Life & Health Missed Questions
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least
12 months
An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
120 a day
An applicant for insurance is requesting more information from her agent about a claim that is currently being settled. Within what time period must the agent respond?
15 days
How many long-term care policies can be sold to an insured within a 12-month period before the number of policies is considered to be unnecessary?
2
All insurance policies and annuity contracts delivered to senior citizens in the State of California are subject to a cancellation period of at least
30 days
What is the penalty for IRA distributions that are below the required minimum for the year?
50%
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
According to the PPACA rules, what percentage of health care costs will be covered under a bronze plan?
60%
As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?
8
Comprehensive Major Medical Plan
A comprehensive major medical plan is a combination of basic expense coverage and major medical coverage, sold as one policy. These policies include a deductible and coinsurance
Representations in insurance contracts qualify as
A person receiving Supplementary Security Income assistance
A deductible is
A specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits
What do Modified Life and Straight Life policies have in common?
Accumulation of cash value
All of the following are essential benefits required to be included in all health plans purchased in the Marketplace EXCEP
Adult dental care.
Harry has a disability that prevents him from doing certain kinds of work. Because of his qualifications, he responds to a recruitment ad and is hired for the position. What federal act allows him to apply for the job?
Americans with Disabilities Act
When an annuity is written, whose life expectancy is taken into account?
Annuitant
All of the following qualify for Medicare Part A EXCEPT
Anyone who is willing to pay a 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 full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application dat
What document describes an insured's medical history, including diagnoses and treatments?
Attending Phasicians Statement
The agent is known as the "Field Underwriter" because of the information he/she gathers for the insurer. This helps the insurer
Avoid adverse selection.
Which describes the features of a comprehensive major medical policy
Basic medical expense benefits are provided in a single package.
Which of the following statements regarding Business Overhead Expense policies is NOT true?
Benefits are usually limited to six months.
Services provided by the Health Insurance Counseling and Advocacy Program are paid for
By state and local governments
In this state, what is the primary body of laws established by the state legislature to regular the business of insuranc
California Insurance Code
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
Which of the following is NOT true regarding Basic Surgical Expense coverage?
Coverage is unlimited
Which of the following is NOT a legitimate use of annuities by businesses?
Creating a tax shelter
What is another name for interest-sensitive whole life insurance?
Current assumption life
Which component increases in the increasing term insurance?
Death Benefit
In which distribution system must the potential client take the initiative and respond to an advertisement through a telephone or mail contact with the insurer?
Direct Response
All of the following statements concerning dividends are true EXCEPT
Dividend amounts are guaranteed in the policy.
If an agent unwittingly gives a client incorrect information, what professional insurance would pay for losses or defend the agent against any resulting lawsuits?
Errors and Omissions
You did not enroll in Medicare Part B when you first became eligible. Which of the following would allow you another opportunity to enroll?
General enrollment period
The automatic premium loan provision is activated at the end of the
Grace period
HICAP
HICAP does not sell policies or recommend agents or companies. It provides free assistance in analyzing policies and explaining coverage to clients.
Which of the following is an eligibility requirement for all Social Security Disability Income benefits?
Have attained fully insured status
Medical Savings Accounts (MSAs) are available to small business employees and self-employed individuals who have
High deductible health insurance.
All of the following would fall under the definition of Durable Medical Equipment EXCEPT
Hospital blankets.
he key factor of representation that allows the injured party to rescind the contract is
If the representation is false in a material point.
The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT
Individual tax deduction for premiums paid.
If a client has purchased a long term care policy that a HICAP counselor determines to be inadequate for the needs of the client, the counselor will
Inform the client of the inadequacies in the policy.
Which of the following is NOT one of the services that HICAP offers to consumers?
Insurance sales
What is the main purpose of the Seven-pay Test?
It determines if the insurance policy is a MEC.
Which of the following is NOT true regarding a flexible spending account?
It does not have limits on contributions.
All of the following statements about Medicare Part B are correct EXCEPT
It is a compulsory program.
