PSI Life, Accident, Health Exam Questions Latest 2023/2024, Exams of Nursing

Download PSI Life, Accident, Health Exam Questions Latest 2023/2024 and more Exams Nursing in PDF only on Docsity! 1 is the initial step of the total process of insuring a health risk. - field underwriting is the process of selection, classification and rating, and determining if someone is insurable. - home office underwriting "Person" means all of the following EXCEPT 1 an association. 2 a corporation. 3 a business trust. 4 an organizational trust. - 4 an organizational trust. A places insurance with a non-admitted insurer when insurance cannot be placed with an admitted insurer - surplus lines producer A Insurance Company is directed by officers and directors and has a stated amount of capital stock owned by stockholders - Stock A beneficiary receives ample income each month from the interest earned while the insurance company retains the principal. This is referred to as: - capital conservation A licensed life agent may on behalf of a life insurer for which the life agent is not specifically appointed. - Present a proposal for insurance to a prospective policyholder A Life and Disability Analyst cannot be employed or paid by the insurer and must meet all of the following requirements, except: 1 Be a resident of the state of California 2 Be at least age 18 3 Pass a written examination prepared by the Commissioner 2 A Straight Whole Life Policy has a premium and face value for 4 Have worked as a life licensee or employee of a licensee for 5 years - 2 Be at least age 18 A loss exposure is best defined as: - the possibility of a loss A person licensed to write insurance coverage with non-admitted insurers when such coverage cannot be placed with an admitted insurer is a(n): - Surplus lines broker A policy shall specify all of the following EXCEPT 1 the property or life insured. 2 the parties between whom the contract is made. 3 the period during which the insurance is to continue. 4 the method in which the coverage amount was calculated. - 4 the method in which the coverage amount was calculated. A producer gathers information about the applicant for the insurer in order to avoid adverse selection. This is considered to be: - field underwriting A Property & Casualty Broker-Agent who is also licensed as a Life-Only agent may not charge a fee to a consumer for: - Analyzing a person's universal life insurance policy A small business owner used her life insurance policy as collateral for a bank loan. The face amount of the whole life policy was $100,000 and the original amount of the loan was $20,000. If the outstanding loan balance at the time the small business owner died was $10,000, how much will the policy's named beneficiary receive? - $90,000 the life of the insured - level guaranteed A(n) designed to produce leads must prominently disclose that 'an insurance agent will contact you', if that is the case. - advertisement According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT 1 upon dissolution of a corporation. 2 upon the termination of all contracts. 3 5 All of the following are permitted to have blanket insurance policies with specific restrictions EXCEPT 1 any union with dues-paying members. 2 a volunteer or governmental fire department. 3 a newspaper. 4 an institution of learning. - 1 any union with dues-paying members. All of the following are requirements for an applicant to be licensed as a life & disability insurance analyst EXCEPT 1 having a thorough knowledge of life or disability insurance products. 2 having been employed by an insurance company. 3 being a fit and proper person to hold the license applied for. 4 being of good business reputation and of good general reputation. - 2 having been employed by an insurance company. All of the following are restricted from entering into an insurance contract, except: 1 Minors 2 Incompetent Parties 3 Retired persons 4 Someone under the influence of drugs or alcohol - 3 Retired persons All of the following are TRUE about the rules regarding the sale of life insurance and annuities to seniors age 65 or older EXCEPT 1 the senior is entitled to have others present during any presentation by an agent, broker or insurer. 2 6 all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older a duty of honesty, good faith, and fair dealing. 3 the agent, broker or insurer is required to show a copy of their insurance license with name, address, and phone number when conducting business in the senior's home. 4 advance notice must be provided to the senior disclosing and identifying details of the visit and the agent or broker prior to the scheduled meeting. - 3 the agent, broker or insurer is required to show a copy of their insurance license with name, address, and phone number when conducting business in the senior's home. All of the following are TRUE for commissions paid to an agent for the sale of a Medicare supplement policy EXCEPT 1 gifts, bonuses, prizes, awards or finder's fees given for sales or renewals are not considered compensation. 2 commissions paid for replacing policies shall not exceed the commission paid for renewing policies. 3 first year commissions must not exceed 200 percent of commissions paid for renewing policies. 