Pretest questions
all of the following long-term care coverages would allow an insured to receive care at home EXCEPT
skilled care
what is the period of coverage for events such as death or divorce under COBRA
36 months
if an insurance company offers medicare supplement policies, it must offer which of the following plans?
A
What is the benefit of choosing extended term as a nonforfeiture option
It has the highest amount of insurance protection
all of the following are nonforfeiture options EXCEPT
interest only
which of the following is correct regarding credit life insurance?
it insures the life of a debtor
what percentage of individually-owned disability income benefits is taxable
0%
the commissioner of insurance issues a cease and desist order and immediately receives a request for the charges to be reviewed in a hearing. within what number of days must the hearing be held?
10
the insurers are allowed to disclose the HIV-related test result to all the following EXCEPT
Another insurer
all of the following would be qualified as a dependent under a dependent care flexible spending account, EXCEPT
Jeremy who had to have both legs amputated, but has learned how to take care of himself and to get around in a wheelchair
Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called
Key employee disability insurance
after filing a claim, an insured tells the insurer that there is more than one insurance policy in force. that insurer sets aside the claim until it hears what the other company will pay. the insurer's action will be classified as?
unfair
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
Insurers may change which of the following on a guaranteed renewable health insurance policy?
rates by class
any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice is known as
rebating
all of the following are to be included in the application for a certificate of authority to act as an HMO except
records of previous insurers
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
revocable
a medical expense policy that establishes the amount of benefits paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
usual, customary and reasonable
which two terms are associated directly with the way an annuity is funded
Single payment or periodic payments
Which of the following is true of a PPO?
The person does not need to choose a primary care physician to coordinate care
how many pairs of glasses in a 12-month period will a vision expense insurance plan cover
one
Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT
Premiums always stay the same
the medical information bureau (MIB was created to protect
insurance companies from adverse selection by high risks persons
what type of care is respite care
relief for a major care giver
which policy component decreases in decreasing term insurance
face amount
which of the following is the closest term to an authorized insurer?
admitted
when an insured purchased her disability income policy she told the agent she was 30 years old when in fact she was 37 if the policy contains the optional misstatement of age provision
amounts payable under the policy will reflect the insured'
Who can make a fully deductible contribution to a traditional IRA?
an individual not covered by an employer-sponsored plan who has earned income
in texas, the commissioner of insurance is
appointed by the governor
which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?
basic information about supplementary policies
according to the provisions of the patient protection and affordable care act, all of the following are required preventive care services except?
cervical cancer for all women starting at age 40
a waiver of premium provision may be included with which kind of health insurance policy
disability income
what is the goal of the HMO
early detection through regular checkups
which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
fraternal benefit society
how long is a newborn covered without notification to the insurer?
from the moment of birth, and the insurer must be notified within 31 days
as it pertains to group health insurance, COBRA stipulates that
group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense
An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits?
have accumulated 6 work credits in the past 3 years
in long-term care(LTC) policies, as the benefit lengthens the premium
increases
an insured has endured multiple surgeries and hospitalizations for an illness during the summer months. her insurer no longer bills her for medical expenses. what term best describes the condition she has met?
stop-loss limit
which of the following disability income policies would have the highest premium
15-day waiting period / 10-year benefit period
anyone who violates the insurance code of texas may be fined up to
25,000
which of the following persons is required to hold a producer license
a person who negotiates insurance contracts
all of the following information must be disclosed to the viator prior to the execution of a viatical settlement contract except
availability of stranger-originated life insurance(STOLI)
a father purchases a life insurance policy on his teenager daughter and adds the payor benefit rider. in which of the following scenarios will the rider waive the payment of premium
if the father is disabled for more than 6 months
which of the following is NOT true regarding the accumulation period of an annuity
it would not occur in a deferred annuity
Which of the following settlement options in life insurance is known as straight life?
life income
which of the following is considered a presumptive disability under a disability income policy
loss of two limbs
under an individual disability policy the minimum schedule of time in which claim payments must be made to an insured is
monthly
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
mutual
what is the purpose of COBRA
to provide continuation of coverage for terminated employees
a policyowner has a health insurance policy with his wife listed as the primary beneficiary. he would like to change the primary beneficiary to his sister. which of the following is true?
unless the policy designated the current beneficiary as irrevocable, the policyowner can make the change at any time
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?
viatical settlement
which of the following applies to partial disability benefits
payment is limited to a certain period of time
An agent explains the details of a life insurance policy to a client. The agent does not realize, however, that the state has recently rewritten two of the provisions. As a result, the agent inadvertently misrepresents the policy, making it more attractive than it really is. What best describes this situation?
there is no misconduct
How are contributions to a tax-sheltered annuity treated with regards to taxation?
they are not included as income for the employee, but are taxable upon distribution
which of the following is correct concerning the taxation of premiums in a key person life insurance policy
premiums are not tax deductible as a business expense
which of the following is an example of a producer being involved in an unfair trade practice of rebating?
telling a client that his first premium will be waived if he purchases the insurance policy today
Under the ACA, health insurance can no longer be underwritten based on which of the following factors?
the applicant's health condition
Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
the employer is the owner and the beneficiary
An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?
no benefits
which of the following information will be stated in the consideration clause of a life insurance policy
the amount of premium payment
which of the following is TRUE regarding variable annuities?
the annuitant assumes the risks on investment