EXAM FX Missed Questions Pt.2

What is the typical deductible for basic surgical expense insurance?

$0

An employee group with which of the following number of employees would qualify for a medical savings account?

23 employees

In health insurance, what is a copayment?

A specific amount paid by the insured when treatment is received

Which of the following is the closest term to an authorized insurer?

Admitted

If a loss occurs, insurance policies pay the proceeds to

Beneficiary

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

Which of the following will vary the length of the grace period in health insurance policies?

The mode of the premium payment

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

100%

How long does the initial enrollment period for Medicare Part B last?

7 months

What are the 2 types of Flexible Spending Accounts?

Health Care Accounts and Dependent Care Accounts

Which of the following is NOT true regarding a flexible spending account?

It does not have limits on contributions.

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

It has the highest amount of insurance protection.

Which part on an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

Medical information

In a situation when a Medicare insured uses the services of a non-participating provider, which of the following is NOT true?

Medicare pays its share of the bill directly to the provider.

In health underwriting, it would be inappropriate to decline a risk using any of the following factors EXCEPT

Mental Illness

For the purpose of insurance, risk is defined as

The uncertainty of loss.

When is an insurance license considered inactive?

When no company appointment is in effect for the license.

When is the insurability conditional receipt given?

When the premium is paid at the time of application

All of the following individuals may qualify for Medicare health insurance benefits EXCEPT

A retired person age 50

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 would be among the prohibited provisions for long-term care insurance policies delivered to the insured in California?

All of these

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?

Guaranteed

Which of the following statements is CORRECT concerning the relationship between Medicare and HMO's?

HMOs may pay for services not covered by Medicare.

When is the annual open enrollment for state insurance exchanges?

November 1 through January 31

In long-term care insurance, what type of care is provided with intermediate care?

Occasional nursing or rehabilitative care

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

Prepaid basis.

Which of the following statements about HRA's is TRUE?

The account allows roll-over of unused balances at the end of the year at the employee's discretion

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

The beneficiary will only receive payments of the interest earned on the death benefit.

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.

If a policyholder contacts an insurance company about a claim and expects a response to the inquiry, within what span of time must the agent respond?

15 days

Every policy of individual life insurance must include a notice of right to cancel the policy, stating the specific time frame for the free-look period. Once the insured has cancelled the policy, within how many days must the insurer refund all premiums and policy fees?

30 days

An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. What kind of penalty would the IRA owner pay?

50% tax on the amount not distributed as required

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

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%

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal.

A Universal Life Insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account.

Which of the following is a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?

Annuity certain

A policyowner fails 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

What is described as the termination of a plan of insurance between the insurer and the entire group of employees?

Discontinuance

What term refers to a listing of approved drugs covered by a medicare prescription drug plan?

Formulary

Which of the following is true regarding a policy with a face value less than $10,000?

If it's returned during the free look period, the agreement will be void.

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

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

The key factor of representation that allows the injured party to rescind the contract is

If the representation is false in a material point.

In group insurance, what is the policy called?

Master policy

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

Note more that $10,000, imprisonment not to exceed one year or both.

What term is used to describe when a medical caregiver contracts with a health organization to provide services to its members or subscribers, but retains the right to treat patients who are not members or subscribers?

Open panel

What do living benefit riders do?

Pay part of the policy death benefit to insureds in order to help fund long-term care or nursing home care

Which of the following is NOT allowed under the no-loss/no-gain provision?

Pre-existing Condition exclusion

Which of the following do the Standard and Preferred risk categories share?

Premiums are not elevated.

All of the following are true regarding key person disability income insurance EXCEPT

Premiums are tax deductible as a business expense.

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

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.

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

The employees receive individual policies.

An insurer's liability shall be limited to

The face amount of an individual insurance policy, subject to any exclusions and riders as applicable, minus any outstanding policy loans and interest payments due the insurer.

An insured purchased a noncancellable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy?

The insured is in an accident and incurs a large claim.

An agent has completed 30 hours of continuing education by the end of a license period instead of the required 24 hours. What will happen to the 6 hours in excess?

They will be carried over into the next licensing period.

How can insurers obtain information on an applicant's avocations and the way they will affect a risk?

Through the use of a questionnaire.

If a retirement plan or annuity is "qualified," this means

It is approved by the IRS.

If the information is used only for identification and not for underwriting purposes, which of the following information about the applicant may be listed on a life insurance application?

Birthplace

After being hired to deliver newspapers to his neighbors, a man is provided with $10,000 of life insurance by the newspaper. He would be covered under which kind of life insurance?

Blanket life.

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

Reinstatement provision