4 renewal year commissions must be the same as second year and must be for a time period of no fewer than five years. - 1 gifts, bonuses, prizes, awards or finder's fees given for sales or renewals are not considered compensation. All of the following are TRUE regarding regulation and use of an agency name EXCEPT 1 the use of the name must not mislead the public in any way. 2 the company must file with the commissioner and request approval of the name. 3 a name would not be denied on the basis of being too similar to other company names. 4 the name may not imply the agency offers services for which it is not licensed or approved. - 3 a name would not be denied on the basis of being too similar to other company names. ALL of the following are TRUE regarding the process to change the California Code of Regulations EXCEPT 1 7 the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking agency. 2 the Administrative Procedure Act requires a minimum of 45 days for comments regarding the proposed changes. 3 the Agency may decide to change its initial proposal in response to public comments or on its own initiative after the initial public comment period. 4 the Emergency Rulemaking Process and the Regular Rulemaking Process are separate requiring different standards and procedures for proposed changes. - 1 the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking agency. All of the following define insolvency EXCEPT 1 revocation of certificate of authority by the commissioner. 2 inability of the insurer to fully reinsure all outstanding risks. 3 impairment of minimum paid-in capital required in the aggregate. 4 inability of the insurer to meet its financial obligations when they are due. - 1 revocation of certificate of authority by the commissioner. All of the following statements regarding a group Accidental Death and Dismemberment policy are incorrect, except: 1 The premiums paid by the employer are considered part of the employee's income 2 The premiums paid by the employer are not deductible as a business expense to the employer 3 Any benefits received are not taxable to the recipient 4 Accidental Death and Dismemberment Insurance is not available on a group basis, only on an individual basis - 3 Any benefits received are not taxable to the recipient All of the following terms are the same regardless of if the policy is life insurance or an annuity, except: 1 Annuitant 10 1 Non-payment of premiums after the policy has been in force for two years. 2 A disability claim after the policy has been in force for more than two years. 3 Changes in union regulations after the policy has been in force for three years. 4 Omitting crucial details on the application after the policy has been in force for two years. - 1 Non-payment of premiums after the policy has been in force for two years. As specified by the California Insurance Code, the validity of a group policy cannot be contested, except for nonpayment of premiums, after it has been in force for how long? - 2 years As specified by the California Insurance Code, under the facility of payment clause, a group life insurer may pay to a relative or anyone it deems entitled to the group life benefits in the absence of: - a designated beneficiary Bert is the owner and insured of a permanent life insurance policy he purchased 20 years ago. He has never missed a premium payment. He would like to buy a new car but his bank account is running low. How can he obtain the necessary funds while still maintaining coverage? - Take a policy loan from the insurer Bess received information in regard to her individual Term Insurance explaining that she could convert the policy by doing which of the following? 1 Prove insurability and pay the same level premium. 2 Sign the conversion application agreeing to pay premiums computed at her attained age. 3 Prove insurability and pay premiums based on her current health status. 4 Proof of insurability is not required and pay premiums computed at a higher rate class. - 2 Sign the conversion application agreeing to pay premiums computed at her attained age. Beth has a contract stating she must be disabled for 3 months before benefits will begin to be paid. This 3-month period is known as the: - Elimination Period 11 By requiring a minimum medical loss ratio, an insurance company provides greater value to its policyholders when a percentage of premiums is used for healthcare costs versus administrative expenses or profits. - higher Can any life insurer issue group life insurance with premium rates less than the usual rates for such insurance? 1 Yes, when the Department of Insurance has requested they do so. 2 Yes, if the insurer has filed an exemption form to do so. 3 Yes, they may do so on any group plan, with or without annuities. 4 No, there are no circumstances when this is allowed. - 3 Yes, they may do so on any group plan, with or without annuities. Causing a person to give up an existing contract through surrender, lapse, or other forfeiture is known as: - twisting Concealment, whether intentional or unintentional, entitles the injured party to? 1 Modify insurance. 2 Rescind insurance. 3 Supplemental benefits. 