2-15 State Exam Simulator
Please review the exam after you have completed it; the review is very important in your learning and mastery of the material. The review will also show you topics that may require additional study. Keep practicing until you score at least 90% in all categories.
The State Exam Simulator for the 2-15 course is recommended as practice for the 2-15 Life, Health, and Variable Annuity Agent State Exam. Please note that the State Exam Simulator and the State Exam has 150 Questions. If you require assistance at any time please contact the college:
Ken Toney, MBA, CLU©, ChFC©, CPCU©, SCLA©, ARM©, AIC©
American Insurance College
Phone: (866) 506-0139
Email: [email protected]
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Categories
- Accidental Death and Dismemberment Insurance (ES LHV) 0%
- Annuities (ES LHV) 0%
- Disability Income Insurance (ES LHV) 0%
- Florida Laws and Rules about Health Insurance (ES LHV) 0%
- Florida Laws and Rules about Health Maintenance Organizations (ES LHV) 0%
- Florida Laws and Rules about Life Insurance (ES LHV) 0%
- Florida Laws and Rules about Variable Contracts (ES LHV) 0%
- Florida-Specific Laws and Rules about Insurance (ES LHV) 0%
- Government Health Insurance Programs (ES LHV) 0%
- Group Health Insurance (ES LHV) 0%
- Health Insurance (ES LHV) 0%
- Life & Health Insurance: Beneficiaries (ES LHV) 0%
- Life & Health Insurance: Group Life Insurance (ES LHV) 0%
- Life & Health Insurance: Law and the Insurance Contract (ES LHV) 0%
- Life & Health Insurance: Licensure, Ethics, and the Insurance Producer (ES LHV) 0%
- Life & Health Insurance: Life Insurance Policies (ES LHV) 0%
- Life & Health Insurance: Premiums and Proceeds (ES LHV) 0%
- Life & Health Insurance: Provisions, Options, Riders (ES LHV) 0%
- Life & Health Insurance: Purpose (ES LHV) 0%
- Life & Health Insurance: The Insurance Industry (ES LHV) 0%
- Life & Health Insurance: Underwriting and Policy Issues (ES LHV) 0%
- Medical Expense Insurance (ES LHV) 0%
- Private Insurance Plans for Seniors (ES LHV) 0%
- Retirement Plans (ES LHV) 0%
- Social Security (ES LHV) 0%
- Uses of Life Insurance (ES LHV) 0%
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Congratulations!
You have successfully completed the 2-15 State Exam Simulator.
Keep practicing until you score at least 90% in all categories.
You will succeed and you will pass the state exam!
If you require assistance at any time please contact the college by email at: [email protected] or phone: (866) 506 – 0139.
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Keep practicing until you score at least 90% in all categories.
You will notice your scores increase as you take the exam additional times.
You will succeed and you will pass the state exam!
If you require assistance at any time please contact the college by email at: [email protected] or phone: (866) 506 – 0139.
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- Current
- Review
- Answered
- Correct
- Incorrect
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Question 1 of 409
1. Question
____________ is knowingly making any misleading representations of any HMO contract for the purpose of inducing any person to contract or to purchase an insurance policy or HMO contract with an insurance company or HMO.
CorrectIncorrect -
Question 2 of 409
2. Question
The Florida Health Maintenance Organization Consumer Assistance Plan provides coverage up to ___ months after an HMO liquidation.
CorrectIncorrect -
Question 3 of 409
3. Question
An HMO contract, certificate, or member’s handbook must be delivered within __ working days after approval of the enrollment by the HMO.
CorrectIncorrect -
Question 4 of 409
4. Question
Florida law requires HMOs to provide up to ___ office visits to a dermatologist without a referral from a primary care physician within a twelve month time period.
CorrectIncorrect -
Question 5 of 409
5. Question
An HMO has ___ months after payment of a claim to submit a claim for overpayment to the provider; and a provider has ___ months after payment of a claim by an HMO to submit a claim for underpayment.
CorrectIncorrect -
Question 6 of 409
6. Question
An HMO has up to ____ days after the receipt of a claim from a contact provider for services/goods to pay or deny the claim.
CorrectIncorrect -
Question 7 of 409
7. Question
The HMOCAP was created by Florida statute to protect HMO plan subscribers against the failure of their HMO to perform its contractual obligations due to its insolvency. The maximum benefit to a subscriber is $_______________.
CorrectIncorrect -
Question 8 of 409
8. Question
Which of the following are filing requirements of an HMO? (choose all that apply)
CorrectIncorrect -
Question 9 of 409
9. Question
A __________ is the specified dollar amount that the HMO subscriber must pay for certain covered health care services.
CorrectIncorrect -
Question 10 of 409
10. Question
Which of the following are “savings” associated with HMOs? (choose all that apply)
CorrectIncorrect -
Question 11 of 409
11. Question
A ___________ is any physician, hospital, organization, or other person or institution that furnishes health care services and is licensed or otherwise authorized to practice in Florida.
CorrectIncorrect -
Question 12 of 409
12. Question
This HMO provision ensures that claims approved and benefits started while the contract was in force will be paid.
CorrectIncorrect -
Question 13 of 409
13. Question
The ________________ period is the period of time each year when an individual can sign up for health insurance coverage.
CorrectIncorrect -
Question 14 of 409
14. Question
Florida Healthy Kids provides health insurance coverage to *uninsured* children in families with an income below 200% of the federal poverty level who do not qualify for _________.
CorrectIncorrect -
Question 15 of 409
15. Question
_____ are characterized by negotiated fees for services; reduced benefits for out of service providers; and co-payments and deductibles.
CorrectIncorrect -
Question 16 of 409
16. Question
“The Bean” coffee shop has ten employees and has purchased a stop-loss health insurance policy. “The Bean’s” owner, Crawford has projected her future claims will be around $14,000 (based on her prior years’ experience).
What is the attachment point for “The Bean’s” renewing stop loss policy?
CorrectIncorrect -
Question 17 of 409
17. Question
An LTC policy may condition the payment of benefits on a determination of either the insured’s inability ability to perform up to ___ activities of daily living; or on cognitive impairment.
CorrectIncorrect -
Question 18 of 409
18. Question
LTC insurers are required to offer inflation protection at a rate of not less than __% compounded annually.
CorrectIncorrect -
Question 19 of 409
19. Question
_________ care is for the “basic activities of everyday living”; that is non-medical care which can be provided in various settings (e.g. at home, adult day care).
CorrectIncorrect -
Question 20 of 409
20. Question
Long-Term Care normally refers to care of ___ days or longer.
CorrectIncorrect -
Question 21 of 409
21. Question
True or False? Both Medicare and Medicare Supplements cover long term custodial and nursing home care.
CorrectIncorrect -
Question 22 of 409
22. Question
ERISA’s ________ clause relegates to the states the regulation of insurance.
CorrectIncorrect -
Question 23 of 409
23. Question
Which ‘rule’ determines whether a health insurance plan is primary or secondary for a dependent child covered by both parents’ benefit plans when the parents live together. The plan covering the parent whose birthday falls first in a calendar year provides primary coverage for the child.
CorrectIncorrect -
Question 24 of 409
24. Question
The Florida Health Insurance Coverage Continuation Act extends health insurance to employees of small employers and dependents if COBRA benefits are not available up to ___ months.
CorrectIncorrect -
Question 25 of 409
25. Question
Randall T’s doctor sent him a bill for a balance due which is an amount in addition to the agreed price already paid by his insurance company. What should Randall do?
CorrectIncorrect -
Question 26 of 409
26. Question
Individual and group health insurance policies are required to provide coverage for mammograms how often for any woman 50 years or older?
CorrectIncorrect -
Question 27 of 409
27. Question
Grandfathered Health plans must have had plans in effect on or before:
CorrectIncorrect -
Question 28 of 409
28. Question
The insured has up to how many days after a policy is issued to return the policy and receive a full refund of any premium paid.
CorrectIncorrect -
Question 29 of 409
29. Question
The holder of a variable annuity has a 6% AIR and has a target monthly payment of $1,500. If her separate account experiences a 10% return will her monthly payment be more than, less than, or equal to the target $1,500 monthly payment.
CorrectIncorrect -
Question 30 of 409
30. Question
Gregg has been faithfully investing in an annuity for the last twenty years. On his thirty-fifth birthday Gregg was involved in a fatal automobile accident. What will happen to the value in Gregg’s annuity?
CorrectIncorrect -
Question 31 of 409
31. Question
Gains distributed from life insurance cash value or annuity account value will be taxed as __________________ in the year received.
CorrectIncorrect -
Question 32 of 409
32. Question
Jack F has invested $100 per month for the last twenty years into an annuity. At the time of annuitization the insurance company calculates the aggregate payout to Jack will be $72,000.
If Jack will receive monthly payments of $1,000 how much of the $1,000 will be taxable?
CorrectIncorrect -
Question 33 of 409
33. Question
An annuitant with $200,000 in his account is retiring. Biggert & Moore Insurance Company pays $48.16 per thousand dollars held in an individual’s account.
What would an annuitant’s monthly income payment be in this example?
