How do you calculate the commission for replacing a long term care policy?
This can be calculated based on the difference between the annual premium of the replacement policy and the original policy.
When recieving information generated from a cold lead device who should disclose this fact to the consumer?
An agent, broker, or other person who contacts the consumer
Who submits the claim under part A of medicare?
What will adult day care coverage in a Long Term Care policy cover?
Part time care in a facility for a person who lives at home.
A group contract is between the ..... and the .....
the insurer and the employer
What is a Keogh plan?
A retirement plan for those who are self employed.
What is an "Illustration"?
a presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years.
In a life insurance policy, illustration (nonguaranteed elements) means....
premiums, benefits, values, credits or charges under a life policy that are not guaranteed or determined at issue.
What does a stock redemption buy/sell agreement facilitate?
It facilitates the purchase of a deceased shareholder's shares from the shareholder's heirs by a corporation.
(Buying a dead persons shares from the beneficiaries)
Would a widower or widow w/out children be eligible for Social Security survivors benefits at age 60?
If a senior buys an annuity which is invested in a mutual fund and they cancel during the free look period - the CIC requires they be refunded the.....
value of the account.
What is a medicare summary notice (a.k.a. Explanation of Medicare Benefits)?
It is a quarterly summary that details services provided under part A and B, if they were covered, and how much they were covered for.
(It is NOT a bill) Money due will be billed directly by the provider who performed the services.
What should every qualified Long Term Care policy sold in CA have on the first page of the policy?
"This contract for long-term care is intended to be a federally qualified long-term care insurance contract and may qualify for federal and state tax benefits."
The free look notice for seniors must be printed in....
10 point uppercase type, on the cover page of the policy or certificate and the outline of coverage.
Can a collateral assignment be utilized to obtain a loan?
What happens if a policy loan is outstanding when an insured dies and the beneficiary picks a fixed period settlement option?
The outstanding loan will effect the amount of the payments recieved, NOT they length they are recieved for.
What is an equity indexed annuity?
an annuity with a fixed minimum interest rate, and the chance to get a higher rate of return like that of the stock market.
What is the IRS withdrawal penalty for a Modified Endowment Contract?
Where does the agents commission come from?
the insurer expenses portion of the premium charged.
What were life insurance policy illustrations NOT created for?
They were NOT created to eliminate disclosure.
What is CIC definition of Insurance?
As a CONTRACT whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event.
When will an outline of coverage be delivered to a perspective applicant for long-term care?
At the time of initial solicitation
A joint life policy covers...
multiple lives and pays out when the first insured dies.
Policy benefits paid from a non-contributory group disability income policy are...
included in an employees gross income (benefits paid are taxable)
What is an exclusion allowence?
the formula used to determine the amount of annuity distribution that is taxable.
The insured can change the beneficiary any time if...
they are revocable.
What is coordination of benefits?
A provision which prevents a family from collecting a loss twice in a group plan.
A representation may be ....or......before the insurance is effected, but not afterwards.
altered or withdrawn
With regard to long-term care insurance, all insurers, brokers, agents, and others engaged in the business of insurance owe a policy holder or a prospective policy holder a duty of....and a duty of.......
honesty, and a duty of good faith and fair dealing.
If the premium for a group disability income policy is fully paid by employee benefits then...
it is exluded from the employee's gross income. (not taxable)
In life insurance, insurable interest must exist when ....
a policy is first issued.
In life insurance, what is the measure of insurability?
the sum or sums payable as provided in the policy to the person entitled thereto.
The Insurance Comissioner shall be elected by the people in the same ..., ...., and .....as the Governer
time, place, and manner.
The Social Security Blackout period is ...
a period of time when surviving family members are NOT eligible for Social Security survivors benefits (survivers benefits stop during this period)
The Social Security Blackout period ends when...
the surviving spouse reaches age 60.
Social Secuirty full retirement age is based on...
the year in which you were born.
What is an Employee Stock Ownership Program (ESOP)?
a qualified, defined contribution, employee benefit plan designed to invest primarily in the stock of the sponsoring employer
What is a profit sharing plan?
a plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company's earnings.
