Quck Read Flashcards

life insurance policy
Terms Definitions
Equity Indexed Whole Life is policy with what kind of index as its invested?
Who of the following would be covered for the diagnosis and treatment of infertility?
A 36 yo who has been working with a doctor to treat her infertility for 3 years
An applicant for insurance misstates her age at the time her life insurance application is taken. This misstatement may result in
Adjustment in the death benefit
In group insurance, what is the policy called?
Master policy
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 insurance?
Replacement rule
If a policy has an automatic premium loan provision, what happens if the policy owner dies before the loan is paid back?
The balance of the loan will be taken out of the death benefit.
The amount of disability benefits that an insured receives often depends upon the insured's
Income at the time of the application.
Carol brought an individual health insurance policy for herself. Which of the following roles does she now legally have?
Both subscriber and insured.
Which is true regarding HMO coverage?
It is divided into geographical territories.
What type of whole life insurance policy has premiums adjusted so during the first years of the policy, the premiums are lower than those of a straight whole life, and in subsequent years the premiums are higher than those of a straight whole life policy?
Modified life.
All of the following are true about the insurance Frauds Prevention Act EXCEPT
Every insurer must file a fraud prevention plan within 150 days.
How often may a life settlement provider contact an insured regarding the insured's health status if the insured's life expectancy is more than one year?
Once every 3 months
Which of the following is not a characteristic or a service of an HMO?
Contracting with insurance companies
When an individual is covered under two health insurance policies that have duplicate benefits which could make a claim for benefits because of an injury or illness profitable, it is called
Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?
Life expectancy
Which of the following is INCORRECT regarding HIPAA's creditable coverage?
The 12 months of creditable coverage must all come from the same employer
Life expectancy is used in the calculation of which of the following?
Life settlements
Regarding the "free look" provision, the insurance company
Must notify the insured of their rights
Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?
Amount paid with the accelerated death benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit
When may an insurance company use suicide as a defense against paying a death claim?
When death occurs within a specified period of time after the policy was issued
When a policy is surrendered for its cash value
Coverage ends and the policy cannot be reinstated
In terms of renewability, Medicare supplement insurance plans must be
Guaranteed renewable
How does cash value of a UL policy accumulate until withdrawn?
Tax deferred
Why is it essential for an insurer to document all correspondence with an insured?
Errors and omissions
Alden is involved in a small plane accident that renders him permanently deaf, although he does not sustain any other major injuries. Alden is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?
Full benefits
An insurer may provide commissions to an agent for the sale of a LTC policy only if the first year commission is not greater than what percentage of the first year premium?
Which of the following entities regulates variable life policies?
Securities and Exchange Commission and the Insurance Department
The main purpose of ERISA is to ensure that
Employees receive the pension and other benefits promised by their employers.
A prospective differed annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following?
Nonforfeiture option guarantees that the owner will receive a surrender value of the contract
Which of the following is the most common time for errors and omissions to occur on the part of an insurer?
Policy delivery
All of the following individuals may qualify for Medicare health insurance benefits EXCEPT
A person age 50
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
An insurance agent's responsibilities include all of the following EXCEPT
Represent the client
Which of the following is true concerning profit sharing plans that do not provide a specific formula for calculating the profits to be shared?
Contributions must be substantial and regular
All of the following are true regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
Which of the following would NOT be a violation of State Insurance regulations?
Producer C uses her license to write uncontrolled business only
Janie is on bed rest for a brain injury. She is finally released to return to some of her normal activities but is only allowed to work on a part-time basis. Which of the following could help Janie recover the portion of income lost by working only p/t?
Residual Disability Benefit
Which of the following is INCORRECT concerning Medicaid?
It is solely a federally administered program
Regarding LTC benefit periods, as the benefit periods, as the benefit lengthens, the premium
What would a physicians utilize if he/she wanted to know if a treatment is covered under an insured's plan and at what rate it will be paid?