CorrectIncorrect -
Question 34 of 409
34. Question
Biggert & Moore Insurance Company has $500 million in its separate account with two million accumulation units outstanding. Bill has 1,000 accumulation units with Biggert & Moore Insurance Company.
What is the value of Bill’s account?
CorrectIncorrect -
Question 35 of 409
35. Question
Biggert & Moore Insurance Company has $500 million in its separate account with two million accumulation units outstanding. What is the value of one accumulation unit?
CorrectIncorrect -
Question 36 of 409
36. Question
John has an indexed annuity with a 80% participation rate and a 6% cap rate. The S&P 500 increased by 9%; what rate of return will be applied to the insured’s annuity?
CorrectIncorrect -
Question 37 of 409
37. Question
Which annuity “life” payout option is the riskiest for the annuitant?
CorrectIncorrect -
Question 38 of 409
38. Question
All but which of the following is a funding method for an annuity?
CorrectIncorrect -
Question 39 of 409
39. Question
Bill and Hillary have a joint and 80% survivor annuity with a $2,000 per month benefit payment. If Hillary dies what will the monthly payment be to Bill?
CorrectIncorrect -
Question 40 of 409
40. Question
Sharon has a $250,000 face value fixed premium variable life insurance policy on herself and has chosen a very aggressive portfolio in hopes of enjoying large investment returns. Unfortunately her investments have lost about 10% of their value year to date. What death benefit will Sharon’s beneficiary receive?
CorrectIncorrect -
Question 41 of 409
41. Question
Which variable life product has a fixed, level, and required premium schedule?
CorrectIncorrect -
Question 42 of 409
42. Question
The net investment ______________ of the portfolios chosen by the variable contract owner will determine the variable cash value and variable death benefit of his variable life insurance, or the account value of his variable annuities.
CorrectIncorrect -
Question 43 of 409
43. Question
True or False? Variable contracts have indeterminate values of assets held in a separate account.
CorrectIncorrect -
Question 44 of 409
44. Question
An insurer shall provide to each prospective purchaser a ____________ and a _____________.
CorrectIncorrect -
Question 45 of 409
45. Question
You have just written a new life insurance policy for your client, Shane Smith. You inform Shane that the grace period for his new life policy is _______ days.
CorrectIncorrect -
Question 46 of 409
46. Question
James explains to Mr. Smith, the insured, that policy summary defines coverages, benefits, limitations, exclusions, cost and terms of a proposed life insurance policy. However, cost and benefit information usually include all but which of the following?
CorrectIncorrect -
Question 47 of 409
47. Question
A second party listed on an insurance policy to be put on formal notice of a lapse as a “back-up” to ensure is known as a _________________.
CorrectIncorrect -
Question 48 of 409
48. Question
Life insurance policies delivered in Florida must contain all but which of the following non-forfeiture options.
CorrectIncorrect -
Question 49 of 409
49. Question
True or False? A life insurance agent can never be named as beneficiary in any life insurance policy.
CorrectIncorrect -
Question 50 of 409
50. Question
True or False? The grace period for a life insurance policy is 30 days.
CorrectIncorrect -
Question 51 of 409
51. Question
Sarah is replacing her client’s life insurance policy. To do so, what form must Sarah have her client sign?
CorrectIncorrect -
Question 52 of 409
52. Question
Advertisements containing a rate to be earned are prohibited unless all limitations and conditions that affect the rate of return ultimately realized by the policyholder are _____________ prominently.
CorrectIncorrect -
Question 53 of 409
53. Question
Jenna Jones is replacing her current life insurance policy with Acme Life Insurance with a new policy through Thrive Right Life Insurance Group. Thrive Right Life Insurance Group is required by law to send a copy of the Notice to the Applicant Regarding the Replacement of Life Insurance to the insured’s ___________?
CorrectIncorrect -
Question 54 of 409
54. Question
True or False? Any reference to policy dividends must include a statement that dividends are guaranteed.
CorrectIncorrect -
Question 55 of 409
55. Question
Dave has recommended to his client, Martin Short, the surrender of his life insurance policy which contains cash value. Dave must provide Martin all but which of of the following?
CorrectIncorrect -
Question 56 of 409
56. Question
True or False? Life Insurance policy “free look” provisions allow up to 14 days and annuity “free look” provisions are up to 21 days.
CorrectIncorrect -
Question 57 of 409
57. Question
Matthew Williams is replacing his current Life Insurance policy with Gallant Insurance with a new policy through Acme Insurance. Which form must Gallant Insurance provide Matthew with?
CorrectIncorrect -
Question 58 of 409
58. Question
True or False? The maximum policy loan interest rate is 25%.
CorrectIncorrect -
Question 59 of 409
59. Question
Which, if any, of the following are considered an “insurance transaction”?
CorrectIncorrect -
Question 60 of 409
60. Question
The purpose of the Florida Life and Health Insurance Guaranty Association’s (FLAHIGA) is to _________ the insuring public against the insolvency of an insurance company. By and large the Association provides benefits to Florida residents.
CorrectIncorrect -
Question 61 of 409
61. Question
The department has rules regarding the inappropriate use of _____________ and ______________.
CorrectIncorrect -
Question 62 of 409
62. Question
Micah wants to obtain his insurance license. How many times can he take an examination for a license type?
CorrectIncorrect -
Question 63 of 409
63. Question
Applicants for an agent license must pass an examination that will test the applicant’s ability, competence, and ___________. The exam will cover the duties and responsibilities of a licensee and the pertinent provisions of Florida law.
CorrectIncorrect -
Question 64 of 409
64. Question
Judith has failed to maintain an appointment with an insurer or an appointing entity during the last 48 months. Judith now has to qualify with the department as a first-time ___________.
CorrectIncorrect -
Question 65 of 409
65. Question
While selling Mrs. Marge an insurance policy, Homer told her the insurance company had an A++ rating. Is Homer guilty of misrepresentation if he did not know the actual rating at that time?
CorrectIncorrect -
Question 66 of 409
66. Question
True or False? It is lawful to reassure Kelvin Zorbo, a potential client, that FLAHIGA will provide benefits if
CorrectIncorrect -
Question 67 of 409
67. Question
Sorbo Health Insurance Company has gone out of business. FLAHIGA will pay for any one’s insured’s medical expenses. What is the maximum amount FLAHIGA will pay?
CorrectIncorrect -
Question 68 of 409
68. Question
______________________ is the principal in which an agent is operating in the best interest of the business of life insurance.
CorrectIncorrect -
Question 69 of 409
69. Question
True or False? By Statute, Insurance companies have twenty days to respond to the department once a consumer complaint has been filed.
CorrectIncorrect -
Question 70 of 409
70. Question
Which, if any, of the following statements are correct regarding a license applicant background check?
Statement I. An application for an insurance license shall be subject to a criminal background check by the department.
Statement II. An application for an insurance license shall be subject to a credit background check by the department.
CorrectIncorrect -
Question 71 of 409
71. Question
Grace is having her Kindness Insurance Company appointment terminated. What must Kindness do to put all parties of interest on notice of the termination?
CorrectIncorrect -
Question 72 of 409
72. Question
J. Jones Insurance Agency received a $5,500 group insurance premium for a group insurance policy for one of the agency’s insureds and deposited those funds it is operating account. Thereafter, the agency used part of the premium as a “float” to pay a very large and very late credit card bill. What is the agency guilty of?
CorrectIncorrect -
Question 73 of 409
73. Question
Marsha Marsha, a licensee, must notify the department, in writing, within __ days after a change of name, residence address, principal business street address, mailing address, contact telephone numbers, including a business telephone number, or email address.
CorrectIncorrect -
Question 74 of 409
74. Question
Any person or entity that transacts insurance without a certificate of authority is guilty of at least a __________ felony.
CorrectIncorrect -
Question 75 of 409
75. Question
Slade Markham is in a “one-man-band” where he is the owner, agent, and service department for his one personal health insurance agency, The Slade Markham Agency. Is Mr. Markham required to have an agency license?
CorrectIncorrect -
Question 76 of 409
76. Question
Which of the following are the duties and powers of the department regarding FLAHIGA and the liquidation of insurance companies?
CorrectIncorrect -
Question 77 of 409
77. Question
Rebating is always lawful.
CorrectIncorrect -
Question 78 of 409
78. Question
True or False? No person other than a licensed and appointed agent may accept any commission or other valuable compensation for soliciting or negotiating insurance.
CorrectIncorrect -
Question 79 of 409
79. Question
___ years of record retention are required by the department.
CorrectIncorrect -
Question 80 of 409
80. Question
True or False? False advertising is knowingly making, publishing, disseminating, circulating, or placing before the public untrue, deceptive, or misleading information with respect to any business of insurance.
CorrectIncorrect -
Question 81 of 409
81. Question
Mr. Rogers sold Misty a Health Insurance policy and was able to add an Accidental Death & Dismemberment policy for only $15 extra dollars a month. Misty asked if the AD&D was part of the Health policy and Mr. Rogers told her it was already included in the monthly premium she quoted her. Is Mr. Rogers guilty of sliding?
