Indiana Insurance Regulations and Requirements, Exams of Insurance law

Download Indiana Insurance Regulations and Requirements and more Exams Insurance law in PDF only on Docsity! Indiana State Life and Health Insurance Exam How many days is a temporary producers license valid? 30 60 90 180 -ANS 180 In Indiana, the maximum fine the the commissioner can impose on a producer or company who violates a cease and desist order is___per violation? $10,000 $15,000 $20,000 $25,000 -ANS $25,000 Which of these is an example of twisting? A producer maliciously aligns another insurance company's financial status A producer misrepresents a policy to induce a policyowner to surrender an existing policy A producer reduces the commission in order to sell a policy A producer induces a policyowner with something of value to purchase a policy -ANS A producer misrepresents a policy to induce a policyowner to surrender an existing policy Which of the following is a requirement to obtain a nonresident producer license in Indiana? Maintain a specific sales quota in resident state Own real estate in Indiana Be licensed as a producer in the producer's state of domicile Pass a special examination for nonresident producers -ANS Be licensed as a producer in the producer's state of domicile P is a producer who is licensed in Indiana, but a resident of Michigan. In Indiana , P is considered to be a____Producer? Nonresident Foreign Alien Reciprocal -ANS Nonresident If an existing Accident and Health policy is being replaced with a new policy, the decision to replace should not be based on? Waiting Periods Commissions to be Paid Producer engages in false advertising Producer commingles premiums collected with a personal account -ANS Producer represents more than one insurance company A producers license may be denied, suspended, or revoked if the licensee? Engages in replacement of an existing policy Is found guilty of misrepresentation in obtaining the license Files for bankruptcy Does not meet a sales quota -ANS Is found guilty of misrepresentation in obtaining the license During the course of an insurance business transaction, who does the producer legally represent? Producer Insured Insurance Company Beneficiary -ANS Insurance Company An example of rebating would be? Returning a portion of a premium as inducement to purchase insurance Reducing the premium across the board for a specific risk class A mutual insurance company paying dividends to its policyowners Using intimidation in order to restrain or monopolize the business of insurance -ANS Returning a portion of a premium as inducement to purchase insurance Which of the following is a requirement to be eligible for a group life policy in Indiana? Group must be formed for a purpose other than obtaining insurance Group must designate one of its members to be the named insured Group must have been formed for obtaining insurance Group must include at least five employers -ANS Group must be formed for a purpose other than obtaining insurance What is required for a Producer to be in compliance with Rule 13, Life Insurance Advertising? A potential Applicant must be told the the Producer is currently licensed for any Life Insurance transaction A potential Applicant must be told that Life insurance is the exclusive subject of the sale A Producer is required to notify potential Applicants that dividends are guaranteed A Producer is required to have all sales materials approved by the commissioner -ANS A potential Applicant must be told that Life insurance is the exclusive subject of the sale When a life insurance application is completed, a Policy Summary must be given to the applicant. The Policy Summary must include? The insurers AM Best rating The Producers address Cash value rate The premiums cost for basic coverage applied for -ANS The premiums cost for basic coverage applied for All of these statements are true regarding a child qualifying for coverage under the Indiana children Health Insurance Program, except? Must be a resident of Indiana to qualify Must be 19 years of age to qualify Family's income level must be greater than 150% of Federal poverty level, but less than 200% Must have been born in the united States to qualify -ANS Must have been born in the united States to qualify The Insurance Commissioner may suspend, revoke, or refuse to renew a producer's license for which of the following reasons? Producer files for bankruptcy Producer engages in the replacement of an existing policy Producer has used fraudulent, coercive, or dishonest practices Producer does not meet a sales quota -ANS Producer has used fraudulent, coercive, or dishonest practices The Commissioner is appointed be the? Governor Attorney General State Senate NAIC -ANS State Senate The coordination of benefits provision exists in order to? Avoid duplication of benefits payments Avoid excessive hospitalization Lower insurance premiums Maximize patient care -ANS Avoid duplication of benefits payments According to Indiana law, how long is the Free Look period for a Medicare Supplement Policy? 