PSI - NY Life, Accident and Health Practice Exam 17-55, Just my cards + 199+ 75 ( TEST) (LOT)

How much does medicare part B pay for physician fees -40 60 80 100

80%

What is a deductible that would apply a single deductible to both medical and dental insurance

Integrated deductible

Which settlement options involves having the proceeds remain with the insurer and earrings paid on a monthly basis to the beneficiary

Interest only

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

It is financially insufficient to cover end of life expenses.

What happens to interest earned if the annuitant dies before the payout start date . It is taxable It is taxable only if no beneficiary is named It is not taxable It is only taxable if contract has been in force under one year

It is not taxable

All of the following are ownership rights EXCEPT

Switching the policy from one insured to another

Which of the following amends the Social Security Act to make Medicare secondary to group health plans?

TEFRA

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? - Partially taxable income - Non taxable income - Taxable income - Conditionally taxable income

Taxable income

An agent has recently died and leaves behind a spouse. In order for the agents business to continue, the superintendent may issue to the agents spouse an

Temporary insurance license

Term life vs. whole life insurance

Term life insurance Protection for a specified period of time No cash value build up, pure insurance coverage If you don't pay premiums, coverage stops A renewability option means that at the end of the term you can renew the policy without having a physical Conversion option allows you to change your policy from term to whole life without a physical With decreasing term insurance your premium stays the same, but the amount of coverage decreases as you age Whole life insurance also called straight life You pay a premium as long as you live Amount of premium depends on your age when you start the policy Much higher premiums compared to term life Provides death benefits and accumulates a cash value (higher premiums are invested on your behalf) You can borrow against the cash value or draw it out at retirement Look carefully at the rate of return your money earns Additional info - Term life insurance plans are much more affordable than whole life insurance. This is because the term life policy has no cash value until you or your spouse passes away. In the simplest of terms, it's not worth anything unless one of you were to die during the course of the term. Then that's when you receive money.

All of the following are TRUE regarding incomplete applications EXCEPT

The incomplete application can be accepted with the missing information added later

After a disability policy has been in force for __ years it is considered incontestable.

Two

What happens if the insured discovers that the insured age was accidentally misstated on an application for an individual life insurance policy.

benefits will be calculated according to how much coverage the premium paid would have purchases for the correct age

In a home healthcare benefit, all of the following are eligible expenses EXCEPT

blood transfusions

Which of these will typically authorize treatment from a specialist - Administration - Policy Owner - Insurance Company - Gate Keeper

Gatekeeper

The difference between pre-certfication and concurrent review is that precertfication

Occurs before the treatment is provided

All of the following are characteristics of variable whole life EXCEPT

there is no guaranteed minimum death benefit.

Which of these is NOT considered to be a risk factor in life insurance underwriting - Number of kids - Health History - Hobbies - Occupation

# of kids

In noncontributory plans, which percentage of eligible members must participate?

100%

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while

Committing a misdemeanor

Which of these is considered to be a document that describes the critical segments of a life insurance policy

Policy summary

Who is the individual paid on a fee-for service basis

Provider

Dread Disease Policy

Provides coverage for specific disease(s), such as cancer or leukemia.

All of the following are tax qualified retirement plans EXCEPT

Section 529 plan.

According to the Time Payment of Claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT

for claims involving periodic payments

Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?

long term care rider

Insurance Producer

(also called an agent or insurance broker) is an individual licensed by a State's Insurance Division or Department to sell insurance in that State. There are different categories of insurance and a producer must be licensed in each category he or she wishes to transact business.

An attending physician's statement would be appropriate for which life insurance purpose? Attending physician's statements are mandatory during the application process At the request of the applicant to assist in the underwriting decision At the request of the producer to assist in the underwriting decision At the request of the insurer to assist in the underwriting decision

- At the request of the insurer to assist in the underwriting decision

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Certificate of Authority Consumer report Coverage document Certificate of coverage and benefits

- Certificate of coverage and benefits describes the coverage, conditions and limitations found in the master policy of a group contract

Proceeds of the life settlement contract could be subject to the claims of - Creditors -Children -Spouse - Beneficiaries

- Creditors

Fraternal Benefit Society has each of the following characteristics EXCEPT - Incorporated - Without capital stock - Exist for profit - Exist for the benefit of its members

- Exist for profit More - an organization of people who usually share a common ethnic, religious, or vocational affiliation. This type of society may provide insurance to its members. Fraternal insurers are primarily life insurance providers, and many are church related. Their insureds are typically members of the society or religious body.

All of the following riders can increase the death benefits amount except -Cost of living - Wavier of premium - Accidental Death rider - Guaranteed insurability

- Guaranteed insurability

Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose? - Accelerated lifetime benefit - Guaranteed lifetime withdrawal benefit - Right of income rider - Guaranteed minimum accumulation benefit

- Guaranteed lifetime withdrawal benefit

What contract element is insurable interest a component of - Competent parties - Offer and acceptance -Consideration - Legal Purpose

- Legal Purpose Insurable intrest-

A guaranteed issue insurance policy as no - Initial premium requirement - Incontestable period - Waiting period - Medical underwriting

- Medical underwriting Guaranteed issue insurance - That means regardless of your health, you cannot be declined or turned down. However, guaranteed issue life insurance generally offers low death benefit options with higher than normal premiums.