CorrectIncorrect -
Question 82 of 409
82. Question
Cameron gave Kenisha Kent a $25 gift certificate to Kenisha’s favorite restaurant as part of his schomoozing to sell her company, All Kinds of Kupcakes, Inc., a pension plan. Is Cameron guilty of unfair practice?
CorrectIncorrect -
Question 83 of 409
83. Question
Which of the following are benefits to an employer in providing “excellent” employer provided benefits?
CorrectIncorrect -
Question 84 of 409
84. Question
All of the following are benefits of group insurance coverage EXCEPT?
CorrectIncorrect -
Question 85 of 409
85. Question
Which, if any, of the following are correct statements regarding the tax implications of Business Overhead Expense Insurance?
Statement I. Business Overhead Expense Insurance are tax deductible as a business expense to the business.
Statement II. Benefits received from the business are taxable as income to the business.
CorrectIncorrect -
Question 86 of 409
86. Question
How does key person disability insurance help a business?
CorrectIncorrect -
Question 87 of 409
87. Question
A Cafeteria Plan is a plan governed by IRS Section 125 which allows employees to contribute a certain amount of their gross income for benefits before ______ are calculated.
CorrectIncorrect -
Question 88 of 409
88. Question
Business continuation plans assist a business with continuity of its operations and employee ____________.
CorrectIncorrect -
Question 89 of 409
89. Question
Which type of insurance would a business purchase for their exposure to a disabled owner but not for a disabled key person?
CorrectIncorrect -
Question 90 of 409
90. Question
If OkayTire Shop decides to purchase key person disability insurance to offset any loss of income and increased expenses if, Kenny, the top salesman, were to become disabled. How much key person DI should Okay Tire purchase if:
Kenny’s Salary $110,000
Loss of income to the shop $90,000
Extra expense of new hire, training, loss of accounts $35,000CorrectIncorrect -
Question 91 of 409
91. Question
What are the tax implications if key person disability insurance (choose all that apply)?
CorrectIncorrect -
Question 92 of 409
92. Question
Which of the following are HSA eligible qualified health care expenses?
CorrectIncorrect -
Question 93 of 409
93. Question
Traci Gooding’s Group Accidental Death & Dismemberment policy pays $100,000 upon her accidental death and $50,000 for the accidental loss of a hand, arm, foot, or leg.
CorrectIncorrect -
Question 94 of 409
94. Question
DI benefits coordinate with Workers Compensation benefits to the pay insured about __% of the insured’s income.
CorrectIncorrect -
Question 95 of 409
95. Question
Michele obtains her health insurance coverage through her employer; her employer pays 50% of the cost of the insurance and Michele pays the other 50%.
CorrectIncorrect -
Question 96 of 409
96. Question
Group plans are issued for employer and other group with the contract of coverage being held between the insurance company and the group. The group is issued a ___________ and individuals in the group are issued certificates of insurance which outline the plans benefits.
CorrectIncorrect -
Question 97 of 409
97. Question
Which of the following groups WOULD NOT QUALIFY for a group health insurance policy?
CorrectIncorrect -
Question 98 of 409
98. Question
True or False? To be eligible for group health coverage the group must be either a natural group; or an “unnatural group”, one which has been formed the sole purpose of obtaining group insurance.
CorrectIncorrect -
Question 99 of 409
99. Question
Cynthia has purchased a new Tesla and she really, really likes it. Her best friend lost her car when the friend suffered an illness which left her without work for ten months.
What policy can Cynthia purchase to make sure the payments on her car loan are made in the event she is either unable to work due to an accident or any illness?
CorrectIncorrect -
Question 100 of 409
100. Question
Jerry has filed to keep his group health insurance after terminating his employment (COBRA). The total cost of Jerry’s group health insurance was $1,000.
What is the maximum amount Jerry can be charged for his extended group coverage?
CorrectIncorrect -
Question 101 of 409
101. Question
Caroline has been at the same part-time job for the four years she has been in college. Her employer just started a group health insurance plan and she was told she will not be eligible for the plan.
Caroline thought there was no underwriting for a group health insurance plan and has questioned the HR director at her place of employment.
CorrectIncorrect -
Question 102 of 409
102. Question
True or False? Long-Term plans often use an “any occupation” definition for the first two years and an “own occupation” definition thereafter.
CorrectIncorrect -
Question 103 of 409
103. Question
Group medical expense plans are required to offer __________ benefits for all plans which insure fifteen (15) or more people.
CorrectIncorrect -
Question 104 of 409
104. Question
Florida law requires groups of ___ or more persons to be accepted as a whole or rejected as a whole for group health insurance plans.
CorrectIncorrect -
Question 105 of 409
105. Question
Insurers have ___________ to protect the insurance company against adverse selection and to apportion the cost of plan administration among an adequate number of insureds.
CorrectIncorrect -
Question 106 of 409
106. Question
AppleSnacks is a small, minority based business which makes apple fruit pies for sale on consignment. AppleSnaks has ten full time employees.
Does AppleSnacks have the minimum number of employees to be eligible for a group health insurance policy in Florida?
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Question 107 of 409
107. Question
The Coordination of Benefits (COB) provision in group health plans is in place to remove the______________ hazards of “over-insurance”.
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Question 108 of 409
108. Question
Ericka Little’s employment with the FunCoToy Company has ended. FunCoToy is moving their current distribution center to McLean, Virigina and Ericka cannot make the move due to her husband’s employment.
Ericka’s family has depended on the health insurance provided by FunCoToy.
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Question 109 of 409
109. Question
True or False? The cost for a group plan health insurance is more expensive than individually underwritten health insurance.
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Question 110 of 409
110. Question
Which of the following is an example of “adverse selection”?
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Question 111 of 409
111. Question
All of the following are moral hazards affecting Health Insurance underwriting Except?
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Question 112 of 409
112. Question
Which of the following are true regarding gender in Insurance underwriting?
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Question 113 of 409
113. Question
Joannie is a truck driver, Alice is a sous chef, and Angie is a demolition expert using explosives in underground mining.
Which occupation would have the highest probability and severity of an occupation injury?
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Question 114 of 409
114. Question
Janice is trying keep her premiums as low as possible. Which of the following might Janice use to keep her premiums “low”?
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Question 115 of 409
115. Question
___________ _____________ uses an insurer specialist to review an insured’s condition and care and to plan treatment paths for the insured that meet their medical needs in a manner that mitigates unnecessary cost.
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Question 116 of 409
116. Question
What is the morbidity for diabetes in males aged 41 to 50 if there are 49 incidences per thousand?
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Question 117 of 409
117. Question
The three primary actuarial factors are…
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Question 118 of 409
118. Question
Which, if any, of the following statements are correct regarding “risk-profiles”?
Statement I. Preferred risks have a better-than-average “risk profiles”.
Statement II. Uninsurable risks have “risk profiles” that are so low they cannot be written actuarially in a profitable way.CorrectIncorrect -
Question 119 of 409
119. Question
______________________ integrate the financing and delivery of health care services to contain cost and to provide health care and services as efficiently as possible.
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Question 120 of 409
120. Question
Individual premiums paid for Disability Income policies are not tax deductible and ___________ received are not taxed to the insured.
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Question 121 of 409
121. Question
Yuhong Song’s HMO is using which “medical cost management” approach when asking her to get a “required” second opinion before having a procedure?
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Question 122 of 409
122. Question
True or False? Health care claims increase across all ages; the older an insured the higher the insurance premium.
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Question 123 of 409
123. Question
Which of the following are insurance company/insurance policy expenses?
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Question 124 of 409
124. Question
All of the following are risk factors in Health Insurance underwriting EXCEPT?
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Question 125 of 409
125. Question
The NAIC’s main objective is the formation of a code of _______ for the industry.
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Question 126 of 409
126. Question
The Relation of Earnings to Insurance provision helps to keep an insured from unrealistically over-purchasing ___________ insurance?
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Question 127 of 409
127. Question
Jerry has a policy which is “Conditionally Renewable”. The insurance company has the contractual option to cancel the policy but any cancellation is limited to….
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Question 128 of 409
128. Question
The _________________ provision allows the insurer to adjust the premium if either the age or sex of the application was misstated on the application of insurance.
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Question 129 of 409
129. Question
The Notice of Claim provision requires the insured to place the insurance company on notice of a claim “within a __________ period of time”.
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Question 130 of 409
130. Question
Micah failed to make his scheduled monthly payment and he did not make the payment within the 30 day grace period. He has filed a reinstatement application with the company which was accepted. A week after the reinstatement Micah filed a claim for bronchitis which was denied…
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Question 131 of 409
131. Question
Johanna is late with her Health Insurance monthly payment by fourteen days.
Does Johanna’s insurance company have to accept her late payment?
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Question 132 of 409
132. Question
True or False? The Time Limit on Certain Defenses provision allows a bar of coverage after the incontestable period in the policy has expired.
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Question 133 of 409
133. Question
How does the “entire contract” provision protect an insured?
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Question 134 of 409
134. Question
Kara got hurt rollerblading January 1st; she would have until what date to submit a proof of loss to have her claim paid?
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Question 135 of 409
135. Question
True or False? The Claim Forms provision places the burden on the insurance company to provide an insured with a claim form within sixty (60) days from the notice of claim.