10 Days 20 Days 30 Days 40 Days -ANS 30 Days How long does an insurance company appointment remain in force for? 1 Year 2 Years 3 Years Until Terminated -ANS Until Terminated Which of the following is not an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit be offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details -ANS Needing written documentation of claim details The Affordable Care Act provides health coverage to dependents up to the age of? 18 21 26 28 -ANS 26 to continue health coverage for a newborn, the policyowner must notify the insurer of birth and provide the first premium payment within ____ days of birth? 10 15 30 31 -ANS 31 What does a certificate of authority allow? A nonresident producer to conduct insurance business An insurance company to exceed coverage limits that the Guaranty Fund covers An insurance company to conduct insurance business in Indiana If a new life insurance policy is replacing an existing one, the insured is given the right to return for a full refund of at least ____ days after policy delivery? 10 20 30 40 -ANS 20 What is required for Producers to sell Long Term Care in Indiana? Eight hours of post licensing education specifically devoted to LTC Twelve hours of post licensing education specifically devoted to LTC A Chartered Long Term Care designation Passing a separate examination specifically devoted to Long Term Care -ANS Eight hours of post licensing education specifically devoted to LTC S is a life insurance policyowner who enters into a written agreement to receive immediate cash in exchange for the sale transfer of her life insurance policy. This agreement is referred to as a? 1035 Exchange Viatical Settlement Equity Cash Agreement Cash Conversion -ANS Viatical Settlement The Indiana Children's Health Insurance Program provides children of need with health benefits until the child reaches age ____ or becomes financially ineligible, whichever is earlier? 18 19 20 21 -ANS 19 A life policy loan in Indiana cannot charge a fixed of interest higher than? 7% 8% 9% 10% -ANS 8% According to Indianas Mammography Coverage statue, which of these benefits are considered mandatory in every Medical Expense Policy? One baseline mammogram for women between ages 30-34 One mammogram every year for women aged 35 and older One mammogram every year for women aged 40 and older Two mammograms every year for those considered "women at risk" -ANS One mammogram every year for women aged 40 and older What is the minimum Grace Period for an individual health policy that is paid monthly? 5 Days 10 Days 15 Days 30 Days -ANS 10 Days What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan? 30% 40% 50% 60% -ANS 50% The Common Disaster clause provides that if both the insured and sole named beneficiary were to die in a common accident, which of the following is true? This clause provides the payment of proceeds to the insured's estate This clause provides the payment of proceeds to the beneficiary's estate The estate taxes in the insured's estate may be reduced The estate taxes in the beneficiary's estate may be reduced -ANS This clause provides the payment of proceeds to the insured's estate Employees who suffer non-work related disabilities, since work-related disabilities are covered be Workers' Compensation -ANS Employees who suffer non-work related disabilities, since work-related disabilities are covered be Workers' Compensation In order to establish a Health Reimbursement Arrangement, it must? Be offered in conjunction with other employer provided health benefits Limit the benefits to prescription drugs only Be established be the employer Limit the amount of money the employee can contribute toward the account -ANS Be established be the employer The Accidental Death and Dismemberment provision in a life insurance policy would pay additional benefits if the insured? Dies of natural causes Becomes critically ill Becomes chronically ill Is blinded in an accident -ANS Is blinded in an accident Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? Revocable Assignment Beneficiary Change Irrevocable Assignment Collateral Assignment -ANS Collateral Assignment If an insurance company issues a Disability Income policy that it cannot cancel for which it cannot increase premiums, the type of renewability that best describes this policy is called? Noncancellable conditionally Renewable Cancellable Guaranteed Renewable -ANS Noncancellable L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will? Pay the death benefit in full Adjust the death benefit to an increased amount Adjust the death benefit to a reduced amount Deny the claim -ANS Adjust the death benefit to a reduced amount Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? Modification Conversion Exchange Adjustable -ANS Conversion Life insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "Qualifying event" under these riders? Seasonal Unemployment Short-Term Disability Medical Condition resulting in a significantly-shortened lifespan Divorce -ANS Medical Condition resulting in a significantly-shortened lifespan Which of these would e considered a Limited-Pay Life policy? 