Nevada Life and Health

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2500

What is the maximum amount that Nevada Life & Health Insurance Guaranty Association may be obligated to pay with respect to a major disability or loss of life?

$500,000

For what time period can coverage be excluded on permissible pre-exisiting conditions applicable to a Medicare supplement insurance policy?

6 months after the effective date of the policy

what percentage of participants is required in a contributory group plan?

75%

Accident and health producers may qualify to sell continuous care coverage if they complete a minimum of how many hours approved instruction compensation and employer liability insurance?

8 hours

Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within

90 days

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accidental policy should include:

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

Long term care policies MUST Cover:

Alheimer's disease.

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean?

All providers will have the same coverage options and conditions for each plan.

which of the following would be deducted from the death benefit paid to a beneficiary, if partial accelerated death benefit had been paid out while the insured was still alive?

Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit.

The death protection component of Universal Life insurance is ALWAYS:

Annually renewable Term

What action by an insurance company will cause an examination by the Commissioner?

Application for initial Certificate of Authority

Employer contributions made to a qualified plan:

Are subject to vesting requirements

What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application?

As long as the policy is in force

In a replacement situation, all of the following must be considered EXCEPT

Assets

What would not be considered a misrepresentation on the part of the insurer?

Backdating policies to secure a lower premium for the insured

What best describes a fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

Kevin and Nancy are married; Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means Nancy will no longer be eligible for health insurance under Kevin. Which of the following options would be best for Nancy at this point?

COBRA

Which of the following is TRUE regarding impatient hospital care for HMO members?

Care can be provided outside of the service area.

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

which of the following is issued by the state department of insurance to show that he insurer has power to write insurance contracts in that state?

Certificate of Authority

Which of the following must be obtained by someone who intends to function as an administrator?

Certificate of Registration

Which of the following entities ultimately determines if an advertisement is deceptive or confusing?

Commissioner

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following except:

Conditions

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements except:

Conditions; Conditions are a part of the POLICY STRUCTURE. Consideration is an essential part of a contract.

an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following principles has the insurer neglected?

Consideration; The binding force in ANY contract is the consideration!

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

Coverage ends and the policy CANNOT be reinstated.

What type of insurance is know as consumer credit insurance?

Credit Insurance

Which of the following is NOT a term for the period of time during which an annuitant or beneficiary receives the money?

Depreciation period

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventative care

All of the following statements concerning the use of the life insurance as an Executive Bonus are correct EXCEPT.

The policy is owned by the company.

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called:

credit life

An insured is covered by a partially contributory group disability income plan that pays benefits of $4,000 a month. How much of the monthly benefit would be taxable?

$3,000. on a partially contributory group disability income insurance, only that portion of the benefits that are related to the employee. In this case, because the employer pays 75% of the premium the employee will be taxed on 75%

Larry has a major medical policy with a $500 deductible and 80/20 coinsurance. Larry is hospitalized and sustains $2,500 in medical bills. How much is Larry responsible to pay?

$900 (Deductible + 20% of the bill after the deductible {20% of $2,000})

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?

10 days

The validity of coverage under a life insurance policy may not be contested, EXCEPT for nonpayment of premium, after the policy has been in force for how many years?

2 years

The Commissioner must give reasonable notice to all interested parties as to the time, place and purpose of a hearing within the minimum of how many days?

20 days

How many consecutive months of coverage (other than in an acute care unit of a hospital) does Long Term Care cover in Nevada?

24

Each insurer must maintain a compete file containing a copy of each document used in solicitation and sale of life insurance products for how long after its last authorized use?

3 Years

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

How many hours of approved continuing education within a 3-year period are required?

30

what is the maximum age for qualifying for a catastrophic plan?

30

What is another name for a primary care physician in an HMO

Gatekeeper

The automatic premium loan provision is activated at the end of the:

Grace Period

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

Guaranteed insurability option.

What are the 2 types of Flexible Spending Accounts

Health care accounts and Dependent care accounts Care = Care

What type of Long term care is NOT provided in an institutional setting?

