NH Insurance
First time home buyers are able to withdraw up to how much from their qualified IRAs without incurring the 10% early withdrawal penalty?
$10,000
Health insurance policies must provide a minimum free-look period of ____ days upon policy delivery.
10
The free look period provided in a life insurance policy is usually ____ days
10
What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?
100%
What is the maximum social security disability benefit amount an insured can receive?
100% of the insured's Primary Insurance Amount (PIA)
In NH, the age discrimination in employment act rules apply to employer groups with at least
15 or more employees
In NH, a temporary license may be issued for a period not to exceed ____ days
180
How many employees must an employer have for the consolidated omnibus budget reconciliation act of 1985(cobra) to apply?
20
Non-qualified medical expense distributions from a health savings account(hsa) have a tax penalty of
20%
The free look period for long term care insurance policies sold in nh is ___ days.
30
If a court has ordered health coverage be provided for an ex-spouse or minor child under a covered employee's health benefit plan, a request for enrollment must be made within _____ days after issuance of such court order.
30 days
The age discrimination in employment act provides protection for employment discrimination beginning at age
40
Disability income insurance normally excludes coverage for disabilities that arise from
Active military duty
Which of the following is not a reason for a business to buy key person life insurance?
An increased pension liability if the key employee dies
Which statement is INCORRECT concerning a tax-sheltered annuity(TSA)?
Annual investment gains are included in participants gross income
A description of a qualified plans insurance contract may be found in which ERISA reporting form?
Annual return/report (Form 5500)
In a qualified retirement plan, the yearly contributions to an employee's account
Are restricted to maximum limits set by the IRS
Accident and health insurance claim handling is made more convenient to the insured by utilizing
Assignment of benefits
If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be increased
At least once per year from when benefits begin
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
A(n) ________ insurer may sell insurance contracts in NH
Authorized
Which statement regarding the cash value of a whole life insurance policy is correct?
Available to the policyowner when policy has been surrendered
Which of the following statements BEST describes a double indemnity provision in travel accident insurance?
Benefits are doubled under certain circumstances stated in the policy
ABC corporation purchases and is beneficiary of an individual disability income insurance policy on a key employee. Which of the following statements is true?
Benefits are received tax-free by the company
The change of occupation provision in a disability income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply?
Benefits can be increased in the event of a covered claim
Which of the following statements is true regarding accident and health insurance claims that reimburse on an indemnity basis?
Claims can be sent directly to the insured
All of these are considered to a be a violation of the Federal Fraud and False statements act EXCEPT
Claims reimbursement
Prepaid dental plans differ from most other types of dental plans in what way
Closed panel of dentists can only be used
Which of the following does not involve a life settlement transaction?
Converting term life insurance to whole life insurance
Individual and group health insurance typically exclude coverage for which of the following?
Cosmetic surgery
The main purpose of an annuity is to
Create a stream of income
What effect does interest income have upon insurance premiums?
Decreases premium
The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the
Deductible amount
An individual, age 45, would like to help pay for his daughter's college expenses in 10 years. Which annuity would be appropriate for this individual?
Deferred annuity
Which of these is not an underwriting responsibility of a life insurance agent?
Determining the final rate classification
For purpose of disability income insurance, earned income would include all of the following except
Dividends
Which of these if NOT considered to be an activity of a daily living(ADL)?
Driving
Which statement about group life insurance is incorrect?
Each participant requires evidence of insurability
Disability income policies provide protection for which of the following?
Economic death
A group health insurance policy is a contract between an
Employer and insurance company
Long term care policies will usually pay for eligible benefits using which of the following methods?
Expense incurred
When replacing a long term care policy in NH, all of the following must be considered EXCEPT
Experience Rating
Which statement concerning a decreasing term life policy is accurate?
Face amount decreases over the policy period
Which tax cost is normally associated with death?
Federal estate tax
Which tax is normally associated with an individual's death?
Federal estate tax
The "Use it or Lose it" rule applies to
Flexible Savings Accounts
Which of the following contracts offer deferred taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value?
Flexible premium fixed annuity
What is considered a valid reason for small corporations to insure the lives of its major stockholders?
