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KY life and health- exam simulator

Terms in this set (90)

Medicare Part B excess Charges are covered by
Medicare supplements
Making, issuing or circulating any estimate, illustration, circular, or statement that distorts the terms of any policy is prohibited and defined as
Misrepresentation
The difference between group insurance and blanket health policies is
Blanket policies do not issue certificates
The divided option which reduced the annual premium payment of a life insurance policy js called the
Reduction of premium divided option
J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to being paid annually
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached
Waiver of premium
An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses?
$3,000
How often must the commissioner exam insurers
At least every three years
An insurance broker is a person who represents:
An insured or prospective insured
Individuals seeking Social Security disability income benefits must have a disability that will eventually lead to death, or be expected to last at least
12 months
Which of the following statements about health reimbursement arrangements (HRA) is correct
If the employee paid for qualified medical expenses, the reimbursements may be tax-free
MEWA (Multiple Employer Welfare Arrangement) permits?
Small non affiliated employers to insure their members
Which benefit can be found in an equity indexed annuity, but not found in a fixed annuity?
Protections against inflation
When an application for insurance is taken, the statements made by the applicant are true and accurate to the best of the applicants knowledge. These statements are considered to be:
Representations
All of these are considered to be a benefit under social security, EXCEPT for
unemployment
Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy?
31
T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called
Time Limit on Certain Defenses
An agent generally represents which of the following?
insurer
The investment gains from a Universal Life Policy usually goes toward:
cash value
The fair credit reporting act is intended to give
consumers the right to protect their own credit information
A Life insurance company has determined that a recently deceased insured had understated her age at the time of application five years prior. How will this affect the insurers claim disbursement?
Beneficiary will receive reduced policy benefits
All of the following are characteristics of the age discrimination in employee that (ADEA), EXCEPT
Affects employees age 50 and older
A change in an insurance application requires
an initial made by the applicant
When the commissioner holds an administrative hearing how many days notice must be given?
10 days
To be eligible for Medicaid benefits, an individual must:
Satisfy income and asset standards
To whom are annuity payments made to during the liquidation phase?
Annuitant
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the
Policy Loan provision
All of the following are examples of unfair trade practices, EXCEPT
Furnishing required disclosure info
Which of these is NOT a characteristic of a Health Reimbursement Arrangement (HRA) ?
Employee funds the HRA entirely
What type of policy can group term life insurance normally be converted to?
An individual permanent policy
An insured covered by life insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary?
Proceeds will go to the contingent beneficiary
Which of the following investigates or settles claims arising under insurance contracts on behalf of either the insurer or the insured?
Adjuster
The order issued by a commissioner to a person engaged in an unfair practice, which prohibits the person from continuing the practice, is known as an
Cease and desist order
Mike is applying for a Disability Income policy. Which misrepresentation is NOT considered to be material to the risk?
Not reporting a previous disability
Not reporting a serious health issue
Not reporting an accurate number of dependents
Not reporting the correct age
Not reporting an accurate number of dependents
In order for a misrepresentation or concealment on an application to void a Life insurance policy, it has to be:
material and intentional
Which of these statements regarding insurance is false?
The number of losses decrease as the number of insured units increase
When a producer submits an application that reveals personal information regarding the applicant, who supplies the privacy notice?
producer
A husband and wife own a life insurance policy with their son named as beneficiary. The wife dies first followed by the husband 5 years later. Their son receivers the policy's face amount after his father dies. What type of polish was owned.
Survivorship
Steve is a producer who offers two tickets to the Super Bowl as an incentive for John to buy a very large whole life policy. Which unfair trade practice is Steve in violation of?
Rebating
Which of the following services is NOT covered under a hospitalization expense policy?
surgeon's fees
Medicare Part B does NOT cover
Skilled nursing care
All the above
Intermediate or custodial
services of a private duty nurse
All of the above
A disabled dependent's continued coverage under a family health plan would be discontinued if:
documentation of the disability is not provided to the insurer
Which of these is NOT considered to be a cost connected with an individual's death?
Business expense
Which of the following is an alternative method of providing health insurance?
Consumer cooperative
When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?
