set 3

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Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?

100% of his health insurance costs can be deducted from his gross income

An insurer must send a notice of appointment for a producer within __ days from the date of an executed agency contract or after submitting the first application to the insurer.

15 days

A temporary license is valid for a maximum of __ days

180

A temporary license is valid for a maximum of __ days. - 30 - 60 - 90 - 180

180

A health or disability policy is incontestable after it has been in force for a period of

2 years

Notice of a claim must be given within how many days after a covered loss?

20 days

How many total hours of continuing education must insurance producers complete biannually?

24

Lapsed individual life insurance may be reinstated at any time within

3 years

Lapsed individual life insurance may be reinstated at any time within - 2 years - 3 years - 4 years - 5 years

3 years

In a Long-Term Care policy, the Right-to-Examine period is

30 days

The required grace period for life insurance policies in Washington is

30 days

Group life insurance policies must include a provision entitling policyholders to a grace period of

31 days

Group life insurance policies must include a provision entitling policyholders to grace period of - 10 days - 31 days - 90 days - 1 year

31 days

The Commissioner is REQUIRED to examine admitted insurers AT LEAST every

5 years

How long may an insurer exclude coverage for a preexisting condition on a Medicare Supplement policy?

6 months

No legal action can be initiated within ___ after proof of loss has been submitted to the insurance company

60 days

A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of the individual's adjusted gross income.

7.5%

As classified by the Affordable Care Act (ACA), a Silver Plan offers

70% actuarial level of coverage provided

A person cannot sell long-term care insurance unless that person is licensed as an insurance producer and has successfully completed a one-time education course of

8 hours

An agent who sells an individual life insurance policy in MUST deliver to the policyowner

A Policy Summary and Buyer's Guide

Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?

A good health statement

Replacing an existing life insurance policy with a new one may result in - Capital gains taxation - Small business taxation - An illegal transaction - A surrender charge

A surrender charge

And underwriters primary responsibility to an insurer is to protect against

Adverse selection

Which of these procedures do insurers have the right to perform where it is not forbidden by law?

Autopsy

XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence?

Benefits are fully taxable

What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy?

Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age

Which of the following is a requirement for any change in an insurance application

Change must be initialed by the applicant

Which of the following basics is a producer's fiduciary responsibility?

Collecting premiums and paying them to the insurance company

Field underwriting performed by the producers involves

Completing the application and collecting initial premium

Which of the following coverages is a mandatory provision of Medicare Supplement policies?

Coverage for pre-existing conditions after six months from the effective date of coverage

An individual's waiting period for pre-existing conditions is reduced when he or she has

Creditable coverage

All of these are typically sources of underwriting information for life or health insurance except

Disclosure authorization response

One of the most important considerations when replacing health insurance would be the

Exclusions on a new policy

A Fraternal Benefit Society has each of the following characteristics EXCEPT

Exists For profit

When determining whether an annuity is suitable for a client, the producer should ask about which of the following?

Financial objectives

Violations of US Code Title 18 section 1033, may result in

Fine and/or imprisonment

XYZ Life Insurance company's home office located in Ohio and is incorporated in Ohio. In Washington, they are considered to be - Assessment Mutual Company - Non-Admitted - Foreign - Domestic

Foreign

Which of the following signature is not required on an individual insurance application

Insurer

An example of primary care physician would be a

Internist

An applicant's character and personal habits can be obtained for underwriting purposes from which source?

Investigative consumer report

Which of the following is CORRECT regarding disclosure regulation?

It requires the delivery of a buyer's guide and a disclosure document to applicants

Which of the following is considered to be a point of service plan

Managed care plan

Which of these is likely to occur when life or health insurance is being applied for

Medical history from the insured may be reviewed and reported

A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is committing which of the following violations?

Misrepresentation

When replacing a life insurance policy, a producer must provide the applicant with a

Notice Regarding Replacement

Which of these characteristics of an applicant is not taking into consideration when assessing risk for disability coverage

Number of children

The difference between pre certification and concurred review is that pre certification

Occurs before the treatment is provided

Which one of the following is a domestic insurer?

One formed under the laws of Washington

A person who is a nonsmoker of average weight an in excellent health would most likely be in which risk classification

Preferred

And insurance applicant with a below average likelihood is typically considered to be

Preferred risk

A life insurance agent is required to give a disclosure notice about information practices to an applicant or proposed insured

Prior to or at the time of signing the application

The PRIMARY purpose of the Fair Credit Reporting Act is to - Forewarn an insurer about an applicant's recent bankruptcy - Protect consumers from insurers who have filed for bankruptcy - Protect consumers with guidelines regarding credit reporting and distribution - Alert insurers regarding applicants who may have poor credit histories and may be adverse risk to the company

Protect consumers with guidelines regarding credit reporting and distribution

Any inducement offered to the insured in the sale of insurance products that is not specified in the policy is called

Rebating

Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. This is an example of - Bartering - Rebating - Reduction - Twisting

Rebating

A producer's fiduciary responsibility includes which of the following activities?