Fund a buy-sell agreement
Insurable interest in one's own life is legally considered as
Generally unlimited
A large corporation pension plan purchased an accumulation annuity contract where all of the participating employees received certificates of participation. What is this contract called?
Group deferred annuity
What is the name of the rider that provides an additional purchase option in a life insurance policy?
Guaranteed insurability rider
An organization that requires healthcare services to be provided by a network of physicians and hospitals is known as a(n)
HMO
A producer's license may only be suspended or revoked if the producer
Has been afforded a right to a hearing
Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis?
Her employer's group accident and health plan
A single premium deferred annuity sometimes contains a bailout feature. Which statement regarding this feature is correct?
If the interest rate falls below a specified level, the surrender charge is waived
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?
Incontestable clause
The medical information bureau consists of members from which group?
Insurance companies
Which statement regarding whole life insurance is accurate?
Insurance coverage can continue for life
Which of these statements reflects an accurate portrayal of Medicare SELECT?
Insured uses preferred providers in exchange for paying lower premiums
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
The initial premium for a life insurance policy is typically paid in what way?
It is typically obtained by the producer and forwarded to the insurer
A retired couple would like to maximize the income derived from their combined life savings and have it payable until they both die. Which annuity would be their best choice?
Joint and survivor annuity
A(n) _______ enrollee is a person who elects coverage for a small group accident and health plan AFTER the initial eligibility period
Late
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
Less than the policy's face amount
What is covered under a limited accident and health insurance policy?
Limited perils and amounts
Which of these would not likely qualify as a presumptive disability?
Loss of sight in one eye
A producer is determining the suitability of an annuity to a client. During the meeting, the producer MUST
Make reasonable efforts to fit the annually with the client's needs
John bought a deferred annuity on Mary. John amends the contract years later to name Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract?
Mary
Field underwriting by a producer
May result in the disclosure of hazardous activities of the applicant
In NH, false advertising is an example of
Misrepresentation
In NH, the Human Immunodeficiency Virus (HIV) consent form
Must disclose who will be receiving a copy of the results
How would preventative care be encouraged in a dental plan?
No deductible on routine examinations
Failure to meet the continuing education credit requirements in NH may result in
Non-renewal of the license
If a Medicare Supplement policy is cancelled by the insurer, which of these circumstances does NOT require prior approval by the Commissioner?
Nonpayment of premium
Which of these is not an Unfair Claims Settlement Practice?
Offering to settle a claim by arbitration
Which of the following is not a function of accident and health insurance?
Pays a death benefit as a result of natural causes
What happens to a life insurance policy when the policy loan balance exceeds the cash value?
Policy will no longer be in force
How is the insured protected if a payor benefit rider is attached to the life insurance policy?
Premium payments are waived in the event the premium payor dies or becomes disabled
Which statement regarding the life insurance premium for a children's rider is true?
Premium remains the same no matter how many children
How are level term policies able to provide level premiums?
Premiums are averaged over the term of the policy
Alan is an enrollee of a health maintenance organization(HMO) which uses a gatekeeper system. If there ever comes a time when he needs emergency health services, what should he do?
Proceed to the nearest emergency room
Replacement regulations exist in order to
Protect policy owners from misrepresentations and loss of benefits
A Medicare supplement policy is required to do which of the following?
Provide a 30 day free-look period
Which of the following would not be a reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
How do benefit payments fluctuate over time in a variable life annuity?
Reflects changes in the market value of assets in a separate account
When a lapsed policy's premium has been paid current, it has the potential of being
Reinstated
A(n) _________ insurer assumes risk from another insurance company
Reinsurance
What is the insured responsible for when a producer is acting within the scope of authority granted in the agency contract?
Responsible for acts by the producer that are authority only
What kind of arrangement gives the policyowner the right to change the beneficiary?
Revocable designation
What does a fixed life annuity offer protection against
Savings depletion due to longevity
Which of these situations would not potentially involve a prison sentence federal law?
Selling insurance with a nonresident license
Long term care policies sold in NH may NOT exclude coverage for
Senile dementia
Which of these policies is considered a whole life policy?
Single premium life
Which of the following does a Medicare advantage enrollee typically pay for?
