State Exam Simulator : 200 questions
Who is protected with the "other insurance with this insurer" provision? - correct answer
Insurance company
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The
total premiums paid had totaled $16,000. What were the federal income tax consequences to
the policyowner on receipt of the cash value? - correct answer $16,000 was received tax-free
and $4,000 as ordinary income
After the extended term life nonforfeiture option is chosen, the available insurance will be -
correct answer level term for a stated period of time
What is considered the collateral on a life insurance policy loan? - correct answer The policy's
cash value
Each of the following will trigger a benefit under the Presumptive Disability provision, EXCEPT -
correct answer loss of any one limb
In Nebraska, a long-term care policy which lapses may be reinstated within five months if -
correct answer the covered individual was mentally incapacitated
A reciprocal insurer typically has an administrator who manages the premiums collected from
the group's members. This administrator is called a(n) - correct answer attorney-in-fact
Which of the following outlines the authority given to the Producer on behalf of the insurer? -
correct answer Producer contract
An accident and health plan that typically covers only the services of approved providers is
called a(n) - correct answer HMO plan
,State Exam Simulator : 200 questions
Which of the following statements BEST describes the HIPAA portability rules for an individual
who changes from one group medical plan to another? - correct answer Reduces or eliminates
any pre-existing conditions excluded under the new plan
How do benefit payments fluctuate over time in a variable life annuity? - correct answer
Reflects changes in the market value of assets in a separate account
Twisting means - correct answer Persuading an insured, to the insured's detriment, to switch
policies
Some standard Medicare Supplement policies include which benefit? - correct answer vison
care
Advertisements of Medicare Supplement Plans require state approval for each of the following
EXCEPT - correct answer Government publications
Within how many days must an insured be notified in writing if the owner or beneficiary of a
viatical settlement changes? - correct answer 20 days
Which of the following financial products creates an instant estate, no matter when the date of
death? - correct answer Life insurance
Insurable interest in one's own life generally is regarded as - correct answer unlimited
Which of the following statements BEST describes disability buy-sell insurance policies? - correct
answer Policy proceeds are typically received tax-free
Which of these procedures is NOT designed for ambulatory care centers? - correct answer
Inpatient surgery
, State Exam Simulator : 200 questions
When is it acceptable for a producer to leave an applicant an incomplete illustration? - correct
answer Never
A life annuity feature which provides benefit payments for a minimum number of years, no
matter when the annuitant dies, is called - correct answer Period Certain
Which situation would not require the insured's consent when a life or health insurance policy is
issued? - correct answer A policy is purchased by a parent for a minor child
A disability income insurance policy was recently issued with a rating. What does this mean? -
correct answer Policy owner will be charged an additional premium
Which statement is INCORRECT concerning a tax-sheltered annuity (TSA)? - correct answer
Annual investment gains are included in participant's gross income
Which life insurance policy option allows the policyowner to have coverage equal to the net
death benefit of the lapsed policy? - correct answer Extended term nonforfeiture option
If an individual would like to enroll in Medicare or seek public information about Medicare,
which federal agency handles this? - correct answer Social Security Administration
Which of the following would most likely purchase an immediate annuity? - correct answer
Retiree having a lump sum to invest
Which of the following would NOT have a restricted ability to enter into a contract? - correct
answer Small employer
Who is protected with the "other insurance with this insurer" provision? - correct answer
Insurance company
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The
total premiums paid had totaled $16,000. What were the federal income tax consequences to
the policyowner on receipt of the cash value? - correct answer $16,000 was received tax-free
and $4,000 as ordinary income
After the extended term life nonforfeiture option is chosen, the available insurance will be -
correct answer level term for a stated period of time
What is considered the collateral on a life insurance policy loan? - correct answer The policy's
cash value
Each of the following will trigger a benefit under the Presumptive Disability provision, EXCEPT -
correct answer loss of any one limb
In Nebraska, a long-term care policy which lapses may be reinstated within five months if -
correct answer the covered individual was mentally incapacitated
A reciprocal insurer typically has an administrator who manages the premiums collected from
the group's members. This administrator is called a(n) - correct answer attorney-in-fact
Which of the following outlines the authority given to the Producer on behalf of the insurer? -
correct answer Producer contract
An accident and health plan that typically covers only the services of approved providers is
called a(n) - correct answer HMO plan
,State Exam Simulator : 200 questions
Which of the following statements BEST describes the HIPAA portability rules for an individual
who changes from one group medical plan to another? - correct answer Reduces or eliminates
any pre-existing conditions excluded under the new plan
How do benefit payments fluctuate over time in a variable life annuity? - correct answer
Reflects changes in the market value of assets in a separate account
Twisting means - correct answer Persuading an insured, to the insured's detriment, to switch
policies
Some standard Medicare Supplement policies include which benefit? - correct answer vison
care
Advertisements of Medicare Supplement Plans require state approval for each of the following
EXCEPT - correct answer Government publications
Within how many days must an insured be notified in writing if the owner or beneficiary of a
viatical settlement changes? - correct answer 20 days
Which of the following financial products creates an instant estate, no matter when the date of
death? - correct answer Life insurance
Insurable interest in one's own life generally is regarded as - correct answer unlimited
Which of the following statements BEST describes disability buy-sell insurance policies? - correct
answer Policy proceeds are typically received tax-free
Which of these procedures is NOT designed for ambulatory care centers? - correct answer
Inpatient surgery
, State Exam Simulator : 200 questions
When is it acceptable for a producer to leave an applicant an incomplete illustration? - correct
answer Never
A life annuity feature which provides benefit payments for a minimum number of years, no
matter when the annuitant dies, is called - correct answer Period Certain
Which situation would not require the insured's consent when a life or health insurance policy is
issued? - correct answer A policy is purchased by a parent for a minor child
A disability income insurance policy was recently issued with a rating. What does this mean? -
correct answer Policy owner will be charged an additional premium
Which statement is INCORRECT concerning a tax-sheltered annuity (TSA)? - correct answer
Annual investment gains are included in participant's gross income
Which life insurance policy option allows the policyowner to have coverage equal to the net
death benefit of the lapsed policy? - correct answer Extended term nonforfeiture option
If an individual would like to enroll in Medicare or seek public information about Medicare,
which federal agency handles this? - correct answer Social Security Administration
Which of the following would most likely purchase an immediate annuity? - correct answer
Retiree having a lump sum to invest
Which of the following would NOT have a restricted ability to enter into a contract? - correct
answer Small employer