When an agent is replacing an existing ordinary life insurance policy, the agent must take all of the following actions EXCEPT - Provide the applicant with a copy of the sales proposal - Submit to the agents insurance company a copy of the signed Notice Regarding Replacement - Obtain the beneficiary's signature - Produce the applicant with a notice regarding replacement

- Obtain the benficarys signature

Which of these is NOT an unfair claims settlement practice - Providing claim payments to insureds under the guidelines of the insurance contact - Refusing to pay claims without conducting a reasonable investigation - Compelling insureds to imitate a lawsuit by offering less on insurance claims - Failing to acknowledge and act promptly with respect to insurance claims

- Providing claim payments to insureds under the guidelines of the insurance contact

a 10% excise tax is normally applied to an early withdrawal from an IRA according to HIPAA, This tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of the individuals adjusted gross income

7.5%

What types of life insurance are normally used for key employee indemnification? - Term, whole and universal life insurance - Increasing term insurance - Joint, credit, and group life insurance - Adjustable, permeant and limited pay life insurance

- Term, whole and universal life insurance Key employee indemnification- this is an insurance policy purchased by a business to compensate that business for financial losses that would arise from the death or long-term disability of important company employees

Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this plan?

0 Benefits that fall under a major medical plan are considered to be a reimbursement for a loss and is not taxable as income

The typical long term care insurance policy is designed to provide a minimum of __ years of coverage

1 years

A disability policy where the premiums are due monthly require a grace period of (days) 7 10 15 20

10

States generally define a true "group" for insurance as requiring a minimum of how many participants?

10

The Superintendent MUST give a MINIMUM of how many days notice of a disciplinary hearing?

10

The free look period in New York for individual health insurance policies is __days

10

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?

10,000

A insurer may exclude preexisting conditions on a medicare supplement policy for __ Months 6 8 10 12

12

According the the affordable care act (ACA) of 2010, what is the maximum allowable time from the date of service that a claim can be submitted to Medicare?

12 months

Group accident and health insurance policies issues in New York must generally include an unmarried dependent child who is __ years old or younger

19

When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial:

2 year period

How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?

2 years

Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.

20

Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. - 20 -30 -45 -60

20

Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. 10 -20 -31 -60

20

Employees are required to work at least __ hours per week to become eligible for a small employer health plan

20 hours

An agents commission for the sale of medicare supplement policy in the first year following its effective date cannot exceed ___ of the commission paid for selling or servicing the policy in the second year.

200%

An employer may qualify for health care tax credits through SHOP marketplace if that employer has fewer than how many employees

25

eligible dependents are covered up to age ____ on accident and health policies under the affordable care act.

26

As classified by the Affordable Care Act (ACA), a Silver Plan offers

70% of coverage

Tim's individual life insurance policy has recently lapsed. His policy may be reinstated at any time within __ Years

3 years

An agent has ___ days to report a felony conviction to the superintendent

30

The right to examine period is__ Days for all Long-term care policies sold in New York

30

When a medicare supplement policy is replaced the policy owner will have a free look period of ___ days

30

Greg had recently been terminated from his job that covered his for group life insurance. how long does he have to convert his coverage to an individual policy without needing to prove insurability.

31 days

An insured has a stop loss limit of 5,000 a deductible of $500 and a 80/20 coinsurance. The insured insures 25,000 covered losses. How much will the insured have to pay?

5,000

Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125? - 25 - 50 -75 -100

50

As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with average annual wages of less than $50,000 may be eligible for a tax credit of ___ of the premiums paid by the employer. 30% 40% 50% 60%

50%

IF an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a 1,000 monthly benefit?

500

A Roth IRA owner must be at least what age in order to make tax-free withdrawals - 59 1/2 and owned account for a minimum of 10 years - 59 1/2 and owned account for a minimum of 5 years -70 1/2 and owned account for 10 years

59 1/2 and owned account for a minimum of 5 years

All Agents shall maintain full and correct transaction records of business done by them for a period of AT LEAST

6 years

What percentage of a participants income are group long term disability benefits amount typically limted to

60 %

In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at

60% of the benefit

Universal Life Insurance

A combination of whole life insurance and term life insurance. - is a type of permanent life insurance. With a universal life policy, the insured person is covered for the duration of their life as long as they pay premiums and fulfill any other requirements of their policy to maintain coverage.

In an insurance contract, the insurer is the only partly legally obligated to preform. Because of this an insurance contract is considered - Voidable -Conditional -Aleatory - Unilateral

A contact in which only the insurer would be legal obligated to perform is considered unilateral

All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified

A nonforfeiture option can be used to increase the death benefit

Which of the following is TRUE of a point of service plan?

A patient's care is coordinated by an in-network primary care physician.

HIPPA considers which of the following as individually identifiable health information

A persons health claim information

An insurance agent agrees to pay the first monthly premium for an insurance application. This is called

A rebate which is illegal

Settlement options

A settlement is the way in which your life insurance policy proceeds are paid out.

A single premium cash value policy can be described as

A single premium cash value policy is best described as a policy that is paid up after only one payment

A medical provider that accepts medicare assignment must - Accept payment based upon a defined medicare schudelue and bill the insured for any difference - Accept payment based upon a defined medicare schudleue and negotiate any excess fees - Accept payment based upon a defined medicare schudleue and bill no more than 15% of the excess charges - Accept payment based upon a defined medicare schedule as payment in full.

Accept payment based upon a defined medicare schedule as payment in full.

A long term care policy typically provides all of the following levels of care EXECPT - Skilled care - Intermediate care - acute care - Custodial care

Acute Care Acute care is a branch of secondary health care where a patient receives active but short-term treatment for a severe injury or episode of illness, an urgent medical condition, or during recovery from surgery. In medical terms, care for acute health conditions is the opposite from chronic care, or longer term care

Within how many days must a rollover be completed in order to avoid being taxed as current income - 30 -60 -90 -120

After you receive the funds from your IRA you have 60 days to complete the rollover to another IRA

At what age will a person normally enroll an insurance carrier under a Part C Medicare Advantage plan

Age 65

The ____ is responsible for determining the appropriateness of medicare supplement policy for an applicant - Agent - Underwriter - Applicant - Insurer

Agent

An insurance consultant is best defined as a

Agent who charged fees for advice

The ___ is responsible for determining the appropriateness of a medicare supplement policy for an applicant.