Small co-pay per visit or per service
Which of the following would not have a restricted ability to enter into a contract?
Small employer
What is a life insurance producer authorized to do?
Solicit, receive and forward applications to the insurer
What type of risk involves the potential for loss and the possibility for gain?
Speculative risk
Which entity is responsible for regulating claims settlement practices of insurers?
State insurance departments
Who determines worker's compensation eligibility rules?
State of NH
Steve has a group disability income policy where the premiums are paid by his employer. He elected to pay for additional residual disability coverage. Which of the following statements is true?
Steve will pay taxes on the disability benefit received from his employer, but will receive any residual disability benefits tax-free
An insurable risk requires
That the chance of loss be calculable
Which factor determines the maximum disability income benefit that can be purchased by an applicant?
The applicant's income
Which statement regarding a fixed period settlement option is correct?
The installment payment amount is determined by the total number of installments
What is taken into consideration when defining "total disability" in a disability income insurance policy?
The insured's education, training, and experience
Which of these is a typical result of a concurrent review
The length of time spent in the hospital is monitored
An insurance company is marketing an accident and health policy in NH which contains a provision that is in conflict with NH insurance law. What is the required action needed to be taken by the insurer?
The provision must be amended to conform to the minimum statutory requirements
Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?
The specified benefit amount is a percentage of his wages
How is an insured's 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
Why were exchanges implemented by the affordable care act(ACA)?
To create a one-stop market for standardized health insurance plans
Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy
Until they become self-supportive
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?
When the contract has been held for the period specified in the policy
When would evidence of insurability be required for a person already covered with a variable universal life policy?
When the death benefit is increased
Which life insurance policy would be eligible to include to include an automatic premium loan provision?
Whole life
After an applicant reads and signs an insurance application, he/she should be conscious of the fact that
a false statement could lead to loss of coverage
bathing, eating and transferring are all types of
activities of daily living
The coordination of benefits provision is added to a group health plan in order to
avoid overinsurance
An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before
bringing legal action against the insurer
What is payable to the policy owner if a whole life policy is surrendered prior to its maturity date?
cash value
Reductions in coverage are one feature of ______ in health insurance policies
cost containment
Life settlement proceeds may be subject to the claims of
creditors
What type of doctor-ordered care assists an individual with performing basic daily activities such as bathing, dressing, and eating?
custodial care
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends
equal the net single premium for the same face amount at the insured's attained age
A business may purchase an annuity for all of the following reasons EXCEPT
informally funding a non-qualified deferred compensation plan
After an insurance application has been originated, the producer normally
is the major personal contact to the insured
The insurance coverage in a variable life insurance policy may vary based on the value of
its underlying investments
Respite care coverage is typically found in a(n)
long term care policy
Which of the following is excluded in a medical expense plan?
military duty
Periodic health claim payments must be made at least
monthly
Long term care policies normally cover expenses associated with
nursing homes
The authority to change the beneficiary in an individual annuity lies with the
owner
A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to
periodically purchase additional insurance
What typically changes at the re-entry option date found in some term life policies?
premium
A guaranteed renewable provision allows
premiums which can only be increased per rate class
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
producer
A Keogh plan is a(n)
qualified retirement plan for the self employed
During an annuity's liquidation phase, the annuitant normally
receives benefit payments at regular intervals
ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk
reduction
Which type of policy pays benefits to a policyholder covered under a hospital expense policy?
reimbursement
Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will
remain a constant dollar amount for the duration of the annuity period
A stock insurance company is owned by its
shareholders
Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be
somewhat less
In order to contribute to a Health Savings Account (HSA),
the applicant must be enrolled in a High Deductible Health Plan (HDHP)
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employment
Some standard Medicare Supplement policies include which benefit?
Hospice care
In NH, discontinued group long term care plans must provide the insured with continued individual coverage upon notice to the insurer within
30 days
A pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within ______ month(a) preceding the effective date of an individual long-term care policy.
6 months
What is the actuarial value of a bronze level health plan?
60
A producer has indicated to a potential client that the proposed life insurance policy is covered by the NH life and health insurance guaranty association. This action taken by the producer is
Prohibited by law
Kelly purchased a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for
Specific reasons stated in the contract