Qbank Past Paper PDF

6/24/23, 12:27 AM QBank all Test ID: 255598758 Question #1 of 900...

6/24/23, 12:27 AM QBank all Test ID: 255598758 Question #1 of 900 Question ID: 742616 Which of the following statements about preferred provider organizations (PPOs) is NOT correct? A) PPOs operate on a prepaid basis. B) Employers, insurance companies, and other health insurance benefit providers are typical groups that contract with PPOs. C) PPO members select from among preferred providers for needed services. D) A PPO is a group of health care providers, such as doctors, hospitals, and ambulatory health care organizations, that contracts with a group to provide their services. Question #2 of 900 Question ID: 741561 Which of the following statements about participating policies is NOT correct? A) They are eligible for dividends. B) They are issued only by stock companies. C) They enable the policyowner to share in the earnings of the company. D) The annual premium rate is generally higher than that for nonparticipating policies. Question #3 of 900 Question ID: 885095 Micah pays $220 annually for a $50,000 life insurance policy. The premium is due June 1, however it is not paid until June 24. If Micah died on June 15, what would the amount of the death benefit? A) $50,000 B) $49,780 C) $0 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 1/279 6/24/23, 12:27 AM QBank D) $49,220 Question #4 of 900 Question ID: 741694 AGC Publishing applied for key-person life insurance on its chief executive officer. Which of the following parties must sign the application? A) An officer of AGC and the agent handling the application B) The CEO and the agent handling the application C) The CEO and another officer of AGC D) The CEO, another officer of AGC, and the agent handling the application Question #5 of 900 Question ID: 741529 What is the difference between a stock insurer and a mutual insurer? A) Stock insurers have certificate holders and mutual insurers have policyholders. B) Stock insurers have shareholders and mutual insurers have policyholders. C) Stock insurers have policyholders and mutual insurers have certificate holders. D) Stock insurers have policyholders and mutual insurers have shareholders. Question #6 of 900 Question ID: 742239 Joanna and her spouse, Bill, have a $40,000 annuity that pays them $200 a month. Bill dies, and Joanna continues receiving the $200 monthly check as long as she lives. When Joanna dies, the payments cease. This is an example of A) a life annuity B) a joint and full survivor annuity C) an installment refund annuity D) a cash refund annuity https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 2/279 6/24/23, 12:27 AM QBank Question #7 of 900 Question ID: 742535 What disability policy indemnifies the business for certain expenses incurred when the business owner is disabled? A) Cash value policy B) Business overhead expense policy C) Disability buyout policy D) Key-person disability policy Question #8 of 900 Question ID: 741739 Which of the following criteria may be used when determining the premium rate for an insurance applicant? A) Race B) Religion C) Blindness D) Age Question #9 of 900 Question ID: 742816 What is the definition of pre-existing condition in a long-term care policy? A) A condition for which advice or treatment was received within 6 months before the effective date of coverage. B) A condition for which advice or treatment was received within 1 year before the effective date of coverage. C) A condition for which advice or treatment was received within 3 months before the effective date of coverage. D) Any health condition that existed before coverage was in force. Question #10 of 900 Question ID: 741954 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 3/279 6/24/23, 12:27 AM QBank At the age of 34, Ben purchased a whole life policy with a guaranteed insurability option. How many opportunities will he have to purchase additional life insurance in the future? A) 4 B) 2 C) 3 D) 5 Question #11 of 900 Question ID: 742744 Paul, age 66, works for American Accounting, Inc., a firm with 500 employees. He is covered by its health insurance plan. He is also covered by Medicare. Which of the following statements is CORRECT? A) Medicare is the primary payor, and American Accounting’s plan is the secondary payor. B) American Accounting’s plan is the primary payor, and Medicare is the secondary payor. C) Medicare will pay only the deductibles that are not covered by American Accounting’s plan. D) Medicare is not required to provide coverage for Paul. Question #12 of 900 Question ID: 742274 Ralph owns a $50,000 nonparticipating whole life policy. Its cash value has accumulated to $15,000, and he has paid a total of $9,500 in premiums. If he surrenders the policy for its cash value, how will it be taxed? A) Ralph will receive $9,500 tax-free; the $5,500 balance is taxable as income. B) Ralph will receive the $15,000 as taxable income. C) Ralph will receive $5,500 tax-free; the $9,500 balance is taxable as income. D) Ralph will receive the $15,000 tax-free. Question #13 of 900 Question ID: 1353149 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 4/279 6/24/23, 12:27 AM QBank All of the following statements regarding concealment are correct EXCEPT A) concealment is neglecting to communicate that which a party knows and ought to communicate B) concealment, whether intentional or not, entitles an injured party to rescind insurance C) concealment is similar to misrepresentation, except that it involves misstating, rather than withholding, a material fact D) concealment does not include information excluded by a warranty and not material to the risk Question #14 of 900 Question ID: 741543 Which of the following insurance companies is owned by its policyholders? A) Home service insurer B) Stock life insurance company C) Reinsurer D) Mutual life insurance company Question #15 of 900 Question ID: 741704 On August 1, Roger completed an application for a major medical policy, gave his agent a check for the initial premium, and received a conditional receipt from the agent. No medical examination was required. On August 3, the agent submitted Roger’s application and premium to the insurance company. On August 6, Roger was involved in an accident and admitted to a hospital. On August 12, the agent received Roger’s policy from the insurance company. Which of the following statements concerning this situation is CORRECT? A) Roger’s coverage began the day the agent sent the application and premium to the insurance company. B) Roger’s coverage began when he received the conditional receipt. C) Roger’s coverage will begin when he receives the policy from the agent. D) Roger’s coverage began the day the insurance company received the application and premium from the agent. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 5/279 6/24/23, 12:27 AM QBank Question #16 of 900 Question ID: 1530707 Camila has a $100,000 accidental death and dismemberment (AD&D) policy. If she is in an accident and loses her right arm, how much will this policy pay? A) $0 B) $75,000 C) $100,000 D) $50,000 Question #17 of 900 Question ID: 741481 Which of the following statements best summarizes the function of insurance? A) It spreads financial risk over a diverse group of people who are exposed to different risks. B) It is a form of legalized gambling. C) It spreads financial risk over a large group so as to minimize the loss to any one individual. D) It protects against living too long. Question #18 of 900 Question ID: 742068 Jamal’s agent delivers his life policy to him on February 5. Until what date can Jamal opt to return his policy and receive a full refund of the premiums paid? A) March 5 B) February 15 C) Jamal can return it anytime as long as he is within his grace period D) Jamal can do this anytime Question #19 of 900 Question ID: 742434 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 6/279 6/24/23, 12:27 AM QBank Under the time of payment of claims provision, policies that provide for periodic payment of benefits (such as disability income policies) must pay these benefits at least A) quarterly B) monthly C) bimonthly D) semiannually Question #20 of 900 Question ID: 742027 The incontestability period is usually A) the shortest for group life insurance policies B) the same for both individual and group life insurance policies C) longer for individual whole life insurance policies D) shorter for individual term life insurance policies Question #21 of 900 Question ID: 742322 All of the following individuals should be eligible to establish a Keogh (HR-10) retirement plan EXCEPT A) the sole proprietor of a jewelry store B) partners in a furniture store C) a dentist in a private practice whose business is unincorporated D) a major stockholder-employee in a family corporation Question #22 of 900 Question ID: 742692 Dental insurance generally promotes preventive care, and toward that objective it does all the following EXCEPT A) generally require the insured to cover more of the cost for the treatment of dental disease than for the