What is a speculative risk?
a risk situation that includes a chance of loss and a potential for gain. Speculative risks are not insurable.
What is the premium?
The amount the insured pays the insurer for the coverage provided.
What does the law of large numbers state?
The more similar the risks the company combines together, the better they can guess approximately how many losses they will have in a given time period.
What is the Doctrine of Good faith?
it allows each party to rely on the representations made by the other party.
What is the life insurance free look day minimum?
10 days, unless the policyholder is age 60 or older who must recieve a 30 day minimum free look.
In order to transact insurance (sell insurance) agents must hold...
at least one insurer appointment.
What is a Tax Sheltered Annuity (TSA or 403-b)?
A qualified plan created for public school employees and non-profits.
Both IRA's have...
Are annuity death benefits tax deductible or tax free?
Life insurance death benefits are tax free, however annuities are..
not life insurance.
The beneficiary of an annuity death benefit would have to ....
pay ordinary income tax on any amount they recieve over and above the cost basis (amount invested) of the annuity owner.
Divorce is a qualifying event under COBRA which will...
allow the employee to apply to continue their coverage under the group plan.
What does a Consolidated Omnibus Reconciliation Act (COBRA) require?
requires employers with 20 or more employees offer health insurance continuation to employees and employee depedents who become ineligible for coverage due to a qualifying event. If The employee elects continuation they are responsible for paying the full premium coverage and can only continue their coverage under the group plan for a limited period of time.
What is an example of respite care?
If a daughter needs a break from caring for her father, her father may have coverage in his Long Term Care policy that would pay for a caregiver to come in to give her a break.
What is an example of hospice care?
An individual who needs terminal ill care would find this coverage provided in their Long Term Care policy.
Long Term Care policies are underwritten on the applicants ability to..
care for themselves (Activities of daily living) such as eating, bathing and transferring (moving around)
What are the three types of ordinary life insurance?
W-E-T - Whole Life, Endowment, and Term
The insurance applicant is...
the individual who is applying to purchase insurance.
Is each authorized insurer required to establish a division within the insurer to investigate fraudulent claims?
Claim forms are required to include the following statement related to fraudulent claims...
"Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guillty of a crime and may be subject to fines and confinement in state prison."
The waiting period included in disability income policies is also known as...
the elimination period.
The period of time (30 days, 60 days, 90 days or 180 days) the insured is not eligible for benefits once they become disabled is known as...
the waiting period.
An individual that has contributed to 6 of the last 13 quarters who becomes disabled is...
currently insured under the system.
An example of implied authority is when...
Bob who works for Alpha insurance company does things necessary to transact insurance that are not specified in his contract.
The 10 year period certain annuity payout option gurantees..
if the annuitant dies within the first 120 payments, the remaining payments will be made to the beneficiary. However, th eannuitant will be paid as long as they live. Which could be substantially longer than 10 years.
If you no longer hold any insurer appointments...
your license is considered to be inactive.
If an employer holds your license and wants to cancel it they are required to...
send written notice to the commissioner.
The Employees Retirement Income Sercurity Act (ERISA) states that the fiduciary pension plans were created for the benefit of...
plan participants and beneficiaries.
What is vesting?
ownership of employer contributions.
If a retirement plan includes a 7 year vesting schedule each employee must be vested...
100% by the end of the 7th year.
A foreign insurer is ...
Someone who is selling insurance from a different state.
What is a solvent insurer?
an insurance company that has enough reserves to pay for all its liabilities.
The state insurance guarantee fund provides protection to policyholders whose ...
insurer becomes insolvent (financially impaired). This fund only covers member insureres (licensed insurance companies)
If an applicant has had a professional license revoked in the past 5 years...
the insurance commissioner can deny their licensing application without a prior hearing.
What is a ceding insurer?
the insurance company that purchases reinsurance is the primary insurer
The waiver of premium rider will waive the insured's premium if the insured becomes ...
A disability income rider that is added to a life insurance policy will pay a replacement of the insured's lost income if ...
they become disabled.
What is double indemnity?
The Accidental Death Benefit rider that will pay double the face amount if the insured dies in an accident.
