Questions missed, GARUNTEE EXAM HEALTH & LIFE 2021

An employee has a flexible spending account with 5000 annual benefit. This year the employee use $3000. What would be the amount of benefit available to the employee next year?

$5000. FSAs are subject to use or lose rule, unused benefits do not carryover to the next year.

Which of the following will NOT qualify for a limited lines producer license? a) A person selling endowments. b) A person selling travel accident insurance c) A person selling insurance on real estate transactions d) A person selling insurance from a lending institution in connection with a debt

A) A Person selling endowments. A limited insurance producer is authorized to solicit only specialty insurance products. Among limited lines are flight, baggage, title, credit and funeral director. Endowments require a life producer's license.

In Indiana all of the following may act as insurance consultants EXCEPT a) A trust officer of a bank acting in the normal course of his duties. b) An individual who holds both the producer's and consultant's license. c) An attorney acting within his professional capacity. d) A licensed insurance producer.

B) an individual who holds both the producers and consultants license The Insurance Code allows certain professionals, acting within the scope of their profession, to advise their clients on matters of insurance without holding an insurance license. While a producer may act as a consultant, he/she may not, however, hold both licenses at the same time.

Jeff is 45 years old and currently owns life insurance, but is considering purchasing a new Universal Life policy. Which of the following scenarios would NOT involve replacement? a) Allowing his one-year Term policy to expire b) Borrowing 25% of the cash value of his existing Whole Life policy to purchase the new Universal Life c) Terminating the existing Term to Age 65 policy d) Placing his existing Whole Life on Extended Term

A) Allowing his one year term policy to expire. Allowing a term policy to expire at the end of its term would not be considered a replacement. All the other scenarios would result in diminishing the existing policy's value.

Medicare is a health insurance program for all the following individuals except: a) Those with low income and lower assets. b) Those 65 or over. c) Those with permanent kidney failure. d) Those who have been on Social Security disability for two years.

A) Those with low income and lower assets. You answered those who have been on Social Security disability for two years. Medicare is a federal program for those 65 and over, those that have been on Social Security for two years, and those with permanent kidney failure. Assets and income I have nothing to do with Medicare eligibility

When me HIV related test results be provided to the MIB?

Only if the individual is not identified. You answered only when the test results are negative. Insurance companies must maintain strict confidentiality regarding HIV related test results or diagnoses. Test results may not be provided to the MIB if the individual is identified.

Considering the principles of liquidity, how would the policy owner used to days cash values in a life insurance policy?

Use it for emergency expenses. You put fun to retirementk m in huhu

If a life insurance policy is purchased by someone who has no insurable interest in the insured it is considered?

STOLI policy. You put third-party ownership. Stranger oriented life insurance is a Life Insurance a Greg arrangement in which a person with no relationship to the insured purchases a life insurance policy on the insurance life with the intent of selling the policy to an investor in profiting financially when the insured dies

Under the Affordable Care Act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event? a) 10 days b) 30 days c) 60 days d) 90 days

C) 60 Days Unless specifically stated otherwise, individuals or enrollees have 60 days from the date of a triggering event to select a qualified health plan.

Most LTC plans have which of the following features: a) No elimination period b) Variable premiums c) Open enrollment d) Guaranteed renewability

D) Garunteed Renewability. The benefit amount payable under most LTC policies is usually a specific amount per day, and some policies pay the actual charge incurred per day. Most LTC policies are also guaranteed renewable; however, insurers do have the right to increase the premiums. LTC plans do have elimination periods.

A distribution from an employer sponsored retirement plan or from an IRA is eligible for tax free rollover if it is reinvested in an IRA within...?

60 days. You answered 30 days. To be eligible for a tax free roll over, the distribution must be reinvested into an IRA within 60 days following the distribution in the plan participant must not take the actual physical receipt of the distribution. Unless the entire amount is rolled over, the part retained will be taxed as ordinary income.

All of the following are unfair claims settlement practices EXCEPT a) Failing to acknowledge pertinent communication pertaining to a claim. b) Suggesting negotiations in settling the claim. c) Refusing to pay claims without conducting a reasonable investigation. d) Failing to adopt and implement reasonable standards for settling claims.

B) Suggesting Negotiations in settling the claim. When settling claims, negotiation can come into play.

Which of the following is considered a qualifying event under cobra...? A) Relocation B) promotion C) divorce D) marriage

C) Divorce. You put marriage. Other qualifying events include the voluntary termination of employment; and employees change from full-time to part-time; or the death of the employee.