cost of preventive care https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 7/279 6/24/23, 12:27 AM QBank B) exclude dental care for diseases that could have been prevented with better personal hygiene C) usually cover the cost of routine cleanings in full D) cover up to 2 routine examinations per year, once every 6 months Question #23 of 900 Question ID: 742591 HMOs include all of the following features EXCEPT A) a gatekeeper (primary care physician) B) prepaid services C) managed care D) a fee-for-service policy Question #24 of 900 Question ID: 742372 Which of the following falls under the definition of a limited policy? A) Accidental death and dismemberment (AD&D) insurance B) A flat-benefit disability policy C) A prescription drug plan D) Long-term care insurance Question #25 of 900 Question ID: 742584 Which of the following types of plans integrates its coverage with basic medical expense coverage, providing benefits in excess of those specified in the basic plan? A) Supplementary major medical B) Hospital indemnity C) Comprehensive major medical D) Basic umbrella https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 8/279 6/24/23, 12:27 AM QBank Question #26 of 900 Question ID: 742538 What disability policy can be used to fund buy-sell agreements between partners or stockholders in a closely held corporation? A) Long-term care disability policy B) Key-person disability policy C) Disability buyout policy D) Business overhead expense policy Question #27 of 900 Question ID: 742722 Medicare is an example of A) debt insurance B) commercial insurance C) casualty insurance D) social insurance Question #28 of 900 Question ID: 741806 All of the following factors are usually considered cash needs when determining the life insurance needs of a family EXCEPT A) children’s education costs B) outstanding debts C) funds to support spousal retirement D) last illness and funeral costs Question #29 of 900 Question ID: 742107 An assignment in which the assignee receives full control over the policy is called https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 9/279 6/24/23, 12:27 AM QBank A) a collateral assignment B) a revocable assignment C) an absolute assignment D) a guaranteed assignment Question #30 of 900 Question ID: 656886 Group policies issued in California must provide a contestability period of: A) 2 years. B) 6 months. C) 18 months. D) 1 year. Question #31 of 900 Question ID: 741696 Elaine signs an application for a $50,000 life policy, pays the first premium, and receives a conditional receipt. If Elaine were killed in an auto accident 2 days later, A) her beneficiary would receive $50,000, if Elaine qualified for the policy as applied for B) the company could reject the application on the basis that the death was accidental C) the insurer could reject the death claim because the underwriting process was never completed D) the premium would be returned to Elaine’s family because the policy had not been issued Question #32 of 900 Question ID: 741501 All of the following are methods of handling risk EXCEPT A) transfer https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 10/279 6/24/23, 12:27 AM QBank B) repetition C) sharing D) avoidance Question #33 of 900 Question ID: 741565 Which of the following terms correctly describes a life insurance company that is organized outside the United States or its possessions? A) Remote B) Distant C) Alien D) Foreign Question #34 of 900 Question ID: 741692 When applicable, all of the following forms require an applicant’s signature EXCEPT A) an aviation questionnaire B) the authorization form C) an agent’s report D) the application Question #35 of 900 Question ID: 741632 A producer who receives life insurance premiums holds the money in trust as A) a fiduciary B) a broker C) a banker D) an investor https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 11/279 6/24/23, 12:27 AM QBank Question #36 of 900 Question ID: 742602 What is the name of the fixed monthly fee paid by the HMO to the provider? A) Primary care fee B) Capitation C) Fee for service D) Prepaid fee Question #37 of 900 Question ID: 885170 The fixed monthly fee paid to the healthcare provider is called A) the capitation fee B) the fee-for-service C) the deductible D) coinsurance Question #38 of 900 Question ID: 741717 Coverage for a health insurance policy will take effect just as if the policy had already been issued if all of the following conditions have been met EXCEPT A) the policy is eventually issued as applied for B) the policy has been legally delivered to the applicant C) the applicant satisfies all of the conditions of the conditional receipt D) the initial premium was paid with the health application Question #39 of 900 Question ID: 741690 Which of the following does NOT appear in the producer’s report? A) Habits https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 12/279 6/24/23, 12:27 AM QBank B) Financial status C) Character D) Education Question #40 of 900 Question ID: 742846 Health reimbursement accounts are established by employers who provide covered employees with high-deductible health plans. The employer makes tax-deductible contributions, which employees can use for all of the following purposes EXCEPT A) to apply co-payments B) to create tax-deferred savings accounts C) to pay deductibles D) to pay coinsurance Question #41 of 900 Question ID: 742043 Abner’s age was misstated in his application for a $50,000 life policy. What will the company do when it discovers the error? A) It probably will void the policy. B) It will do nothing because the policy cannot be altered in any way after it has been issued. C) It will adjust either the premium rate or the amount of protection. D) It will amend the application, but no additional premium can be charged. Question #42 of 900 Question ID: 741745 Jia is applying for individual medical insurance coverage. All of the following factors will adversely affect her ability to obtain coverage at a reasonable premium EXCEPT A) being 55 years old B) a family history of heart disease https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 13/279 6/24/23, 12:27 AM QBank C) being an avid scuba diver D) working at a desk every day Question #43 of 900 Question ID: 742803 A long-term care policy cannot limit or exclude coverage for which of the following conditions? A) Alzheimer’s disease B) Service provided outside the United States C) Intentionally self-inflicted injuries D) Mental disorders Question #44 of 900 Question ID: 741971 Which of the following period certain income options would call for the highest payment rate per $1,000 of life policy proceeds? A) 5-year period certain B) 15-year period certain C) 20-year period certain D) 10-year period certain Question #45 of 900 Question ID: 885099 Stella sends a written request to her insurer for a change to be made on her policy. What is that change called? A) an endorsement B) a contract C) an application D) an assignment https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 14/279 6/24/23, 12:27 AM QBank Question #46 of 900 Question ID: 741873 Joe buys his first home after obtaining a 30-year mortgage from his bank. He is considering the purchase of life insurance to ensure that the mortgage will be paid in the event of his death, in which case he will leave the house to his spouse and children. What would be the best life insurance protection for Joe? A) Level term B) Universal life C) Whole life D) Decreasing term Question #47 of 900 Question ID: 742847 A flexible spending account (FSA) A) is a qualified employee benefit plan and approved withdrawals are not taxed B) allows funds to roll over from year to year C) requires employees to establish a high-deductible health plan (HDHP) D) is funded by employer contributions to pay for approved health care costs Question #48 of 900 Question ID: 885149 When it is used, the time limit on the certain defenses provision in a health insurance policy provides that the policy cannot be contested and claims cannot be denied after 2 (or 3) years EXCEPT A) for mental incompetence of the insured B) for fraudulent statements in the application C) for incomplete policy records D) for nonpayment of premiums Question #49 of 900 Question ID: 741914 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 15/279 6/24/23, 12:27 AM QBank While a policy loan is generally an available option with any form of permanent life insurance, a partial withdrawal of cash value from the policy is available only with which of the following types of life insurance? A) Variable life B) Straight whole life C) Universal life D) Modified premium whole life Question #50 of 900 Question ID: 741582 Insurers that deal directly with insureds without the use of agents are known as A) reciprocals B) writers independent insurers C) mass marketers D) direct response Question #51 of 900 Question ID: 742569 Alvin is employed by a construction company to erect a skyscraper downtown. He is injured when the company’s crane operator, while lifting an I-beam, accidently strikes Alvin while he is