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Arkansas Life and Health
All of the following are parties to a life insurance contract, except: - answerThe beneficiary Which of the following Annuities would potentially be the most negatively impacted by the overall stock market falling in value? - answerVariable According to Arkansas law, a resident insurance agent in the state of Arkansas: - answerMust be at least 18 years old Which provision is an Optional Uniform Provision? - answerRelation of Earnings to Insurance ERISA sets ________ standards for pension plans in private industry. - answerMinimum An application for health insurance was submitted on November 1 with the initial premium and a conditional receipt was provided. Due to an existing medical condition, the underwriter requested an Attending Physician Statement, medical exam, and MIB report. After reviewing all sources of insurability, the insurer issued the policy as substandard with a surcharge. The policy was delivered by the producer on December 1 after explaining the coverage and surcharge, obtaining the statement of good health, and collecting the premium. Coverage became effective as of the date the: - answerAgent explained the policy coverage, surcharge, and collected the additional premium Regarding COBRA, which of the following is not true? - answerIt covers participants who have resigned for 36 months following the date of their resignation All of the following about Universal Life are true, except: - answerIncreases in face amount do not require proof of insurability if under $100, Which of the following term policies cost the least all other factors being the same? - answerNonrenewable and non-convertible _______________ is the process of selection, classification and rating, and determining if someone is insurable. - answerHome office underwriting Why are dividends not taxable as income when paid out to a participating policyholder?
- answerThey represent a return of a portion of the premium paid
All of the following are examples of an absolute assignment, except: - answerUsing a Life Insurance policy as collateral for a loan In which of the following circumstances was the small business owner able to deduct the premiums they paid for insurance? - answerThe sole proprietor of a small firm buys an overhead expense policy Accident and Health policies provide coverages for all, except: - answerWorkers' Compensation claims A partial withdrawal is permitted on which of the following policies? - answerUniversal Life In a replacement transaction, all of the following are insurer duties and responsibilities, except: - answerContact the client to assure that they understand the transaction The following are all normally excluded from dental coverage, except: - answerBraces All of the following are risks to the life settlement purchaser, except: - answerThe insured dies sooner than expected The Commissioner of insurance has all of the following duties and powers, except: - answerThe insurance Commissioner may update the insurance code (law) as needed All of the following are Dividend Options, except: - answerReduced paid-up An applicant completes the application and submits it to the insurer along with a premium check. When is the applicant's offer considered accepted? - answerWhen the insurer issues a policy All the following are unfair claims practices, except: - answerMaking claim payments without conducting an investigation When, Peter, an independent contractor, purchased his own personal medical and dental insurance, he discovered that: - answerSelf-employed persons may deduct up to 100% of the cost of health insurance for themselves and their dependents All the following qualify for Medicare Part A, except: - answerHealthy individuals who are under age 65 and not covered by Social Security, but are willing to pay the Part A premium Which statement is FALSE regarding Nonforfeiture Options? - answerThey are used when the insured lives to the endowment date of the policy or at the insured's death
Which of the following statements regarding individual life insurance policy provisions is correct? - answerThe death benefit under a policy of life insurance is exempt from the claims of creditors Which of the following statements regarding group life insurance in Arkansas is true? - answerDisabled employees must be allowed to continue their coverage for up to 6 months while disabled The Life and Health Insurance Guarantee Association: - answerProtects resident policyowners and beneficiaries in case a domestic insurer becomes insolvent When Harry completed his insurance application, the agent discovered that he was under treatment for a chronic condition. In order to gather the necessary information, Harry's agent ordered a/an: - answerAn attending physician statement PPO plans pay providers based on a: - answerDiscounted fee for service negotiated in advance The grace period for an individual health insurance policy being paid on a quarterly basis is: - answer31 days The inflation protection provision under a LTC policy will increase coverage by what percentage? - answer5% Generally, children receive Social Security Survivor Benefits until age ________. - answer Guaranteed Renewable means: - answerRenewable with adjustable premiums, by classification only Medicare benefit payments are made to the medical provider: - answerIf the benefit has been assigned The term 'mode' refers to the: - answerFrequency of premium payments J purchased a policy that includes a carryover provision, common accident and family deductible. J owns a _______________ policy. - answerMajor Medical Precertification, Mandatory Second Surgical Opinion, and Concurrent Review are provisions in health insurance policies known as: - answerManaged Care Provisions If an individual starts receiving Social Security retirement benefits at age 62, when are they eligible for Part A benefits? - answerAutomatically at age 65
