License Coach Accident, Health, Life (MI)

Which of the following is a CODA plan? Select one: a. 401(k) b. Target benefit pension plan c. Group deferred annuity d. Money-purchase pension plan

401(k)

Samuel is explaining the exclusions in a life insurance policy to his new client. Which of the following is an exclusion that would be found in a life policy? Select one: a. Hazardous occupation b. War c. Suicide d. All of the above

All of the above

All of the following are true concerning Workers' Compensation laws, EXCEPT: Select one: a. All states require employers to have Workers' Compensation Insurance. b. Workers' Compensation provides benefits for employees who have been injured, become ill or died as a result of workplace issues. c. Many states have pools from which employers can purchase coverage. d. Premiums for Workers' Compensation vary by industry classification and actual employer experience.

All states require employers to have Workers' Compensation Insurance.

Group life insurance has similar characteristics and also characteristics that are different from individual life policies. Which of the following is not a similarity that the two types of policies share? Select one: a. Proceeds are not taxable when received as a lump sum payment b. Both can deduct premium payments c. Premiums paid by a company are not considered income to an employee d. All of the above

Both can deduct premium payments

Mindy became disabled while a group policy was in force. When the policy was terminated, which of the following is a responsibility of the insurer? Select one: a. Extension of benefits b. Offer conversion to an individual policy c. Both of the above d. None of the above

Both of the above

Under what circumstance is an insurer NOT required to give a privacy notice to the insured? Select one: a. If the insurer does not disclose any nonpublic personal financial information to any nonaffiliated third party and the insurer does not have a customer relationship with the consumer b. If a notice has already been provided by an affiliated insurer c. Both of the above d. None of the above

Both of the above

All of the following must be included in each Medicare supplement policy, EXCEPT: Select one: a. Outline of coverage b. Buyer's Guide c. Description of restricted network provisions d. Description of the coverage for emergency care

Buyer's Guide

What kind of term policy would a man with limited resources most likely purchase to make sure that his wife and children are secure in their home if he dies while the children are young and in school? Select one: a. Convertible term b. Renewable term c. Decreasing term d. Increasing term

Decreasing term

All of the following programs quell the fear that some people have of losing their investment if they were to die after only receiving a few payments from their annuity, EXCEPT: Select one: a. Life with period certain b. Installment refund c. Period certain d. Deferred annuity

Deferred annuity

All of the following services are offered as a basic service in an HMO, EXCEPT: Select one: a. Doctor services b. Preventive and routine care like annual physical and immunizations c. Rehabilitation therapy d. Durable equipment

Durable equipment

In a key person disability policy, which of the following is CORRECT regarding premiums? Select one: a. Deductible for the employer b. Not deductible for the employer c. Deductible for the employee d. Not deductible for the employee

Not deductible for the employer

Zack and his friends were celebrating his promotion to manager at a local pub after work. Zack was "over served" at the party and on the way home, Zack was involved in a serious accident that required him to be hospitalized. His blood alcohol level was well above the allowable limit. Zack's insurance policy will most likely pay his benefit at what level? Select one: a. Standard benefits as for any other claim b. A limit of $5,000 total, regardless of claim size c. Nothing, as alcohol related accidents are usually policy exclusion. d. His deductible will be twice the policy schedule.

Nothing, as alcohol related accidents are usually policy exclusion.

Cheryl has a $500,000 permanent life insurance policy. She has paid $200,000 in premiums, and the policy has a cash value of $216,000. If Cheryl dies, her beneficiary will pay taxes on: Select one: a. $0 b. $16,000 c. $216,000 d. $500,000

$0

What type of license does someone need to audit policies of insurance? Select one: a. Insurance producer b. Insurance adjuster c. Insurance counselor d. Insurance regulator

Insurance counselor

In addition to moral hazards, an underwriter will be very concerned about what physical conditions? Select one: a. Obesity b. Too many loan applications c. Speeding tickets d. Grade point average in school

Obesity

Which dividend option may offset some or all of the benefit reduction caused by loans from a participating whole life plan? Select one: a. Paid up additions b. Accumulate at interest c. One-year term option d. Reduction of his loan

One-year term option

Which of the following does not fall in the private insurer category? Select one: a. Self-insurers b. Stock companies c. Mutual companies d. Noncommercial organizations

Self-insurers

What happens to the amount payable on a health insurance contract if the age of the person was misstated? Select one: a. Nothing will be paid. b. The amount of the payment on the contract must be made. c. The amount payable for the correct age will be made. d. The amount will be determined by an insurance board appointed by the Commissioner.