guiding the crane operator. Which of the following statements is CORRECT? A) Alvin is entitled to workers’ compensation because he was injured in a work- related activity. B) Alvin cannot claim workers’ compensation because the injury was accidental. C) Alvin cannot claim workers’ compensation because he may have been partially responsible for the crane operator’s actions. D) Alvin is entitled to workers’ compensation if he prevails on a lawsuit filed against his employer for negligence. Question #52 of 900 Question ID: 741570 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 16/279 6/24/23, 12:27 AM QBank An insurance company that holds a certificate of authority in a state may be known as any of the following EXCEPT A) accepted B) authorized C) approved D) admitted Question #53 of 900 Question ID: 742363 Benefits paid for customary charges incurred during an examination by an ophthalmologist or optometrist are included in A) surgical expense insurance B) vision care insurance C) basic physician’s expense insurance D) disability income insurance Question #54 of 900 Question ID: 741777 Which of the following situations would create a possible errors and omissions liability to the producer? A) During the sale of a replacement health policy, the producer tells an applicant that the new policy will cover expenses ordinarily paid by Medicare. B) The producer informs the insurer that he has serious doubts about the applicant’s insurability. C) The producer fails to inform the client that her policy is being canceled at the end of the year. D) The producer fails to return phone calls from the client. Question #55 of 900 Question ID: 742576 Arthur incurs total hospital expenses of $8,300. His major medical policy includes a $500 deductible and an 80%/20% coinsurance feature. If this is the first covered expense he has incurred this year, how much will Arthur have to pay https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 17/279 6/24/23, 12:27 AM QBank toward his hospital bill? A) $1,800 B) $2,060 C) $5,900 D) $2,160 Question #56 of 900 Question ID: 885172 Which of the following statements about point-of-service (POS) plans is TRUE? A) A POS plan does not require a primary care physician to manage in-network care. B) Out-of-network care is billed on a prepaid basis. C) A POS plan allows a subscriber to access care both in-network and out-of- network. D) A POS plan does not include the use of a deductible or coinsurance. Question #57 of 900 Question ID: 741838 With individual life insurance, all of the following would factor into the premium rate EXCEPT A) the insurer’s interest earnings B) the applicant’s mortality C) the insurer’s expenses D) the insurer’s reserves Question #58 of 900 Question ID: 742367 Marco’s medical expense policy states that it will pay a flat $75 per day for room and board for each day of hospitalization. The policy pays benefits on which basis? A) Reimbursement https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 18/279 6/24/23, 12:27 AM QBank B) Service C) Indemnity D) Invoice Question #59 of 900 Question ID: 742079 A life insurance policyowner has all of the following rights EXCEPT A) the right to take a policy loan B) the right to name a beneficiary irrevocably C) the right to change the grace period D) the right to change the mode of premium payment Question #60 of 900 Question ID: 885067 An insurers’ operating costs are known as A) the rate of costing B) the relativity load C) the interest dollars D) the expense load Question #61 of 900 Question ID: 742469 Naomi is killed in an auto accident before she is able to pay the semiannual $80 premium on her $30,000 accident policy. Under the policy’s unpaid premium provision, her beneficiary will receive a check for A) $29,920 B) $0 C) $30,000 D) $29,840 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 19/279 6/24/23, 12:27 AM QBank Question #62 of 900 Question ID: 741655 Jake and Sue signed a contract in which Sue agreed to pay half of the life insurance proceeds to Jake if he murdered her estranged spouse. The contract between Jake and Sue would not be enforceable in court because A) the contract lacks a legal purpose B) Jake and Sue are not considered competent parties C) Jake could not legally accept the contract D) the contract lacks consideration Question #63 of 900 Question ID: 742522 A waiver of premium provision may be included with which kind of health insurance policy? A) Disability income B) Hospital indemnity C) Major medical D) Basic medical Question #64 of 900 Question ID: 742703 Joni is covered under a dental insurance plan that requires her to annually pay the first $200 of dental expenses (other than routine semiannual examinations and cleanings, which are covered in full), at which point the plan reimburses her for 80% of the cost of routine care. Joni is most likely covered under A) a comprehensive plan B) a capitation plan C) a dental health maintenance organization D) an exclusive provider organization Question #65 of 900 Question ID: 742171 Group life insurance plans in which employees contribute to the overall premium are called https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 20/279 6/24/23, 12:27 AM QBank A) noncontributory B) group underwritten C) contributory D) participatory Question #66 of 900 Question ID: 742433 Thomas, an insured, submits a claim and a proof of loss for medical expenses covered by his major medical policy. According to the time of payment of claims provision, how soon must the company pay the claim? A) Within 30 days B) Within 90 days C) Immediately D) Within 150 days Question #67 of 900 Question ID: 1353155 Offering insurance or annuities as an inducement to the public to purchase property or services with a separate charge is known as A) discrimination B) replacement C) free insurance D) coercion Question #68 of 900 Question ID: 742820 Which of the following may be used as a reason to cancel a long-term care policy? A) Age of the insured B) Nonpayment of premiums C) Deterioration of the insured’s mental health https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 21/279 6/24/23, 12:27 AM QBank D) Deterioration of the insured’s health Question #69 of 900 Question ID: 1303188 Jessica has a Roth IRA. Which of the following statements is TRUE? A) She may not use any distributions toward the purchase of her first home. B) Her IRA contributions are not tax deductible. C) Distributions before age 72 are assessed an excise tax. D) Her IRA distributions are taxed. Question #70 of 900 Question ID: 741771 A consumer may make a written request for complete disclosure of the nature and scope of an investigative report regarding her credit history. The disclosure must be made within A) 10 days B) 5 days C) 15 days D) 30 days Question #71 of 900 Question ID: 885089 While Debby was out of the country on vacation, she forgot to pay her life insurance premium, missed the grace period and wants to reinstate her policy. Which of the following is NOT a condition of reinstatement? A) application for reinstatement (within 3 years of lapse) B) payment of all past due premiums, plus interest C) assignment of a new beneficiary D) satisfactory evidence of insurability https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 22/279 6/24/23, 12:27 AM QBank Question #72 of 900 Question ID: 742405 An accident and health insurance policy may not be rescinded, except for fraud, after it has been in effect for A) 4 years B) 1 year C) 6 months D) 2 years Question #73 of 900 Question ID: 742559 Ron is eligible for full death, retirement, and disability benefits under Social Security. His work status is A) fully insured B) currently insured C) completely insured D) partially insured Question #74 of 900 Question ID: 742536 Harry, the owner of a convenience store, is the insured under a business overhead policy. Were Harry to become disabled, the policy would cover all of the following EXCEPT A) utility bills B) the store manager’s salary C) the rent D) Harry’s salary Question #75 of 900 Question ID: 885187 All of the following are requirements which were enacted as a result of HIPAA EXCEPT A) enforcing the privacy of individuals’ health information https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 23/279 6/24/23, 12:27 AM QBank B) ensuring the portability of group insurance coverage C) eliminating pre-existing conditions for all eligible individuals D) creating various mandated benefits for pregnant women Question #76 of 900 Question ID: 742334 Exclusions for pre-existing conditions help to avoid A) adverse selection against an insurer B) claims for long hospital confinements C) more complicated underwriting procedures D) insuring persons who are accident prone Question #77 of 900 Question ID: 742316 At a certain point in time, an employee will have a nonforfeitable right to the money contributed to a pension plan by the employer. This right is known as A) a proprietary interest B) a possessive interest C) a vested interest D) a contributory interest Question #78 of 900 Question ID: 885086 The provision that