What is a contingent beneficiary?
someone an insured picks in case the primary beneficiary dies prior to the insured.
What is a Extended Term?
a non-forfeiture option that provides a new term life insurance policy with the same face amount of coverage as the original policy. It is NOT a settlement option.
A settlement option can be pre-determined by the owner of the policy prior to their death, but is usually selected by the ....upon the insureds death.
Policies isued by mutual insurers pay dividends to.....
policyholders. The dividend option is selected by the policyholder onthe insurance application.
A non-participating policy owner will not receive ...
dividends. Non participating policies are issued by stock insurers. Stock insurers pay dividends to stockholders, not policyholders.
Divdends are declared by the ...........and cannot be .......
board of directors; guaranteed.
The conversion feature allows an employee to go from...
group coverage to an individual policy.
A family policy provides...
life insurance for an entire family and allows the children to convert from term to whole life coverage without a physical exam.
A hospital confinement policy will...
pay a set amount per day if the insured is confined in the hospital.
A corridor deductible applies in a major medical policy between the ...
basic and excess coverage.
Major medical policies include...
a deductible, coinsurance, and a stop loss. First dollar coverage is NOT a feature of Major medical.
A capitation fee is...
a per head (capitation) fee that is paid to doctors that treat subscribers of HMO's. A capitation fee is NOT a feature of Major Medical.
What is a stoploss?
the maximum the insured would have to pay of the coinsurance.
What is coinsurance?
a feature of major medical insurance and is defined as a sharing of the loss after the deductible has been satisfied. Coinsurance is usually expressed as a percentatge sharing of the loss between the insurer and the insured, with the insurer paying the larger percentage, such as 90/10
What are co-payments?
they are included in HMO and PPO plans and are fixed amount the subscriber must pay when they go to the doctor.
If an emplyee wants to enroll without any restrictions then they would enroll during the...
eligibility period (open enrollment period)
A gatekeeper (Primary Care Physician) cannot be a ......, they must be a .....
specialist; general practice doctor.
What is a non-contributory group plan?
A group contract where the employer pays 100% of the premium.
What is a Multiple Employer Trust?
a trust that small employers join to purchase health insurance.
When an individual increases their insurance policy limits they are NOT eliminating their risk, the are....
transferring more of their risk.
Who has the hardest definition of total disability to meet?
Medicare part C does....cover presecription drugs. Medicare Part D....cover presecription drugs.
Medicare part A provides....
coverage for hospital services and is free to those eligible once they reach age 65.
Medicare part B is .....and if an eligible individual enrolls they must pay a monthly premium for the coverage. Part B of medicare ......for doctors services.
optional; provides coverage
Medicare supplement companies can offer...
whatever plans they wish as long as they offer at least Plan A. They are not required to offer all 12 plans. (A-L)
What is a specified disease policy?
is a policy that covers only certain dread diseases such as cancer insurance.
A preferred risk receive the ....premium charges as they pose the ...risk to the insurer.
What is the main difference between a binder and a conditional reciept?
An insurance binder always creates immediate coverage.
The incontestability clause states...
that after a life insruacne policy has been in effect for 2 years it becomes totally incontestable. This is very restrictive for the insurer and prevents them from contesting a claim for any reason after 2 years.
What is replacement?
When you replace your customer's current policy witha new one and is NOT illegal. However, you would NOT replace your customer's policy if the new policy is worse and the premium is higher. This would be considered twisting and is illegal.
What is a captive insurer?
an insurer created by a corporation to insure its own risks.
If a company decides to self insure this decision ........have any impact on claims severity.
Workers compensation laws require that the employer to be responsible for employee injury on the job.....
regardless of fault.
The entire contract clause states...
the application is part of the contract if attached when issued.
Under Social Security, in order to receive total disability benefits the disability must be expected to last....
at least 12 months or end in death.
Under coordination of benefits, the coverage you have where you work is considered to be....
HMO's stress ...
Some health insurance policies include deductibles. Deductibles are paid by the .....
insured. The higher the deductible the lower the premium.
A guaranteed renewable health insurance policy would have the ....premium.
Guranteed renewable health insurance policies cannot be changed except by.....
