Life and health final quiz
an insured has Medicare part d coverage. upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
25%
When must an IRA completely distribute when a beneficiary is not named?
December 31 the year that contains the fifth anniversary of the owner's death
When contributions to an immediate annuity are made within before tax dollars, which of the following is true of the distributions?
Distributions are taxable
In which of the following cases would a credit disability policy be issued?
If an individual is in debt to a specific creditor, payments will be made for him/her until the return to work
Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT
LTC policies are marketed effectively to prospective insureds
Which of the following describes taxation of individual disability income insurance premiums and benefits?
Premiums are not tax deductible, and benefits are not taxable
Which of the following is not covered under a dental insurance plan?
Respite care
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity
are insurance company underwriters allowed to discriminate?
Yes, but not unfairly
The benefits for individual disability plans are based on
a flat amount
If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following
adjust the benefit in accordance with the increased risk
all of the following apply to short-term disability plans except
both group an individual plans are renewable
which of the following is true regarding inpatient hospital care of HMO members?
care can be provided outside of the service area
Which of the following is not a characteristic or service of an HMO plan?
contracting with insurance companies
group disability income insurance premiums paid by the employer are
deductible by the employer as ordinary business expense
which of the following best describes the aleatory nature of an insurance contract
exchange of unequal values
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
illegal
annually renewable term policies provide level death benefit for a premium that
increases annually
Which of the following entities protects policyowners, insureds and beneficiaries under insurance contracts with insurers fail to preform contractual obligations due to financial impairment
life and health guaranty association
which of the following is not true regarding policy loans
money borrowed from the cash value is taxable
Which Universal Life option has a gradually increasing cash value and a level death benefit?
option A
When an individual is covered under two health insurance policies that have duplicate benefits which could make a claim for benefits because of an injury or illness profitable, it is called
over insurance
a participating insurance policy may do which of the following
pay dividends to the policyowner
which of the following is not a ratings classification that denotes the level of risk associated with a given insured
poor
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
predicted needs of the family after the insured's death
which of the following will be included in a policy summary
premium amounts and surrender values
All of the following entities regulate variable life policies EXCEPT
the guaranty association
All of the following are true statements regarding the accumulation at interest option EXCEPT
the interest is not taxable since it remains inside the insurance policy
all of the following statements are true regarding installments for a fixed amount except
the payments will stop when the annuitant dies
An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?
the ppo will pay reduced benefits
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
interest only option
If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?
nothing
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
offer supplement policy on a guaranteed issue basis
Which of the following is true about the requirements regarding HIV exams
the applicant must give prior informed written consent
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
How long is the required grace period in life insurance polcies in this state?
1 month
all of the following are ture regarding the guaranteed insurability rider except
this rider is available to all insureds with no additional premium
what is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
application
the automatic premium loan provision is activated at the end of
grace period
A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?
guaranteed
A group blanket health policy is best suited for which of the following?
a summer camp
which of the following best describes annually renewable term insurance
it is level term insurance
within how many days does a licensee have to inform the commissioner of a change of address
30
An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. What kind of penalty would the IRA owner pay?
50% tax on the amount not distributed as required
all of the following can qualify as a trust except
an employee insurance at least 5 employees for the benefit of that employer
who can make a fully deductible contribution to a traditional IRA
an individual not covered by an employer-sponsored plan who has earned incomes
Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?
apparent
under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits.
fixed amount
Which of the following is true regarding health insurance?
it could provide payments for loss of income
a health insurance plan which involves financing, managing, and delivery of health care services and involves a group of providers who share in the financial risk of the plan or who have an incentive to deliver cost effective service is called
managed care plan
on its advertisement a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of
misrepesentation
What type of whole life insurance policy has premiums that are adjusted so that during the first years of the policy, the premiums are lower than those of a straight whole life policy, and in subsequent years the premiums are higher than those of a straight whole life policy
modified life
who is involved in completing the agent report
only the agent
After the elimination period, a totally disabled insured qualified for benefits from a disability income policy that has a waiver of premium rider. What will happen to the premium that was paid into the policy during the elimination period?
premiums will be refunded
Under which provision can a physician submit claim information prior to providing treatment?
prospective review
an insured pays $1,200 annually for her life insurance premium. the insured applies the year's 300 worth of accumulated dividends to the next year's premium. thus reducing it to $900. what option does this describe
reduction of premium
All of the following are considered unfair trade practices in the business of insurance except
sharing commissions
which of the following does not have to be disclosed in a long-term care policy
the aggregate amount of premiums due
all of the following statements about Medicare supplement insurance policies are correct except
the cover the cost of extended nursing home care
An individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. five days later the applicant had to submit to a medical exam. if the policy is issued, what would be the policy's effective date
the date of medical exam
In an adjustable life policy all of the following can be changed by the policy owner except
the type of investment