Exam FX Oregon Life/Health insurance
What percentage of individually-owned disability income benefits is taxable?
0%
HIPAA applies to groups of
2 or more
in an annuity, the accumulated money is converted into a stream of income during which time period?
Annuitization period
Which of the following groups seeking health insurance would represent a bad risk for underwriters?
A group that changes insurance annually
What company produces evaluations of insurer financial status often used by the Insurance Department?
AM Best
In which Medicare supplemental policies are the core benefits found?
All plans
Which of the following is NOT true regarding Workers Compensation?
Benefit are offered by the insurer
Which of the following is not true of Disability Buy-Sell coverage?
Benefits are considered taxable income to the business
Which of the following options best depicts how the eligibility of members for group health insurance is determined?
By conditions of employment
Which of the following includes information regarding a person's credit, character, reputation, and habits?
Consumer Report
Which of the following terms describes a specific dollar amount of the cost of care that must be paid by the member?
Copayment
An annuity owner is funding an annuity that will supplement her retirement. Because she doesnt know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity Indexed Annuity
Guarantee of insurability option in long-term care policies allows the insured to
Increase the benefit levels without providing proof of insurability
Which of the following is true regarding a risk retention group?
It is liability insurance company owned by its members
If an agent fails to obtain an applicant's signature on the application, the agent must
Return the application to the applicant for a signature
which of the following are generally NOT considered when underwriting group insurance?
The insured's medical history
under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
Where would the underwriter fin relevant information not presented by the applicant but communicated by the producer?
application
which policy component decrease in decreasing term insurance?
face amount
Who guarantees a conventional fully-insured group plan?
the insurer
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under the policy?
10 days
An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administer to another and what is the fax consequence of a direct transfer?
$10,000 no tax consequence
In order to collect Social Security disability benefits, the claimant must be able to demonstrate the the disability will last at least
12 monthes
In reference to the standard Medicare Supplement benefits plan, what does the term "standard" mean?
All providers will have the same coverage options and conditions for each plan
Your client plans to retire at age 50. he would like to purchase an annuity that would provide income from the time he retires to the age when social security and other pension funds become available. What settlement option should he consider?
Annuity certain
Under Key Person disability income policy, premium payments
Are made by the business and are not tax-deductible
Medicare Advantage is also known as
Medicare Part C
What type of policy contains a coverage that is only activated upon the insured's losses reaching a certain level?
Partially-funded plan
Which of the following describes the tax advantage of a qualified retirement plan?
The earnings in the plan accumulate tax deferred
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
Nothing; the payments will cease
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
Which of the following statements is INCORRECT concerning Medicare Part B Coverage?
Part B coverage is provided free of charge when an individual turns age 65
Which of the following factors would be an underwriting consideration for a small employer carrier?
Percentage of participation
An insured is the recipient of an Accidental Death and Dismemberment (AD&D) policy purchased by his employer. The policy pays triple indemnity in case of accidental death. If the insured died as a result of an accident stipulated in the policy, how will the benefits paid be taxed?
Benefits received are considered income tax free
Which policy component decreases in decreasing term insurance?
Face amount
All of the following are ways in which a Major Medical policy premium is determined EXCEPT
The average age of the group
If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?
The balance of the loan will be taken out of the death benefit
In a group life insurance policy, the employer may select all of the following EXCEPT
The benficiary
When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and deductibles?
They carry over from the old plan to the new plan
Regarding Medicare SELECT policies, what are restricted network provisions?
They condition the payment of benefits
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's Cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal Life
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
After a divorce, when can a spouse of a certificate holder qualify for continuance of coverage under a group health policy that provides coverage for medical expenses?
When the spouse is 55 years of age or older
Which of the following best describes the difference between Pure Life and Life with Guaranteed Minimum settlement options?
life with guaranteed minimum will pay the remaining principal to the beneficiary
When a group health insurance plan is terminated, how long is an extension of benefits provided for any totally disabled employee or dependent?
12 monthes
Within what time period can a producer reinstate a lapsed license without having to pass a written examination?
12 monthes
An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristics of an insurance contract does this describe?
Aleatory
Your client plans to retire at age 50. He would like to purchase an annuity that would provide income from the time he retires to the age when social security and other pension funds become available. What settlement option should he consider?
Annuity certain
Where would the underwriter find relevant information not presented by the applicant but communicated by the producer?
Application
Which of the following statements about reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint life
In franchise insurance, premiums are usually
Lower the individual policies, but higher then group policies
which of the following programs expands individual public assistance programs for people with insufficient income and resources?
Medicaid
What type of benefit helps to pay for accidental injuries that are not severe enough to qualify as disabilities?
Medical Reimbursement Benefit
An Oregon insurer is using advertisements that include applications. Which of the following must be included in the advertisement?
Policy summary
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a
Premium receipt
A long-term care shopper's guide must be presented at what point?
Prior to the time of application
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Proof of insurability is not required
Under the ACA, health insurance can no longer be underwritten based on which of the following factors?
The applicant's health condition
How do employer contributions to a Health Savings Account affect the insured's taxes?
The employer contributions are not included in the individual insured's taxable income
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits
all of the following statements about Medicare supplement insurance policies are correct EXCEPT
they cover the cost of extended nursing home care
