nebraska life and health quiz questions

How long does a typical temporary producer license last?

180 days

The director denies an application for a license. if the applicant wants to contest this decision, written demand for hearing must be made within how many days?

30 days

which of the following is not applied toward the deductible under a nonscheduled plan>?

annual dental exam

which of the following is an example of prosthetic dental care?

Bridgework

What is the maximum penalty for habitual willful non compliance with the fair credit reporting act? 1. $1,000 2. $100 per violation 3. $2,500 4. Revocation of license

$2,500

How long does the elimination period last for a Social Security Disability claimant? 12 months 5 months 0 months 6 months

5 months

Under which plan does preventative dental treatment not apply toward the deductible?

Nonscheduled

A 60yr old participant in a 401(k)plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? A) No taxes are due since the plan participant is over age 59.5 B) There is a 10% early withdrawal penalty. C) The amount distributed is subject to ordinary income tax. D) The amount of distribution is reduced by the amount of a 20% withholding tax.

The amount of distribution is reduced by the amount of a 20% withholding tax.

In a group life insurance policy, the employer may select all of the following EXCEPT

The beneficiary

The insuring clause of a disability policy usually states all of the following EXCEPT...

The method of premium payment

Who bears the investment risk for fixed annuities?

insurer

Operative treatment of the mouth

Oral Surgery

Premiums paid by self-employed sole proprietors or partners for medical expense insurance are a) Not tax deductible b) Partially tax deductible c) Totally tax deductible d) Taxable

c) Totally tax deductible

all of the following coverages are usually included under dental insurance plans EXCEPT

teeth whitening

most scheduled plans provide first dollar benefits without

coinsurance and deductibles

Shortest possible elimination period for group short-term disability benefits provided by an employer

0 days

Notifications of the birth of a newborn child and payment of the required premium must be furnished to the insurance company within hw many days of birth?

31 days

What is the maximum number of employees that a company can have before it is too large to be labeled as a small employer?

50

how long is the pre-existing condition period under chip?

6 months

How many eligible employees must be included in a contributory plan?

75%

Under which of the following circumstances would an insurer pay accelerated benefits?

An insured diagnosed with cancer and needs help paying for her medical treatment

Under which provision can a physician submit claim information prior to providing treatment?

Prospective review

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

Universal life

for a group policy, the contract is between the insurance company and the employer, union, trust, or other sponsoring organization as opposed to the individual policy where the contract is between the insurance company and the insured

True

A guaranteed renewable health insurance policy allows the

Policyholder to renew the policy to a stated age with the company having the right to - increase premiums on the entire class

What percentage of individually owned disability income is taxable?

0%

Which term describes a situation in which people who are the most likely to have claims are also the most likely to seek insurance?

Adverse selection

tax sheltered annuity is a special tax favored retirement plan available to

Certain groups of employees only

Concerning group Medical & Dental insurance, which of the following statements is incorrect? A. Premiums paid by the employer are deductible as a business expense B. Employee benefits are tax deductible the year in which they were received C. Benefits received by the employee are free from federal income tax D. Employee paid premiums may be deducted if certain conditions are met

Employee benefits are tax deductible the year in which they were received

In which of the following situations is it legal to limit coverage based on marital status? A Legal separation during the application process B Divorce within the last six months of applying for insurance C It is never legal to limit coverage based on marital status. D Excessive number of divorces, as defined by the Insurance Code

It is never legal to limit coverage based on marital status.

The dental specialty that deals with the diagnosis and treatment of diseases of the supporting tissues is ______________.

Periodontics

An underwriter may reject an application for health insurance if the rejection is based upon which of the following?

Prescription usage

Under a disability income policy, the insurer pays a monthly benefit that is less than the insured's income. What is the reason for that?

Prevent over utilization and malingering.

What is the main purpose of the Seven-pay Test?

To determine if a life insurance policy is a Modified Endowment Contract

Which of the following types of policies will provide permanent protection?

Whole life

What is the period of coverage for events such as death or divorce under COBRA?

36 Months

Julie must have orthodontic work performed on her incisors. Which type of service would this be called, under a nonscheduled plan?

Major service

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?

