Guarantee 2 corrections
An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?
10%
Which of the following will NOT be included in the buyer's guide?
Specific information about the policy
How often must organization consult the National Do Not Call Registry?
every 31 days
All of the following information needs to be included on an application for life insurance EXCEPT
health insurance policies in force
All of the following are excluded from coverage in an individual health insurance policy EXCEPT
mental illness
An employee is insured by a group major medical plan that is provided through her employer. The employer contributes 75% of the premium and the employee contributes the remaining 25%. If the insured received a benefit from this policy in the amount of $1,000, how much of this benefit would be taxed as income?
$0
In some cases, in order for an insured to legally disclose privileged information to appropriate sources, the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of the information?
1 year
Which rider, when added to a disability policy, pays income during the six-month waiting period before Social Security benefits can begin?
additional monthly benefit
Which of the following types of care could be provided at a community center?
adult day care
Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?
applicants who may require a larger death benefit in the future should buy convertible term insurance
In an employer group health insurance plan, the covered employee receives
certificate of insurance
Which source of underwriting information includes information on an applicant's character, general reputation, personal habits, and mode of living?
investigative consumer report
How does insurance distribute the financial consequences of individual losses?
it transfers the risk to all persons insured
All of the following are used to keep costs down for dental insurance EXCEPT
limitations on the number of teeth that may be treated in a given year
The Human Life Value approach to determining Life Insurance needs is based upon which of the following ideas?
loss of the breadwinner's income
What is the purpose of the surrender charge in a deferred annuity?
to compensate the company for loss of investment value
An insured has just adopted a child. How soon should she notify the insurer of this addition?
within 31 days
A person receives his Medicare Supplement policy and is not satisfied with the provisions. He can return the policy for a full premium refund if he does so within how many days?
30
In the event of lapse, long term care insurance policies should include a provision for reinstatement of coverage. This option is available within
5 months of termination
If an insured decides to reduce the coinsurance amount on her amount major medical insurance, what can the insured expect?
a higher monthly premium
Slippery floors, reckless driving, or providing false information are example of
hazards
Which of the following is NOT a component of an insurance policy premium?
number of beneficiaries
Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted
Which of the following is a provision found in life insurance policies?
reinstatement
A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2500. His actual monthly expenses are $3000. If the owner becomes disabled, the monthly benefit payable under his policy will be
$2500
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
3 days
Which of the following Medicare parts provides prescription drugs benefit?
Part D
Which of the following is NOT true regarding an optionally renewable policy?
insurer can only cancel the policy for reasons stipulated in the contract
Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
they are received tax free
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 expenses
All of the following are true of a Multiple Employer Trust (MET) EXCEPT
the employee has a right of conversion upon leaving the group coverage
An elimination (waiting) period may NOT have to be satisfied for a disability in which of the following?
an insured suffers a relapse of a prior disability within 6 months of the initial covered disability
An insurer can decide to not renew an Optionally Renewable policy
on premium due dates
In a deferred annuity, the difference between the accumulation value and the surrender value is the
surrender charge
Under a long-term care policy, the commission or other compensation provided for a minimum of 5 subsequent years CANNOT exceed what percentage of the renewal premium?
10%
What is the only difference between blanket insurance and group health insurance?
The insured members are not named
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
extended term
For which of the following reasons may group coverage NOT be discontinued?
the company's stock value lowers
All of the following are reasons for group insurance termination for dependents EXCEPT
the dependent reaches age 21
A limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke, or renal failure is known as
critical illness insurance
An employee is covered under COBRA. His previous premium payment was $100 per month. His employer now collects $102 each month. Why does the employer collect an extra $2?
to cover the employer's administrative costs