AD Banker Comprehensive Final Exam Questions with answers. 100% pass rate. 2022/2023.

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AD Banker Comprehensive Final Exam Questions with answers. 100% pass rate. 2022/2023. Dividends if declared are paid: A. Annually B. Semi-annually C. Monthly D. Quarterly - ✔✔A. Annuall... y An insured dies within the time limit of an Increasing Term Rider and the beneficiary receives the face amount plus the value of all paid premiums. Which rider is attached to the policy? A. Return of Cash Value B. Term to age 100 C. Return of Premium D. Waiver of Premium - ✔✔C. Return of Premium Medicare Part A enrollment is mandatory for all citizens and legal residents at age: A. 60 B. 62 C. 65 D. 59 1/2 - ✔✔C. 65 Once a policy is classified as a MEC, it will maintain that classification for A. For 7 years B. The life of the policy C. For 10 years D. Until the issue of overfunding is resolved - ✔✔B. The life of the policy Life insurance will be considered 'incidental' to a qualified plan if the insurance amount is not more than ________ times the expected monthly benefit amount. A. 200 B. 250 C. 100 D. 150 - ✔✔C. 100 Which of the following would likely be considered a deceptive advertising? A. Failure to include a statement that the insurer is a member of the California Insurance Guarantee Association B. A statement that the insurer handles claims quickly and efficiently C. A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability D. Including a statement of the insurer's current financial strength rating - ✔✔C. A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability A copy of an application becomes part of the entire contract: A. When it is signed by the applicant B. If the policy is issued as applied for C. If it is attached to the policy D. When it is mailed to the insurer by the producer - ✔✔C. If it is attached to the policy Under the California Senior Market and Policy Illustrations rules, all preprinted illustrations containing non-guaranteed values must show the: A. Guaranteed portion of any dividends projected B. Columns of any guaranteed values in bold print C. Historical interest rates credited by the insurer to such polices D. Agent's license number and other relevant contact information - ✔✔B. Columns of any guaranteed values in bold print If a person does not enroll in Medicare Part D when first eligible after age 65 and goes more than 63 days before enrolling, a cumulative penalty of _____% for each month the beneficiary has no 'creditable coverage' for prescription medications will be charged upon subsequent enrollment. A. 1.5% B. 1% C. 1.75% D. 1.25% - ✔✔B. 1% When reviewing an application, the underwriter decides to reclassify the risk. What does that mean for the client? A. The premium could increase or decrease B. The death benefit could increase or decrease C. The mode could increase or decrease D. The policy period could lengthen or shorten - ✔✔A. The premium could increase or decrease Which Settlement Option pays a specified dollar amount until benefits are exhausted? A. Fixed Period B. Life Income C. Fixed Amount D. Interest Only - ✔✔C. Fixed Amount Which of the following defines a Surplus Lines Broker? A. They are brokers who deal with direct writing companies only B. They are brokers who accept business only from non-resident agents C. They place risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D. They are brokers that deal with admitted carriers only - ✔✔C. They place risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers All life insurance HIV tests require what from the proposed insured? A. Informed consent B. Payment in advance C. An exclusion D. A wavier - ✔✔A. Informed Consent Group blanket insurance covers a group of individuals whose membership changes frequently, such as students, passengers traveling on a common carrier, sports teams, volunteer firefighters, or other groups of people while being exposed to a(n) _______ risk: A. Quantifiable B. Specific C. Guaranteed D. Uninsurable - ✔✔B. Specific Karen, age 50, withdraws $1,000 from her Health Savings Account (HSA) for a purpose other than a qualified medical expense. As a result of this action: A. The $1,000 is taxed as ordinary income, with an additional $150 penalty tax applied B. The $1,000 is taxed as ordinary income, with an additional $200 penalty tax applied C. The $1,000 is taxed as ordinary income, with no penalty tax applied D. The $1,000 is taxed as ordinary income, with an additional $100 penalty tax applied - ✔✔B. The $1,000 is taxed as ordinary income, with an additional $200 penalty tax applied A type of provider that consists of employers who pay claims out of their own funds instead of funding claims as an insurer is known as what type of provider? A. Practicing medical