attachment_1 - 2023-12-25T044130.943

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Nov 24, 2024

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Please highlight correct answer like this Answer A policyholder should provide notification of a claim to an insurer within how many days of the loss? A. 5 days B. 10 days C. 20 days D. 45 days Which of the following statements is TRUE regarding a 1035 exchange? A. Because of the complexity, 1035 exchange are seldemly done B. An exchange for another policy or annuity generally avoids any taxes C. An exchange for lessor value policy or annuity generally avoids any taxes D. Whether or not life insurance premiums are deductible depending on the income of the policy holder Under the health insurance portability and accountability act, (HIPAA), the employee MUST verify credible coverage from previous employer so that the A. Employees benefits still owed can be claimed B. Employee cannot be excluded from the new employer health plan C. New health insurance carrier will have a clear record of anu chronic conditions that exist D. Employeeswaiting period for coverage of a preexisting condition can be reduced under the new employeeheathplan A life insurance producer may assist as a field underwriter for an insurer by A. Taking accurate information regarding an applicants personal data B. Provide the rate and premium information with the completed application C. Arranging for an applicants medical examination required for insurance purposes D. Reporting unusual characteristics of the applicant that might affect the underwriting decision Who may terminate a producers appointment A. The insurer B. The producer C. The policy owner D. The insured An individual who knowingly submits a false statement in support of a claim may be found guilty of A. Coercion B. Fraud C. Misrepresentation D. Twisting The grace period is a period of time A. Between the death of the insured individual and the payment of the benefits B. After the premium is paid and before the policy is issued

C. After the premium is received and before the policy is issued D. After the premium is due but while the policy remains in force If an insurer does NOT pay a covered individual health insurance claim within the time period, the insured may file a legal action against the insurer for up to how many years after proof of loss was required to be furnished? A. 1 year B. 2 year C. 5 year D. 7 year Health insurance polices that can be purchased to cover specific low frequency diseases are A. Group health plans B. Group specific policies C. Individual health policies D. Individual limit policies A producer who knowingly submits a false statement in support of a claim may be found guilty of A. Fraud B. Coercion C. Illegal inducement D. Misrepresentation Health insurance policies that induce the benefit amount for a specific commonlypreformed operations are A. Non scheduled benefit plans B. Limited medical policies C. Scheduled benefit plans D. Major medical policies What policies only cover certain types of benefits A. Limited benefits B. Blanket insurance C. Guarantee benefits D. Comprehensive benefits Which type of annuity contract includes an interest rate adjustment that can cause the surrender value tofluctuate in response to economic conditions if the owner surrenders the contract within a specific time period? A. Variable annuity B. Qualified annuity C. Tax-sheltered annuity D. Market-value adjusted annuity

An insurers intentional relinquishment of a known right A. An esstoppel B. A privilege C. A wavier D. A choice Long-term care polices cover expenses for care when the insured CANNOT performall of the following activities of daily living EXCEPT A. Shopping B. Toileting C. Transferring D. Dressing A physician submits claim information prior to treating a patient for a particular procedure in order to find out if the procedure is covered. This is referenced to as a A. Pre-certification B. Concurrent review C. Benefit checking D. Claim submission A specific coverage plan would provide coverage for which of the following A. Cancer B. Broken leg C. Pneumonia D. Vasectomy A point of service (POS) plan is an example of A. A preventive care provider B. A managed care plan C. A preferred provider organization D. An exclusive provideorganization What is a producers apparent authority A. Authority required to execute express authority B. Authority specifically granted to the producer C. Powers the public expert producers to have D. Powers inferred but not written Individual who continue to work after the age of 65 and keep the group health insurance A. Need supplementarycoverage B. Have Medicare as their primary payer C. Have Medicare as the second payer D. Are not eligible for Medicarecoverage