Agent.

The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as

Aleatory

What is the nonforfeiture value of an annuity before annuitization? -All premiums paid - All premiums paid plus interest - All premiums paid minus any withdrawals and surrender charges - All premiums paid, plus interest, minus any withdrawals and surrender charges.

All premiums paid, plus interest, minus any withdrawals and surrender charges. Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant. ... Annuitants can arrange for beneficiaries to receive a portion of the annuity balance upon their death.

Deductible

Amount you must pay before you begin receiving any benefits from your insurance company

What's an HMO?

An HMO gives you access to certain doctors and hospitals within its network. A network is made up of providers that have agreed to lower their rates for plan members and also meet quality standards. But unlike PPO plans, care under an HMO plan is covered only if you see a provider within that HMO's network. Health maintenance organization Federal Employees Health Benefits Program (FEHBP) Indian Health Service (IHS) Medicaid / State Health Insurance Assistance Program (SHIP) Medicare. Prescription Assistance (SPAP) Military Health System (MHS) / Tricare. Children's Health Insurance Program (CHIP) Program of All-Inclusive Care for the Elderly (PACE)

Which of these is NOT considered to be a purpose of an annuity - Annuities are intended to create an estate - Annuities are intended to liquidate an estate - Annuities are intended for the tax free growth of principal - Annuities to distribute accumulated principal

Annuities are intended to create an estate

Which of the following is considered to be the period when the accumulated value in an annuity is paid out? - Annuitization phase - Accumulation Phase - Principle Phase - Period certain phase

Annuitization phase The period when the annuitant starts to receive payments from the annuity is the annuitization phase.

In what form do disability income policies typically pay benefits?

Annuity

Which of the following is included in the entire contract provision

Application

Which is the major reason why long term care insurance is becoming increasingly important?

As life expectancy increases, the chances of needing long term care also increase

What does first dollar coverage mean?

As soon as covered medical expenses are incurred, the policy begins to pay

Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? Nursing home Assisted living Congregate housing Custodial residence

Assisted living

A life settlement intermediary is a - Association which maintains a facility that displays offers and counteroffers for purchases or sellers of life settlement contacts - Person who, for a fee, solicits or negotiates a life settlement contract between a policy owner and a life settlement provider - Person who enters into a life settlement contract with the policy owner. - Association which maintains a facility that displays offerers and counteroffers for purchases or sellers of life settlement contract. - Policy owner who sells his/her life insurance police to a third party

Association which maintains a facility that displays offerers and counteroffers for purchases or sellers of life settlement contract.

A renewable term life insurance policy can be renewed

At a predetermined date or age regardless of the insureds health

At which point are contractual death benefit settlement options determined and by whom are they determined?

At the time the policy is purchased by the owner of the policy

Which of these factors help determine an insureds life isurance policy. - Insureds salary - Marital status - Place of residence - Avocation (hobby)

Avocation (hobby)

The purpose of the coordination of benefits provision in group accident and health plans is to

Avoid overpayment of claims

If an agent would life to start using an assumed name at what point must the superintendent be notified.

Before using the assumed name

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing

Benefit limits

A disablitlly policy owner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury, What is this time period called?

Benefit period

How are health plans classified according to the affordable care act.

Bronze, silver, gold, platinum

What enables applicants to compare different life insurance policies and helps them choose which policy is best for their needs? - Policy Summary - Buyer's Guide - Buyer's Summary - Policy Guide

Buyers Guide

Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value

Can be converted to permanent coverage without evidence of insurability

Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Which of the following is the likely result? - Care is covered _ Care is not covered - Care is only covered in a government facility - Care is only covered if primary care physician gives a referral

Care is covered

Why are insurance policies considered conditional contracts?

Certain conditions need to be met to make the contract legally enforceable.

Which of the following is required for an insurer to conduct business in this state - Certificate of admission - Certificate of domestication - Certificate of authenticity - Certificate of authority

Certificate of authority

Which of the following is not a required provision in an accident and health insurance policy

Change of occupation

The entire contact provision includes all of the following expect the -Applications -Policy - Changes made by the agent - Riders

Changes made by the agent

All of the following are included as part of a contract in the entire contract provision EXECPT the - Riders - Application -Changes made by the producer - Policy

Changes made by the producer

All of the following are elements of an insurance policy except - Definitions - Other insurance e -Claim forms - Conditions

Claim Forms

Naming a contingent beneficiary as "all surviving children" is described by which term? Contingent designation Primary designation Class designation Tertiary designation

Class designation

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called - A managed plan - Stop loss - Coinsurance - A deductible

Coinsurance

A health insurance policy where. the insured has the right to terminate the policy for reasons other than the insureds health is called - Limited renewable - Conditionally Renewable - Guaranteed renewable - Conditionally Cancelable

Conditionally Renewable

In an insurance contract the element that shows each part is giving something of value is called - Offer _ Acceptance - Consideration -Purpose

Consideration

Which of the following is required for the renewal of an agents insurance license - Pass an examination - College credits - Continuing education - Prelicensing education

Continuing education - Complete a 15 hour education course and pay renewal fee to get renewal.

Which of these is affected by the frequency of an insurance policy premium payments - Settlement options - Cash Value - Death benefit - Cost

Cost

Which of the following is TRUE of the limited pay whole life policy?