If an insured wants to sell their life insurance policy to an investor (viaticle/life settlement) they can do so by requesting an ......
In CA a Fire and Casualty insurance agent must complete....hours of continuing education each year for the first 4 years of licensing. After 1st 4 years of licensing each agent must complete ....hours of continuing education every....years.
25 hours; 2
Agents who sell Long Term Car are required to do ....hours of Long Term Care specific continuing education within the core requirement.
Agents who sell Long Term Care are ........required to take an exam on the topic every 10 years.
A insurance company based in Canada and doing business in California is a ......insurer.
What is concealment?
when a party fails to communicate that which a party knows, and ought to communicate, so that the other party may make a sound decision.
Employees covered under a group policy receive ......as their proof of coverage.
certificates of insurance.
Purchasing life insurance to fund a buy/sell agreement is a ....use of life insurance NOT a .....use.
What is a contributory group policy?
The premium is shared between the employer and employee. Both contribute toward the premium.
The disability income coverage under Social Security was created to provide a minimum floor of income in case of ......It was NOT created to provide full replacement of lost income.
Most workers contribute to Social Security through....levied on their earnings. Benefits are based on ...., but are NOT equal to.....
What is the purpose of the underwriting division of an insurance company?
to select which risks the insurer will take on.
Decreasing term life insurance (a.k.a. mortgage redemption insurance) is often used to pay off an outstanding mortgage upon.....of the borrower.
If a payor benefit rider is added to a juvenile life policy it will......for the policy until the child reaches a certain age (often 21) if the parent dies.
waive the premium
Variable insurance products are regulated by the ...... and the ....... since they are considered to meet the definition of a securities product.
state department of insurance; Securities and Exchange Commission (SEC)
If a rider is added to a cash value life insurance policy the extra premium paid for the rider .......apply toward the cash value.
If an insured purchases a cost of living rider this rider will automatically .....their policy limits tied to the consumer price index. However, if the policy limit ......, so will the underlying premium.
What is a common disaster clause?
when both the insured and primary beneficiary die as a result of the same accident. It states that the primary beneficiary always dies first and protects the interest of the contingent beneficiary.
What is a reduced paid -up non-forfeiture option?
an option that provides a new whole life policy with a reduced face amount of protection.
A subscriber of an HMO could receive emergency medical attention .....prior authorization of their primary care physician (gatekeeper).
Health Maintenance Organizations (HMO) .......required to provide for prescription drugs.
What does a morbidity table contain?
statistical data relating to the probability of a sickness or disability occurring.
What does a mortality table contain?
statistical data relating to the probability of death.
What is a probationary period or pre-existing condition exclusions?
a period of time that excludes coverage for prior medical conditions that begins when a health insurance policy is brand new.
The underwriter's responsibility with disability insurance is to eliminate applications that seem likely to have.....much more frequently or much more .......than what the insurer's rates anticipate.
The location of the group.......be a factor in determining premiums charged for group disability income.
What is the any occupation definition in disability income?
the insured must be unable to perform any job they are suited to do by prior training, experience or education.
Intentional injuries ...covered by health insurance.
The return of premium rider that can be added to a disability income policy will provide a return of a percentage of premiums paid at periodic intervals, provided the insured remains.....
Under the California Insurance Code (CIC) life insurance agents ....issue binders.
If an organization terminates a key employee the organization will .......to hold a license as their organization will be unaffected.
will still be eligible
If the Insurance Commissioner issues a Notice of Seizure for documents and the agent fails to produce the documents they would be subject to.....
up to 1 year in jail and/or a $1,000 fine.
Agents who receive commission related premium financing must keep their records for....years
Financial loss exposure is .....one of the three major types of loss exposures.
What is hospice care?
care for the terminally ill and is covered by most Long Term Care policies. Hospice care would NOT cover costs associated with rehabilitation.
If an agent issues a binder for a company they are not appointed by the comissioner can ...... or ...... the agent's license.
Money invested in a variable annuity is held in the insurance companies ......
Upon death of a licensed agent, their license will..