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Which of the following is a characteristic of a contract of adhesion A. Each party is entitled to rely on others representations B. The insurer agrees to pay a stated sum regardless of loss C. The term must be accepted or rejected in full D. The insurers obligations are dependent upon certain acts of the insured individual When advertising the identity of the insurer shall be A. Capitalized B. Generally secure C. Guaranteed D. Clearly identified How are the benefits treated for tax purposes if an individual is receiving disability benefits from a group policy paid for by the employer A. They are not taxable B. They can be deducted from gross income C. They are taxable income D. They are only subject to Social security taxes Which form of insurer has shareholders? A. Reciprocal company B. Mutual company C. Stock company D. Fraternal society An insured has a policy with a cash value of $1,500 a death benefit of $5,000 and an outstanding loan of $500. How much money will the insured receive under the cash surrender value option? A. $500 B. $1,000 C. $1,500 D. $4,500 A single contract for group insurance issued to an employer is known as A. A group policy B. A master policy C. An employer policy D. A certificate policy A producer who knowingly solicits new insurance risks by an insolvent insurer is guilty of A. Defamation B. Enticement C. Forgery D. Fraud

Who of the following is required to be licensed as an insurance producer? A. An underwriter at an insurer B. An officer or director of a licensed insurer C. An administrator of a group plan D. An individual selling a policy for commission Human life value approach measures which of the following? A. Total lifetime earnings B. Total lifetime benefits C. Total lifetime family needs D. Total lifetime dividends In addition to the actual policy, an entire contract includes which of the following? A. Clauses B. Credit reports C. Provisions D. The application Under the grace period, an insured submits a $300 claim for medical expenses, the insurer notes that the insured has a past due balance of $100, and as a result, the insurer only pays $200, which of the following uniform optional provisions covers situations A. Renewability B. Payment claims C. Unpaid premium D. Payment actions A general report used during the health insurance underwriting process that may provide information regarding the applicants morals, lifestyle and financial background, including a credit report, is referred to as the A. Medical information bureau report B. Consumer investigation report C. Attending physician statement D. Agents report How often must a report of the value of a universal policy be sent? A. Monthly B. Annually C. Quarterly D. Semi-annually Who has the right to nonforfeiture values in an annuity A. Beneficiary B. Policyowner

C. Insurer D. Employer When an individual schedules regular examinations, which of the following risk management techniques is being used? A. Risk sharing B. Risk transfer C. Risk reduction D. Risk avoidance An individual who acts on behalf of an insurer to solicit an insurance contract is known as a A. Broker B. Producer C. Counselor D. Principal A whole life policy is replaced with an annuity without incurring a tax penalty, this is referred to as A. A cross-purchase plan B. An endowment contract C. A transfer value D. A 1035 exchange All of the following occurrences may result in license revocation EXCEPT A. Producing an inadequate amount of new premiums B. Having been convicted of a felony C. Forging another’s name to an application for insurance D. failing to meet court ordered child support obligations which of the following is the form of risk entity chooses to set aside funds to be self-insuring A. retention B. avoidance C. control D. transfer Accident and health insurance protects the insured against financial loss caused by which of the following? A. Suicide B. Bodily injury C. Loss of a job D. Injury on the job Events or the conditions that increase the likelihood of an insureds loss are referred to as A. Perils B. Hazards

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C. Exposure D. Risks The consolidated omnibusreconciliation Act (COBRA) of 1985 allows employees to A. Make a mid-year change with qualifying events B. Change plan elections upon involuntary termination of employment C. Continue their group medical insurance by self-paying the premiums after employment has been terminated D. Elect to receive a cash stipend in lieu of medical coverage when theirpreferred medical provider is not covered by their group medical plan If a business pays premiums as a deductible expense for an employee disability income policy, what is the tax consequence to the employee? A. The benefits are taxable B. The benefits are not taxable C. The premium must be paid with after-tax dollars D. The premium cannot be deducted for a business expense If a business pays premiums as a deductible expense for an employee disability policy, what is the tax consequence to an employee A. The benefits are taxable B. The benefits are not taxable C. The premium must be paid with after tax dollars D. The premium cannot be deducted as a business expense An applicant purchases a life insurance policy to avoid the forced sale of assets upon his death, what is this action called? A. Buy-selling fund B. Capital retention C. Capital liquidation D. Estate conversation The insured has dental coverage through their employers group plan, the employer pays the entire premium, which statement is correct about the tax free treatment of the premiums and any benefits that the insured receives? A. Insured must report the premium as an ordinary income B. Insured must report any benefit as ordinary income C. Employer can deduct the premium as a business expense D. Employer can deduct any benefit paid as a business expense An insured has elected to receive $20,000 per month until the principal an interest on his wife’s life insurance policy has been paid out. The insured has elected which option? A. Interest only B. Fixed amount

