Life insurance

Insurance crimes which affect interstate commerce are prosecuted by the

Us attorney general

A Health Reimbursement arrangement must be established

by the employer

Which of the following waiting periods would result in the lowest premium for a disability income policy?

180 days

Elimination periods typically apply to

Disability policies

Which of the following would permit an insurer to delay a covered disability policy claim?

Elimination period

Which of the following health insurance provisions requires that the application becomes part of the policy?

Entire contract clause

1945 McCarran and Ferguson Act

Every state regulates their own insurance

Custodial care is normally covered under

long term care insurance

A major medical expense policy typically does not

pay surgeon fees on a first dollar basis

A guaranteed renewable provision allows

premiums which can only be increased per rate class

The Change of Occupation provision in a Disability Income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply?

Benefits can be increased in the event if a covered claim

Tim had an on the job accident and collects benefits from his individual disability income policy. Which factor could possibly reduce these benefits?

Benefits he receives from workers compensation

Which of these actions would require licensure as an advisor?

Charging a fee for advisory services of insurance coverage

A change in a licensees name or address must be provided to the Commissioner within __ days

30

If replacement was involved in the sale of an insurance policy, a producer must provide a replacement notice no later than the

Application date

In a qualified retirement plan, the yearly contributions to an employee's account

Are restricted by maximum levels set by the irs

Which of these statements reflects an accurate portrayal of Medicare Select?

Insured uses preferred providers in exchange for paying lower premiums

Which health policy clause specifies the amount of benefits to be paid?

Insuring

Medicare supplement insurance requires an individual to be at least how old for open enrollment?

No minimum age

Short term group disability income benefits are

a percentage of weekly earnings up to to a stated maximum

Carlos' producer license has been suspended due to non renewal. He may apply for reinstatement within the____ month period following the date when the license should have been renewed

12

Which of the following is not covered by a comprehensive long term care policy?

Acute care

The "use it or lose it" rule applies to

Flexible savings account

Which type of deductible must be satisfied again for each illness or accident in a major medical plan?

Per cause deductible

A life annuity feature which provides benefit payments for a minimum number of years, no matter when the annuitant dies, is called

Period certain

Security laws passed by Congress are enforced by which Federal agency?

Security and Exchange commission

How long is individual medical expense insurance normally written for?

1 year

Individuals seeking Social Security disability income benefits must have a disability that will eventually lead to death, or be expected to last at least

12 month

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

20%

Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of

20%

The major medical deductible carryover period normally applies to expenses incurred during the last ____ months of the plan year.

3

A pre existing conditions limitation may NOT exceed ___ months in all Medicare Supplement policies sold in Maryland.

6

A pre-existing conditions limitation may not exceed ___ months in all longterm care policies sold in Maryland

6

Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?

60 days

Emergency health care coverage for Medicare enrollees traveling abroad is

A Medicare supplement additional benefit

Which of the following describes coverage in a Medicare Part B coinsurance?

A Medicare supplement core benefit

What is normally the consequence for not obtaining pre admission certification prior to receiving inpatient medical care?

A reduction in benefits

An insured is covered under a group long-term disability policy. Under this type of policy, the definition of disability based on any occupation typically applies

After two years of disability

The Maryland Life and Health Insurance Guaranty Corporation is funded by

Assessments of member insurers

The Affordable Care Act established exchanges in order to

Assist individuals and small businesses when making their health insurance purchases

What are reasonable and customary charges for health insurance primarily based on?

Average charges within a geographic region

Which of these is not considered to be a cost connected with an individual's death?

Business expenses

According to the Affordable Care Act, new Health Insurance Marketplaces are established by the

CCIIO

Which of the following provisions allows an insured or the insurer to terminate the policy?

Cancelable provision

In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange?

Contact the employer if an employee stops coverage under a plan offered in the exchange

What does the rehabilitation benefit cover in a disability income policy?

Covers the approved cost of the rehabilitation necessary to help a disabled return to work.

What effect does interest income have upon insurance premiums?

Decreases premium

Which of the following is generally a form of group credit life insurance?

Decreasing term

The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the

Deductible amount

When determining the accumulation value of a deferred annuity, the total is calculated by taking the premiums paid plus interest earned minus

Expenses and withdrawals

Which of the following are used by most insurers when determining the premiums for large groups?

Experience rating

When a "ceding" insurer picks and chooses which risks to reinsure and the reinsurer picks and chooses which risks to accept, it is known as

Facultative Reinsurance

An example of misrepresentation is

Falsifying the terms, benefits, advantages, or conditions of an insurance policy

An organization that requires Healthcare services to be provided by a network of physicians and hospitals is known as a

HMO

An accident and health plan that typically covers ONLY the services of approved providers is called a

HMO plan

A family counseling benefit is typically offered under which of these coverages

Hospice care

Some standard Medicare Supplement policies include which benefit?