The amount payable for the correct age will be made.

All of the statements are true about universal life policies, EXCEPT: Select one: a. The actual cost of the insurance is based on annually renewable term life insurance. b. The policyowner can increase or decrease the death benefit during the policy term. c. Universal life policies are only subject to the interest rates stated in the contract. d. The interest earned by the cash accounts has a guaranteed minimum.

Universal life policies are only subject to the interest rates stated in the contract.

Coordination of benefits is designed to limit which of the following? Select one: a. Limit what an individual policy will pay if the insured is also covered under a group plan. b. Prevent the insured from receiving more that 100% of a loss if an individual plan and a group plan cover the same loss. c. Limit the claim to 100% of the loss when two group plans are involved. d. Prevent the insured from having more than one policy

Limit the claim to 100% of the loss when two group plans are involved.

If an HMO and PPO plan member elects to use out of network providers, he/she may expect any of the following results, EXCEPT: Select one: a. Lower benefits reimbursement b. Lower quality of care c. More out-of- pocket expense d. More individual paperwork

Lower quality of care

Melanie and Richard are married. Both are covered under the group plan of their employers. Melanie is also covered as a dependent on Richard's group plan. How is this type of duplicate coverage handled? Select one: a. Melanie would designate which plan is to be considered the primary. b. Melanie would not tell her company about the coverage on her husband's policy. c. Richard would not tell his company about Melanie's coverage on her employer's group policy. d. Richard would designate his group provider as secondary.

Melanie would designate which plan is to be considered the primary.

In determining life premiums, the actuary uses all of the following factors, EXCEPT: Select one: a. Mortality b. Investment returns c. Expense ratios d. Morbidity

Morbidity

The factor that affects rates and benefits for a disability policy primarily is: Select one: a. Occupational class b. Interest on reserves c. Morbidity tables d. Gender of the insured

Morbidity tables

A group health plan's rates may be affected by any of the following, EXCEPT: Select one: a. Experience of the group (claims vs. premium) b. Stability of the group c. Mortality tables d. Morbidity tables

Mortality tables

Mrs. Conroe's policy lapsed. Her agent, Mrs. Acker, accepted her past due premiums and re-instated her policy. Since agents cannot usually reinstate policies, why it was allowed in this case? Select one: a. Mrs. Acker is a top agent. b. Mrs. Conroe was truly sorry that she had let the policy lapse. c. Mrs. Acker was allowed to accept late premiums in the past to reinstate policies. d. All of the above

Mrs. Acker was allowed to accept late premiums in the past to reinstate policies.

An insurance company whose main responsibility is to make money for its policyholders is called a: Select one: a. Mutual insurance company b. Stock insurance company c. Health maintenance organization (HMO) d. Preferred provider organization (PPO)

Mutual insurance company

Nick has an individual health insurance policy and is enrolled in a group through his company. What will happen when Nick has a claim? Select one: a. Nick will receive full benefits from both contracts, since there is no coordination of benefits on individual plans. b. Nick's group will be primary and the individual plan will be secondary c. Nick's individual policy will be primary and the group plan will be secondary. d. The insurer for the individual plan will be able to cancel the individual policy under these circumstances.

Nick will receive full benefits from both contracts, since there is no coordination of benefits on individual plans.

Under HIPAA, how many days must a previously covered worker go without health insurance in order for an employer to reinstate a waiting period for coverage to begin? Select one: a. More than 10 days b. More than 30 days c. More than 60 days d. None of the above

None of the above

Which of the following is true about Medicare/Medicaid and Medicare supplements? Select one: a. They can provide nursing home benefits needed for aging. b. Medicare and Medicare supplements can provide nursing home benefits from an injury for 6 months. c. They all provide nursing home benefits. d. None of the above

None of the above

All of the following are true about the accumulation period of an annuity, EXCEPT: Select one: a. The principal earns interest. b. The interest earned by an annuity is not taxed as with other types investments. c. Once the contract is made, the owner cannot make changes. d. The annuitant can earn interest on their interest.