B. Self-Insured C. Service D. Indemnity - ✔✔B. Self-Insured All of the following life insurance policies have a cash value that increases based on interest being credited to the cash value, except: A. Universal Life B. Current Assumption Whole Life C. Variable Universal Life D. Equity-Indexed Whole Life - ✔✔C. Variable Universal Life Which of the following is not a fixed type of an annuity? A. Indexed B. Guaranteed C. Variable D. Fixed - ✔✔C. Variable Which of the following identifies the parties to the contract and the perils it covers and the circumstances under which the insurer will pay a life insurance policy claim? A. Insuring Clause B. Entire Contract Clause C. Consideration Clause D. Exclusions Provision - ✔✔A. Insuring Clause All of the following are transactions that qualify as a 1035 exchange, except: A. A fixed annuity into an adjustable life insurance policy B. A variable whole life policy into an equity indexed annuity C. An equity indexed life insurance policy into a qualified long-term care policy D. A traditional whole life policy into a qualified long-term care policy - ✔✔A. A fixed annuity into an adjustable life insurance policy Which of the following statements is false regarding the Affordable Care Act? A. It established the Health Insurance Marketplace B. It requires all employers to provide health insurance to their employees C. It consists of a combination of measures to control healthcare costs, and an expansion of coverage through public and private insurance including broader Medicaid eligibility and Medicare coverage, and subsidized, regulated private insurance D. Its goals are increasing the quality and affordability of health insurance, lowering the uninsured rate by expanding public and private insurance coverage, and reducing the costs of healthcare for individuals and the government - ✔✔B. It requires all employers to provide health insurance to their employees Medicare Supplement Plan A benefits include all of the following, except: A. Coverage under Medicare Parts A and B for the actual cost of the first 8 pints of blood B. Coverage of Part A Medicare eligible expenses for hospitalization to the extent not covered by Medicare from the 61st day through the 90th day in any Medicare benefit period C. Coverage of cost sharing for all Part A Medicare eligible hospice care and respite care expenses D. Coverage for the coinsurance amount of Medicare eligible expenses under Part B regardless of hospital confinement, subject to the Medicare Part B deductible - ✔✔A. Coverage under Medicare Parts A and B for the actual cost of the first 8 pints of blood All of the following were eliminated under the PPACA for preventive care and medical screenings, except: A. Premiums B. Copayments C. Deductibles D. Coinsurance - ✔✔A. Premiums Which of the following is not a major source of underwriting information? A. Medical exams B. Attending Physician's Statement C. The application D. Past life insurance owned - ✔✔D. Past life insurance owned Open enrollment periods are offered on a(n) ______ basis that allows individuals to enroll without evidence of insurability or to make changes. A. Bi-annual B. Annual C. Semi-annual D. Quarterly - ✔✔B. Annual A mandatory participation rate for noncontributory group plans is designed to: A. Reduce adverse selection B. Maximize the premium an insurer collects C. Allow the employer to obtain the greatest premium discount D. Achieve economies of scale - ✔✔A. Reduce adverse selections An insured with a participating life insurance policy receives an annual dividend check in the mail. He must have selected which Dividend Option: A. Accumulate at interest B. Cash C. Dividend reinvestment D. Premium reduction - ✔✔B. Cash A producer may be guilty of misrepresentation if he/she: A. Requested timely written notice of loss for all claims B. Issued a settlement check that totally releases the insurer C. Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy D. Denied a claim for failure of the policyholder to prove damages - ✔✔C. Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy The JKL Insurance Company is incorporated in Switzerland has its home office in Florida and is authorized to conduct the business of insurance to Californians through its branch office in Rancho Mirage. To the State of California, JKL is a: A. Domestic insurer B. Alien insurer C. Sovereign insurer D. Foreign insurer - ✔✔B. Alien insurer If the original Medicare Supplement policy has been in force for less than ______ months, the replacing insurer must waive any time periods applicable to preexisting conditions to the extent that they have already been satisfied under the original policy. A. 6 B. 12 C. 18 D. 9 - ✔✔A. 6 The free look period provisions apply to which one of the following situations? A. Policies issued