Coverage continues after the policy is paid-up.

Which of these is NOT subject to income taxation under a modified endowment contract (MEC) - Loan against the cash value - Policy withdrawal - Policy dividend - Death benefit

Death benefit

John the agent made public statements thats falsely portrayed an insured as insolvent. John would be likely found guilty of

Defamation

An example of a tax qualified retirement plan would be an

Defined contribution plan.

A Hospital or medical expense policy will typically cover dental treatment expenses under which circumstance - After the annual limit of dental policy's coverage is reached - Dental treatment is needed to repair an injury - Cosmetic dental treatment is preformed - If treatment is preformed at a in network provider.

Dental treatment is needed to repair an injury

A medicare supplement policy is - Government insurance designed to provide healthcare to the elderly - Designed to provide prescription drug coverage to the elderly - Designed to fill in the gaps of Part A and Part B medicare - A supplement to medicare advantage part C

Designed to fill in the gaps of Part A and Part B medicare

Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness?

Disability income insurance

A pharmacy benefit covers prescription drugs derived from a list called a - Administrative drug list - Drug formulary - Controlled substance list - Generic benefit manager

Drug Formulary

A medicare supplant policy must NOT contain benefits which - Charge additional premiums - Duplicate medicare benefits - Cover more than medicare coverage - Are covered by worker's compensation

Duplicate medicare benefits

Under the health insurance protablity and accountability act ( HIPAA) the employee new group health plan will verify creditable coverage so that the

Emplpoyees waiting period for coverage of a preexisting condition can be reduced under the new employers health plan

All of the following are qualifications for establishing a health saving account (HSA) EXECPT - Enrolled in a high deductible health plan - Be under the age of 65 (not enrolled in medicare) - Enrolled in a health plan with a prescription drug benefit - Enrolled in a health plan that limits out of pocket expenses

Enrolled in a health plan with a prescription drug benefit

Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount

Equal the face amount of the policy

Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this? Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life

Equity index whole life

A professional liability for which producers can be sued for mistakes of putting a policy into effect is called - Fiduciary bond - Errors and ommisions - Fiduciary trust - Errors and oversights

Errors and ommisions

What specific new procedures does the USA Patriot Act require of insurance companies?

Establish an anti-money laundering program

Which of these statements about Medicaid is Correct - Pays for medicare charges exceeding the approved amount - Intended for Senior citizens - Funded by federal state and local taxes - Administered by the Federal government

Funded by federal state and local taxes

How often must an insurance agents license in New York be renewed?

Every 2 years

The waiting period for a disablity insurance policy - Excludes payments for a short term illness or injury - IS the period of time that must elapse following the effective date of the police before benefits are payable - Helps the insurer determine if the claim is legitimate - Allows the insurer to collect medical information on the policy owner

Excludes payments for a short term illness or injury

One of the most important considerations when replacing health insurance would be - Age of the insured - Exclusions on a new policy - Occupation of the insured - Cost

Exclusion on a new policy

The taxable portion of each annuity payment is calculated using which method - Exclusion ratio - Taxable ratio - Cost basis - Tax basis

Exclusion ratio

XYZ company has applied for group health insurance for its employees. What information would the insurers underwriters likely use to determine the appropriate coverage and final premium rate given to the group - Experience rating - Credit reports - Arrest reports - AM best rating

Experience Rating When determining the appropriate coverage and final premium rate for group health insurance. The insurer underwrites will use the groups experience rating. An experience rating system is used to estimate how much a specific group will have to spend on medical care.

What does the word "level in level term describe?

Face amount

Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

Fair Credit Reporting Act

The renewability provision for an individual long-term care insurance policy must be located on the policy forms

First page

Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen? - Fixed period -Fixed amount _life income - Interest only

Fixed amount

In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses?

Flexible Spending Account (FSA)

A client told an international lie to an insurer in order to receive a favorable premium. This is an example of

Fraud

Which of the following is exempted from the incontestability provision in insurance policies?

Fraudulent misstatements

Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms or costs?

Free Look

A group disbablity income plan that pays tax free benefits to covered employer is considered - Non-contributory - Partially contributory - Group Contributory - Fully contributory

Fully contributory

Under the affordable acre act which of these plans is designed to provide coverage that is equivalent to 80% of the full actuarial value of benefits provided under the plan - Gold - Platinum - Silver -Bronze

Gold

Janice forgot to make her insurance premium payment by the due date. The specified period after the due date where she can still make payment and avoid discontinuance of her coverage is called the - Incontestable period - Courtesy Period - Reinstatement period - Grace Period

Grace Period The grace period is the specified period when the insured may still make payment for the continuance of the policy after the premium payment due date.

A master contract and certificate of coverage can be found in which type of policy? -Long term -Medicaid - Group - Medicare

Group

In New York a long term care policy must be _____renewable _ Contingenlty - Conditionally - Guaranteed - Optionally

Guaranteed

Which of the following provides affordable health insurance coverage to small employers - New York Small Business Association - Healthy New York Program - Medicare - New York Health Department

Healthy New York Program

Which of these is a method of determine the level of funds required for ongoing support in the event of the breadwinners death - Financial loss value - Human Life Value - Assessment value - Replacement value

Human life value

What is the waiver of premium provision?