10%

Which of the following programs expands individual public assistance programs for people with insufficient income and resources?

Medicaid

A 55 year old employee has worked part-time for his new employer for 3 months now, but has not been offered health insurance. What factor has limited the employee's eligibility?

Number of hours worked.

Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insureds?

Optionally Renewable

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant.

when does Medicare cover nursing home care?

Only if it is part of treatment for a covered illness or injury

A patient has severe gingivitis and is seeking treatment from his dentist. Which type of dental treatment is this?

Periodontics

Which of the following is an example of a peril covered in an accident and health insurance policy?

Sickness

Which of the following policies would be classified as a traditional level premium contract?

Straight life

in dental insurance what type of care will cover crowns

restorative

which of the following services would be covered by endodontics

root canal

Evaluating information that establishes adverse selection risk is the purpose of which stage of insurance? a. underwriting b. application

A) Underwriting

Which of the following statements is not true of a Combination Dental Plan? A. A combo plan is also known as "superimposed plan" B. Combo plan is basically a combo of a schedule and nonschedule plan C. Combo plan covers diagnostic and preventive care on the usual customary and reasonable basis D. Combo plan uses a fee schedule for other dental services

A. A combo plan is also known as "superimposed plan"

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following? a: Parts A and B of Medicare b: All four parts of Medicare c: Any private insurance policy d: Only Part A of Medicare

A: Parts A and B of Medicare

Which of the following statements is correct concerning taxation of long-term care insurance? a) Excessive benefits may be taxable b) Benefits may be taxable as ordinary income c) Premiums may be taxable as income d) Premiums are not deductible in any case

Answer: A excessive benefits may be taxable

An insured has Medicare Part D coverage. He has reached his initial benefit limit and must now pay 50% of his prescription drug costs. What is the term for this gap in coverage? A) Blackout period B) Latency period C) Donut hole D) Bridge

C) Donut hole

In reference to fixed annuities, what comprises most of a life insurance company's general account?

Conservative investments like bonds

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit? A Any federal report B Consumer report C Inspection report D Agent's report

Consumer report

All of the following are usually provided under an employer group dental insurance plan EXCEPT

Coverage for cosmetic treatment

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed period

Both Universal Life and Variable Universal Life have a

Flexible premium

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until the insured's death, whichever occurs first.

Guarantee of insurability option in long-term care policies allows the insured to

Increase benefit levels without providing proof of insurability

The type of settlement option which pays throughout the lifetime of two or more beneficiaries is called

Joint and survivor

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

if a dental plan is integrated, it is combined with what type of plan?

Medical

A rider attached to a life insurance policy that provides coverage on the insureds family members is called the

Other insured rider

Which of the following describes taxation of individual disability income insurance premiums and benefits?

Premiums are NOT tax deductible, and benefits are NOT taxable

Which of the following is true regarding a modified guaranteed annuity?

The owner is guaranteed a fixed interest rate for a specific period of time.

Which state has jurisdiction over a group policy that covers individuals that reside in more than one state?

The state in which the policy was delivered

A deferred annuity is surrendered prior to annuitization. Which of the following best describes the non-forfeiture value of the annuity?

The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

The type of investment

Which of the following is true regarding benefits paid to disabled employees?

They may be subject to taxation if the premium was paid by the employer.

An insured has dental coverage provided under a Comprehensive (nonscheduled) Dental Plan. Which service provided by the plan would NOT require the insured to pay a deductible or copayment? a. Extraction of a tooth b. Filling of a tooth c. Orthodontics d. Preventive care

d) Preventive Care

A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called a)Qualified distribution. b)Premature distribution. c)Rollover. d)1035 exchange.

d)1035 exchange.

what is true regarding taxation of dividends in participating policies?

dividends are not taxable

when may an insured deduct unreimbursed medical expenses paid under long term care policy

when the expenses exceeds a certain percentage of the insured's adjusted gross income

HIPAA applies to groups of ___ or more.

2

Your client wants to know what the tax implication are for contributions to a Health Savings Account. You should advise her that contributions are A) Tax deductible. B) Subject to personal income taxes. C) Post-tax dollars. D) Subject to capital gains taxes

A) Tax deductible.

