Life and Health Certification Exam

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Life and Health Certification Exam Which of the following types of insurance riders is not based on term life insurance? - ✔✔Waiver of premium At what point after the effective date of an accid... ent and health insurance policy does it become incontestable? - ✔✔2 years All of the following groups may contract with PPOs exctpt - ✔✔Government programs under a long-term care insurance policy, the level of care that is mainly necessary for the purpose of meeting daily living requirements is called: - ✔✔Custodial care social security defines disability as the inability to engage - ✔✔the duties of any occupation a life insurance buyer's guide can be used for all of the following uses except - ✔✔comparison of the cost of similar policies all of the following are considered service providers except - ✔✔a commercial insurance company an agent attends a continuing education course offering 12 hours of credit before the course is approved by the commissioner. in this case, the agent will receive - ✔✔no credit for the course, because courses must be approved before study begins PPO - ✔✔preferred provider organization ( HMO - ✔✔health maintenance organization (cheaper - less options) All of the following are duties of the commissioner EXCEPT - ✔✔writing the Washington insurance laws Who investigates claims on behalf of the insurer or the insured? - ✔✔An Adjuster Which of the following sales of insurance is subject to replacement regulations? - ✔✔Sale of new individual life insurance policy that causes an existing life insurance policy to be surrendered. a lapsed life insurance policy may be reinstated - ✔✔Within 30 days after the grace period expires policies classified as non-occupational normally provide coverage for - ✔✔losses due to sickness or accidents that are not work-related. a guaranteed insurability rider normally provides that between ages 25 and 40, additional life insurance may be purchased without proof of insurability - ✔✔whenever the policyowner wishes when a health maintenance organization chooses a limited number of health care providers to provide services to its subscribers, this is known as - ✔✔A Gatekeeper system Which of the following correctly describes Medicaid? - ✔✔It provides medical benefits for certain low-income people all of the following are required provisions in health care insurance policies EXCEPT - ✔✔Change of occupation An insurer that is incorporated and operates in the same state with which it is organized is called - ✔✔Domestic Money taken out of a modified endowment contract (MEC). - ✔✔Subject to unfavorable tax rules Exclusive or Captive Agents represent - ✔✔the insurance company When an insured has a major medical plan with first dollar coverage, this means - ✔✔no deductible applies Restoration of a lapsed policy as it was originally purchased is known as - ✔✔Reinstatement All of the following would likely be eligible for group health insurance EXCEPT - ✔✔all the uninsured residents of a nursing home in noncontributory group health plans, how many eligible employees must be covered by the plan? - ✔✔100% Sherwood has no valid will but has named his estate as the beneficiary of his life insurance policy. As a result, he can expect that the policy proceeds - ✔✔will be distributed after debt is paid off When a convertible term life policy is converted to a permanent policy, the insured - ✔✔Life only annuity Which part of medicare requires premium payment by most eligible participants? - ✔✔part b, supplementary medical insurance Most people likely to experience a loss are also most likely to want insurance. This is known as - ✔✔Adverse selection Dread disease policies - ✔✔generally covers illnesses that occur frequently, but do not incur significant costs when they do occur insurers do not have to offer every medicare supplement plan, but if they offer any, they must offer - ✔✔plan A A standard medigap policy must provide which of the following? - ✔✔The core benefits standardized by the Centers for Medicare and Medicaid services Gavin and Guinevere have a joint life policy. Gavin dies and the policy pays nothing. Later on, Guinevere dies and the policy death benefit is paid to the beneficiary. This is called - ✔✔a survivorship or second-to-die policy When either the fixed period or fixed amount option is selected for a life policy - ✔✔Total amount paid over the years will be greater than the face amount of the policy A Universal Life Contract expires when - ✔✔the cash value account becomes too small to pay the cost of insurance An admitted insurer must have which of the following before transacting insurance in the state? - ✔✔A certificate of authority A disability policy that is nonoccupational - ✔✔does not cover job-related disabilities paul and eleanor have a disability income policy that includes a rider that excludes coverage for Paul's existing diabetes. What rider is attached to this policy - ✔✔Impairment rider beneficiaries of life policy designated as all my children or all my sisters and brothers still living are called - ✔✔A class designation The tendency for poor risks to seek and be covered for insurance more than average risks is known as - ✔✔Adverse selection all of the following are benefits provided under part a of medicare except - ✔✔private duty nursing jason neglected to mention on his application or a health policy that he had suffered a heart condition as a child. In order for the company to cancel jason's policy it must be determined that this omission was - ✔✔deliberate and fraudulent Which of the following is not a dividend option? - ✔✔Whole live insurance the premium for renewable term life insurance policy - ✔✔increase each time it is renewed Leroy wants to buy a policy insuring the life of his wife loretta. What is the limit on how much insurance he can buy? - ✔✔As much