Missed Practice Questions
How long is an open enrollment period for Medicare supplement policies? a) 6 months b) 1 year c) 30 days d) 90 days
a
20. Under Utah Mini-COBRA, eligible employees may extend their group coverage for a) 3 months. b) 6 months. c) 1 year. d) 30 days.
c
#10. Which statement regarding insurable risks is NOT correct? a) Insurance cannot be mandatory. b) The insurable risk needs to be statistically predictable. c) An insurable risk must involve a loss that is definite as to cause, time, place and amount. d) Insureds cannot be randomly selected.
d
#11. On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are a) Paid at a fixed rate every year. b) Taxable as ordinary income. c) Guaranteed. d) Not taxable since the IRS treats them as a return of a portion of the premium paid.
d
#4. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as a) Coercion. b) Rebating. c) Misleading advertising. d) Defamation.
a
#29. Which statement accurately describes group disability income insurance? a) In long-term plans, monthly benefits are limited to 75% of the insured's income. b) There are no participation requirements for employees. c) Short-term plans provide benefits for up to 1 year. d) The extent of benefits is determined by the insured's income.
d
#40. When is the insurability conditional receipt given? a) After the application has been approved and the premium has been paid b) When an insured individual needs to obtain an insurability receipt for tax purposes. c) If the application is approved before the premium is paid d) When the premium is paid at the time of application
d
#55. When an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply? a) Cost reduction b) Claims reduction c) Claims discrimination d) Case management provision
d
#75. What is the amount a physician or supplier bills for a particular service or supply? a) Assignment b) Coinsurance c) Approved amount d) Actual charge
d
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? a) Defamation b) Unfair discrimination c) Errors and omissions d) Fraud
d
#54. Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to a) Beneficiary of the death benefit. b) The spouse of the insured. c) The insured. d) Creditors.
c
#53. When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a) Consideration b) Legal purpose c) Contract of adhesion d) Acceptance
a
#63. An insurance company must notify the Commissioner whenever it terminates an agent's appointment within how many days of the termination? a) 30 days b) 90 days c) 10 days d) 15 days
a
#76. Which of the following is NOT covered under a long-term care policy? a) Acute care in a hospital b) Adult day care c) Hospice care d) Home health care
a
#8. Which of the following statements about occupational vs. nonoccupational coverage is TRUE? a) Disability insurance can be written as occupational or nonoccupational. b) Group medical expense policies and individual medical expense policies always cover both occupational and nonoccupational injuries. c) Individual disability policies never cover nonoccupational injuries. d) Only group disability income policies can be written on an occupational basis.
a
#1. All of the following are true regarding Key Employee Disability Income insurance EXCEPT a) Premiums are not tax deductible for the employer. b) Benefits are taxable to the employer. c) The employer owns the policy. d) Benefits are paid to the employer to retrain a new person.
b
#36. Which is NOT true regarding an insured who is considered to be a standard risk? a) Special restrictions on the policy are not necessary. b) The insured may have to pay slightly higher premiums. c) The insured's lifestyle is incorporated into this risk judgment. d) The insured's level of health is representative of others in the same age cohort.
b
#51. In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide a coverage that is a) Broader in duration. b) Broader in general. c) More limited in general. d) More limited in duration.
b
#62. To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan? a) 63 days b) 18 months c) 5 years d) 12 months
b
#66. Which of the following is NOT covered under Plan A in Medigap insurance? a) The first three pints of blood each year b) The Medicare Part A deductible c) Approved hospital costs for 365 additional days after Medicare benefits end d) The 20% Part B coinsurance amounts for Medicare approved services
b
Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? a) Proof of Loss b) Payment of Claims c) Change of beneficiary d) Entire Contract Clause
b
#14. The sole proprietor of a business makes a total salary of $50,000 a year. This year, his medical expenses have reached a total of $75,000. What amount may the sole proprietor deduct in regards to his medical expenses? a) $10,000 b) $25,000 c) $50,000 d) $75,000
c
#18. When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called a) Indemnity plans. b) Point of Service Plans (POS). c) Preferred Provider Organization (PPO). d) Managed care.
c
#21. When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called a) Indemnity plans. b) Point of Service Plans (POS). c) Preferred Provider Organization (PPO). d) Managed care.
c
#52. For how many days of skilled nursing facility care will Medicare pay benefits? a) 60 b) 90 c) 100 d) 30
c
#6. Which of the following is NOT a goal of risk retention? a) To increase control of claim reserving and claims settlements b) To fund losses that cannot be insured c) To minimize the insured's level of liability in the event of loss d) To reduce expenses and improve cash flow
c
#68. An insured was mobilized into the U.S. armed forces, which caused his health insurance policy to lapse due to nonpayment of premium. When he was released from active duty 5 months later, he wanted to reinstate his insurance policy. How many days does the insured have to apply for reinstatement of the same coverage? a) 90 days b) 100 days c) 180 days d) 30 days
c
#74. According to OBRA, what is the minimum number of employees required to constitute a large group? a) 20 b) 50 c) 100 d) 15
c
HIPAA applies to groups of a) At least 100. b) More than 2, fewer than 50. c) 2 or more. d) At least 10.
c
#15. Medicare Part A services do NOT include which of the following? a) Post hospital Skilled Nursing Facility Care b) Hospitalization c) Hospice Care d) Outpatient Hospital Treatment
d
Which statement accurately describes group disability income insurance? a) In long-term plans, monthly benefits are limited to 75% of the insured's income. b) There are no participation requirements for employees. c) Short-term plans provide benefits for up to 1 year. d) The extent of benefits is determined by the insured's income.
d
