L&H2

Premature IRA distributions are assessed a penalty tax of

10%

Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death?

30-year decreasing term

A lapsed long-term care policy may be reinstated within ___ months of the lapse date if the insured was mentally incapacitated.

5

Which of the following best describes a point-of-service (POS) plan?

A plan which combines indemnity plan features with those of an HMO

According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing conditions exclusion?

Any period of prior coverage

How may an insurance company classify an accidental death benefit on a life policy?

As an optional policy rider

ABC Corporation purchases and is beneficiary of an individual disability income insurance policy on a key employee. Which of the following statements is true?

Benefits are received tax-free by the company

An order issued by the commissioner that prohibits a specific practice listed in the order is called a(n)

Cease and desist order

Prepaid dental plans differ from most other types of dental plans in what way?

Closed panel of dentists can only be used

What must be given to a life insurance applicant when the agent receives an application and the initial premium?

Conditional receipt

All of these are used to prevent adverse selection in a group dental plan EXCEPT

Decreased employee participation

Which of the following is NOT guaranteed in a whole life policy?

Dividend scale

All of these are responsibilities of the superintendent EXCEPT

Endorsing Insurers

Which of the following are used by most insurers when determining the premium for large groups?

Experience rating

All of these are settlement options for life insurance policies EXCEPT

Extended term

Which statement concerning a decreasing term life policy is accurate?

Face amount decreases over the policy period

Which tax cost is normally associated with death?

Federal estate tax

Which of these may not be deducted from premium payments or the cash value of a variable life insurance policy?

Federal premium taxes

When an annuity contract has been fully surrendered, how will the surrender charges affect the final contract settlement?

Final contract settlement will be reduced

Which of these statements about Medicaid is correct?

Funded by federal, state, and local taxes

Dan owns a disability income insurance policy which provides ONLY nonoccupational coverage. Which of the following circumstances would likely NOT be covered under his plan?

He falls and breaks his hip at work

The Maryland life and health guaranty corporate protects the ______ in the event of insurer insolvency.

Insured

Which statement is INCORRECT about the interest- only settlement option in a life insurance policy?

Interest on proceeds must be paid by the beneficiary

When a policy loan is requested by a policyowner and it requires the consent of the beneficiary, what kind of beneficiary designation is this?

Irrevocable beneficiary

Ken is age 65 and has 2 years until he receives Social Security retirement income benefits. At his current age, which is true about Medicare Part A Hospital Insurance coverage?

It is available through application to Social Security

A retired couple would like to maximize the income derived from their life savings and have it payable until they both die. Which annuity would be their best choice?

Joint and survivor annuity

Health care costs can be better controlled by utilizing pre admission testing. Preadmission testing can reduce the

Length of hospitalization

A policyowner has a life insurance policy where she had listed her age on the application as 5 years younger than her actual age. If she dies and the insurer discovers the misstatement of age, how much will the insurance company pay?

Less than the face amount

what is the eligibility requirement for medicare part b

Must be eligible for Medicare Part A

How are the premiums for an individually-owned disability income policy treated for tax purposes?

Not tax-deductible at all

Which of the following is NOT a function of accident and health insurance?

Pays a death benefit as a result of natural causes

Which of these plans allow a participant to choose either a network or non-network provider at the time when medical care is needed?

Point of Service

What determines the full amount of social security retirement benefits a qualified individual is entitled to receive?

Primary Insurance Amount (PIA)

Which of the following provisions is NOT required to be included in qualified long-term care policies?

Prior hospitalization

Insurance agents are required to be licensed in order to protect the

Public

What effect can a long-term care benefit rider have on a life insurance policy?

Reduced death benefit

What does a fixed life annuity offer protection against?

Savings depletion due to longevity

A producer does NOT have a fiduciary responsibility to

The Guaranty Association

Which of the following is true regarding a person receiving a waiver of premium benefit?

The insured must be disabled for a period of time

What happens when a policyowner borrows against the cash value of his life insurance policy?

The policy proceeds would be reduced by the outstanding loan balance

Which of these must be disclosed in a universal life policy?

The policy's surrender charges

How is a community rating used for underwriting purposes?

The same rates are charged for individual and group plans in the same geographical area

Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?

The specified benefit amount is a percentage of his wages

Typically, states will permit the grouping of two or more small employers in the same industry for obtaining group health insurance at a favorable rate. This grouping of employers is known as a multiple employer

Trust

At what point are death proceeds paid in a joint life insurance policy?

When the first insured dies

Before a Medicare Supplement advertisement is released to the public, it must first be approved by the

commissioner

Which of the following reduces the opportunity for overinsurance

coordination of benefits provision

Which of the following reduces the opportunity for overinsurance?

coordination of benefits provision

Any employee insured under a group life insurance plan is normally

covered with term life insurance

Which annuity allows contributions to an IRA?

deferred

Employer-paid qualified long-term care insurance premiums are typically

excluded from the employee's gross income

Death benefits from a life insurance policy are normally considered to be

exempt from federal income tax

Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate

for federal income tax reasons

What can be expected when a preferred provider organization (PPO) patient decides to use a non-PPO?

higher out-of-pocket expenses

Medicare Part A typically covers

inpatient drugs

The death proceeds of a credit life insurance policy are typically paid to the

lender

Custodial care is normally covered under

long term care insurance

Periodic health claim payments MUST be made at least

monthly

An agent whose actions exceed the authority granted by contract is

not backed by the insurer

The Maryland insurance Administration has the ability to examine the records of all admitted insurers because?

of the powers granted through state law

Which of the following can be defined as a cause of a loss?

peril

Home health care benefits typically do not include coverage for

prescription medication

What is the name of the period of time during which a new employee is ineligible for group Health insurance coverage?

probationary period

Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause?

spendthrift trust clause