Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
47 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
The insurance industry is primarily regulated at the ________ level. A) Federal B) Country C) Insurers D) States |
D) States |
|
|
|
An insurer which is formed under the laws of another country is a(n): A) Alien Insurer B) Foreign Insurer C) Domestic Insurer D) Non-authorized Insurer |
A) Alien Insurer |
|
|
|
The field underwriter is the ____& is not a determiner of insurability. a) Paramedical Examiner B) Doctor C) Actuary D) Producer |
D) Producer |
|
|
|
All of the following are producer responsibilities to the applicant except; A) seeking & gaining knowledge of applicants insurance needs B) reviewing & evaluating applicants current coverage limits & risks C) forwarding premium onto the insurer on a timely basis D) offering & selling only the lowest premium policy |
D) offering & selling only the lowest premium policy |
|
|
|
If an applicant or insured discovers errors in their credit report, the fair credit reporting act requires the reporting agency to: A) send letter of apology B) make certain the insurer corrects any inaccuracies found in report C) provide inaccurate info given out w/in previous 2 years D) automatically reinvestigate |
C) provide inaccurate info given out w/in previous 2 years |
|
|
|
The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is known as a______agreement A) facultative B) reciprocal C) residual D) treaty |
D) treaty |
|
|
|
The reinsurance agreement that allows the reinsurer an opportunity to reject coverage for individual risks or price them higher due to their higher risk is known as a(a) ______agreement A) facultative B) reciprocal C) residual D) treaty |
A) facultative |
|
|
|
When two parties rely upon the statements and promises of the other and assume no attempt to conceal or deceive means that the contract was entered into upon the basis of A) equal consideration B) utmost good faith C) sound business practices D) reasonable expectations |
B) utmost good faith |
|
|
|
When the owner of the policy and ensure must meet certain conditions in order for the health insurance policy to be enforceable it is referred to as an A) unilateral contract B) contracted of adhesion C) conditional contract D) Aleatory contract |
C) conditional contract |
|
|
|
The reinsurance agreement that allows the reinsurer an opportunity to reject coverage for individual risks or price them higher due to their higher risk is known as a(a) ______agreement A) facultative B) reciprocal C) residual D) treaty |
A) facultative |
|
|
|
When two parties rely upon the statements and promises of the other and assume no attempt to conceal or deceive means that the contract was entered into upon the basis of A) equal consideration B) utmost good faith C) sound business practices D) reasonable expectations |
B) utmost good faith |
|
|
|
When the owner of the policy and ensure must meet certain conditions in order for the health insurance policy to be enforceable it is referred to as an A) unilateral contract B) contracted of adhesion C) conditional contract D) Aleatory contract |
C) conditional contract |
|
|
|
To address adverse election what can an insurer legally do A) not over not offer policies to those over age 55 B) established and enforce underwriting practices C) limited amount of coverage issued D) raise the premium higher than most people can afford to pay |
B) established and enforce underwriting practices |
|
|
|
A peril is A) chance of a gain or loss to occur B) the reduction of value C) the cause or source of loss D) the condition which increases the probability of a loss |
C) the cause or source of loss |
|
|
|
Insurable interest for life insurance is necessarily only at the time of A) application B) policy renewal C) death or D) policy delivery |
A) application |
|
|
|
_______ consist of groups of underwriters called syndicates, each of which specializes in insuring a particular type of risk A) reciprocal insurers B) Lloyds of London C) self-insurers D) risk retention insurers |
B) Lloyds of London |
|
|
|
An insurer issues a policy other than applied for requiring an additional premium of $100 when would an agreement come into being A) when the producer calls the applicant over the phone and the applicant verbally agrees to the terms B) when the applicant accepts delivery of the policy and pays the additional premium C) when the insurer places the policy into the mail to the producer for delivery to the applicant D) when the producer receive the policy from the home office |
B) when the applicant accepts delivery of the policy and pays the additional premium |
|
|
|
Which of the following describes fiduciary responsibilities? A) anyone acting as an insurer shall be held responsible in a trust or fiduciary capacity for any money collected or received for the insurer B) fiduciary responsibilities are those responsibilities of a producer or agent to comply with insurance laws and regulations C) fiduciary responsibilities are those responsibilities of a producer or agent to always act in the best interest of the client D) fiduciary responsibilities are those responsibilities of an insurer to see that claims are promptly paid |