4 Reduced cost insurance. - 2 Rescind insurance. Concerning the Paid-Up Additions Dividend Option, all of the following are true, except: 1 Paid-up additions accelerate the growth of cash values. 2 Paid-up additions accelerate the amount of dividends credited 3 No more premiums are due on the addition to the policy 4 Eventually, no more premiums will be due on the policy - Eventually, no more premiums will be due on the policy ERISA sets minimum standards for pension plans primarily in the industry. - Private 12 he California Insurance Code requires all producers who meet with prospective clients age 65 and older in their homes for the purpose of transacting life insurance, annuities, or disability insurance products to first provide a written notice of the first meeting which producers must retain a copy of in their files for a minimum of years. - 5 Every licensee must include the license number on all of the following, except: 1 Home address labels 2 Advertisements 3 Price quotations 4 Business cards - 1 Home address labels For those individuals who have health issues, which of the following would be an insurance plan to consider? - Group How can a licensee surrender any license for cancellation? 1 By posting a written statement on their website. 2 By calling the Department of Insurance and advising them verbally. 3 By submitting written notice or by delivering the license to the commissioner. 4 By submitting written notice to all contracted insurers and existing policyholders. - 3 By submitting written notice or by delivering the license to the commissioner. How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance? 1 An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person has not. 2 An "admitted" person has been granted admission to an insurance association, while a "nonadmitted" person has not been accepted. 3 An "admitted" person has been admitted to an accreditation program, while a "nonadmitted" person has yet to earn the credits. 4 15 In the event that a group health plan changes insurers in mid-year, all of the following apply, except: 1 Employees must be fully credited with all expenses that have accumulated toward the annual deductible and/or out-of-pocket limit. 2 Employees must be fully credited with costs such as copayments for prescription medications in companion or stand-alone prescription drug plans. 3 Employees must be fully reimbursed for unearned premiums - Employees must be fully reimbursed for unearned premiums In which situation is a person or other entity that provides coverage for medical expenses NOT subject to the jurisdiction of the insurance department? 1 When coverage is only offered to members of associations, unions and similar groups. 2 When the amount of coverage is limited to under $500,000. 3 When they have received an exemption from the insurance commissioner. 4 When they are subject to the jurisdiction of another agency of this or another state or the federal government. - 4 When they are subject to the jurisdiction of another agency of this or another state or the federal government. Instead of waiting to receive her payments over time, Jeanne decides to obtain the greatest amount of money out of her annuity immediately. Which option did she choose? - lump sum Insureds that are less desirable than average risks and tend to seek insurance coverage to a greater extent than better risks is called: - adverse selection Insurers include provisions in contracts to help reduce unnecessary claims and the overpayment of claims. Which of the following is not one of those provisions? 1 Concurrent Review 2 Consideration Clause 3 Mandatory Second Surgical Option 4 Ambulatory Services - 2 16 Consideration Clause Jamie has a $200,000 permanent policy and cannot continue making the premium payments. She still, however, wants the peace of mind of being covered for the same $200,000 in death benefit although it may be for an abbreviated period of time. The Nonforfeiture Option Jamie should choose is: - extended term Jeanne has a $100,000 whole life insurance policy that has $1,000 of dividend additions, a $6,000 outstanding loan that includes unpaid interest, and a monthly premium of $500. If she dies during the grace period, what insurance settlement would be permitted? - $94,500 Joe has a whole life policy with a guaranteed insurability rider. He was 21 at the time the policy was issued. If he exercises all of the options at the ages specified under the typical rider, how many policies will he end up with? - 7 Karen, age 50, withdraws $1,000 from her Health Savings Account (HSA) for a purpose other than a qualified medical expense. As a result of this action: - The $1,000 is taxed as ordinary income, with an additional $200 penalty tax applied Life and Disability Insurance Analysts must provide an agreement with a statement that includes all of the following EXCEPT 1 that information and services that can be obtained directly from the insurance company without cost. 2 that the services to be performed for which a fee is to be charged, and that fee. 3 that fees can be received for servicing a policy on which they were the selling agent. 