Stimulate Your Exam Life and Health
#56. Which of the following dental insurance categories would cover the filling of cavities? a) Routine and major restorative care b) Orthodontic care c) This type of work is not covered. d) Routine and preventative maintenance
A Routine and major restorative care covers the costs of dental work, such as oral surgery, bridges, dentures, and cavity treatment. Routine and preventative maintenance covers routine dental check-ups only.
#45. Which of the following statements is TRUE about a policy assignment? a) It authorizes an agent to modify the policy. b) It transfers rights of ownership from the owner to another person. c) It is the same as a beneficiary designation. d) It permits the beneficiary to designate the person to receive the benefits.
B The policyowner may assign a part of the policy (collateral assignment) or the entire policy (absolute assignment).
#71. Which of the following Life Insurance policies would be considered interest sensitive? a) Adjustable life b) Whole life c) Increasing term d) Universal life
D As well as being a flexible premium policy, universal life is also an interest-sensitive policy. The insurer credits the cash value in the policy with a current (nonguaranteed) interest rate and backs the cash value with a contract (lower guaranteed) rate of interest.
#133. All of the following are beneficiary designations EXCEPT a) Contingent. b) Primary. c) Specified. d) Tertiary.
C Beneficiary designations determine the order in which benefits will be paid: primary or contingent, which includes secondary and tertiary.
#80. Health plan issuers are prevented from collecting genetic information for underwriting purposes or limited in their requests for genetic tests by a) The Genetic Information and Nondiscrimination Act. b) Individual insurers' underwriting standards. c) Underwriters' risk classification standards. d) The Genetic Anti-Discrimination Act
A Genetic Information and Nondiscrimination Act of 2008 (GINA) limits what requests a health plan issuer can make regarding genetic testing, and prohibits the collection of genetic information for underwriting purposes.
#137. Which of the following best describes what the annuity period is? a) The period of time during which accumulated money is converted into income payments b) The period of time from the accumulation period to the annuitization period c) The period of time during which money is accumulated in an annuity d) The period of time from the effective date of the contract to the date of its termination
A The annuity period is the time during which accumulated money is converted into an income stream.
#90. All of the following would be different between qualified and nonqualified retirement plans EXCEPT a) Taxation on accumulation b) Taxation of withdrawals c) Taxation of contributions d) IRS approval requirements
A Taxation on accumulation is deferred in both types of plans. The rest of the characteristics would differ.
#24. All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT a) The policy is owned by the company. b) Any type of insurance policy may be used. c) The employer pays a bonus to a selected employee to fund the policy. d) It is considered a nonqualified employee benefit.
A The policy is owned by the employee
#53. A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision? a) Assignment b) Automatic premium loan c) Waiver of premium d) Incontestability period
B This provision is not required, but is commonly added to contracts with a cash value at no additional charge. This is a special type of loan that prevents the unintentional lapse of a policy due to nonpayment of the premium.
#66. How are contributions to a tax-sheltered annuity treated with regards to taxation? a) They are taxed as income for the employee. b) They are taxed as income for the employee, but are tax free upon withdrawal. c) They are not included as income for the employee, but are taxable upon distribution. d) They are never taxed.
C Funds contributed are excluded from the employee's current taxable income, but are taxable upon withdrawal.
#113. Which of the following is TRUE regarding the annuity period? a) During this period of time the annuity payments grow interest tax deferred. b) It is also referred to as the accumulation period. c) It is the period of time during which the annuitant makes premium payments into the annuity. d) It may last for the lifetime of the annuitant.
D The "annuity period" is the time during which accumulated money is converted into an income stream. It may last for the lifetime of the annuitant or for a shorter specified period of time depending on the benefit payment option selected.
#15. Which is true about a spouse term rider? a) Coverage is allowed for an unlimited time. b) The rider is decreasing term insurance. c) Coverage is allowed up to age 75. d) The rider is usually level term insurance.