in connection with a new purchase or a replacement purchase B. Policies issued in connection with a credit transaction C. Policies issued in connection with a conversion privilege D. Policies issued in connection with a contractual policy change - ✔✔A. Policies issued in connection with a new purchase or a replacement purchase The value within a permanent life insurance policy that the policyowner can access through a policy loan or policy surrender is known as the A. Annuity Value B. Endowment Value C. Cash Value D. Rider Value - ✔✔C. Cash value Which of the following best describes the consideration on the part of an insurer? A. The offer of the contract B. The purpose of the contract must be legal C. The acceptance of the contract D. The promise to pay in the event of a covered claim - ✔✔D. The promise to pay in the event of a covered claim Options allow for the distribution of the life insurance death benefit, to the named beneficiary or contract owner, as the situation warrants. Accumulation B. Dividend C. Settlement D. Nonforfeiture - ✔✔C. Settlement Harry, the annuitant of a non-qualified tax deferred annuity with $40,000 cash value chooses the Life Income with Refund Payment Option when he annuitizes the policy. After receiving $1,000 each month for 80 months, Harry suddenly dies. How much will his beneficiary, his wife Lucille, receive? A. $80,000 B. Zero C. Payments over the rest of her life D. $40,000 - ✔✔B. Zero If a group Medicare Supplement policy is terminated by the group policyholder, the insurer must offer a certificate holder: A. A full refund of any premiums paid less any benefits paid out B. An individual policy with enhanced benefits at a lower premium C. A full refund of any premiums paid D. An individual policy providing the same benefits as the group policy or an individual policy that provides only benefits required to meet the minimum standards - ✔✔D. An individual policy providing the same benefits as the group policy or an individual policy that provides only benefits required to meet the minimum standards Jacob owns a policy that pays a death benefit only if he dies within the 20-year policy period. If Jacob dies anytime that the policy is in force, his beneficiary will receive $100,000. The premium that Jacob pays for this policy will be the same throughout the 20-year policy period. Jacob owns: A. An Increasing Term policy B. A Level Term policy C. A Decreasing Term policy D. A Re-Entry Term policy - ✔✔B. A level term policy With a Variable Life Policy, which of the following is guaranteed? A. Dividends B. Investment returns C. Cash value D. Death benefit - ✔✔D. Death benefit Which of the following is a likely outcome if a buy-sell agreement in a two person partnership is not in place when one of the partners dies? A. Partnership transfer taxes are due within 9 months B. The agreement will need to go through the probate process C. The surviving spouse of the deceased becomes the other partner D. The value of the business will increase - ✔✔C. The surviving spouse of the deceased becomes the other partner One of your clients just reinstated his health insurance plan. When is coverage effective for sickness and accident? A. 10 days for sickness, and immediately for accidental injuries B. Immediately for both accident and sickness C. 10 days for accident and 48 hours for sickness D. 30 days for sickness, immediate coverage for accidents - ✔✔A. 10 days for sickness, and immediately for accidental injuries Medicare Advantage plans are offered by ___________ that contract with Medicare to provide both Part A and Part B benefits and typically prescription drugs. A. Physician groups B. Private insurance companies C. State governments D. Hospitals - ✔✔B. Private insurance companies In order to be in a Medicare __________ plan, enrollment in both Medicare Parts A and B is required and premium payments for Part B must be continued. A. Health B. Advantage C. Life D. Medi-Cal - ✔✔B. Advantage All the following qualify for Medicare Part A, except: A. Healthy individuals who are under age 65 and not covered by Social Security, but are willing to pay the Part A premium B. Individuals covered by Social Security who have end-stage renal disease C. Individuals age 65 or over not covered by Social Security, but willing to pay the Part A premium D. Individuals covered by Social Security who are age 65 or over - ✔✔A. Healthy individuals who are under age 65 and not covered by Social Security, but are willing to pay the Part A premium A product designed to provide coverage for necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital is called: A. Long-Term Care B. Medicare Supplement C. Retirement Benefits D. Outpatient Care - ✔✔A. Long-term care [Show More]

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