Exam FX Life and Health (CA) missed questions #2

What do Modified Life and Straight Life policies have in common?

Accumulation of cash value

What is the minimum fine for acting as an agent for a nonadmitted insurer in the transaction of insurance business?

$500

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

Attending physician

Which of the following plans offers a limited choice of health care providers?

EPO

Which of the following life insurance policies does NOT build cash value?

Guaranteed universal life

What are the 2 types of Flexible Spending Accounts?

Health Care Accounts and Dependent Care Accounts

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

The automatic premium loan provision is activated at the end of the

Grace period

An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?

The Medical Information Bureau

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 insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

Which of the following best defines earned surplus?

Insurer's unassigned funds

The causes of loss insured against in an insurance policy are known as

Perils

Following an injury, a policyowner covered under Medicare Parts A & B was treated by her physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-pocket?

20% of covered charges above the deductible

What information is provided by the Explanation of Medical Benefits?

Specific services covered and the amounts approved for each service.

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Spendthrift clause

Which of the following is INCORRECT concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible.

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage.

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

Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing?

100%

Under the Affordable Care Act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event?

60 days

Unreimbursed medical expenses paid for the insured may be claimed as deductions if the expenses exceed what percentage of the adjusted gross income?

7.5%

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within

90 days

A tornado that destroys property would be an example of which of the following?

A peril

Representations are written or oral statements made by the applicant which

Are considered true to the best of the applicant's knowledge.

An insurance company and its agents must notify all applicants and policyholders of information-gathering processes utilized for written application transactions when?

At the time of delivery of the policy when personal information is collected from the applicant, an insured under the policy, or public records AND at the time of application for the policy when information is collected from sources other than the applicant, persons under the policy, or public records.

A tax-sheltered annuity is a special tax-favored retirement plan available to

Certain groups of employees only

Making use directly or indirectly of any methods of marketing which fail to disclose in a conspicuous manner that a purpose of the method of marketing is solicitation of insurance and that contract will be made by an insurance agent or insurance company is known as

Cold lead advertising.

What is creditable coverage?

Former health coverage that gives an individual rights when applying for new coverage

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.

Which of the following statements concerning Medicare Part B is correct?

It pays for physician services, diagnostic tests, and physical therapy

Sue has an HSA and is planning to leave her current job for a new job. When she leaves her job, what will happen to her HSA?

It will continue because it is owned by Sue, not her employer

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

Any person who knowingly and willfully obtains information about an individual from an insurance company, agent or organization supporting insurance under false pretenses shall be fined

Not more than $10,000, imprisonment not to exceed one year or both.

A guaranteed renewable health insurance policy allows the

Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.

An HMO is regarded as an organized system of health care that provides a comprehensive array of medical services on a

Prepaid basis

All of the following are actual deductibles found in medical insurance policies EXCEPT

Replacement

Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?

Residual disability

Which of the following components of dental insurance does NOT require the payment of a deductible?

Routine and preventive maintenance

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.

In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?

The insured must have first been hospitalized for 3 consecutive days.

Which of the following is NOT a goal of risk retention?

To minimize the insured's level of liability in the event of loss

What is the purpose of COBRA?

To provide continuation of coverage for terminated employees

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?

Family Protection Policy

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection.

Who determines the eligibility and contribution limits of an HRA?

The employer

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Aleatory

Employers can reduce health plan costs by coupling a Health Reimbursement Account (HRA) with

A high deductible health plan.

The gatekeeper of an HMO helps

Control specialist costs.

Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as

Fraud

According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage premium that must be applied to actual medical care in a large group health plan?

85%

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members

If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?

Nothing

Who determines the eligibility and contribution limits in a HRA?

The employer determines both

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

The loss may be intentional.