insurance study

Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1500 in covered health care services. how much will her group insurance carrier pay?

$900

Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays 25% how much would a 10,000 benefit be taxable as income under this plan?

0

The typical long-term care insurance policy is designed to provide a minimum of ___ years of coverage

1

Sole proprietors are permitted tax deductions for health costs paid from their earnings in amount of

100% OF COST

XYZ insurance company receives satisfactory proff of loss for a claim, if XYZ does NOT pay the claim within 60 days of receipt the insurer MUST pay simple intrest of _ per annum.

12%

Michigan requires that a licensee complete_ hours of continuning education on the subject of ethics every reporting peroid

3

The acceptance of a credit life application requires the submission of certificate of insurance to the insured within __ days

30

A baby is born to a husband a wife covered under a family accident and health insurance policy. if the newborn is covered at birth, the first payment for the additional coverage would become in due _ days

31

An insured has a stop-loss limit of 5000 a deductible of 500 and an 80/20 coininsurance. The insurered incurs 25000 of covered losses. How much will the insured have to pay?

5000

A roth IRA owner must be at least what age in order to make tax-free withdraws?

59 1/2 AND OWNED ACCOUNT FOR A MINIMUM OF 5 YEARS

How many months can a life insurance policy normally be backdated from the date of application

6

In michigan, legal action may be taken against an insurer up to _ years fir failing to pay a life insurance claim after proof of loss was submitted.

6

Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences?

60

At what age will a person normally enroll with an insurance carrier under a part C medicare advantage plan?

65

Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. how much will she pay if she incurs a loss of 1500

700

A fee for service health imsuramce plan will normally cover

A DISEASE

A medical provider that accepts Medicare Assignment must

ACCEPT PAYMENT BASED UPON A MEDICARE SCHEDULE AS PAYMENT IN FULL

Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?

ACCIDENTAL BODILY INJURY PROVISION

All of these are common exclusions to a life insurance policy EXCEPT

ACCIDENTAL DEATH

All of these are valid policy dividend options for a life insurance policy owner EXCEPT

ACCUMULATE WITHOUT INTREST

A non-contributory health insurance plan helps the insurer avoid

ADVERSE SELECTION

What does the group life underwriting risk selection process help protect insurance companies from?

ADVERSE SELECTION

Fixed period settlement options are considered to be a form of an

ANNUNITY

How soon can the benefit payments begin with a deferred annunity?

ANYTIME WITHIN 12 MONTHS AFTER DATE OF PURCHASE

A renewable term life insurance polict can be renewed

AT A PREDETERMINED DATE OR AGE, REGARDLESS OF THE INSURED HEALTH

Why are dividends from a mutual insurer not subject to taxation

BECAUSE DIVIDENDS ARE CONSIDERED TO BE A RETURN OF PREMIUM

Which of the following is NOT a valid reason for an insurer to refuse renewal of a small employer group plan?

CLAIMS WERE HIGHER THEN EXCPECTED

an indemnity plan limitation that will pay the dental bills after a small amount is paid by the insurered is called?

COININSURANCE

Life insurance policies will normally pay for losses arising from

COMMERCIAL AVATION

__ Is NOT an element of a valid contract

COUNTERSINGNATURE

A medicare supplement polict is

DESIGNED TO FILL IN THE GAPS OF PART A AND B

A doctor who accepts medicate assignment agrees to which of the following?

DOCTOR CANNOT CHARGE MORE THAN MEDICARE'S SCHEDULED COVERAGE

In the michigan insurance code, Chapter 45 insurance fraud defines financial loss as all of the following

EXCEPT ANSWER: ADDITIONAL PRMIUMS

Elizabeth is the beneficiart pf a lfe insurance policy. She is receiving the death benefit in payments of 10,000 per month until the prinicipal and interest has been paid out. which option was chosen?

FIXED AMOUNT

All of these are characteristic of a universal life insurance policy EXCEPT ANSWER

FIXED SURRENDER VALUE

An insured's status under social security can be described as

FULLY INSURED

Under writers can acquite information from all of the following sources

GENETIC TESTING

A master contract and certificate of coverage can be found in which type of policy?

