模拟考试错题+易错题
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 - With the interest only option, the insurance company retains the policy proceeds and pays interest on the proceeds to the recipient at regular intervals
How much of the premium is paid by employees participating in a non-contributory plan?
0% [100% by employers]
An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin?
1
what is the maximum period that an insurer would pay benefits in accordance with an Additional monthly benefit rider
1 year [after 1 year, the insurer ends the benefit and assumes that SS will then begin bene pmt]
the superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business. which of the following would be a violation of controlled business practice
15% of the agent's annual commission is from business sold to the agent's family.
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days [investigative consumer reports cannot be made unless the consumer is advised in writing about the period within 3 days of the date of report was requested]
a candidate for a life and health agent license would need to complete how many hours of prelicensing education?
40 hours
in addition to examinations that are specifically authorized by the insurance code, the superintendent may examine each domestic life insurer as often as it is deemed necessary for the protection of the consumers. the code requires examination of domestic life insurers every
5 years
the waiting period before a qualified person can receive social security disability benefit is
5months
under the ACA, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event
60 days, [unless specifically stated otherwise, individuals or enrollees have 60 days from the date of triggering event to select a qualified health plan
under the NY state disability benefit law, for an employed individual, disability benefits will be payable after a waiting period of
7 days
How many eligible employees must be included in a contributory health insurance plan?
75%
how long after the date of issue may an insurer cancel an accident and health policy
90 days to cancel a policy by written notice
a hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
which of the following is TRUE regarding the insurance amount in a credit life policy
Creditor can only insure the debtor for the amount owed.
all of the following are business uses of life insurance EXCEPT
Funding against general company financial loss
what does guaranty association guard against
Insurer insolvency
what is NOT a benefit of a POS plan?
It allows guaranteed acceptance of all applicants. [a diff choice can be made every time a need arises for medical services]
which of the following statements concerning the MIB is correct
MIB assists underwriter in evaluating and classifying risks
all of the following statements about Medigap are correct EXCEPT
Medigap policies cover the cost of extended nursing home care [Medigap policies do not cover the cost of extended nursing home care. Medigap plans are designed to fill the gap in coverage attributable to Medicare's deductibles, copayment requirements, and benefit periods. These plans are issued by private insurance companies]
When does Medicare cover nursing home care?
Only if it is part of treatment for a covered illness or injury
Pertaining to insurance, what is the definition of a fiduciary responsibility?
Promptly forwarding premiums to the insurance company
which of the following does NOT have to be disclosed in a LTC policy
The aggregate amount of premiums due
an insured has a social insurance supplement rider in her disability income plan. following a disability, she begins receiving benefit payments from the insurer. she then begins receiving social security benefits that are smaller than the SIS benefit payments. at that point, her insurer ends the SIS benefit payments, which of the following best describes the situation?
The insured should contact the insurer to confirm her actual Social Security benefit amount. The SIS rider should pay the different between the rider amount and the actual benefit
which of the following best describes what the annuity period is
The period of time during which accumulated money is converted into income payments [The "annuity period" is the time during which accumulated money is converted into an income stream.]
Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?
They are tax deferred on both contributions and earnings until funds are withdrawn.
which of the following is nOT true regarding equity indexed annuities
They earn lower interest rates than fixed annuities
what is the purpose of a benefit schedule
To state what and how much is covered in the plan
which of the following is NOT considered Business of life settlement
a producer discusses the advan of uni life policy and how the flexible premium allows the owner to control the cv and db income [NO INSURABLE INTEREST TO THE INSURED]
which of the following individuals must pass the written examination to be licensed as an insurance agent
a producer previously licensed in NJ who is applying for a NY license 120 days after becoming a resident of this state
How can a new physician be added to the PPO's approved list?
agree to follow the PPO standards and charge the appropriate fees
Who can make a fully deductible contribution to a traditional IRA?
an individual not covered by an employer-sponsored plan who has earned income [self-employer]
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
an unfair trace practice [It is an unfair trade practice to make any statement that an insurer's policies are guaranteed by the existence of the insurance guaranty association]
an IRA contribution can be made from which of the following
cash = "contribution"
a long stretch of national economic hardship causes a 7% rate of inflation. a policyowner notices that the face value of her life insurance policy has been raised 7% as a result. which policy rider caused this change?
