State Exam (cont.)
Ben has a major medical expense policy with a $200 deductible and an 80/20 coinsurance provision has covered medical expenses of $100 in November and 400 in January under the carryover provision what will the insurer pay
$240 ($300x80%)
A premature distribution from a modified endowment contract incurs a penalty tax of
10%
Under HIPAA, Medical plan late enrollees may be excluded for pre-existing conditions for a maximum of
18 months
And insured must notify an insurer of a medical claim within how many days after an acciden
20
An individual participant personally received eligible rollover funds from profit sharing plan. What is the income tax withholding requirements for this transaction
20% is withheld
What is the excise tax rate the IRS imposes on individuals aged 70 and 1/2 or older who do not take the required minimum distribution from their qualified retirement plan
50%
What is functional assessment for long-term care benefits
A review of the insured's ability to perform the activities of daily living
A major medical expense policy typically does not
A surgeon fees on a first dollar basis
The use of XYZ insurance company brochures business cards and reading guides is an example of
Apparent Authority
Which is payable to the policy owner of a whole life insurance policy is surrendered prior to its maturity date
Cash value
All of these are considered to be a violation of the federal fraud and false statements act except
Claims reimbursement
An accident and health insurance policy's premium requirements are set forth in which of the following provisions
Consideration clause
Health maintenance organizations Wellness programs may include each of the following except
Diagnostic testing services
An insurer is required to offer and patient protection to each long-term care applicant at the time of purchase. This inflation protection
Does not require evidence of insurability
A dependent may be removed from group sickness and accident coverage in each of the following situations except
Employee enroll in Medicare
Which of these statements reflects an accurate portrayal of Medicare select
Ensure to use his preferred providers in exchange for paying lower premiums
Federally qualified hmos must offer
Family Planning services
Which settlement option makes minimum guaranteed dollar payments over a stated number of years
Fixed period
John has a criminal record in which he was convicted of a felony that involves dishonesty. Under federal law how would John be able to engage in Insurance transactions
Giving written consent by the state insurance regulatory agency
A large corporation Pension Plan purchased an accumulation annuity contract where all of the approaches of putting employees received certificates of participation what is his contract called
Group deferred annuity
after an insurance application has been originated the producer normally
Is a major personal contact to the insured
The death proceeds of a credit life insurance policies are typically paid to the
Lender
During the early years of a whole life insurance policy the cash value will normally be
Less than total premiums paid
What type of premiums are associated with individual mortgage protection life insurance policies
Level premiums
Which of the following health insurance plans charges at premium that cannot be increased
Non-cancelable
A ___________ lives in another state and transact Insurance in Nebraska
Non-resident
Which type of deductible must be satisfied again for each illness or accident in a major medical plan
Per cause
Which of the following is a true statement regarding Medicare supplement policy purchased during an open enrollment.
Policy will be issued regardless of Health
A guaranteed-renewable provision allows
Premiums which can only be increased per rate class
Which of these factors does not affect life insurance premium rates
Producer Certification
A handicapped child is covered under an individual sickness and health policy. If continuation of coverage is needed beyond the policies age limit which following is required
Proof of incapacity and dependency upon reaching the age limit
A group accident and health insurance may be offered by an insurer when the sponsoring group
Provides an employee to employer relationship
Which statement regarding the life insurance premium for a children's Rider is true
Remains the same no matter how many children
Third party Administration has become fairly common and accident health insurance due to the growth of
Self funding benefits
Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be
Somewhat less
Which entity is responsible for regulating Claims Settlement practices of insurers
State Insurance departments
If an employer pays for accidental death and dismemberment insurance for its employees the amount paid by the employer is generally
Tax deductible to the business
What is taken into consideration when defining total disability in a disability income insurance policy
The insured's education training and experience
A material change in a modified endowment contract results in
The seven pay test adjustable for cash value applies again
Which of these is not a reason to buy term life policy
To accumulate savings
an insurance policy that can also be classified as Securities product is called
Variable life
Policyowners must be provided with privacy notice every
Year
Which of the following would most likely purchase an immediate annuity
a retiree having a lump sum to invest
When group benefits under cobra have expired you fully insured Group Policy can be converted to
an individual health policy
Medicare supplement insurance requires an individual to be at least how many years old for open enrollment
apparently it's no minimum age
Which of the following is not an allowable exclusion for long-term care insurance policies
care for incurable conditions
Annuities accumulation period may
continue after the purchase payments stop
Jerry has an Indemnity plan which covers dental expenses. Typically these type of plans
cover preventative care once every 6 months
Which of the following disability buy-sell agreements is best suited for businesses with limited number of Partners
cross purchase agreement
Which of the following health insurance Provisions requires that the application becomes part of the policy
entire contract clause
Long-term care policies will usually pay for eligible benefits using which of the following methods
expense incurred
A producers license may only be suspended or revoked at the producer
has been afforded the right to a hearing
For insurance purposes, similar objects which are exposed to the same group of perils are referred to as
homogeneous exposure units
The ___________ is considered to be the Principal under the law of agency
insurer
When compared to a fixed annuity, a variable annuity has what distinguishing feature
investment risk is assumed by the purchaser
What is another term used for Pure Life annuity
life income
All of these statements correctly describe an aleatory contract except
only one party makes any kind of legal enforceable offer
Ron recently purchased an immediate Street Life fixed annuity. His benefit payments will
remain a consistent dollar amount for the duration of the annuity period
Sylvia purchased an annuity of $100,000 from the proceeds of an inheritance. No further payments were permitted and the income stream begins in fifteen years. This contract is a
single premium deferred annuity
When does interest income for a flexible premium deferred annuity get reported for federal income taxes
upon receiving distributions from the contract
Which type of life insurance policy allows the policyowner the choice of Investments along with flexible premium payments
variable universal life
Someone who is licensed to negotiate a viatical settlement contract is called
viatical settlement broker