4 that if they are also licensed as an agent, that they receive commissions from the sale of products. - 3 that fees can be received for servicing a policy on which they were the selling agent. Life insurance applications cannot contain questions about prior HIV testing unless the question is limited to prior testing for the purpose of obtaining: - Insurance Losses arising from all of the following conditions may be excluded from group life policies EXCEPT 1 aviation. 2 acts of war. 3 17 military service. 4 natural disasters. - 4 natural disasters. Managed Care Organizations that offer a Medicare Advantage Plan require the subscriber to select a to manage health care needs. - Primary Care Physician Many insurers pay benefits based on the average fee charged in a geographical area. This is referred to as: - Usual Customary and Reasonable Materiality to be solely determined by which of the following? 1 The probability that a certain occurrence of events will result in a claim. 2 The importance of the facts to the insurer and insured in making an underwriting decision. 3 The probable and reasonable influence of the facts upon the party to whom the communication is due. 4 The certainty that material provided to the insurer is truthful in all manners regardless of any mitigating circumstances. - 3 The probable and reasonable influence of the facts upon the party to whom the communication is due Medi-Cal expenditures on behalf of persons in institutional settings and all expenditures on behalf of persons age and older are subject to 'asset recovery' under federal Medicaid rules following the death of the individual. - 55 Medicare Part B provides coverage for: - Outpatient hospital (emergency room/urgent care) treatment Mortgage or credit life refers to what type of life insurance coverage? - decreasing term No insurer or agent may unnecessarily replace a policyholder's Long-Term Care insurance policy or replace it with a policy that offers: - Fewer benefits and a greater premium No insurer or agent may unnecessarily replace a policyholder's Long-Term Care insurance policy or replace it with a policy that offers: - Fewer benefits and a greater premium Notice of claim is required within days of loss. - 20 20 3 Approving insurance policy forms sold within the state 4 Sentencing a person to state prison for conviction of insurance fraud - Sentencing a person to state prison for conviction of insurance fraud The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT 1 the applicant has been convicted of a felony. 2 the applicant is not of good business reputation. 3 the applicant is lacking in good judgment. 4 the granting of the license would be against the public interest. - 3 the applicant is lacking in good judgment. The insurance contract is a(n) contract because it is an agreement that one party pays on behalf of another party under specified circumstances, such as when a loss occurs. - indemnity The mortality rate is based on mortality tables which show life expectancy and the death rate per people living in the U.S. - 1,000 The name used to indicate the insured's age at time of policy renewal is the age. - attained The premium charged for new policies obtained by exercising the Guaranteed Insurability Rider is based upon the: - Attained age of the insured The social insurance supplement (SIS) rider pays in addition to regular disability policies until: - Workers' Compensation or Social Security disability payments begin There is a conversion period of days in which the employee may, upon termination of eligibility and without evidence of insurability, convert group benefits to an individual policy. - 31 This rider will provide paid-up coverage if the insured cancels or lapses the policy due to nonpayment of premium. - Nonforfeiture To be permitted to operate as a Life Settlement Broker, a life insurance producer must be licensed as a life agent for at least: - 1 year 21 Under a Key Employee Disability Income Policy, the employer is all of the following, except: 1 Recipient of the proceeds 2 Premium payor 3 Insured 4 Policyowner - 3 Insured Under Medicare Part D, individuals enrolled in a standalone plan from a participating approved Prescription Drug Provider (PDP) will pay: - A monthly premium, annual deductible and copays Under most circumstances, within how much time is an insurer expected to affirm or deny a claim? - 40 days Under the California Annuity Suitability Education Requirements, a life-only agent who sells annuity products to individual consumers must complete an initial -hour training course prior to soliciting for sales. - 8 Under the Entire Contract provision, the agreement between the insured and the insurer does not include: - Statements made to the applicant by the producer during the application process Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least days after providing proof of loss before he or she can take legal action against the insurer. - 60 days Under the PPACA, insurers must provide health insurance to any person, regardless of: - Medical history or current state of health Under the Uniform Individual Accident and Sickness Policy Provisions, what happens when a health policy contains provisions that have gone out of compliance because of changes in state law? - The policy will be construed as if it conformed to the law What are the requirements for notices required by any provision of the insurance code to a person unless expressly provided otherwise? 