Life & Health

An insured bought a $150,000 non-participating whole life policy many years ago. He is 100 years old today. He has never borrowed from the policy's cash value and has faithfully made all the payments when due. The policy's cash value is

$150,000

"The seamless delivery of medical and indemnity for both occupational and non-occupational injuries and illnesses" is the definition of:

24-hour coverage (Correct Answer)

The social security blackout period ends when the surviving spouse reaches the age of

60

Which of the following statements defines partial disability ?

A disabled employee while he is working part-time and receiving lost income under their long-term disability benefit

What is the transplant donor benefit in a disability income policy ?

A provision that considers the insured to be disabled if donating a body organ.

Viatical settlements are accomplished through the use of

Absolute assignment (Correct Answer)

A measure of rating an individual's need for long term care benefits is called

Activities of daily living

Under social security, the definition of disability is the inability to engage in

Any substantial gainful activity

Each of the following terms is an important characteristic of a major medical policy,

Co-insurance Maximum amounts Deductible

A provision stating that health insured's and their insurers will share covered losses in an agreed proportion is called

Co-insurance (Correct Answer)

The insured's policy has deductible that is applied between the exhaustion of basic plan limits and the commencement of excess coverage. This is called a:

Corridor deductible

A worker dies while he is credited with six quarters of the last 13 quarter period. What status does the worker have under social security ?

Currently insured

Self-funding of employee benefit plans cannot be used for

Death benefits (Correct Answer)

The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy

Does not affect the policy's cash value (Correct Answer)

In order to obtain group insurance without providing evidence of insurability, what do eligible individuals generally have to do ?

Enroll within a specified eligibility period

Which non-forfeiture option uses cash surrender values to purchase paid-up term insurance for the full face amount of the policy ?

Extended term insurance (Correct Answer)

Benefits will be paid from a Worker's Compensation Subsequent Injury Fund only if both the first and second injury are the result of an on-the-job accident True False

False

Retirement benefits under social security are available only for workers who are

Fully insured

In California after January 1, 2002, the definition of health insurance includes all of the following types of coverages,

Group medical coverage Individual hospital coverage Individual surgical benefits

Medicare Part A provides coverage for all of the following,

Home health care Hospice Hospitalization

Which of the following expenses is never covered by a LTC insurance policy ?

Hospital acute care unit

If an insurer is not able to meet financial obligations when due, the insurer would be considered

Insolvent The insured, aged 65, owns a $100,000 non-participating whole life policy. The policy is paid-up as of today. When would the cash value reach $100,000? *Age 100

Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks ?

Insolvent (Correct Answer)

Any long-term care policy sold in California must provide for certain benefits. Select the most correct answer describing these benefits from the choices below.

Institutional care and home care

Which statement is true regarding Medicare Supplement Insurance plans ?

Insurers may offer policies that contain only the core benefits

Which of the following is allowed by code in connection with the sale of Medicare supplement policies ?

Offer only core benefits (Your Answer) Offer core plans as a stand-alone or offer core plans along with broader plans

In the Medicare system, the services provided by doctors and surgeons are covered by:

Part B there is a charge for coverage

A group health plan third party administrator might do any of the following

Pay policy owner premiums

The Employee Retirement Income Security Act of 1974 (ERISA) mandates requiring plan sponsor to provide participants with

Plan descriptions and benefit statements

A disability income policy social insurance supplement (SIS) benefit rider:

Provides a payment only when the insured is totally disabled, but not receiving any social insurance benefit plans (Correct Answer)

A return premium rider is a rider that

Provides for the periodic return of a percentage of the premiums that have been paid if the insured becomes and remains disabled

RW and Associates is an agency which represents BLG Insurance Corporation. RW and Associates may leave the name BLG Insurance Corporation in its advertisements by clearly stating the relationship between the two businesses in any of the following ways, except:

RW and Associates underwriting for BLG Insurance Corporation

Which non-forfeiture option uses an existing policy's cash value to purchase a paid-up policy with a lower face than the original policy?

Reduced paid-up insurance option

Which type of insurance guarantees the right to renew the policy each year, regardless of health but at an increased premium

Renewable term

Unintentional concealment entitles the injured party to which course of action ?

Rescission of the contract (Correct Answer)

A form of rest or relief offered to family members who are caring for a person who requires continual care is

Respite care

There is a type of benefit that pays for the cost of relief given to the caregiver of a person who requires constant care and supervision. What is this type of care called ?

Respite care

Wellness benefits under a Health Maintenance Organization (HMO) typically include all of the following

Routine physicals Immunizations Vision checks

The adjustments that an insurer makes in a cash value account in a universal life policy each time a payment is made includes all of the following,

Subtract from mortality and general expense charges Add the current interest Add the current premium paid

Which of the following coverages is NOT one of the three traditional benefits of a group basic medical expense plan ?

Surgical expense Physicians visit expense (Your Answer) Hospital expense

A disability policy, described as "guaranteed renewable" is one where the insurance company

Surrenders the right to change the premiums (Your Answer)

Which retirement plan was designed for employees of public school systems ?

TSA

When a licensed agent submits a renewal applications with applicable fee on or before the expiration date

The agent will be able to operate for up to 60 days after the specified expiration date

In order to determine the amount of premium an insured will pay, the insurer multiplies the rate by:

The number of exposure units (Correct Answer)

What is the difference between a defined contribution plan and a defined benefit plan ?

The penalties for early distribution (Correct Answer)

Which of the following is a true statement regarding the social security (OASDHI) program ?

The program provides only a minimum floor of income. Individuals are expected to supplement this with their own personal programs.

What is the purpose of "key person" insurance ?

To cover decreased business earnings due to the death of a key employee (Correct Answer)

In order to receive the principal sum benefit for death from a disability policy, the death must occur

Within a specified number of days after injury

Medicare Part B provides

doctors and physicians services

Under COBRA, a qualifying event ensures that an employee who loses coverage can

elect to continue coverage (Correct Answer)

Common life insurance policy riders include all of the following, except:

guaranteed insurability (Your Answer) Accidental death Waiver of premium

Medicare part A provides

hospital care

Medicare It is part of

the Social Security program

Which of the following statements about LTC is correct:

the very poor and the very rich probably do not need LTC coverage (Correct Answer)

Concerning Part B of Medicare

there is an annual deductible and co-payment An individual must sign a form rejecting Part B or they will be enrolled in it It provides some coverage and benefits for most medical expenses not covered by Part A