D The spouse term rider allows a spouse to be added for coverage. It is available for a limited amount of time, typically expiring at age 65. A spouse term rider (just like any other insured rider) is usually level term insurance.
#20. The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount? a) 65 b) 70 1/2 c) 90 d) 100
D Whole life insurance policies mature when the insured reaches the age of 100. The cash value at that time is scheduled to equal the face amount; therefore, when the insurance company pays the face amount, it also, in effect, pays the cash value.
#91. A policy which covers medical costs related to a specific condition is called a a) Condition-Specific Policy. b) Specific Condition Policy. c) Limited Coverage Policy. d) Dread Disease Policy.
D Dread Disease policies cover medical expenses for a particular medical condition, such as cancer or heart disease.
#52. Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose a) Section 457 Deferred Compensation Plan. b) 403(b) plan. c) 401(k) plan. d) HR-10 (Keogh Plan).
D HR-10 (Keogh Plans) are plans specifically for self-employed and their employees.
#148. What is the goal of the HMO? a) Providing free health services b) Limiting the deductibles and coinsurance to reduce costs c) Providing health services close to home d) Early detection through regular checkups
D The goal of the HMO is early detection so members are encouraged to participate in regular checkups. In this way the HMO hopes to catch disease in its earliest stages when treatment has the greatest chance for success.
#101. During partial withdrawal from a universal life policy, which portion will be taxed? a) Cash value b) Principal c) Loan d) Interest
D During the withdrawal, the interest earned on the withdrawn cash value may be subject to taxation.
#9. A Return of Premium term life policy is written as what type of term coverage? a) Increasing b) Decreasing c) Renewable d) Level
A Return of premium (ROP) life insurance is an increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid.
#135. All of the following statements about equity index annuities are correct EXCEPT a) They invest on a more aggressive basis aiming for higher returns. b) The annuitant receives a fixed amount of return. c) They have a guaranteed minimum interest rate. d) The interest rate is tied to an index such as the Standard & Poor's 500.
B Equity indexed annuities have a guaranteed minimum interest rate, so while they are aggressive in nature, the annuitant will not have to worry about receiving less than what the minimum interest rate would yield.
#13. A 35-year-old spouse of the insured collects early distributions from her husband's retirement plan as a result of a divorce settlement. What penalties, if any, will she have to pay? a) 15% penalty tax b) Age-based penalty stipulated in the contract c) No penalties d) 10% penalty tax
C Under normal circumstances, a 10% penalty tax is imposed on distributions made before the age of 59½. There are exceptional circumstances, however, that are exempt from the penalty tax, including distributions made as a result of a divorce decree.
#106. Which of the following would be considered an unfair claims settlement practice? a) Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered b) Requesting the insured to submit a signed proof of loss statement, after the insured has already verbally advised the insurer of the claim c) Requesting the insured swear under oath concerning the facts of the claim d) Delaying the settlement of a claim for 30 days in order for the insured to conduct an investigation
A This act is a violation as defined in the Unfair Settlement Practices.
#82. Which of the following statements about the reinstatement provision is true? a) It guarantees the reinstatement of a policy that has been surrendered for cash. b) It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated. c) It permits reinstatement within 10 years after a policy has lapsed. d) It provides for reinstatement of a policy regardless of the insured's health.
B Upon policy reinstatement, the policyowner will be required to pay all back premiums plus interest, and may be required to repay any outstanding loans and interest.
#125. Variable Whole Life insurance is based on what type of premium? a) Graded b) Level fixed c) Increasing d) Flexible
B Variable Whole Life insurance is a level fixed premium investment-based product.
#150. Traditional IRA contributions are tax deductible based on which of the following? a) Owner's age b) IRA limit c) Owner's income d) How long the plan has been in force
C Traditional IRA contributions are tax deductible, but may be limited if the owner's income exceeds a certain level
The minimum interest rate on an equity indexed annuity is often based on a) The annuitant's individual stock portfolio. b) The insurance company's general account investments. c) An index like Standard & Poor's 500. d) The returns from the insurance company's separate account.