What is not a benefit of a POS plan? A) it allows guaranteed acceptance of all applicants B) it allows the employee to use an HMO provided doctor. C) It allows the employee to use a doctor not covered under the HMO D) with point of service plan the employees do not have to make a decision between the HMO or PPO plans that lock them in

A) It allows guaranteed acceptance of all applicants. You put in allows the employee to use an HMO provided doctor. The different choice can be made every time I need arises for medical services.

Which of the following is not covered under plan a and Medigap insurance? A) The 20% part B coinsurance amounts for Medicare approved services B) The first 3 pints of blood each year C) The Medicare part a deductible D) Approved hospital cost for 365 additional days after Medicare benefits end

C) The Medicare part a deductible. You put approved hospital cost for 365 additional days after Medicare benefits end. Medicare supplement plan a provides the core, or basic, benefits established by the law. All of the above are part of the basic benefits, except for the Medicare part a deductible, which is a benefit offered through nine other plans.

Which of the following is not mandatory under the uniform provisions law as applied to accident and health policies? a) physical examination and autopsy b) entire contract c) probationary period d) time limit on certain defenses

C) Probationary period. You put physical examination and Autopsy. Probationary period is an optional provision. Physical examination an autopsy or not.

A couple owns a life insurance policy with the children's term writer. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability? A) Her parents federal income tax receipts B) Medical exam and parents medical history C) Proof of insurability is not required D) medical exam

C) Proof of insurability is not required. You answered medical exam. If a children's term rider is attached to a life insurance policy, children can be covered under the policy until they reach the maximum age stated in the policy. At that point, they can convert their coverage to a new policy without having to issue proof of insurability

If an insured pays a health insurance premium each month how long with the grace period be under the policy?

10 days. You put 14 days. If the premium is paid on a monthly basis, a policy's grace. Must be at least 10 days.

What type of insurance would be used for a Return of Premium rider? a) Level Term b) Decreasing Term c) Annually Renewable Term d) Increasing Term

D) Increasing Term The Return of Premium Rider is achieved by using increasing term insurance. When added to a whole life policy it provides that at death prior to a given age, not only is the original face amount payable, but also all premiums previously paid are payable to the beneficiary.

Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage? a) Limited Risk Policy b) Specified Disease Policy c) Credit Disability d) Special Risk Policy

D) Special Risk Policy The Special Risk Policy will cover unusual types of risks that are not normally covered under AD&D policies. It covers only the specific hazard or risk identified in the policy, such as a racecar driver test-driving a new car.

Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, total disability is defined as... a) Own occupation - more restrictive than other definitions. b) Own occupation - less restrictive than other definitions. c) Any occupation - more restrictive than other definitions. d) Any occupation - less restrictive than other definitions.

C) Any Occupation - More restrictive than other definitions If total disability is defined as any occupation, it means the coverage will apply only if the insured cannot find any means of income whatsoever. This is more strict than own occupation, where a person merely has to prove that they cannot perform the job for which they were previously trained.

Which of the following riders would NOT increase the premium for a policyowner? a) Waiver of premium rider b) Multiple indemnity rider c) Impairment rider d) Payor benefit rider

C) Impairment Rider The impairment rider excludes a specified condition from coverage, therefore, reducing benefits. An insurance company will not charge extra for a rider that reduces benefits.

To be valid, and insurance policy must have all the following except? a) Acceptance b) consideration c) offer d) counter signature

Counter signature. Can you put offer. And insurance policy is a contract. In order to be deemed enforceable in court, a contract must have consideration, offer, acceptance and a legal purpose.

What is the maximum age for qualifying for a catastrophic plan? a) 26 b) 30 c) 45 d) 62

B) 30 Young adults under age 30 and individuals who cannot obtain affordable coverage (have a hardship exemption) may be able to purchase individual catastrophic plans that cover essential benefits.

Traditional IRA contributions are a) Partially tax deductible depending on the income level. b) Tax deductible. c) Deducted based on the income level. d) Never tax deductible.

B) Tax Deductible The following taxation rules apply to contributions made to traditional IRA plans: tax-deductible contributions for the year of the contribution (based on the person's income); contributions must be made in "cash" in order to be tax deductible; excess contributions are taxed at 6% per year as long as the excess amounts remain in the IRA; and tax-deferred earnings are not taxed until withdrawn.

When may an insurer disclose an individual's genetic information? a) Never, except for law investigation purposes b) When the affected party provides written consent c) Under the conditions deemed reasonable by the Commissioner d) At any point, as long as it does not do so for financial gain

B) When the affected party provides written consent No insurer may use an individual's or a family member's genetic information to deny or limit any coverage or establish eligibility, continuation, enrollment or premium payments. An insurer cannot request or require collection or disclosure of an individual's or family member's genetic information. In order to disclose an individual's or family member's genetic information, written consent must be provided by the affected party.