Convalescence is .... a level of care for which benefits are paid on a LTC policy
Under the CIC if an applicant enters a plea of "nolo contendere" they will be .....Nolo contendere is Latin for....
convicted; no contest
What is the spendthrift clause?
it protects the policy proceeds from the creditors of the beneficiary. However, the spendthrift clause will not apply if the proceeds are paid out in a lump sum.
Mutual insurers are owned by...
When replacing a policy the agent is ....required to send a copy of the replacement notice to the .....insurer. The .....will provide notice to the existing insurer.
NOT; existing; new insurance company
the federal law that is designed to protect group plan participants, establish pension equality, and mandate strict reporting and disclosure requirements.
If an employee is injured while driving their own car while working their injuries ........covered by Workers Compensation.
A person who is transacting insurance without a license is guilty of a ....
In order to remain finacially solvent under the CIC, an insurer must have...
enough assets to provide for its liabilities and for reinsurance for all outstanding risks; and must also meet minimum requirements equal to their paid-in capital (value of company if liquidated)
HMOs and PPOs are referred to as.....since the doctors and hospitals get paid directly for those services provided.
A movie company that is concerned about the financial loss they would incur in case of the illness of one of their starring actors would purchase ....
A representation can be considered an...
If an agent is engaging in unfair methods of competition they are subject to penalties of no more than.....
$5000 for each act, not to exceed $10,000 if the act is judged to be willful.
An intentional concealment entitles the injured party the option to...
rescind the contract.
Neither party to a contract of insurance is bound to communicate, even upon inquirey, information of....upon the matters in question.
his own judgement
The Health Insurance Counseling and Advocacy Program (HICAP) ....
does NOT sell insurance, nor endorse any particluar carrier or product.HICAP provides free counseling to seniors on health insurance related issues.
Providing free insurance coverage in connection with the sale of services as an inducement for completing the transaction is....
When a premium is paid on a universal life policy the insurance company will....
subtract from it the mortality and general expenses then add the current interest and deposit it into the cash value.
The very poor do ....need Long Term Care as they .....
NOT; would be eligible for similar coverage provided under Medi-cal
The very rich .....need Long Term Care as if they needed the services they could....
would NOT; afford to pay for it themselves.
Life insurance agents must keep records regarding policies sold in this state for a minimum of....
The transplant donor benefit in a disability policy considers the insured to be....if donating a body organ.
The purpose of the rehabilitation provision in a disability income policy is to....
encourage a disabled insured to return to their original occupation.
In order to determine the amount of premium an insured will pay, the insurer...
multiplies the rate by the number of exposure units purchased.
Insurance agents are acting in ...... when they are handling their customer's premiums.
Growth accumulating in a qualified plan ........currently taxable to the employee. It is taxable upon.....
is NOT; withdrawal
Employee benefits plans ....self fund for life insurance benefits, only....benefits.
The insurance policy is...
the written instrument in which the insurance contract is set forth.
Life insurance agents .....required to keep records of printed material in general use which has been distributed by the insurer.
the interest settlement option will allow only.....
the death benefit earnings to be paid to the beneficiary.
What is a defined contribution plan?
a plan which employers make specific contributions to an employee's retirement account.
When an applicant reveals medical conditions that require more information the insuer will usually require ....
an attending physicians report.
An employee would be considered to be partially disabled when they ....
are working part-time and receiving lost income under their long-term disability benefit.
Under Section 770 of the CIC the insurance commissioner will usually issue a cease and desist order for a violation of more than one transaction if ...
the violation dealt with loans on the security of real or personal property.
What is demutualization?
the process whereby a mutual insurer becomes a stock company
What is a loss exposure?
any situation that presents the possibility of a loss
the beneficiay.....required to sign the application for insurance.
The rate is...
the cost per exposure unit.
To authorize the release of an attending physician's report, the applicant must...
sign a consent form.
Members of the Medical Information Bureau are required to....
report medical impairments found during the underwriting process.
The request for an attending physician's report must be accompanied by a ....
copy of the signed authorization.
Life insurace companies are members of...
the Medical Information Bureau
Agent records must be made available to the commissioner....
at any time.
