life and health insurance

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what is elimination period for ss disability benefits

5 months

how long is open enrollment for medicare supplement policies

6 months

under which condition would an employees group medical benefits be exepmy from income taxes

an employees group medical benefits be exempt from income taxes

which of the following premium payment modes will incur the lowest overall payment

annual

during the annuity period do the payments grow interest tax deferred

yes

is a term health policy nonrenewable

yes

mr. e wants to become an insurance advisor. his hiring manager informs him that he must post a single security bond to quality. how much money must mr. e post?

$1,000

the min # of credits required for partially insured status for SS disability benefits is

10 credits

a policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. this nontaxable transaction is called

1035 exchange

to be eligible under HIPPA for how long should an individual converting to an individual health plan have been covered under the previous group plan

18 months

employer health plans must provide primary coverage for individuals with end-stage renal disease before medicare becomes primary for how many months

30 months

what is the number of credits required for fully insured status for SS disability beenfits

40 credits

the term "illustration" in a life insurance policy refers to

a presentation of nonguaranteed elements of a policy

concerning insurance, the definition of a fiduciary is

a producer who handles the insurer funds in a trust capacity

if the insured under a disability income policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do what??

adjust the benefit in accordance with the increased risk

at age 30, an applicant wants to start an insurance program, but is realizing that his insurance will likely change, he wants a policy that can be modified to accommodate those changes as they occur. which of the following policies would most likely fit his needs?

adjustable life

according to the law od agency, a principal is represented by an

agent

what documentation grant express authority to an agent

agent's contract with the principal

LTC care insurance policies must cover?

alzheimers

when an annuity is written whose life expectancy is taken into account

annuitant

what is the max period of time during which an insurer may contest fraudulent misstatements made in a health insurance application

as long as the policy is in force

a policyowner fials to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. this is due to what provision

automatic premium loan

if an annuitant dies during the accumulation period, who will receive the benefits

beneficiary

all of the following are true regarding key employee disability income insurance except

benefits are taxable to the employer

which of the following is NOT required to be appointed by an insurer

broker

under which nonforfeiture option does the company pay the sureender value and have no further obligations to the policyowner?

cash surrender

under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner

cash surrender

an insurance contract requires that both the insured and insurer meet certain conditions in order for the contract to be enforceable. what contract characteristic does this descirbe

conditional

what is the contract provision that allows the insurer to nonrenew health coverage if certain events happen

conditionally renewable

in reference to fixed annuities, what compromises most of a life insurance company's general account?

conservative investments like bonds

when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

according to future increase option rider (FIO), what is not a qualifying event to increase an insureds benefit level

death of spouse

when a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

equal to the original policy for as long as a period of time that the cash values will purchase

what is the difference between the medicare approved amount for a service or supply and the actual charge

excess charge

what does level refer to in level term insurance

face amount

if a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

guaranteed insurability rider

a man purchased a $90,000 annuity with single premium, and began receiving payments 2 months after that. What type of annuity is it

immediate

your clients employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain

individual

an insured has a life insurance policy with a face amount of $500. he pays a premium each week to the agent who sold him the policy. what kind of policy does the insured have

industrial life

concerning medicare part b, which statement is incorrect

it is fully funded by social security taxes (FICA)

which of the following is NOT true regarding a COA

it is issued to group insurance participants

which of the following is true regarding a term health policy

it is nonrenewable

a prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. the agent most likely explained which of the following?

nonforfeiture option guarantees that the owner will receive a surrender value of the contract

after a brief emergency room visit, an insured discovered that his plan required a larger copayment for an out of network provider than for a local, in-network provider. Under PPACA provisions, this is

not permitted

regarding taxation of business overhead

premiums are deductible and benefits are taxed

all of the following are true regarding key person disability income insurance except

premiums are tax deductible as a business expense

all of the following are true regarding key person disability income insurance except

premiums are tax deductible as business expense

insurers may change which of the following on a guaranteed renewable health policy

rates by class

which of thee following insurance options would be considered a risk-sharing arrangement surplus lines reciprocal stock mutual

reciprocal

if an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a __-

settlement option

when a group disability insurance policy is paid entirely by the employer, benefits paid to disabled employees are

taxable income to the employee

during the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?

taxable interest will be withdrawn first and 10% penalty will be imposed if under age 59 1/2

which of the following means having an illness or sickness that can be reasonably be expected to result in death in 24 months or less

terminal illness

which of the following is an example of apparent authority of an agent appointed by an insurer

the agent accepts a premium payment after the end of the grace period

which of the following statements about group life is correct

the cost of coverage is based on the ratio of men and women in the group

what type of information is not included in a certificate of insurance

the cost the company is paying for monthly premiums

an adjustable life policyowner can change which of the following policy features

the coverage period

in comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports

the customers associates, friends, and neighbors provide the report's data

the market value adjustment in modified guaranteed annuities refers to which of the following?

the difference between the contracted interest rate and the rate at surrender

what is necessary in order to be eligible to receive benefits from a long-term care policy?

the insured must be unable to perform some activities of daily living

which of the following is NOT covered under plan A in medigap insurance

the medicare part a deductible

the waiver of cost of insurance rider is found in what type of insurance

universal life

what policy would have an IRS required corridor or gap between the cash value and the death benefit

universal life - option A

under the physical exam and autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?

unlimited

if a policy includes a free-look period of at least 10 days, the buyers guide must be delivered to the applicant

with the policy

which of the following statements regarding the taxation of MEC is false

withdrawals are not taxable

if a licensee intentionally violates the insurance code, what is the maximum monetary penalty that he or she would be required to pay

$100,000

an insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. the LTC only charged a $100 per day. how much will the insurance company pay