Under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties? a) The producer must make sure that the applicant has received all required forms. b) The producer must conduct a reasonable investigation to determine if a replacement will take place. c) The producer must notify the existing company of the replacement. d) The producer must provide an applicant with a copy of the Important Notice Regarding Replacement of Life Insurance.

B) The producer must conduct a reasonable investigation to determine if a replacement will take place While the producer must provide the applicant with all the appropriate documentation and notices, first and foremost, the producer must take an active role and conduct an investigation to determine whether the replacement will indeed take place.

What is the period of coverage for events such as death or divorce under COBRA? a) 36 months b) 60 days c) 31 days d) 12 months

A) 36 Months The maximum period of coverage under COBRA is 36 months, in the event of the covered employee's death or divorce.

What is a specific requirement regarding the number of employees in a SIMPLE plan

No more than 100 and ploys. You put at least 100 employees. A simple (Savings and sent of match plan for employees) Plan is available to small businesses that employ not more than 100 employees receiving at least 5000 in compensation from the employer during the previous year.

A policy will pay the death benefit if the insured dies during the 20 year premium paying., And Nothing if death occurs after the 20 year period. What type of policy is this?

The answer is level term. You answered terms to specified age. A 20 year term policy is written to provide a level death benefit for 20 years.

All of the following are general requirements of a qualified plan except...? A) The plan must provide an offset for Social Security benefits B) The plan must be communicated to all employees. C) The plan must be for the exclusive benefits of the employees and their beneficiaries. D) The plan must be permanent, written and legally binding

The answer is option a. The plan must provide an offset for Social Security benefits. You answered the plan must be for the exclusive benefits of the employees and their beneficiaries. Plans must meet the general requirements established by the IRS.The IRS does not require that the plan must provide an offset for Social Security benefits, however it does say that the plan must be for the exclusive benefits of the employees and their beneficiaries.

The provision that states that both the printed contract and a copy of the application form the contract between the policyowner and the insurer is called the: a) Entire contract. b) Certificate of insurance. c) Aleatory contract. d) Master policy.

A) Entire Contract The policy, together with the attached application, constitutes the entire contract. This provision limits the use of evidence other than the contract and the attached application in a test of the contract's validity. This is a mandatory provision in life insurance.

The term "fixed" in a fixed annuity refers to all of the following EXCEPT: a) Amount and length of payments b) Death benefit c) Guaranteed rate of interest d) Equal annuity payments

B) Death Benefit A fixed annuity is fixed in the sense that it provides a guaranteed minimum rate of interest and income payments that do not vary from one to the next. The company also guarantees the specified dollar amount for each payment and the length of the payout period. Annuities do not provide a death benefit.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? a) They provide additional information from an outside source about a particular risk. b) They provide information about a customer's character and reputation. c) The customer has no knowledge of this action. d) The customer's associates, friends, and neighbors provide the report's data.

D) The Customers assioates and friends and neighbors provide the reports data Both consumer reports and investigative consumer reports provide additional information from an outside source about a customer's character and reputation, and both types of reports are used under the Fair Credit Reporting Act. The main difference is that the information for investigative consumer reports is obtained through an investigation and interviews with associates, friends and neighbors of the consumer.

Under the uniform required provisions, proof of loss under a health insurance policy normally would be filed within...?

90 days of a loss. You answered 30 days of a loss. Under the uniform required provisions, proof of loss under a health insurance policy normally would be filed within 90 days of a loss

When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT a) Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. b) Sending the existing insurance company a written notice of replacement. c) Include a policy summary on the proposed life insurance in the communication with the existing company. d) Obtain from the producer a list of the applicant's life insurance or annuity contracts to be replaced.

A) Provide a copy of the important notice regarding replacement Providing a copy of the Important Notice Regarding Replacement is a producer's responsibility.

Which of the following is not true regarding equity indexed annuity's? A) they earn lower interest rates than fixed annuities B) The insurance company keeps a percentage of the returns C) They have guaranteed minimum interest rates. D) They are less risky than variable annuities.

A) They are in lower interest rates than fixed annuities. You put, the insurance company keeps a percentage of the returns. Equity index annuity's invest on an aggressive basis in order to yield higher returns. like a fixed annuity, Equity index to Knooty's have guaranteed minimum interest rates. The insurance company often keeps a predetermined percentage of the return and pays the rest to the annuity owner. Equity indexed annuity's are less risky than variable annuities and earn higher interest rates than fixed annuities.

In the event an employer wishes to purchase life insurance on an employee, within how many days of receiving a written notice must the employee consent to be insured? a) 7 days b) 10 days c) 30 days d) 60 days

C) 30 days In order for an employer to purchase life insurance on an employee, the employee must provide consent. Consent is assumed if the employee is delivered a notice of coverage and does not object to the coverage within 30 days.

