Numbers and only numbers

A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of

--10%

Premature IRA distributions are subject to a penalty tax of

--10%

Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility?

--100 days

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)

COBRA extends coverage for a surviving spouse but at a rate not more than _____ of the group premium.

--102%

Individuals seeking Social Security disability income benefits must have a disability that will eventually lead to death, or be expected to last at least

--12 months

Under HIPAA, medical plan late enrollees may be excluded for pre-existing conditions for a maximum of

--18 months

How many employees must an employer have for the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to apply?

--20 or more

Nonqualified medical expense distributions from a Health Savings Account (HSA) have a tax penalty of

--20%

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

--20% is withheld for income taxes

Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy?

--31 days

Social Security disability income requirements state that in order to become fully insured on a permanent basis, you must have worked in a covered occupation for

--40 quarters

What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?

--50%

The time limit an individual has to "rollover" funds from an IRA or qualified plan is

--60 days

At what age do most people become eligible for Medicare?

--65

According to ERISA regulations, a Summary Plan Description must be provided to a new plan member within ___ days of the member's eligibility date.

--90

ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date?

--90 days

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

Which of the following is generally a form of group credit life insurance?

--Decreasing term insurance

Which of the following statements BEST describes employer contributions for employer provided health insurance?

--Employer contributions are deductible

Which statement concerning a decreasing term life policy is accurate?

--Face amount decreases over the policy period

What is the name of the rider that provides an additional purchase option in a life insurance policy?

--Guaranteed insurability rider

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

A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the funds were rolled over?

--Income taxes plus a 10% penalty tax on $30,000

Which statement is INCORRECT about the interest-only settlement option in a life insurance policy?

--Interest on proceeds must be paid by the beneficiary

Which life insurance settlement option pays lifetime benefits to two or more people?

--Joint and survivor

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

Which of these pays an income to two or more annuitants until the death of the last annuitant?

--Joint and survivor annuity

What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured?

--Joint life

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

Bert's spouse passed away recently. Bert was covered under his spouse's group family health insurance plan but now is covered under COBRA. How much of the active-employee cost may be passed on to Bert for continued coverage?

--Maximum of 102%

The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is

--Preferred Provider Organization (PPO)

What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?

--The cash value

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

--The participating employee

Which of the following best describes the purpose of HIPAA?

--To reduce a pre-existing condition waiting period when coverage is sought for a new medical plan

A life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death?

--Total premiums paid plus the policy face amount

Which event triggers a deferred annuity to start making benefit payments to the annuitant?

--When the contract is annuitized

Interest is credited to a fixed annuity no lower than the

--contract guaranteed rate

Notice of information practices must be given to a policyholder at least

--every three years

Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate

--for federal income tax reasons

When premiums are determined, one factor would be the expenses of the

--insurer

A signed good health statement may be requested by a life producer at the time of

--policy delivery

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

The interest credited to the cash values of personally-owned non-qualified annuities is considered

--tax-deferred

The exclusion ratio determines

--the amount of an annuity payment subject to income tax

Under HIPAA requirements, eligibility for the pre-existing conditions exclusion waiver under new coverage is lost if

--there is a break in coverage of more than 63 days

The conversion option for group term insurance may be exercised by an employee

--within 31 days of terminated employment

What is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a SIMPLE retirement plan?

-100