1 They should be made by telephone on a recorded line. 2 They should be received by email to their registered email address. 22 3 They should be sent to a mailing notice at their residence or place of business. 4 They should be prioritized with overnight express at their residence or place of business. - 3 They should be sent to a mailing notice at their residence or place of business. What can happen if there is a material misrepresentation made in an application for insurance? - The insurer is permitted to rescind the policy from the time the misrepresentation was made What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder? 1 a duty of honesty, good faith, and fair dealing 2 a duty to provide courteous and confidential service 3 a duty to provide the best price available for the coverage 4 a duty of integrity, compassion, and considerate service - 1 a duty of honesty, good faith, and fair dealing What does concealment, whether intentional or unintentional, entitle the injured party to? 1 Once the policy has been accepted, it may only be cancelled by the insured under very specific circumstances. 2 The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured. 3 Legal damages, not in excess of double the premiums paid. 4 A waiver of responsibility to meet contractual obligations. - 2 The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured. What does the following refer to? Administered by the state using federal guidelines; funded federally and by states for poor persons of all ages; for poor persons 65+, disabled, or blind, may qualify for nursing home benefits - Medicaid 25 When admission to a hospital's facilities is , the insurer may require pre- authorization approval under a managed care plan before claims will be paid. - elective When a policy lapses due to nonpayment of premium, which nonforfeiture option is the automatic option? - extended term When a producer exceeds the authority expressed in the agency contract and the insurer does not take action, which of the following types of authority is created? - apparent When a replacement policy is being considered, what is required from an insurer? 1 A notarized statement acknowledging reasons for replacement and identification information, signed by the applicant and the agent are required. 2 A price comparison breaking down the cost of the new coverage and the coverage that it will replace, including annual dividend statements is required to avoid penalties. 3 The agent is required to send a replacement notice within 60 days of the application to the insurer for any existing coverage that may be replaced by the new policy. 4 A list of existing policies, replacement notice signed by the applicant and the agent, and a notice sent to any existing insurers that replacement is possible are all requirements. - A list of existing policies, replacement notice signed by the applicant and the agent, and a notice sent to any existing insurers that replacement is possible are all requirements. When an insured under age 60 purchases a new policy, how much time do they have to cancel and receive a full refund of premiums? 1 The insured has 90 days to decide they want to cancel a new policy and receive a partial refund of premiums paid. 2 The insured has only 5 days and not more than 20 days to inform the insurer they want to cancel a new policy and receive a full premium refund. 3 The insured has 60 days to cancel, but the insurer is not required to refund the full premium amount paid for the policy. 4 The insured has a period of not less than 10, and not more than 30 days, during which they may cancel and receive a full refund for the premiums paid. - 4 The insured has a period of not less than 10, and not more than 30 days, during which they may cancel and receive a full refund for the premiums paid. When can a person act as an agent of the insurer? 26 1 when the agent participates in an insurer workshop 2 when the agent receives a compliance illustration from the insurer 3 when the insurer has accepted contracting paperwork from the agent 4 when the insurer has filed with the commissioner a notice of appointment - 4 when the insurer has filed with the commissioner a notice of appointment When does a disability policy become incontestable as to the statements contained in the application? 1 After this policy been in force for a period of one year during the lifetime of the insured. 2 After this policy been in force for a period of two years during the lifetime of the insured. 3 When the company has confirmed all of the statements and issued a binding contract. 4 Two years after the date of the application when a conditional receipt has been issued. - 2 After this policy been in force for a period of two years during the lifetime of the insured. When does a license become inactive for a broker? 1 upon the termination of his or her employment 2 upon the termination of all appointments, or all endorsements 3 upon the 365th calendar day that a policy has not been written 4 upon the termination of all existing policies for which he or she is the writing broker - 2 upon the termination of all appointments, or all endorsements When examination of an insurer shows the insurer to be insolvent and a danger to the public, which authority is granted to the Commissioner by the CIC? 1 The commissioner must make application to the Superior Court and obtain a court order. 