GROUP

All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT

HEALTH REIMBURSMENT ARRANGMENT PLAN

Health insurance will typically cover which of the following perils?

INJURY DUE TO ACCIDENT

All of the following statements correctly describe the purpose of Social Secuirty EXCEPT

IT PROVIDE OF INCOME FOR A MEANINGFUL STANDARD OF LIVING DURING RETIRTMENT

An insurer's ability to make unpredictable payouts to policy owners is called

LIQUIDITY

Which of the following is considered to be a point of service (POS) plan?

MANAGED CARE PLAN

Shirely has a medigap policy, which is designed to pay cost associated with

MEDICARE PARTS A AND B

Which type of plan would be most appropriate for an individual on medicare and is concerned that medicare will NOT pay for charges exceeding the approves amount?

MEDICARE SUPPLEMENT PLAN F

Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to its participants

MULTIPLE EMPLOYER WELLFARE ARRANGMENT (MEWA)

A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the

NAMED LIVING PRIMANY BENEFICIARIES

How are contributions made to a Roth IRA handled for tax purposes?

NOT TAX DEDUCTIBLE

Richard owns an insurance policy that is renewable only at the option of the insurance company. his policy is considered to be

OPTIONALLY RENEWABLE

What kind of life insurance policy issues by a mutual insurer provides a return of divisible surplus?

PARTICIPATING LIFE INSURANCE POLICY

Which of the following is NOT a common exclusion for a medical expense policy?

PHYSICAL THEARPY

Under a modified endowment contract, what are the likely tax consequences?

PRE-DEATH DISTRIBUTIONS WILL BECOME TAXABLE

When comparing an HMO to a PPO, the PPO ANSWER

PROVIDES A GREATER CHOICE OF PROVIDERS

Premiums paid that exceed 7 1/2% of an insured adjusted gross income (AGI) are tax-deductible when paid for which of the following plans

QUALIFIED LONG TERM PLAN

All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT

REDUCTION OF PREMIUM

Which of these BEST describes the illegal act of twisting?

REPLACING AN INSURANCE POLICY FROM ONE INSURER TO ANOTHER BASED ON MISREPRESENTATION

Which of these is NOT the responsibility of a producer?

REPRESENT THE INSURED

In the state of michigan. a licensed producer

REPRESENTS THE INSURER

Typically, long-term disability benefits are coordinated with which benefit plan?

SOCIAL SECUIRTY

An insurer's claim settlement pratices are regulated by the

STATE INSURANCE DEPARTMENTS

Which of these have the highest monthly payout upon annuiltization?

STRAIGHT LIFE

Who is the individual paid on a fee for insurance basis?

SUBSCRIBER

What is medicare part B also known as?

SUPPLEMENTARY MEDICAL INSURANCE

Converting a group plan to permanet life insurance requires

THE CONVERSION BEING APPLIED FOR WITHIN 31 DAYS OF TERMINATION

Krissa purchase a 10- year level term life insurance policy that has a death benefit for 200,000. which of these statement is true?

THE FACE AMOUNT AND PREMIUM WILL REMAIN CONSTANT OVER THE 10-YEAR PERIOD

When a preferred provider orginzation PPO insured goes out of network, which of the following actions occur?

THE INSURER WILL PAY A REDUCED AMOUNT

Which of the following does a life insurance policy summary normally insclude?

THE POLICY CASH VALUE

A life insurance policy sold in michigan may be contested by the insurer ONLY during the first __ years of the contract

TWO

A life insurance policy that is subject to a contract interest rate is referred as

UNIVERSAL LIFE

"Maximum benefits" refers to the

UPPER LIMIT OF THE TOTAL LIFETIME BENEFITS THE INSURANCE COMPANY WILL PAY

An individual can enroll in parc c medicare advantage plan at what time? ANSWER

WHEN BECOMING ELIGIBLE FOR MEDICARE

When are group disability benefits considered to be tax free to insured?

WHEN THE RECIPENT PAYS THE PREMIUMS