Underwriting is a major consideration when an insured wishes to replace her current policy for all the following reasons EXCEPT A. premiums always stay the same B. due to age or health, the policy may change drastically C. preexisting conditions that were previously covered may not be covered under the replacing policy D. benefits may change

A. premiums always stay the same

An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true? A) He cannot withdraw money from his MEC before age 59 1/2 B) He will have to pay a penalty if he is younger than 59 1/2 C) He will have to pay a penalty regardless of his age D) He will not have to pay a penalty, regardless of his age

B He will have to pay a penalty if he is younger than 59 1/2

Employer contributions made to a qualified plan A) Have no vesting requirement B) Are taxable as salary C) Are subject to vesting requirements. D) Are taxable

C) Are subject to vesting requirements.

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is MOST likely to:

Charge and extra premium

Which of the following would not be used in preventive care?

Chemotherapy

What process will the insurance company use to monitor the insured's hospital stay to make sure that everything is proceeding according to schedule?

Concurrent review

Which of the following is NOT a characteristic of a group long-term disability plan?

Contracting with insurance companies

An insured is receiving hospice care. His insurer will pay for painkillers but not for an operation to reduce the size of a tumor. What term best fits this arrangement?

Cost-containment

All of the following statements concerning workers compensation are correct EXCEPT A) Workers compensation laws are establish by each state. B) All states have workers compensation. C) Benefits include medical, disability income, and rehabilitation coverage. D) A worker receives benefits only if the work related injury was not his/her fault.

D) A worker receives benefits only if the work related injury was not his/her fault.

which of the following factors about the insured determines the amount of disability benefit that the insured will receive?

Income

If a retirement plan or annuity is "qualified", this means

It is approved by the irs

If an annuitant selects the straight life annuity settlement option, in order to receive all of the money out of the contract, it would be necessary to...

Live at least to his life expectancy.

Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives?

None

Which type of retirement account allows contributions to continue beyond age 70 1/2 and does not force distributions to start at age 70 1/2?

Roth IRA

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Which of the following best describes taxation during the accumulation period of an annuity?

Taxes are deferred.

Randy transfers his life insurance policy to his son Andy two years before Randy's death. Which of the following is true?

The entire face value of the policy will be included in Randy's taxable estate.

Which statement accurately describes group disability income insurance?

The extent of benefits offered is determined by the insured's income.

Under a SIMPLE plan, which of the following is true regarding taxation on both contribution and earning ?

They are tax deferred till withdrawn

Which provision states that the Insurance Company must pay Medical Expense claims immediately?

Time of Payment of Claims Provision

Which of the following would NOT be considered a primary risk factor in underwriting individual health insurance policies? a. Martial status b. Physical condition of the applicant c. Occupation of the applicant d. Moral hazard

a) Martial status

Which of the following is NOT provided by an HMO? a) Reimbursement b) Services c) Financing d) Patient care

a) Reimbursement

Under the 401k bonus or thrift plan, the employer will contribute

an undetermined percentage for each dollar contribute by the employee

An insured has a major medical policy with a $500 deductible and a coinsurance clause of 80/20. If he incurs medical expenses of $4,000, the insurer would pay a. $3,200. b. $2800

b. $2800

In order for costs to be covered under a dental plan, what is the minimum interval that must pass between routine dental exams?

6 months

Dental Expense policies generally have a deductible that would apply to all of the following services, EXCEPT: A Preventative care B Prosthodontics C Orthodontics D Endodontics

A Preventative care

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim.

Which of the following groups would probably be covered by blanket insurance?

A university's sports team

Which of the following is NOT an allowable 1035 exchange

A whole life insurance policy is exchanged for a term insurance policy

For a retirement plan to be qualified, it must be designed for the benefit of A) Employees B) Key employee C) Employer D) IRS

A) Employees

Ted and Fred are attorneys at law and operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose A) HR10 (Keogh Plan). B) Section 457 Deferred Compensation Plan. C) 403(b) PLAN. D) 401(k) plan.

