Which insurance act establishes procedures for collecting and disclosing information obtained on customers through investigations and credit reports:

Fair Credit Reporting Act (FCRA)

The Chief Financial Officer is the head of the:

Department of Financial Services

All of the following are rights of the policyowner except:

The right to change interest rates

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2-15 AB Exam

Andy Beverly practice questions

Question	Answer
An event that causes a loss is known as a:	Peril
The process of risk selection that involves reviewing characteristics of an applicant to determine insurability is:	Underwriting
All of the following are not considered competent parties except:	Senior citizens
All of the following are types of risk classifications except:	Qualified risk
The kind of insurance that pays the cost of medical expenses including doctor visits and prescriptions:	Health insurance
The Securities and Exchange Commission (SEC) is responsible for regulating which type of insurance products:	Variable contracts
The authority that an insurer gives to its agents by means of the agent's contract is known as:	Express authority
An insurance company that is owned by its stockholders is a:	Stock insurer
Which one of the following is not an element of an insurable risk:	The loss must be catastrophic
An insurance company doing business in Florida and incorporated in Florida is recognized as which type of company:	Domestic
A policyholder in a life insurance policy is referred to as the:	policyowner
A clause added to an insurance policy that contains new coverages, limits or restrictions is known as a:	rider
When a party is forbidden by legal action from exercising a right it is known as:	estoppel
A company formed in London and doing business in Florida is a:	alien insurer
Which insurance act establishes procedures for collecting and disclosing information obtained on customers through investigations and credit reports:	Fair Credit Reporting Act (FCRA)
An insurance company doing business in Florida and incorporated in another country is recognized as which type of company:	alien
The type of contract that does not allow the applicant to negotiate the terms of the contract is a:	Contract of adhesion
A captive insurance agent works for how many companies:	1
The type of agent authority that is not expressly granted but which the agent is assumed to have in order to transact business on behalf of the insurer is:	implied authority
The type of insurer which has a purpose of making profits for its shareholders is a:	stock insurer
In agent authority, the principal is usually the:	Insurance carrier
Buying an insurance policy is an example of:	Transferring risk
not having a car as a way of avoiding car accidents.	Avoiding risk
taking full responsibility for any losses out of your own bank account.	Retaining risk
finding someone else to pay for future losses, usually by purchasing an insurance contract.	Transferring risk
using protective measures to make losses less severe. For example, installing safety equipment, or requiring helmets on the job.	Mitigating risk
The insurance principle where a large group of people contributes to cover the losses of a few is:	Risk pooling
The Chief Financial Officer is the head of the:	Department of Financial Services
An insurer that has not been licensed to operate within a given state is a:	Non-admitted insurer
The statistical principle that allows for predicting the degree or amount of loss that will be incurred in a given period is called:	Law of large numbers
The type of contract that states the insurer will pay a stated amount in the event of a loss is a:	Valued contract
HMO's and PPO's are examples of which type of insurer:	Service providers
All of the following are elements of an insurance contract except:	Offer and remittance
The act established by Congress which helps to prevent attempts to launder money and finance terrorism is the	USA Patriot Act
The type of agent authority that is based on words, actions or deeds is	Apparent authority
the written authority of the agent as specified in their contract with an insurance company.	Express authority
The type of agent authority that is not written but the agent is assumed to have such authority is:	Implied authority
Choosing not to go bungee jumping is an example of which type of risk treatments:	Risk avoidance
The type of insurance company that is owned by its policyholders and usually issues dividends is a:	Mutual insurer
When a company gives up a legal right this is known as a:	Waiver
The type of risk that involves the chance of a loss and gain is a:	Speculative risk
Service providers provide benefits to its:	Subscribers
Statements that are made in the application that are used by insurers to evaluate risks are called:	Representations
An entity established by a state to support insurers and protect consumers in the event the insurer becomes insolvent is a:	Guaranty association
A person that is subject to loss upon the death, illness or disability of the insured is known to have:	Insurable interest
The person who receives the life insurance proceeds if the primary and secondary beneficiary both die is the:	Tertiary beneficiary
The period in which there are no Social Security benefits for the surviving spouse is known as the	Blackout period
Tina purchases a life insurance policy on Bill. Bill is Tina's husband and they have two children, Bill Jr and Katy. Tina names Bill Jr and Katy as the beneficiaries. Which type of ownership does Tina have:	Third party
The type of receipt that is provided to an applicant when the initial premium is paid and coverage becomes effective on the date the application is signed or on the date of the medical exam is an	Insurability receipt
All of the following are rights of the policyowner except:	The right to change interest rates
Dan is Susan neighbor and they are close friends. Dan may take out a life insurance policy on Susan because he has insurable interest:	False
The method that allows the policyowner to pay more than the policy requires to meet the future rise in premium is the:	Level premium funding method
Which type of policy may allow the policyowner to receive higher than usual investment returns?	Variable life
All of the following must take place at the time of the application except:	The application must be completed partially
When buying life insurance which of the following can not be designated as the beneficiary?	The person whose life is insured.
The insurer may return the application back to the agent if the application is not fully completed:	True