2 The commissioner may take possession of offices, books and property immediately without court order. 27 3 The Superior Court shall authorize a receiver at the request of the Commissioner without delay. 4 The commissioner shall file a petition with the United States Secretary of the Treasury for appointment of a receiver. - 2 The commissioner may take possession of offices, books and property immediately without court order. When is a person acting as a licensee allowed to act as an agent of the insurer? 1 when the agent has completed the licensing paperwork and submitted it to the insurer 2 when the insurer has filed with the commissioner a notice of appointment 3 when the insurer has provided the agent with applications 4 when the agent has received oral approval from the insurer to transact business - 2 when the insurer has filed with the commissioner a notice of appointment When is an entity buy-sell agreement plan used? - When the entity buys life insurance on each of the owners When is it allowable for a written application for any disability policy to be altered? 1 by the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions 2 by the agent who notices an error that is in disagreement with written information on file for that applicant 3 by an agent who verbally notifies the insured, for commission adjustments, of the reasons for the suggested alterations 4 by the insurer, to record such changes as to modify the application to meet all requirements of the California Insurance Code - 1 by the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions When may a licensee surrender for cancellation any license under which they are permitted to act? 1 upon renewal of the license 30 There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition. 3 The coverage for a loss from an illness or disease is treated differently than for a loss resulting from an injury due to an accident. 4 The coverage for a spouse cannot be terminated for any reason, including for nonpayment of premiums. - 2 There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition. Which is an ACCURATE statement regarding dependent coverage under a group insurance policy? 1 The coverage lasts from birth until age 18. 2 The coverage must not exceed more than 50 percent of the coverage for the insured employee. 3 The coverage must not exceed more than 100 percent of the coverage for the insured employee. 4 The coverage is not intended to cover preexisting medical conditions for the proposed dependent. - 3 The coverage must not exceed more than 100 percent of the coverage for the insured employee. Which is an INACCURATE statement regarding a life settlement contract? 1 The owner receives a guarantee of the future settlement value. 2 It includes a finance loan made for a policy on or before the issuance of the policy. 3 The loan proceeds are used to solely pay premiums for the policy and any expenses incurred. 4 The owner agrees to sell the policy or any portion of the death benefit following the policy issue. - 3 The loan proceeds are used to solely pay premiums for the policy and any expenses incurred. Which is an INACCURATE statement regarding blanket life insurance? 1 31 The premium is remitted by the policyholder. 2 The policy is for the benefit of the policyholder. 3 The insurance is written under a policy issued to a newspaper, magazine or other periodical. 4 The policy insures without any requirement of individual enrollment or individual commitment. - 2 The policy is for the benefit of the policyholder. Which is an INACCURATE statement regarding inflation protection for long-term care insurance? 1 Increases are compounded annually at a rate not less than 5 percent. 2 Guarantees the insured individual the right to periodically increase benefit levels. 3 The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount. 4 Insurers shall offer to each policyholder or certificate holder the option to add an inflation protection feature with their policy at the time of purchase. - 3 The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount. Which is an INACCURATE statement regarding standards to avoid unfair underwriting for applicants at risk for auto immune deficiency, human immunodeficiency virus, or AIDS related conditions? 1 Insurers must maintain strict confidentiality regarding personal information obtained as the results of any medical testing. 2 Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance. 3 Insurers must establish performance standards to avoid making unfair distinctions between individuals in the same underwriting class. 4 Establish standards that allow for adequate assessment through underwriting to determine if a life or health policy can be issued to the applicant. - 2 Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance. 32 Which is an INACCURATE statement regarding underwriting based on genetic testing? 1 The proposed insured must pay for the cost of the testing. 2 The proposed insured must provide informed consent prior to the testing. 