A) HR-10 (Keogh Plan). HR-10 (Keogh Plans) are plans specifically for self-employed and their employees.

which type of dental treatment involves the dental pulp within the teeth?

Endodontics

Why is an equity indexed annuity considered to be a fixed annuity? A. It is not tied to an index like the S&P 500. B. It has a guaranteed minimum interest rate. C. It has modest investment potential. D. It has a fixed rate of return.

B. It has a guaranteed minimum interest rate

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's A Habits. B Prior insurance. C Ancestry. D Credit history.

Ancestry

When an annuity is written, whose life expectancy is taken into account?

Annuitant

Workers Compensation benefits are regulated by which entity? A) Federal Government B) State Government C) Employer D) Insurer

B) State Government

A dental plan that provides coverage based upon a specified maximum schedule amount for each procedure and pays on a "first dollar" basis with no deductible or coinsurance is a

Basic or scheduled plan

Which of the following is not typically excluded from life policies?

Death due to plane crash for a fare paying passenger

Which of the following is not considered a basic service under a nonscheduled plan

Dentures

who has the authority to issue a cease and desist order

Director

Which of the following terms is used to name the non-taxed return of unused premium?

Dividend

An applicant has a history of heart disease in his family, so he would like to buy a health insurance policy that strictly covers heart disease. what type of policy is this?

Dread disease coverage

The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Joint life

Which of the following is not covered by Medicare?

Long-Term Care

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Lower

Which type of service under a nonscheduled plan typically has large deductibles and pays around 50% for the services provided?

Major Service

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?

No, the group must be formed for a purpose other than obtaining group insurance.

The fair credit reporting act

Regulates consumer reports

When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis? a.Scheduled b. Reimbursement

Reimbursement

Which of the following determines whether disability insurance benefits are taxed?

Whether the premiums are tax deductible

Who is the beneficiary in a Credit health policy

lending institution

Which of the following groups would most likely be covered under a blanket accident policy? a) Independent contractors who work for a general contractor b) Students at a public school c) Office workers for a retail business d) Factory workers at the automobile assembly plant

Answer: B Students at a public school

A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following?

Cash out to the owner's business partner to accomplish a buyout

The provision which states that both the printed contract and a copy of the application for the contract between the policy owner and the insurer is called

Entire contract

What type of annuity activity will cause immediate taxation of the interest earned?

Surrendering the annuity for cash

A 403(b) plan, commonly referred to as a TSA, is available to be used by

Tax sheltered annuities, commonly referred to as 403 (b) plans are designed for teachers and not-for-profit organizations.

Which of the following is NOT a characteristic of a group longterm disability plan?

The benefit can be up to 50% of one's yearly income

what form of the annuity settlement options provides payment to an annuitant for the rest of the annuitant's life and ceases and the annuitant's death?

pure life

How are contributions to a tax-sheltered annuity treated with regards to taxation?

they are not included as income for the employee, but are taxable upon distribution

Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending? a. unlimited b. 1 examination per week of the claim processing period

unlimited

Health plans that cover a small group of individuals; however, unlike group insurance each individual is issued an individual polic

Franchise Insurance

If taken as a lump sum, life insurance proceeds to beneficiaries are passed

Free of federal income taxation.

Which of the following is NOT a feature of a noncancelable policy? a) The insurer may terminate the contract only at renewal for certain conditions. b) The premiums cannot be increased beyond the amount stated in the policy. c) The guarantee to renew coverage usually applies until the insured reaches certain age. d) The insured has the right to renew the policy for the life of the contract.

a) The insurer may terminate the contract only at renewal for certain conditions.

Which of the following hospice expenses is not covered in a cost containment setting? a) Antibiotic drugs b) Palliative measures c) Painkillers d) A specially designed hospital bed

antibiotic drugs

Medicaid provides all of the following benefits EXCEPT a. Family planning services. b. Income assistance for work-related injury.

Income assistance for work-related injury

Your client's employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain?

Individual

All of the following are non-forfeiture options except

Interest only

The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which option should the policy owner choose?

Interest only option

Which of the following statements is NOT true concerning Medicaid? a.It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income. b. its a state program

It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income.

Which is true regarding HMO coverage?