Contributory
What is the fine for violation in he HIV testing and disclosure procedures
Not less than $50 or no more than $100
Secondary (contingent) Beneficiary is described as
Person who received the death benefits if the primary beneficiary dies before the insured
Which of these documents is signed by an applicant at policy delivered that certified no change in health has occurred since the original application date ?
Good health statement
What does the insuring clause in a life insurance contract establish
An insurers basic promise
State workers compensation programs compensate employees for lost wages and medical expense due
Occupational accidents, diseases, compensator injuries
If a life insurance policy replaces an existing policy, the insured has the right to surrender a new policy for a full refund of all premiums within
30 days
The maximum person for which a group health plan may exclude benefits for preexistibg condistuons for a participant who is not a late enrolled is
12 months
If a health insurer fails to issue a premium rate quote to an individual within 30 days after receiving a properly completed application requesting a quote, which of the following statements is true
The insurer must issue coverage to the individual and may not impose any preexisting conditions exclusion
How are surrender changed deducted in a life policy with a rear end loaded provision
Deducted with the policy is discontinued
If a life insurance policy replaces an existing policy, the insured has the right to surrender a new policy for a full refund of all premiums within
30 days
The insurance business is regulated mainly
By the individual states
J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?
Nonoccupational coverage
Which of the following is NOT a function of accidental and health insurance
A. Pays a death benefit as a result of an illness
Similar to binding receipts, which type of coverage begins immediately?
Temporary insurance agreement
In kentucky, which of the following is true for committing a fraudulent act when the amount of the claim, benefit or money received is $300 or less in the insurance industry?
All of these are true regulating fraudulent acts of less than $300
An agent is required to register with FINRA in order to sell which of the following
Variable Life
Sexual orientation, religious preference, and geographical location are not allowed to be used in the underwriting process. Why is this so?
Considered unfair discrimination
Which of the following is correct regarding fraudulent act of over $300 in kentucky
All of these are correct and are consequences of fraudulent acts ( felony, imprisonment, a fine up to $10,000 for individual $100000 for companies)
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
What is to be expected of a Modified Life policy?
An eventual change in premium payments
All of the following are unfair claims settlement practices EXCEPT
Providing claim payments to insureds accompanied by a statement setting forth the coverage under which payment is made
Which of the following statements about accumulated interest earned on dividend from and insurance policy is true
It is taxed as ordinary income
Which of the following is necessary for a risk to be considered insurable
Loss is predictable
Variable Whole Life Insurance can be described as
both an insurance and securities product
An insurer owned by its policyholders best describes
Mutual company
In a family plan, a child born after issuance of the policy would require which of the following?
Coverage brings immediately at birth no additional premium
In major medical expense policies, what is the intent of a stop loss provision
Limits an insured's out-of-pocket medical expenses
A characteristic of preferred provider organization (PPO) would be
Discounted fees for the patient
Which of the following help to reduce or avoid adverse selection
Sound underwriting
How many hours of continuing education must be devoted to agent ethics in order to renew a license
3 hours
Under kentucky, code 304.15, the madi in interest chargeable on a life insurance policy loan is which of the following
8%
Which of the following provisions may properly be contained in a Medicare supplement policy
A provision indemnifying against losses from a sickness on the same basis than losses from accident
Which of these is Not Relevant when determining the amount of personal life insurance needs
Local unemployment rates
An agent must notify the commissioner of a change in the agents legal name or address within?
30 days of the change
Upon the receipt of proof of loss from a claimant, a life or health insurers must behind any necessary investigation within
15 days
How many days does the employee have to convert to an individual policy under the conversion policy
31 days
M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for?
Determined by the terms of the policy
An insurance agent who replaces an existing policy by making false written or oral statements is committing the act of
Twisting
A producer collecting premiums from clients for his own personal use is a:
Larcenous activity
An individual health policy providing coverage on an expense incurred basis must provide that health benefits will be payable from a newborn child of the insured
From the moment of birth
What does Medicare parts A and B cover?
Part A covers hospitalization; Part B covers doctor's services
Which statement is true regarding a variable whole life policy?
A minimum guaranteed Death benefit is provided
Which of the following is a characteristic of an admitted compnay
Qualified to sell insurance
The probability of loss becoming more predictable is attributed to
law of large numbers
What is considered a valid reason for a small business to insure the lives of its major shareholder
Fund a buy sell agreement
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