FREE DC Insurance Licensing and Regulation Questions and Answers

Question 1

A disability income policy social insurance supplement (SIS) benefit rider:

Accepted Answer

Provides a payment only when the insured is totally disabled, but not receiving any social insurance benefit plans

Answer

Pays benefits only if it turns out the insured is eligible for benefits from social insurance

Answer

Pays a benefit if the insured is injured on the job and qualifies for workers compensation benefits

Answer

Provides for a bonus payment that will match social security disability income benefits, if they are paid

Question 2

A health maintenance organization (HMO) plan reduces costs by promoting?

Accepted Answer

Preventative care

Answer

After-hours care

Answer

Generic care

Answer

Fee for service care

Question 3

Renewable term insurance can be best described as :

Accepted Answer

A level death benefit with an increase in premium

Answer

A level death benefit with a decrease in premium

Answer

A decreasing death benefit with a level premium

Answer

An increasing death benefit with a level premium

Question 4

The basic feature of a managed care indemnity plan is that the participants:

Accepted Answer

Select a provider and submit claims to the insurance company

Answer

Select a provider at work and claims processor

Answer

Pre-select a physician and third-party claims administrator

Answer

Pre-select a clinic and submit claims to the insurance company

Question 5

How do rights of an irrevocable beneficiary differ from those of a revocable beneficiary?

Accepted Answer

An irrevocable beneficiary has a vested right that neither the policy owner nor his creditors can impair without the beneficiary's consent

Answer

An irrevocable beneficiary may be changed by the policy owner without the beneficiary's consent

Answer

A revocable beneficiary can become the policy owner at any time by paying the premiums

Answer

An irrevocable beneficiary has the right to name a contingent beneficiary for the policy