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South Carolina Life and Health Insurance Final
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The branch of dentistry which deals with the replacement of missing parts is called Endodontics Periodontics Orthodontics Prosthodontics - ✔✔Prosthodontics How many months can a life insurance policy normally be backdated from the date of application? 3 6 9 12 - ✔✔ 6 HIPAA considers which of the following as "individually identifiable health information"? - ✔✔A person's health claim information Which of the following is NOT taken into consideration when determining eligibility for Medicare benefits? - ✔✔Income What is the primary factor that determines the benefits paid under a disability income policy? - ✔✔wages All of the following are functions of an insuring clause EXCEPT - ✔✔Primarily describes the free-look period
The Fair Credit and Reporting Act's main purpose is to - ✔✔protect consumers with guidelines regarding credit reporting and distribution What is known as the immediate specific event causing loss and giving rise to risk? - ✔✔Peril Mary is issued an initial producer's license on April 29, 2012. Her birthdate is March 14, 1980. When does her license renew? - ✔✔March 31, 2014 Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? - ✔✔Human life value approach In South Carolina, which of the following statements is TRUE regarding a licensed individual changing his or her legal name? - ✔✔The producer must notify the Department upon changing his or her legal name Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary? - ✔✔interest only What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day? - ✔✔Claim will be paid if application is approved In South Carolina, what is the MAXIMUM length of time an insurer can defer payment of a cash surrender value of an annuity? - ✔✔ 6 months Which of these is affected by the frequency of an insurance policy's premium payments? - ✔✔Cost In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered - ✔✔unilateral Which of these licensees MUST be appointed in order to conduct insurance business? - ✔✔Producer
Which of the following is present when an applicant stands to lose value if the insured dies? - ✔✔Insurable interest Which of the following is NOT an illegal inducement? - ✔✔Giving the insured an article of merchandise printed with the producer's name costing $ Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must - ✔✔be the same and the premium cannot exceed 102% A waiver of premium rider allows an insured to waive premium payments if the insured is - ✔✔completely and permanently disabled When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? - ✔✔The family's financial objectives if the income earner were to die or become disabled A Medicare Supplement Policy is - ✔✔designed to fill in the gaps of Part A and Part B Medicare Which disability policy provision would address any concerns of the value of the benefits decreasing over time? - ✔✔Cost of living benefit All Health Benefit Plans issued after January 1, 2014 must provide - ✔✔preventative health services Which type of life insurance is normally associated with a Payor Benefit rider? - ✔✔Juvenile insurance A type of insurer that is owned by its policyowners is called - ✔✔mutual An example of endodontic treatment is a - ✔✔root carnal
An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? - ✔✔Grace period If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? - ✔✔prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age When a decreasing term policy is purchased, it contains a decreasing death benefit and - ✔✔level premiums In contrast to a guaranteed renewable policy, a noncancellable policy - ✔✔may never raise premiums What is South Carolina's REQUIRED grace period for a life insurance policy? - ✔✔ 31 days Long-term care policies MUST pay for "at-home" care at the same daily amount as - ✔✔paid for a nursing home Which of the following typically does NOT provide a form of managed care? - ✔✔Major medical indemnity plan All of these are considered key factors in underwriting life insurance EXCEPT - ✔✔Marital status In an insurance contract, the element that shows each party is giving something of value is called - ✔✔consideration This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes - ✔✔the entire insurance contract between the parties Which of these is considered to be a Living Benefit option in a life insurance policy? - ✔✔Accelerated death benefit The amount received for a life insurance policy in a viatical settlement is - ✔✔Less than the death benefit
Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? - ✔✔Taxable Income Which of these factors is NOT taken into account when determining an applicant's life insurance needs? - ✔✔automobile The Director MUST give a MINIMUM of how many days' notice of a disciplinary hearing? - ✔✔ 30 days Which of the following does Coordination of Benefits allow? - ✔✔Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid? - ✔✔No deductible payment is required What is the name of the provision which states that a copy of the application must be attached to the policy when issued? - ✔✔Entire Contract The responsibility for regulating the insurance continuing education requirements and approving insurance continuing education courses belongs to the - ✔✔Department of Insurance Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? - ✔✔It is temporary An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of - ✔✔fraud What guarantees that the statements supplied by an insurance applicant are true? - ✔✔Warranty What is involved when a life insurance policy has been backdated? - ✔✔Making the policy effective on an earlier date than the present