C. Fixed period D. Life income Renewable term life insurance guarantees the policy can be renewed A. To a predetermined date or age, regardless of the insured health status B. To a predetermined date or age based on the insured providing evidence of insurability C. At the insured option at the same premium with no changes in death or benefits to age 100 D. An unlimited number of times, even if the insured lives beyond her life expectancy Jon, an insurance producer has a client walk into his office and ask about changing his health insurance plan. The client explains that he does NOT like his current plans high premium and would like to switch to another plan with lower cost. What should Jon explain to his client A. He cannot help him because that would be replacement and replacement is illegal B. He is a no/loss no gain state so it does not matter what plan he chooses C. Replacing a plan has risks and coverage gaps should be considered D. The insurer will penalize him for canceling the policy When a beneficiary inherits a traditional; IRA, which of the following is TRUE about the taxation when the money is withdrawn? The beneficiarypays A. No tax B. An estate tax C. Capital gainstax D. Income tax When a policy owner requests a partial surrender from her universal life policy she is requesting which of the following? A. Cash withdrawal B. A loan from the policy C. Surrender of the policy D. Decrease in the coverage amount Liquidity in a cash value life insurance policy is demonstratedby A. Allowing the revocablebeneficiary to decrease the coverage to receive a refund B. Permitting the policy ownerit request a loan against the cash value of the policy C. Converting the policy from the whole life term to receive the balance of cash value D. Allowing the policy beneficiary to receive prior to death by creating reassignment Why do comprehensive dental plans usually provide routine dental care services without deductibles or coinsurance? A. To simplify the claims process B. To encourage preventative dental C. Because the administrative costs exceed the total cost of the care D. Because these fees are incorporated by the dentists in other procedures

Which of the following statement is TRUE about the insurersrights to screen applicants for HIV A. An insurer can require a blood test for HIV B. An insurer can ask about sexual orientation C. An insurer can ask about risking sexual behavior D. An insurer can use the investigative consumer to determine sexual orientation Which of the following individuals is required to be licensed as an insurancecounselor in the state of Michigan? A. An insurer officer or director B. Sn individual selling insurance policies C. A person providing insurance advice to a person or business for a fee D. An employee working for an independent insurance performing noninsuranceduties The type of care that is continuously 24-hours provided by licensed medical professionals under the direct supervision of a physician is A. Custodial care B. Intermediate nursing C. Skilled nursing care D. Respite care Which of the following is a common exclusion from coverage found in accident and health policies A. Coordination of benefits B. Emergency room coverages C. Flu and pneumonia D. Self-inflicted injuries One of the purposes pf the formation of the medical information bureau (MIB) was to A. Reduce the potential of fraud B. Review the quality of health care service C. Create information resource for nonmedical personnel D. Provide accurate information to a consumer regarding medical procedures and practices What types of insurance is designed to fill the gap following guidelines regarding deductibles, copayment requirements, and benefit period A. Medicare part A and B B. Medicare part C C. Medicare part D D. Medicare supplement insurance What is the period of time referred to that MUST lapse before monthly disability income benefits begin A. Probationary period B. Elimination period C. Conversion period

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D. Holding period How does a graded premium whole life policy differ from a modified premium whole life policy? A. It increases the premium annually during the first several years of the policy B. It increases the premium annually for the duration of the policy m C. It increases the premium once during the duration of the policy D. It has a lower premium for the duration of the policy Disability polices MOST often pay benefits in the form of A. An annuity B. Periodic income C. A lump sum reimbursement for wage lost D. A lump sum payment based on projected income Two parties in a binding agreement within the eyes of the law are requires A. Instance which allows attorney to sign the contract for the principal party B. Understanding the contract can be changed at any time C. Instances which allow for minor to sign D. An understanding of the contract Dependent children can be covered under an individual group plan up to what age A. 18 B. 19 C. 25 D. 26 When underwriting an individual health insurance policy, the underwriter will NOT consider the applicants A. Material status B. Occupation C. Zip code D. Age Mrs. Smiths doctor told her that she had arthritis in both legs, Mrs. Smith then sees a physical therapist who tells her she needs to physical therapy and will need a wheel chair for a few months. What part of Medicare insurance will cover all of these services? A. Part A B. Part B C. Part A and B D. Part A,B,and C If a producer has completed 21 hours of continuingeducation, but no ethics credits, how many ethic credits Must be completed to keep the license active? A. 1