allows a person to select the premium payment mode, settlement options, borrow cash values that have accumulated or cancel the policy is known as A) the ownership rights provision B) the insuring agreement C) the assignment provision D) the modifications provision https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 24/279 6/24/23, 12:27 AM QBank Question #79 of 900 Question ID: 742004 John, age 55, owns a whole life policy with a face amount of $100,000 for which the annual premium is $1,000. John explains to his agent that he lost his job and cannot afford his $1,000 annual premium but still desires to have life insurance to age 100. What nonforfeiture option could John’s agent recommend to him? A) There are no options, since John can’t afford to pay the premium anymore B) Modified endowment contract C) Reduced paid-up policy D) Reduced premium Question #80 of 900 Question ID: 972079 Which of the following situations regarding covered employees is NOT considered a qualifying event? A) Santino’s son who no longer meets their dependent status. B) Doreen becomes legally separated from her spouse. C) Dmitri’s hours are reduced. D) Laurie becomes eligible for Medicaid. Question #81 of 900 Question ID: 742515 Which of the following statements pertaining to disability income policies is NOT correct? A) Benefits are payable as specified, weekly, or monthly. B) In some policies, the (residual) benefit payments are tied directly to the percentage of actual earnings lost. C) Benefits may be payable for disabilities resulting from either accidental injury or sickness, and there are no exclusions. D) Some policies use an own occupation definition of total disability. Question #82 of 900 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 25/279 6/24/23, 12:27 AM QBank Question ID: 885185 Prior to the Affordable Care Act, according to HIPAA, a newly hired worker was not subject to a waiting period if she had less than how many days between jobs with no health insurance coverage? A) 36 days B) 93 days C) 63 days D) 39 days Question #83 of 900 Question ID: 885183 Which of the following was the primary purpose of the Health Insurance Portability and Accountability Act of 1996 (HIPAA)? A) To provide government subsidies for indigents’ insurance B) To require employers to provide medical coverage for all employees C) To expand coverage eligibility to many people that are uninsured D) To establish government benefits for otherwise uninsurable individuals Question #84 of 900 Question ID: 742402 An individual health insurance policyholder can change the beneficiary of the policy under what circumstances? A) The policyholder must pay a $500 transfer fee. B) Beneficiaries can never be changed. C) The change can be made without the beneficiary’s consent, unless the original designation is irrevocable. D) The change must be submitted to the insurance company’s approval board. Question #85 of 900 Question ID: 742613 Which of the following statements about preferred provider organizations is NOT correct? A) Physicians who are part of a PPO are in private practice. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 26/279 6/24/23, 12:27 AM QBank B) They operate on a fee-for-service basis. C) They offer health care coverage to low-income individuals. D) They offer health care services to their members at discounted rates that are negotiated in advance. Question #86 of 900 Question ID: 741641 In an insurance transaction, licensed agents legally represent which of the following? A) Themselves B) The applicant and the insured C) The insurer D) The state insurance department Question #87 of 900 Question ID: 742355 Carson is a driller on an oil rig. While coverage through his group plan is adequate, he wants an inexpensive way to continue at least some of his income and possibly pick up some of the expenses his group plan may not cover in the event he is injured. Which of the following policies would best meet his objectives? A) Disability income insurance B) Accident-only insurance C) Accidental death and dismemberment coverage D) Long-term care insurance Question #88 of 900 Question ID: 741691 When meeting with an applicant for health insurance, an insurance producer notices a pack of cigarettes in the applicant’s shirt pocket, even though the applicant says he has been a nonsmoker for 10 years. Which of the following statements best describes the producer’s responsibility? A) The producer should ignore the fact, since it is the insurer’s responsibility to identify this information. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 27/279 6/24/23, 12:27 AM QBank B) The producer should insist that the applicant change his response to the question on the application. C) The producer should provide an agent’s report to the insurer explaining what she observed. D) The producer should change the answer on the application after the appointment. Question #89 of 900 Question ID: 741708 Which of the following statements regarding how to fix a mistake in an insurance application is NOT correct? A) If the agent fixes the mistake in the application, the applicant must initial the correction. B) If the insurer discovers a mistake, it usually returns the application to the agent who, with the applicant, corrects the application. C) If the insurer discovers an incorrect application before the policy is issued, the insurer may cancel the contract. D) Under no circumstances may an agent correct information on an insurance application once it has been completed by the applicant. Question #90 of 900 Question ID: 885204 Victoria currently as a Medicare Advantage plan. Should her agent sell her a Medicare supplement policy? A) Yes, it is her agent’s responsibility to make sure she has the coverages she needs. B) No, her agent already provides her with all the insurance she requires. C) Yes, if her agent does not offer to sell her a Medicare supplement policy, the agent could be sued under her Errors and Omissions policy. D) No, it is illegal for anyone to sell a Medicare supplement policy to someone who is already in a Medicare Advantage plan (Medicare Part C). Question #91 of 900 Question ID: 885175 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 28/279 6/24/23, 12:27 AM QBank Which of the following statements regarding group health insurance is FALSE? A) The eligibility period follows the probationary period. B) An employee may enroll in a group health plan at any time during the year without having to prove evidence of insurability. C) In some cases, union workers as a class may be excluded from coverage. D) Coverage must be made available to dependents, other than spouses, up to a certain age. Question #92 of 900 Question ID: 742423 All individual health insurance policies must include a notice of claim provision requiring that a written notice of claim must be given to the insurer within how long after the occurrence of the loss? A) 10 days B) 20 days C) 24 hours D) 5 days Question #93 of 900 Question ID: 741928 In contrast to traditional whole life insurance policies, with variable life insurance products A) premiums are invested in an insurer’s general account B) the insurer assumes the investment risk C) contract cash values are not guaranteed D) investments match the insurer’s contractual guarantees and liabilities Question #94 of 900 Question ID: 742143 Individual life insurance policies can exclude benefits if death occurs as a result of any of the following EXCEPT A) suicide, if within 5 years from the date of policy issue https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 29/279 6/24/23, 12:27 AM QBank B) specified hazardous occupation, if within 2 years from the date of policy issue C) aerial flight (except as a fare-paying passenger) D) war Question #95 of 900 Question ID: 742542 Under Social Security, a fully insured worker is A) a worker who has been working for 1 year B) a worker who pays her premiums monthly for the coverages selected C) a worker who has paid in to Social Security for 10 years, earning 40 credits D) a worker who has a death benefit of $1 million Question #96 of 900 Question ID: 742279 When a cash value life insurance policy is converted into an annuity in a nontaxable transaction, the event is generally known as A) a pension enhancement B) a 1035 exchange C) a rollover D) a modified endowment Question #97 of 900 Question ID: 742133 If an individual life insurance policy contains a spendthrift provision, the policy can prohibit the beneficiary from taking all of the following actions EXCEPT A) borrowing against the policy B) surrendering the policy for cash C) receiving equal installment payments under the policy D) exchanging the policy https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 30/279 6/24/23, 12:27 AM QBank Question #98 of 900 Question ID: 742486 Which of the following statements characterizes a cancelable policy? A) The insurer may cancel the policy at any time. B) The insurer may not cancel the policy because of the insured’s retirement. C) The insurer may cancel the policy only at the end of the term. D) The