A) anyone acting as an insurer shall be held responsible in a trust or fiduciary capacity for any money collected or received for the insurer |
|
|
|
A producer submit a completed application to the insurer along with the premium check after giving the applicant a conditional receipt . If The applicant completes the required medical exam but dies prior to The insurer declining the application based upon the results of the medical exam what is the insurers responsibility? |
A) pay a death claim less the premiums paid and costs for the medical exam B) pay the claim in full since the death occurred prior to denial of the application C) refund the premiums paid in excess of any medical exam cost incurred by the insurer D) refund any and all premiums paid with the application |
D) refund any and all premiums paid with the application |
|
|
In order for life insurance policy to be valid insurable interest must exist at time of ________ |
A) application B) issuance change to expiration C)claim D) conversion |
A) application |
|
|
________Insurance policies do not pay dividends to policy owners |
A) participating B) nonparticipating C) reciprocal D) risk retention |
B) nonparticipating |
|
|
A Producer submits a completed application to the insurer along with the premium check after giving the applicant a conditional receipt. if the applicant completes the required medical exam but dies prior to the insurer issuing a policy as applied for --what is the insurer's responsibility? |
A) To keep the premium and reject the claim B) to refund premiums paid less costs associated with any medical exam C) to pay the claim in full since the conditions of the receipt were fully satisfied D) to refund any and all premiums paid |
C) to pay the claim in full since the conditions of the receipt were fully satisfied |
|
|
😈 |
😇 |
|
|
|
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one? |
Insured original issue age is used |
|
|
|
Under normal conditions which of the following is true for proof of loss when a single loss is claimed |
The insured has 90 days from the date of loss to provide proof of loss |
|
|
|
What is the waiver of premium provision |
Hey long-term care contract the premium is waived after the insured has been confined for specific period of time |
|
|
|
What is the return of premium rider |
And increasing amount of term insurance that always equals The total of premiums paid up to the current point |
|
|
|
According to the time of payment of claims provision the insurer must make the payment immediately after receiving proof of loss except |
For claims involving periodic payments |
|
|
|
What does it mean if a health policy is conditionally renewable |
Ensure may elect not to renew only under conditions specified in the policy |
|
|
|
Which of the following is true regarding assignment rights for irrevocable beneficiaries |
They're more likely to receive a loan based on the expectations of the proceeds |
|
|
|
All of the following are common exclusions from loss found in disability income policies except for that incurred while |
Committing a misdemeanor |
|
|
|
Which policy provision permits the policy owner to take a specified number of days to examine the contract and allows for cancellation and a full refund if the policy owner rejects the terms or costs? |
Free look |
|
|
|
Which of the following refers to how often a premium is paid |
Mode |
|
|
|
Annual premium payment |
An example of a premium payment mode |
|
|
|
How does a non-cancelable policy differ from a guaranteed renewable policy |
With the non-cancelable policy the insurer may increased premiums only based on the terms of the policy |
|
|
|
How might someone cover the extra expenses of child care and home related cost |
By purchasing family term insurance |
|
|
|
What does first dollar coverage mean |
As soon as covered medical expenses are incurred the policy begins to pay |
|
|
|
How are term riders used |
To purchase insurance on a family member of the originally insured |
|
|
|
On the following are features of the spendthrift clause except |
The beneficiary main encumber the proceeds |
|
|
|
What is an impairment rider |
It lists specific conditions in the contract that are excluded from the contract |
|
|
|
Non-forfeiture options |
Do not have cash dividend options |
|
|
|
During which period of a disability income policy is coverage effective but during which no benefits will be paid under the policy |
Probationary period |
|
|
|
Attaining consumer information report under false pretense is is prosecutable by which of the following |
Fair credit reporting act |
|
|
|
NCOIL ACT |
We specifically designed to address STOLI and IOLI practices |
|
|
|
What is the purpose of a stranger – originated life insurance (Stoli) |
The policy is originated primarily are solely for the purpose of resale |
|
|
|
The underwriting process begins |
Immediately after the application is submitted and the initial premium is paid |
|
|
|
Impairment rider |
It allows the reinstatement of a policy when an impairment is deemed to have caused the policy lapse |
|