Once the contract is made, the owner cannot make changes.

Barney has a surgical expense policy listed as a "$1,000 Basic Surgical Expense Policy". This means which of the following? Select one: a. Any surgery will pay $1,000. b. The plan will pay $1,000, only if the surgeon is board certified. c. Only the most complex surgery will be reimbursed at $1,000 and other procedures by the dollar value of procedure. d. Only specific surgeries listed in the policy will be covered.

Only the most complex surgery will be reimbursed at $1,000 and other procedures by the dollar value of procedure.

Mark names his wife and children as beneficiaries on his life policy. They would not be considered: Select one: a. Irrevocable beneficiaries b. Contingent beneficiaries c. Primary beneficiaries d. Other insureds

Other insureds

What type of health plan has smaller deductibles and limited co-payments with a network of doctors and hospitals to choose from and the participants are required to select a primary care physician? Select one: a. HMO b. POS c. PPO d. HSA

POS

All of the following statements are false regarding the paid-up additions dividend option in a whole life insurance policy issued by a participating insurer, EXCEPT: Select one: a. Paid-up additions simply add term life insurance coverage to the existing policy. b. Paid-up additions are only available on term life insurance policies issued by mutual insurers. c. The insurer may require that the underwriting department approve the insured's request for paid-up additions. d. Paid-up additions are based on the insured's attained age.

Paid-up additions are based on the insured's attained age.

A person becomes eligible for Medicare when: Select one: a. Part A is automatic for all persons reaching Age 65. b. Part B is only available for those who have reached the fully insured status. c. There are no exceptions to the age 65 rule. d. If a person retires at age 59 1/2, they may request a special exception.

Part A is automatic for all persons reaching Age 65.

All of the following are limited type policies, EXCEPT: Select one: a. Accident only b. Specified disease c. Physician expense d. Basic hospital expense

Physician expense

Beau has a group health policy provided by his employer, which of the following is TRUE? Select one: a. Premiums are deductible for the employer, and the benefits are taxable for the employee. b. Premiums are deductible for the employer, and the benefits are not taxable for the employee. c. Benefits are taxable for the employee, and the premiums are deductible for the employer. d. Benefits are not taxable for the employee, and the premiums are not deductible for the employer.

Premiums are deductible for the employer, and the benefits are not taxable for the employee.

In a group disability policy, how are premiums and benefits treated for taxes? Select one: a. Premiums are deductible for the employer, and the benefits are taxable for the employee. b. Premiums are deductible for the employer, and the benefits are not taxable for the employee. c. Benefits are never taxable for the employee. d. Benefits are not taxable for the employee, and the premiums are not deductible for the employer.

Premiums are deductible for the employer, and the benefits are taxable for the employee.

Which of the following is not true about a noncancellable policy? Select one: a. If the insured is over 60 when the policy is issued, the term must be at least 5 years. b. Premiums may be increased on an individual basis. c. The insurer has the right to cancel (or choose not to renew) at an age stipulated in the policy. d. The insurer can only cancel for non-payment of premiums.

Premiums may be increased on an individual basis.

Medical providers are paid on a capitation basis in which of the following dental plans? Select one: a. Prepaid dental b. Comprehensive c. Basic d. Comprehensive and basic

Prepaid dental

Which of the following provisions for individual health insurance policies is NOT optional? Select one: a. Reinstatement b. Misstatement of age c. Change of occupation d. Expense-incurred basis

Reinstatement

A benefit that is a percentage of the total disability benefit for a period of disability is called: Select one: a. Recurrent disability b. Limited disability c. Residual disability d. Presumptive disability

Residual disability

Which of the follow statements concerning the payment from a non-qualified annuity is correct? Select one: a. Since this is a non-qualified plan, all payments are 100% tax free. b. Since this is a non-qualified plan only a portion of the payment will be taxable. c. Since this is a non-qualified plan all the income received will be taxable. d. If the income is below a certain threshold, Jack is not required to report it.

Since this is a non-qualified plan only a portion of the payment will be taxable.