10-year Renewable and Convertible Term Life Paid-Up at age 70 Straight Whole Life Renewable Term to Age 100 -ANS Life Paid-Up at age 70 Medicaid was designed to assist individuals who are? Federal employees Which of the following consists of an offer, acceptance, and consideration? Warranty Estoppel Contract Representation -ANS Contract Life insurance replacement regulation protects the interest of? The Policyowner The Producer The Insurer The NAIC -ANS The Policyowner If an annuity is terminated prior to beginning of the income payment period, the contract owner receives? No refund money The contract surrender value at the time All premiums paid up to the date of termination Reimbursement of all expenses deducted from the contract value -ANS The contract surrender value at the time Eligible employees must be added to group health coverage no later than ____ days after their first day of employment? 30 45 60 90 -ANS 90 ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has? Waived one of its legal rights Issued a voidable policy Committed an act of fraud Assigned the risk to a reinsurer -ANS Waived one of its legal rights 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 The gross premiums is lower on a monthly payment mode as compared to being paid annually The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis -ANS The gross premium is higher on a monthly payment mode as compared to being paid annually Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? Geographical Location Source of Income Risk Classification Marital Status -ANS Risk Classification From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? Fair Credit Reporting Act Medical Information Bureau Part 3 of the Application Life Insurance Buyer's Guide -ANS Fair Credit Reporting Act Which Unfair Competition Practice involves a producer suggesting that an insurance policy is like a share of stock? Twisting Intimidation Misrepresentation Sliding -ANS Misrepresentation Basic Medical Expense insurance? Life Settlement Contract Buy-Sell Arrangement 1031 Exchange -ANS Life Settlement Contract Which of the following is an example of false advertising? An insurer advertising in an insurance trade journal An insurance company publishing misleading information about its policy's provisions A producer spending more than $25 on marketing gifts for a client Paid testimonials from celebrity endorsements -ANS An insurance company publishing misleading information about its policy's provisions Jill is covered under two Group Health policies, one through her employer and one through her husband's employer. If Jill suffers a loss, which policy provision dictates the primary coverage? Replacement Time Payment of Claims Notice of Claim Coordination of Benefits -ANS Coordination of Benefits An example of rebating would be A mutual insurance company paying dividends to its policyowners Reducing the premiums across the board for a specific risk class Offering a client something of value not stated in the contract in exchange for their business Using intimidation in order to restrain or monopolize the business of insurance. -ANS Offering a client something of value not stated in the contract in exchange for their business All of the following statements regarding group health insurance is true except? Premiums are usually determined by the claims experience of the group A master contract is issued for the group An individual policy is given to each member Group health insurance premiums are typically lower than individual health insurance premiums -ANS An individual policy is given to each member Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? Aleatory Adhesion Unilateral Consideration -ANS Aleatory Which of the following statements regarding a Tax Sheltered Annuity is incorrect? The income from the TSA is received income tax-free The amount contributed is deductible from taxable income The interest earnings are tax deferred A tax-sheltered annuity is available to employees of non-profit organizations -ANS The income from the TSA is received income tax-free An applicant must receive an Outline of Coverage when an applicant is taken for a? Endowment Annuity Medicare Supplement Policy Universal Life Policy -ANS Medicare Supplement Policy What would be an accurate definition of "controlled business"? Insurance business that is written on the producer's own life, property, or interests Insurance business obtained by an agent through coercion, intimidation, or boycotting Insurance business that is obtained through false advertising Which of the following is the most important factor when deciding how much Disability Income coverage an applicant should purchase? Applicant'sOccupation Applicant's Monthly Income Applicant's Health Applicant's Previous Disabilities -ANS Applicant's Monthly Income A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. which of these statements made by the producer would be correct? Straight life accumulates faster than Limited-Pay Life 20-Pay Life accumulates cash value faster than Straight Life Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurers financial rating 20-Pay Life and Straight Life accumulate cash value at the same rate -ANS 20-Pay Life accumulates cash value faster than Straight Life In the event of employment termination, a person covered by a group policy also has the right to convert such coverages to an individual policy within____days without proving insurability? 