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Question 136 of 409
136. Question
Juliette has a son turning twenty-six next year and she is concerned that he will not be eligible for coverage on her Health Insurance plan. How will you help Julliette with her son’s Health Insurance coverage?
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Question 137 of 409
137. Question
Jerry has a policy which is “Optionally Renewable”. The insurance company has the contractual option to cancel the policy but any cancellation is limited to….
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Question 138 of 409
138. Question
Justyn owns a life insurance policy on himself and wants to change the beneficiary on the policy; he can change the policy beneficiary at any time unless the beneficiary is __________.
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Question 139 of 409
139. Question
Kara got hurt rollerblading January 1st; and filed her Proof of Loss on April 1st. By what date must the insurance company pay Kara’s claim?
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Question 140 of 409
140. Question
Kevin has had a change in his occupation; which policy type is most affected by this change in occupation?
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Question 141 of 409
141. Question
The NAIC provision “Legal Actions” provision requires an insured to wait until 60 days after filing a proof of loss with the insurance company before any formal ______ action can be taken against the insurer.
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Question 142 of 409
142. Question
You are selling Mrs. Jane Wilson a Long Term Care policy. She would like to keep the premium as low as possible.
What is the maximum elimination period that can be applied to a Florida policy?CorrectIncorrect -
Question 143 of 409
143. Question
Long-Term Care normally refers to care of ___ days or longer in an adult day care, nursing home, or at the insured’s home.
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Question 144 of 409
144. Question
Ten Koney was hospitalized and used Medicare and his Medigap Plan A benefits to pay for all of his hospital expenses. He is now in need of long term custodial care.
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Question 145 of 409
145. Question
LTC benefits are ___________ if they conform to HIPPA, the IRC, and follow model NAIC long-term care provisions.
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Question 146 of 409
146. Question
True or False? Home Health Care is in the insured’s home and Adult Day Care is in a commercial facility.
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Question 147 of 409
147. Question
*Skilled Nursing* care is continuous, around-the-clock care provided by licensed medical professionals under the direct supervision of a __________.
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Question 148 of 409
148. Question
Activities of Daily Living (ADLs) are the self care activities of:
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Question 149 of 409
149. Question
HIPAA compliant LTC policies are required to be _______________ (the policy cannot be cancelled as long as premiums are paid; up to a term of years or attained age).
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Question 150 of 409
150. Question
Elizabeth is not longer able to bathe, dress, or get in and out of bed by herself.
Is Elizabeth eligible for LTC coverage?
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Question 151 of 409
151. Question
Medigap policies pay health care cost that Medicare does not such as:
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Question 152 of 409
152. Question
Cassidy Jones has purchased a Medigap policy which her agent delivered to her ten days ago. Mrs. Jones has decided she does not want the policy.
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Question 153 of 409
153. Question
Long-Term Care services include services required by the chronically ill and/or cognitively impaired including all but which of the following?
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Question 154 of 409
154. Question
Juliana Clifford has a 60 day elimination period and LTC daily benefits of $250 per day. If she has been in long term care for 100 days will she incur any taxation on any benefits received?
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Question 155 of 409
155. Question
Ralph Keith’s LTC policy pays up to $125 per day in a nursing home and up to $75 per day for at-home care.
Keith has been at the Mountain State Elder Care facility for eight weeks and he has racked up a bill of $5,000.How much will Ralph’s LTC policy pay towards his bill?
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Question 156 of 409
156. Question
Which benefits are covered by Medicaid which are not covered by Medicare?
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Question 157 of 409
157. Question
Medicaid Reform in 2005 provided flexibility in benefits with a focus on __________________ in hopes of reducing Medicaid cost.
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Question 158 of 409
158. Question
The ___________________ program was created to provide health insurance to uninsured children.
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Question 159 of 409
159. Question
Which, if any, of the following concerning Medicare Part C are correct.
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Question 160 of 409
160. Question
Greg is Medicare eligible and is employed at Walmart and has health insurance through Walmart. Greg is hospitalized for 14 days and has $9,000 in doctor’s expenses.
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Question 161 of 409
161. Question
Medicare Part A provides a lifetime reserve of 60 days of hospital coverage when a patient has exceeded ___days of coverage in a benefit period.
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Question 162 of 409
162. Question
Medicare Part A covers Hospice care for the terminally ill patients. Hospice eligibility requires a doctor to certify the patient has a ______ month or less life expectancy.
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Question 163 of 409
163. Question
True or False? Medicare will pay for a private hospital room but will not pay for private duty nursing.
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Question 164 of 409
164. Question
Juanita’s hospitalization would be covered by Medicare Part A and her surgeon’s expenses would be covered under ______________.
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Question 165 of 409
165. Question
True or False? The federal government created Medicare to provide medical care to the rich and the famous.
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Question 166 of 409
166. Question
Juanita is eligible for Medicare and has been hospitalized for the last 59 days.
How will Medicare assist Juanita for her hospital expenses?
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Question 167 of 409
167. Question
What is the Medicare “donut hole”?
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Question 168 of 409
168. Question
Medicare Part B pays ___% of covered expenses after the deductible has been exhausted.
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Question 169 of 409
169. Question
Medicare Advantage plans pay for ____________________ basis rather than on a pay-per-service basis.
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Question 170 of 409
170. Question
Which, if any, of the following statements are correct?
Statement I. Medicare Part A covers hospital expenses.
Statement II. Medicare Part B covers health insurance coverage.
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Question 171 of 409
171. Question
Medicare is funded by employee and employer FICA contributions. Employees contribute 1.45% of all earned wages for Medicare. What amount if any is contributed by the employer?
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Question 172 of 409
172. Question
Workers Compensation insurance and/or benefits are required by state law and are an __________________ for employees when injured in work related activities.
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Question 173 of 409
173. Question
Jan Bridges was injured in the course and scope of her employment and has incurred medical expenses, lost wages, and non-economic loss due to pain and suffering.
Can Workers Compensation help Jan with any of these expenses/losses? (select all that apply)
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Question 174 of 409
174. Question
All of the following are eligible for Medicare coverage EXCEPT?
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Question 175 of 409
175. Question
Travel Insurance is an example of which type of policy?
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Question 176 of 409
176. Question
If an insured were to die in a hang gliding accident how would an AD&D policy with only the “accidental means” language in it respond to a claim?
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Question 177 of 409
177. Question
The amount payable for death in an AD&D policy is known as the policy’s _____________.
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Question 178 of 409
178. Question
The amount payable for dismemberment of loss of a stipulate body part or function in an AD&D policy is known as the policy’s ___________.
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Question 179 of 409
179. Question
True or False? Accidental Death and Dismemberment policies pay a lump-sum benefit in the event of an accidental death or injury.
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Question 180 of 409
180. Question
Examples of special risk policies might include insuring: (select all that apply)
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Question 181 of 409
181. Question
Dr. Juliet Molar was involved in a serious automobile accident and is no longer capable of working in her dental practice. If she is capable of teaching would she meet the “any occupation” definition of being disabled?
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Question 182 of 409
182. Question
Betty Turner was injured hanging curtains in her spare bedroom one sunny spring day. Unfortunately Betty had difficulty raising her right arm and turning her head or torso to the right and she was out of work for six months. When she came back to work she re-injured her neck in the first month and is again incapable of performing her regular duties at the Fred Astaire Dance Studio.
What provision in a DI policy is controlling when determining if a new elimination period starts with the re-injury or if the re-injury is considered part of the original disability?
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Question 183 of 409
183. Question
Claudio earns $3,000 a month and has a Disability Income policy which pays $2,100 of his earnings as a flat income benefit. If Claudio becomes totally disabled what amount will his DI monthly benefit be?
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Question 184 of 409
184. Question
Which, if any, of the following statements are correct?
Statement I. Group DI policies normally pay on a percentage of income basis.
Statement II. Individual DI policies normally pay on a percentage of income basis.
Statement III. Group DI policies normally pay on a flat/stated amount basis.
Statement IV. Individual DI policies normally pay on a flat/stated amount basis.CorrectIncorrect -
Question 185 of 409
185. Question
True or False? Accidental Means is the most stringent disability provision.
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Question 186 of 409
186. Question
Calculate Sam’s partial disability benefit if he can only work half-time now and she was previously receiving $900 a week and is being paid a “flat amount” of 60% for the last twelve weeks.
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Question 187 of 409
187. Question
Shelly has suffered a serious injury and cannot sit or stand for long periods of time. Shelly has returned to work but she cannot sit or stand for long periods of time in her capacity as a butcher. Shelly’s doctor has limited her to no more than four hours per day.
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Question 188 of 409
188. Question
Which, if any, of the following are considered a presumptive total disability?
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Question 189 of 409
189. Question
Chris Johnson has a Disability Income policy with a sixty day probationary period. Three weeks after the policy went into force Chris breaks his leg playing church softball.
Will Chris be able to make a compensable DI claim?
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Question 190 of 409
190. Question
Which of the following occupations are most likely to have a “non-occupational” type Disability Income policy?
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Question 191 of 409
191. Question
Becky has purchased a DI rider which increases benefits over time to keep up with inflation.
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Question 192 of 409
192. Question
What must happen before an insured can successfully file a Disability Income claim under the DI Social Security rider?
