life and health insurance
what is elimination period for ss disability benefits
5 months
how long is open enrollment for medicare supplement policies
6 months
under which condition would an employees group medical benefits be exepmy from income taxes
an employees group medical benefits be exempt from income taxes
which of the following premium payment modes will incur the lowest overall payment
annual
during the annuity period do the payments grow interest tax deferred
yes
is a term health policy nonrenewable
yes
mr. e wants to become an insurance advisor. his hiring manager informs him that he must post a single security bond to quality. how much money must mr. e post?
$1,000
the min # of credits required for partially insured status for SS disability benefits is
10 credits
a policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. this nontaxable transaction is called
1035 exchange
to be eligible under HIPPA for how long should an individual converting to an individual health plan have been covered under the previous group plan
18 months
employer health plans must provide primary coverage for individuals with end-stage renal disease before medicare becomes primary for how many months
30 months
what is the number of credits required for fully insured status for SS disability beenfits
40 credits
the term "illustration" in a life insurance policy refers to
a presentation of nonguaranteed elements of a policy
concerning insurance, the definition of a fiduciary is
a producer who handles the insurer funds in a trust capacity
if the insured under a disability income policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do what??
adjust the benefit in accordance with the increased risk
at age 30, an applicant wants to start an insurance program, but is realizing that his insurance will likely change, he wants a policy that can be modified to accommodate those changes as they occur. which of the following policies would most likely fit his needs?
adjustable life
according to the law od agency, a principal is represented by an
agent
what documentation grant express authority to an agent
agent's contract with the principal
LTC care insurance policies must cover?
alzheimers
when an annuity is written whose life expectancy is taken into account
annuitant
what is the max period of time during which an insurer may contest fraudulent misstatements made in a health insurance application
as long as the policy is in force
a policyowner fials to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. this is due to what provision
automatic premium loan
if an annuitant dies during the accumulation period, who will receive the benefits
beneficiary
all of the following are true regarding key employee disability income insurance except
benefits are taxable to the employer
which of the following is NOT required to be appointed by an insurer
broker
under which nonforfeiture option does the company pay the sureender value and have no further obligations to the policyowner?
cash surrender
under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner
cash surrender
an insurance contract requires that both the insured and insurer meet certain conditions in order for the contract to be enforceable. what contract characteristic does this descirbe
conditional
what is the contract provision that allows the insurer to nonrenew health coverage if certain events happen
conditionally renewable
in reference to fixed annuities, what compromises most of a life insurance company's general account?
conservative investments like bonds
when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
consideration
according to future increase option rider (FIO), what is not a qualifying event to increase an insureds benefit level
death of spouse
when a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount
equal to the original policy for as long as a period of time that the cash values will purchase
what is the difference between the medicare approved amount for a service or supply and the actual charge
excess charge
what does level refer to in level term insurance
face amount
if a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
guaranteed insurability rider
a man purchased a $90,000 annuity with single premium, and began receiving payments 2 months after that. What type of annuity is it
immediate
your clients employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain
individual
an insured has a life insurance policy with a face amount of $500. he pays a premium each week to the agent who sold him the policy. what kind of policy does the insured have
industrial life
concerning medicare part b, which statement is incorrect
it is fully funded by social security taxes (FICA)
which of the following is NOT true regarding a COA
it is issued to group insurance participants
which of the following is true regarding a term health policy
it is nonrenewable
a prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. the agent most likely explained which of the following?
nonforfeiture option guarantees that the owner will receive a surrender value of the contract
after a brief emergency room visit, an insured discovered that his plan required a larger copayment for an out of network provider than for a local, in-network provider. Under PPACA provisions, this is
not permitted
regarding taxation of business overhead
premiums are deductible and benefits are taxed
all of the following are true regarding key person disability income insurance except
premiums are tax deductible as a business expense
all of the following are true regarding key person disability income insurance except
premiums are tax deductible as business expense
insurers may change which of the following on a guaranteed renewable health policy
rates by class
which of thee following insurance options would be considered a risk-sharing arrangement surplus lines reciprocal stock mutual
reciprocal
if an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a __-
settlement option
when a group disability insurance policy is paid entirely by the employer, benefits paid to disabled employees are
taxable income to the employee
during the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?