insurer may not cancel the policy because of the insured’s age. Question #99 of 900 Question ID: 741889 Which of the following statements regarding basic forms of whole life insurance is NOT correct? A) Generally, straight life premiums are payable, at least annually, for the duration of the insured’s life. B) A single premium life policy is purchased with a large onetime-only premium. C) The owner of a 30-pay life policy will owe no more premiums after the 30th year the policy is in force. D) Limited payment life provides protection only for the years during which premiums are paid. Question #100 of 900 Question ID: 741892 Jane, age 35, has just purchased a 20-pay whole life policy. When she turns 55, she will A) cease paying premiums B) have a fully matured policy C) receive the policy’s face amount benefit D) no longer be covered by the policy Question #101 of 900 Question ID: 742373 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 31/279 6/24/23, 12:27 AM QBank When compared to the premiums for major medical expense coverage policies, the premiums for dread disease policies are typically A) about the same B) identical C) higher D) lower Question #102 of 900 Question ID: 742426 How many days from the date of loss does the insured have to submit a completed claim form to the insurer? A) 20 days B) 10 days C) 90 days D) 60 days Question #103 of 900 Question ID: 741750 An attending physician’s statement (APS) requested by the underwriting department will normally contain all of the following applicant information EXCEPT A) a Medical Information Bureau report B) copies of the applicant’s medical records with the physician C) the applicant’s medical history and treatment as known to the physician D) the applicant’s current medical condition as known to the physician Question #104 of 900 Question ID: 885119 A master policy is issued to the sponsoring group and the policyholder is A) the producer B) the employer https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 32/279 6/24/23, 12:27 AM QBank C) the insurer D) the employee Question #105 of 900 Question ID: 742819 When marketing long-term care insurance, the insurer or agent must consider A) if the insured is likable B) possible referral business C) the commission amount D) the suitability of the purchase Question #106 of 900 Question ID: 741714 An agent may do all of the following to comply with disclosure notification rules EXCEPT A) provide a copy of the information disclosure procedures form to the state Department of Insurance B) obtain the applicant’s signature on the disclosure form authorizing the insurer to gather and disseminate information C) answer any questions the applicant may have regarding the insurer’s information gathering and dissemination practices D) notify the applicant of the insurer’s information disclosure procedures with a written form Question #107 of 900 Question ID: 742671 A qualifying event covers all of the following EXCEPT A) Divorce of the covered employee from the covered employee’s spouse B) Reduction in work hours for the covered employee C) Medicaid eligibility for the covered employee https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 33/279 6/24/23, 12:27 AM QBank D) Bankruptcy of the employer Question #108 of 900 Question ID: 742218 Which of the following statements regarding deferred annuities is NOT correct? A) They typically have a surrender charge that is assessed with contract surrender during the first 2 to 12 years or more. Typically up to 10% of the contract value can be withdrawn free of surrender charge in any 1 year. B) The owner is not required to annuitize the contract. C) They may be funded with a single premium payment or with periodic premium payments. D) They generally permit contract owners to withdraw a specified percentage annually, tax-free and without a surrender charge. Question #109 of 900 Question ID: 741577 An individual who recruits agents to sell insurance within a certain geographical area is A) a career agent B) a broker C) a special agent D) a general agent Question #110 of 900 Question ID: 742497 Elimination (waiting) periods in disability income policies are designed to A) help keep premium rates at a profitable level B) eliminate claims for long-term disabilities C) specify a limited period of time at the start of disability when benefits are not payable https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 34/279 6/24/23, 12:27 AM QBank D) generally last for 1 year Question #111 of 900 Question ID: 742386 Excepted benefits are not included as minimum essential coverage. Which of the following is NOT an excepted benefit? A) Workers’ compensation insurance B) Medicare C) Disability income insurance D) Accident-only insurance Question #112 of 900 Question ID: 1337821 Regarding replacement, which of the following statements is NOT true? A) The applicant must sign a Notice Regarding Replacement at the time of application. B) The replacing insurer must notify, in writing, the existing insurer of the proposed replacement. C) Replacement is illegal in this state. D) Replacement is prohibited when it is not warranted; it then becomes twisting. Question #113 of 900 Question ID: 742095 Which of the following is a required provision in all individual life insurance policies? A) Notice of claim B) Conversion C) Open enrollment D) Reinstatement https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 35/279 6/24/23, 12:27 AM QBank Question #114 of 900 Question ID: 656885 Which of the following situations illustrates a violation of the California insurance regulations related to AIDS testing? A) An insurer denies an applicant life insurance because he or she has been diagnosed as having AIDS. B) An applicant gives the insurer permission to inform his or her physician about the results of an AIDS test. C) An insurer informs a third party of an applicant's positive test result without first obtaining the applicant's written permission. D) An insurer receives informed consent in writing from the applicant before testing him or her for AIDS. Question #115 of 900 Question ID: 885061 Which of the following is a promise in exchange for an action? A) An aleatory contract B) A contract of adhesion C) A condition contract D) A unilateral contract Question #116 of 900 Question ID: 742510 Which of the following is NOT a component of a basic total disability plan? A) Indemnity benefit B) Elimination period C) Benefit period D) Probationary period Question #117 of 900 Question ID: 742614 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 36/279 6/24/23, 12:27 AM QBank All of the following groups may contract with PPOs EXCEPT A) insurance companies B) employers C) health insurance benefit providers D) government programs Question #118 of 900 Question ID: 742191 Which of the following statements about the group conversion option is NOT true? A) The member can convert to any type of insurance except term insurance. B) If the member dies during the conversion period, the insurer will pay the death benefit in full. C) Group life policies must include a conversion privilege. D) The option guarantees the member that coverage will continue for 60 days. Question #119 of 900 Question ID: 742007 Denise, age 52, has a straight whole life policy and decides to stop paying premiums and take a paid-up policy for a reduced amount. Her paid-up policy will be A) an annuity B) term insurance C) whole life D) any type of policy she selects Question #120 of 900 Question ID: 741834 A life insurance gross premium is A) interest plus expense less mortality B) net single premium plus mortality https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 37/279 6/24/23, 12:27 AM QBank C) net single premium plus expense D) mortality costs plus loading Question #121 of 900 Question ID: 742020 An individual life insurance policy must include all of the following EXCEPT A) an entire contract provision B) a 1-month grace period C) a table showing the annual loan values of the policy for at least 30 years D) an incontestability provision Question #122 of 900 Question ID: 1403196 Which of the following is usually covered by an individual major medical expense insurance policy? A) Injuries due to accidents B) Custodial care performed by a health care professional C) Losses that are covered by workers’ compensation D) Situations involving deliberate acts of the insured, such as self-inflicted injuries Question #123 of 900 Question ID: 741509 All of the following are characteristics of an insurable risk EXCEPT A) measurable B) affordable C) calculable D) intentional https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 38/279 6/24/23, 12:27 AM QBank Question #124 of 900 Question ID: 741896 Which of the following statements regarding current assumption whole life insurance is NOT correct? A) During a period of relatively high interest rates the premiums could be increased. B) Premium adjustments are usually made on an annual basis. C) It is also known as interest-sensitive whole life. D) During a period of relatively high interest rates