term disability policy. Under this type of policy, the definition of disability based on any occupation typically applies

A

After two years of disability

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7
Q

Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further payments are permitted and the income stream begins in 15 years. This contract is a(n)

A

Single premium deferred annuity

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8
Q

What is the grace period required for an individual accident and health insurance policy with monthly premiums?

A

10 days

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9
Q

Insurable interest involves what assumption?

A

One person benefits from another person’s continued life

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10
Q

Which of these policies is considered a whole life policy?

A

Single premium life

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11
Q

Which of the following would be considered an unfair claims settlement practice?

A

Misrepresenting pertinent policy provisions relating to coverage after a loss

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12
Q

A policyowner is permitted to take out a policy loan on a whole life policy at what point?

A

When the policy has a cash value

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13
Q

New York workers compensation laws exclude benefits for disabilities caused by

A

Intentional, self-inflicted injuries occurring on the job

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14
Q

When premiums are determined, one factor would be the expenses of the

A

Insurer

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15
Q

During open enrollment for Medicare Supplement coverage, an applicant MUST be at least

A

There is no minimum age requirement

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16
Q

What happens to the cash value of a market value adjusted annuity if it’s surrendered prior to the end of the stated guarantee period?

A

Subject to market value adjustment

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17
Q

Which of the following contracts offer deferred taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value?

A

Flexible premium fixed annuity

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18
Q

Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis?

A

Her employer’s group accident and health plan

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19
Q

Which statement regarding the certificate of insurance is accurate?

A

It indicates evidence of an employee’s insurance coverage

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20
Q

According to the ACA, the proportion of premium revenues spent on clinical services and quality improvements is called the

A

Medical loss ratio

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21
Q

Which of the following statements regarding the Fair Credit Reporting Act is correct?

A

If credit, insurance, or employment was denied because of an unfavorable report, the consumer must be advised

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22
Q

According to the ACA, insurers can no longer deny health coverage due to pre-exsisting conditions unless that plan is a

A

Grandfathered plan

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23
Q

Which item must be considered by an agent when determining the suitability of an annuity recommendation?

A

The client’s financial status

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24
Q

An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true?