Hospice care

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

A business may purchase an annuity for all of the following reasons except

Informally funding a non-qualified deferred compensation plan

Who is protected with the "other insurange with this insurer" provision?

Insurance company

Andy is in need of health care performed by skilled medical practitioners, but only on an intermittent basis. What level of care will his doctor likely prescribe?

Intermediate care

In what way are insurance policies said to be aleatory?

Involves the potential for the unequal exchange of value

Group life insurance is typically issued as

Level term insurance

In a disability income contract, an insured is considered to be totally disabled under the presumptive disability provision if he/she

Loses the ability to speak

Which of the following approves continuing education coursework in the state of Maryland?

Maryland insurance administration

Which of the following statements accurately describes the financial impact of total disability?

May be worse than the financial impact of death

Skilled nursing facility expenses are sometimes covered by __, but only if the insured was hospitalized prior to entering thr facility

Medicare

Which of these is a type of private insurance that covers the cost sharing amounts under Medicare

Medicare supplement

Medicare part a coinsurance payments are covered by

Medicare supplement plan a

Which of the following does not meet the requirements of skilled nursing care

Must be provided exclusively in a hospital

Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this?

Noncancelable

Which of the following health insurance plans charge a premium that cannot be increased?

Noncancelable

Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?

Nonoccupational coverage

Sarah, age 88, is a life annuitant who had lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were

Not distributed to life annuitants who died before life expectancy

How are the premiums for an individually owned disability income policy treated for tax purposes?

Not tax deductible at all

The Maryland Insurance Administration has the ability to examine the records of all admitted insurers because

Of the powers granted through state law

All of these statements correctly describe an aleatory contract except

Only one party makes an enforceable offer

Cause of the loss

Peril

The standard provisions of an accident and health insurance policy require that the

Policy endorsements, and attached papers constitute the entire contract

The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is

Preferred provider organization (PPO)

A producer has indicated to a potential client that the proposed life insurance policy is covered by the Maryland Life and Health Insurance Guaranty Corporation. This action taken by the producer is

Prohibited by law

The Commissioner is empowered to perform each of the following acts EXCEPT

Prosecute producers who violate state insurance laws

Ambiguities in contracts are typically interpreted in favor of the insured. This rule is referred to as

Reasonable Expectations

Which of the following disability income provisions allows two periods of disability to be counted as one?

Recurrent disability

A life insurance policy owner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen?

Reduction of premium payment

Which of the following is not included as a hospice benefit under a major medical plan?

Rehabilitation

The inability to perform some of the duties of one's own occupation is known as a

Residual disability

When issuing disability income coverage on a substandard risk, an insurance company may

Shorten the benefit period

Medicare Part A covers which type of care?

Skilled Nursing Facility Care

If an individual would like to enroll in Medicare or seek public information about Medicare, which federal agency handles this?

Social Security Administration

An individual may receive Medicare Part A Hospital benefits, regardless of age, as long as the person has received which of the following benefits for at least 24 months

Social Security Disability

Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan?

Taxes must be paid on 75% of the benefits received

Which statement concerning the Entire Contract provision in an individual accident and health insurance policy is true?

The agent doesn't have the authority to change the policy or waive its provisions

Which statement regarding the joint and survivor life insurance settlement option is not true?

The amount of each installment is larger than the single life income option

All of these statements concerning group credit life insurance are false except

The face amount is based on the outstanding loan balance

An insured, age 67, is covered under a disability income policy. What will the insurer require in order for the insured to continue coverage?

The insured must actively be at work for a specified number of hours per week

Who may terminate coverage under a cancelable health insurance policy

The insured or the insured

The Optionally Renewable provision allows what party to cancel the contract

The insurer

Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

The policy is surrendered for less than what was paid into it

How is an insurer's accident and health claim handled by an insurer if it occurs during the policy's grace period?

The unpaid premium may be subtracted from the reimbursement

Why were Exchanges implemented by the Affordable Care Act (ACA)?

To create a one-stop market for standardized health insurance plans

Tony the producer induces a policyholder to cancel her existing insurance policy and take out a new one by misrepresenting the benefits of the inferior new policy. Tony has engaged in the unfair trade practice of

Twisting

Which of the following best describes the presumptive disability provision?

Waives the typical total disability requirements

Respite Care coverage is typically found in a(n)

long term care policy