In a long term care contract, the premium is waived after the insured has been confined for a specific period of time

A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment

Indicates a preexisting condition

The conversion privilege under a group life plan allows an employee to convert to a - Family plan with another insurer - Individual plan with another insurer that has better rates - Individual plans upon employment termination - Individual policy in the spouses name

Individual plans upon employment termination

New York Disability benefits Law provides cash payments to workers unable to work because of. Injury or illness that occurred on the job - Injuries only that occurred off the job - Illnesses only that occurred on the job - Non work related injuries or illnesses

Injury or illness that occurred on the job

The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? An agent establishes insurable interest An individual does not have insurable interest on his or her own life Insurable interest only pertains to business arrangements Insurable interest can be based on the love and affection of individuals related by blood or law

Insurable interest can be based on the love and affection of individuals related by blood or law

In regards to a life insurance contract which of the following statements is not true regrinding the concept of insurable interest - Indivduals are assumed to have insurance interest in themselves - Insurable interest is established by a court of law - Insurable interest can be established sufficiently by sentimental attachment alone - Insurable interest must exist at the time of the application

Insurable interest can be established sufficiently by sentimental attachment alone

The DO Not Call Registry offers exemptions for calls placed from all of the following expect - Charities - Poltical orgs - Insurance sales calls - Surveys

Insurance sales calls

What does it mean if a health policy is conditionally renewable?

Insurer may elect NOT to renew only under the conditions specified in the policy

The open enrollment period for Medicare part B is

January 1 through march 31

Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies?

Joint Life Annuity

A common exclusion with vision plans is - Eyeglass frames - The examination - Contact Lenses - Lasik surgery

Lasik surgery

The authority granted to a licensed producer is provided via - Prodcer's apparent authoriyt - Written contract - Law of agency - Principle capacity

Law of agency

The amount received for a life insurance policy in a life settlement is ____ than the death benefit

Less

When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums

Level Premiums

A life settlement broker is someone who is

Licensed to negotiate a life settlement contact

Which type of annuity stops all payments upon the death of the annuitant? Life annuity Period certain annuity Cash refund annuity Joint and survivor annuity

Life annuity

Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? - Life annuity certain - Secure life annuity - Irrevocable survivor annuity - Guaranteed life annuity

Life annuity certain

Which of these is NOT considered to be a common life insurance nonforfeiture option - Cash surrender - Extended term insurance - Reduced pain up insurance -Life income annuity

Life income annuity Life insurance policyholders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value, and paid-up insurance

John the policy owner sells his life insurance policy to help pay for the cost of his terminal illness. This transaction is called a

Life settlement. - An existing life insurance policy is sold by the policy owner to help finance the cost of terminal illness.

A limited payment whole life policy provides - Protection for 20 years - Lifetime protection - Protection for more than one person - Discounted premiums

Lifetime protection

Insurance premium is determined by each of the following factors EXECPT

Liquidity

The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of heir adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule

Long term care insurance premiums

All of the following are examples of pure risk except - Losing money at a casino - Injured whole playing football - Falling at a casino and breaking a hip - Jewelry stolen during a home robbery

Losing money at a casino.

Which of these would NOT be considered a presumptive disability - Loss of vision and speech - Loss of hearing - Loss of a leg or arm - Loss of a leg and arm

Loss of a leg or arm

Small employers who are sponsored by an insurer to provide group benefits to its employees are called

MEWA - A multiple employer welfare association

Life settlement brokers are permitted to so all of the following except - Charge a fee for their services - Advertise the availability of life settlements - Introduce policy owners to settlement providers - Make the first transaction up to 30 days before approved for a license

Make the first transaction up to 30 days before approved for a license

an example of an Unfair Claims Settlement Practice is -Making it mandatory that proof of loss be provided for each claim -Failing to promptly provide reasonable explanations for the denial of claims -Requiring a time limit for submitting a claim -Paying a claim in a timely matter

Making it mandatory that proof of loss be provided for each claim

Which of the following is considered to be a point of service (POS) Plan _ preferred provider org - managed care plan - Protected care provider - Restricted provider org

Managed care plan - Managed care plans are health insurance plans with the goal of managing two major aspects of healthcare: cost and quality. With these plans, the insurer signs contracts with certain health care providers and facilities to provide care for their members at a reduced cost. A point-of-service plan (POS) is a type of managed-care health insurance plan that provides different benefits depending on whether the policyholder uses in-network or out-of-network health care providers

According to the affordable care act, any plan In existence prior to which date is considered a grandfathered plan

March 23,2010

An insurer would be committing Unfair Discrimination if coverage was denied based upon - HIV postive test - Martial Status - Diabetes -Mental disorder

Marital Status

What is the contract called that is issued to an employer for a group medical insurance plan ? - Master policy - Certificate of coverage - Provisional policy - Document of coverage

Master policy

Tyler purchased a disability policy with a waiver of premium rider on April 1. He is disabled on May 1. On June 1, he receives proof of permanent and total disability, and submits a claim. He begins receiving benefits on June 15. When are his premiums waived? - April 1 - May 1 June 1 June 15

May 1, premiums are waived beginning at the date of disability.

A consumer report used to determine eligibility for insurance may include all of the following EXCEPT

Medical underwriting exam

Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT?

Medicare

The purpose of Medicare Supplement Insurance is to address gaps in medicare coverage which can include. - Medicare in hospital deductible - Replacing HMO coverage - Covering chiropractic treatment - Treatment provided in a government hospital.

Medicare in hospital deductible

Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? Hes not eligble for medicare His group health plan and medicare pay 50/50 Medicare is the secondary payer - Medicare is he primary payer

Medicare is the secondary payer

Which type of plan would be most appropriate for an individual on medicare and is concerned that deicer will NOT pay for charges exceeding the approved amount - Medicaid - Long term care -Medicare supplemnet Plan F - Comprehensive major medical

Medicare supplement Plan F Medicare supplement plans F and G are the only medicare supplement insurance plans that cover costs as medicare part B excess charges. An excess charge is the difference between what a doctor or provider charges and the amount medicare will pay.

