Readiness Exam 1

Which of the following would be eligible to become a life settlement broker?

A licensed resident life insurance producer

Each insurer that sells, solicits, or negotiates any form of limited line credit insurance must provide to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance:

A program of instruction that may be approved by the Commissioner

An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA:

Within 60 days

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?

$2,500

In some cases, in order for an insurer to legally disclose privileged information to appropriate sources, the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of information?

1 year

How soon must an insurer send Medicare Supplement advertisements to the Commissioner before they ae distributed?

15 days

An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a Long-Term Care (LTC) facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT:

Acute

Who acts on behalf of the principal?

Agent

All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT:

An association of 35 people

Conrad receives $50,000 from a $100,000 Accidental Death and Dismemberment policy as a result of the loss of his left arm in an accident. Conrad has received the:

Capital Amount

Which of the following is NOT a typical type of Long-Term Care coverage?

Child day care

What is the advantage of an open enrollment period to the insured?

Coverage will be provided regardless of the insured's health status

An employee has earned 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

Currently insured

Which of the following statements is INCORRECT regarding group health insurance?

Each individual must be accepted into or rejected by a group policy.

Which type of authority is found in the agent's contract?

Express

All of the following are places where care can be administered for a medical plan EXCEPT:

Eye centers

An insured has a routine exam, blood work, and a follow-up appointment with a specialist. The insured receives a bill for each service provided. What type of plan does the insured have?

Fee for service

Under HIPAA portability, which of the following are NOT protected under required benefits?

Groups of one or more

Which act was introduced to reduce the cost of health care by utilizing preventive care?

HMO Act of 1973

Which of the following is NOT correct concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible

Which of the following is NOT a crucial factor in health insurance underwriting?

Income

An insurance agent who represents multiple companies on a nonexclusive basis and earns commissions on personal sales is working in what kind of marketing system?

Independent Agency System

Who makes up the Medical Information Bureau?

Insurance companies

Which health insurance provision ensures that multiple policies that provide the same benefits on an expense-incurred basis pay a proportionate share of claim?

Insurance with Other Insurers

All of the following must sign an application for health insurance EXCEPT the:

Insurer

Which of the following is NOT true regarding a noncancellable policy?

Insurer can increase the premium above what is state in the policy if claims experience is greater than expected

An employee is on an extended leave of absence when the employer group health plan changes from one carrier to another. Before the employee returns to work, what might the employee most likely notice?

Limited coverage

An employee may enroll in an employer's group health plan when he/she initially becomes eligible without proof of insurability. Should he/she enroll at another time, evidence of insurability is required EXCEPT at:

The annual open enrollment period

Which of the following statements is INCORRECT?

Medicare and Medigap policies provide coverage for long-term custodial or nursing home care

Under the Affordable Care Act, when would pregnancy be considered a pre-existing condition?

Never

What is another term for a health insurance policy subscriber?

Participant

Which of the following is consideration on the part of an insurer?

Paying a claim

Who determines if a particular group of employees can be excluded from group health coverage?

The employer

What is the only difference between blanket insurance and group health insurance?

The insured members are not named

Which of the following statements is INCORRECT?

The insurer does not have the right to conduct an autopsy

All of the following are characteristics of group health insurance plans EXCEPT:

The parties that hold a group health insurance contract are the employees and the employer

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the application

Medicare is a health insurance program for all of the following individuals EXCEPT:

Those with low income and low assets

What is the purpose of a benefit schedule?

To state what and how much is covered in the plan