Florida Life and Health Insurance practice questions & Answers(RATED A), Exams of Insurance law

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Florida Life and Health Insurance practice questions & Answers(RATED A) Within how many days must a licensee notify the Department of Financial Services of a change in address? - ANSWER 30 All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT... - ANSWER An agent's commission Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - ANSWER The amount of premium collected at this location Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years - ANSWER 5 Agents that have been licensed for less than six years must complete __ hours of continuing education every two years - ANSWER 24 A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time? - ANSWER 48 What is the maximum percentage of controlled business an agent may produce? - ANSWER 50% A group plan was recently terminated. In Florida how many days are covered individuals guaranteed coverage after a group plan's termination? - ANSWER 31 days The Financial Services Commision may hold hearings... - ANSWER For any reason deemed necessary In Florida, an insurer domiciled and incorporated in this state is called... - ANSWER Domestic company According to Florida law, which of the following statements accurately describes an admitted mail order insurance company? - ANSWER It may solicit insurance business by mail only without the assistance of a licensed Florida agent According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age... - ANSWER 64 years or older Which action could result in a hearing being ordered by the Department of Financial Services? - ANSWER Performing insurance transactions without a license Which of the following professional organizations has its code of ethics incorporated into Florida law? - ANSWER National Association of Insurance and Financial Advisors (NAIFA) Which entity approves the insurance policy forms used in Florida? - ANSWER Office of Insurance Regulation (OIR) In Florida, agents are allowed to engage in rebating if... - ANSWER Offered to all insured in the same actuarial class In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the... - ANSWER Florida Replacement Rule In Florida, an element of an insurance transaction would be... - ANSWER Issuing an insurance contract The Bureau of Unclaimed Property is overseen by... - ANSWER The chief financial officer One of the stated purposes of the Life and Health Insurance Guaranty Association is... - ANSWER To assist in the prevention of insurer insolvencies The Life and health Insurance Guaranty Association is funded by... - ANSWER Assessments on member companies The purpose of the Guaranty Fund is to... - ANSWER Ensure that claims filed against involvement insurance companies will be paid The rules and regulations of the Life and health Insurance Guaranty Association apply to... - ANSWER Life and health policies issues by companies authorized in that particular state The fund that assures policyholder payment of benefits on Life and Health Policies, if the company is involved at the time of the claim, is called the... - ANSWER The Life and Health Insurance Guaranty Association A stock life insurance company that issues both participating and nonparticipating policies is doing business on... - ANSWER Mixed plan A stock insurance company is owned by - ANSWER Its stockholders Who is a mutual insurance company owned by? - ANSWER Its policyholders Replacement is involved in all of the following situations EXCEPT when... - ANSWER A Term policy is converted to a permanent plan with the same insurance company Which policy is EXEMPT from replacement regulations? - ANSWER Group life policy Which of the following statements is CORRECT about the replacement of one insurance policy with another? - ANSWER It is strictly regulated and requires full disclosure by both the agent and the replacing insurance company Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company? - ANSWER The agent who sells the new insurance policy Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance? - ANSWER The transaction is considered a replacement When replacing or exchanging an annuity, the agent must disclose to the annuitant... - ANSWER The possible tax ramifications as a result of the transaction A life insurance policyowner may sell their policy to a(n) ___ in order to receive a percentage of the policy's face value - ANSWER Viatical settlement provider A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is... - ANSWER Viatical settlement Group life policies MUST include all of the following provisions EXCEPT... - ANSWER Right to loan proceeds Which of the following employees may NOT be excluded from a group life plan? - ANSWER Full-time employees after a probationary period All of the following provisions are required in a group life policy EXCEPT... - ANSWER An accidental death and dismemberment provision Which of the following is a standard provision of the conversion privileges in a Group Life Policy? - ANSWER Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis An individual covered under a Group Life insurance policy is considered to be... - ANSWER A certificate holder The conversion period for a terminated employee to convert group life coverage to an individual plan is... - ANSWER 31 days T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert... - ANSWER To an individual policy upon employment termination J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? - ANSWER All of the employees must be notified of the cancellation either by the insurance company or through J Individual life insurance proceed are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's - ANSWER estate