Group health plans may deny paricaption based upond the

Members part time employment status

Which of the following refers to how often a premium is paid?

Mode

Benefits for a medicare supplement policy. - May duplicate medicare benefits -must not duplicate medicare benefits - May duplicate specific medicare benefits - Are provided by medicare

Must not duplicate medicare benefits

During the examination of an insurers books and records by the superintendent, the insurer

Must not impede the examination

Which of the following was specifically designed to address STOLI and IOLI practices?

NCOIL Act

All of the following are typically included in a life insurance policy illustration EXCEPT - Premium of the policy - Names of the beneficiaries - Interest charged for policy loans - Cash surrender value in 20 years

Names of the beneficiaries

All of these are considered sources of underwriting information about an applicant EXCEPT - Agents report - Medical information Bureau - Inspection repots - National association of insurance underwriters

National association of insurance underwriters

When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid - No deductible payment is required - Deductible specified in the contact is payable by the insured - Insured must pay a percentage of covered losses - An initial deducible plus a percentage of the reaming covered loss is owed by the insured

No deductible payment is required

Short term disability insurance generally only covers injuries due to which of the following?

Non-occupational injuries

How do interest earnings accumulate in a deferred annuity. - On a tax credit basis - On a tax- deferred basis - On a tax free basis -on a taxable basis

On a tax deferred basis

How are contributions made to a Roth IRA handled for tax purposes - Fully tax deductible - Not Tax deductible - Partially tax deductible - Conditionally tax deductible

Not tax deductible

Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible?

Notice of claim

When replacing a life insurance policy an agent just provide the applicant with a

Notice regarding replacement.

Suitability is best described as - Converting a term policy to a whole life policy - Obtaining information from the applicant to determine theater an insurance or annuity product is appropriate - Properly applying the insurer's underwriting guidelines to an applicant - Delivering the buyers guide and policy summary to the applicant

Obtaining information from the applicant to determine theater an insurance or annuity product is appropriate

The gatekeepers roll when used by an HMO is -Establishing out of network providers - Obtaining referrals to specialists from primary care physicians - Taking applications for enrollment into HMO - Processing the subscriber payments

Obtaining referrals to specialists from primary care physicians

The factor used most often when underwriting a disability income policy is

Occupation

The clause that allows an insurer the right to terminate coverage at any anniversary date is called an - Conditionally renewability clause - Optional Renewability clause - Selective renewability clause - Cancelable Clause

Optional renewability clause

Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be: cancelable guaranteed renewable conditionally renewable optionally renewable

Optionally renewable

What clause defines disability as being unable to preform the major duties of the insured's regular occupation - Own occupation clause - Any occupation clause - Residual clause - Presumptive clause

Own occupation clause

Cordination of benefits regulation applies to all of the following plans except Group Vision Plan - PPO - Self funded group health plan - Group health plan

PPO

What kind of life insurance policy issued by a mutual insurer provided a return of a divisible surplus. - Nonparticipating life insurance policy - participating life insurance policy - Divisible surplus life insurance policy - Straight life insurance policy

Participating life insurance policy

The automatic premium loan provision authorizes an insurer to withdraw from a policy cash value the amount of - Any interest payable from an outstanding policy balance - Past due premiums that have not been paid by the end of the grace period - The outstanding policy loan balance - Any surrender charges owed by the policy owner

Past due premiums that have not been paid by the end of the grace period

States that have "no loss no gain" laws require a replacing policy to

Pay for ongoing claims under the policy it replaces

Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? - Waiver of premium - Juvenile waiver - Guaranteed insurability - Payor Benefit

Payor benefit

Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments? _ Period Certain - Straight life - Installment refund - Amount certain

Period Certain

Which of the following is NOT a common exclusion for a medical expense policy

Physical therapy

Replacement regulation is designed to protect the interests of

Policy Owners

An agent who sells an individual life insurance policy in Washington MUST deliver to the policyowner

Policy Summary and Buyer's Guide

Variable life insurance and universal life insurance are very similar which of these features are held exclusively by variable universal life insurance

Policy owner has the right to select the investment which will provide the greatest return

Which of the following would evidence ownership in a participating health insurance contract - Stock ownership - Irrevocable beneficiary staus - Policy ownership - Collateral assignment

Policy ownership

Under a Modified Endowment Contract, what are the likely tax consequences? - Intrest on loans is tax deductible - Premium payments are tax deductible - Pre- death distributions will become taxable - Cash values cannot be surrendered early

Pre- death distortions will become taxable

The federal employees benefit program consists of two types of health plans for federal civilian employees. The t wo pals are fee-for service and

Prepaid. The two types of plants participate in the FEHB program: fee-for-service plans and health maintenance organizations (prepaid)

All Health Benefit Plans issued after January 1, 2014 must provide

Preventative health services

All of the following are functions of an insuring clause EXEPCT - States the conditions under which the policy will pay - Outlines the kind benefits provided - Primarily describes the free look period - Provides the policy's scope and limits of coverage

Primarily describes the free look period

A life insurance agent is required to give a disclosure notice about information practices to an applicant or proposed insured. - After the insured requests a full medical exam - When the insured requests an attending physicians report -Prior to or at the time of signing the application - At time of policy delivery

Prior to or at the time of signing the application

The branch of dentistry which deals with the replacement of missing parts.