Home Health Care

The benefits received by the business in a Disability Buy-Sell policy are:

Income tax free

Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT:

Individual members of the group may select the level of benefits for their own coverage.

The Patient Protection and Affordable Care Act does not include what provision?

Individual tax deduction for premiums paid.

Which entity has the authority to make changes to an insurance policy?

Insurer's executive officer

The type of dental plan which is incorporated into a major medical expense plan is a/an

Integrated dental plan

Which of the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee

Concerning Medicare Part B, which statement is INCORRECT?

It is fully funded by Social Security taxes (FICA)

Which of the following statements is NOT correct concerning the COBRA Act of 1985?

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred when starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint life

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as:

Legal action

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Life expectancy

What are the living benefits of whole life insurance?

Loan values and retirement income

Which of the following is an eligibility requirement for Social Security Disability Income benefits?

Must attained fully insured status.

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report:

Must be informed of the source of the report

Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?

Notice of claim

the dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the:

One year term option

If an insured has a continuous premium whole life policy and she wants to use the policy dividends to pay off her policy sooner what dividend option could she use?

Paid up option

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest to pay the policy up early?

Paid-Up OPTION

Jordan purchased a core policy (Plan A) to supplement his Medicare coverage. Following his stay in the hospital, Jordan found out that her supplement policy paid for all of the following except:

Part A deductible

Which of the following provisions is mandatory for health insurance policies?

Physical examination and autopsy

Which of the following would be included in a policy summary?

Premium amounts and surrender values

Insurers may change which of the following on a guaranteed renewable health insurance policy?

Rates by Class

Which health insurance provision describes the insured's right to cancel coverage?

Renewal provision

The owner of a viatical settlement contract rescinds the contract 5 days after receiving the payment, and then unexpectedly dies 2 days later. The contract is considered to be:

Rescineded, subject to repayment of the life settlement proceeds

What would be the appropriate action by the insurer if a prospective insured submitted an incomplete application?

Return the application to the applicant for completion.

A policyowner who is also the insured whats to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights, the policyowner should have her husband named as the:

Revocable beneficiary.

A domestic insurer issuing variable contracts must establish one or more:

Separate accounts.

An insurance policy that only requires payment of premium at its inception, provides insurance protection for the life of the insured's age 100 is called:

Single premium whole life

All of the following long-term care coverage's would allow an insured to receive care at home EXCEPT:

Skilled care

All of the following would be different between qualified and non qualified retirement plans EXCEPT

Taxation on accumulation

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term

Before a customer's agent delivers his policy, the insurer makes a last minute change to the policy. The agent informs the customer of this change. What must the agent do now?

The agent should ask the customer to sign a statement acknowledging that he is aware of the change.

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

A 60 year old participant in a 401K plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?

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

Which of the following is true about the requirements regarding HIV exams?

The applicant must give prior informed WRITTEN consent.

How many pints of blood will be paid for by Medicare Supplement core benefits?

The first 3

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage.

Which of the following is NOT a feature of a guaranteed renewable provision?

The insurer can increase policy premium on an individual basis.

Which of the following is NOT required on an illustration used in the sale of a life insurance policy?

The name of the primary and secondary beneficiaries

How is the length of time that benefits will be received under the Fixed-amount settlement option determined?

The size of each installment

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest than fixed annuities.

Which provision states that the insurance company must pay Medical Expense claims immediately?

Time of Payment of Claims

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

What is the purpose of a fixed-period settlement option

To provide a guaranteed income for a certain amount of time.

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard rates for a specific procedure by a doctor of similar training and experience in that geographic are is known as:

Usual, customary and reasonable

What is continuous care in this state?

Workers compensation coverage

when a life insurance policy is cancelled and the insured has selected the extended nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount:

equal to the original policy for as long a period of time that the cash value will purchase

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT:

has atleast 50 members.

The paid up addition option uses the dividend to:

purchase a smaller amount of the SAME type of insurance as the ORIGINAL policy!

For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are:

tax deductible

which of the following is NOT a feature of guaranteed renewable provision?

the insurer can increase the policy premium on an individual basis.