All of the following provisions must be included in life insurance policies EXCEPT... - ANSWER Extended term If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely... - ANSWER Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age An insurance company can contest a life insurance contract due to application fraud within... - ANSWER 2 years Which of the following BEST describes Credit Life Insurance? - ANSWER Insurance issued on a debtor to cover outstanding balances on installment loans Which of the following areas of state regulation is NOT protected by the savings clause in ERISA? - ANSWER Commerce According to Florida law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - ANSWER The premiums for the handicapped child are not paid The Florida Employee health Care Access Act was established to make... - ANSWER Group health insurance available to employers with up to 50 employees What do families pay that are covered by the Florida Healthy kids Corporation? - ANSWER A portion of the premium What is required in the Florida Employee Health Cares Access Act? - ANSWER Small group benefit plans are to be issued on a "guaranteed-issue" basis In Florida, the underwriting and issuance of a master group health policy requires that all employees... - ANSWER Are eligible to participate, regardless of their individual health history Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - ANSWER Limitations on preexisting condition for up to 12 months Employers with less than __ employees are affected by Florida's health Insurance Coverage Continuation Act (Mini COBRA) - ANSWER 20 In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? - ANSWER Naturopaths Florida requires that coverage for newborns begins "from the moment of birth" and continues for... - ANSWER 18 months A long-term care lapse notice must be delivered to both the applicant and... - ANSWER Secondary addressee An agent MUST give a prospective insured in Outline of Coverage when taking an application for... - ANSWER Medicare Supplement Policy Individual Medicare Supplement policies must allow an insured a MINIMUM of how many days after policy delivery to return the policy and receive a refund of premium? - ANSWER 30 days Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - ANSWER Projection of the policy's future costs Under a Long-Term Care policy, which of the following is considered an activity of daily living? - ANSWER Dressing A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - ANSWER 12 The Free-Look provision of any health policy begins the date... - ANSWER The policy is delivered to the insured Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - ANSWER The outline of coverage The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond... - ANSWER 6 months An Outline of Coverage for Medicare Supplement policy MUST be given to the applicant at which of the following times? - ANSWER The time of application When is a Group Health policy required to provide coverage for a newborn child? - ANSWER At the moment of birth An insurance company may NOT reject a prospective insured's life application on the basis of - ANSWER gender With a Medical Expense policy, what does hospitalization expense cover? - ANSWER Hospital room and board A long-term care ride in a life insurance policy pays a daily benefit in the event of which of the following? - ANSWER Inability of the insured to perform more than 2 activity of daily living Which requirement must be met for an associate to be eligible for a group life plan? - ANSWER Group was formed for a purpose other an acquiring insurance Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? - ANSWER 30 All of these are characteristic of an Adjustable Life policy except - ANSWER Face amount can be adjusted using policy dividends J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? - ANSWER 20-pay life An accident policy will most likely pay a benefit for a - ANSWER Off the job accident Which of these are NOT an example of a Nonforfeiture option? - ANSWER life income A policy loan is made possible by which of these life insurance policy features? - ANSWER Cash value provision The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a - ANSWER Closed panel Which of the following is NOT included in the policy face? - ANSWER excisions A young, married teacher has 2 children and owns a whole life policy. If the teacher wants an increasing death benefit to protect against inflation, the teacher should select which ofthe following Dividend Options? - ANSWER Paid-up additional insurance In Florida, a health policy that is paid on a quarterly basis requires a grace period of - ANSWER 31 days A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? - ANSWER 20 Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant? - ANSWER risk classification Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first 6 months. Q suddenly dies and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? - ANSWER Aleatory An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to - ANSWER Determine if the applicant is an acceptable risk by competing standard underwriting procedures What is being delivered during a policy delivery? - ANSWER Insurance contract to the proposed insured If a retiree on Medicare required for hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? - ANSWER Medicare supplement According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? - ANSWER no minimum The Notice of Claims provision requires a policy owner to - ANSWER Notify an insurer of a claim within specified time What type of policy would only provide courage for specific types of illnesses (cancer, stroke, etc)? - ANSWER dread disease insurance How are policyowner dividends treated in