Insurance Exam 6

Front 1

Life insurance settlement options include all of the following, except:

Back 1

Extended term option

Front 2

All of the following are featrues of a preferred provider organization (PPO), except:

Back 2

Primary care physicians act as gatekeeper

Front 3

What must a life agent do in order to be able to sell 24-hr care coverage?

Back 3

Nothing; they are already authorized to sell this coverage with a life license

Front 4

A life insurance application is important for all of the following reasons, except:

Back 4

The beneficairy must sign the application before the insurer will issue the policy. (The beneficary is not necessarily a party to the contract)

Front 5

The price of insurance for each exposure unit is called the?

Back 5

Rate

Front 6

By adopting self-funded health plan, an employer will have a greater flexibilty in all areas of the planning, except:

Back 6

Claims severity

Front 7

To authorize the release of an attending physician's report, the applicant must:

Back 7

Sign a consent form

Front 8

Yearly probabilities of death are shown in:

Back 8

Mortality tables

Front 9

Members of the Medical Information Bureau are required to report:

Back 9

Medical impairments found during the underwritting process

Front 10

When reffering to an insurance contract, when must a representation be made?

Back 10

Either at the time of or before the policy is issuance

Front 11

Frank and Ernest are 25 yr old identical twins. They are both in excellent health. Both buy a life policies that have $500 annual premiums. Frank buys a 5-yr renewable term policy. Ernest buys a whole life policy. Which statement is not true?

Back 11

Ernest's whole life policy will have a larger death benefit if he dies during the first 5 yrs.

Front 12

The request for an attending physician's report must be accompianed by a copy of the:

Back 12

Signed authorization

Front 13

A provision stating that health insureds and their insurers will share covered losses in an agreed proportion is called:

Back 13

Co-insurance

Front 14

Which life insurance classification carries the highest premium?

Back 14

Substandard

Front 15

A group insurance plan is a contributory when the:

Back 15

Employee pays part of the premium

Front 16

The Ca Insurance Code states that policies or certificates may be called comprehensive long term care insurance if they provide benefits for:

Back 16

Institutional ( nursing facilities) and home care

Front 17

Whose benefits are affected by the blackout period?

Back 17

The surviving spouse

Front 18

Which of the following is not an option for the use of the policy dividends?

Back 18

Fund the addition of the monthly income payments

Front 19

Who are the members of the Medical Information Bureau?

Back 19

Life insurance companies

Front 20

After the deductible, what portions does the patient pay for covered expenses under Medicare Part B?

Back 20

20%

Front 21

Which of the following functions is best defined as an insurance company's identifying and selling to potential customers?

Back 21

Unfair discrimantion

Front 22

A policy owner has the right to change all of the following reasons, except:

Back 22

The dividend schedule

Front 23

Long term care policies can be replaced for all of the following reasons, except:

Back 23

The new policy has fewer benefits and higher a premium

Front 24

When must insurance records for insurance agenets and insurance brokers be made avaibable to the insurance Commissioner?

Back 24

At all Times

Front 25

A self-insured group qualifies for stop-loss coverage after claims:

Back 25

Exceed a specified limit in a set period of time

Front 26

In a re-insurance agreement, the insurance company that transfers its loss exposure to another insurer is called?

Back 26

Primary insurer

Front 27

Which type of insurance policy provides a death benefot that matches the porjected outstanding debt on an individual's home?

Back 27

Mortgage protection

Front 28

What do we call the process whereby insurer's decide which customers to insure, and what coverage to offer?

Back 28

Underwritting

Front 29

Which of the following is the best definition of premium?

Back 29

Money the insured pays the Insurer to obtain the benefits in the policy

Front 30

If an insurer pays an insured $25,000 in lost wages, $45,000 for physicians vists and hospitals costs, and $15,000 for physical therapy trestments, and later discovers that the claim was fraudulent, the insured may be fined as much as:

Back 30

$170,000

Front 31

What rule is used to determine the inportance of representation?

Back 31

The materiality of concealment

Front 32

All of the following statements about social security disability benefits are true, except:

Back 32

Benefits are designed to replace the entire amount of the worker's earnings

Front 33

An agent must submit all of the following to the insurer, except:

Back 33

A copy of all printed communications used for the presentation

Front 34

What is the difference between a conditional premium receipt and a binding premium receipt?

Back 34

Only a binding receipt always provides insurance that is effective from the date of the receipt is given

Front 35

After a life insurance policy has been in effect fro two yrs, what prevents it from being rescinded by the insurer?

Back 35

The inconstentability clause