B. 3 C. 6 D. 12 Blood tests to detect the presence of Human Immunodeficiency Virus (HIV) are commonplace. Laws have been passed allowing insurance companies to A. Share positive HIV information with other entities B. Call the applicant if the HIV tests is positive C. Require HIV testing at the applicantsexpense D. Deny coverage to an individual with HIV In order to save premiums, a life insurance policy can legally be back dated up to A. 3 months B. 4 months C. 6 months D. 12 months Which of the following is generally covered in a major medical plan A. Cosmetic surgery B. Skilled nursing care C. Intentional injuries D. Infertility treatment In a life insurance contract, warranties are considered to be A. Any statement made by the applicant B. The same as a representation C. Grounds to void a policy D. Absolute true statement HIPAA provides that the 10% excise tax for early withdrawal from IRAs will not apply to the extent a withdrawal is used for medical expenses that exceed what percentage of the individuals adjusted gross income A. 5.0% B. 6.5% C. 7.5% D. 8.0% Which of the following is described when a selected group of practitioners, in a certain area, agrees to provide services at a pre-arranged cost on a fee free-for service basis A. Preferred provider organization B. Indemnity organization C. Risk purchasing group D. Coalition group

Which of the following statement divided options would an insurer invest In the policy owners money and interest earning to the initial amount of the dividends as such earnings accrue? A. Accumulation at an interest option B. Paid-up additions option C. Cash dividend option D. Reduced premium dividend options Under long-term care insurance, which of the following must an insurer offer to each policyowner at the time of purchase A. Daily minimum benefits levels B. An inflation protection feature C. Lifetime minimum benefit feature D. A decrease in annual benefit levels Which of the following services is excluded from coverage under medical health insurance A. Custodial care B. Home health care C. Hospice care D. Blood transfusion In which of the following policies is the insured covered to age 100 and the owner pays a level premium throughout the duration of the policy A. Renewable term policy B. Straight whole life policy C. Paid-up whole life policy D. Single premium One major benefit of the noncontributory health insurance plan helps avoid which of the following? A. Adverse selection B. Tax exclusion C. High premiums D. Paying a claim A group that is eligible for insurance and is comped of several employees combining their work for insurance coverage is A. An individual employer group B. An alumni group C. A multiple employer trust D. A labor union Title XVIll if the social security act outlines A. Medicare provisions B. HMO guidelines

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C. IRA requirements D. Federal life insurance regulations When managing a health insurance plan for a group the insurers administrative cost for each insured person is A. Varies among the group members B. Equals the cost of the insuring each member individually C. Is less then the cost if each member was individuallymatured D. Is more then the cost if each member was individuallyinsured A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of the following EXCEPT A. Fare paying passenger B. War, or act of war C. A licensed pilot of a personal aircraft D. Suicide Which of the following allows for a multiple of the face amount to be paid if the insured does because of an accident A. Accidental death B. Accelerated death benefit C. Term rider D. Cost of living rider Falsifying the terms, benefits, advantages or conditions of an insurance policy is an example of which of the following A. Misrepresentation B. Concealment C. Coercion D. Forgery When the insured gives birth, coverage for eligible newly born children consists of coverage of injury or sickness including A. Delivery expenses B. Mothers lost wages C. Birth abnormalities D. Mothershospitalization A producer that presents a claim for payment which contains a false information is guilty of A. Deformation B. Enticement C. Forgery D. Fraud

Jacks long-term care insurance policy is most likely to provide which of the following benefits A. $200 a day B. $10,000 per person C. $50,000 per accident D. $1,000,000 combined single limit What medical plan REQUIRES the subscriber to choose a primary care physician (PCP) who authorizes referrals also known as a “gatekeeper system”? A. HMO B. PPO C. Medicare supplement D. Point of service (POS) Group Disability Income insurance usually involves A. Higher premiums than individual disability policies B. Providing benefits for nonoccupational illnesses and injuries C. A requirement that all employees participate D. Workers who are individually uninsurable because of the high-risk occupations An individual withdrawal before the age 59 ½ from a qualified plan is taxed an additional penalty of what percentage? A. 5% B. 10% C. 25% D. 50% A Medicare supplement policy is best described as A. A blanket policy B. A limited policy C. An accident-only policy D. A specified disease policy Which of the following circumstances may cause policy premiums to be higher than the standard premiums A. Agent misquotes the price B. The insured appears unhealthy C. Insured does not meet certain requirements D. Insured does not complete the applicationcompletely Which of the following elements of insurable risks allows the insurance company to exclude nuclear events of war from coverage? A. Randomly selected exposure B. Definite and measurable