C Equity indexed annuities are not securities, but they invest on a relatively aggressive basis to aim for higher returns. Like a fixed annuity, the equity indexed annuity has a guaranteed minimum interest rate. Interest rates on equity indexed annuities are often tied to a familiar index, such as the Standard and Poor's 500.
#68. Which of the following statements concerning buy-sell agreements is true? a) Premiums paid are deductible as a business expense. b) Benefits received are considered income taxable. c) Buy-sell agreements pay in the event of a medical emergency. d) Buy-sell agreements are normally funded with a life insurance policy.
D A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. Buy-sell agreements are normally funded with a life insurance policy.
#22. In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met? a) The insured must have first been hospitalized for 3 consecutive days. b) The insured must have a Medicare supplement insurance policy. c) There is no benefit provided under Medicare Part A for skilled nursing care. d) The insured must cover daily copayments.
A Part A covers the cost of care in a skilled nursing facility as long as the patient was first hospitalized for 3 consecutive days, and the services are medically necessary and only up to amounts deemed.
#34. Which of the following is NOT true regarding the accumulation period of an annuity? a) It would not occur in a deferred annuity. b) It is the period during which the annuity payments earn interest. c) It is the period over which the owner makes payments into an annuity. d) It is also known as the pay-in period.
A The "accumulation period" is the period of time over which the annuity owner makes payments (premiums) into an annuity. This is the period of time during which the payments earn interest and grow tax deferred (which would be the case in a deferred annuity).
#77. Which of the following is NOT true of life settlements? a) The seller must be terminally ill. b) They could be used for a key person coverage. c) They could be sold for an amount greater than the current cash value. d) They involve insurance policies with large face amounts.
A With Life Settlements, unlike with viatical settlements, the seller does not need to be terminally ill. They usually involve life insurance policies with a face amount of $250,000 or more, "key-person" coverage, corporate owned policies, or policies representing excess coverage that is no longer needed, and could be sold for an amount greater than the current cash value.
#87. According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that? a) Gold b) Platinum c) Bronze d) Silver
B Bronze level benefit plans pay 60% of expected health care costs; silver level plans pay 70%; gold level plans pay 80%, and platinum level plans pay 90%.
#38. Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value? a) Decreasing term life b) Variable universal life c) Increasing term life d) Credit term life
B Variable universal life policies have cash value, so they allow policy loans. Term insurance policies do not have cash value.
#27. What process will the insurance company use to monitor the insured's hospital stay to make sure that everything is proceeding according to schedule? a) Corridor deductible b) Preventive review c) Concurrent review d) Prospective review
C Under the concurrent review process, the insurance company will monitor the insured's hospital stay to make sure that everything is proceeding according to schedule and that the insured will be released from the hospital as planned.
#149. Which of the following is NOT a characteristic or a service of an HMO plan? a) Encouraging early treatment b) Providing care on an outpatient basis c) Contracting with insurance companies d) Providing free annual checkups
C HMOs seek to identify medical problems early by providing preventive care. They encourage early treatment and whenever possible provide care on an outpatient basis rather than admitting the member into the hospital. Contracts are between the insured and the HMO, not an insurance company.
#146. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become a) Smaller. b) Older. c) More active. d) Larger.
D According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Insurers use this law in order to predict certain types of losses and set appropriate premiums.
#103. Producers must complete 24 continuing education hours prior to license renewal every a) 3 years. b) 5 years. c) Year. d) 2 years.
D All insurance producers and brokers must successfully complete a minimum of 24 continuing education course credit hours every 2 years, prior to license renewal.
#109. In order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits? a) 7 days b) 10 days c) 30 days d) 60 days
D Under COBRA, terminated employees must exercise extension of benefits within 60 days of separation from employment.
#110. Which of the following is a key distinction between variable whole life and variable universal life products? a) Variable universal life is regulated solely through FINRA. b) Variable whole life allows policy loans from the cash value. c) Variable universal life has a fixed premium. d) Variable whole life has a guaranteed death benefit.