regards to income tax? - ANSWER Interest on accumulations is taxed What would be an accurate definition of "controlled business" - ANSWER Insurance business that is written on the agent's own life, property, or interests M purchases a 470,000 Life Insurance policy with premium payment of $550 a year for the first 5 years. At the beginning of the 6th year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain $70,000 throughout the life of the policy. The type of policy that M has purchased is - ANSWER Modified premium life T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled, what can he likely expect? - ANSWER Less than $5,000 per month benefit regardless of the disability When an insurance company sends a policy to the insured with an attached application, the lament that makes the application part of the contract between the insured and the insurance is called the - ANSWER Entire contract provision An example of unfair discrimination would be - ANSWER Offering different terms of coverage for different policyowners having the same risk classification Which accident and health policy provision addresses preexisting conditions? - ANSWER Time limit on certain defenses How does a typical variable life policy investment account grow? - ANSWER Through mutual funds, stocks, bonds When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? - ANSWER Conversion provision In a qualified retirement plan, the yearly contributions to an employee's account - ANSWER Are restricted to maximum levels set by the IRS Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - ANSWER Miliation on preexisting conditions for up to 12 months A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? - ANSWER 31 days T owns a Accident and Health policy and notified her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? - ANSWER increase her policy's coverage amount 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? - ANSWER 3000 → 11,000 x .20 + 1,000 K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insured. This type of policy is considered? - ANSWER Guaranteed renewable Which mode of payment is NOT used by health insurance policies? - ANSWER single premium An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - ANSWER Loss of eyesight due to an accidental injury In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and - ANSWER the initial premium The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person up an insured's death is called a - ANSWER insuring agreement Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy? - ANSWER Increase face amount A 42-year old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need? - ANSWER Universal life → characterized by flexible premiums and adjustable death benefit Which of the following statements BEST describes what the Legal Actions provision of an ancient and health policy requires? - ANSWER An insured must wait at least 60 days after proof of loss has been submitted before a lawsuit can be filed Which of these is an element of a single premium annuity? - ANSWER Lump-sum payment According to the time limit of certain defenses provision in an individual health insurance policy, non fraudulent misstatements first become incontestable - ANSWER Two years from the date of the policy was issued Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - ANSWER Split dollar plan T took out a $50,000 life insurance policy with an accidental death and dismemberment rider. Five years later, T commits suicie. How much will the insurer pay? - ANSWER $50,000 Z owns a Disability income policy with a 30-day elimination period. Z contracted pneumonia that left him unable to work from Jan 1 until Jan 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on - ANSWER March 1 Which of these is NOT considered to be a right give to a policyowner? - ANSWER Modify a provision in the insurance contract? Whose life is covered on a life insurance policy that contains a payor benefit clause? - ANSWER Child Which type of renewability best describes a disability income policy that covers an individual until the age of 65, but the insurer has the rights to change the premium rate for the overall risk class? - ANSWER Guaranteed renewable Which of the following policy features allows an insured to defer current health changes to the following year's deductive instead of the current year's deductive? - ANSWER Carryover provision When does a probationary period provision become effective in a health insurance contract? - ANSWER At the policy's inception Which of the following statements about accumulated interest earned on dividends from an insurance policy is true? - ANSWER It is taxed as ordinary income Which of the following actions is NOT possible with a universal life policy? - ANSWER Premiums may be applied as a credit against income tax D is an architect receiving disability income benefits who is not able to return to work full time, but can work on a part-time basis. Which of the these features would allow D to continue receiving benefits - ANSWER Residual benefit clause → based on a proportion of income actually lost to the partial disability Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? - ANSWER Florida Life and Health insurance guaranty association D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed? - ANSWER level term N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase? - ANSWER Fixed deferred An insurance company can contest a life insurance contract due to application fraud within - ANSWER 2 years A noncontributory group term life plan is characterized by - ANSWER The entire cost of the plan is paid for by the employer Which of the following organizations would make reimbursement payment directly to the insured