Life and health insurance 4

Long-term care policies sold in Arizona may offer coverage in which

Benefits are based on an individual's ability to perform activities of daily living

A preferred provider plan and an indemnity plan are similar in what way?

Both pay on a fee-for-service basis

A comprehensive group policy also covers expenses related to vision care. Which of the following is not typically covered under vision plan?

cataract surgery

An individual is insured under a major medical plan with a $1,000,000 lifetime benefit l. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year, what is the remaining lifetime benefit?

$960,000

I'm long-term care insurance, what is the length of time for which claims will be paid?

Benefit period

The health insurance premiums paid for by each partner in a partnership is considered to be

100% tax deductible

Participants of a small group medical plan MUST be given advance notice of at least ___ days prior to the plans discontinuation

180

I'm Arizona, at least ___ employee(s) are needed for a small employer medical expense plan.

2

Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of

20%

An insurer MUST wait ___ days to bring legal action against tan insurer after written proof of loss has been received by the insurer.

60

According to the Telemarketing Sales Rule, what is the earliest time of the day that telemarketing calls may be received?

8:00 am

Telemarketing calls may ONLY be recieved between the hours of

8:00 am and 9:00 pm

Which of the following combinations best describe a universal life insurance policy?

A flexible premium deposit fund and a monthly renewable term insurance policy

A policyowner pays the first annual premium for a $50,000 life insurance policy and does one month after the policy effective date. Which of these statements is normally true?

Beneficiary receives $50,000 income tax-free

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

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

The highest mortality rate belongs to which group?

Age 70 males

What is a major difference between private commercial insurers and HMOs?

An HMO combined medical care delivery and funding in one organization

Which is an accurate description of the premium in a graded premium life insurance policy?

Annual increases in premium for a stated number of years then levels off for the remainder of the contract

In a qualified retirement plan, the yearly contributions to an employees account

Are restricted to maximum limits set by the irs

Shock of these statements regarding insurance is false?

As the number of insured units increases, the number of losses decreases

Notice of information practices must be given to a policyholder

At least once a year

When does the insured stop making payments under a thirty-payment whole life policy?

At the time of death or 30 years after the policy's inception, whichever comes first

Which of the following actions would be considered a felony in the state of Arizona?

Attempting to defraud an insurer

A(n) ___ company is licensed by the Department of Insurance to conduct insurance business in Arizona.

Authorized

According to the Affordable Care Act, new Health Insurance Martketplaces are established by the

CCIIO

Voluntarily terminating an insurance policy is also known as

Cancellation

A(n) ___ captive insurer restricts the exposures it writes ti those of its owners.

Captive

A source of supplement income for a life insurance policyowner can be derived from the

Cash value

If dividend option choices are offered on a whole life insurance policy, the policy MUST

Contain a statement that dividends are NOT guaranteed

What does the rehabilitation benefit cover in a disability income policy?

Covers the approved cost of the rehabilitation necessary to help a disabled insured return to work

To protect information systems, producers, brokers, and insurance companies must implement and maintain a(n):

Cybersecurity policy

When a sum of money undergoes capital liquidation, that sum will

Decrease in size

Which annuity allows contributions to an IRA?

Deferred

Which of these is NOT an underwriting responsibility of a life insurance agent?

Determining the final rate classification

The application is part of the annuity contract according to the

Entire contract clause

Which statement best defines what a Policy Title means on an insurance policy?

Every policy must have a title on the face and on the back of the policy, briefly describing the policy

A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from?

Fair Credit Reporting Act

Which of these is NOT a factor during the health insurance underwriting process?

Former residence

A major medical expense plan typically includes coverage for hospital room and board. Which of the following is normally covered under the category "room and board"?

General nursing care

When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?

Give notice, explain, and allow opting out

According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless the plan is a(n)

Grandfathered plan

Which of the following types of health insurers is characterized by a limited choice of providers?

Health maintenance organization

A family counseling benefit is typically offered under which of these coverages?

Hospice care

Which of the following is NOT subject to the promise to pay in an insuring clause?

How the premium is calculated

When is it acceptable to charge or receive a fee or service charge in addition to the premium in connection with the transaction of insurance?

If the amount of the fee or service charge is reasonably related to the cost of the service

A business may purchase an annuity for all of the following reasons EXCEPT

Informally funding a non-qualified deferred compensation plan

Which of these would NOT be a valid reason to add the waiver of premium rider to a life insurance policy?

It allows a policy loan to cover premium payments if the policyowner becomes totally disabled

Which statement regarding the certificate of insurance is accurate?