A clause that protects a beneficiary from creditors coming after the proceeds of a policy is called which of the following? Select one: a. Beneficiary protection clause b. Insuring clause c. Incontestable clause d. Spendthrift clause

Spendthrift clause

Most life policies have exclusions. The most common exclusion in a life policy is: Select one: a. Flight on a commercial airline b. Suicide c. Flight on a private jet d. Illegal acts

Suicide

Valerie is looking at types of insurance to enhance her retirement. Which of the following should she NOT consider in planning her retirement? Select one: a. Term insurance b. Endowment c. Whole life d. Current Assumption Whole life

Term insurance

Amanda noticed that the wrong date of birth was recorded on her application for insurance. Health policies have a provision that addresses this issue. If Amanda has a claim, she can expect which of the following? Select one: a. The policy will be cancelled for fraud. b. Claims will be denied until her age is corrected. c. The amount of the claim will be adjusted to reflect the correct premium and benefit. d. The insurance company will ignore this and pay as requested.

The amount of the claim will be adjusted to reflect the correct premium and benefit.

Which of the following is not part of the consideration element of an insurance contract? Select one: a. The applicant's statements on the application b. The initial premium paid by the applicant c. The insurer's promise to pay a covered loss d. The applicant's promises

The applicant's promises

Martin is applying for a life insurance policy. When is a statement of good health required: Select one: a. The application does not include the premium. b. The application includes the premium. c. The statement of good health is always needed. d. The statement of good health is never needed.

The application does not include the premium.

Agents issue a conditional receipt to the applicant after the application and premium have been collected. If an insurer accepts the coverage as applied for, when does coverage begin? Select one: a. When the agent collects the first premium b. When the premium and application are presented to the insurer c. The date of the application or medical exam d. The date the policy is delivered

The date of the application or medical exam

Surin Global has a group health policy and a group disability policy for its employees. They pay 75% of the premium for the disability policy, and they pay 100% of the premium for the health plan; which of the following statements is CORRECT? Select one: a. The health plan is noncontributory, and twenty-five percent of the benefits are not taxable in the disability plan. b. The premiums are tax deductible for the employer in the health plan, but not tax deductible for disability policy. c. The disability policys benefits are not taxable on seventy-five percent. d. Seventy-five percent of the benefits from the disability policy are taxable, and the health plan is contributory.

The health plan is noncontributory, and twenty-five percent of the benefits are not taxable in the disability plan.

A PPO network may have a contract that involves any of the following, EXCEPT: Select one: a. The Contracting network b. Physicians, hospitals and other providers c. The individual participating employee d. Insurance Companies

The individual participating employee

The AD&D (accidental death and dismemberment) rider provides additional benefits if: Select one: a. The insured is involved in an accident and loses two toes b. The insured loses a finger in a drill press at work c. The insured slices his wrists d. The insured loses the sight in an eye as a result of an accident

The insured loses the sight in an eye as a result of an accident

Using the facility of payment clause in a policy, the insurance company may pay an amount up to the maximum limit to which of the following? Select one: a. The people who appear to be entitled to it b. The insured's estate c. Directly to a medical provider without proper assignment d. None of the above

The insured's estate

All of the following are characteristics of variable annuities, EXCEPT: Select one: a. They variable interest rates b. They have variable benefits c. The insurer cannot guarantee a benefit d. The insurer chooses where to invest the funds

The insurer chooses where to invest the funds

Which of the following is not true regarding the fixed-amount installment life insurance settlement option? Select one: a. The larger the payment amount, the longer time period payments will be received. b. The length of time installments are paid depends on the amount of the policy proceeds. c. Payments consist of principal and interest. d. Payments are made until the principal and interest reach zero.

The larger the payment amount, the longer time period payments will be received.

What constitutes the entire contract for a life insurance policy? Select one: a. The policy only b. The policy and any illustrations c. The policy and the application d. The policy, any illustrations and the application

The policy only

The producer is responsible for field underwriting. Field underwriting is done when the producer is in front of the applicant. Which of the following is not expected from a producer as part of the field underwriting? Select one: a. The producer should make sure the application is filled out completely. b. The producer should note the applicant's physical appearance (weight, build, etc.:) c. The producer should note how many children the applicant has in the house. d. The producer should note the habits and lifestyle of the applicant.

The producer should note how many children the applicant has in the house.

