Insurance MCQ

A provision in a long-term care policy issued in Massachusetts limiting preexisting conditions may not exceed A) 30 days B) 3 months C) 6 months D) 12 months Answer: C) 6 months

Medicare supplement policies in Massachusetts may contain A) waiting periods but not preexisting conditions exclusions B) preexisting conditions exclusions but not waiting periods C) both waiting periods and preexisting conditions exclusions D) neither waiting periods nor preexisting conditions exclusions Answer: D) neither waiting period not preexisting conditions

First-year commissions on Medicare supplements may not exceed A) 75% of the compensation paid in the second year B) 100% of the compensation paid in the second year C) 150% of the compensation paid in the second year D) 200% of the compensation paid in the second year Answer: D) 200% of the compensation paid in the second year

The number of standardized Medicare supplement policies available in Massachusetts is A) 3 B) 5 C) 7 D) 9 Answer: A) 3

Under an individual or group health insurance policy, an insured's newborn child must be covered from A) the moment of birth B) the date the insurer receives any required additional premium C) 31 days after the child's birth D) the child's first birthday D) the child's first birthday Answer: A) moment of birth

Under an individial or group health insurance policy, an insured's dependent children can generally be covered up to the age of A) 19 B) 21 C) 23 D) 26 D) 26 Answer: D) 26

Health insurance policies issued in Massachusetts must provide a free-look period of at least A) 10 days B) 20 days C) 30 days D) 60 days Answer: A) 10 days

Medicare supplement policies may not include renewal provisions less favorable to the insured than A) conditionally renewable B) nonrenewable C) noncancellable D) guaranteed renewable Answer: D) guaranteed renewable

All of the following are permissible exclusions in a long-term care insurance policy EXCEPT A) self-inflicted injuries B) participation in a felony C) acts of war D) Alzheimer's disease Answer: D) Alzheimer's disease

An authorization to conduct an AIDS- related medical examination may remain valid for no more than A) 30 days B) 90 days C) 180 days D) 365 days Answer: B) 90 days

Any person with access to the assets in an insurer's separate account for variable products must be bonded for at least A) $ 10,000 B) $ 25,000 C)$ 50,000 D) $ 100,000 Answer: D) $100,000

When an existing life insurance policy is replaced, the replacement policy must have a free-look period of how many days A) 10 days B) 15 days C) 20 days D) 30 days Answer: C) 20 days

Generally, the maximum period that a life insurance policy my be backdated is A) 1 month B) 3 months C) 6 months D) 9 months Answer: C) 6 months

When a life insurance policy replacement occurs, the producer must provide the insured with a A) premium statement B) policy receipt C) copy of all sale materials D) replacement disclosure notice Answer: D) replacement disclosure notice

The required free-look period of individual life insurance policies with face amount less than $25,000 is A) 7 days B) 10 days C) 20 days D) 30 days Answer: B) 10 days

Which of the following parties is responsible for the payment of examination (audit) expenses? A) the insurer being examined B) The division of insurance C) The Commissioner of Insurance D) The auditing department of the corporation Answer: A) the insurer being examined

A buyer's guide, which must be presented to life insurance policy applicants, is A) generally required to be given before premium is accepted B) a sales tool developed by each life insurance company C) a complete summary of the policy being presented D) always presented to the insured after the policy is issued Answer: A) generally required to be given before premium is accepted

Accelerated benefits provided by a life insurance policy that may provide benefits to pay for long-term care services A) are received tax free like all other life insurance proceeds B) could be taxable in some circumstances C) are paid only from policy dividends D) when paid, have no effect on the death benefit Answer: B) could be taxable in some circumstances

A notice of hearing concerning a license suspension must be delivered by A) messenger B) the Commissioner C) first-class mail D) registered mail Answer: D) registered mail

An insurance producer earning 55 continuing education credits during his second license renewal period A) will lose 10 credits B) may carry 10 credits over to their next renewal period C) needs more credits to renew his license D) will be required to return any extra credits earned Answer: B) may carry 10 credits over to their next renewal period