taxable interest will be withdrawn first and 10% penalty will be imposed if under age 59 1/2
which of the following means having an illness or sickness that can be reasonably be expected to result in death in 24 months or less
terminal illness
which of the following is an example of apparent authority of an agent appointed by an insurer
the agent accepts a premium payment after the end of the grace period
which of the following statements about group life is correct
the cost of coverage is based on the ratio of men and women in the group
what type of information is not included in a certificate of insurance
the cost the company is paying for monthly premiums
an adjustable life policyowner can change which of the following policy features
the coverage period
in comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports
the customers associates, friends, and neighbors provide the report's data
the market value adjustment in modified guaranteed annuities refers to which of the following?
the difference between the contracted interest rate and the rate at surrender
what is necessary in order to be eligible to receive benefits from a long-term care policy?
the insured must be unable to perform some activities of daily living
which of the following is NOT covered under plan A in medigap insurance
the medicare part a deductible
the waiver of cost of insurance rider is found in what type of insurance
universal life
what policy would have an IRS required corridor or gap between the cash value and the death benefit
universal life - option A
under the physical exam and autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
unlimited
if a policy includes a free-look period of at least 10 days, the buyers guide must be delivered to the applicant
with the policy
which of the following statements regarding the taxation of MEC is false
withdrawals are not taxable
if a licensee intentionally violates the insurance code, what is the maximum monetary penalty that he or she would be required to pay
$100,000
an insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. the LTC only charged a $100 per day. how much will the insurance company pay
$120 pay specific fixed dollar amount, regardless of cost of care
an agent selling variable annuities must be registered with
FINRA
which of the following is NOT an insurance plan an insurer can issue
PPO
medicare part d provides
RX
according to the entire contract provision, a policy must contain
a copy of the original application for insurance
all of the following are requirements of eligibility for Social Security disability income benefits except
being age 65
the purpose of managed care health insurance plans is to
control health care claims expenses
all health policies issued in this state must provide all of the following benefits related to adopted children except
coverage for adopte children may be excluded at the discretion of the insurer
what type of insurance covers the whole family in a single contract
family income policy
what is the advantage of having a qualified annuity
favorable tax treatment
the subject of a fraud is valued at $500. the person who committed the fraud is guilty of a
felony
all of the following are business uses of life insurance except
funding against general company financial loss
under which disability income plans would the benefits be subject to income tax
group
which of the following refers to "own occupation" disability
insured is unable to perform duties for which he/she was educated and train to do
policy will pay the death benefit if the insured dies during the 20-year premium paying period, and nothing if death occurs after the 20-year period. what type of policy is this
level term
medicare advantage is also known as
medicare part c
what type of whole life insurance policy has premiums that are adjusted so that during the first years of the policy, the premiums are lower than those of a straight whole life policy, and in subsequent years the premiums are higher than those of a straight whole life policy
modified life
can a benefit be up to 50% of a group long term disability plan?
no
do general disability policies cover overseas accidents
no
an insured is involved in car accident. he permanently lost leg and rendered completely blind. his vision improves a month later. what extent will he receive presumptive disability
no benefits
it is an unfair claim settlement practice and a violation of the insurance code for an insurer or nonprofit HSP to do the following except
pay a lower, adjusted, claim due to the accidental misrepresentation of the proposed insured's DOB by the agent
which renewability provision are you most likely to see on a travel accident policy
period of time
an applicant wants to buy a policy that has a cash value element . which type should she buy
permanent
all of the following are true regarding insurance policy loans except
policy loans can be made on policies that do not accumulate cash value
based on human life value approach, which of the following is NOT used to calculate an individuals life value?