Recording the receipt and distribution of premiums due to an insurer

A producer's fiduciary responsibility includes which of the following activities? - Recording the receipt and distribution of premiums due to an insurer - Properly remunerating persons who furnish leads on prospects - Providing needed insurance to prospective insureds through any sources that are available - Guaranteeing payment to insureds for losses covered by policies that the producer sold

Recording the receipt and distribution of premiums due to an insurer

Any transaction in which new life insurance is purchased and, as a result, the existing life insurance will be surrendered is called

Replacement

All of the following facts would affect a health insurance policy's premiums rate except

Residential address of of the insured

The insurer has the right to examine the insured during the claim process and to an autopsy when death is involved and where it is not forbidden by ____

State law

A producer found to have engaged in an unfair method of competition may be - Charged 30% of the claim as punitive damages - Barred from seeking an appeal - Imprisoned for a max of 90 days - Subject to license suspension or revocation

Subject to license suspension or revocation

Which of the following describes a person who is not acceptable by an insurer at standard rates because of health history, occupations, or hobbies?

Substandard risk

A ______ license may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer's business

Temporary

Which federal government agency enforces the security laws enacted by Congress?

The Securities Exchange Commission

Which of the following statements is correct regarding an individual applying for life or health insurance

The applicant's medical history may be analyzed and reported

Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?

The contract is not in force without the initial premium being paid

Which of the following statements most aptly describes health insurance benefits

The greater the benefits, the higher the premium

Which of the following would be a valid reason why a policy premium would be higher than the standard premium

The insured does not meet established underwriting requirements

What is a certificate of authority?

The license required for an insurer to conduct business in the state

Backdating an insurance policy occurs when

The policy's effective date is earlier than the present

No existing producer's license will be revoked until

The producer has been afforded a right to a hearing on the charges

Which of the following is the purpose of medical cost management

To control health claim expenses

Replacing an insurance policy from one insurer to another based on misrepresentation is called - Unfair discrimination - Misrepresentation - Twisting - Rebating

Twisting

The renewal period for a producer's license is a - One-year term - Two-year term - Three-year term - Four-year term

Two-year term

An insurance company that has been denied or not yet applied for a Certificate of Authority is called

Unauthorized

Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued of declined

Underwriter

What guarantees that the statement supplied by an insurance applicant is true

Warranty

When does a health insurance policy because affective

When initial premium is collected and policy is issued

All of the following statements regarding the reinstatement of a life insurance policy are correct EXCEPT

a policy may be reinstated without proof of insurability

The Commissioner of Insurance along with the Department of Insurance are responsible for

administering Washington's insurance laws

A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be

all of the members of the union

A change in an insurance application requires

an initial made by the applicant

Before a licensed producer is eligible to transact insurance sales, they must be

appointed by an insurance company

Funding for the Washington Life and Disability Guaranty Association is derived from

assessments on member companies

Newborn coverage for an accident and health (disability) family policy begins

at the moment of birth

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has

better than average mortality or morbidity experience

In which of the following processes will the insurer oversee the insureds hospital stay to confirm everything is going according to schedule and that the insured will be released as planned

concurrent review

Making a statement that is false or maliciously critical of the financial condition of an insurer is known as

defamation

According to the Fair Credit Reporting Act, an insurer does NOT need to

discuss any credit history inconsistencies with the applicant

A Medicare Supplement policy must NOT contain benefits which

duplicate Medicare benefits

The Commissioner of Insurance is empowered to

enforce state laws relating to insurance

Premium mode is a term used to describe the

frequency of the premium payment

Underwriters can acquire information from all of the following sources except

genetic testing

All of the following are primary risk factors in underwriting individual health insurance policies except

geographical location

Long-term care insurance

is designed to provide coverage for at least 12 consecutive months

Which of the following would probably not be considered in underwriting a health insurance risk

marital status

Tara the producer is delivering a specified disease insurance policy to a new policyowner. Upon delivery, she may be expected to collect all of the following EXCEPT a(n)

modified application with a new signature

A policy illustration given at time of sale does NOT typically include the

names of the beneficiary

A producer who is licensed in Washington but a resident in another state is called a

nonresident producer

How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes?

not tax deductible

Annuity suitability information specifically includes all of the following EXCEPT

number of dependents


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