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Question 193 of 409
193. Question
You have explained to your insured that Disability Income Insurance is very important as part of an overall plan to protect the insured against the financial loss of wages due to an injury, illness, accident or sickness.
What might you say to your proposed insured to encourage her to protect against this exposure to loss of income?
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Question 194 of 409
194. Question
High Deductible Health Care Plans are characterized by:
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Question 195 of 409
195. Question
The insured has a Basic Medical Expense plan that pays up to $10,000 for any occurrence. The insured also carries a Supplemental Major Medical policy with a $1,000 “integrated deductible”. The insured suffers a $16,000 loss.
How much if any will the Supplemental Major Medical plan cover?
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Question 196 of 409
196. Question
The insured has a Basic Medical Expense plan that pays up to $10,000 for any occurrence. The insured also carries a Supplemental Major Medical policy with a $500 deductible. The insured suffers a $12,500 loss.
How much if any will the Supplemental Major Medical plan cover?
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Question 197 of 409
197. Question
The insured has $10,000 of medical expenses and his Major Medical Expense policy has a $1,000 deductible and a 80% coinsurance provision.
How much will the insured absorb of the loss taking his deductible and coinsurance percentage into consideration?
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Question 198 of 409
198. Question
How much will the insurance company pay if an insured has $250,000 of medical expenses and his Major Medical policy has a $10,000 deductible and a 90% coinsurance provision with a “Maximum Out-of-Pocket” provision stating the insured will not pay over $10,000 during the policy term?
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Question 199 of 409
199. Question
Sheronda has a Basic Medical Expense plan and a Supplementary Major Medical Expense plan. If Sheronda has a $15,000 hysterectomy and her Basic Medical Expense plan covers $10,000 of the cost how much will her Supplementary Major Medical plan pay?
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Question 200 of 409
200. Question
After a careful review Autumn revealed that she had purchased a Basic Medical Expense plans covering only specific, select, and narrowly defined medical care issues. What she really wanted was a ________________ plan to cover on a more comprehensive basis with coverage on a broader basis.
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Question 201 of 409
201. Question
What are the lifetime policy limits for ACA compliant Major Medical Expense Insurance Plans?
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Question 202 of 409
202. Question
Which of the following are covered in a Major Medical insurance policy?
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Question 203 of 409
203. Question
Basic Surgical Expense insurance provides benefits on a:
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Question 204 of 409
204. Question
Peggy has a Basic Hospital Expense policy which pays $150 a day up to 30 days. Peggy was in the hospital for 45 days and the cost per day was $125.
How much with the insurance company pay Peggy?
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Question 205 of 409
205. Question
Kara has a “fixed-rate policy” which pays on a scheduled basis. Dolores’ policy pays for actual cost incurred.
What type of payment approach is in Dolores’ policy?
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Question 206 of 409
206. Question
To meet the OASDI “Disabled” definition an individual must be mentally or physically disabled to the extent that she cannot perform any substantial gainful work and the determination requires the disability to have an expected duration of __ months or longer.
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Question 207 of 409
207. Question
The _____________________ requires employers with twenty-five (25) or more employees to offer enrollment in an HMO if health care benefits are offered to employees.
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Question 208 of 409
208. Question
All of the following are parties to the “service provider” approach to healthcare/health insurance EXCEPT?
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Question 209 of 409
209. Question
Disabled employees are entitled to workers compensation benefits as ________________ without having to sue their employer for benefits BUT the employee correspondingly gives up the right to sue the employer.
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Question 210 of 409
210. Question
Erik has met the OASDI definition of “disabled for the past eleven months.
Does he qualify for OASDI Disability benefits?
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Question 211 of 409
211. Question
Medicare provides programs of health insurance for:
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Question 212 of 409
212. Question
Point-of-Service Plans authorize and _________ subscriber referrals to specialist and hospitals.
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Question 213 of 409
213. Question
Which of the following, if any, are characteristics of Preferred Provider Organizations?
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Question 214 of 409
214. Question
The right of assignment built into most commercial health policies lets policyowners _______ benefit payments from the insurer directly to the health care provider
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Question 215 of 409
215. Question
Employer “Self-Insured Plans” are administered by which of the following?
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Question 216 of 409
216. Question
Bill Hoover’s Health Insurance policy has a renewability provision which allows the insurer to non-renew the policy at the policy’s anniversary date.
What renewability provision is in Bill Hoover’s Health Insurance policy?
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Question 217 of 409
217. Question
Jeremy has a Health Insurance policy with a renewal provision that does not allow the insurance company to cancel the policy and his rates cannot be increased subject to an age attainment provision in the policy.
Which renewability provision is in Jeremy’s Health Insurance policy?
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Question 218 of 409
218. Question
Lucky Charms has a(n) _________ rating plan which provides either a retroactive discount or future credit on their next renewal based upon the insured’s favorable loss history and expenses.
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Question 219 of 409
219. Question
Greg is a single parent with two children; the 2018 Federal Poverty level for a three person household is $20,780.
What is the most Greg could earn to still be ACA “subsidy eligible”?
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Question 220 of 409
220. Question
Kathy wants to purchase an insurance policy that will provide income to her if she becomes disabled and unable to work.
What type of insurance would you recommend for Kathy?
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Question 221 of 409
221. Question
Darnell’s Health Insurance policy has a renewable provision which allows the insurer to non-renew his policy but only for specified reasons stated in the policy.
Which renewability provision is in Darnell’s Health Insurance policy?
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Question 222 of 409
222. Question
Which, if either, of the following are correct?
Statement I. Loss Reserves are set aside for future claims.
Statement II. Premium Reserves are set aside for current claims.
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Question 223 of 409
223. Question
The Affordable Care Act requires employers with 50 or more employees to provide health insurance or pay a fine of $______ per worker for any worker receiving federal subsidies to purchase health insurance.
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Question 224 of 409
224. Question
If you have an ACA compliant Health Insurance policy up to what age will your insurance policy and insurance company allow you to keep your graduate student daughter on your policy?
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Question 225 of 409
225. Question
If four partners choose a cross-purchase buy-sell plan and the business is valued at $1,600,000 how much life insurance will each partner have to purchase on the lives of each other partner?
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Question 226 of 409
226. Question
Why would a Partnership Buy-Sell Plan be so important to partners Bruce Stone and Robert Quarry.
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Question 227 of 409
227. Question
If eight owners of a “close corporation” choose a close corporation stock redemption buy-sell plan and the company is valued at $6,000,000 how much life insurance will each owner have to purchase on the lives of each other owner?
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Question 228 of 409
228. Question
If four partners enter into a partnership entity buy-sell plan and the business is valued at $1,600,000 how much life insurance will each partner have to purchase on the lives of each other partner?
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Question 229 of 409
229. Question
Michele, a mother of two, is fifty-two years old and plans on working until she is sixty-five. Her current income is $48,000 and she pays $7,000 in taxes and Michele absorbs $10,000 per year. How much would you use as “earnings” in a Human Life Value approach for Michele.
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Question 230 of 409
230. Question
Who would be the likely purchaser of business interruption insurance?
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Question 231 of 409
231. Question
Mr. Ricky Cotton of Coconut Grove, Florida has recently passed away. Ricky was the family breadwinner and is survived by his thirty-forty year old wife, Sheila, and twelve year old daughter, Cherri.
How long will Sheila’s “blackout period” be?
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Question 232 of 409
232. Question
The __________________________ provision allows an insured suffering from a terminal illness to receive “living benefits” while they are alive so they and their families can continue in their lifestyle, maintain their residency, or pay for the insured’s medical expenses.
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Question 233 of 409
233. Question
Mr. Ricky Cotton of Coconut Grove, Florida has recently passed away. Ricky was the family breadwinner and is survived by his thirty-four year old wife, Sheila, and twelve year old daughter, Cherri.
How many years will Cherri be eligible to receive survivor’s dependent’s benefits?
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Question 234 of 409
234. Question
You are working with Kenny Ray to determine the appropriate amount of Life Insurance Mr. Ray should have. Which of the following should be included in calculating Kenny Ray’s “final expense fund”? (select all that apply)
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Question 235 of 409
235. Question
What interest rate should be used in computing Michele’s Human Life Value if the current inflation is at 2%, Federal Funds rate is 2.25%, the rate on a CD is 2.35%, and the rate on a 30 year fixed mortgage is 4.50%.
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Question 236 of 409
236. Question
Michele, a mother of two, is fifty-two years old and plans on working until she is sixty-five. Her current income is $48,000 and she pays $7,000 in taxes and Janet absorbs $10,000 per year.
Michele’s “work-life” equals?
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Question 237 of 409
237. Question
If eight owners of a “close corporation” choose a close corporation cross-purchase buy-sell plan and the company is valued at $6,000,000 how much life insurance will each owner have to purchase on the lives of each other owner?
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Question 238 of 409
238. Question
Which type of plan requires fixed contributions with future benefits derived from accumulations from contributions and interest?
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Question 239 of 409
239. Question
How much can Jackie Joiner Jackie contribute to her SEP in a given year including contributions to her six employees?