as the insurance company is willing to issue and leroy can afford When an insured can receive more from loss of time benefits than earnings from staying on the job, or can receive more for reimbursement of medical expenses than those expenses actually cost - ✔✔Overinsurance occurs Risk - ✔✔Uncertainty of loss 2 major phases of an annuity are - ✔✔fixed and variable Damon purchased a 10-pay life policy at age 35. He can expect it to be paid up by age - ✔✔45 When a policyowner cannot exercise rights of ownership without the policy beneficiary's consent, the beneficiary is designated - ✔✔Irrevocable The person on whose behalf he acts is called the - ✔✔Principal Which of the following must be given to an insured when a replacement occurs - ✔✔a Notice regarding replacement A federal-state program designed to help needy persons, regardless of age, with medical coverage is called - ✔✔Medicaid statements made by an applicant for life insurance that are guaranteed to be true are - ✔✔Warranties A person in a position of financial trust is - ✔✔A fiduciary All of the following are elements that go into the calculation of premiums EXCEPT - ✔✔Morbidity Statements made by an insurance applicant on an application are considered to be what? - ✔✔Representations six months ago while leaving home from work, fell down a flight of stairs at her apartment buildning resulting in complete paralysis from which she is not expected to recover. Fifty-yearold carmelita will probably be able to collect disability benefits from - ✔✔social security a nontaxable transaction where a cash value life insurance policy is converted into an annuity is known as - ✔✔a 1035 exchange an agent who performs tasks that are not covered by the employment contract but which are necessary to maintain the agency relationship with the insurer acts with - ✔✔Apparent authority when underwriting group life insurance, the underwriter generally quizlet - ✔✔focuses on the group as a whole rather than on individual members in a disability income policy, there is a period of time an insured must be disabled before benefits begin. The term that describes this interim is - ✔✔The Probationary period a qualified retirement plan distribution is considered to be premature if made before the participant is age - ✔✔59.5 what part of the application includes medical information - ✔✔part 1 The applicant for an insurance policy must sign all of the following EXCEPT? - ✔✔the producers report A person purchases a temporary annuity with a life with period certain of 10 years but he dies well before the 10 year certain period has elapsed. In abiding with this annuity contract, the company would - ✔✔Make the stipulated payments to the annuitant's beneficiary for the rest of the certain period The insurance industry, human life value refers to which of the following? - ✔✔The consideration in a life insurance contract laura names her daughter samantha as an irrevocable beneficiary on her life policy. Which of the following is true? - ✔✔If laura wants to change the beneficiary, samantha must consent Which of the following medicare advantage plans focus on the particular needs of defined groups of patients - ✔✔Medicare managed plans Which of the following is a common exclusion under dental expense insurance? - ✔✔treatment of the pulp Jane age 35 has just purchased a 20-pay whole life policy. When she turns 55 she will - ✔✔cease paying premiums an insurer that distributes dividends to its policyholders is - ✔✔A mutual company if desdemona is insured by a life policy with a face amount of $250,000 but which has an outstanding policy loan of $10,000 at her death, the insurer - ✔✔Will pay $240,000 to beneficiary If the insurance company accepts a Special Class Risk - ✔✔The premium will be higher than for a normal risk susan is 40 years old Her insurance application she started that she was 39. According to the misstatement of age provision, which of the following is true - ✔✔Susans benefits will be reduced susan is receiving continuing disability benefits and will for years to come. Her insurer according to the notice of claims provision can require her to give notice that the claim is continuing as ofter as every - ✔✔6 months which of the following has a death benefit that expires? - ✔✔Whole life insurance according to the entire contract provision, what constitutes the entire contract of insurance in a health policy - ✔✔THe policy and its endorsements The term "nonforfeiture values" refers to the fact that - ✔✔when a policyowner stops paying premiums on a permanent policy, its cash value accumulation or equivalent must be made available to the policyowner the type of premium for term life insurance that remains the same throughout the policy period is - ✔✔level premium the key factor in rating long-term care policies is - ✔✔ability to preform activities of daily living what term describes a situation where a policy owner transfers a portion of her rights in an insurance policy to another party in order to secure a debt to that party? - ✔✔Collateral assignment Many major medical policies include a provision whereby when expenses reach a certain dollar amount, the insured no longer shares in the cost of expenses; the insurer pays 100% of remaining covered charges. This is referred to as the ... - ✔✔The stop-loss limit fixed annuities are supported by an insurer's - ✔✔general account Under which of the following circumstances will the payor rider waive premiums and allow a life policy to remain in force? - ✔✔If the policyowner dies or becomes disabled prior to the insured reaching either age 18 or 21 A health insurance policy that the insurer may choose NOT to renew only on the premium due date is called - ✔✔an optionally renewable policy What type of annuity settlement arrangement stops making payments when the annuitant dies? - ✔✔ [Show More]

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