In a group life insurance policy, the employer is issued which of the following as evidence of insurance:	Master contract
All of the following are reasons to purchase life insurance for a business except:	As a way to make the business more money
A retirement plan that does not meet specific requirements set by the government is deemed a:	Non-qualified plan
The type of beneficiary that may not be changed is a: Select o	Irrevocable beneficiary
All of the following are classifications of risk except:	Non-preferred risk
All of the following are reasons the agent should review and explain the policy to the policyowner except:	Helps to upsell other products if the policyowner is happy about the life policy
The type of life insurance arrangements where investors persuade seniors to take out a life insurance policy with the investor’s name listed as the beneficiary is:	Investor Oriented Life Insurance
The life insurance provision which states that the policy documents, application and attached riders constitute the insurance contract, is the:	Entire Contract Provision
Tom has a life insurance policy where he can adjust the death benefit and the premiums during the life of the policy. Which type of policy does Tom have:	Adjustable life
The type of retirement plan that meets the requirements of the government and receives favorable tax treatment are	Qualified plans
The type of annuity contract that may be traded for another annuity contract with a different company is a	1035 exchange
A major benefit of the policy grace period is that	It prevents the policy from lapsing
The value given in exchange for a contractual purpose is the	Consideration
Which clause states that after a certain period the insurer can no longer challenge the validity of the insurance contract	Incontestable clause
Social Security is formally known as	Old Age, Survivor and Disability Insurance
Term life insurance provides insurance protection fo	A temporary period of time
The two options that can extend a term policy coverage period are	Option to renew and the option to convert
All of the following are included in the entire policy contract except	Marketing flyer
The life insurance rider that allows the policyowner to increase the death benefit without having to provide evidence of insurability is the	Guaranteed insurability rider
The type of life insurance that protects from interruptions against the loss of an important employee is	Key-employee insurance
Variable universal life insurance provide all of the following except	Guarantees a specified rate of return
Debbie pays level premiums throughout the entire life of her policy. Which type of policy does Debbie have?	Straight whole life
Which type of insurance is needed to protect against business interruptions due to a death of a CEO	Key person insurance
In a life insurance policy, the insured's age at the time of the application is referred to as the	Original age
In a fixed annuity, the accumulation period is the period when	Payments are submitted to fund the annuity
How many days does the individual have to convert coverage within a group policy into a individual policy	31 days
All of the following are types of policy riders except	Owners rights rider
Jack buys a term life insurance policy that provides coverage for 10-years with level premiums. Which type of policy did Jack purchase?	Level term
A type of funding account that pays a specified amount over time is a(n)	Annuity
Janet purchased an insurance rider that covers the costs of nursing home services. Which type of rider did Janet purchase?	Long term care rider
The type of risk that involves the chance of loss and no opportunity for gain is a:	Pure risk
In life insurance, two of the most important factors of establishing premium are	Age and gender
Robert purchased an annuity that will provide income payments at a specified future date. Robert also funded the annuity with periodic payments. Which type of annuity did Robert purchase?	Deferred annuity
The policyowner is allowed to transfer its ownership of the policy to another person	True
A life insurance application consist of all the following parts except	Insured financial records
The provision that restores the policy to its original status after the policy lapses is the	Reinstatement provision
Social Security insurance is also referred to as	OASDI
In a group life insurance policy, how many days does an employee have to convert his/her policy into an individual plan without having to provide evidence of insurability	31 days
Suzy is the primary payor on a life insurance policy. If Suzy dies, all premiums will be paid. Which type of rider did Suzy purchase?	Payor Rider
Bill the policy owner makes the premium payment once a year. Which type of premium mode did Bill select:	Annually
The type of risk that is considered most favorable to an insurer is a:	Preferred risk
The type of term life insurance policy that may be changed to a whole life insurance policy without the need of an medical examination is a:	Convertible term
In Social Security insurance, the death benefit payable to a surviving spouse is:	$255
The type of factor used to calculate life insurance premiums is the:	Mortality factor
The policyowner may name more than one beneficiary for an insurance policy:	True
In life insurance, the accumulation of cash the builds over a period of time during the life of the policy is referred to as:	Cash values
What amount of death benefit would be paid to the beneficiary if the insured dies during the term: A 20-year level term policy with a $50,000 face amount.	$50,000
The type of annuity that provides a guaranteed benefit amount that is payable for the life of the annuitant is a:	Fixed annuity
Who is responsible for explaining the policy, provisions, riders and exclusion to the policyowner?	The agent
The disability income policy that covers job-related related injuries is	Occupational
In workers compensation insurance, an employee that is disabled due to a injury while working	Must be paid benefits on weekly or monthly basis
Workers Compensation insurance covers all of the following except	Employee termination
The health insurance act that provides protection of customer information and privacy is known as	HIPAA
The type of employee benefit plan that allow employees to select from multiple benefits is a	Cafeteria plan
Contributory group health plans often require what percentage of participation of eligible employees	75%
The health insurance provision that states the contract includes the signed application and any attached policy riders is the	Entire contract