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Question 240 of 409
240. Question
If the Lucky Charms retirement plan is a Profit-Sharing Plan, LCDCA will be required to make:
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Question 241 of 409
241. Question
Kelvin is 70 years old is receives over half of his support from his fully insured daughter who has recently died.
What benefits if any is Kelvin entitled to?
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Question 242 of 409
242. Question
Christi’s mother, Pam, passed away when Christi was six years old. Pam has accumulated the full forty credits necessary for full survivor benefits. What percentage of Pam’s PIA is Christi eligible for?
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Question 243 of 409
243. Question
Teddy is 62 years old and his wife Petula is a fully insured worker having accumulated the full forty credits. Petula passed away and Teddy is wondering if he will receive Petula’s full PIA as a monthly lifetime income benefit.
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Question 244 of 409
244. Question
Payroll taxes are levied against a set “taxable wage base” with a portion of the tax funding OASDI and the other portion funding ______________.
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Question 245 of 409
245. Question
William X of Miami, Florida has accumulated sixteen credits in the last thirteen quarters.
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Question 246 of 409
246. Question
Which, if any, of the following statements regarding Social Security are correct?
Statement I. The Social Security system uses an accrued “credit” system to determine eligibility for benefits.
Statement II. The maximum accrued credits are 12 credits per year (one per month).
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Question 247 of 409
247. Question
The Social Security system provides a basic floor of protection to all working Americans against the financial problems brought on by:
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Question 248 of 409
248. Question
Social Security defines a disability as one in which the worker is unable to engage in:
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Question 249 of 409
249. Question
True or False? Surviving spouses with children “eligible for benefits on the deceased spouse’s record” can receive benefits until the child or children reach 21 years of age.
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Question 250 of 409
250. Question
All OASDI benefits are calculated from the worker’s:
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Question 251 of 409
251. Question
What percentage of a workers earned income (wages) are taxed for FICA?
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Question 252 of 409
252. Question
Peggy Sue has accumulated thirty-two credits in the Social Security’s system for determining eligibility for benefits.
Is she eligible for full retirement and survivor benefits?
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Question 253 of 409
253. Question
True or False? All workers are covered by Social Security.
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Question 254 of 409
254. Question
Which of the following organizations would qualify for a 403(b) retirement plan?
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Question 255 of 409
255. Question
Walter E. Chimp has been contributing $100 per paycheck into his company sponsored defined contribution plan.
What percentage of Mr. Chimp’s contributions are vested?
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Question 256 of 409
256. Question
Lucky Charms is an employer who prides itself on offering and providing “best of class” benefits to Lucky Charms employees.
Which of the following will Lucky Charms receive or experience as a “best of class” benefit provider?
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Question 257 of 409
257. Question
If Lucky Charms Diet Clubs of America (LCDCA) is determined to be discriminatory in their retirement plan what will likely happen to the plan?
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Question 258 of 409
258. Question
Lucky Charms Diet Clubs of America (LCDCA) has a qualified retirement plan with 100% vesting for employees with two or more years of service.
Which, if any, of the following employees are eligible to participate in Lucky Charms’ retirement plan.
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Question 259 of 409
259. Question
True or False? ERISA’s purpose is to protect the rights of employers with employer-sponsored plans.
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Question 260 of 409
260. Question
Sharon Trout works for Lucky Charms Diet Clubs of America (LCDCA) as an account executive. LCDCA has a qualified 100% employer funded retirement plan.
When are the earnings in the plan taxed to Sharon Trout?
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Question 261 of 409
261. Question
Which, if any, of the following statements are correct regarding the taxation of payments made to the annuitant?
Statement I. The portion of each benefit payment that can be attributed to the annuitant’s investment is tax-free.
Statement II. The portion of each benefit payment that is attributed to earned interest it tax-free.
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Question 262 of 409
262. Question
In an Indexed Annuity if the participation rate is 75% and the index increases by 10% what amount is credited to the cash value of the account?
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Question 263 of 409
263. Question
All of the following are characteristics of indexed annuities EXCEPT?
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Question 264 of 409
264. Question
Which, if any, of the following statements are correct?
Statement I. Fixed Annuities provide a fixed, guaranteed accumulation or payout.
Statement II. Variable Annuities attempt to offset inflation by providing a benefit linked to a variable underlying investment account.
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Question 265 of 409
265. Question
Kennedy has paid $400,000 in annuity payments. She annuitized her annuity five years ago with the “installment refund” option and has received $60,000 in payments from the insurance company.
If Kennedy were to die today how much would the insurance company pay her beneficiaries?
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Question 266 of 409
266. Question
Kennedy has paid $400,000 in annuity payments. She annuitized her annuity five years ago with the “straight life income” option and has received $60,000 in payments from the insurance company.
If Kennedy were to die today how much would the insurance company pay her beneficiaries?
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Question 267 of 409
267. Question
Which, if any, of the following statements are correct regarding annuity income payments?
Statement I. Deferred annuities make the first payment to the annuitant after one payment interval from the date of purchase.
Statement II. Immediate annuities by design make payments to the annuitant at some future date.
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Question 268 of 409
268. Question
Beverly decides against the lump-sum option for funding her new annuity and has chosen periodic payments instead. Why might Beverly have chosen periodic payments as an option?
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Question 269 of 409
269. Question
You are selling Helen an annuity and are listing some of the major benefits of annuities. Which, if any, of the following might you share with Helen? (select all that apply)
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Question 270 of 409
270. Question
All of the following are acceptable 1035 exchanges EXCEPT?
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Question 271 of 409
271. Question
Beverly wants to start an annuity and she is considering a single lump sum amount to fund the annuity.
What other option does Beverly have to fund her new annuity?
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Question 272 of 409
272. Question
The _________ Period starts when the annuitization of the policy begins; it is the time of liquidating the annuity by paying the annuitant.
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Question 273 of 409
273. Question
When annuitization begins no further payments can be made into the annuity and the ___________ period ends.
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Question 274 of 409
274. Question
Which statement(s), if any, are correct regarding insurance and annuities?
Statement I: The creation of an estate at the death of “the customer” is a characteristic of Life Insurance.
Statement II: The liquidation of a principal sum over the life of “the customer” is a characteristic of Annuities.
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Question 275 of 409
275. Question
The Joint and Full Survivor option pays the most of any survivor option as the surviving annuitant receives ____% of the payment.
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Question 276 of 409
276. Question
Kennedy has paid $400,000 in annuity payments. She annuitized her annuity five years ago with the “cash refund” option and has received $60,000 in payments from the insurance company.
If Kennedy were to die today how much would the insurance company pay her beneficiaries?
CorrectIncorrect -
Question 277 of 409
277. Question
Linda started an annuity three years ago and wishes to withdraw a very small portion of the annuity to help pay for her granddaughters first semester in college. She knows that there are surrender charges in the first five years of the annuity but is shocked to find that no surrender charges were levied against the withdrawal.
How was Linda able to receive the withdrawal without incurring surrender charges?
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Question 278 of 409
278. Question
Which, if any, of the following are variables in the calculation of an annuity payout? (select all that apply)
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Question 279 of 409
279. Question
True or False? The maximum amount of Credit Life Insurance a person can purchase is three times the amount of the loan or credit applied for.
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Question 280 of 409
280. Question
Terminated employees under a group life plan are eligible to convert to an individual plan without:
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Question 281 of 409
281. Question
Florida law mandates all group life policies to have a _________ provision if the “employment” terminates.
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Question 282 of 409
282. Question
Which, if any, of the following statements are correct?
Statement I. Contributory Plans: are group plans where the employer pays the entire premium.
Statement II. Non-Contributory Plans: are group plans where the employee is required to pay a portion of the premium.
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Question 283 of 409
283. Question
Calculate the amount of Life Insurance that is employer provided if the benefits are based upon an employee’s earnings. Jerome is a full time employee earning $35,000 per year. If Jerome’s employer provides 1 X earnings for the benefit.
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Question 284 of 409
284. Question
True or False? Group Insurance plans are underwritten on the group as a whole not on any person or persons.
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Question 285 of 409
285. Question
True or False? Most Group Life Insurance policies use a universal life policy as the underlying policy type.
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Question 286 of 409
286. Question
Which, if any, of the following are “eligibility criteria” for the purchase of Group Insurance?
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Question 287 of 409
287. Question
All BUT which of the following are eligible groups for a group life insurance policy?
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Question 288 of 409
288. Question
A Joinder Agreement is the written document which spells out the relationship between a ________________ and an employers group.
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Question 289 of 409
289. Question
Florida law provides up to ___ days after an “employment” termination for an individual to convert their group coverage to an individual plan.
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Question 290 of 409
290. Question
True or False? Medical Exams are not required as a part of ALL Life Insurance Applications.
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Question 291 of 409
291. Question
Theresa “Super-T” Jones, a round table and award winning Life Insurance Agent, has taken an application and collected the annual premium from Ryan Wails (the policyowner and insured).
What will “Super-T” be giving to Mr. Wails before concluding her sale?
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Question 292 of 409
292. Question
Which of the following is a field underwriting task performed by an agent?
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Question 293 of 409
293. Question
A _____________ receipt guarantees coverage even if the proposed insured is found to be uninsurable; up until the time the insurer has formally rejected the insured’s application.