D Variable universal life insurance may or may not have a minimum death benefit, unlike variable whole life insurance which guarantees a minimum death benefit.
#142. The Pregnancy Discrimination Act specifically prohibits pregnancy discrimination by employers with the minimum of how many employees? a) 15 b) 30 c) 45 d) 100
A Employers with 15 or more employees are prohibited from pregnancy discrimination.
#44. Which of the following can surrender a deferred annuity contract? a) A deferred annuity cannot be surrendered. b) Only the annuity owner c) Only the insurance company for nonpayment of premiums d) The beneficiary after the owner's death
B If the need arises, a deferred annuity contract may be surrendered only by the annuity owner. At surrender the owner receives the value of the annuity minus a surrender charge.
#127. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? a) Effect of inflation on income over time. b) Predicted needs of the family after the insured's death. c) Insured's current and future income. d) Insured's annual expenses.
B The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. Predicted needs of the family after the insured's death are used in the needs approach.
#121. J is covered under 2 group health insurance plans, his own and his wife's. After a loss, he submitted a claim to both plans. After 30 days, the plans still have not agreed on the order of the benefits to be paid. Which of the following needs to happen immediately? a) The claim will be turned over to the Department of Insurance. b) Since the primary plan hasn't paid, the secondary plan is obligated to pay the benefit in full. c) The Commissioner will order the primary plan to pay the benefit in full. d) Each plan must pay the benefit in equal shares.
D If plans cannot agree on the order of benefits within 30 days of the receipt of all necessary claim information, these plans will immediately pay the claim in equal shares.
#48. All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT a) Employer contributions are tax deductible as ordinary business expense. b) Funds accumulate on a tax-deferred basis. c) Employee and employer contributions are not counted as income to the employee for income tax purposes. d) At distribution, all amounts received by the employee are tax free.
D Funds in a qualified plan accumulate on a tax-deferred basis; however, at distribution any amount received by the employee will be treated as ordinary income for tax purposes.
#57. An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date? a) The date of policy delivery b) The date of issue c) The date of application d) The date of medical exam
D If the company acknowledges receipt of the premium with a conditional receipt, the policy is in effect on the date of the application or the date of the medical exam (whichever is later), provided that the applicant is found insurable at the rate applied for.
#62. Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs? a) HMOs do not pay for services covered by Medicare. b) Medicare Advantage is Medicare provided by an approved HMO only. c) All HMOs and PPOs charge premiums beyond what is paid by Medicare. d) HMOs may pay for services not covered by Medicare.
D The advantages of an HMO or PPO for a Medicare recipient may be that there are no claims forms required, almost any medical problem is covered for a set fee so health care costs can be budgeted, and the HMO or PPO may pay for services not usually covered by Medicare or Medicare supplement policies, such as prescriptions, eye exams, hearing aids, or dental care.
#99. What is the purpose of the rehabilitation benefit in disability insurance? a) To compensate the insured for the lost income b) To refund the insured's premium paid during the disability c) To help the insured recover from a disability d) To cover the expenses of retraining the insured to return to work
D The rehabilitation benefit will cover a portion of the cost for the insured to enroll in a retraining program that will help the insured to return to work after a disability.
#76. All of the following are differences between individual and group health insurance EXCEPT a) Individual insurance does not require medical examinations, while group insurance does require medical examinations. b) In individual policies, the individual selects coverage options, while in a group plan all employees are covered for the same coverage which is chosen by the employer. c) Individual coverage can be written on an occupational or nonoccupational basis, while group plans cover only nonoccupational. d) Individual policies are renewable at the option of the insured, while group usually terminates when the individual leaves the group.
A In individual coverage, policies are issued based upon individual underwriting. In group plans, everyone is covered for the same coverage and there is no individual underwriting selection.
#17. All of the following are true regarding insurance policy loans EXCEPT a) Policy loans can be made on policies that do not accumulate cash value. b) The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies. c) The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. d) Policyowners can borrow up to the full amount of their whole life policy's cash value.
