Question: Which of the following statements is True regarding an Agents Report during policy application process?

Answer: It provides the agents personal observation concerning the proposed insured

Question: Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insureds death was caused by an accident as defined in the policy?

Answer: An accidental death rider

Question: Utilization management consists of an evaluation of the appropriateness, necessity and quality of health care and may include

Answer: Prospective and concurrent review

Question: when agents, brokers, or solicitors handle premiums for an insurer, they are acting in which capacity?

Answer: As a fiduciary

Question: An insurer who transacts insurance in this state but whose articles of incorporation are registered in canada is considered what type of insurer?

Answer: Alien

Question: According to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

Answer: The primary beneficiary died before the insured

Question: A life insurance policy qualifies a modified endowment contract (MEC) if the amount of premium exceeds the amount that would have provided paid up insurance in how many years?

Answer: 7 years

Question: According to the metal level classification of health plans, what percentage of health care costs will be covered under a gold plan?

Answer: 0.8

Question: When replacement is involved, how ling must existing insurers maintain records of replacement notifications?

Answer: 5 years

Question: Which of the following is a preferred solution for reducing the cost of hospitalization?

Answer: Outpatient services

Question: A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will

Answer: Continue to increase

Question: what is another term for a health insurance policy subscriber?

Answer: Participant

Question: An insured is anxious to get treatment for a health condition, and is convinced that a specialist is needed to cure the condition. If the insured has a PPO plan, which of the following is true?

Answer: The insured can select any specialist, but non-network specialist will have higher out of pocket costs.

Question: All of the following are true group life insurance Except

Answer: The insureds each own their own contract

Question: Jason and Jeremy are business partners. If Jeremy should become disabled and unable to work, what type of insurance plan would help jason to buy jeremys business interest?

Answer: Disability Buy-sell

Question: A producer in another state wants to become a producer in Alabama. The other state gives the same privileges to Alabama producers wanting to be licensed in that state as it does its own producers. Alabama therefore extends the privileges of its producers to the prospective producer of the other state. What is this called?

Answer: Reciprocity

Question: All of the following are features of catastrophic plans Except

Answer: High Premiums

Question: Credit disability insurance will pay

Answer: Monthly payments until the insured recovers or the loan is paid off

Question: Which of the following policies can be described as a flexible premium adjustable life policy

Answer: Universal Life

Question: An applicant misstates his age on his application for health insurance policy. He states that he is 39, but his actual age is 49. When he files a claim, what will most likely happen?

Answer: Benefits paid will be those that would have been purchased at the correct age

Question: Cash value guarantees in a whole life policy are called

Answer: Nonforfeiture values

Question: If an applicants health is poorer than that of an average applicant, the policy may be issued

Answer: Substandard

Question: Which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value?

Answer: Variable whole life

Question: Which of the following is NOT one the independent rating services that publishes guides to insurance companies financial integrity

Answer: NAIC

Question: If a producer changes his or her residential address, the Department must be notified of the change within how many days?

Answer: 30