individual for covered medical expenditures? - ANSWER Commercial insurer Which of these types of policies may not have the automatic premium loan provision attached to it? - ANSWER decreasing term An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - ANSWER full face amount minus any past due premiums which type of insurance company allows their policy owners to elect a governing body? - ANSWER mutual policyholders what kind of special needs would a policy owner require with an adjustable life insurance policy? - ANSWER flexible premiums S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? - ANSWER equity index insurance when an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve? - ANSWER takes into account the present value of future income earned by the breadwinner What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? - ANSWER family maintenance policy What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - ANSWER waiver of premium rider Group/voluntary long-term care policy premiums are typically deducted from the employee's income and - ANSWER are less costly as compared to individual long-term care coverage All of these statements about the Waiver of Premium provision are correct EXCEPT - ANSWER insured must be eligible for social security disability for claim to be accepted which of these types of coverage is best described as a short term medical policy? - ANSWER interim coverage What does a Guaranteed Insurability rider provide a Disability Income policyowner? - ANSWER the ability to periodically increase the amount of coverage only WITHOUT evidence of insurability A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of the application. How will the insurer handle this claim? - ANSWER claim will be paid and coverage will remain in force What is being delivered during a policy delivery? - ANSWER Insurance contract to the proposed insured Which of these statements concerning an individual disability income policy is true? - ANSWER Normally includes an elimination period Which of the following professional organizations has its code of ethics incorporated into Florida law? - ANSWER National association of insurance and financial advisors (naifa) Which of the following situations does not apply to the florida replacement rule? - ANSWER An existing policyholder purchases an addition policy from the same insurer One becomes eligible for social security disability benefits after having been disabled for - ANSWER 5 months Post tax dollar contributions are found in - ANSWER Roth IRA investments An insurance company can contest to a life insurance contract due to application fraud within - ANSWER 2 years Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - ANSWER Life income S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? - ANSWER Full benefits are payable under the master contract A 55 year old recently received a $33,000 distribution from a previous employer's 401K plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? - ANSWER income taxes plus a 10% penalty tax on $30,000 when a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - ANSWER void the policy only if it is discovered during the contestable period and proven to be material a medical care provider which typically delivers health services at its own local medical facility is known as a - ANSWER health maintenance organziation a CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. which type of policy will pay a monthly benefit to the personal assistant? - ANSWER major medical which of the following is a characterstic of a variable annuity? - ANSWER underlying equity investment all of these statements concerning settlement options are true, except - ANSWER only the beneficiary may select M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - ANSWER policy proceeds Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - ANSWER subrogation The benefits under a disability buy-out policy are - ANSWER Payable to the company or another shareholder Which of these statement accurately describes the waiver of premium provision in an accident and health policy - ANSWER Premiums are waived after the insured has been totally disabled for a specified time period Which of these statements is NOT the reason for purchasing life insurance on the life of a minor? - ANSWER If both parents were to die, it would provide death benefits to the child K purchased a $10,000 life policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. K purchased which of the following types of policies? - ANSWER Endowment at age 65 In Florida, the underwriting and issuance of a master group health policy requires that all employees - ANSWER Are eligibility to participate, regardless of their individual health history Under the USA Patriot Act, insurers are required to report receipt of cash payment in excess of - ANSWER 10,000 The universal life policy is called an unbundled life policy because he policyholder can see the expense charges, the interest earned, and the - ANSWER Cost of insurance Equity indexed annuities are invested in which of the following - ANSWER S&P 500 Which of the following provisions guarantees that premiums will be waived if a juvenile life policyowner becomes disabled? - ANSWER payor clause K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - ANSWER Modified whole life Which rider provides coverage for a child under a parent's life insurance policy? - ANSWER child term rider T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the - ANSWER primary carrier What is a warranty? - ANSWER Is a statement guaranteed to be true Which policy requires an agent to register with the national association of securities dealers before selling? - ANSWER variable life