Utah Insurance

Front 1

Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?

Back 1

long term care rider

Front 2

Which one of the following represents an advantage of obtaining a policy loan vesus a withdrawal?

Back 2

the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis

Front 3

When the courts look at a contract to determine the intent of the parties which of the following is considered?

Back 3

the entire contract

Front 4

How are term riders used?

Back 4

to purchase insurance on a family member of the originally insured

Front 5

What does coinsurance mean?

Back 5

The insurer and the insured share expenses over the deductible.

Front 6

All of the following statements define preexisting conditions EXCEPT

Back 6

any chronic health condition that presents symptoms and which was unknown at the time of application.

Front 7

When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial:

Back 7

2 year period

Front 8

All of the following are ownership rights EXCEPT

Back 8

switching the policy from one insured to another

Front 9

Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs?

Back 9

Free look

Front 10

Which of the following is exempted from the incontestability provision in insurance policies?

Back 10

fraudulent misstatements

Front 11

Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed?

Back 11

The insured has 90 days from the date of loss to provide proof of loss.

Front 12

Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)?

Back 12

the producer

Front 13

When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing the applicant a summary of coverage that includes all of the following EXCEPT

Back 13

a detailed and comprehensive summary of the accelerated benefit

Front 14

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?

Back 14

The policyowner has named an irrevocable beneficiary.

Front 15

Which of the following is an example of a premium payment mode?

Back 15

annual premium payment

Front 16

In order for an insurer to increase the premium on a noncancelable policy, which of the following MUST be true?

Back 16

The premium increase must be in the contract at the time it is issued.

Front 17

Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

Back 17

benefits are adjusted to an amount that the premium would have purchased at the correct age or gender

Front 18

When will a policy pay on a UCR basis?

Back 18

When particular benefits are not listed on a payment schedule

Front 19

What is the return of premium rider?

Back 19

an increasing amount of term insurance that always equals the total of premiums paid up to the current point

Front 20

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while

Back 20

commiting a misdemeanor

Front 21

All of the following are TRUE regarding incomplete applications EXCEPT

Back 21

the incomplete application can be accepted with the missing information added later.

Front 22

What is the purpose of Stranger-originated life insurance (STOLI)?

Back 22

the policy is originated primarily or solely for the purpose of resale

Front 23

All of the following are required signatures on a life insurance application EXCEPT

Back 23

the minor in a juvenile policy.

Front 24

When does insurable interest come into play in a life insurance policy?

Back 24

when the applicant for the policy is not the insured

Front 25

What specific new procedures does the USA Patriot Act require of insurance companies?

Back 25

Establish an anti-money laundering program

Front 26

Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

Back 26

Fair Credit Reporting Act

Front 27

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT

Back 27

the treatment procedures that are covered by the policy.

Front 28

What is a MIB report?

Back 28

medical information on an applicant for assessing life or health insurance risk

Front 29

What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?

Back 29

The applicant and possibly the agent initial any changes made.

Front 30

Which of the following occurs immediately after the application is submitted and the initial premium paid?

Back 30

the underwriting process begins

Front 31

Why are insurance policies considered conditional contracts?

Back 31

Certain conditions need to be met to make the contract legally enforceable.

Front 32

How do warranties differ from representations?

Back 32

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

Front 33

All of the following are classifications of risk EXCEPT

Back 33

non-nicotine.

Front 34

Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability?

Back 34

binding receipt

Front 35

Which of the following was specifically designed to address STOLI and IOLI practices?

Back 35

NCOIL Act

Front 36

Why is rehabilitation considered worthy of federal help under workers' compensation?

Back 36

it reduces insurance losses and helps regain the worker's dignity

Front 37

What type of insurance should a company purchase if it wants to insure the life of its CEO?

Back 37

key person insurance

Front 38

Under which situation must insurable interest exist between the applicant and insured at the time of application?

Back 38

When a third-party applicant names themselves beneficiary.

Front 39

In noncontributory plans, which percentage of eligible members must participate?

Back 39

100%

Front 40

All of the following are tax qualified retirement plans EXCEPT

Back 40

Section 529 plan

Front 41

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

Back 41

It is financially insufficient to cover end of life expenses.

Front 42

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

Back 42

age

Front 43

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?

Back 43

The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount.

Front 44

The group conversion option is allowed for all of the following EXCEPT

Back 44

during the annual benefits enrollment period.

Front 45

Managed care plans increase efficiency by all of the following means EXCEPT

Back 45

transferring the management of costs to the insureds.

Front 46

Which of the following is characteristic of a nonqualified plan?

Back 46

plan does not meet federal guidelines for tax benefits

Front 47

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

Back 47

when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year

Front 48

Short term disability insurance generally only covers injuries due to which of the following?

Back 48

Non-occupational injuries

Front 49

In a home healthcare benefit, all of the following are eligible expenses EXCEPT

Back 49

blood transfusions

Front 50

Which of the following amends the Social Security Act to make Medicare secondary to group health plans?

Back 50

TEFRA

Front 51

All of the following are requirements to qualify for Social Security disability benefits EXCEPT when

Back 51

unable to work in occupation in which the worker was trained or educated.

Front 52

How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?

Back 52

2 years

Front 53

Which of the following is true about a decreasing term life policy?

Back 53

The face amount reaches zero at policy expiration.

Front 54

All of the following are characteristics of variable whole life EXCEPT

Back 54

there is no guaranteed minimum death benefit.

Front 55

Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT?

Back 55

Medicare

Front 56

All of the following are characteristics of COBRA EXCEPT

Back 56

change in medical privacy procedures.

Front 57

Which of the following is the most common method to supplement Medicare coverage?

Back 57

Coverage offered by private insurers

Front 58

A basic vision care package includes all of the following EXCEPT

Back 58

safety glasses.

Front 59

Which of the following policy types is considered double indemnity?

Back 59

accidental death

Front 60

Which problem was universal life insurance designed to address?

Back 60

low interest rates during periods of high inflation

Front 61

Which is the major reason why long term care insurance is becoming increasingly important?

Back 61

As life expectancy increases, the chances of needing long term care also increase

Front 62

Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?

Back 62

major medical insurance

Front 63

Current assumption whole life policies are sensitive to which of the following?

Back 63

interest rates

Front 64

Which is the primary purpose of Health Reimbursement Accounts (HRAs)?

Back 64

To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.

Front 65

Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?

Back 65

prearranged costs for services rendered

Front 66

A group conversion option may be used in all the following instances EXCEPT

Back 66

a life-changing event, such as marriage, divorce, or childbirth.

Front 67

When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability?

Back 67

When there is a buy-sell agreement funded with life insurance to buyout the interest of a deceased owner or partner.

Front 68

Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age?

Back 68

renewable term

Front 69

Which of the following is TRUE of the limited pay whole life policy?

Back 69

Coverage continues after the policy is paid-up.

Front 70

Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?

Back 70

Joint life annuity

Front 71

Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness?

Back 71

Disability income insurance

Front 72

Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses?

Back 72

Stop Loss Limit

Front 73

In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses?

Back 73

Flexible Spending Account (FSA)

Front 74

States generally define a true "group" for insurance as requiring a minimum of how many participants?

Back 74

10

Front 75

Which of the following is TRUE of an equity-indexed annuity?

Back 75

It has a guaranteed minimum interest rate.

Front 76

All of the following statements are true regarding installments for a fixed amount EXCEPT

Back 76

Value of the account and future earnings will determine the time period for the benefits

Front 77

If a consumer requests additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply?

Back 77

7 day

5 day

3day