15 30 31 45 -ANS 31 Which of these is considered a statement that is assured to be true in every respect? Estoppel Warranty Guarantee Representation -ANS Warranty Which of the following is a requirement to obtain a nonresident producer license in Indiana? The producer must be at least 21 years of age The producers state of residence must have reciprocity with Indiana The producer must be bonded in the producers state of domicile The producer must pass a special examination for nonresident producers -ANS The producers state of residence must have reciprocity with Indiana Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? Indemnity Subrogation Legal Action Consideration -ANS Subrogation Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? Modified Whole Life Variable Life Universal Life Adjustable Life -ANS Variable Life P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? Accelerated Benefits Provision Entire Contract Accidental Death & Dismemberment Clause Consideration Clause -ANS Accidental Death & Dismemberment Clause Information obtained from a phone conversation to the proposed insured can be found in which of these reports? Agent's Report MIB Report Inspection Report Attending Physician's Report -ANS Inspection Report Which premium schedule results in the lowest cost to the policyowner? The legal Action provision in Indiana stipulates that the? Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file Insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file Insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file -ANS Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Interest Only Fixed Period Fixed Amount Life Income -ANS Life Income Why would the Insurance Commissioner issue a temporary license? To allow a person who failed the state exam to conduct insurance business To allow a nonresident producer to conduct business in Indiana To allow the personal representative of a deceased producer to provide service to existing policyowners To allow a producer to sell for an unauthorized insurer -ANS To allow the personal representative of a deceased producer to provide service to existing policyowners What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? State Guaranty Association Fair Labor Standards Board Fair Credit Reporting Act National Association of Insurance Commissioners -ANS Fair Credit Reporting Act An Indiana resident insurance producer must preform which of the following actions to continue with their license? Retake the state exam Complete a pre-licensing course Meet continuing education requirements Maintain a sales quota -ANS Meet continuing education requirements Which of these is considered a mandatory provision? Payment of Claims Insurance with Other Insurers Misstatement of Age Change of Occupation -ANS Payment of Claims S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? Accelerated death benefit rider Return of premium rider Family income rider Term rider -ANS Return of premium rider XYZ Corp was issued a Group Health policy for its employees. Under this plan a? Certificate must be issued to XYZ, and a policy must be issued to each employee Certificate must be issued to XYZ and each employee Policy must be issued to XYZ, and a certificate must be issued to each employee Policy must be issued to XYZ and each employee -ANS Policy must be issued to XYZ, and a certificate must be issued to each employee The provision that defines to whom the insurer will pay benefits to is called? Entire Contract An insurer exaggerating its dividends in a magazine advertisement An producer spending more than $25 on marketing gifts for a client An insurer advertising in an insurance trade journal -ANS An insurer exaggerating its dividends in a magazine advertisement In a Medical Expense Health Insurance policy, what is considered to be the Limiting Age? The age at which dependent children can be taken off an insurance policy The age at which pre-existing conditions are not taken into consideration The age at which an insured can convert a group plan to an individual plan The age at which dependent children can purchase their own insurance -ANS The age at which dependent children can be taken off an insurance policy Which of these options can an individual use their medical flexible spending account to pay for? Vitamins and supplements Prescription drugs Household expenditures Cosmetic procedures -ANS Prescription drugs To be eligible for Social Security disability benefits, an employee must be unable to preform? Any occupation His/her current occupation Any occupation that reflects the employee's education level Any occupation that the employee is qualified and willing to do -ANS Any occupation Which Long Term Care insurance statement is true? Inflation protection is usually not offered Benefits are usually payable for alcohol rehabilitation Can only be offered to individuals under the age of 70 Pre-existing conditions must be covered after the coverage has been in force for 6 months -ANS Pre- existing conditions must be covered after the coverage has been in force for 6 months An accident policy will most likely pay a benefit for a? Self-inflicted injury Critical illness On-the-job accident Off-the-job