cost of living rider
which of the following statements describes one of the reasons individuals purchase life insurance
creates an immediate estate
which of the following types of insurance policies is most commonly used in credit life insurance
decreasing term
which of the following is NOT a cost-sharing service in a medical plan
denial of coverage [cost-sharing= case mgmt provisions, include: controlled access of providers, large claim mgmt, preventive care, hospitalization alternatives, 2nd surgical opinions, preadmission testing, catastrophic case mgmt, risk sharing and high quality of care
all of the following are features of a health insurance plan purchased on the health insurance marketplace EXCEPT
dollar limits on essential benefits
at a hearing, a person has the opportunity to do all of the following EXCEPT
file for dismissal of charges [ALLOW give evidence why an order should not be made; obtain witnesses on his or her own behalf; appear in person and by counsel]
a universal life insurance policy has two types of interest rate that are called
guaranteed and current [the insurer credits the cash value in the policy with a current (nongua) int rate and backs the cv with a contract (gua) rate of int]
according to the fair credit reporting act, all of the following statements are true EXCEPT
if an applicant is declined for an insurance policy, he has no right to know what was in the report
if a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do
inform the insurance company
which of the following is NOT true regarding a noncancellable policy
insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
which of the following is true regarding health insurance
it could provide payments for loss of income [health insurance is a generic term. encompassing several types of insurance contracts, which, though related, are designed to protect against diff risks. it provides coverage for expenses related to health care, loss of income, and disability income]
all of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
it is a life contingency option
which of the following is true regarding a single life settlement option
it provides income the beneficiary cannot outlive [the single life option can provide a single beneficiary income for the rest of his/her life. upon the death of the bene, the pmt stops]
under workers compensation, which of the following benefits are NOT included
legal benefits [INCLUDE: medical and rehabilitation, income, and death bene]
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 [Premium payments will cease at her age 65, but coverage will continue to her death or age 100]
which of the following indicates how much of the health coverage premium must go toward actual medical care
medical loss ratio MLR
the coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called
nonoccupational coverage [most group disability income is nonoccupational coverage, covering insureds only off the job. the employer carries workers compensation for on the job injuries or sickness]
During replacement of life insurance, a replacing insurer must do which of the following?
obtain a list of all life insurance policies that will be replaced
An insured has a life insurance policy from a participating company and receives quarterly dividends. he has instructed the company to apply the policy dividends to increase the death benefit. the dividend option that the insured has chosen is called
paid-up additions
which of the following is correct concerning the taxation of premiums in a ket-person life insurance policy
premiums are not tax deductible as a business expense
in group insurance, the primary purpose of the coordination of benefits provision is to
prevent claimants from profiting from an injury or sickness
medicare part a services do not include which of the following
private duty nursing [cover: post hospital skilled nursing, hospitalization, hospice care]
which of the following statements is an accurate comparison between private and government insurers
private insurers may be authorized to transact insurance by state insurance department
utilization management consists of an evaluation of the appropriateness, necessity and quality of health care, and may include
prospective and concurrent review
which of the following is NOT specifically prohibited by state law as an unfair trade practice
reducing the premiums paid by employers for group insurance based on loss experience
which of the following is NOT a characteristic of a managed care plan
risk retention [应该是risk sharing, controlled access of providers, comprehensive care mgmt, preventive care]
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
signed waiver of premium
which of the following would help prevent a universal life policy from lapsing
target premium
your client wants to know what the tax implications are for contributions to a health savings account. you should advise her that the contributions are
tax deductible
all of the following would be different between qualified and nonqualified retirement plans EXCEPT
taxation on accumulation [BOTH DEFERRED]
Children's riders attached to whole life policies are usually issued as what type of insurance?
term
an applicant completes an application for a disability policy and pays the initial premium. the producer ives the applicant a conditional receipt. insurance coverage for the applicant will become effective when
the insurance company accepts the risk
which of the following is nOT a feature of a guaranteed renewable provision
the insurer can increase the policy premium on an individual basis [CLASS BASIS]
If an insured continually uses the automatic premium loan option to pay the policy premium,
the policy will terminate when the cash value is reduced to nothing
life settlement contract must be approved by which of the following
the superintendent of insurance
which of the following is true regarding health insurance policies
they only cover specific accidents or diseases
every medicare supplement policy must have a notice to buyer on the front page that states which of the following
this policy may not cover all of your medical expense
what is the purpose of establishing the target premium for a universal life policy
to keep the policy in force
which of the following would lest likely be considered a legitimate need that would be paid by insurance proceeds
vacation travel expense
if seeking repayment of medicaid funds per the medicaid estate recovery act would cause a hardship to survivors, states may
waives the estate recovery requirement [states are allowed to waive estate recovery actions if the recovery of medicaid funds would cause a undue hardship]
which of the following types of insurance policies would perform the function of cash accumulation
whole life
an employee is injured in a construction accident, rendering him unable to work for a year. which of the following plans would provide him with medical expense coverage and income assistance
workers compensation