C. Large loss exposure D. Not catastrophic A disability income benefit is intended to A. Provide cash payments for living expenses B. Provide benefits for nursing home expenses C. Provide annuity D. Paty for non-reimbursable expenses Which of the following long term disability clauses states that an insured are considered totally disabled when they CANNOT preform the major duties of a gainful occupation for which they are reasonably suited because of education and training A. Partial disability B. Presumptive disability clause C. Regular occupation clause D. Any occupation clause All of the following retirement plans qualify for federal income tax deduction except A. Keogh Plan for non-incorporated business B. Simplified Employee pension plans C. Traditional IRA D. Roth IRA To receive proceeds from a death benefit, a minor A. Must be related to the insured B. Can only be named as a contingent beneficiary C. Must be at least 16 years old D. Must have an appointed guardian Which of the following is the specific period when the insured may still make payment for the continuance of the policy after the premium payment is due? A. Grace period B. Late payment period C. Elimination period D. Reinstatement period The purpose of life and health insurance guarantee association act is A. A requirement to pay all claims B. To allow purchasing insurance across state lines C. To promote higher standard of quality healthcare D. To protect against failure of contractual obligations Which is not elected in a long-term care policy? A. Alcoholism

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B. Alzheimer's disease C. Non-cognitive metal disorders D. Treatment caused by participants in criminal behavior By requiring the insured to get the insurers prior authorization for dental treatment, the insurer can control costs by A. Avoiding unnecessary treatment and encouraging less expensive options B. Compelling the insured to choose the least expensive treatment C. Informing the insured of the benefits that are available D. Transferring more of the cost to the insured At the time of an insureds death, a per capita distribution of policy proceeds are paid A. The estate of the deceased beneficiaries B. The primary beneficiaries children if the primary has predeceased the insured C. All of the primary and contingent beneficiaries in equal installments D. The name living primary beneficiary The PRIMARY difference between non cancellable policy and a guaranteed renewable policy is that the only with noncancellable policy can the insurer A. Retain the right to refuse to renew the policy at a certain age B. Cancel for excessive claims C. Allow the renewal of policy for 5 years if the insured is over the age of 64 D. Never raise premiums What happens when multiple disability policies are held from the same insurer in excess of the maximum limit of indemnity A. The excess insurance is valid and payable at the time of claim B. The regular insurance is void and the premiums are returned to the insured C. The excess insurance is void and excess premiums are returned to the insured D. The regular and excess insurance are void and all premiums are returned to the insured Which of the following is an example of a presumptive disability A. Loss of a hand B. Loss of one foot C. Loss of hearing D. Loss of three toes on one foot Which of the following is a characteristic of a term life policy? A. The price will be locked in for awhile for the of the insured B. The initial premium will be lower than a standard whole life policy C. The policy will protect the insured for the entire life, regardless of age D. The policy holder can make a loan against the policy as a cash value builds A life insurance rider which reimburses expenses incurred in a convalescent or bursting home facilityis

A. Disability B. Long-term care C. Accidental death D. Cost of living The cost associated with mortality for a life insurance Policy, with all other factors being equal would be higher if the insured were A. Educated B. Older C. Single D. Younger What is protected by the Gramm-Leach-Billey act and chapter 5 of the Michigan insurance code A. Consumers finical information B. Third party claimants rights C. Companies statistical data D. Extended policy coverage All of the following are purposes of an annuity EXCEPT A. An annuity is designed to create an estate B. An annuity is designed to liquidate an estate C. An annuity is designed to disrupt accumulated principal D. An annuity is designed for tax-deferred growth of principal Which of the following is a provision in an interest-sensitive life policy which allows policyowners to withdrawal the policy cash value interest free? A. Partial surrender B. Automatic premium loan C. Wavier of premium D. Spendthrift clause Which insurance product is regulated by the United StatesSecurities and Exchangecommission and the state of Michigan A. Adjustable life insurance B. Universal life insurance C. Variable life insurance D. Whole life insurance Which type of group has a constitution and bylaw, is organized and maintained in good faith for the purpose other than obtaining insurance, and has insurance for the purpose of covering members and their employees A. Credit insurance group B. Multiple employer group C. Association of labor group