According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age - ANSWER 64 years or older A policy loan is made possible by which of the following life insurance policy features? - ANSWER Cash value provision An insurer received proof of loss for an acceptable medical expense claim under an individual health insurance policy. Under the time of payment of claims provision, the insurer must pay the benefits - ANSWER Immediately When is the face amount paid under a joint life and survivor policy? - ANSWER Upon death of the last insured Which statement about a whole life policy is correct? - ANSWER Cash value may be borrowed against When determining the monthly benefit amount for a disability income policy, the factor that limits the amount a prospective insured may purchase is - ANSWER income An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - ANSWER Long term care S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependent to continue their group health coverage for a maximum of how many months under COBRA regulations? - ANSWER 36 When a life insurance policy exceeds certain IRS table values, the result would create which of the following? - ANSWER Modified endowment contract Which of the following BEST describes a hospital indemnity policy? - ANSWER Coverage that pays a stated amount per day of a covered hospitalization What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida law? - ANSWER 0% All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - ANSWER interest only a life insurance policy that provides a policy owner with cash value along with a level face amount is called - ANSWER whole life which of these is not considered to be a right given to a policyowner - ANSWER modify a provision in the insurance contract Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - ANSWER representations a policy that becomes a MEC - ANSWER will lose many of its tax advantages which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? - ANSWER joint life which of the following best describes a short-term medical expense policy? - ANSWER nonrenewable A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance, would require how many policies? - ANSWER 6 Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - ANSWER inspection report a variable insurance policy - ANSWER does not guarantee a return on its investment acounts Variable Whole Life Insurance can be described as - ANSWER both an insurance and securities product All of these are characteristics of an Adjustable Life policy EXCEPT - ANSWER face amount can be adjusted using policy dividends In Florida, most life insurance policies have a contestability period of - ANSWER 2 years How are policyowner dividends treated in regards to income tax? - ANSWER interstate's on accumulations is taxed which of these is an element of a variable life policy? - ANSWER a fixed, level premium which of the following does social security NOT provide benefits for? - ANSWER dismemberment an immediate annuity consists of a - ANSWER single premium how does an indexed annuity differ from a fixed annuity? - ANSWER indexed annuity owners receive credited interest tied to the fluctuations of the linked index All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - ANSWER interest only what type of insurance policy covers two people and pays upon the death of the lost insured? - ANSWER suvivorship traditional individual retirement annuity (IRA) distributions must start by - ANSWER April 1st of the year following the year of the partipant attains age 70.5 what is the purpose of the time of payment claims provision? - ANSWER prevents delayed claim payments made by the insurer All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for - ANSWER modified whole life W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim? - ANSWER the proceeds would be reduced based on whatever the premium would have been if purchased at age 59 Which of these life products is NOT considered interest-sensitive? - ANSWER modified whole life which of the following actions is not possible with a universal life policy? - ANSWER premiums may be applied as a credit against income tax what action can a policyowner take if an application for a bank loan requires collateral? - ANSWER assign policy ownership to the bank When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n) - ANSWER anti-money laundering violation what type of group insurance plan involves employees sharing the cost? - ANSWER contributory plan N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities? - ANSWER flexible installment deferred which of the following statements best describes dental care indemnity coverage? - ANSWER services are reimbursed after insurer received the invoice 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? - ANSWER nonoccupational coverage S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning - ANSWER November 1 A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as the - ANSWER a representation what types of life policy covers 2 lives and pays the face amount after the first one dies? - ANSWER joint life policy which of these factors does not influence an applicant's need for life insurance? - ANSWER self-maintenance expenses D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - ANSWER the full face amount all of these statements about equity indexed life insure are correct except - ANSWER the premiums can be lowered or raised, based on investment performance P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? - ANSWER $50,000 minus any outstanding policy loans P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? - ANSWER sign an enrollment card An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet? - ANSWER consideration clause