It is divided into geographic territories

Which of the following is an example of a limited-pay life policy?

Life paid up at age 65

Fixed annuities provide all of the following EXCEPT

Hedge against inflation.

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated

For how many years is the Director appointed? A 3 B 5 C 10 D There is not a set limit.

D There is not a set limit.

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deferred

Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner? A) Disability BuySell B) Disability Interest Buy-Out C) Corporate Transfer D) Corporate Disability

Disability buy-sell

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

Full death benefit

A Universal Life insurance policy has two types of interest rates that are called

Guaranteed and current

An individual is purchasing a permanent life insurance policy with a face value of 25,000. While this is all the life insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options shod be included in the policy?

Guaranteed insurability option

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest rate is 3%. During an economic downswing, the investment only drew 2.5%. What interest rate will the insurer pay to its policyholders?

2.5%

Underwriting for disability insurance is unique due to the type of risk involved. Which of the following situations illustrates this?

A construction worker pays a higher premium and receives a poorer classification of disability.

If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?

Adjust the benefit in accordance with the increased risk.

Which of the following describes the tax advantage of a qualified retirement plan? A) Employer contributions are deductible as a business expense when the employee receives benefits B) Employer contributions are not taxed when paid out to the employee. C) The earnings in the plan accumulate tax deferred D) Distributions prior to age 59.5 are tax deductible

C) The earnings in the plan accumulate tax deferred

All of the following benefits are available under Social Security EXCEPT: A) death benefits. B) disability benefits. C) welfare benefits. D) old age or retirement benefits.

C) welfare benefits. Social Security provides death benefits, old-age or retirement benefits and disability benefits to eligible workers. Social Security is an entitlement program, not a welfare program.

Which of the following is true regarding taxation of dividends in participating policies? A. Dividends are considered income for tax purposes B. Dividends are taxable in some life insurance policies and nontaxable in others C. Dividends are nontaxable D. Dividends are taxable only after a certain amount is accumulated annually

C. Dividends are nontaxable

Which of the following is true of a qualified plan? A) It does not need to have a vesting schedule? B) It may discriminate in favor of highly paid employees. C) It may allow unlimited contributions. D) It has a tax benefit for both employer and employee

D) It has a tax benefit for both employer and employee

In a direct rollover, how is the money transferred from one retirement plan to a new one?

From trustee to trustee

Your client's employer does not offer a company wide annuity contract. What type of annuity contract could your client obtain?

Individual.

Judy is involved in a car accident. After the accident is determined to be Judy's fault, the police give her a breathalyzer test to determine whether or not she had been drinking alcohol before the accident. Her blood alcohol level is over the legal limit. What type of health benefits will Judy's policy pay for her injuries if the policy includes the narcotics and intoxicants provision?

No benefits

Any occupation disability typically means that an individual is unable to perform the duties of the occupation for which he/she is suited by all of these EXCEPT

Preference

Which of the following do the Standard and Preferred risk categories share?

Premiums are not elevated

Rose bought three policies from the same insurer. Her benefits have exceeded the max allowed by the insurer. Which of the following will happen?

Pro rata benefit reduction

Which of the following applicants would NOT qualify for a Keogh Plan?

Someone who works 400 hours per year

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person.

A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity? a. The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges. b. A deferred annuity cannot be surrendered prior to annuitization. The owner must wait until the annuitization period begins to receive any payments.

The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges.

The HMO Act of 1973 required employers to offer an HMO plan as an alternative to regular health plans if the company had more than 25 employees. How has this plan since changed?

They no longer have to offer HMO as an alternative plan

which of the following is not a characteristic of a single (k) plan?

Unlimited contributions

Which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase?