Which of the following is true about the automatic premium loan rider? Select one: a. The rider is quite expensive. b. The insured initiates the process after the grace period. c. The rider gives the company the right to borrow against the policy's cash value. d. The insured does not have to repay the loan.

The rider gives the company the right to borrow against the policy's cash value.

Which of the following is an option that would help the Olsens to adequately protect their minor child? Select one: a. They could set up a trust. b. They could allow the company to designate a beneficiary. c. They could allow the child to designate a beneficiary. d. None of the above

They could set up a trust.

What provision of a health policy may cover pre-existing conditions? Select one: a. Time limit for certain defenses b. Entire contract c. Insuring clause d. Exclusions

Time limit for certain defenses

The term used for incontestable period for a health insurance contract is which of the following? Select one: a. Grace Period b. Time limit on filing claims c. Consideration clause d. Time limit on certain defenses

Time limit on certain defenses

The agent must provide an outline of coverage to the applicant: Select one: a. Upon application only b. Upon policy issuance c. Upon policy delivery only d. Upon application or policy delivery

Upon application or policy delivery

A beneficiary may choose any of the following methods to receive life insurance proceeds, EXCEPT: Select one: a. Single payment in cash b. Life income installments c. Fixed amount installments d. Variable installments based on a specific stock index

Variable installments based on a specific stock index

When completing an application for insurance, an agent is allowed to do which of the following: Select one: a. Bind the coverage after reviewing all statements b. Order the Medical Information Bureau Report c. Sign for the applicant if he is out of state d. Witness the applicant's signature

Witness the applicant's signature

Harold has a policy that provides $5,000 basic hospital expense with a supplemental major medical that has a $500 deductible and 80/20 thereafter. He receives a surgeon's bill for $3,000. How much will Howard pay out-of-pocket? Select one: a. $0 b. $500 c. $1,000 d. $2,500

$1,000

Nathan incurs a $5,500 hospital bill. His major medical plan has a $500 deductible. Expenses beyond the deductible are payable at 80%, not to exceed $2,000 out-of-pocket expense. Nathan had $400 of charges that he paid before entering the hospital. How much will his insurance company pay towards his hospital bill? Select one: a. $4,320 b. $3,600 c. $4,400 d. $4,000

$4,320

For a non-contributory plan, how many of the employees must be offered coverage under the group? Select one: a. 75% b. 80% c. 90% d. 100%

100%

An insurer may exclude or limit coverage for conditions for which medical advice or treatment was recommended before enrollment for no more than: Select one: a. 3 months b. 6 months c. 9 months d. 12 months

12 months

An insurer must file a notice of appointment within: Select one: a. 15 days b. 21 days c. 30 days d. 31 days

15 days

How long do COBRA benefits remain from the date employment is terminated? Select one: a. 6 months b. 12 months c. 18 months d. 24 months

18 months

Mary has been admitted to the hospital for testing. How long does she have to give notice of claim to the insurance company? Select one: a. 15 days b. 20 days c. 30 days d. 45 days

20 days

On June 26, Brian's life insurance application was submitted with the initial premium, and on June 30 the insurer issued the policy standard. Due to it being close to a holiday, the agent did not deliver the policy until July 6. A conditional receipt was issued without a required medical exam. When is Brian's coverage effective? Select one: a. 26-Jun b. 30-Jun c. 6-Jul d. July 6, after the statement of good health is signed.

26-Jun

A health insurance policy cannot be voided (except for fraud) after: Select one: a. 1 year b. 2 years c. 3 years d. 4 years

3 years

A producer must report any administrative action taken against them to the Commissioner within: Select one: a. 15 days b. 21 days c. 30 days d. 31 days

30 days

A producer must report any criminal prosecution taken against them to the Commissioner within how many days after the initial pretrial hearing date? Select one: a. 15 days b. 21 days c. 30 days d. 31 days

30 days

How much time does a new mother have to inform her insurer of a newborn's birth? Select one: a. 21 days b. 28 days c. 30 days d. 31 days

31 days

What is the maximum length that COBRA benefits may be extended: Select one: a. 12 months b. 18 months c. 24 months d. 36 months

36 months

What is the typical partial disability benefit? Select one: a. 50% of insured's previous earnings b. 50% of the monthly indemnity for total disability. c. 75% of the monthly indemnity for total disability d. 100% of insured's previous earnings

50% of the monthly indemnity for total disability.