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Question 294 of 409
294. Question
The purpose of the ________________________ is to serve as a reliable source of medical information in the underwriting of a client who is applying for life insurance.
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Question 295 of 409
295. Question
True or False? The purpose of the Statement of Insured’s Good Health is to extend the insured’s Free-look period to 60 days.
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Question 296 of 409
296. Question
True or False? An insurable interest must exist at the time of the policy application but does not need to exist at the time the policy proceeds are actually paid.
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Question 297 of 409
297. Question
Which, if any, of the following are good reasons for an agent to personally deliver to the insurance policy to the policyowner.
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Question 298 of 409
298. Question
Representations must be true only to the extent that they are material to the risk. A __________ is a statement that is considered literally true. A __________ that is not literally true in every detail, even if made in error, is sufficient to possibly render a policy void.
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Question 299 of 409
299. Question
The _________________ established procedures for the collection and disclosure of information obtained on consumers through investigation and credit reports.
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Question 300 of 409
300. Question
Part III – Agent’s Report is important because, in an insurance application:
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Question 301 of 409
301. Question
True or False? If the Life Insurance policyowner is a firm or corporation, one or more partners or officers, other than the proposed named insured, must sign the application.
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Question 302 of 409
302. Question
The ___________________________________________ places requirements on health care providers with regards to disclosing patients’ medical information.
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Question 303 of 409
303. Question
The _______________ questionnaire is required of any applicant who spends a significant amount of time flying, such as an airline pilot.
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Question 304 of 409
304. Question
Which, if any, of the following are examples of relationships that automatically carry an insurable interest?
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Question 305 of 409
305. Question
Dr. Babs Henn Jane took out a Life Insurance policy on June 30th paying her agent for the full years. The policy was issued by the insurance company and sent to the company’s local agent September 1st for the agent to deliver the policy.
What is the Policy Effective Date?
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Question 306 of 409
306. Question
Part ___ of a Life Insurance Application asks about the insured’s hobbies, profession, and if the insured smokes?
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Question 307 of 409
307. Question
Bruce Li has chosen the settlement option where the insurance company pays the beneficiary equal amounts of money at regular intervals over a specified period of years.
Which settlement option has Bruce Li chosen?
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Question 308 of 409
308. Question
Jackie Chan has chosen the settlement option where the insurance company holds the death proceeds for a specified period of timeand, at regular intervals, pay the beneficiary the interest earned on the proceeds.
Which settlement option has Jackie Chan chosen?
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Question 309 of 409
309. Question
True or False? Personal and Business Life insurance premiums paid are not tax deductible.
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Question 310 of 409
310. Question
Which of the following, if either, statement is true?
Statement I: A policy’s cash value is basically the savings element of a term life policy.
Statement II: Policy reserves are the amounts required to ensure that funds will be available to pay future claims.
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Question 311 of 409
311. Question
By computing the extra deaths per thousand for any number of substandard risk an insurance company uses extra percentage tables to ____________ a substandard risk.
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Question 312 of 409
312. Question
Cherri Polka is 20 years old and the rate per thousand for Cherri is $1. Ms. Polka is purchasing a term life policy with a $250,000 face value.
What is the annual cost of her insurance policy?
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Question 313 of 409
313. Question
Rickie is using what section of the tax code to exchange her life insurance policy on a “tax-free” basis for another “like-kind” policy.
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Question 314 of 409
314. Question
True or False? A terminally ill person can sell a life insurance policy to a viatical settlement provider and not pay federal tax on the amounts received.
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Question 315 of 409
315. Question
The ________ rule provides that each portion of any life insurance proceeds attributed to interest are taxable and any portion attributed to the payment of principal is received tax free.
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Question 316 of 409
316. Question
Under NAIC guidelines an insured will receive anywhere from 25% to 50% of the policy face value in a viatical settlement.
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Question 317 of 409
317. Question
The assumed interest rate used by insurance companies must be reasonably _____________.
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Question 318 of 409
318. Question
__________ tables reflect the death rate at each age.
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Question 319 of 409
319. Question
Ralph Keith, your insured, has asked what his yearly premium payment will be for a $150,000 Whole Life Policy. His mortality cost is $520, projected interest earnings are $100, and applicable expense cost are $180.
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Question 320 of 409
320. Question
David J. Martinez is 30 years old and the rate per thousand for Pedro is $20. Mr. Martinez is purchasing a whole life policy with a $50,000 face value.
What is the annual cost of his insurance policy?
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Question 321 of 409
321. Question
Life insurance premium rates are generally expressed as an annual cost per $1,000 of __________.
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Question 322 of 409
322. Question
With the _____________ even if the principal is depleted, income payments will continue, so long as the primary beneficiary is alive.
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Question 323 of 409
323. Question
Scarlett O’Kara is 49 years old and the rate per thousand for Scarlett is $4. Ms. O’Kara is purchasing a $250,000 face value policy.
What is the annual cost of her insurance policy?
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Question 324 of 409
324. Question
The OIR requires rates must be ______ enough to cover the costs of paying claims and doing business, yet low enough so that they are not usuriously priced.
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Question 325 of 409
325. Question
Which, if any, of the following statements are true?
Statement I: Death benefits paid under a life insurance policy to a named beneficiary are not taxed as ordinary income.
Statement II: Interest paid by an insurance company on death benefit proceeds left with the company are taxed as ordinary income.
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Question 326 of 409
326. Question
For the purposes of the __________________ provision, a person is considered terminally ill when a physician certifies that the person has an illness or condition that can be reasonably expected to result in death within 2 year(s).
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Question 327 of 409
327. Question
The death proceeds of a life insurance policy can be paid out in a variety of ways. The choice is up to the policyowner, as a right of ownership, or the policyowner may leave the decision to the __________.
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Question 328 of 409
328. Question
Cassie has surrendered her whole life policy for its $35,000 accumulated cash value. Over the years Cassie paid $25,000 in premium.
What amount will Cassie be taxed on?
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Question 329 of 409
329. Question
The sum of the life insurance premiums paid by the policyowner is known as the policyowner’s ______________.
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Question 330 of 409
330. Question
Which of the following are not applicable in the individual mortality of an insured?
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Question 331 of 409
331. Question
Glen Winningham, your insured, has asked what his yearly premium payment will be for a $200,000 Whole Life Policy. His mortality cost is $490, projected interest earnings are $120, and applicable expense cost are $110.
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Question 332 of 409
332. Question
The share of operating costs applied to the computation of a life insurance premium is referred to as _____________.
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Question 333 of 409
333. Question
For a mortality table to be accurate, it must be based on two things: a large cross section of people and a large cross section of time.
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Question 334 of 409
334. Question
Which of the following, if any, are used to compute a basic life insurance premium? (select all that apply)
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Question 335 of 409
335. Question
If the insured and the policy beneficiary die at the same time how will the life insurance proceeds be paid?
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Question 336 of 409
336. Question
Jack Insured has taken out a $1,000,000 policy on his life and has established beneficiary designations as follows: Jill Insured, is to receive the full benefit; if she predeceases Jack, then Humpty Dumpty and Baa Baa Black Sheep are to share equally in the benefit; and if Humpty Dumpty and Baa Baa Black Sheep predecease Jack, the benefit is payable to Mother Goose.
What party is the tertiary beneficiary?
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Question 337 of 409
337. Question
Secondary beneficiaries are also known as __________ or successor beneficiaries.
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Question 338 of 409
338. Question
Designating an estate as beneficiary is generally not a good idea for which of the following reasons? (select all that apply)
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Question 339 of 409
339. Question
True or False? An insurable interest by the beneficiary in the life of the insured is required when the original application is written and the applicant is not the insured.
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Question 340 of 409
340. Question
Which of the following scenarios are eligible (Facility-of-Payment provision) for a claims payment without a policy beneficiary designation? (select all that apply)
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Question 341 of 409
341. Question
Michele owns a life insurance policy on Brenda; Brenda is Michele’s sister and business partner. Michele has designated herself as the beneficiary. Which type of application is this?
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Question 342 of 409
342. Question
What is the purpose of the Spendthrift Trust Clause in a life insurance policy?
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Question 343 of 409
343. Question
Which beneficiary designation passes down from a deceased primary beneficiary to the children of the beneficiary?
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Question 344 of 409
344. Question
Which, if any, of the following statements are correct?
Statement I. Jim is the policyowner and Jill is a revocable beneficiary on the policy. Jim can change the beneficiary at any time.
Statement II. Jim is the policy owner and Jill is an irrevocable beneficiary on the policy. Jim cannot change the beneficiary without Jill’s written consent.
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Question 345 of 409
345. Question
What is the main purpose of the Cost of Living Rider?
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Question 346 of 409
346. Question
The cash values in a policy are ___% vested to the policy owner and the policy owner is entitled to them at any time.
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Question 347 of 409
347. Question
The Free-Look provision in a life insurance policy affords the insured up to __ days to review the insurance policy with a full refund if the insured opts not to keep the policy.
