WebCE Test 1, Questions and answers. 100% verified. Graded A. latest updates

WebCE Test 1, Questions and answers. 100% verified. Graded A. latest updates Abby lives in Ohio, where she is licensed as an insurance producer. She wants to apply for a nonresident license in Pennsylvania. Which ...

WebCE Test 1, Questions and answers. 100% verified. Graded A. latest updates Abby lives in Ohio, where she is licensed as an insurance producer. She wants to apply for a nonresident license in Pennsylvania. Which of the following conditions must she satisfy? She must move to Pennsylvania. She must surrender her Ohio license. She must be sponsored by a producer licensed in Pennsylvania. She must show her Ohio license is in good standing. - ✔✔she must show her Ohio license is in good standing An annuity settlement option with a life contingency is one that: pays annuity benefits for a specified period of time whether the annuitant lives or dies during that period. terminates annuity benefit payments if the annuitant is alive upon reaching his or her life expectancy continues annuity benefit payments for as long as the annuitant lives, even if it surpasses the annuitant's life expectancy requires there to be two or more annuitants who will receive annuity benefit payments before annuitization is permitted - ✔✔continues annuity benefit payments for as long as the annuitant lives, even if it surpasses the annuitants life expectancy Which group health plan gives employers the most flexibility in designing and arranging the plan's benefits? experience-rated plans community-rated plans government issue plans participating plans - ✔✔experience-rated plans An insurer typically considers all of the following during the underwriting process EXCEPT: medical history educational background medical exams lab tests - ✔✔educational background Before delivering a health insurance policy to a client, the producer alters the insuring clause in a way that he believes will benefit the insurance company. Which of the following statements is correct regarding this alteration? It is required of a diligent producer. It is prohibited by the entire contract provision. It is permitted only when it is in the insurer's best interests. It is prohibited unless the insured agrees to it in writing. - ✔✔it is prohibited by the entire contract provision Terry, Bella, Raul, and Paulina each own a whole life insurance policy. Which person would not be able to accelerate the benefits under their policy? Terry, who has cancer and a six-month life expectancy Bella, who has multiple sclerosis Raul, who became permanently disabled following a work accident Paulina, who was injured in a car accident but is expected to return to work in a month - ✔✔Paulina, who was injured in a car accident but is expected to return to work in a month Horace buys a Medicare supplement insurance policy but decides not to keep it. How many days does he have to return it for a full refund of the premium? 10 14 21 30 - ✔✔30 Medicare has a free-look period of 30 days All of the following statements about annuities are generally correct, EXCEPT: Annuities are not life insurance. Annuities are sold by life insurance agents and are issued by life insurance companies. The historic purpose of annuities is to create estates over a certain period. An annuity converts a sum of money into a series of income payments. - ✔✔the historic purpose of annuities is to create estates over a certain period If a retired worker's total combined income, including one-half of his or her Social Security benefit, exceeds a threshold amount, then up to what percentage of benefits exceeding the threshold are taxable? 0 percent 50 percent 85 percent 100 percent - ✔✔85% Gene is injured while on vacation. His employer's group disability plan pays benefits for over two years but reduces the amount paid by the benefits he receives under an individual disability policy. What kind of group coverage does Gene have? group short-term disability plan group occupational plan group long-term disability plan group partial disability plan - ✔✔group long-term disability plan these are occupational or non-occupational Nick's policy has been canceled and Nick has paid a premium that was not due. Under the cancellation provision, what must the insurer do? The insurer can apply the premium to other coverage owned by the insured. The insurer must return it to Nick. The insurer can keep it. Nothing unless the insured files a claim for the amount owed. - ✔✔the insurer must return it to Nick All of the following are prohibited insurer practices EXCEPT: accessing the MIB records on an applicant without the applicant's approval declining an application for life insurance based on genetic testing information obtained on the proposed insured. failing to notify a life insurance applicant that her application was declined because of information obtained in a credit report. investigating insurance applicants - ✔✔investigating insurance applicants The four shareholders of ABC Corporation each own a $1,000,000 interest in the company and enter into a stock redemption agreement. One of the shareholders dies six months later. All the following statements regarding this scenario are correct EXCEPT: The three remaining shareholders must negotiate the purchase of the deceased owner's interest from his estate. ABC Corporation will use the death benefit to buy the deceased owner's interest from his estate. Each of the surviving shareholders will then own a one-third share of ABC Corporation. The insurer will pay the $1,000,000 death benefit from the deceased owner's policy to ABC Corporation. - ✔✔the three remaining shareholders must negotiate the purchase of the deceased owner's interest from his estate An insured reports a claim for a covered loss more than three weeks after the loss occurred. What should the agent do when reporting the claim to the insurer? Send a notarized copy of the loss notice by registered mail to the insurer. Determine the reason for the delay and report it to the insurer. Advise the insured that the claim can no longer be paid. Backdate the report to the date of the loss. - ✔✔determine the reason for the delay and report it to the insurer normally, a covered loss must be reported in 20 days John's child must have his teeth straightened. His group dental policy covers 60 percent of orthodontic care, 100 percent of endodontic care, and 75 percent of periodontal care. What percentage of costs will the insurer pay for the child's care? 50 percent 60 percent 75 percent 100 percent - ✔✔60% A return of premium rider is generally available only with: term life insurance policies whole life insurance policies adjustable life insurance policies variable life insurance policies - ✔✔term life insurance return of premium rider pays the policyowner a sum equal to all or a portion of the premiums paid if the insured is still alive at the end of the policy period Which of the following is not contained in the