In insurance, an offer is usually made when a) The agent hands the policy to the policyholder. b) An agent explains a policy to a potential applicant. c) An applicant submits an application to the insurer. d) The insurer approves the application and receives the initial premium.

C) An Applicant submits and application to the insurer In insurance, the offer is usually made by the applicant in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy.

If an Indiana family has a low level of income and cannot afford health insurance, what program could help? a) The Federal Insurance Assistance Program b) The Guaranty Association Fund c) The Indiana Children's Health Insurance Program d) The Indiana Health Insurance Pool

C) The Indiana childrens health insurance program The Indiana Children's Health Insurance Program, also known as "Hoosier Healthwise," is a health care program for children and pregnant women, as well as working families with a low level of income.

Once a complaint has been filed with the Commissioner regarding an unfair claims practice, the Commissioner a) Within 20 days will suspend the company's certificate of authority. b) Within 10 days request a report from the company in violation. c) Within 10 business days will send a copy of the complaint to the company involved. d) Within 20 business days will inform the complaining party of the action taken.

C) Within 10 business days will send a copy of the complaint to the company involved When a consumer files a complaint with the Commissioner regarding an unfair claims practice, the Commissioner will send a copy of the complaint to the company involved and will inform the complaining party of the action taken within 10 business days.

Social Security was created to provide all the following benefits except...? A) disability income B) retirement income C) unemployment income D) survivors benefits

C) unemployment income. You chose survivors benefits. Social Security is designed to provide protection against financial loss due to old age, disability, or death. It also provides income during retirement.

If a complaint has been filed against a producer who has been implicated in an unfair trade practice, the Commissioner will hold a hearing. When must the producer be notified of the charges? a) Not more than 63 days after the complaint review b) No later than 20 business days from the file of complaint c) 10 days from the receipt of complaint by the Commissioner d) At least 5 days prior to hearing

D) Atleast 5 days prior to the hearing If the Commissioner has a reason to believe that an insurance producer has been involved in an unfair trade practice, the Commissioner will hold a hearing. The producer must be notified of the hearing and the charges no later than 5 days before the hearing.

And insured bought an insurance policy that requires him to pay 150 in premiums on the 15th of each month he didn't take an extended vacation in forgets to pay the premium. 10 days later, his policy is still in effect because and has not lapsed. Which provision allows for this?

Grace period. You answered automatic premium loan. Grace period is a mandatory provision found an all life insurance policies that provides coverage for a period of time after the premium becomes past due.

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement options for this policy owner select?

Joint and survivor. You picked life income. Under the joint and survivor settlement option, payments will continue until the death of the last beneficiary.

Which part of an insurance application would contain information regarding the cause of an applicant deceased relatives?

The answer is medical information. You answered general information. Medical Information of the applicant includes information on the perspective insurance medical background, present health, any medical visits in recent years, medical status of living relatives, and the causes of death of deceased relatives. All that information is medical information, Even information regarding the cause of deceased relatives.

In a Disability Income policy, all of the following are considered presumptive disabilities EXCEPT a) Loss of hearing. b) Loss of two limbs. c) Loss of speech. d) Loss of one eye.

D) Loss of one eye The definition of a presumptive disability varies by company, but generally includes a total loss of sight, speech, hearing or the use of any two limbs.

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? a) The insurer will pay the death benefit minus one month's premium. b) The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. c) The insurer will pay the full death benefit from the group policy to the beneficiary. d) The insurer will pay a reduced death benefit to the beneficiary.

C) The Insurer will pay the full DB from the group policy to the beneficiary. The employee usually has a period of 31 days after terminating from the group in order to exercise the conversion option. During this time, the employee is still covered under the original group policy.

Which of the following is true regarding a temporary insurance producer's license? a) It is available to individuals in the process of completing their prelicensing requirements. b) It allows a resident producer to do business temporarily in another state. c) It requires passing a limited examination. d) It may not exceed 180 days.

D) It may not exeed 180 days A temporary insurance producer's license is valid for 180 days, and it could only be issued in certain circumstances if the Commissioner determines that it's in the public interest.

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report a) Are entitled to obtain a copy of the report from the party who ordered it. b) Must be advised that a copy of the report is available to anyone who requests it. c) May sue the reporting agency in order to get inaccurate data corrected. d) Must be informed of the source of the report.

D) Must be informed of the source of the report Under the Fair Credit Reporting Act, if an insurance policy is declined or modified because of information contained in a consumer report, the consumer must be advised and provided with the name and address of the reporting agency.