D. Employee or individual employer group According to the Michigan insurance code, which of the following MUST a producer do when replacing a life insurance policy A. Notify the beneficiaries of all of the policies or annuity contracts proposed to be replaced B. Notify the insurer whose policy is being replaced, but not the insurer replacing the policy C. Submit to the replacing insurer a list of all the life insurance policies or annuity proposed to be replaced D. Forward the signed and completed disclosure statement to the replacing insurer and not provide the applicant with a copy In a whole life policy, the amount of pure insurance protection is the policies face value minus the cash value, when the cash value increases, what happens to the pure insurance protection and the face value? A. The pure insurance protection and face value increase B. The pure insurance protection and face value remain the same C. The pure insurance protection decreases but face value increases D. The pure insurance protection decreases but the dace value remains the same The concept of indemnity states that the insurance company should restore A. a loss that is unmeasurable B. the insureds loss in whole or in part C. the loss only if it pertains to an accident D. the loss only if it pertains to life insurance in most cases, enrollment in which Medicare coverage part requires no premium and is automatic for individuals who receive social security A. part A B. part B C. part C D. part D a contracted marketing firm ask the agency to provide their clients policy numbers for use in marketing campaign, according to the Michigan insurance code, what is the agency required to do about this request A. fully comply with the legal request B. do not comply with this request as doing so is illegal C. gain permission form the department before complying D. direct them to the insurance company for the information ‘ six years after a disability policy, was issued, an insured changed occupationsfrom ,less hazardous to more hazardous and failed to notify the insurer. Under the change of occupation provision if a claim is filed the insurer A. pay no benefit since the insured failed to inform the insurer of the change in occupation

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B. pay the benefit as contracted for since the policy is over 2 years old C. reduce the benefit to an amount the actual premium would have purchased at the more hazardousoccupation D. reduce the payment by the exact amount of the premium underpayment two business partners own life insurance on each other. If one party dies which of the following contract allows the surviving partner to use the death benefit to purchase the deceased owners interest A. buy-sell agreement B. key employee life insurance C. business continuation D. accidental death a corporation is owned by the three individuals who hold significant positions in running the business, which of these policies will pay the business a monthly benefits to cover the expenses of hiring a replacement if one of the partners is seriously injured and unable to work? A. Key person life insurance B. Business overhead expenses’ C. Comprehensive overhead expenses D. Key person disability insurance The major factor in determining the benefit under a disability income policy is A. Age B. Gender C. Occupation D. Wages Upon the death of an insured individual;, what does life insurance guarantee to deliver to the beneficiary A. An annuity B. A dividend option C. A final expense fund D. A specific fund of money A producers fiduciary responsibility includes which of the following activities? A. Recordingthe receipt and distribution of premiums due to the insurer B. Properly remunerating persons who furnish leads on prosects C. Providing needed insurance to prospects insured through any sources that areavailable D. Guaranteeing payment to insureds for losses covered by policies that the producer sold If an annuitant dies during the accumulation period, his or her beneficiary will receive A. The greater of the accumulation cash value or the premium total premiums paid B. The lesser of the accumulation cash value or the total premiums paid C. No monetary funds D. Both the accumulated cash value and total premiums paid