Prosthodontics

Fair Credit Reporting Act

Protects consumers with guidelines regarding credit reporting and distribution

Pure Risk

Pure Risk is a category of risk in which loss is the only possible outcome. Which is the opposite of speculative risk. Gambling is considered a speculative risk where there is a chance of either gain or loss

What is the primary feature of a viatical settlement? - No interest on policy loans - Reduced death benefit prepayment - longer contestable period - Lower premiums

Reduced health benefit prepayment More - A viatical settlement is an arrangement in which someone who is terminally or chronically ill sells their life insurance policy at a discount from its face value for ready cash

Long-term care policies sold in New York may NOT exclude coverage for Substance abuse Self inflicted injuries Acts of war Senile dementia

Senile dementia

A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the

Reinsurer

Which type of long term care benefit would be most appropriate for a stroke victim who requires speech therapy administered at her home - Respite Care -Continuing care - Home Health Care - Custodial Care

Respite Care

Under the subrogation clause, legal action can be taken by the insurer against the _responsible third party - Beneficiary - Policy Owner _State

Responsible third party

AN example of endodontic treatment is a

Root Canal

Carol filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of non guaranteed values. This illustration Must disclose that

She may need to resume premium payments, depending on actual results.

Continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician is called

Skilled nursing care

Generally speaking which three levels of care are long term care polices provided with - Diablity, acute care, hospitalization - Accident, medical care and rehab - Physcholgical, acute care, assisted living - Skilled nursing, intermediate and custodial care

Skilled nursing, intermediate and custodial care

What does SHOP stand for in the SHOP exchange

Small business health options program

Which of the following is NOT a type of medicare advantage plan - Health maintenance organization (HMO) - Preferred provider organization (PPO) - Private fee - for services ( PFFS) - Social Security disability income ( SSDI)

Social Security disability income ( SSDI)

Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses?

Stop Loss Limit

Which of these will have the highest monthly payout upon annuitization - Life with period certain - Joint and survivor life - Straight Life -Joint Life

Straight Life

Who assumes the investment risk with a fixed annuity contract - The owner - The annuitant - The insurer - The beneficiary

The Insurer

When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement?

The agent and the applicant

What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?

The applicant and possibly the agent initial any changes made.

This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes - The partial insurance contract between the parties - The entire insurance contract between the parties - The conformity of state status - The legal purpose of the contract

The entire insurance contract between the parties

Which of the following is true about a decreasing term life policy?

The face amount reaches zero at policy expiration.

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness?

The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount.

What does coinsurance mean?

The insurer and the insured share expenses over the deductible.

Under the affordable Care act how would a grandfathered health plan lose its grandfathered status

The insurer significantly raises co-insurance charges, deductibles or co payment

All of the following are required signatures on a life insurance application EXCEPT

The minor in a juvenile policy

Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty must pay an annual penalty which is calculated by multiplying $2,000 by

The number of full time employees minus 30

Annuitant

The person that buys an annuity; may or may not be an annuity's policyowner.

Beneficiary

The person(s) who receive the death benefit. They are selected by the policyholder.

The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policy owner UNLESS which of the following is true?

The policy owner has named an irrevocable beneficiary

Which of the following is TRUE for a flexible premium annuity?

The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.

Premium

The regular payment made toward the insurance policy. These are typically monthly.

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is. - The shorter the payment period, the lower the premium - The longer the payment period the higher the premium - The shorter the payment period the higher the premium - The payment period has no affect on the premium payment

The shorter the payment period the higher the premium

Which of the following decisions would a health savings account owner NOT be able to make - The amount contributed by the employer - The amount contributed by the owner - The underlying account investments used - The medical expenses paid for by the HSA

The underlying account investments used

A disability elimination period is best described as - Time deductible - dollar deductible - Eligibility period - Probation period

Time deductible For long-term disability insurance, the elimination period is like a time-based deductible: It's the waiting period before benefits begin, starting the day you become ill or injured. The typical elimination period is 90 days. You can alter the cost of your policy by changing its elimination period

What is the elimination period of an individual disability policy

Time period a disabled person must wait before benefits are paid.

Which is the primary purpose of Health Reimbursement Accounts (HRAs)?

To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.

Whats the purpose of the Medical Information Bureau (MIB)

To help underwriters evaluate risk

Tom the agent replaced a clients insurance policy when it was not int the clients best interest. Tom could be found guilty of.

Twisting

Which of the following pertains to the analysis of an applicants personal information and determine water insurance should be issued or declined Adverse calculation Underwriting Risk classification Actuarial determination

Underwriting

Reggie purchases a life insurance policy with a face amount of 500,000. After 15 years the cash value has accumulated to 100,000 and. the policy face amount has become 600000. Which type of life policy is this

Universal life

Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? - Payment of claims - Legal Actions - Unpaid premium - Time of payment claims

Unpaid premium

David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision? - Unpaid provision - Consideration clause - Waiver of premium provision - Reduced benefit clause

Unpaid provision

Maximum Benefits refers to the -Upper limit of the total lifetime benefits the insurance company will pay - Upper limit percentage of what the insurance company will pay for coinsurance - Upper limits of what the insured will pay in out of pocket expenses - Upper limits of what an insurance company will pay for any particular claim

Upper limit of the total lifetime benefits the insurance company will pay

Which of the following lists the three common types of permanent individual life insurance?

Variable Life, Whole Life, Universal Life

Which type of life. insurance offers flexible premiums a flexible health benefit and the choice of how the cash value will be invested - Adjustable life policy - Variable universal policy - Universal policy - Modified whole life policy

Variable universal policy

What guarantees that the statements supplied by an insurance applicant are true?

Warranty

Under which situation must insurable interest exist between the applicant and insured at the time of application?

When a third-party applicant names themselves beneficiary

When will a policy pay on a UCR basis?