predicted needs of the family after the insured's death
when the insured initiates the cancellation of a policy, the unearned premium will be refunded on a
short rate basis
All of the following may participate in SHOP marketplace in MD except
small business in adjacent states
who might receive dividends from a mutual insurer
stockholders
who is responsible for making premium payments in HMO plan
subscriber
which of the following best describes what the annuity is
the period of time during which accumulated money is converted into income payments
which of the following statements is most correct concerning the changing of an irrevocable bene
they can be changed only with the written consent of that beneficiary
what is true regaring medicare supplement policies
they must be guaranteed renewable
j transferred his life insurance policy to his son two years before his death. which is true 1) bc policy has been transferred, it will not be included in J's taxable estate 2) entire face value of policy will be included in J's taxable estate 3) interest portion will be included in j';s taxable estate
2
insured involved in accident, couldn't perform current job for 3 years. if insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?
2 years
in replacement, an existing insurer must provide policyowners with a policyowners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement
20
the free-look provision allows for which of the following
a right to return the policy for a full premium refund
your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. WHat would be the right policy for this client?
limited pay whole life
a health insurance plan which involves financing, managing, and delivery of HCS and involves a group of providers who share in the financial risk of the plan r who have an incentive to deliver cost effective service, is called
managed care plan
all of the following statements concerning the use of life insurance as an executive bonus are correct except
the policy is owned by the company
what is the shortes possible elimination period for group short-term disability beenfits provided by an employer
0 days
a disability income policy is writeen with a 10 month benefit period, a 30 day elim period, 30 day prob period. if insured become disabled due to illness 9 days after effective date, policy will pay benefits for a max of
10 months
in a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective
100%
an individual is inusred under his employers group disability income policy. the insured suffered an accident while on vacation that left him unable to work for 4 months. if the disability income policy pays the benefit, which of the following would be true?
beenfits that are attributable to employer contributions are fully taxable to the employee as income
all of the following are requirement's for life insurance illustrations except
they must be part of the contract
which type of misrepresentation persuade an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another
twisting
paula applied for medicare supplement policy 1 month before her 65th bday. the policy was issued on her bday, jan 31 1998. her producer mailed the policy by certified mail, and paula received the policy on feb 5 1998. how long does paula have to examine the policy and decide whether or not to keep it why
20 days exisiting insurers must provide policyowners with a policy summary for the exisiting life insurance within 20 days of receiving the written communication and replacement
what is the max age for qualifying for a CAT plan
30
to attain currently insured status under ss a worker must have earned at least how many credits during the last 13 Q
6 credits
which of the following statements regarding annuities is correct
annuities provide income that the annuitant cannot outlive
partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
any form of life insurance
which of the following methods of calculating the amount of life insurance needed takes into account the insureds wages, years until requirement, and inflation?
human life value approach
a health insurance policy lapses but is reinstated within an acceptable timeframe. how soon from the reinstatement date will coverage for accidents become effective?
immediately
your clients employer does not offer a company wide annuity contract. what type of annuity contract could your client obtain
individual
an insurer invests the money it receives from premiums paid by its insureds. which of the following is true regarding the interst earned on these investments
it is used to lower premiums
an insured has AD&D with principal of $50,000. he loses eyesight in both eyes in a hunting accident. how much will her receive and why
$50,000 because will pay principal for loss of both eyes or two or more limbs
in order to collect ss disability beenfits, the claimant must be able to demonstrate that the disability will last at least
12 months
a man decided to purchase a $100,000 annually renewable term life policy to provide additional protection until his children finished college. he discovered that his policy
required a premium increase each renewal
a deferred annuity is surrendered prior to annuitization. which of the following best describes the nonforfeiture value of the annuity?
the surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges
which of the following is true regarding METs
they allow several small employers purchase less expensive insurance together