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Life, Medical, Health and Dental Test
May 30, 2013
by
Rhonda Ward
Life, Medical, Health and Dental Test
Which of the following is NOT a type of insurance company?
Stock
Mutual
Basic
Fraternal
A Non-Admitted insurance company is not licensed to conduct business in this state because it is under examination by the Department of Insurance.
True
False
Which of the following are exceptions to the license requirements?
Clerical employees of a producer who are not involved in sales, solicitations or negotiations.
Employees of insurance companies who deal only with licensed producers.
Employees of insurance companies who have the authority to sign policies, but do not solicit or sell insurance.
All of the above.
Every applicant for a Producer’s license must be 30 years or older, and a Louisiana resident.
True
False
A producer’s license can lapse up to five (5) years can still be reinstated by:
fulfilling continuing education
paying the renewal fee
paying the reinstatement fee
all of the above.
Producers who are sixty five (65) years old and have at least fifteen (15) years experience are exempt from the continuing education requirements.
True
False
Violations of the rules on commissions are criminal, punishable by a fine of up to five thousand dollars ($5000.00) and up to two (2) years in prison. Violations would also suspend or revoke the producer’s license.
True
False
Which of the following is NOT a violations of licensing laws:
Failure to comply with any prerequisite of state or federal law for the issuance or such license.
Sending more than two mass mailings per calendar year.
Failing to account for any premiums.
Misrepresenting the terms of the actual insurance application or contract.
All insurance companies must appoint an illustration actuary, who is a member of the American Academy of Actuaries and in good standing to certify that the company’s illustrations comply Actuarial Standard of Practice for Compliance.
True
False
Annual report for a Universal Life policy is more detailed and contains essentially the same information found in the Policy Summary.
True
False
Assets in Separate Accounts must be valued at least ________.
weekly.
monthly.
annually.
The Law of Large Numbers is _____.
a large client base is necessary to give companies enough income to pay for claims.
grouping large numbers of similar risks to give companies the statistical probability of claims.
A Counter Offer is not required to form a contract.
True
False
If a policy is issued based upon an incomplete application, the company _____________.
waives the right to answers.
may suspend the policy until answers are submitted.
must cancel and reissue the policy.
Underwriting Factors include:
Age & Gender
Weight & Build
Personal & Family Health History
All of the above
______________: Company may not deny a claim due to statements on the application after the policy has been in force for a certain period, which is usually a maximum of one to two years.
Nondenial Clause
Incontestability Clause
Elapsed Time Clause
____________: Transfer of ownership of policy to by notifying the company in writing only.
Transfer Clause
Ownership Clause
Assignment Clause
Time Limit on Lawsuits: Reasonable time for a policy owner or beneficiary to sue is ________ in Louisiana.
six months
one year
five years
Uniform Simultaneous Death Act: If we do not know, we assume that the beneficiary dies _______.
first.
last.
Cross Purchase Plan Premiums are not tax deductible and death benefits are not considered taxable income.
True
False
In Deferred Compensation Plans, the employee has no legal right to money until the payout begins which is usually after retirement.
True
False
Executive Bonus Plans are compensation and taxable.
True
False
Which of the following is NOT a Universal Life policy feature?
Death benefit can be lowered or raised with evidence of insurability.
Cash Value grows at a minimum guaranteed rate, but can higher because it is interest sensitive.
Low interest repayment plans for cash withdrawals or partial surrenders.
Variable Universal Life plans are invested in the stock market through a separate account.
True
False
Which of the following is NOT a Legally acceptable Groups or Organized Entities?
Single Employer
Labor Union
Association with a minimum of at least 25 members
Credit union
Group Underwriting utilizes Experience Rating and Group Averages with gender, age, etc.
True
False
The Life Conversion Privilege has a ________ conversion period.
31 days
60 days
180 days
Medical program with Dental plan participation packages usually include the following: ID cards Instructions and tips for maximizing your savings Support and contact documentation
True
False
General dentists who participate in Dental plans agree to accept the Dental contracted rate as payment in full for services performed.
True
False
In OASDI (Disability Benefits) the fully insured is the only one covered.
True
False
A Section 1035 Exchange is when one policy is exchanged for another policy. This is not taxed.
True
False
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Life Medical Health and Dental
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