When particular benefits are not listed on a payment schedule

When does a life insurance policy typically become effective - When the policy is issued - When initial premium is collected and policy is issued - When the application is completed and signed -WHen the completed application is signed and initial premium is collected

When the initial premium is collected and the policy is issued

When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability?

When there is a buy-sell agreement funded with life insurance to buyout the interest of a deceased owner or partner.

Under which circumstance may a commission be shared between two agents.

When they are both licensed in the same line of business

Adjustable Life Policy

Whole life insurance policy, but you can change your policy as your needs change. You can change your premium payments to increase or decrease coverage -- Adjustable life insurance is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period.

A renewable term life insurance policy allows the policy owner the right to renew the policy - At anytime the policy owner chooses - as many times as the policy owner chooses - Paying the same premium as before the renewal - Without producing proof of insurability

Without producing proof of insurability

When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing that applicant a summary of coverage that includes all of the following EXCEPT

a detailed and comprehensive summary of the accelerated benefit

A group conversion option may be used in all the following instances EXCEPT

a life-changing event, such as marriage, divorce, or childbirth

How soon can the benefit payments begin with a deferred annuity?

a minimum of 12 months after the date of purchase

respite care

a type of care provided for caregivers of homebound ill, disabled, or elderly patients

How do warranties differ from representations?

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

Which of the following policy types is considered double indemnity?

accidental death

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

age

An individual most likely will have an insurable interest in insuring a person's life if

an economic interest exists for the continuance of the insureds life.

A change in an insurance application requires

an initial made by the applicant

What is issued to each employee of an employer health plan? - Provision - Receipt - Policy - Certificate

certificate

A waiver of premium rider allows an insured to waive premium payments if the insured is - Tempoarilty diabled - Unemployed -Completely and permanently disabled - Experiencing financial hardship

completely and permantley disabled

Business Overhead Expense Insurance

covers the costs of running your business when your absence, due a disability, means those costs would go unpaid. The expenses covered by BOE insurance include important day-to-day functions like paying wages, debts, rent or mortgage, and taxes.

Medicare Part B covers - Long term care - Hospital room and board - Doctors Charges - Prescription drugs

doctor's charges

The group conversion option is allowed for all of the following EXCEPT

during the annual benefits enrollment period.

Which of the following is covered by a dread disease policy?

illnesses that do not occur frequently but incur significant costs when they do occur

Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit - Stop renewing policy when the insured reaches a specific age - Cancel policy if premiums are not paid - increase the premiums on a individual basis - Increase the premiums on the bassi of an entire classification

increase the premiums on a individual basis

Health insurance will typically cover which of the following perils - Death due to illness - Injury due to accident - Death due to accident - Dismemberment

injury due to accident is a covered peril in health insurance

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT

the treatment procedures that are covered by the policy.

first dollar coverage

insurance plans that cover all medical spending, with little or no patient payment

Current assumption whole life policies are sensitive to which of the following?

interest rates

Sharron is the policy owner of a 50,000 life insurance policy her son Mike, is the beneficiary. If Sharon must obtain Mikes signature in order to change the beneficiary what kind of beneficiary designation is this - Teriary - Contingent -revocable - irrevocable

irrevocable

Why is rehabilitation considered worthy of federal help under workers' compensation?

it reduces insurance losses and helps regain the worker's dignity

What type of insurance should a company purchase if it wants to insure the life of its CEO?

key person insurance

Which problem was universal life insurance designed to address?

low interest rates during periods of high inflation

The premium for a modified whole life policy is

lower than the typical whole life policy during the first few years and then higher than typical for the remainder

Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?

major medical insurance

What is a MIB report?

medical information on an applicant for assessing life or health insurance risk

All of the following are classifications of risk EXCEPT

non-nicotine

Straight Life Policy

sometimes called a straight life policy, is a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit. Like all annuities, a straight life annuity provides a guaranteed income stream until the death of the annuity owner

Which of the following occurs immediately after the application is submitted and the initial premium paid?

the underwriting process begins

Which of the following is characteristic of a nonqualified plan?

plan does not meet federal guidelines for tax benefits

Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?

prearranged costs for services rendered

Straight Life Annuity

sometimes called a straight life policy, is a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit. Like all annuities, a straight life annuity provides a guaranteed income stream until the death of the annuity owner. Largest monthly payment!

Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age?

renewable term

Term insurance is appropriate for someone who

seeks temporary protection and lower premiums

Respite care is able to provide: permanent relief to the patient's primary caregiver health care to the patient's primary caregiver weekly benefit payments to supplement the primary caregiver's income temporary relief to the patient's primary caregiver

temporary relief to the patient's primary caregiver

Which is a disadvantage to a flexible premium annuity?

the actual amount of the annuity benefit cannot be determined in advance

which one of the following represents an advantage of obtaining a policy loan versus a withdrawal?

the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis

What is the purpose of Stranger-originated life insurance (STOLI)?

the policy is originated primarily or solely for the purpose of resale

Managed care plans increase efficiency by all of the following means EXCEPT

transferring the management of costs to the insureds.

After __ years from date of issue an individual health insurance policy can no longer be cancelled by the insurer for misstatements (except for fraud)

two years

All of the following are requirements to qualify for Social Security disability benefits EXCEPT when

unable to work in occupation in which the worker was trained or educated

When does insurable interest come into play in a life insurance policy?

when the applicant for the policy is not the insured

When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax?

when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies

will no longer provide insurance protection

How does a noncancelable policy differ from a guaranteed renewable policy?

with the non cancelable policy the insurer may increase premiums only based on the terms of the policy