John has been in the hospital for five days. How long does he have to file a claim form and show proof of loss with his insurance company? Select one: a. 45 days b. 90 days c. 20 days d. 60 days

90 days

Marjorie has notified her insurance company that she has been in the hospital. The insurance company has furnished the form to file a claim. How long does Marjorie have to file proof of her loss? Select one: a. 10 days b. 30 days c. 60 days d. 90 days

90 days

There are two basic types of annuities - immediate and deferred. Which of the following is not a true statement about deferred annuities? Select one: a. A deferred annuity has annuity periods that begin sometime in the future. b. A deferred annuity can have a one-time premium payment. c. A deferred annuity payout period must begin within 12 months of purchase. d. A deferred annuity can have multiple premium payments.

A deferred annuity payout period must begin within 12 months of purchase.

A variable annuity has each of the following features, EXCEPT: Select one: a. Accumulation units in the accumulation phase b. Annuity units in the income phase c. A minimum guaranteed income benefit d. Varying sub-accounts or investment

A minimum guaranteed income benefit

Tax-sheltered annuities (TSA) provide retirement income for employees who work for: Select one: a. The government b. A nonprofit organization c. A Fortune 500 company d. A small business.

A nonprofit organization

A disability plan that pays a benefit based on loss of earnings is considered which of the following? Select one: a. A non-cancellable plan b. A residual disability plan c. A rehabilitative plan d. A partial disability plan

A residual disability plan

Which of the following would be considered a limited benefit policy? Select one: a. A blanket policy b. A travel accident policy c. A hospital indemnity policy d. A cancer policy

A travel accident policy

A universal life plan differs from a whole life plan in all of the following ways, EXCEPT: Select one: a. A whole life plan displays a detailed list of all mortality, expense and interest payments in the premium calculation. b. A universal life plan may have features that are not guaranteed. c. The cost of life insurance may vary from year to year on a universal life contract. d. The administrative expenses are a listed charge in universal life.

A universal life plan may have features that are not guaranteed.

Which of the following statements is true about a waiver of premium rider? Select one: a. A waiver of premium rider can only be added to a regular life policy. b. A waiver of premium rider cannot be added to a term policy. c. A waiver of premium rider can be added to a term policy. d. A waiver of premium rider cannot be added to a life policy once the policy is approved.

A waiver of premium rider can be added to a term policy.

Diane has recently been confined to a nursing home with a terminal illness. Which rider on a life policy will help her out in this situation? Select one: a. Return of premium rider b. Accidental death rider c. Consideration d. Accelerated benefit rider

Accelerated benefit rider

Short-term disability riders are called: Select one: a. Social insurance supplement riders b. Additional monthly benefit riders c. Impairment riders d. Hospital confinement riders

Additional monthly benefit riders

All of the following are one of the four main components of an insurance contract, EXCEPT: Select one: a. Insuring clause b. Adhesion c. Policy conditions d. Exclusions

Adhesion

Which of the following is a characteristic of an interest sensitive whole life policy? Select one: a. Flexible premiums b. Guaranteed minimum death benefit c. Guaranteed minimum rate of return. d. All of the above

All of the above

When Jack and Jill divorced, the court ordered that Jack name Jill beneficiary of his insurance. He may not change this, even if he remarries unless Jill gives her permission. Jill is: Select one: a. A court ordered beneficiary b. An irrevocable beneficiary c. A primary beneficiary d. A special class of beneficiary

An irrevocable beneficiary

How often is a health insurer allowed to examine the person of the insured? Select one: a. As often as is reasonable b. No more than once a month c. No more than once every 6 months d. No more than once a year

As often as is reasonable

When does the waiver of premium rider take effect? Select one: a. At the moment of the disability b. When the claim is filed c. After a 30 day waiting period d. After 60 days

At the moment of the disability

Guaranteed issue is usually available on what basis? Select one: a. At any time the employee wishes to enroll b. At the employer's discretion c. At the insurance company's discretion d. At the time of hire or other annual open enrollments

At the time of hire or other annual open enrollments

Jim applies for reinstatement after his health policy lapses. He submits all requirements, including the premiums. He hears nothing further from the company. This policy is in effect: Select one: a. When 30 days have passed without notification b. When his agent binds the contract c. Automatically in 45 days if the company takes no action d. Only when the company notifies him he has coverage

Automatically in 45 days if the company takes no action

All of the following are true about a Medical Expense policy, EXCEPT: Select one: a. Available on a group basis only b. Covers both accidental and sickness losses c. Pays benefits outlined in the policy d. Covers both inpatient and outpatient expenses

Available on a group basis only

In a business buy/sell policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

Benefits are tax-free, and premiums are not deductible.

