Which of the following laws requires an insurer to notify an applicant in writing that an
investigative consumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) - ANSWER
Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals MUST be
offered coverage under a non-contributory plan?
-25
-50
-75
-100 - ANSWER 100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must exist
at which of the following times?
-When a change of beneficiary is requested
-At the inception of the policy
-When a beneficiary other than a relative is named
-At the time a claim is submitted - ANSWER At the inception of the policy
When periodic claim payments are required under a long-term disability income policy, an
insurer MUST make payments to an insured at least once every:
-month
1
,-three months
-six months
-year - ANSWER month
M and N own a small interior design studio that employs six people. The owners are
concerned about the financial continuation of the business if either of them should become
permanently disabled. In this situation, a producer would MOST likely recommend which of
the following types of contracts?
-Basic Hospital
-Disability Buy-Out
-Comprehensive Major Medical
-Short-Term Disability Income - ANSWER Disability Buy-Out
Which of the following health policies requires a beneficiary designation?
-Travel Accident
-Medicare Supplement
-Blanket
-Long Term Care - ANSWER Travel Accident
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the
following policy features?
-Extensions of coverage
-Benefits clause
-Riders
-Exclusions - ANSWER Exclusions
An insured whose Disability Income policy contains a Change of Occupation clause takes a
new job in a more hazardous occupation and fails to notify the insurer of the change. One
year later, the insured becomes disabled. The insurer will most likely take which of the
following actions?
2
, -Cancel the policy and refund one year's premiums
-Settle the claim according to what the premiums would have purchased under the more
hazardous occupation
-Pay the claim in full and then cancel the policy
-Pay the claim after deducting an extra one-year premium payment - ANSWER Settle the
claim according to what the premiums would have purchased under the more hazardous
occupation
Which of the following definitions of disability would cover a permanent partial disability?
-Own occupation
-Any occupation
-Residual disability
-Presumptive disability - ANSWER Residual disability
When delivering a policy to a client, a producer should take all of the following actions
EXCEPT:
-Collect any premiums due
-fully explain all exclusions and/or riders
-keep the policy in the producer's office for safe-keeping on behalf of the client
-review all benefits provided by the policy - ANSWER keep the policy in the producer's
office for safe-keeping on behalf of the client
The Social Security program provides all of the following benefits EXCEPT:
-Retirement
-survivor
-disability
-workers compensation - ANSWER workers compensation
Which of the following definitions MOST accurately describes the Probationary Period?
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investigative consumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) - ANSWER
Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals MUST be
offered coverage under a non-contributory plan?
-25
-50
-75
-100 - ANSWER 100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must exist
at which of the following times?
-When a change of beneficiary is requested
-At the inception of the policy
-When a beneficiary other than a relative is named
-At the time a claim is submitted - ANSWER At the inception of the policy
When periodic claim payments are required under a long-term disability income policy, an
insurer MUST make payments to an insured at least once every:
-month
1
,-three months
-six months
-year - ANSWER month
M and N own a small interior design studio that employs six people. The owners are
concerned about the financial continuation of the business if either of them should become
permanently disabled. In this situation, a producer would MOST likely recommend which of
the following types of contracts?
-Basic Hospital
-Disability Buy-Out
-Comprehensive Major Medical
-Short-Term Disability Income - ANSWER Disability Buy-Out
Which of the following health policies requires a beneficiary designation?
-Travel Accident
-Medicare Supplement
-Blanket
-Long Term Care - ANSWER Travel Accident
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the
following policy features?
-Extensions of coverage
-Benefits clause
-Riders
-Exclusions - ANSWER Exclusions
An insured whose Disability Income policy contains a Change of Occupation clause takes a
new job in a more hazardous occupation and fails to notify the insurer of the change. One
year later, the insured becomes disabled. The insurer will most likely take which of the
following actions?
2
, -Cancel the policy and refund one year's premiums
-Settle the claim according to what the premiums would have purchased under the more
hazardous occupation
-Pay the claim in full and then cancel the policy
-Pay the claim after deducting an extra one-year premium payment - ANSWER Settle the
claim according to what the premiums would have purchased under the more hazardous
occupation
Which of the following definitions of disability would cover a permanent partial disability?
-Own occupation
-Any occupation
-Residual disability
-Presumptive disability - ANSWER Residual disability
When delivering a policy to a client, a producer should take all of the following actions
EXCEPT:
-Collect any premiums due
-fully explain all exclusions and/or riders
-keep the policy in the producer's office for safe-keeping on behalf of the client
-review all benefits provided by the policy - ANSWER keep the policy in the producer's
office for safe-keeping on behalf of the client
The Social Security program provides all of the following benefits EXCEPT:
-Retirement
-survivor
-disability
-workers compensation - ANSWER workers compensation
Which of the following definitions MOST accurately describes the Probationary Period?
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