An individual life insurance policy can be contested by the insurer only during the first _________ years of the contract, An order issued by the commissioner that prohibits a specific practice listed in the order is called a. Mary ran into John, another employee, who happened to be taking outthe garbage. When are group disability benefits considered to be tax-free to the insured? 1. The promise of a discount in premium as an inducement to purchase insurance is known as, exchanging a new policy for one already in force, with guidelines regarding credit reporting and distribution, The Fair Credit Reporting Act protects consumers, Terminally-ill life insurance policyowners may sell their policy at a discount to a third party. b. Incomeif an insured is unable to work for a period of over six months, c. Coveragefor excess charges not paid for under Medicare. An individual the means to replace wages. The ____ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant. How many months can a life insurance policy normally be backdated from the date of application? \text{Accounts payable} & \$\ \hspace{5pt}32,000 & \$\ \hspace{5pt}57,000 \\ Making the policy effective on an earlier date than the present. To be classified as a small employer, an employer must NOT have more than _________ eligible employees, The _______ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant, During the examination of an insurer's books and records by the Commissioner, the insurer, remain in effect until a new one is issued, John the insurance producer has an insurance license that expires in 6 months. Which of the following is an example of fraud? Craig submits a $500 claim for medical expenses. By . Premium mode is term used to describe the: The Fair Credit and Reporting Acts main purposeis to: A. The coverage, condition, and limitations in the master policy of a group contract can be found in which document? a producers secretary who solicits prospects on the telephone The benefit can be offered as a rider at a specific extra cost or may be at no cost, All of the following are included as part of a contract in the entire contract provision EXCEPT the. How long after its effective date will an individual life insurance policy become incontestable? by recommending insurers with good AM Best ratings, C.) With guidelines regarding credit reporting and distribution. When calculating the amount of life insurance needed for an income earner, what has to be determined when using he Needs Approach? Which of the following actions by a producer would NOT result in a license suspension or revocation? Which of the following is NOT required in an order from the Commissioner? In event of acontroversy between the insured and the company, the producer is considered to representthe. visas, binomial trials. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? Which of the following is present when an applicant stands to lose value if the insured dies? How often must the Commissioner examine each domestic insurance company? \end{array} This type of agreement is called a, The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as, An advertisement for an insurance product may contain, Signing a prospect's name without their knowledge or presence. What is issued to each employee of an employerhealth plan? Focus of Major medical insurance is providingcoverage for: C. Medical and Hospitalization expenses. Pat is insured with a life insurance policy and Karen is his primary beneficiary. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? Why are dividends from a mutual insurer not subject to taxation? Term, Whole, and universal lifeinsurance. Providing claim payments to insureds under the guidelines of the insurance contract. & \text{Ending}& \text{Beginning} & \\ Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? D.In the event of employment termination, group health insurance can be kept if the employer pays the premium. Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid, A producer who shares commissions with a client. Whoassumes the investment risk with a fixed annuity contract? Which type of contract may NOT be issued by an insurance company? When does a life insurance policy typically become effective? What kind of insurance provides coverage for one or more necessary or appropriate diagnostic, preventative, therapeutic, rehabilitative, maintenance, or personal care services in a setting other than an acute care unit of a hospital? Which of the following is NOT a reason for the Commissioner to deny or refuse a producer license application? The premium for a Modified whole life policy is, How long is the Contestable Period for health insurance policies sold in New Jersey, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of. Maria the insurance producer completes a sale by collecting the required signatures on the application and obtaining the initial premium. During the year, Ravenna paid a $6,000 cash dividend and it sold a piece of equipment for$3,000 that had originally cost $6,000 and had accumulated depreciation of$4,000. James is the insured on a life insurance policy where his age was misstated on the application. Howdo interest earnings accumulate in a deferred annuity? Which of the following is NOT a circumstance to which a temporary producer license can be issued? How much does Medicare Part B pay for physician fees? Employee must be able to make unlimited contributions. The statement which best describes the relationship between the relationship between the premiums of a whole life policy and the premium payment period is, The shorter the payment period, the higher the premium. What does the amount of these credits represent? To be classified as a small employer in Maryland, and employer must employ, Secretary of the Department of Health and Mental Hygiene. A non-contributory health insurance plan helps the insurer avoid, An employee under a group insurance policy has the right to name a beneficiary and the right to, A) remain on the group in the event of employment termination, D) Convert to an individual policy in the event of employment