accident -ANS Off-the-job accident The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a? Closed panel Open panel Co-op panel Capitation panel -ANS Closed panel A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? Only income taxes on $30,000 Only income taxes on $24,000 Income taxes plus a 10% penalty tax on $30,000 Income taxes plus a 10% penalty tax on $24,000 -ANS Income taxes plus a 10% penalty tax on $30,000 A "reimbursement policy" pays what amount of covered Long-Term Care expenses? All expenses regardless of the policy limits Actual covered expenses up to the daily maximum Commissioner Applicant Producer Insurance Company -ANS Producer If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of? Insurer Beneficiary Reinsurer Insured -ANS Insured Which of the following is not an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit by offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details -ANS Needing written documentation of claim details An example of rebating would be A mutual insurance company paying dividends to its policyowners Reducing the premiums across the board for a specific risk class Returning a portion of a premium as inducement to purchase insurance Using intimidation in order to restrain or monopolize the business of insurance -ANS Returning a portion of a premium as inducement to purchase insurance J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Irrevocable Contigent Primary Revocable -ANS Revocable If a producer commits an act of coercion or intimidation, how would the producer's insurance company be held responsible for this act? If the insurer only suspends the producer, not terminate If the insurer reduces the commission level of the producer If the insurer approves of the act If the insurer does not make a public announcement of the act -ANS If the insurer approves of the act With Optionally Renewable Health policies, the insurer may? Renew the policy only if no claims have been filed the previous year Renew the policy only with the insured'd consent Review the policy whenever they please and determine whether or not to renew it Review the policy annually and determine whether or not to renew it -ANS Review the policy annually and determine whether or not to renew it With Optionally Renewable Health policies, the insurer may? Renew the policy only if no claims have been filled the previous year Renew the policy only with insured's consent Review the policy whenever they please and determine whether or not to renew it Review the policy annually and determine whether or not to renew it -ANS Review the policy annually and determine whether or not to renew it A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered except for? Hospital Charges Variable Fixed -ANS Variable How long is the typical free-look period for Long-Term care insurance policies? 20 Days 30 Days 40 Days 50 Days -ANS 30 Days What is the maximum Social Security Disability benefit amount an insured can receive? 50% of the insured's Primary Insurance Amount (PIA) 75% of the insured's Primary Insurance Amount (PIA) 100% of the insured's Primary Insurance Amount (PIA) 100% of the insured's Primary Insurance Amount (PIA) minus any monies received from a retirement plan -ANS 100% of the insured's Primary Insurance Amount (PIA) An example of rebating would be? A mutual insurance company paying dividends to its policyowners Reducing the premiums across the board for a specific risk class Offering a client something of value not stated in the contract in exchange for their business Using intimidation in order to restrain or monopolize the business of insurance -ANS Offering a client something of value not stated in the contract in exchange for their business What is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a simple retirement plan? 25 50 100 250 -ANS 100 Which is true concerning a Variable Universal Life policy? Policyowner controls where the investment will go and selects the amount of the premium payment Policyowner has no say where the investment will go but can choose the premium mode The investment vehicle for this type of policy is held in the insurer's general portfolio The death benefit can vary but the policyowner has no say in the premium amount paid -ANS Policyowner controls where the investment will go and selects the amount of the premium payment According to Indiana Law, how long can statements made by an Applicant on a Health insurance policy be contested? 