In a key person disability policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

Benefits are tax-free, and premiums are not deductible.

Jeb has an individual health policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

Benefits are tax-free, and premiums are not deductible.

Marco has an individual disability policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

Benefits are tax-free, and premiums are not deductible.

Short-term disability plans may be designed with any of the following features, EXCEPT: Select one: a. Benefits may be paid as a percent of income. b. Benefits may be paid as a flat indemnity amount. c. Benefits will coordinate with Workers' Compensation. d. Both accidents and sicknesses will be covered.

Benefits will coordinate with Workers' Compensation.

If Karl's grandmother decides to exercise the accelerated benefit option of her life policy, which of the following is a responsibility of the insurer? Select one: a. Provide the policyholder with an illustration showing the effects on the death benefit b. Notify policyholder that the recipients eligibility for Medicaid could be affected c. Both of the above d. None of the above

Both of the above

A business cannot deduct premiums in all of the following EXCEPT: Select one: a. Business Buy/Sell b. Key person disability c. Business Overhead Expense (BOE) d. None of the Above

Business Overhead Expense (BOE)

Which of the following is a use for whole life insurance? Select one: a. Reducing the debt of the policy holder b. Cash for emergencies c. Investments d. Hiding assets

Cash for emergencies

Which of the following may be an optional provision under the Uniform Provisions Law? Select one: a. Physical exam b. Change in occupation c. Entire contract d. Time limit to file claims

Change in occupation

All of the following provisions are mandatory in health policies, EXCEPT: Select one: a. Coinsurance provision b. Grace period c. Payment of claims provision d. Reinstatement provision

Coinsurance provision

All of the following are true about Roth IRAs, EXCEPT: Select one: a. The contributions are the same as a traditional IRA. b. Contributions are tax deductible. c. The withdrawals are tax-free. d. Contributions are limited to a person with an income less than $105,000 to $120,000.

Contributions are tax deductible

The purpose of pre-certification is to: Select one: a. Penalize the employees who over utilize their program b. Prevent over use of emergency rooms c. Control the cost of an admission to the hospital d. Require a second opinion for surgery

Control the cost of an admission to the hospital

On the first page of any long-term care policy there must be a clause explaining to the buyer that the policy may not: Select one: a. Be used by any person not covered in the policy b. Cover all medical expenses c. Be transferred to others d. Be used fraudulently

Cover all medical expenses

Rudy suffered an injury in an automobile accident. His policy covers disabilities as a result of an accident. In this case, he did not qualify for disability benefits. His injury most likely: Select one: a. Was an outpatient procedure that did not require hospitalization b. Did not meet the threshold to qualify for disability payments c. Was treated in the emergency room, which is not covered d. Did not meet his deductible

Did not meet the threshold to qualify for disability payments

If the total of a taxpayer's medical expense exceeds 10% of their adjusted gross income, all of the following can be deducted, EXCEPT: Select one: a. Accident insurance premiums b. Disability insurance premiums c. Health insurance premiums d. Long-term care premiums

Disability insurance premiums

An insurance company may not modify the policy agreement (contract) without the insured's written permission. The part of the policy that addresses this is called which of the following? Select one: a. Uncontested legal action provision b. Incontestable provision c. Entire contract provision d. Modifying benefits provision

Entire contract provision

Replacement is defined as any of the following, EXCEPT: Select one: a. Existing life insurance is lapsed b. Existing life insurance is renewed with the same amount of coverage c. Existing life insurance is reduced in value by the use of nonforfeiture benefits d. Existing life insurance is continued as extended term insurance

Existing life insurance is renewed with the same amount of coverage

A producer submitted an application with a premium. After underwriting, the insurer sent back the policy, rated, with an impairment rider. What should the producer do now? Select one: a. Explain the issue and collect an additional premium. b. Explain that the policy is rated. c. Nothing d. Tell the applicant that they were declined.