termination, D) Convert to an individual policy in the event of employment termination, All of the following are Characteristics of a group life insurance plan EXCEPT, Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. A producer who sells an individual life insurance policy in Maryland MUST deliver to the policyowner a, Refusing to pay persons bringing false or fraudulent claims, All of these may be an Unfair Claims Practice EXCEPT, is eligible for a Federal tax credit through the SHOP Exchange, An existing health benefit plan offered by a small employer may be replaced by a SHOP Exchange Navigator only if the small employer, An insurance producer who replaces an existing policy by making false written or oral statements is committing the act of, A producer has recently died and leaves behind a spouse. Provides the insured a specific dollar amount for services, An example of an unfair method of competition is, Overstating the benefits of an insurance policy, A pharmacy benefit covers prescription drugs derived from a list called, The type of policy which pays on the death of the last person is called, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination, Ownership of a life insurance policy may be temporarily transferred with a(n). As beneficiary, he will pay__taxeson any money withdrawn. On which date would Sonya have coverage? Replacement regulation is designed to protect the interests of, A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called. A whole life policy option where extended term insurance is selected is called a(n). Proof of loss on a health insurance claim must be submitted to an insurer within _____ days after the insure's date of loss. Which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? The insurer's obligation to pay a death benefit upon an approved death claim, Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. A _______ negotiates an insurance contract on behalf of an insurer, The Entire Contract provision states that an entire contract consists of the actual policy and the, the last day of the licensee's birth month (every two years), A producer's renewal date for his/her resident insurance license is on or before. The policies continue in force with no change. In the marketplace there are four various tiers of coverage, ranging from, bronze to platinum. Its balance sheet for this year is as follows: EndingBeginningBalanceBalanceCashandcashequivalents$48,000$57,000Accountsreceivable41,00044,000Inventory55,00050,000Totalcurrentassets144,000151,000Property,plant,andequipment150,000140,000Lessaccumulateddepreciation50,00035,000Netproperty,plant,andequipment100,000105,000Totalassets$244,000$256,000Accountspayable$32,000$57,000Incometaxespayable25,00028,000Bondspayable60,00050,000Commonstock70,00060,000Ratainedearnings57,00061,000Totalliabilitiesandstockholdersequity$244,000$256,000\begin{array}{l c c} She recently replaced the policy with a new one that provides better coverage. It is health insurance for the elderly. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? A branch office registration form is required to be filed at least _____ days before selling insurance out of that branch. How long must an individual be unable to engage in any gainful activity due physical or mental disability in order to qualify for Social Security Total Disability? Which of the following statements is TRUE? An annuitant is guaranteed to NOT outlive their benefits will a(n). A life insurance policy is hallowed ___ days upon policy delivery to return the policy for a full premium refund.. An order issued by the commissioner that prohibits a specific practice listed in the order is called a (n). a producers secretary who solicits prospects on the telephone Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? a. social stratification b. feminization of poverty c. social class d. social mobility e. bourgeoisie f. vertical mobility g. proletariat h. intergenerational mobility i. wealth j. horizontal mobility k. income l. open-class system m. prestige n. absolute poverty o. relative poverty p. caste system. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Tara the producer is delivering a specified disease insurance policy to a new policyowner. Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered. Shirley has a $500,000 10-year non-renewable level term life policy. When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer? She may reinstate her policy within _____ years. A _______ company is owned by its shareholders, The ___________ has the right to renew a small employer health plan, providing incorrect, misleading, incomplete, or materially untrue information in the license application, A producer who is licensed in Maryland but resident in another state is called a, A minor may receive a life insurance policy's death benefit ONLY, Interest on death benefits are NOT required to be paid by an insurance company as long as proceeds are paid within ______ after the date of the death of the insured, Submit to the replacing insurer a list of the policies to be replaced. Please upgrade to Cram Premium to create hundreds of folders! D. Willfullycollecting a premium that exceeds the amount of the actual premium. Higher than the typical whole life policy duringthe first few years and then lower than typical for the remainder. Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. Johan the producer charged a fee to a sales prospect for analyzing insurance coverages A written statement describing the elements of a policy is called, All of the following are considered appropriate uses of life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, An insured individual and the policy's beneficiary die from the same accident. At minimum, a carrier is required to offer which of the following health benefit plans to small employers? After 15 years, the cash value has accumulated to $100,000 and the police's face amount has become $600,000. At what age does the open enrollment period typically begin for Medicare Supplement coverage? How many days notice must the Commissioner give prior to a hearing? Underthe Maryland health insurance plan, comprehensive health benefits are providedto. June 5, 2022 . A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing. All of these are standard exclusions found in a life insurance policy EXCEPT. Inwhich of the following situations would the insurer be liable for a loss? In this situation, who will receive Bob's policy proceeds? In a group health care, what is the purpose of the coordination of benefits provision? Whichof the following is Medicare Part B also known as? What happens when an insurance policy is backdated? \quad \text{Less accumulated depreciation} & \underline{\hspace{13pt}50,000} & \underline{\hspace{13pt}35,000} \\ If an insured dies during the grace period with no premiums paid. An individual can enroll in a Part C Medicare Advantage Plan at what time? a. Mustmeet certain underwriting guidelines. Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? An ___________ insurance company is one that was formed under the laws of another country outside of the U.S. The family's financial objectives if the income earner were to die or become disabled, Normally at any time during the policy term, Loans obtained by a policyowner against the cash value of a life insurance policy, The solicitation of a non-authorized contact in New Jersey violates. There is protection of proceeds against the insured's and the beneficiary's creditors, Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. Percent frequency distribution for key variables. This situation is called, Written notice of a health insurance claim should be given to the insurer within _____ days after the occurrence of any loss covered by the policy, To conduct insurance business in this State, an insurer must be issued a certificate of authority. Who would make the final determination on whether or not an insurance advertisement is misleading? Which of these may NOT be used in a health insurance advertisement? Which of these is NOT considered to be a risk factor in life insurance underwriting? If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? 5151\left|\begin{array}{ll}5 & 1 \\ 5 & 1\end{array}\right| Eventually, they retire and dissolve the business. Which of these is affected by the frequency of an insurance policy's premium payments? What may be the result of replacing an existing life insurance policy with a new one? The greater of the accumulated cash value or the total premium paid. An attending physician's statement would be appropriate for which life insurance purpose? What types of life insurance are normally usedfor key employee indemnification? An insurer formed according to the legal requirements of another country is called an. Whowere Keogh Plans designed to provide pension benefits for? c. Travel accidental insurance premiums. The Commissioner issues a subpoena to a producer. a producers secretary who solicits prospects on the telephone Which of the following is NOT considered to be an actof fraud? Which type of life insurance policy is this? \text{Net property, plant, and equipment} & \underline{\hspace{8pt}100,000} & \underline{\hspace{8pt}105,000} \\ Which of the following is the likely result? Which situation accurately describes a reduced paid-up nonforfeiture option? Arollover from a Traditional IRA to another IRA must be done within __ days toavoid tax consequences. A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT, An insurance consultant is BEST defines as a. It would be considered taxable income to the employee. Atax-free 1035 Exchange of a life insurance policy to a different policy ispermitted if it occurs, A. Inthe same state as the original transaction, C. Frominsurer to insurer and no cash is received by the policy owner, D. Fromagent to agent as long as the agents are licensed in the same line. _____ is NOT an element of valid contract, The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value at the amount of, Past due premiums that have not been paid by the end of the grace period. a producers secretary who solicits prospects on the telephone What happens to coverage under a children's term rider when that child reaches a certain specified age? 16381 Chillicothe Rd, Chagrin Falls, OH 44023, USA 440-708-1855. search. Her health policy most likely contains a(n). If a producer has been engaged in an administrative action by any governmental agency, within how many days following the final deposition must the producer report the action to the Commissioner? The prescription of a drug for treatments other than what's labeled is known as _____ use, Coverage for newborns under a health plan MUST include coverage for. We understand that this must have been both very frustrating and disappointing. What is the purpose of having an accelerated death benefit on a life insurance policy? \text{Accounts receivable} & \hspace{13pt}41,000 & \hspace{13pt}44,000 \\ The replacing policy may only impose a ____ month time exclusion for pre-existing conditions, forward premiums to the insurer on a timely basis, When collecting insurance premiums from a client, a producer MUST, Once a health insurance policy has been in force for _______ years, the policy may NOT be contested by the insurer, cancelling a term life policy to buy a whole life policy, All of these types of benefits may be covered by a nonprofit health service plan EXCEPT, have it's content approved by the commissioner. B. Anytimewithin 12 months after date of purchase, C. Aminimum of 6 months after date of purchase, D. Aminimum of 12 months after date of purchase. a. Oneor more diagnostic, preventive, therapeutic, rehabilitative, maintenance orpersonal care services in a setting other than an acute care unit of ahospital. 1. the daily amount paid for nursing home care, All long-term care policies sold in North Dakota are REQUIRED to pay the SAME daily benefit amount for "at home" care as paid for. The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to asA)twistingB)subrogationC)a life settlementD) coercion. Whathappens when an insurance policy is backdated? B.) D. Licensedproducers not appointed by an insurer. Maria has committed what crime?