Insurance Exam Stimulator

Replacement can be BEST described as

a. exchanging a new policy for one already in force
b. converting term insurance to be a permanent policy
c. an illegal transaction performed by a producer
d. an existing policy being renewed by the applicant on the renewal date

An insurer may exclude coverage for a pre-existing condition on a Medicare Supplement policy for up to         months.

a. 6
b. 12
c. 18
d. 24

A lapsed long-term care policy may be reinstated within         months if the covered individual was mentally incapacitated.

a. two
b. three
c. four
d. five

The following is information that should be taken into consideration when making suitable recommendations concerning the purchase of insurance, EXCEPT:

a. financial time horizon
b. annual income
c. tax status
d. education

What is the best way to define life insurance replacement?

a. a transaction in which coverage on an existing policy is increased
b. a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
c. a transaction in which group life coverage is converted to an individual policy
d. a transaction in which a policyowner reinstates a lapsed policy

All individual long-term care policies delivered in Oklahoma MUST be renewable

a. every five years
b. to age 70
c. on a conditional basis
d. for life

A business may purchase an annuity for all of the following reasons EXCEPT

a. structuring a liability settlement payment
b. informally funding a non-qualified deferred compensation plan
c. accumulating assets on a tax-deferred basis
d. providing a pension to employees

Which of the following is NOT a dividend option for a life insurance policy?

a. elect to take the dividends in cash
b. allow the dividends to accumulate with interest
c. use the dividends to pay all or part of the next premium due
d. receiving the entire policy cash value

Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

a. a cash value loan is taken out
b. automatic premium loan provision is utilized
c. the policy is surrendered for less than what was paid into it
d. dividend is issued

A life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death?

a. total premiums paid plus the policy face amount
b. face amount plus interest accrued
c. interest accrued plus total premiums paid
d. face amount minus any outstanding loan balances

The policy provision that permits an employee to change from group life coverage to an individual life policy is called the 

a. assignment provision
b. conversion provision
c. certificate provision
d. modification provisions

What kind of life policy typically offers mortgage protection?

a. whole life
b. decreasing term
c. increasing term
d. level term

A life insurance policy's waiver of premium rider has the ability to

a. waive the premium payments in the event the insured becomes financially insolvent
b. relieve the insured of premium payments following an initial waiting period after the insured becomes totally disabled
c. provide a policy loan to cover the premium payments in the event the insured becomes totally disabled
d. waive the premiums on this policy as well as any other insurance policies belonging to the insured in the event of total disability

Which of the following is true regarding a person receiving a waiver of premium benefit?

a. the insured must expect a total recovery within 2 years
b. the insured will not qualify for short-term disability
c. the insured will not qualify for workers compensation
d. the insured must be disabled for a period of time

Which of the following is generally a form of group credit life insurance?

a. decreasing term insurance
b. increasing term insurance
c. level term insurance
d. whole life insurance

The Change of Occupation provision in a Disability Income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply?

a. benefits will remain the same in the event of a covered claim
b. premiums cannot be adjusted
c. benefits can be increased in the event of a covered claim
d. benefits can be reduced in the event of a covered claim

What type of premiums are associated with individual mortgage protection life insurance policies?

a. level premiums
b. flexible premiums
c. modified premiums
d. decreasing premiums

An insured must notify an insurer of a medical claim within how many days after an accident?

a. 10
b. 20
c. 30
d. 40

What action can an insurer take to discourage malingering and false disability claims?

a. the insurer can selectively refuse a disability claim for specific diseases
b. the probation period can be increased for specific injuries
c. limit the amount of benefits an insured can receive from two disability policies with the same insurer
d. a premium rating can be given to an insured with more than one policy with the same insurer

An insured, age 67, is covered under a disability income policy. What will the insurer normally require in order for the insured to continue coverage?

a. the insured must submit to a physical examination on an annual basis
b. the insured must be actively at work for a specified number of hour per week
c. the insured must remain in the same occupation
d. the insured must continue working for the same employer

Which of these is a typical result of a concurrent review?

a. the deductible amount is increased
b. the length of time spent in the hospital is monitored
c. the insured's premium usually increase
d. the coinsurance is waived

A Fraternal Benefit Society has each of the following characteristics EXCEPT

a. incorporated
b. without capital stock
c. exists for profit
d. exists for the benefit of its members

When an existing life insurance policy is being replaced with a new one, a replacement notice MUST be given

a. at the time of taking an application
b. no later than policy delivery
c. at the time of policy delivery
d. during the free-look period

An insurer may NOT refuse the renewal of a small employer health insurance plan because of

a. noncompliance with plan provisions
b. fraud
c. overuse of medical services
d. nonpayment of premiums

The automatic premium loan provision can be accurately described as a 

a. provision that charges a premium for the right to borrow against the cash value
b. provision that provides a loan for necessary expenditures such as hospital bills, mortgage payments etc
c. provision that automatically waives an unpaid premium at the end of the grace period
d. provision that provides a policy loan to pay any premiums by the end of the grace period