John lost his sight prior to the policy inception and can no longer see. The insurer placed an impairment waiver into John's insurance contract: The impairment waiver will	Exclude accidents and expenses involving John's loss is sight
The health insurance provision which states that during a period of time, the insurer may question the validity of a claim due for misleading or incomplete information on the application is the	Contestable period
John has a medical expense claim totaling $2,000. John's deductible is $1,000. The coinsurance provision stipulates 80/20. What expenses are funded by John's policy	$800
An HMO and PPO are known as	Service providers
The act that limited the ability for employers to exclude individuals with preexisting conditions in a group insurance plan is	HIPAA
All of the following are categories of a health insurance policy except	Life insurance
The mandatory health insurance provision that provides a time frame in which the insured has to submit proof of the loss is known as	Proof of loss
Benefits received under a group long term care policy are taxable as earned income	False
Which provision allows an insurer to non-renew coverage in the event one or more conditions occur	Conditionally renewable
The type of insurance that provides health coverage specifically for individuals age 65 or older is	Medicare
The type of arrangement where the employer sets aside pre-tax dollars to pay for the employee's coinsurance or deductible is	HRA
Employees in a group insurance policy are issued a	Certificate of insurance
All of the following are premium factors in health insurance except	Mortality
A major act that changed the rules governing preexisting conditions was	HIPAA
In a cancelable policy, the insurer may	Cancel the policy and/or increase the premium any time
The advantage of a basic medical expense policy is	Benefits are paid without requiring the insured to satisfy a deductible
The insurer may or may not allow renewal of a policy when the insured reaches a certain age. Which provision allows the insurer to do so	Conditionally renewable
The provision that allows the policyowner to change the beneficiary at anytime unless it is revocable beneficiary is that	Change of Beneficiary provision
All of the following are risk factors in health insurance except	Hobbies
All of the following are premium factors in a Long term care policy except	Marital status
In the reinstatement provision, the insurer has how many days to take action on the application before the reinstatement is automatic	45 days
The type of insurance that provides a range of medical and personal services for individuals who need assistance with daily activities for an extended period of time is	Long-term care
Under miscellaneous expenses in a basic medical expense plan, all of the following are covered except	At home nursing care
A Medigap policy may be sold to an applicant who also has a Medicare Advantage Plan	False
What is not covered in a health insurance policy	loss due from suicide
Mary wants insurance to protect against loss of income and wages due to a disability. What type of insurance should Mary purchase	Disability Income Insurance
The type of health insurance coverage that provides a daily, weekly or monthly benefit for a specified amount while the insured is hospitalized is	Hospital Indemnity
The disability rider that stops insurance premiums if the insured becomes completely disabled is the	Waiver of premium rider
In instances where the terms of the contract are questionable, the interpretations will be most favorable to the insurer	False
In a conditional contract, the insurer will pay benefits	When the occurrence occur
The provision in a Disability Income insurance policy that specifies a certain period in which no benefits will be payable is the	Probationary period
In a group insurance plan, the insurer will	Underwrite the entire group as a whole
Grandfathering of policies is typical in which type of insurance	health
The insurance plan that offer prepaid health care to its subscribers is a	HMO
A MEWA may consist of a single employer plan	False
HMOs are known for	Stressing preventive care
An employer within a group insurance plan is issued which of the following as evidence of insurance	Master contract
An insurer may cancel a health insurance policy for all of the following reasons except	Misstatement
Procedures performed by chiropractors are not covered by health insurance	False
Intermediate care can be provided by all of the following except	Paramedic
Case management is conducted by which insurance company specialist	A registered nurse
In Long Term Care insurance, custodial care requires specialized medical training	False
The continuation of health insurance coverage after termination from a group plan is provided by	COBRA
A health insurance applicant with HIV must be given all of the following except	A mandatory 90 day elimination period
In a prepaid plan	The subscribers pay a set fee each month for medical services
Skilled nursing care is a benefit category found in:	Long Term Care policies
Alternative care is a coverage component available in which type of insurance	Long term care
Medicare Part B coverage provides benefits for all of the following excep	Prescription drugs
A group health insurance policy may be cancelled for failure to meet the minimum participation requirement	True
In Long Term Care insurance, alternative care includes all of the following except	Dressing or bathing
Before selling a Medicare supplement policy, an agent must first ask the applicant	If he/she is covered under another contract
In Long Term Care insurance, custodial care assist with all of the following living requirements except	Grocery shopping
An Outline of Coverage is optional and can be provided at the time of the policy delivery	False
Blue Cross and Blue Shield health plans are an example of:	Prepaid plans
All of the following are types of Managed Care organizations except	MIB
Grandfathered health insurance plans are eligible for HIPAA protection	True
The act that protects an applicant with HIV's privacy is	HIPPA
The period of time in which new customers may sign up for insurance coverage is known as the	Open enrollment period
In Long Term Care insurance, a policy lapse may be reinstated if the policyowner states that the lapse was unintentional	True
It is illegal to write a Medigap policy if a Medicare Part C is in effect	True
A primary purpose for Medicare Supplements is to	Fill in the gaps in Medicare

Created by: mmonta

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