Prospective review
A fixed annuity contract provides for
Level benefit payment
Which of the following statements is an accurate comparison between private and government insurers?
Private insurers may be authorized to transact insurance by state insurance department
Which of the following LTC Coverage s would NOT encourage an insured to receive care at home?
Residential Care
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
Insurer's guaranteed minimum rate of interest
Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as she lives. As her agent, you should recommend
Straight Life
Which of the following is true regarding the annuity period?
It may last for the lifetime of the annuitant or for a shorter period of time
In which f the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status
In a group life insurance policy, the employer may select all of the following EXCEPT
The beneficiary
The risk management technique that is used to prevent a specific loss by not exposing yourself to that activity is called
Which type of care is NOT covered by Medicare
What is the purpose of the New York State Partnership for LTC?
It combines LTC insurance and Medicaid to help people prepare for nursing home care
Which of the following terms describes making false statements about the financial conditions of any insurer that are intended to injure any person engaged in the business of insurance?
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life insurance
All of the following LTC Coverages would encourage an insured to receive care at home EXCEPT
Child Care
During 52 consecutive calendar weeks or during any one period of disability under the New York State Disability Benefit Law, no employee may be entitled to benefit for more than
26 weeks
IF an association is applying for a life settlement broker's license, which of the following requirements must the association meet?
Authorize a natural person to act individually as a broker
Which of the following statements is true regarding LTC insurance?
Every policy must offer nonforfeiture benefits to the applicant
All of the following factors are factors that an underwriter could use to select and classify risk EXCEPT
National origin
Which of the following is correct about Medicare?
The program is divided into four parts(A-D)
Which of the following does NOT have to be disclosed in a LTC policy
The aggregate amount of premiums due
The forms used to establish the terms for both parties when a person sells his life insurance policy to a 2rd unrated person is called a
Life Settlement Contract
If payment of a specific premium or subscription fee is required to provide coverage for a child, the policy or contract may require that the insurer be notified of the child's birth and pay any required fee within
30 days
All of the following are correct about the required provisions of a health insurance policy EXCEPT
A reinstated policy provides immediate coverage for an illness
An insured stop making payments on a loan taken from his cash value policy. What will most likely happen?
The policy will terminate when the loan amount with interest equals or exceeds the cash value
A pre-exsisting condition is one
For which the insured has been treated in the past
Which of the following statements is INCORRECT concerning an IRA?
Married individuals must contribute into one account for both spouses, up to a specified amount for each person
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may
Require evidence of insurability
What option allows the insured to periodically increase benefit levels without providing evidence of insurability?
Guarantee of insurability
All of the following are beneficiary designations EXCEPT
In a case where the primary beneficiary predecease the insured, in the event of the insured's death, the death benefit proceeds will be paid to
Contingent beneficiary
How long must a life insurance policy be in force before the owner can enter into a life settlement contract
2 years
What is the minimum age for applying for a life settlement broker license?
Federal law makes it illegal for any individual convicted of a crime involving dishonestly or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from a insurance regulatory authority
Wyona will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period and proof of insurability is provided. This is accomplished under the
Reinstatement provision
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
The interest credited under this option is not taxable since it remains inside the insurance policy
If an individual's license has been revoked, how soon can he/she obtain a new license?
After 1 year of the revocation
Which New York State program was instituted to make insurance available to employees whose employers do not provide group health insurance and small employers?
Healthy New York
Under what circumstances may a life insurance agent deliver a policy that is dated up to six months before the application was taken?
To avoid an increase in premium rate for the insured
Which of the following would be a qualifying event as it relates to the Consolidated Omnibus Budget Reconciliation Act(COBRA)?
Termination of Employment for "downsizing"
Which of the following statements is INCORRECT?
Medicare Part C provides prescription drug coverage
Which of the following would be a unique benefit life insurance has over other types of insurance?
It performs the function of cash accumulation
What will happen if it is impossible for an injured insured to produce proof of disability in the time specified in a contract that provides disability benefits?