Explain the issue and collect an additional premium.

An HMO plan is characterized by all of the following, EXCEPT: Select one: a. Community rating b. Periodic wellness testing c. Annual open enrollments d. Free choices of any provider

Free choices of any provider

The cash value in a whole life policy is held in the insurance company's: Select one: a. Cash value account b. Separate account invested in government bonds c. General account d. Separate account for that class of policies

General account

What is a life insurance policy that has a face amount that cannot be changed? Select one: a. Adjustable life b. Universal life c. Graded premium whole life d. Variable universal life

Graded premium whole life

Old Reliable issues a policy that may not be cancelled by the insurance company, except for non-payment of premium. The company does have the right to adjust premiums for an entire class of business. This type of policy is called which of the following? Select one: a. Guaranteed level premium b. Non-cancellable and renewable c. Guaranteed renewable d. Variable rate policy

Guaranteed renewable

Carl is unable to work due to a medical condition. He has been confined to his home for four months and wants to begin the process for filing a disability claim with Social Security. All of the following are true, EXCEPT: Select one: a. He should wait until he has completed 5 months of waiting. b. He should be eligible for Medicare before he applies. c. His disability should prevent him from working at all. d. He should expect to be disabled for 12 months or more.

He should be eligible for Medicare before he applies.

Steven currently earns $50,000 annually. He has calculated that he should have approximately $1,500,000 in life insurance to be sure his family is guaranteed the lifestyle he would provide if he dies. This approach is called: Select one: a. Human Life Value b. Future Income Planning c. Needs analysis d. Capital accumulation

Human Life Value

Upon receipt of proof of loss for an individual health policy, a valid claim settlement must be paid: Select one: a. Immediately b. Within 7 days c. Within 21 days d. Within 30 days

Immediately

Clarice is the owner of the life insurance policy on her husband Herb. Which of the following can she NOT do without Herb's consent? Select one: a. Change the designated revocable beneficiary b. Make a policy loan c. Increase the amount of the insurance d. Surrender the policy for its cash value

Increase the amount of the insurance

A change of occupation provision will allow the insurance company to do any of the following at the time of claim, EXCEPT: Select one: a. Pay the benefits stated in the policy b. Increase the premiums for that individual c. Pay a reduced benefit for a higher risk occupation d. Require a doctor's statement confirming disability

Increase the premiums for that individual

Matthew had to go to the emergency room for an X-ray. The hospital submitted a claim to his insurance carrier and they paid the hospital's fee for an X-ray. What type of plan does Matthew have? Select one: a. HMO b. PPO c. POS d. Indemnity

Indemnity

A settlement option that would leave the proceeds of the insurance policy with the insurer and the insurer would pay interest to the beneficiary on an installment basis is known as a: Select one: a. Withdrawal provision b. Fixed period option c. Life income option d. Interest only option

Interest only option

During the accumulation phase of the annuity, the interest for a fixed annuity: Select one: a. Only has a guaranteed minimum b. Does not have a guaranteed minimum c. Is the current interest rate, plus a guaranteed minimum d. None of the above

Is the current interest rate, plus a guaranteed minimum

What type of life insurance program would be a good choice for grandparents to help their grandson in later years? Select one: a. A fully funded universal life plan b. Annual renewable term c. Juvenile Life d. A limited pay life plan

Juvenile Life

A business cannot deduct premiums in what type policy? Select one: a. Key person disability b. Group disability c. Individual disability d. Workers compensation

Key person disability

Regarding premiums, what type policy is a company not allowed to deduct them? Select one: a. Key person disability b. Group disability c. Individual disability d. Workers compensation

Key person disability

Regarding the deductibility of premiums for taxes, which of the following is TRUE? Select one: a. LTC policy premiums are deductible over 10%. b. Individual disability premiums are deductible. c. Key employee premiums are deductible. d. Individual medical policy premiums are always deductible.

LTC policy premiums are deductible over 10%.

Which of the following is not an element of insurable risks? Select one: a. Large number of heterogeneous units b. Loss must be predictable c. Loss is definite and measurable d. Loss is not catastrophic.

Large number of heterogeneous units