NM Life Insurance Final Exam Mock Test Life, accident, and health or sickness insurance producer exam Questions With Complete Solutions|Sure To Pass|Already Graded A+|Latest Release

How is the uninsured protected if a payor benefit is attached to the life insurance policy? premium payments are waived in the event the premium payor dies or becomes disabled Which of the following health care plans charges a premium that cannot be increased? Noncancelable What is necessary in order to be eligible to receive benefits from a long-term care policy? a) The insured must have been receiving disability benefits for 6 months. b) Age is the only requirement; upon reaching age 65, LTC benefits are available. c) The insured must be unable to perform some activities of daily living. d) The insured must meet certain economic standards. c) The insured must be unable to perform some activities of daily living. Normally to be eligible for benefits from a long-term care policy, the insured must be unable to perform some of their activities of daily living (ADLs). ADLs include bathing, dressing, toileting, transferring, continence, and eating. Within how many days of requesting an Investigative Consumer Report must an insurer notify the consumer in writing that the report will take place? a) 5 b) 7 c) 14 d) 3 d) 3 Investigative Consumer Reports cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested. What option allows the insured to periodically increase benefit levels without providing evidence of insurability? 2 a) Guarantee of insurability b) Guarantee renewable c) Annual increase d) Level premium a) Guarantee of insurability Guarantee of insurability option allows the insured to periodically increase benefit levels without providing evidence of insurability. The amount is usually limited to allowing a 5% compounded annual increase. The two types of assignments are a) Absolute and collateral. b) Absolute and partial. c) Complete and partial. d) Complete and proportionate. a) Absolute and collateral. Absolute assigns the entire policy. Collateral assigns a part or all of the benefits. Where would Long-term care services be rendered? a) An acute care unit of a hospital b) A doctor's office c) A nursing home or one's own home d) A surgery center c) A nursing home or one's own home Long-term care policies provide benefits for medically necessary services which one receives in a nursing home or perhaps in one's own home, but not care received in an acute care unit of a hospital. Which nonforfeiture option provides coverage for the longest period of time? a) Extended term b) Paid-up option c) Accumulated at interest d) Reduced paid-up d) Reduced paid-up The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. If an annuitant dies before annuitization occurs, what will the beneficiary receive? a) Either the amount paid into the plan or the cash value of the plan, whichever is the lesser amount b) Amount paid into the plan 3 c) Cash value of the plan d) Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount d) Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount If an annuitant dies before annuitization, the beneficiary will receive either the amount paid into the plan or the cash value of the plan, whichever is greater. When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT a) Include a policy summary on the proposed life insurance in the communication with the existing company. b) Obtain from the producer a list of the applicant's life insurance or annuity contracts to be replaced. c) Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. d) Send the existing insurance company a written notice of replacement. c) Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. Providing a copy of the Important Notice Regarding Replacement is a producer's responsibility. Accidental bodily injury is an unforeseen and unintended injury that results from an accident rather than a sickness. Which of the following is an example of a peril covered in an accident and health insurance policy? sickness When is the insurability conditional receipt given? When the premium is paid at the time of application Which of the following information regarding an insured is NOT included in an Investigative Consumer Report, which is requested by the underwriter? Medical History What document decribes an insured's medical history, including diagnoses and treatments? attending physician's statement Which of the following do the Standard and Preferred risk categories share? Premiums are not elevated. Are insurance company underwritiers allowed to discriminate? Yes, but not unfairly. Uniform Individual Accident and Sickness Policy Provisions Law was developed by the National Association of Insurance Commissioners. This law established standard provisions that are to be included in all individual health insurance policies. The purpose of these provisions is to define the rights and duties of both in insurer and the policyholder. 4 Notice of claim insured's duty to provide the insurer with reasonable notice in the event of a loss. Notice is required with 20 days of the loss or as soon as reasonably possible. Is not a feature of a guaranteed renewable provision? the insurer can increase the policy premium on an individual basis. What is the contract provision that allows the insurer to nonrenew health coverage if certain events occur? conditional renewable. A health insurance policy clause that prevents an insurance company from denying payment of a claim after a specified period of time is known as the time limit on certain defenses clause. The expense for an autopsy covered under the physical exam and autopsy provision is paid by The insurer Which renewal option does not guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due date? optionally renewable the provision which states that both the printed contract and a copy of the application for the contract between the policyowner and insurer is called the entire contract Under the uniform required provisions, proof of loss under a heath insurance policy normally should be filed within 90 days How soon following the occurrence of a covered loss, or after the insurer becomes liable for periodic payments for insome benefits, must an insured submit written proof of such loss to the insurance company. with 90 days or as soon as reasonably possible but not to exceed one year. A policy with a 31 day free look the policy remains in force without penalty for 31 days even though the premium due has not been paid. A guaranteed renewable health insurance policy allows the policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class. If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following? adjust the benefits in accordance with the increased risk. In a group health policy, a probationary period is intended for people who joined the group after the effective date. Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? A. Apparent B. Assumed C. Express D. Implied D. Implied When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer? A. Domestic B. Alien C. Nonadmitted D. Foreign D. Foreign 5 A participating insurance policy may do which of the following? A. Require 80% participation B. Pay dividends to the policyowner C. Provide group coverage D. Pay dividends to the stockholder B. Pay dividends to the policyowner What is the effect of the market value adjustments in a market value adjustment annuity? Transfers some of the investment risk to the policyowner Which of the following statements is TRUE concerning the Accidental Death Rider? It will pay double or triple the face amount Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? Aleatory Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain a statement that is sufficiently clear to identify the insured and the nature of the claim Which of the following is a health care program funded by the federal government for the retirees and spouses of the military services? Tricare Bob is admitted into a nursing home, leaving his wife Sarah to pay the bills. The _________ will allow her to keep a portion of the couple's income and assets equal to a percentage of the federal poverty line. Spousal Impoverishment rule Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? Payment of Claims An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true? The insured was in compliance with the policy requirements regarding claims. What option allows the insured to periodically increase benefit levels without providing evidence of insurability? Guarantee of insurability Which renewability provision are you most likely to see on a travel accident policy? period of time In Kentucky, the state's continuing education requirement 24 hours of CE each biennium Under what condition are group disability income benefits received by an employee NOT taxable as income? When the benefits received are equal or less than the employee's percentage of the contribution Continuing education requirements are 6 24 hours