In order to convert a term policy to a permanent policy as of the original issue age, all of the following must occur, except: - answerThe cash values will have to be paid out first before the conversion can be effected Which of the following statements appearing in a life insurance advertisement would be in compliance with the rules governing life insurance advertising? - answerThis whole life insurance policy offered by the XYZ insurance company has a maximum benefit of $25,000 to pay for final expenses Sylvia was the insured and owner of a policy that named her husband as the beneficiary. Upon her husband's death, she decided to change the beneficiary designation to her best friend since she has no close living relatives. The insurance company will: - answerAccept the beneficiary change Which of the following life insurance policies is ideally suited for estate planning purposes? - answerJoint and Survivor Concerning the Paid-Up Additions Dividend Option, all of the following are true, except:
- answerEventually, no more premiums will be due on the policy Which of the following statements regarding credit insurance is not true? - answerCertificates of coverage must be delivered to the debtor no later than the date upon which indebtedness is incurred In general, which of the following Medicare plans does not require additional premium? - answerPart A When payment under a Medical Expense policy is based on the average fee charged by all doctors in a given geographical area, and the balance of any overcharges or costs of any disallowed services are the insured's responsibility, the payment is known as: - answerUsual, customary, reasonable (UCR) payment If an insured suffers a dismemberment under the AD&D policy, which of the following will provide benefit payouts to the beneficiary? - answerCapital sum If an accelerated death benefit is in effect, how often must the insurer provide a report showing the amount paid and the amount of the remaining benefit? - answerMonthly A generic brochure was developed by the ________ to assist prospective buyers of life insurance, which includes descriptions of all the basic types of life insurance and comparisons of their relative costs. - answerNAIC H is employed by a company that provides group life insurance. The amount provided is $150,000. How much, if any, of the coverage is going to be reported as taxable income to H? - answer$100,
Which of the following is not a Mandatory Uniform Provision? - answerConformity with State Statutes Which of the following individuals is required to pass an insurance licensing exam in order to reinstate their license due to a failure to meet CE requirements? - answerAn insurance adjuster ______ are primarily social organizations that engage in charitable and benevolent activities consisting of members of a given faith, lodge, or order, and are usually organized as non-profits. - answerFraternal Benefit Societies Which of the following statements regarding nonforfeiture provisions in life insurance policies is true? - answerAn insurer may defer payments of any cash surrender value for up to 6 months Must offer insureds covered under a group insurance policy the opportunity to either continue or convert their coverage - answerThe insured can submit written proof of the loss Proof of loss is required within _____ days of loss. - answer A licensed insurance consultant: - answerAdvises consumers about their insurance needs for a fee All the following statements regarding the regulation of Medicare supplement policies sold in the state of Arkansas are correct, except: - answerA Medicare Supplement policy must be noncancellable and guaranteed renewable The maximum fine for a single violation of a cease and desist order, which is undertaken with knowledge that it is improper, is subject to a fine of not more than: - answer$10, The qualifications for becoming an insurance producer include which of the following? - answerLicensed business entities must designate an individual producer to be responsible for the entity's compliance with all regulatory requirements Producers must promptly notify the Commissioner in writing of any change of address within ____ days of that change of address. - answer A hearing must be held within how many days after it is requested? - answer What is the maximum fine that may be applied to any person who violates a provision of the Arkansas Insurance Code? - answerA $1,000 fine per violation A blanket accident and health insurance policy would most likely offer: - answerCoverage for participants in a Little League sporting event
The Arkansas Life and Health Insurance Guaranty Association will assume the contractual obligations of an insolvent life insurer up to what amount? - answer$300, Which of the following statements regarding the temporary insurance license is correct?
