Overall quize

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#1.	Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
a)	3 days
b)	5 days
c)	10 days
d)	14 days
	Investigative consumer reports cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested.
#5.	Which of the following best defines the owner of a life settlement contract?
a)	A person insured under the contract
b)	A fiduciary for the contract
c)	An insurance provider
d)	A person who is selling the contract
	The term "owner" refers to the owner of the policy who may seek to enter into a life settlement contract. This does not include an insurance provider, a qualified institutional buyer, a financing entity, a special purpose entity, or a related provider trust.
A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit. There are a number of reasons that a policy owner may choose to sell his or her life insurance policy.https://www.investopedia.com/terms/l/life_settlement.asp
#6.	In a life settlement contract, who does the life settlement broker represent?
a)	The owner
b)	The insurer
c)	The beneficiary
d)	The life settlement intermediary
	Life Settlement Broker is a person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. Life settlement brokers represent only the policyowners.
#15.	Under the New York State Disability Benefit Law, for an employed individual, disability benefits will be payable after a waiting period of
a)	31 days.
b)	60 days.
c)	3 days.
d)	7 days.
	New York State Disability Benefits are only paid when the individual cannot collect unemployment because of disability. If the employee’s weekly average wage is less than $20.00, the benefit is such average weekly wage.
#20.	The equity in an equity index annuity is linked to
a)	The returns from the insurance company’s separate account.
b)	The annuitant’s individual stock portfolio.
c)	The insurance company’s general account investments.
d)	An index like Standard & Poor's 500.
	Equity indexed annuities are not securities, but they invest on a relatively aggressive basis to aim for higher returns. Like a fixed annuity, the equity indexed annuity has a guaranteed minimum interest rate. The current interest rate that is actually credited is often tied to a familiar index like the Standard and Poor's 500.
#23.	Which of the following is an example of a peril covered in an accident and health insurance policy?
a)	Death
b)	Sickness
c)	Alcoholism
d)	Smoking
	There are two major causes of loss (or perils) covered under a health insurance policy: sickness and accident. Smoking and alcoholism would be considered hazards that may cause a loss.
#27.	A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
a)	Incontestability period
b)	Assignment
c)	Automatic premium loan
d)	Waiver of premium
	This provision is not required, but is commonly added to contracts with a cash value at no additional charge. This is a special type of loan that prevents the unintentional lapse of a policy due to nonpayment of the premium.
#28.	Which of the following features of the Indexed Whole Life policy is NOT fixed?
a)	Policy period
b)	Cash value growth
c)	Premium
d)	Death benefit
	Under the Indexed Whole Life policy, the premium is fixed, and the death benefit is guaranteed. Cash value is dependent upon the performance of the equity index although a minimum cash value is guaranteed.
#29.	Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
a)	Single life
b)	Fixed-amount
c)	Life income with period certain
d)	Joint and survivor
	The life income with period certain option guarantees payments for the life of the recipient and also specifies a guaranteed period of continued payments. If the recipient should die during this period, the payments would continue to a designated beneficiary for the remainder of the period.
#30.	Which of the following refers to "own occupation" disability?
a)	Insured is unable to perform duties of any occupation.
b)	Insured business owner is unable to perform the duties of his/her own business.
c)	Insured business owner is unable to perform the duties of any related business.
d)	Insured is unable to perform duties of the occupation for which he/she was educated and trained.
	Under an Own Occupation plan, if the insured cannot perform duties of his/her current job or the job that he/she was educated and trained for, disability benefits will be paid, even if the insured would be capable of earning income at a different occupation.
#31.	According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage premium that must be applied to actual medical care in a large group health plan?
a)	50%
b)	75%
c)	80%
d)	85%
	MLR requires insurance companies to spend at least 80% (for individual and small group markets) or 85% (for large group markets) of premium dollars on medical care and health care quality improvement, rather than on administrative costs.
#33.	The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an
a)	Limited Accident.
b)	Blanket.
c)	Limited Sickness.
d)	Accidental Death and Dismemberment.
	A policy that covers all of the participants without naming them individually is a blanket policy.
#35.	All of the following may be excluded from coverage in a Major Medical Expense policy, EXCEPT
a)	Coverage provided under workers compensation.
b)	Emergency surgery.
c)	Custodial care.
d)	Cosmetic surgery.
	These are all standard exclusions in a Major Medical Expense policy, except for emergency surgery.
#36.	What is reinsurance?
a)	An agreement between an originating insurer and a ceding insurer
b)	An agreement between a domestic insurer and a foreign insurer
c)	An agreement between an insurer and an insured
d)	An agreement between a ceding insurer an assuming insurer
	The originating company that procures insurance on itself in another insurer is called the ceding insurer. The other insurer is called assuming insurer.
#38.	If a hearing is scheduled for a producer who has violated regulations regarding unfair trade practices, the Superintendent must send a prior notice within how many days of the hearing?
a)	10 days
b)	14 days
c)	20 days
d)	30 days
	The required notice of hearing is at least 10 days.
#40.	Which of the following types of LTC is NOT provided in an institutional setting?
a)	Home health care
b)	Custodial care
c)	Skilled nursing care
d)	Intermediate care
	Home health care is given in the home, but skilled nursing, intermediate, and custodial care may all be provided in an institutional setting.
#42.	In cases where a covered employee is eligible for Medicare benefits to treat end-stage renal disease (ESRD) with dialysis or kidney transplant, which of the following is correct?
a)	Medicare is primary for the first 12 months of treatment and the employer group insurance is secondary.
b)	Medicare is the secondary payer during the first 30 months of treatment.
c)	Medicare and the employer group insurance plan will share the cost equally.
d)	Because Medicare does not cover treatment of ESRD, the group plan will pay 100%.
	Individuals eligible for Medicare because of end-stage renal disease (ESRD) and covered under the employer's group plan are primarily covered by the group health coverage for the first 30 months, then Medicare would become the primary health provider.
#43.	Which of the following is NOT allowed in credit life insurance?
a)	Creditor requiring that a debtor buys insurance from a certain insurer
b)	Creditor having a collateral assignment on the policy
c)	Creditor requiring that a debtor has a life insurance
d)	Creditor becoming a policy beneficiary
	In credit life insurance, creditor may require that the debtor has a life insurance, but they cannot tell you who to buy the insurance from.
#46.	Which of the following are NOT fundable by annuities?
a)	Cash accumulation for any reason
b)	A person's retirement
c)	Estate liquidation
d)	Death benefits
	Annuities are most commonly used to fund a person’s retirement, but they can technically be used to accumulate cash for any reason. Annuities can also be used to liquidate an estate. Annuities do not provide death benefits; those are provided by life insurance.
#48.	Which of the following is true about the premium on the children’s rider in a life insurance policy?
a)	It remains the same no matter how many children are added to the policy.
b)	It decreases when the oldest child reaches the age of 21.
c)	It increases when a newborn baby is added to the policy.
d)	It decreases when an adopted child is added to the policy.
	The premium does not change on the inclusion of additional children; it is based on an average number of children.
#50.	The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT
a)	Individual tax deduction for premiums paid.
b)	Right to appeal.
c)	No lifetime dollar limits.
d)	Coverage for preventive benefits.
	The Act does not offer tax deductions for health insurance premiums. The Act does offer a tax credit, which is different from a tax deduction. All the other provisions are included in the Act.