Notice Regarding Replacement that must be given to health insurance applicants who are replacing their policies? a statement that pre-existing conditions may not be covered fully under the new policy a statement that waiting periods may apply under the new policy a statement that the applicant should consult his or her current insurer before replacing the policy a statement that premiums cannot be increased if a new policy is issued - ✔✔a statement that premiums cannot be increased if a new policy is issued Which sets the criteria for eligibility in an employer's group health plan? state insurer employer employees - ✔✔employer Edwina was injured in a car accident that resulted in both of her legs being amputated. What is the minimum amount of benefit that she will receive under her specified accident policy? $500 $1,000 $5,000 $10,000 - ✔✔$1,000 AD&D provides $1,000 for accidental death, $1,000 for double dismemberment, and $500 for single dismemberment BBC Insurers filed premium rates for its new line of variable products on January 15. Within how many days must the Commissioner approve or disapprove the rates? 25 30 45 60 - ✔✔30 At what point do insurers need to decide if insurable interest exists? when they issue a policy before the applicant submits an application before the insured dies before entering into the contract - ✔✔before entering into a contract Which of the following statements about the MIB Group, Inc. (MIB) is correct? Information obtained by the MIB is available to all physicians. Information submitted to it by one insurer is available for review by other insurers. It reports insurers' underwriting decisions regarding applicants. It compiles information on people's credit histories, lifestyles, and financial conditions. - ✔✔information submitted to it by one insurer is available for review by other insurers Which of the following is not an optional provision of health insurance policies issued in Pennsylvania? conformity with state statute unpaid premium change of occupation change of beneficiary - ✔✔change of beneficiary Joe, age 35, has a life-paid-up-at-65 limited payment life insurance policy. Under the policy's waiver of premium rider, if Joe becomes totally and permanently disabled, premiums will be waived: until Joe qualifies for Social Security disability benefits until the policy matures to age 65 for Joe's life - ✔✔to age 65 Group health insurance plans must cover all of the following EXCEPT: childhood immunizations unlimited inpatient treatment for alcoholism mammograms routine pap smears - ✔✔unlimited inpatient treatment for alcoholism As part of the field underwriting process for health insurance, producers must provide the following types of information to applicants EXCEPT: the applicant's MIB report a buyer's guide a policy summary a notice of information practices - ✔✔the applicant's MIB report Which of the following does NOT fall within the definition of a life insurance advertisement? a radio announcement about a life insurer's products a memo from an insurer's president to employees a print article designed to create consumer interest in a life insurer a sales presentation by a life insurer's producer - ✔✔a memo from a insurer's president to employees To be considered totally disabled under a disability income policy, the insured must be unable to perform all of the substantial and material duties of his or her regular occupation for how many months after a loss begins? 6 12 18 24 - ✔✔24 months (2 years) If an insurer decides to cancel a health insurance policy because the policyowner did not pay a premium, how much notice must it give the policyowner before doing so? 3 days 10 days 30 days 45 days - ✔✔10 days What is a terminally ill person who sells his or her life insurance policy through a viatical settlement known as? the viator the viatical settlement purchaser the viatical settlement provider the viatical broker - ✔✔the viator Which statement about modified premium whole life insurance is NOT correct? It does not build cash value. It charges lower premiums in the early policy years. At the end of the initial period, the premium increases and stays at the new level for the life of the policy. It is good for people who want the guarantees of whole life insurance and lower early premiums. - ✔✔it does not build cash value Although Medicare Part A covers home health care, it does NOT cover: part-time or intermittent skilled care managed care durable medical equipment and supplies home health aide services - ✔✔managed care Part C offers managed care through insurance companies ABC Insurers issues both fixed and variable annuities. How many separate accounts must it maintain? one two three five - ✔✔one Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in Pennsylvania? failing to promptly acknowledge communications about claims failing to promptly settle a claim for which liability is uncertain appealing from an arbitration award in favor of an insured to compel the insured to accept a lower settlement failing to affirm or deny coverage within a reasonable time after completing a claim investigation - ✔✔failing to promptly settle a claim for which liability is uncertain Which statement about the conversion provision in group health insurance policies is correct? An employee must provide evidence of insurability to convert to an individual policy. An employee must complete an application and pay the first premium within six months after the date employment is terminated. A person will not have the right to convert a policy if it was terminated due to nonpayment of premium. A person must prove that he or she was insured under the group policy for at least one year before termination. - ✔✔a person will not have the right to convert a policy if it was terminated due to nonpayment of premium Which approach to paying disability benefits is most common in group policies? flat amount approach percent-of-earnings approach totality of income approach direct approach - ✔✔percent-of-earnings approach Agent Hanson is meeting with a prospect to discuss whether she should purchase a variable life insurance policy. Before making any recommendations, Agent Hanson must attempt to obtain which of the following types of information from the prospect? information about the prospect's financial status information about the prospect's marital status information about the prospect's hobbies and activities information about the prospect's family - ✔✔information about the prospect's hobbies and activities When underwriting an individual disability income policy, an insurer will NOT typically consider: occupation age and sex education level income - ✔✔education level Larry, Brian, Susan, and Jennifer just started working for AllPro Insurance Company in Pennsylvania. Based on their job descriptions below, which of them is NOT acting as a producer? Larry, who receives insurance applications from the public Brian, who is a vice president in AllPro's human resources