If an insured is found guilty of turning in a fraudulent claim they can face....
imprisonment and/or a $150,000 fine or twice the dolar amount of the fraudulent claim, whichever is greater. For example, if an insured turned in a fraudulent claim totaling $85,000 they would be fined $170,000.
To meet the chronically ill trigger of a long term care policy, an individual must be...
unable to perform a minimum of 2 activities of daily living.
The rules regarding life insurance policy illustrations are NOT intended to ensure that the illustration specify that....
non-guaranteed elements will continue unchanged for all years shown.
If an insurer is inadvertently found guilty of unfair trade practices while issuing, renewing and servicing a policy, the insurer could be ....
prosecuted for 3 violations, one for each act.
Group life insurance does NOT exclude...
California requires a minimum of 2 employees be covered in a
group life contract.
Industrial life insurance is generally written with a death benefit of...
$2000 or less.
In a defined benefit plan benefits are linked to the employee's years of service and/or....
amount of compensation.
Life insurance illustrations showing premiums, values, credits, or charges that are not determined at issue demonstrate....
When an insurer presents an illustration for life insurance they....
CAN use the insurer's "diciplined current scale" in the illustration.
What is a stock?
An insurance company which is owned by individuals who purchase shares of stock in the company, share in profits in proportion to shared owned,and vote for a board of director's
Eligibility for Social Security retirement benefits is based upon ...
the number of quarters earned.
An insurance broker.....appointed by an insurer.
The California Life and Health Insurance Guarantee Association (CLHIGA) .........cover employee self-funded plans.
The California Life and Health Insurance Guarantee Association (CLHIGA).....cover stop-loss plans.
In a group life policy with a death benefit of more than $50,000, the premium cost for insurance above $50,000 is....
taxable as income to the insured.
When a corporation ceases to exist entirely, their insurance license....
If an insurer knowingly allows one of its agents to mislead a member of the public in order to induce the person to change their existing insurance, the Commissioner may .....
suspend the insurer's certificate of authority for the class of business involved.
Life insurance illustrations are NOT required to include a statement of the benefits in the illustration are....
guaranteed. Benefits may be guaranteed or not guaranteed.
If an insurer indicates that an illustration will be used, they must send a summary status report to the policy owner....
If a dependent child covered by a group life plan is incapable of self-support, coverage under the plan may...
continue without any age limitation.
In a group life plan, a dependent child attending an educational institution may be covered until age...
The IRS requires contributions made into a qualified plan on behalf of employees by employers vest as specified intervals. Under the 7 year graded besting plan an employee is required to be at least......of employment.
20% vested after 3 years.
What is vesting?
ownership of employer contributions - an employee is 100% vested in their contributions immediately when made.
Under the 7 year graded vesting schedule, the IRS requires employer contributions be vested at least...
40% after 4 years, 60% after 5 years, 80% after 6 years, and 100% after 7 years.
If an agent puts an ad on the internet it must include their license number, name and business address but NOT their....
What is an automatic premium loan?
a rider that can be added to a cash value life insurance policy in case the insured forgets to pay their premium. It takes effect at the end of the grace period.
The "free look" on life insurance and annuities is also known as...
the "right to return"
Dividends received by policyholders of a mutual insurer are not...
What does a binding reciept do?
it provides a limited amount of coverage right away.
There is no coverage under a conditional receipt until...
all conditions are satisfied.
Deferred compensation plans are...
A ROTH IRA has both non-deductible contributions and ....
What is a qualified plan (defined contribution)?
where the employer contributes a specified amount, like in a 401k
Annual renewable term life insurance has a level face amount, but ......
an increasing premium.
On a family policy of life insurance, the dependent coverage is convertible to whole life insurance without a.....based upon their attained age.
Whole life insurance is also known as...
continuous premium whole life insurance.
A family life insurance policy consists of whole life on....and level convertible term on the other........
one spouse; spouse and children.
What is a variable life?
a life insurance policy that allows the policy owner to "self-direct" cash values into different subaccounts
The guaranteed Insurability Rider allows the insured to adjust benefits upwards at....
specified future option dates.
The rate of return paid on the cash value of an Indexed Whole Life policy will keep up with the rate of...
