If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the
... [Show More] company will most likely - ANSWER-pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age
The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the: - ANSWER-Waiver of Premium
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: - ANSWER-P only
Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy? - ANSWER-*Premiums are waived after the insured has been totally disabled for a specified time period
(The Waiver of Premium provision waives the payment of premiums after the insured has been totally disabled for a specified period of time.)
All of the following provisions must be included in life insurance policies EXCEPT - ANSWER-All of the following provisions must be included in life insurance policies EXCEPT
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - ANSWER-olicy was returned within the free-look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? - ANSWER-Any legal resident except those incarcerated
A major medical policy typically: - ANSWER-provides benefits for reasonable and necessary medical expenses, subject to policy limits
Which of the following BEST describes a short-term medical expense policy? - ANSWER-Nonrenewable
A Whole Life Insurance Policy endows when the - ANSWER-Cash value equals the death benefit
The insuring clause - ANSWER-States the scope and limits of the coverage
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - ANSWER-15
A Family Income Policy is a combination of Whole Life and - ANSWER-Decreasing term insurance
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? - ANSWER-$0
Which of these statements describe a Modified Endowment Contract (MEC)? - ANSWER-Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - ANSWER-conversion
An insurance company may be judged guilty of false advertising if it - ANSWER-exaggerates its dividends in a newspaper advertisement
A policy of adhesion can only be modified by whom? - ANSWER-the insurance company
Variable Whole Life Insurance can be described as: - ANSWER-both an insurance and securities product
Which type of contract liquidates an estate through recurrent payments? - ANSWER-annuity
Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is: - ANSWER-business overhead expense
What is the elimination period of an individual disability policy? - ANSWER-time period a disabled person must wait before benefits are paid
In Texas, a domestic insurance company is defined as a company that - ANSWER-is incorporated and formed in Texas
Under a Renewable Term policy, - ANSWER-the renewal premium is calculated on the basis of the insured's attained age.
Group life policies MUST include all of the following provisions EXCEPT - ANSWER-right to loan proceeds
The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many days? - ANSWER-90
All of the following statements about health coverage for newborns are correct EXCEPT - ANSWER-coverage during the first year is limited to congenital defects
An insured must notify an insurer of a medical claim within how many days after an accident? - ANSWER-20
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? - ANSWER-collect initial premium along with a signed health statement
Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? - ANSWER-risk classification
What is the purpose of a Policy Summary? - ANSWER-Highlights the critical parts of the policy issued
Under the Texas code, the MAXIMUM for which a spouse may be insured in a company group life program with a $50,000 death benefit is: - ANSWER-$25,000
Which of the following types of health coverage frequently uses a deductible? - ANSWER-major medical policy
Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible? - ANSWER-carryover provision
A policyowner's rights are limited under which beneficiary designation? - ANSWER-irrevocable
Quarterly premium payments increase the annual cost of insurance because - ANSWER-Interest to the insurer is decreased while the administrative costs are increased
An agent whose license has been revoked is required to - ANSWER-wait at least five years before applying for a new license
The individual who provides general medical care for a patient as well as the referral for specialized care is known as a: - ANSWER-primary care physician
The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n): - ANSWER-insuring agreement
A Business Disability Buyout plan policy is designed - ANSWER-To pay benefits to the corporation or other shareholders
Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - ANSWER-inspection report
A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of - ANSWER-coercion
Group life insurance policies are generally written as: - ANSWER-annually renewable term
An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons? - ANSWER-failure to pay for coverage
Which of the following does Social Security NOT provide benefits for? - ANSWER-dismemberment
Which of these types of coverage is best described as a short term medical policy? - ANSWER-interim coverage
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - ANSWER-Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? - ANSWER-Evidence of insurability is required when the option is exercised
The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the: - ANSWER-insuring clause
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - ANSWER-Full face amount minus any past due premiums
The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the: - ANSWER-initial deductible
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid? - ANSWER-31 days
Which of the following BEST describes a Hospital Indemnity policy? - ANSWER-coverage that pays a stated amount per day of a covered hospitalization
Which of these is NOT relevant when determining the amount of personal life insurance needed? - ANSWER-local unemployment rate
Under which of the following circumstances will the benefits under COBRA continuation coverage end? - ANSWER-all group health plans are terminated by the employer
What is the consideration given by an insurer in the Consideration clause of a life policy? - ANSWER-promise to pay a death benefit to a named beneficiary
Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies? - ANSWER-long term care
Which of the following services is NOT covered under a hospitalization expense policy? - ANSWER-surgeons fees
Which of these life insurance riders allows the applicant to have excess coverage? - ANSWER-term rider
A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? - ANSWER-disability income
The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs? - ANSWER-social security disability income
What benefit does the Payor clause on a Juvenile Life policy provide? - ANSWER-premiums are waived if the payor becomes diabled
Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on: - ANSWER-march 1
A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - ANSWER-12
A Limited-Pay Life policy has: - ANSWER-premium payments limited to a specific number of years.
Group/voluntary long-term care policy premiums are typically deducted from the employee's income and, - ANSWER-are less costly as compared to individual long term care coverage
Which premium schedule results in the lowest cost to the policyowner? - ANSWER-Annual
Additional coverage can be added to a Whole Life policy by adding a(n): - ANSWER-decreasing term rider
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? - ANSWER-the employee
L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a Family Policy that covers L's spouse to age 65. A death benefit will NOT be paid in which of the following circumstances? - ANSWER-L's spouse dies at 66
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n): - ANSWER-exclusion for the medial condition
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? - ANSWER-claim will be denied
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? - ANSWER-convertible term
Which of these do NOT constitute policy delivery? - ANSWER-policy issued with a rating
Taking receipt of premiums and holding them for the insurance company is an example of: - ANSWER-fiduciary responsibility
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured? - ANSWER-PPO
When does a Probationary Period provision become effective in a health insurance contract? - ANSWER-at the policies inception
An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days? - ANSWER-31
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? - ANSWER-$50,000
Why is an applicant's signature required on a life insurance application? - ANSWER-to attest that the statements on the application are accurate to the best of the applicants knowledge
Which of the following types of care is typically not covered in a Long-Term Care policy? - ANSWER-acupuncture
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? - ANSWER-aviation exclusion
With Optionally Renewable Health policies, the insurer may: - ANSWER-review the policy annually and determine whether or not to renew it
After the initial enrollment period, an HMO must hold an open enrollment period of how many days at LEAST once in every 12-month period? - ANSWER-31
To be eligible for Social Security disability benefits, an employee must be unable to perform: - ANSWER-any occupation
Insurance company agent appointments remain in force for which of the following maximum periods of time, if any? - ANSWER-until terminated or withdrawn
In a qualified retirement plan, the yearly contributions to an employee's account: - ANSWER-as restricted to maximum levels set by the IRS
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age as stated on the application five years ago was found to be understated by ten years. Which of the following actions will the insurance company take? - ANSWER-the insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business? - ANSWER-business owner becoming disabled
Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - ANSWER-entire contract
A certificate of authority does which of the following? - ANSWER-permits an insurance company to transact business in Texas [Show Less]