3 The test results can be provided to the proposed insured, or to their physician to whom the individual should consult. 4 The purpose is to create standards classified by risks to avoid discrimination among proposed insureds with similar genetic markers. - 1 The proposed insured must pay for the cost of the testing. Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer? 1 The insurer is obliged to accept the application for underwriting from the life agent. 2 If a policy is issued, the agent is required to forfeit any commission unless appointed. 3 The insurer is required to report the agent appointment within 21 days of the policy issue. 4 If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf. - 4 If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf. Which of the following actions is considered part of the insurance sales process? 1 Rescission of the contract. 2 Transaction of unrelated matters that are made by the same parties. 3 Transaction of matters subsequent to execution of the contract and arising out of it. 4 Termination of future sales of the contract. - 3 Transaction of matters subsequent to execution of the contract and arising out of it. Which of the following annuities is known for having the highest surrender charge percentages and the longest surrender charge time periods? 1 35 The option to name a new beneficiary can be exercised by the owner. 3 The owner can change the ownership of the policy but not the name of a beneficiary. 4 The policy can be transferred into an endowment or liquidated for its proceeds by the owner. - 2 The option to name a new beneficiary can be exercised by the owner. Which of the following is TRUE regarding change of address for a licensee? 1 A licensee must notify the commissioner of an address change, but a license applicant does not. 2 The law only applies to the physical mailing address, for changes in email addresses are exempt. 3 The commissioner must be notified immediately of any change in the personal, business, or email address. 4 A licensee or applicant has 30 days to notify the commissioner of any change in email or physical address. - 3 The commissioner must be notified immediately of any change in the personal, business, or email address. Which of the following is TRUE regarding nonadmitted insurers? 1 A felony is committed by the agent in the state of a nonadmitted insurer. 2 Acting as an agent for a nonadmitted insurer is considered a misdemeanor. 3 The agent shall pay $1,000 in addition to any fees involving the commission of a felony. 4 Specific penalties shall be determined by the Insurance Commissioner on a case by case basis. - 2 Acting as an agent for a nonadmitted insurer is considered a misdemeanor. Which of the following may be insured against? 1 Disability. 2 Accidental death. 3 Wagering losses. 36 4 Catastrophic losses. - 3 Wagering losses. Which of the following may insurers use in their underwriting? 1 ancestry 2 family medical history 3 genetic characteristics 4 national origin - 2 family medical history Which of the following might be considered a physical hazard? 1 The insured's attitude that good housekeeping is not important 2 the storage of all flammables in fireproof containers 3 Dishonesty on the part of the insured 4 The storage of flammables near a furnace - The storage of flammables near a furnace Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE? 1 It is permitted with no charge. 2 It requires a separate charge or fee. 3 If offered as a guarantee of the performance of goods, it is prohibited. 4 If issued by credit unions or with newspaper subscriptions, it is limited under Statute 777.2. - 2 It requires a separate charge or fee. Which of the following statements is false regarding the Affordable Care Act? 1 It requires all employers to provide health insurance to their employees 2 37 It established the Health Insurance Marketplace 3 It consists of a combination of measures to control healthcare costs, and an expansion of coverage through public and private insurance including broader Medicaid eligibility and Medicare coverage, and subsidized, regulated private insurance 4 Its goals are increasing the quality and affordability of health insurance, lowering the uninsured rate by expanding public and private insurance coverage, and reducing the costs of healthcare for individuals and the government - 1 It requires all employers to provide health insurance to their employees Which of the following term policies costs the most, all other factors being equal? 1 Renewable and non-convertible 2 Renewable and convertible 3 Nonrenewable and convertible 4 Nonrenewable and non-convertible - renewable and convertible Which of the following types of coverage must have a proven insurable interest at the time of the application? 1 coverage for oneself 2 coverage for a spouse or domestic partner if the policy is less than $100,000 3 coverage for a minor child under age 18 or a corporate owned policy on an employee 4 coverage for any person upon whose life any estate or interest vested in him is dependent - 3 coverage for a minor child under age 18 or a corporate owned policy on an employee Which of these is a Mandatory Uniform Provision? 1 Illegal Occupation 2 Misstatement of Age 3 Conformity with State Statutes 4 Legal Actions - 4