- answerTemporary licenses may be granted without an exam Under Arkansas law, a group life insurance policy: - answerFor which the group pays the premium, must cover all members, except those that reject coverage in writing When it comes to small group health insurance: - answerA class is a distinct grouping of small employers as shown on an insurer's records Which of the following statements regarding the Commissioner's ability to hold hearings and examine insurer records is false? - answerThe Commissioner may initiate a criminal prosecution against a licensee, which is based on testimony the licensee is compelled to provide at a hearing called by the Commissioner A Whole Life policyowner elects to use his dividends to pay off the policy sooner than originally planned. Which option allows this to occur? - answerPaid-Up Option ________ Insured under Social Security means that a worker has at least 6 work credits during the 13-quarter period ending with the quarter in which the worker dies, becomes disabled, or reaches retirement age. - answerCurrently If a father were to add a Child Rider to a policy to cover his children, when would coverage become effective for a newborn? - answerAt 14 or 15 days of age The Smith family has a $1,000 annual family deductible with a coinsurance provision of 80/20. The family's claims for the year are $200, $300, $400, $500, $300, and $300, totaling $2,000. The insurer is responsible for paying: - answer$ Which of the following statements is accurate concerning the changing of an irrevocable beneficiary? - answerThe beneficiary may be changed only with the written consent of the present beneficiary Jay receives an annual disability benefit of $10,000. His employer contributed 75% of the premium. How much of Jay's benefit is subject to income tax? - answer$7, Which of the following would always be considered a Modified Endowment Contract? - answerSingle Premium Whole Life Alice finds she no longer is able to pay premiums on her $50,000 Whole Life Policy, but needs that amount of protection for her family. Which Nonforfeiture Option provides this protection? - answerExtended Term
Which of the following is true of Medicare Part B? - answerBenefits are funded by a combination of taxes and premium dollars and coverage is elective Life policies are incontestable after ____ years. - answer All of the following statements regarding producer appointments are true, except: - answerAn appointing insurer must file a notice of appointment within 30 days of the first submitted application The Time Limit on Certain Defenses (Incontestable) period is _____ years under individual health and disability contracts - answer Which statement is false? - answerMandatory Second Surgical Opinion is when the physician submits claim information prior to treatment, to determine in advance if the procedure is covered Optional uniform provisions found in health insurance policies are designed to protect the: - answerInsurer The grace period of an individual life insurance policy: - answerIs no less than 30 days Which of the following statements regarding producer appointments is correct? - answerThe Commissioner of Insurance must verify that an individual is eligible to be appointed within 30 days of receiving an application All of the following riders will waive the premiums in the event of a disability, except: - answerGuaranteed Insurability D has an accidental death and dismemberment policy with a $200,000 principal sum and a $100,000 capital sum. While mowing the lawn, D cut off a finger. How much will the policy pay? - answer$ From a tax standpoint, what is the benefit of receiving income benefit payments as opposed to cashing out an annuity after it has been held for several decades? - answerTaxes are only due on the amount of tax-deferred earnings in each payment Edward applies for a disability insurance policy. He pays the initial premium at the time of application and receives a conditional receipt. Three days after the insurance company conducts a medical examination, but before it issues a policy, Edward suffers a stroke. Upon reviewing the results of his medical exam, the company discovers that Edward has been diagnosed with high blood pressure and atherosclerosis. Under the terms of the conditional receipt, the insurance company: - answerDenies the claim because the insurer would not have issued the policy as applied for as standard or better
When an insurer relies on the prior claims history of the group to be insured in determining the rate to be charged, it is called: - answerExperience rating If a policyowner unintentionally pays premiums in excess of the MEC guidelines, the excess premium can be refunded by the insurer within 60 days after the ________. - answerEnd of the contract year All are types of service plans, except: - answerIndemnity Plans Which of the following allows reimbursement benefits to be paid directly to medical providers? - answerAssignment of benefits A married couple wants to have funds available so that the heirs to their estate have the funds necessary to pay the estate taxes. Which of the following would be the most economical and effective way to accomplish this? - answerBuy a Joint Survivorship Life policy The premium charged for new policies obtained by exercising the Guaranteed Insurability Rider is based upon the: - answerAttained age of the insured Which of the following health plans will only cover losses by an approved provider: - answerHMO Which Act was implemented in order to protect consumers from questionable Medicare Supplement Policy marketing practices? - answerNAIC Model Law All of these are payment structure options, except: - answerMonthly Limit Notice of claim is required within _____ days of loss. - answer The _________ clause states what each party exchanges in the contract. - answerConsideration Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least _____ days after providing proof of loss before he or she can take legal action against the insurer. - answer60 days Own occupation is the: - answerInability to perform all duties of one's own occupation In order for a claimant to be eligible for _______ benefits, they must qualify based upon need. - answerMedicaid An insurer offering Medicare Supplements to senior clients must: - answerOffer Core Benefit Plan A if it sells any of the other plans