Claims will be paid as contracted provided the proof is furnished as soon as possible
The inflation protection feature in long-term care policies issued in this state must provide protection for inflation at what percent annually?
A candidate for life and health agent license would need to complete how many hours of prelicensing education?
Which benefits would disability plan most likely pay?
Income lost by the insured's inability to work
Benefit periods for individual short-term disability policies will usually continue from
Six months to two years
Individual proprietor insurance policies are sometimes called
Sole proprietor
Felix disability income policy annual premium of $300 and benefit of $300 a month
An agent misrepresents the details of an insured's new insurance contract that will be replacing the current contract. Which of the following will most likely happen?
Suspension of license
When would a 20-pay whole life policy endow?
When the insured reaches age 100
The rider that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium
Key person life insurance does not reimburse a company for which of the following?
For increased pension liability resulting from a key person's death
A father owns a life insurance policy on his fifteen-year-old-daughter. The policy contains the Optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
The insured's premiums will be waived until she is 21
To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan?
How many eligible employees must be included in a contributory plan?
Which of the following must be present in all Medicare supplement plans?
Plan A
Which provision states that the insurance company must pay Medical Expense claims immediately?
Time of Payment of claims
What is an Administrative-Services Only arrangement?
The insurer provides administrative services, but not insurance protection
Which of the following statements is NOT true concerning Medicaid?
A women misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period expired. The insurance company will take which of the following actions regarding any claims issued
Adjust the claim benefit to reflect the woman's true age
Regarding LTC policies, which of the following would not be included in activities of daily living?
What kind of policy does NOT typically require proof of insurabilty?
Group insurance
Before an agent can transact business in New York, every insurer, fraternal benefit society or HMO must file with the superintendent a
Certificate of appointment
If the Superintendent finds a licensee in violation of an unfair method or unfair practice he/she will issue a
Cease and Desist Order
An insurer formed under the laws of another country is known as a/an
Alien insurer
Which of the following is not a cost saving service?
Denial of coverage
A corporation is the owner and beneficiary of the key person disability policy. If the corporation collects the policy benefit, then
The amount received is tax free
An insured's long term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long term care facility only charged a $100 per day. How much will the insurance company pay
$120 a day
John's physician submits claim information to his insurer before she actually performs a medical procedure on him. She is doing this in order to see if the procedure is covered under his insurance plan and how much it will cover. This is an example of
Prospective review
A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity?
A deferred annuity cannot be surrendered prior to annuitization. The owner must wait until the annuitization period begins to receive any payments.
Bonnie wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. Bonnie should have her husband named as the
Revocable beneficiary
What is the purpose of a fixed period settlement option?
To provide a guaranteed income for life
The First Street Church plans to sponsor a summer camp for the youth of their congregation. The type of policy they would likely need is a/an
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
In the state of New York, investors can contribute up to $235,000 for the college expenses of a designated beneficiary. What is the name of this plan?
529 Plan
What is the benefit of choosing extended term as a nonforfeiture option?
It can be converted to a fixed annuity
An insured buys a 5-year level premium term policy with a face amount of $100,000. The policy also contains renewability and convertibility options. When the insured renews the policy in five years
The premium will increase because the insured will be 5 years older than when the policy was originally purchased
The gatekeeper of an HMO helps to
Determine who will be allowed to enroll in an HMO program
In a group policy, between whom is the contract?
The employer and the insurance company
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from an insurance regulatory authority
What policy component must decrease in decreasing term insurance?
Face amount
A health insurance plan that covers all accidents and sicknesses that are not specifically excluded from the policy is referred to as a
Comprehensive plan
Rose bought three policies from the same insurer. Her benefits have exceeded the maximum allowed by the insurer. Which of the following will happen?
Full distribution of each policy's benefit
Which of the following features of the Equity Indexed Whole Life policy is NOT fixed?
Cash value growth
Medicare Part D provides
Private fee-for-service plans
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