Which of the following is TRUE regarding the accumulation period of an annuity?
It is a period during which the payments into the annuity grow tax deferred.
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay double or triple the face amount.
Variable Whole Life insurance is based on what type of premium?
Level fixed
All of the following are true regarding the Medical Information Bureau (MIB) EXCEPT
MIB reports are based upon information supplied by doctors and hospitals.
Which of the following is NOT correct concerning a medical savings account (MSA)?
MSAs are only available to groups with at least 100 employees. (50 or fewer)
Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life?
Need is predicted using the number of years until the insured's retirement
Charges for services provided through a HICAP agency are
Never made to the client
The classification Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed
No more than 100 employees
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
Notice Regarding Replacement
Which of the following is true about labor unions, fraternals and co-ops?
Notice Regarding Replacement.
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called
Preferred Provider Organization (PPO)
Which of the following will be included in a policy summary
Premium amounts and surrender values
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe?
Presumptive disability
What describes a situation when poor risks are balanced with preferred risks, and average risks are in the middle?
Profitable distribution of exposures
A Medicare SELECT policy does all of the following EXCEPT
Prohibit payment for regularly covered services if provided by non-network providers.
One of HMO's distinguishing features is that it
Provides for both medical services and the method of financing of medical services.
All of the following are actual deductibles found in medical insurance policies EXCEPT
Replacement
Which type of beneficiary is changeable at any point?
Revocable
Adverse selection is a concept best described as
Risks with higher probability of loss seeking insurance more often than other risks
What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?
Section 1035 Policy Exchange
Which of the following is an example of a peril covered in an accident and health insurance policy?
Sickness
Restoration of Benefits is most beneficial to the insured when they
Suffer a large loss
What is the name of a federal regulation designed to accomplish pension equality, and to protect group insurance plan participants?
The Employee Retirement and Income Security Act of 1974 (ERISA).
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?
The annuitant will receive the higher of either the guaranteed minimum rate or current rate.
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
What happens if a non-member physician is utilized under the Point-Of-Service plan?
The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount.
If a life insurance policy has an irrevocable beneficiary designation
The beneficiary can only be changed with written permission of the beneficiary.
Which answer is true about extension of benefits in group disability policies?
The benefits are extended if a disabled person's coverage terminates as a result of a discontinued group plan.
Group underwriting is beneficial in comparison to individual underwriting due to which of the following reasons?
The cost of coverage is generally lower due to the reduction of risk
Which of the following describes the tax advantage of a qualified retirement plan?
The earnings in the plan accumulate tax deferred.
Who determines the eligibility and contribution limits of an HRA?
The employer
For an individual who is eligible for Medicare at age 65, and who is still employed and covered under the employer's plan, which of the following is true?
The employer plan is primary coverage, and Medicare is secondary coverage.
An insured had $500 left in his Health Reimbursement Account when he quit his job. What happens to that money?
The insured can have access to the $500 at his previous employer's discretion.
When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The insured's contingent beneficiary
All of the following are general requirements of a qualified plan EXCEPT
The plan must provide an offset for social security benefits.
How does a member of an HMO see a specialist?
The primary care physician refers the member
An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense. Which of the following is true
There will be a tax.
Which of the following is true regarding commissions for Medicare supplement policies?
They are permitted up to a certain amount for each policy.
Which of the following statements regarding deferred compensation funds is INCORRECT?
They are usually qualified plans.
Regarding Medicare SELECT policies, what are restricted network provisions?
They condition the payment of benefit
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
Third-party ownership
What is the purpose of COBRA?
To allow continuation of health insurance coverage for terminated employees
HICAP counselors are primarily
Trained and registered volunteers
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy
Needs Approach
determined by the predicted needs of the family after the premature death of the insured, which must be assumed will happen immediately. The policy allows for benefits to be collected upon the insured's death.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
he death benefit can be increased by providing evidence of insurability.
Consideration
something of value that is transferred between the two parties to form a legal contract.
Which of the following does NOT describe hospice care?
t provides care to people with life expectancies of 1 to 2 years.