It indicates evidence of an employees insurance coverage

I'm regards to health insurance, what is meant by the term "primary policy"?

It is the policy that will pay up to its limit before any other policy pays

Which of the following is associated with an immediate annuity?

Lack of an accumulation period

All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT

Leave a conditional receipt with client

How much is normally paid to a policyowner in a life (viatical) settlement?

Less than the death benefit

What type of premiums are associated with individual mortgage protection life insurance policies?

Level premiums

Which of the following is a syndicate established by a group of insurers to share underwriting duties?

Lloyd's organization

Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment?

Loan amount is increased to reflect the amount of interest due

Custodial care if normally covered under

Long-term care insurance

Which of these would NOT likely qualify as a presumptive disability?

Loss of sight in one eye

Medicare Part A coinsurance payments are covered by

Medicare Supplement Plan A

Which of these actions is considered to be an Unfair Claims Settlement Practice?

Misrepresenting pertinent policy provisions relating to coverage after a loss

Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?

Misstatement of age

Which of the following does NOT meet the requirements of "skilled nursing care"?

Must be provided exclusively in a hospital

I'm Arizona, the Human Immunodeficiency Virus (HIV) consent form

Must disclose who will be recieving a copy of the test results

Which of the following is covered by a basic dental indemnity plan?

Non-surgical periodontal treatment

Which of the following health insurance plans charges a premium that cannot be increased?

Noncancelable

When funds are transferred directly from one IRA to another IRA, what percentage of the tax is withheld?

None

Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?

Nonoccupational coverage

When a deferred annuity is surrendered, who must sign the authorization to do so?

Owner

Mark is covered by a policy that uses the regular occupation (own-occ) definition of total disability. Using this definition, he will be considered disabled if unable to

Perform the substantial and material duties of his regular occupation

Which action will trigger penalty tax on premature distributions from a modified endowment contract (MEC)?

Policy loans

Which of the following statements BEST describes buy-sell insurance policies?

Policy proceeds are typically received income tax-free

What happens to a life insurance policy when the policy loan balance exceeds the cash value?

Policy will no longer be in force

Which of the following accurately describes a participating insurance policy?

Policyowners may be entitled to receive dividends

An insurance producer must keep usual and customary records that pertain to transactions under the producers license, at their ___.

Principle place of business

A statement MUST be signed by the ________ for any illustrations used in the sale of a life insurance policy.

Producer

Which of the following would NOT be a reason for purchasing life insurance on a child's life?

Provide benefits for the child is the parents die

The ACA (Affordable Care Act) must ensure a sufficient choose of ___ in the marketplace:

Providers

What is considered interstate travel under the Federal Fraud and False Statements act?

Puerto Rico

What type of risk involves the potential for loss with no possibility for gain?

Pure risk

Which of the following disability income provisions allows two periods of disability to be counted as one?

Recurrent Disability

What does a fixed life annuity offer protection against?

Savings depletion due to longevity

Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further payments are permitted and the income stream begins in 15 years. This contract is a(n)

Single Premium Deferred Annuity

A loss of minimum essential coverage usually counts as a qualifying event that triggers what?

Special Enrollment Period

Which of the following entities does NOT establish regulations for variable insurance products?

State attorney general

The Optionally Renewable provision allows what party to cancel the contract?

The insurer

The Arizona Life and Disability Insurance Guatsnty Fund protects an insured in the event of

The insurers insolvency

Which of the following statements about the installments for a fixed period settlement option in life insurance is NOT true?

The periodic payment amount is determined by the beneficiary's age

Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

The policy is surrendered for less than what was paid into it

How is the insurers accident and health claim handled by an insurer if it occurs during the policy's grace period?

The unpaid premium may be subtracted from the reimbursement

How long must a producer maintain customer records for an insurance transaction?

Three years

What of the following BEST describes a "partial disability"?

Unable to perform one or more job duties

How do birthing centers reduce medical costs?

Using certified nurse midwives

If a producer replaces a client's existing life insurance policy with a new one, which of these actions is advisable?

Wait until the new policy is issued and delivered before surrendering existing policy

Accident and health policies exclude loss as result of

War

A contract is considered void in all of the following situations EXCEPT

When consideration is unequal

When would evidence of insurability be required for a person already covered with a variable universal life policy?

When the death benefit is increased

When does the producer give a premium receipt for a life insurance application?

When the initial premium has been paid with the application

bathing, eating and transferring are all types of

activities of daily living

The premiums paid by an employer for his employees group life insurance are usually considered to be

tax-deductible to the employer

In order to contribute to a Health Savings Account (HSA),

the applicant must be enrolled in a High Deductible Health Plan (HDHP)