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true? - ✔✔The face amount and premium will remain constant over the 10 - year period Which of the following is NOT covered under long-term care insurance in South Carolina? - ✔✔Alcohol and drug addiction Under a non-qualified annuity, interest is taxed after the - ✔✔exclusion ratio has been calculated Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will NOT pay for charges exceeding the approved amount? - ✔✔Medicare supplement Plan F Fixed period settlement options are considered to be a form of a(n) - ✔✔annuity An indemnity plan - ✔✔provides the insured a specific dollar amount for services A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) - ✔✔collateral assignment The factor used most often when underwriting a disability income policy is - ✔✔annual earnings Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy? - ✔✔Personal income Under the Time Limit on Certain Defenses Provision, a disability policy is incontestable after it has been in force for a period of - ✔✔the right to return the policy for a full refund within a specified number of days The typical long-term care insurance policy is designed to provide a minimum of year(s) of coverage. - ✔✔ 1
Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care? - ✔✔Assisted living facilities According to South Carolina insurance Code, which of the following MUST a producer do when replacing a Life Insurance policy? - ✔✔Submit to the replacing insurer a list of all Life Insurance policies or annuity contracts proposed to be replaced All of the following are subject to false advertising regulations EXCEPT - ✔✔gifts Group health plans may deny participation based upon the - ✔✔member' part-time employment status An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n) - ✔✔rider All of the following are included as part of a contract in the entire contract provision EXCEPT the - ✔✔changes made by the producer Which of these is NOT a qualifying event for Medicare? - ✔✔Falling below the federal poverty level Which of the following is considered to be the period when the accumulated value in an annuity is paid out? - ✔✔Annuitization phase The open enrollment period for Medicare Supplements begins at age - ✔✔ 65 Which of the following employers is required to follow ERISA regulations? - ✔✔A local electrical supply company with 12 employees In the State of South Carolina, the Director may issue a temporary producer license for a MAXIMUM period of - ✔✔ 180 days
An insured MUST submit a proof of loss on a health insurance claim within how many days after the date of loss? - ✔✔ 90 An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in - ✔✔Risk avoidance Which of the following policies does NOT build cash value? - ✔✔Term A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed of the individual's adjusted gross income. - ✔✔7.5% According to the Fair Credit Reporting Act, an insurer does NOT need to - ✔✔discuss any credit history inconsistencies with the applicant A Renewable Term Life insurance policy can be renewed - ✔✔at a predetermined date or age, regardless of the insured's health Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this plan? - ✔✔$ A beneficiary change can occur - ✔✔normally at any time during the policy term How soon can the benefit payments begin with a deferred annuity? - ✔✔A minimum of 12 months after date of purchase A temporary producer license can be issued in any of the following circumstances EXCEPT - ✔✔a prospective producer who is enrolled in an insurance pre-license class
A policy illustration given at time of sale does NOT typically include the - ✔✔names of the beneficiary An annuity is primarily used to provide - ✔✔retirement income Other than for fraud, under the Time Limit on Certain Defenses Provision, a health insurance policy is incontestable after it has been in force for a period of - ✔✔ 2 years When a life insurance policy is issued to replace another life insurance policy, which of the following does NOT need to be provided to the purchaser at or before the time the policy is delivered? - ✔✔The replacing insurer's financial statements When can a policy no longer be cancelled for nonfraudulent misstatements after its date of issue? - ✔✔ 2 years Which of these is NOT considered to be a common life insurance nonforfeiture option? - ✔✔Life income annuity Which of the following is considered to be an alternative to a life settlement? - ✔✔Accelerated death benefit rider A disability elimination period is best described as a - ✔✔time deductible An insurer must furnish to a claimant forms for filing proof of loss within days upon receiving a notice of claim.
- ✔✔ 15 The difference between a Long Term Care Partnership Plan and a Non-Partnership Plan is which of the following? - ✔✔Asset Protection Which type of policy combines the flexibility of a universal life policy with investment choices? - ✔✔Variable universal life policy
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is tax deductible. Which of the following may be considered a medical expense under this rule? - ✔✔Long Term Care Insurance premiums The election of COBRA for continuation of health coverage will - ✔✔maintain the same coverage and increase premium Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n) - ✔✔deductible A common exclusion or limitation on a dental policy is - ✔✔Endodontics Which situation accurately describes a reduced paid-up nonforfeiture option? - ✔✔Policy has a decreased face amount Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered - ✔✔Noncancellable A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n) - ✔✔association or labor group Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a - ✔✔Presumptive disability The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of
- ✔✔past due premiums that have not been paid by the end of the grace period In Health plans, premiums paid less frequent than monthly require a minimum Grace period of at least - ✔✔ 7 days In South Carolina, within how many days does the free-look provision allow the insured the right to return an individual insurance policy for full premium? - ✔✔ 10 days