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Question 348 of 409
348. Question
The Insurance Company agrees, in accordance with the provisions of this policy, to pay to the beneficiary the death proceeds upon receipt at the Principal Office of due proof of the insured’s death prior to the maturity date.
This is an example of?
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Question 349 of 409
349. Question
Which type of policy assignment would be most appropriate when using life insurance to secure a loan?
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Question 350 of 409
350. Question
Your insured customer would like to be protected if he becomes disabled and is unable to make his premium payments.
What policy rider will you add to his policy?
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Question 351 of 409
351. Question
Shelby has received a dividend and elects to use the dividend to purchase more insurance. Which dividend options might Shelby elect?
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Question 352 of 409
352. Question
Becky’s whole life policy has lapsed. Which non-forfeiture option will provide Becky with the same amount of coverage (albeit for a limited time)?
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Question 353 of 409
353. Question
This standard life insurance provision provides for the early payment of some portion of the policy should the insured suffer from a terminal illness or injury.
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Question 354 of 409
354. Question
Which of the following is NOT a bar to contesting an insured’s claim after the expiration of the Incontestable Clause?
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Question 355 of 409
355. Question
When Joe Insured makes a payment on his Universal Life Policy a portion of the premium payment:
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Question 356 of 409
356. Question
Jack and Jill have a Last Survivor Whole life policy with a face value of $300,000. When Jack dies how much will Jill collect?
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Question 357 of 409
357. Question
Variable insurance contracts are considered _________ contracts and fall under the regulatory arm of the office of insurance regulation and the SEC.
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Question 358 of 409
358. Question
Which, if any, of the following statements are correct?
Statement I. With the Attained Age Method the insured converts her term policy to a whole life policy
and the premium is charged for a Whole Life policy at the insured’s “attained” age at the date of the conversion.Statement II. With the Original Age Method the insured coverts her term policy to a whole life policy
and the premium charged for the Whole Life policy is the insured’s age when the original term policy was taken out.CorrectIncorrect -
Question 359 of 409
359. Question
All of the following are factors contributing to the cash value in an insurance policy EXCEPT?
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Question 360 of 409
360. Question
Roberto has a term insurance policy with a $250,000 face amount which decreases every year for 30 years; basically to cover the declining balance of his home mortgage.
What type of term insurance policy does Roberto have?
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Question 361 of 409
361. Question
A _______________ Policy gives the insured the option to renew the term policy without going through medical underwriting.
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Question 362 of 409
362. Question
Straight whole life insurance is based on the age of issue to the actuarial age of ___.
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Question 363 of 409
363. Question
If the insured wants her Universal Life insurance policy to pay the face amount of her policy plus pay her the policy’s cash value which UL Death Benefit Option should she choose?
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Question 364 of 409
364. Question
Which of the following, if any, are favorable tax treatments of life insurance policies? (select all that apply)
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Question 365 of 409
365. Question
_____________ is the unethical act of persuading a client to cancel a policy for the purpose of selling them another policy without regard to any negative affect it may have on the client.
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Question 366 of 409
366. Question
True or False? Life insurance should not be described or implied as a savings or retirement plan.
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Question 367 of 409
367. Question
Which, if any, of the following statements are correct?
Statement I. An “unauthorized” insurer is one duly authorized by a subsisting certificate of authority issued by the department to transact insurance in this state.
Statement II. An “authorized” insurer is one not so authorized.
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Question 368 of 409
368. Question
Unfair discrimination takes place in the sales or underwriting process when adverse decisions are made based on characteristics such as:
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Question 369 of 409
369. Question
____________ selling is presenting products that meet specific needs of clients so the client can make their own decisions about what products are best for them.
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Question 370 of 409
370. Question
True or False? The NAIC model regulations state that illustrations must not contain words like invisible premium.
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Question 371 of 409
371. Question
Policy replacement includes which of the following?
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Question 372 of 409
372. Question
Misrepresentation is any written or oral statements that do not accurately describe policy benefits or coverages AND misrepresentation is ________. Defamation is the false, malicious, or derogatory communication (oral or written) that injures another’s reputation or character AND defamation is ________.
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Question 373 of 409
373. Question
When using illustrations, agents are required to obtain a signed statement from the proposed insured acknowledging that non-guaranteed elements are subject to changes either higher or lower and that they are not ___________.
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Question 374 of 409
374. Question
Sharon is replacing Mrs. North’s insurance policy; all but which of the following are appropriate in the replacement?
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Question 375 of 409
375. Question
The courts have ruled that any ambiguities in contracts are construed in the most favorable light to the __________ party.
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Question 376 of 409
376. Question
Big Money Mountain Insurance Company has received Jill’s life insurance application and has issued the policy on a standard basis. The original application was on a super-preferred basis.
What has Big Money Mountain done?
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Question 377 of 409
377. Question
True or False? The acts of the agent are the acts of the insurer.
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Question 378 of 409
378. Question
Which of the following are requirements of an insurance agent as fiduciary?
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Question 379 of 409
379. Question
What is the difference between the concepts of waiver and estoppel?
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Question 380 of 409
380. Question
Which of the following can render a contract unenforceable? (select all that apply)
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Question 381 of 409
381. Question
Which legal concept states that when individuals put agreements in writing any oral representations made prior to or after the written contract do not change the contract and the written contract “stands on its own” as regards the agreement between the parties.
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Question 382 of 409
382. Question
With this type of authority an agent acts on behalf of its principal without express or implied authority granted by the principal.
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Question 383 of 409
383. Question
Life insurance ___ a personal contract between insurer and insured.
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Question 384 of 409
384. Question
Which of the following are required for a contract to be legal?
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Question 385 of 409
385. Question
_______ Law governs the relationship between an agent and insurer and that being that an act by the agent is an act by the principal.
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Question 386 of 409
386. Question
True or False? To be enforceable at law a contract must have a legal purpose.
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Question 387 of 409
387. Question
James has convinced his neighbor, a senior citizen, to allow James to take out life insurance on the life of the neighbor with James named as the beneficiary. James has advised he will pay all of the premiums and James has offered the neighbor $2,500 for participating in the transaction. This is an example of:
CorrectIncorrect -
Question 388 of 409
388. Question
Which, if any, of the following statements are correct?
Statement I. Valued Contracts pay a stipulated amount listed specifically in the policy.
Statement II. Indemnity Contracts pay the value of a loss subject to the policy limits.
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Question 389 of 409
389. Question
Insurance contracts are considered aleatory contracts because (choose all that apply):
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Question 390 of 409
390. Question
Which of the following are appropriate insurance sales practices? (select all that apply)
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Question 391 of 409
391. Question
Which association handles claims of insolvent life, accident, and health insurance companies?
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Question 392 of 409
392. Question
Which Federal Act re-established the states as the regulators of insurance?
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Question 393 of 409
393. Question
The two main purposes of industry oversight are to ensure:
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Question 394 of 409
394. Question
___________________ Organizations focus on preventive care and treatment.
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Question 395 of 409
395. Question
Dr. Jackie Vizon is an optometrist. Which of the following risk retention groups might Dr. Vizon be insured by?
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Question 396 of 409
396. Question
Social insurance programs are government programs that are funded with taxpayer dollars and serve national and state purposes. Government programs include all but which of the following?
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Question 397 of 409
397. Question
Which of the following are correct regarding “fraternal benefit societies”? (select all that apply)
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Question 398 of 409
398. Question
Which, if any, of the following statements are correct?
Statement I. Mutualization is when a mutual company converts to a stock company.
Statement II. Demutualization is when a stock company converts itself to the mutual company.
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Question 399 of 409
399. Question
Jack purchases his insurance from a company that pays him a dividend at the end or each year (lucky Jack).
What type of insurer does Jack have his insurance with?
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Question 400 of 409
400. Question
Which, if any, of the following are elements of an “insurable risk”? (choose as many as apply)
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Question 401 of 409
401. Question
Grumbly Greg Granger leaves his keys in his unlocked car when he goes to the store. Greg tells everyone I hope somebody steals that “hunk of junk” so I can make an insurance claim and buy a new car.
What type of hazard is Grumbly Greg exhibiting?
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Question 402 of 409
402. Question
Never flying in a plane will greatly reduce the likelihood of ever being involved in an airplane crash.
This is an example of which risk management technique?
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Question 403 of 409
403. Question
The aggregating of assets to create a pool of resources to address losses experienced by pool members is called:
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Question 404 of 409
404. Question
_________________ can provide a consistent flow of income to an insured for his lifetime or an allotted amount of time or until death.
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Question 405 of 409
405. Question
Geri stores her gasoline next to her matches and dynamite; to most this appears to be a ___________ which could lead to an explosion.
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Question 406 of 409
406. Question
Wearing a helmet when riding a motorcycle may not eliminate the exposure to bodily injury from a motorcycle accident BUT it would minimize any injury that would occur if an accident happened.
What type of risk treatment technique is this?
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Question 407 of 409
407. Question
Risk Transfer is a way to deal with risk so that the loss is handled by another party.
What is the most common form of risk transfer?
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Question 408 of 409
408. Question
Human Life Value is the economic valuation of an individual based on the individual’s ____________ both present and future.
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Question 409 of 409
409. Question
________________ is ONLY the chance of loss.
CorrectIncorrect