A

Applicant has a right to receive a copy of the report

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25
If group Health benefit levels are too high, what could be the end result?
Overutilization of the plan
26
A life insurance producer licensed in New York is authorized to
Solicit, receive and forward applications to the insurer
27
Risk retention group
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as
28
Any employee insured under a group life insurance plan is normally
Covered with term life insurance
29
A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to
Periodically purchase additional insurance
30
A policy owner has decided to replace an existing life insurance policy with a new one. The existing life policy should be terminated
After the new life policy has been issued and delivered to the policy owner
31
What typically changes at the re-entry option date found in some term life policies?
Premium
32
When an illustration is used in the sale of a life insurance policy, the illustration MUST contain a statement signed by the
Agent
33
Andy is in need of health care performed by skilled medical practitioners, but only on an intermittent basis. What level of care will his doctor likely prescribe?
Immediate care
34
An individual may receive Medicare Part A Hospital benefits, regardless of age, as long as the person has received which of the following benefits for at least 24 months?
Social security disability
35
Field underwriting by a producer
may result in the disclosure of hazardous activities of the applicant
36
Emergency health care coverage for Medicare enrollees traveling abroad is
A Medicare Supplement additional benefit
37
Which of the following statements is true regarding accident and health insurance claims that reimburse on an indemnity basis?
Claims can be sent directly to the insured
38
Who may terminate coverage under a cancelable health insurance policy?
Either the insured or the insurer
39
What is the actuarial value of a bronze level health plan?
60
40
Rick owns a variable universal life policy and chooses a variable death benefit option. What will typically happen to the death benefit as a result of this selection?
Fluctuate with changes in the cash account
41
With life insurance, the needs approach is used primarily in determining
How much life insurance a client should apply for
42
A Health Reimbursement Arrangement MUST be established
By the employer
43
Pete the agent made public statements that falsely portrayed Acme Insurance Company as avoiding claim payments. Pete may be found guilty of
Defamation
44
An insurance company willingly published false information in an insurance policy advertisement. This is an example of
Misrepresentation
45
Mary has a HSA. Distributions that she has made for anything other than qualified medical expenses are considered taxable and subject to a penalty of
20%
46
A life insurance policy provision that has the ability to reduce the death benefit is called the
accelerated (living) benefit
47
When does the producer give a premium receipt for a life insurance application?
When the initial premium has been paid with the application
48
A group health insurance policy is a contract between an
Employer and insurance company
49
What is another name for a Keogh plan?
HR 10 plan
50
A major medical expense plan typically includes coverage for hospital room and board. Which of the following is normally covered under the category "room and board"?
General nursing care
51
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the
Cost basis
52
An insurance applicant willingly gave false information on the application. This applicant would likely be found guilty of
Misrepresentation
53
Periodic health claim payments MUST be made at least
Monthly
54
If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be increased
At least once per year from when benefits begin
55
A copy of all Medicare Supplement advertisements must be submitted for approval to
The Superintendent of Insurance
56
Employees are required to work at least ___ hours per week to become eligible for a small employer health plan
20
57
How does the cost for a survivorship life policy compare to the cost of combining two separate life insurance policies?
Survivorship life policy is lower
58
Which life insurance policy option allows the policy owner to have coverage equal to the net death benefit of the lapsed policy?
Extended term nonforfeiture option
59
What would be the disadvantage of naming a trust as a beneficiary of a life insurance policy?
Trust administration fees would reduce policy proceeds
60
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
61
Who is protected with the "other insurance with this insurer" provision?
Insurance company
62
Which annuity allows contributions to an IRA?
Deffered
63
The ACA established "exchanges" in order to
Assist individuals and small business when making their health insurance purchases
64
What do Limited accident and health policies normally cover?
A specific illness or event
65
A family counseling benefit is typically offered under which of these coverages?
Hospice care
66
When a Medicare Supplement policy is replaced, the policy owner will have a free look period of ___ days.
30
67
Long Term Care policies will usually pay for eligible benefits using which of the following methods?
Expense incurred
68
Consumers who decide to exercise their right to "opt out" of the disclosure of their nonpublic personal information
Are given the chance to stop disclosure
69
John bought a deferred annuity on Mary. John amends the contract years later to name Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract?
Mary
70
What action can an insurer take to discourage malingering and false disability claims?
Limit the amount of benefits an insured can receive from two disability policies with the same insurer
71
Qualified long-term care premiums are treated for tax purposes as
Tax-deductible to the extent they exceed 7 1/2% AGI
72
A health plan offered by private insurance companies is
A Medicare Supplement
73
Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?
Guaranteed insurability rider
74
What is considered interstate travel under the Federal Fraud and False Statements Act?
Puerto Rico
75
Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate?
The premium to purchase the coverage comes from the policy's cash value
76
If a group endorses an accident and health insurance product in an advertisement, the public must be made aware of
Any control by the insurer over the group
77
Insurable interest in one's own life is legally considered as
Generally unlimited
78
How do benefit payments fluctuate over time in a variable life annuity?
Reflects changes in the market value of assets in a separate account
79
Switching Life insurance policies without tax consequence is permitted under
Section 1035 rules
80
When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium rate will be the current rate for
Ten year term insurance for a person aged 55
81
What is the effect of the market value adjustment in a market value adjustment annuity?
Transfers some of the investment risk to the policy owner
82
Which element of a contract constitutes a definite and unqualified proposal by one party to another?
Offer
83
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?
When the contract has been held for the period specified in the policy
84
A prepaid dental plan has an agreement in place with a network of dentists which
accepts an established amount as payment in full for the dental services rendered
85
Omar is covered by a disability income policy. He is hurt while performing an occupation more hazardous than the occupation listed in his policy. The policy's change of occupation provision will have what effect?
Reduce the benefit level
86
Which of the following outlines the authority given to the producer on behalf of the insurer?
Producer contract
87
The absolute assignment of a life insurance policy results in
All incidents of ownership transferred to the assignee
88
A policy owner and a life settlement provider can have a life settlement negotiated through a
life settlement broker
89
Which benefit is normally payable to a life insurance policy owner when the insured's life expectancy has been severely limited?
Accelerated (living) benefit
90
Medicare supplement insurance that provides a preventative medical care benefit will often cover
Yearly physical examinations
91
During an annuity's liquidation phase, the annuitant normally
Receives benefit payments at regular intervals
92
Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan?
Taxes must be paid on 75% of the benefits received
93
An insured files for an accident and health insurance policy claim eight days after the premium due date. The benefit payable is $500 and the overdue premium is $200. Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision, how much will the insurer pay?
300
94
XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums?
Implied Authority
95
After an applicant reads and signs an insurance application, he/she should be conscious of the fact that\
A false statement could lead to loss of coverage
96
Employer-paid qualified long-term care insurance premiums are typically
Excluded from the employee's gross income
97
How is a collateral assignment used in a life insurance contract?
Transfers specific ownership rights to a creditor
98
A preferred provider plan and an indemnity plan are similar in what way?
Both pay on a fee-for-service basis

Insurance (2 decks)

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