$120 pay specific fixed dollar amount, regardless of cost of care

an agent selling variable annuities must be registered with

FINRA

which of the following is NOT an insurance plan an insurer can issue

PPO

medicare part d provides

RX

according to the entire contract provision, a policy must contain

a copy of the original application for insurance

all of the following are requirements of eligibility for Social Security disability income benefits except

being age 65

the purpose of managed care health insurance plans is to

control health care claims expenses

all health policies issued in this state must provide all of the following benefits related to adopted children except

coverage for adopte children may be excluded at the discretion of the insurer

what type of insurance covers the whole family in a single contract

family income policy

what is the advantage of having a qualified annuity

favorable tax treatment

the subject of a fraud is valued at $500. the person who committed the fraud is guilty of a

felony

all of the following are business uses of life insurance except

funding against general company financial loss

under which disability income plans would the benefits be subject to income tax

group

which of the following refers to "own occupation" disability

insured is unable to perform duties for which he/she was educated and train to do

policy will pay the death benefit if the insured dies during the 20-year premium paying period, and nothing if death occurs after the 20-year period. what type of policy is this

level term

medicare advantage is also known as

medicare part c

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

can a benefit be up to 50% of a group long term disability plan?

no

do general disability policies cover overseas accidents

no

an insured is involved in car accident. he permanently lost leg and rendered completely blind. his vision improves a month later. what extent will he receive presumptive disability

no benefits

it is an unfair claim settlement practice and a violation of the insurance code for an insurer or nonprofit HSP to do the following except

pay a lower, adjusted, claim due to the accidental misrepresentation of the proposed insured's DOB by the agent

which renewability provision are you most likely to see on a travel accident policy

period of time

an applicant wants to buy a policy that has a cash value element . which type should she buy

permanent

all of the following are true regarding insurance policy loans except

policy loans can be made on policies that do not accumulate cash value

based on human life value approach, which of the following is NOT used to calculate an individuals life value?

predicted needs of the family after the insured's death

when the insured initiates the cancellation of a policy, the unearned premium will be refunded on a

short rate basis

All of the following may participate in SHOP marketplace in MD except

small business in adjacent states

who might receive dividends from a mutual insurer

stockholders

who is responsible for making premium payments in HMO plan

subscriber

which of the following best describes what the annuity is

the period of time during which accumulated money is converted into income payments

which of the following statements is most correct concerning the changing of an irrevocable bene

they can be changed only with the written consent of that beneficiary

what is true regaring medicare supplement policies

they must be guaranteed renewable

j transferred his life insurance policy to his son two years before his death. which is true 1) bc policy has been transferred, it will not be included in J's taxable estate 2) entire face value of policy will be included in J's taxable estate 3) interest portion will be included in j';s taxable estate

2

insured involved in accident, couldn't perform current job for 3 years. if insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?

2 years

in replacement, an existing insurer must provide policyowners with a policyowners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement

20

the free-look provision allows for which of the following

a right to return the policy for a full premium refund

your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. WHat would be the right policy for this client?

limited pay whole life

a health insurance plan which involves financing, managing, and delivery of HCS and involves a group of providers who share in the financial risk of the plan r who have an incentive to deliver cost effective service, is called

managed care plan

all of the following statements concerning the use of life insurance as an executive bonus are correct except

the policy is owned by the company

what is the shortes possible elimination period for group short-term disability beenfits provided by an employer

0 days

a disability income policy is writeen with a 10 month benefit period, a 30 day elim period, 30 day prob period. if insured become disabled due to illness 9 days after effective date, policy will pay benefits for a max of

10 months

in a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective

100%

an individual is inusred under his employers group disability income policy. the insured suffered an accident while on vacation that left him unable to work for 4 months. if the disability income policy pays the benefit, which of the following would be true?

beenfits that are attributable to employer contributions are fully taxable to the employee as income

all of the following are requirement's for life insurance illustrations except

they must be part of the contract

which type of misrepresentation persuade an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another

twisting

paula applied for medicare supplement policy 1 month before her 65th bday. the policy was issued on her bday, jan 31 1998. her producer mailed the policy by certified mail, and paula received the policy on feb 5 1998. how long does paula have to examine the policy and decide whether or not to keep it why

20 days exisiting insurers must provide policyowners with a policy summary for the exisiting life insurance within 20 days of receiving the written communication and replacement

what is the max age for qualifying for a CAT plan

30

to attain currently insured status under ss a worker must have earned at least how many credits during the last 13 Q

6 credits

which of the following statements regarding annuities is correct

annuities provide income that the annuitant cannot outlive

partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

any form of life insurance

which of the following methods of calculating the amount of life insurance needed takes into account the insureds wages, years until requirement, and inflation?

human life value approach

a health insurance policy lapses but is reinstated within an acceptable timeframe. how soon from the reinstatement date will coverage for accidents become effective?

immediately

your clients employer does not offer a company wide annuity contract. what type of annuity contract could your client obtain

individual

an insurer invests the money it receives from premiums paid by its insureds. which of the following is true regarding the interst earned on these investments

it is used to lower premiums

an insured has AD&D with principal of $50,000. he loses eyesight in both eyes in a hunting accident. how much will her receive and why

$50,000 because will pay principal for loss of both eyes or two or more limbs

in order to collect ss disability beenfits, the claimant must be able to demonstrate that the disability will last at least

12 months

a man decided to purchase a $100,000 annually renewable term life policy to provide additional protection until his children finished college. he discovered that his policy

required a premium increase each renewal

a deferred annuity is surrendered prior to annuitization. which of the following best describes the nonforfeiture value of the annuity?

the surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges

which of the following is true regarding METs

they allow several small employers purchase less expensive insurance together


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