2 Years 3 Years Anytime During the Free-Look period -ANS 2 Years What is the Suicide provision designed to do? Decline an applicant who is contemplating suicide Safeguard the insurer from an applicant who is contemplating suicide Protect the insurer from ever paying a claim that results from suicide Allows the insurer the option to pay a death benefit in the event of suicide -ANS Safeguard the insurer from an applicant who is contemplating suicide which of the following actions is not possible with a Universal Life policy? Policy's cash value may be used to pay premiums Premium payments may be made at unscheduled times Premiums may be applied as a credit against income tax Face amount may be adjusted -ANS Premiums may be applied as a credit against income tax Alcohol Rehabilitation Severe car accident -ANS Leukemia Group life insurance policies are generally written as? A term rider Annually renewable term Increasing term Group whole life -ANS Annually renewable term Which of the following statements is correct about the insurance commissioner's authority to examine the business records of a producer? The commissioner has no authority to examine them The commissioner may examine them whenever it's deemed necessary The commissioner must examine them at least twice every 5years The commissioner must examine them at least twice every 3 years -ANS The commissioner may examine them whenever it's deemed necessary A life policy loan in Indiana cannot charge a fixed rate of interest higher than? 7% 8% 9% 10% -ANS 8% Which of the following will happen if a licensed resident insurance producer moves to another state? Producer will need to forfeit residual commissions in the home state Producer's license shall terminate immediately Producer automatically qualifies for a license Producer remains a resident agent for another 12 months in the original state of licensure -ANS Producer's license shall terminate immediately What is the face amount of a Whole Life policy paid? At the policy's maturity date only When the insured dies or at the policy's maturity date, whichever happens first Only when the insured dies When the policy is surrendered -ANS When the insured dies or at the policy's maturity date, whichever happens first An insurer must provide an insured with claim forms within __ days after receiving notice of a loss? 5 10 15 20 -ANS 15 Which of the following will a Long Term Care plan typically provide benefits for? Disability Income Death Unemployment Home Health Care -ANS Home Health Care An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable? No deduction allowed $2,500 $2,000 $1,000 -ANS $2,500 What type of life insurance incorporates flexible premiums and an adjustable death benefit? Endowment Policy Modified Whole Life Decreasing Term Policy loans may still be made Full coverage continues Grace period terms are stated in the policy -ANS Past due premiums are waived Which of he following would be a valid reason for suspending or revoking an insurance producer's license? The producer has been convicted of a misdemeanor within the past 10 years The producer unintentionally made a material misstatement on the license application The producer has misappropriated money held in a fiduciary capacity The producer has filled for personal bankruptcy within the last 5 years -ANS The producer has misappropriated money held in a fiduciary capacity W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a? Flexible Premium Deferred annuity Variable annuity Immediate annuity Straight Life annuity -ANS Immediate annuity An individual covered under a Group Life insurance policy is considered to be a? Annuitant Policyowner Certificate Holder Contingent -ANS Certificate Holder A policy of adhesion can only be modified by whom? The agent The applicant The primary beneficiary The insurance company -ANS The insurance company Kathy has a family Health Insurance policy where any dependent children she has are removed from the policy once they have reached a certain age. This policy is known as? Maturation Date Coming of Age Limiting Age Expiration Date -ANS Limiting Age Which of the following is a standard provision of the conversion privileges in a Group Life policy? Group Life coverage can only be converted if the employer pays for the individual policy Group Life coverages can normally be converted to an individual policy within 6 months Group Life coverages can only be converted by providing evidence of insurability Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis - ANS Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies? Proceeds will go to the primary beneficiary's estate Probate will decide who receives proceeds Proceeds will go to the contingent beneficiary proceeds will go to the insured's estate -ANS Proceeds will go to the contingent beneficiary M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? Claim payment is equal to physician's actual charges Claim payment is negotiated between physician and patient Determined by the schedule of benefits from the hospital Determined by the terms of the policy -ANS Determined by the terms of the policy File a covered claim Assign ownership Cancel the coverage Adjust the premium payments -ANS Adjust the premium payments 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? Insuring Time Limit on Certain Defenses Grace Period Free-Look -ANS Time Limit on Certain Defenses P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? Claim will be denied and policy terminated Claim will be partially paid claim will be paid Claim will be denied -ANS Claim will be denied Medicare Part B does not cover? Occupational Therapy Inpatient Hospital Services Physician and Surgeon Services Medical Equipment Rental -ANS Inpatient Hospital Services Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage? 1 6 12 24 -ANS 6 One becomes eligible for Social Security disability benefits after having been disabled for? 3 Months 5 Months 6 Months 12 Months -ANS 5 Months