Which rider allows the husband or wife of the insured to be added to primary insureds policy? A. Level term rider B. Spouse term rider C. Guaranteedinsurability rider D. Accelerated death benefit rider When would an attending physiciansstatement be appropriate for life insurance purposes? A. As a matter of routine when the applicant signs the life insurance applicant B. At the request of the insurer without knowledge or approval of the applicant C. At the request of the insurance applicant to be submitted with life insurance application D. At the request of the insurer when it could affect the underwriting decision with consent of the application A producer who diverts funds of an insurer may be found guilty of A. Coercion B. Fraud C. Rebating D. Twisting Under the pre-existing conditions provisions, the term group[ health plan is defined as A. An individual health insurance policy B. An employee welfare benefit plan C. Medigap D. Part A of the social security act If an insurer does NOT pay on a disability claim, how many days after the written proof of loss has been furnished must the insured wait for legal action? A. 10 B. 30 C. 60 D. 90 Which type of health insurance combines all of the basic medical expenses benefits into a single package A. Group credit health insurance B. Accidental death insurance C. Comprehensive medical D. Limited policies An insurer monitors the care an insured is receiving in the hospital to be sure that everything is proceeding according to schedule. This BEST describes A. Recertification B. Concurrent review C. Benefit checking

D. Claims adjusted If a long-term care insurance policy or certificate replaces another long-term care policy, what does the replacing policy have to do? A. Allowing a 45 day “Free look” period B. Wavie any preexisting conditions requirement after 30 days and allow for a 45 day “Free look” C. Waive any time periods applicable to preexisting conditions to the extent that similar exclusions have been satisfied under the originalpolicy D. Waive any time periods applicable to preexisting conditions as long as the clients agrees in writing to stay on a doctor recommended treatment schedule Which statement is true about whole life insurance A. outstanding loans do not affect the death benefit B. income taxes may be due when the policy is surrendered C. policy loans may be used up to the face amount of the policy D. the cash value may fluctuate depending on the stock market which type of annuity guarantees a level benefit payment A. variable B. universal C. limited life D. fixed which type of policy an amount per day for hospitalization directly to the insured regardless of others heath insurance A. hospital indemnity B. blanket C. medigap D. limited- amount per diem under the Michigan insurance code, what must a licensee do prior to operating under an assumed business name? A. notify all prospective insured B. notify the commissioner prior to use C. notify the Michigan sectary of state D. obtain prior approval from the insurance company under workers compensation, injured employees are covered for all of the following losses EXCEPT A. loss of wages B. pain and suffering C. medical expenses D. occupational illness

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a producer offers a $55 handbag in exchange for the purchase of insurance policy. The producer would be considered to have committed which unfair trade practice? A. Coercion B. Rebating C. Replacement D. Twisting All ofthe following are true concerning group life policy EXCEPT A. A master policy is issued to the company B. Individual insureds received a certified of insurance C. The group must contain a specified number of members D. The group must be formed for insurance purposes Which type of insurer is sometimes referred to as a participating company? A. Authorities insurer B. Reciprocal insurer C. Mutal insurer D. Stock insurer Which of the following BEST describes an indemnity plan A. A percentage of the fee is paid directly to the primary care physician B. An insured is provided a specific dollar amount for services C. A percentage of the fee is paid directly to the provider D. No limit of insurance provided there are receipts If a premium is NOT submitted with a life insurance application the producer MUST have the applicant sign of the following when delivering a policy A. A replacement form B. An HIV consent form C. A statement of good health D. A beneficiary assignment Which of the following is a professional liability for which producer can be sued for mistakes of putting a policy into effect A. Third party administrator B. Erorrs and omissions C. Performance bond D. Fiduciary For an insurance contract to be valid it must A. Be notarized B. Be in writing C. Include a deposit and receipt

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D. Include an offer and an acceptance To be eligible for Medicare part C, an individual must be enrolled in which of the following A. Part A only B. Part B only C. Part A and B D. Part A and D Which statement is correct concerning classification of risks? A. Rated policies merit lower premiums B. A preferred individual is issued of a rated policy C. Substandard applicants are never issued policies D. Preferred risk pays a lower premium than standard risk The loss application is considered A. Legal and binding B. To be the producers report C. To be the insurance contract D. A source of underwriting information A group health insurance certificate of coverage is A. Issued in lieu of a policy B. Only provided to an employer C. Given to the employee as proof of coverage D. Issued to the policyowner as proof of coverage Which rider pays a monthly amount to the policyowner in the event of total and permanent disability A. Waiver of cost of insurance B. Disability income rider C. Wavier of premium D. Payor benefit Which of the following is a whole life policy option that allows for a delinquent premium to be paid automatically by a new policy loan A. Term rider B. Fixed-period installments C. Automatic premium loss option D. Spendthrift clause Clients of an HMO are known as A. Insureds B. Subscribes C. Participants D. beneficiaries

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