Withdrawn amounts are taxed on a last-in-first-out basis.

who can make a fully deductible contribution to a traditional IRA

an individual not covered by an employer sponsored plan who has earned income

an IRA purchased by a small employer to cover employees is known as a 1. 403(b) plan 2. simplified employee pension plan 3. 401(k) plan 4. defined contribution plan

simplified employee pension plan

An insurance agent proposed an individual health insurance policy that is guaranteed renewable. If the applicant accepts this policy, the insurer agrees that

the company will continue to renew the policy until the insured has reached age 65

which of the following is NOT true regarding equity indexed annuities? 1. they earn lower interest rates than fixed annuities 2. the insurance company keeps a percentage of the returns 3. they have guaranteed minimum interest rates 4. they are less risky than variable annuities

they earn lower interest rates than fixed annuities

All of the following statements are Medicare supplement insurance policies are correct EXCEPT a) Medicare policies cover the cost of extended nursing home care b) Medicare policies cover Medicare deductibles and copayments c) Medicare policies supplement Medicare payments d) Medicare policies are issued by private insurers

Answer: Medicare policies do not cover the cost of extended nursing home care.

all of the following qualify for a Medicare part A except

Anyone who is willing to pay a premium

A husband and wife are insured under group health insurance plans at their places of employment. Because their employers pay for their plans, each is covered as a dependent under their spouse's coverage. If the husband is hospitalized, how are the medical expenses likely to be paid? A) The husband will have to select a plan from which he wants to collect benefits B) The benefits will be coordinated C) Neither plan would pay D) The husband can collect from each plan

B the benefits will be coordinated

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

Beneficiary

An individual is insured under his employer's group Disability Income policy. The insured suffered an accident while on vacation that left him unable to work for 4 months. If the disability income policy pays the benefit, which of the following would be true?

Benefits that are attributable to employer contributions are fully taxable to the employee as income.

A noncontributory group disability income plan has a 30-day waiting period and offers benefits of $2,000 a month. If an employee is unable to work for 7 months due to a covered disability, the employee will receive A $12,000, all of which is taxable. B $14,000, none of which is taxable. C $14,000, all of which is taxable. D $12,000, none of which is taxable.

$12,000, all of which is taxable

temporary producer license may be issued for the maximum of how many days?

180 days

Minimum number of employees that an employer must have in order to be classified as a small employer?

2

The Omnibus Budget Reconciliation Act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under

Age 65 who not are retired

A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following?

Non-forfeiture option guarantees that the owner will receive a surrender value of the contract.

A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent most likely explained which of the following

Nonforfeiture option guarantees that the owner will receive a surrender value of the contract.

A patient has severe gingivitis and is seeking treatment from his dentist. Which type of dental treatment is this?

Periodontic- dental treatment of the soft gun

Which of the following is correct regarding the taxation of group medical expense premiums and benefits? A Premiums are not tax deductible and benefits are taxed. B Premiums are not tax deductible and benefits are not taxed. C Premiums are tax deductible and benefits are taxed. D Premiums are tax deductible and benefits are not taxed.

Premiums are tax deductible and benefits are not taxed.

A long-term care shopper's guide must be presented at what point?

Prior to the time of the application

Which type of dental treatment involves the replacement of natural teeth with artificial devices?

Prosthodontics

The act that sets the standards for advice given by insurance producers regarding annuities is known as the Nebraska

Protection in Annuity Transaction Act

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a face amount

Which of the following best describes a pure life annuity settlement option?

Pure life provides payment for as long as the annuitant is alive

What type of care would cover the cost of fillings?

Restorative

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all the premiums paid. Which rider is attached to the policy?

Return of premium

Group life insurance policies issued in Nebraska must contain all of the following provisions EXCEPT

Statements of the applicant are considered warranties

After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is this percentage called?

Surrender charge

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash values is reduced to nothing

Which of the following is TRUE regarding the premium in term policies?

The premium is level

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

The purpose of the group was to purchase life insurance

what is the tax consequence of amounts received from a traditional IRA after the money was left in a tax deferred account by beneficiary

income tax on distributions and no penalty

Group disability income insurance premiums paid by the employer are

tax-deductible to the employer as a business expense

Which renewability provision are you most likely to see on a travel accident policy? A) Period of time B) Noncancellable C) Optionally renewable D) Conditionally renewable

A) Period of time

When must an IRA be completely distributed when a beneficiary is not named

December 31 of the year that contains the fifth anniversary of the owner's death

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

An applicant buy a nonqualified, but dies before the starting date. For which of the following beneficiaries would the contract's interest NOT be taxable ?

Spouse