the premiums could be reduced. Question #125 of 900 Question ID: 742062 The significance of a free-look provision is that it A) allows a life insurance policy to be issued without a physical examination B) provides life insurance policyholders with the right to return their policies for any reason within 10 days of delivery for a full refund of premiums C) is a special offer in which the policyholder receives the first 90 days of coverage for free D) means that the policyholder must be given access to the agent’s records Question #126 of 900 Question ID: 742370 A hospital indemnity insurance policy may be recommended to a client for all the following reasons EXCEPT A) the premiums are affordable B) the policy will pay the full amount of a hospital stay C) benefits are paid directly to the insured and may be used for any purpose D) the policy can be an ideal supplement to other health insurance Question #127 of 900 Question ID: 742170 If an employer group plan is contributory, most states require that at least A) 75% of the eligible employees participate https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 39/279 6/24/23, 12:27 AM QBank B) 50% of the eligible employees participate C) 85% of the eligible employees participate D) 65% of the eligible employees participate Question #128 of 900 Question ID: 742241 George and Virginia have an annuity that will provide benefits for George’s life and then continue to provide the same amount of benefits to Virginia as his survivor. What type of annuity did George set up? A) Joint life and survivorship annuity B) Joint life annuity C) Life annuity with period certain D) Temporary annuity certain Question #129 of 900 Question ID: 742381 Which of the following situations involves a loss that would typically NOT be excluded under a health insurance policy? A) The insured is injured with a self-inflicted injury. B) The insured is injured while vacationing in a state that is not her state of residence. C) The insured is injured in combat while serving in the military. D) The insured intentionally injures himself while committing a felony. Question #130 of 900 Question ID: 885105 The insurer is generally required to pay the death benefit claim within A) 60 days B) 45 days C) 90 days D) 30 days https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 40/279 6/24/23, 12:27 AM QBank Question #131 of 900 Question ID: 741765 What is the purpose of the Fair Credit Reporting Act? A) It guarantees that credit reports will remain confidential and not accessible to businesses that do not sell insurance. B) It protects credit companies during the course of their investigations. C) It requires consumer report agencies to adopt reasonable procedures when exchanging credit information. D) It prohibits insurance companies from obtaining reports on applicants from investigative agencies. Question #132 of 900 Question ID: 741861 Sophia has a $250,000 10-year convertible term policy and would like to convert it to a permanent policy. Her agent provides her with the following information. Which statement is NOT correct? A) A new application will not be required. B) Sophia will not have to provide evidence of insurability. C) The new premium will be based on either her original or her attained age. D) She may convert to the permanent policy for up to 12 months following the term policy’s expiration. Question #133 of 900 Question ID: 741741 Which of the following statements regarding risk factors is NOT correct? A) Kimberly’s job requires manual labor in a manufacturing plant. Betsy is an office supervisor who does no manual labor. Kimberly would probably be considered to have a higher disability risk than Betsy. B) Jill is 15 years younger than her supervisor and therefore poses a higher risk to an insurance company. C) Carlos, an office manager, would represent a lower disability risk to an insurance company than would Ezekiel, a foreman in a farm equipment factory. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 41/279 6/24/23, 12:27 AM QBank D) Bob and Gunesh both work for the same construction company. Bob is an auditor, and Gunesh is a diesel mechanic. Of the two, Bob would likely represent a lower risk to an insurance company. Question #134 of 900 Question ID: 885158 Identify the number of days the insured or insurer must do the following in this order: Notice of Claim, Claims Forms, Proof of Loss, Waiting Period for Sickness Claims upon Reinstatement. A) 10, 90, 15, 20 B) 15, 20, 10, 90 C) 20, 15, 90, 10 D) 10, 20, 15, 90 Question #135 of 900 Question ID: 742125 When the insured and the beneficiary in a life insurance policy die simultaneously, how must the proceeds of the policy be distributed? A) As if the insured had assigned the policy to the beneficiary B) As if the insured had designated another beneficiary C) As if the beneficiary had survived the insured D) As if the insured had survived the beneficiary Question #136 of 900 Question ID: 742076 Which of the following phrases best describes a life insurance policy under the entire contract clause? A) The policy document plus riders and the initial premium deposit receipt B) The basic policy document only C) The policy, any amendments or riders, and a copy of the signed application D) The policy document plus riders as agreed to by the applicant https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 42/279 6/24/23, 12:27 AM QBank Question #137 of 900 Question ID: 742097 An insured may apply for reinstatement of a life policy within what period of time after voluntarily surrendering the life policy? A) Within 6 months B) Within 1 year C) Within 2 years D) Never Question #138 of 900 Question ID: 742830 Megan is the sole proprietor of a bookstore and paid $5,000 last year in premiums for medical expense coverage. She incurred $6,000 in medical expenses and was reimbursed for these costs under her health plan. Which of the following statements is CORRECT? A) Megan must include the benefits received from her health plan in income. B) Megan must include part of the benefits received from her health plan in income. C) Megan can take a partial deduction for the amount of premiums paid. D) Megan can take a deduction for the entire amount of premiums paid. Question #139 of 900 Question ID: 741888 Which of the following $50,000 limited-pay life policies will have the highest premium for an applicant who is age 30? A) 30-pay life policy B) Life paid-up at age 65 C) 20-pay life policy D) 25-pay life policy Question #140 of 900 Question ID: 742050 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 43/279 6/24/23, 12:27 AM QBank What action will an insurer take if it learns that a deceased life insurance policyholder was actually older than the insurer had believed? A) The face amount will be increased to reflect the proper amount based on the correct age. B) The face amount will be lowered to reflect the proper amount based on the correct age. C) The insurer cannot take any action. D) The face amount will be paid to the beneficiary and the employer will be required to pay the additional premiums owed. Question #141 of 900 Question ID: 885124 Which of the following statements regarding conversion is TRUE? A) The converted policy must be term insurance. B) Conversion must be within 45 days from the date coverage is lost. C) The converted policy may be any amount the insured chooses. D) Premiums are based on the attained age at conversion. Question #142 of 900 Question ID: 742243 Which of the following statements does NOT describe a fixed annuity? A) It is invested in the insurer’s general account. B) It provides a guaranteed rate of interest. C) It guarantees income payments will last the annuitant’s lifetime. D) It will produce income benefits that are adjusted to keep pace with inflation. Question #143 of 900 Question ID: 742283 Which of the following statements regarding the estate tax treatment of life insurance owned by the insured at the insured’s death is NOT correct? https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 44/279 6/24/23, 12:27 AM QBank A) Life insurance death benefit proceeds are included in the insured’s estate for estate valuation purposes if the policy was owned by the decedent. B) Life insurance that is owned by the insured will avoid estate tax inclusion as long as ownership is transferred to another party at least 1 year before the insured’s death. C) An irrevocable life insurance trust is a common device used to keep life insurance out of the insured’s estate. D) The insured could keep death benefit proceeds out of his estate by making another party the owner of the policy. Question #144 of 900 Question ID: 742537 Which of the following statements best describes the purpose of key-person or key-executive disability insurance? A) It indemnifies the business to cover expenses and losses incurred when a key person is disabled. B) It indemnifies the business to cover losses when an owner or partner dies. C) It provides tax-favored disability income benefits to a key person should she become disabled. D) It provides health