Group life policies may exclude aviation, suicide, and military action, but not.....
death due to other accidents.
If a beneficiary wants to leave the life insurance proceeds with the insurer and receive investment income, they should select.....
the interest option.
All eligible employees must participate in a ....
non-contributory group life plan.
Life insurance policies do not contains a probationary period for ...
Fully insured status on social security requires ......quarters of coverage.
Both the agent and the applicant must sign the ...
Notice Regarding Replacement
Agents need not have the Commissioner's approval to use their .....
Group coverage is usually less expensive than...
Insurers are concerned about .....because they will lose money if a policy does not stay in force due to its high initial acquisition cost.
Cash surrender of an annuity prior to age........will result in ordinary income tax and a ....premature distribution penalty, both of which apply to the earnings portion.
59 1/2; 10%
If you need to multiply the value of an accumulation unit by the number of units owned in the separate account, you have a......
A "non-medical" application allows the insurer to write a life insurance policy without a ......
HICAP counselors are not allowed to receive...
What is the premium?
the amount exchanged for coverage.
Third party administrators often help employers administer their...
A .....is something that increases the risk.
The.....mode of payment costs more than the....mode of payment.
Life insurance premiums are refunded if death occurs due to....within 2 years.
A policy is considered to be "executed" when coverage is...
Most claims are settled by....
On disability income insurance, the "waiting period" is like a......, except it is stated in terms of time rather than in dollars.
Disability income policies do not offer a....benefit period.
With accidental mean clause on an accident and health policy, both the cause and the result must be ...... in order for coverage to apply.
An insurer may not change a "non-cancellable" health insurance policy .....
in any way.
Guranteed renewable health insurance policies must offer....and cannot be changed in any way, EXCEPT rates by "...." only.
Premiums paid for key person life insurance are not tax deductible, but benefits are not....
Contributions to social security are ....for most workers.
A terminated employee may not be eligible for group contuation under COBRA if they were terminated for....
A representation as to the future, unless it is merely a statement of an expectation or belief, is considered to be a....
The portion of the premium used by an employer to buy group life coverage for an employee in excess of $50,000 is....to the employee
A variable/universal life policy has no fixed, guaranteed ....
rate of return.
On a major medical expense policy, a ....feature limits out-of-pocket expenses.
Extended term is a life insurance.....provision, not a rider or a settlement option.
What is ERISA?
a federal law that protects qualified plan participants and their beneficiaries.
On a major medical expense policy, the co-insurance requirements are calculated after subtracting the....
A computer programmer will still be eligible for disability income benefits although he returned to work as a janitor if he has the ......definition of total disability in his policy.
Sole proprietors without any employees are not eligible for ....
group life coverage.
A non-contributory group disability income, premiums are tax deductible for employers, but taxable to....
On a disability income policy, the social security offset rider will pay the difference between what social security pays and the insured's....
actual loss of earned income.
The principle of indemnity is most closely associated with...
A "prohibited" person may not engage in the business of insurance without the written consent of the...
Under law, what is a prohibited person?
a person whose activities affect interstate commerce and who knowingly, with the intent to deceive, makes any false material statemetn or financial report to any insurance regulator for the purpose of influencing their actions.
Under federal law, upon conviction, a "prohibited" person may be imprisoned .....years and fined a mazimum of $50,000 per violation.
10 to 15
What is an insurance broker?
a person who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of an insurer.
Before making a sale, the first thing an agent should do is ....
identify the clients overall financial objectives.
The Family and Medical Leave Act provides certain employees with up to 12 weeks of unpaid, job protected leave per year for the .....
birth and care of a newborn child, the adoption of a child, to care for
an immediate family member (spouse, child, or parent) with a seies of
health condition; or to take medical leave when the employee is unable to work due to a seious health condition.
......... is not considered to be a disability under the Americans with Disabilities Act (ADA), although confinement to a wheelchair, deafness and HIV/AIDs are covered by the act.
Under Original Medicare, it is the .... of the health care that is required to submit claims to Medicare by law
provider (hospital or doctor)
Under the Women's Health and Cancer Rights Act, all health insurance plans in California which cover mastectomies MUST also cover .....