benefits to a group of employees. Question #145 of 900 Question ID: 741693 Each application for life insurance requires the signature of all of the following EXCEPT A) the agent B) the policyowner, if different from the insured C) the proposed insured D) the beneficiary Question #146 of 900 Question ID: 741599 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 45/279 6/24/23, 12:27 AM QBank In an insurance transaction, whom does a licensed agent legally represent? A) The National Association of Insurance Commissioners B) The insurer C) The applicant D) The state insurance department Question #147 of 900 Question ID: 885107 All of the following are life insurance policy provisions EXCEPT A) assignment B) modifications C) payment of claims D) notice of claim Question #148 of 900 Question ID: 741505 Which of the following is NOT a characteristic of an insurable risk? A) Noncatastrophic B) Premeditated C) Affordable D) Homogenous Question #149 of 900 Question ID: 741589 Direct response marketing is A) sold through insurance agents B) outlawed in many states C) conducted through ads in the mail, in magazines, and on the internet https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 46/279 6/24/23, 12:27 AM QBank D) only available to groups Question #150 of 900 Question ID: 742256 Premiums paid into a variable annuity, after deduction for expenses, are applied regularly to purchase A) stock units B) accumulation units C) variable units D) annuity units Question #151 of 900 Question ID: 742314 Which of the following statements about the tax advantages of a qualified retirement plan is NOT true? A) Earnings of a qualified retirement plan are exempt from employees’ current income taxation. B) Employer contributions to qualified plans are deductible business expenses. C) Earnings from a qualified retirement plan are taxable when paid as a benefit. D) Employees’ contributions to retirement plans are included in ordinary income. Question #152 of 900 Question ID: 741880 Darlene owned a $100,000 whole life policy that had a $75,000 cash value when she died at the age of 75. The amount paid by the insurance company as a death benefit was A) $75,000 B) $100,000 C) nothing D) $175,000 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 47/279 6/24/23, 12:27 AM QBank Question #153 of 900 Question ID: 741511 All of the following are elements of an insurable risk EXCEPT A) the loss must be predictable B) the loss must have a determinable value C) the loss must be catastrophic D) the loss must be the result of chance Question #154 of 900 Question ID: 742244 Annuity buyers who want their product to be supported by the insurers’ general accounts would most likely be looking for interest returns that A) can compete with equity investment returns B) will keep pace with inflation C) can go up but can never go down D) are guaranteed never to be less than the rate specified in the contract Question #155 of 900 Question ID: 741575 All of the following are examples of social (governmental) insurance EXCEPT A) workers’ compensation B) Medicare C) fraternals D) Medicaid Question #156 of 900 Question ID: 656888 California's HICAP, overseen by the California Department of Aging, provides all of the following services EXCEPT: A) community education. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 48/279 6/24/23, 12:27 AM QBank B) legal services. C) counseling. D) medical assistance. Question #157 of 900 Question ID: 741522 All of the following are considered to be insurers EXCEPT A) an association B) a group of employees enrolled in an insurance plan C) an insurance company D) a fraternal organization Question #158 of 900 Question ID: 742784 A long-term care policy will cover all of the following EXCEPT A) custodial care B) emergency hospital care C) home health care D) nursing care Question #159 of 900 Question ID: 742063 A life insurance policy must give the policyowner at least how many days after delivery of the policy to cancel the policy? A) 31 days B) 10 days C) 15 days D) 20 days https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 49/279 6/24/23, 12:27 AM QBank Question #160 of 900 Question ID: 742541 Which of the following statements regarding Social Security disability is NOT true? A) A spouse caring for the disabled worker’s unmarried child under age 16 or disabled before age 22 receives a benefit equal to 50% of the worker’s PIA. B) A disabled worker receives benefits equal to her primary insurance amount. C) The total family benefit is capped by a family maximum benefit amount based on the worker’s average earnings. D) Benefits are based on the U.S. average monthly income, indexed for inflation. Question #161 of 900 Question ID: 742582 Major medical policies that pay 100% of covered expenses above a specified amount and after the insured’s deductible contain what kind of a provision? A) Stop-loss B) Maximum benefit C) Blue sky D) Umbrella Question #162 of 900 Question ID: 742630 A formal technique designed to evaluate the clinical necessity, appropriateness, or efficiency of health care services, procedures, or settings is known as A) retrospective review B) external review C) adverse selection D) utilization review Question #163 of 900 Question ID: 741837 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 50/279 6/24/23, 12:27 AM QBank The loaded premium is A) the net premium B) the base premium C) the modified premium D) the gross premium Question #164 of 900 Question ID: 742600 Which of the following statements regarding persons participating in an HMO is CORRECT? A) They pay for health care services as they are incurred. B) They pay a fixed periodic fee whether or not health care services are used. C) They pay for health care services as they are incurred, at a rate discounted for the HMO. D) They negotiate health care service fees with contracted HMO providers. Question #165 of 900 Question ID: 742219 Which of the following statements regarding an immediate annuity is NOT correct? A) An immediate annuity has a long accumulation period. B) A single premium immediate annuity is designed to make its first benefit payment to the annuitant at the first payment after a delay of 1 payment interval from the date of purchase. C) An immediate annuity is funded with a single payment. D) An immediate annuity must make its first payment within 12 months from the purchase date. Question #166 of 900 Question ID: 742714 Routine dental services include all of the following EXCEPT A) fluoride treatment https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 51/279 6/24/23, 12:27 AM QBank B) gum surgery C) cleaning D) x-rays Question #167 of 900 Question ID: 742391 Which of the following statements about the Affordable Care Act is TRUE? A) The Affordable Care Act is administered through Social Security. B) The health care law was passed by state legislation and only exists in certain states. C) The health care law includes reforms to the affordability, availability, and quality of health insurance. D) The law was created specifically to provide affordable care for senior citizens. Question #168 of 900 Question ID: 742317 Which of the following best describes the concept of vesting, with respect to qualified retirement plans? A) The age at which an employee must begin to withdraw from retirement plans B) The right of an employee’s spouse to be included in the employee’s qualified plan benefits C) The time when an employee meets eligibility requirements for plan participation D) An employee’s right to funds or benefits contributed by an employer Question #169 of 900 Question ID: 741503 All of the following are characteristics of an insurable risk EXCEPT A) loss must be intentional B) loss must be accidental C) loss must not be catastrophic https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 52/279 6/24/23, 12:27 AM QBank D) loss must be measurable Question #170 of 900 Question ID: 742752 A Medicare supplement policy must offer coverage of Medicare Part A–eligible expenses for hospitalization A) for the first year B) from days 61 through 90 C) for the length of the illness D) from days 1 through 90 Question #171 of 900 Question ID: 885145 Debbie is concerned that her health insurance coverage is inadequate. Which of the following is the best reason for her to purchase an indemnity-type medical expense policy? A) It will pay the difference between what her other insurance covers and her actual expenses. B) It will pay a specified per-day benefit. C) It will pay all or part of her deductible. D) It will pay a percentage of her coinsurance. Question #172 of 900 Question ID: 656897 An individual or corporation selling insurance that is underwritten by a company that is NOT licensed in California because the coverage cannot be obtained from an admitted insurer is known as a(an): A) broker. B) alien insurer. C) foreign insurer. D) surplus lines broker. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 53/279 6/24/23, 12:27 AM QBank Question #173 of 900 Question ID: 741987 Betty owns a universal life insurance policy that was issued with a $100,000 face amount and now has total death benefit protection of $110,000. Several months ago she borrowed $15,000 from the policy. The outstanding loan balance (including interest) is $15,200. If Betty dies today, what will be the amount of the death benefit? A) $94,800 B) $95,000 C) $100,000 D) $110,000 Question #174 of 900 Question ID: 742184 The period of time a new employee has to wait before she may enroll in a group life insurance plan is called A) a discrimination period B) an elimination period C) an enrollment period D) a probationary period Question #175 of 900 Question ID: 742622 A point-of-service (POS) plan is most like a health maintenance organization (HMO) in which of the following ways? A) Both use a primary care physician. B) Both are generally nonprofit organizations. C) Both feature providers who are employees of the plan itself. D) Both allow subscribers to use outside providers. Question #176 of 900 Question ID: 742447 The entire contract provision of a disability income policy defines the contract to include all the following EXCEPT https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 54/279 6/24/23, 12:27 AM QBank A) the properly completed and signed application B) any riders the insurer may unilaterally add to the policy in the future C) the riders attached to the policy when it was issued D) the policy document Question #177 of 900 Question ID: 1303190 All of the following persons who have no employer retirement plan would be eligible to set up a traditional IRA EXCEPT A) Brent, age 40, a medical technician B) Miriam, age 26, a chemical engineer C) Edna, age 62, a retired nurse D) Jack, age 60, a plumber Question #178 of 900 Question ID: 741661 When negotiating a contract of insurance, the parties make no attempt to conceal or disguise important facts or deceive each other. The contact is said to be one of A) offer and acceptance B) utmost good faith C) value D) sharing Question #179 of 900 Question ID: 741715 Which of the following would be an authorized method of handling an initial premium payment? A) Provide the applicant with a signed receipt of the appropriate type (binding or conditional) B) Tell the applicant that written receipts are only required for cash transactions C) Advise the applicant that a written receipt will be sent from the insurer https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 55/279 6/24/23, 12:27 AM QBank D) Assure the applicant that a written receipt will be provided at policy delivery Question #180 of 900 Question ID: 742588 Which of the following items is NOT typically covered under a medical expense policy’s miscellaneous expense benefit? A) Use of the operating room B) Surgeon’s fees C) X-rays D) Laboratory fees Question #181 of 900 Question ID: 742078 Which of the following is stated in the consideration clause of a life insurance policy? A) The insured’s general health condition B) The amount and frequency of premium payments C) The insured’s risk classification D) Benefits payable upon the insured’s death Question #182 of 900 Question ID: 742347 An accident-only policy would pay for A) expenses related to cancer B) hospitalization due to a heart attack C) expenses related to HIV D) necessary medical care for dismemberment due to a motorcycle accident Question #183 of 900 https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 56/279 6/24/23, 12:27 AM QBank Question ID: 741998 Arnold buys a $25,000 participating whole life policy. He has a definite need for more life insurance but believes he cannot afford it. Which of the following dividend options would help to solve this problem automatically? A) Taking dividends in cash B) Using dividends to buy paid-up additions C) Leaving dividends to accumulate at interest D) Applying dividends against premium payments Question #184 of 900 Question ID: 742471 Which of the following provisions is optional in an individual health insurance policy? A) Unpaid premium B) Entire contract C) Grace period D) Change of beneficiary Question #185 of 900 Question ID: 1304956 Oral surgery, braces, and implants are all examples of what kind of dental service? A) Routine B) Elective C) Major D) Preventive Question #186 of 900 Question ID: 741484 Which of the following statements regarding insurance is NOT true? A) All types of insurance are implemented through a contractual agreement between the insurance owner and the insurer. https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 57/279 6/24/23, 12:27 AM QBank B) All types of insurance indemnify the insured against financial loss. C) All types of insurance are based on the law of large numbers. D) There are no physical hazards in life and health insurance. Question #187 of 900 Question ID: 885098 Tina’s grandparents purchased a $250,000 universal life insurance with the intent to permanently transfer ownership to her when she turned 21. What is that transfer of rights known as? A) ownership rights B) absolute change of beneficiary C) an absolute assignment D) a collateral assignment Question #188 of 900 Question ID: 741802 Which of the following would most likely NOT be a reason to purchase a life insurance policy for the purpose of accumulating cash? A) Planning for retirement B) Going back to college C) Going on a shopping spree D) Purchasing a new water heater Question #189 of 900 Question ID: 741482 With regard to insurance, risk can be defined as A) uncertainty regarding financial gain B) certainty regarding financial gain C) certainty regarding loss D) uncertainty regarding loss https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 58/279 6/24/23, 12:27 AM QBank Question #190 of 900 Question ID: 885130 The owner of an annuity contract possesses all the following rights EXCEPT A) to designate the contract’s annuitant and the beneficiary B) to advance the deferred annuity’s starting date to an earlier date than that which is stated in the contract at issue C) to determine the annuity income settlement option even when the annuitant is another person D) to cancel a deferred annuity at any time and receive its full cash value Question #191 of 900 Question ID: 742398 Smith and Jones Insurance has totally revised its individual health insurance policy. Tamika likes the coverage she already has and is concerned about the changes. She contacts the producer who sold her the policy, who tells her that A) her policy will not be affected by the changes B) under the entire contract provision of her policy, the company has the right to make changes with 30 days’ notice C) rising health care costs have necessitated the changes, and her policy is still the best coverage available D) she has 6 months to accept the new policy Question #192 of 900 Question ID: 742764 People age 65 or older who enroll in Medicare Part B may also select Medigap coverage during A) a free-enrollment period B) a grace period C) a free-look period D) an open enrollment period https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 59/279 6/24/23, 12:27 AM QBank Question #193 of 900 Question ID: 742090 Which of the following statements pertaining to reinstating a life insurance policy is NOT correct? A) The cash surrender value must be forfeited to the insurer. B) All back premiums must be paid. C) The insured may need to provide evidence of insurability. D) Any outstanding policy loan must be repaid. Question #194 of 900 Question ID: 885205 Which of the following required provisions is INCORRECT? A) Medigap policies may not duplicate benefits provided by Medicare. B) Medicare supplement policies must have a 10-day free look period. C) Pre-existing conditions limitations may not last longer than six months from the date of issue. D) Medigap policies must be at least guaranteed renewable. Question #195 of 900 Question ID: 741912 Equity index life insurance policy values are determined by a specified participation rate and A) dividends from stocks in a particular stock market index B) flexible premium payments C) aggressive investment in the stock market D) indirect links to a stock market index Question #196 of 900 Question ID: 741932 Carlos and Jenna both work to support their family. To provide the same amount of life insurance protection in the event either dies, they should consider purchasing which of the following plans? https://www.kaplanlearn.com/education/test/print/79805571?testId=255598758 60/279 6/24/23, 12:27 AM QBank A) Family B) Joint life C) Family maintenance D) Juvenile Question #197 of 900 Question ID: 885161 Regarding the consideration clause, which of the following statements is INCORRECT? A) The consideration given by the insured are the statements made in the application. B) The consideration given by the insured is the promise to pay the premiums. C) Consideration is a necessary element of a legal contract. D) The insurer’s consideration is its promise to pay benefits. Question #198 of 900 Question ID: 741797 Which of the following is a liquid asset? A) Precious metals B) Farming equipment C) Precious gems D) Life insurance proceeds Question #199 of 900 Question ID: 885077 Which