A The policy loan option is only found in policies that contain cash value.
#12. In a group prescription drug plan, the insured typically pays what amount of the drug cost? a) Copayment b) None c) Full amount until a deductible is met, then nothing for the rest of the year d) Full amount until a deductible is met, then a small copay
A Under a group drug prescription plan, the insured typically pays a copay, and the insurer pays the balance. There is generally a limit to the quantity of drugs that can be purchased at one time.
#128. An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply? a) Coverage will apply, but will be reduced by 50%. b) No coverage will apply, since the injury could have been foreseen. c) No coverage will apply, since disability income policies cover sickness only. d) Coverage will apply since the break was accidental.
B An accidental means clause states that if the insured meant to do whatever caused their injury, no coverage applies since the resulting injury should have been foreseen.
#112. Twins brother and sister each purchased a retirement annuity. When they retired at the same time, each selected the life income option. Both have similar life styles and are in good health. Which of the following is true with respect to their monthly annuity payments? a) The man's payments will be larger. b) The woman's payments will be larger. c) The payments will be based on their health at the time the payments begin. d) Because they are the same age, they will receive the same payments.
A Annuities use mortality tables to determine the amount of money needed in retirement. Because the life expectancy of women is greater, the woman's payments in this particular example will be smaller since they need to last longer.
#3. The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? a) 1 year b) 2 years c) 5 years d) 7 years
B The incontestability clause prevents an insurer from denying a claim due to statements in the application after the policy has been in force for 2 years, even if there has been a material misstatement of facts or concealment of a material fact.
#42. What is the purpose of the Utah Individual and Small Employer Health Insurance Applications? a) To allow people or businesses to submit a single application to several insurers b) To create a single database of all applicants for health insurance policies in Utah c) To give individuals and small employers better rates for comparable health insurance policies d) To ensure that all information submitted to insurers is correct
A Because all insurers in Utah must accept Utah Individual and Small Employer Health Insurance Applications, it makes it easier for people to apply for insurance from several different companies by using a single application.
#131. Following an injury, a policyowner covered under Medicare Parts A & B was treated by her physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-pocket? a) 20% of covered charges above the deductible b) 80% of covered charges above the deductible c) All reasonable charges above the deductible according to Medicare standards d) A per office visit deductible
A After the deductible, Part B will pay 80% of covered expenses, subject to Medicare's standards for reasonable charges.
#104. A man's physician submits claim information to his insurer before she actually performs a medical procedure on him. She is doing this to see if the procedure is covered under the patient's insurance plan and for how much. This is an example of a) Prospective review. b) Concurrent review. c) Claims-delayed treatment. d) Suspended treatment.
A Under the prospective review or precertification provision, the physician can submit claim information prior to providing treatment to know in advance if the procedure is covered under the insured's plan and at what rate it will be paid.
#115. A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? a) The amount distributed is subject to ordinary income tax. b) The amount of the distribution is reduced by the amount of a 20% withholding tax. c) No taxes are due since the plan participant is over age 59 1/2. d) There is a 10% early withdrawal penalty.
B Distributions from 401(k) plans are taxable as ordinary income in the year of the distribution. However, if the distribution is rolled over to a Traditional IRA, taxes are deferred until the required minimum IRA distributions begin. Since this client actually took a distribution (instead of making a trustee-to-trustee roll over), the distribution is subject to 20% withholding tax.
#141. Which of the following factors would be an underwriting consideration for a small employer carrier? a) Health status b) Medical history of the employees c) Percentage of participation d) Claims experience
C Coverage under a small employer health benefit plan is generally available only if at least 75% of eligible employees elect to be covered.
#64. If the annuitant dies during the accumulation period, who will receive the annuity benefits? a) The annuitant's estate b) The beneficiary c) The annuity owner d) The insurance company
B If the annuitant dies during the accumulation period, the beneficiary receives benefits from the annuity: either the amount paid into the plan or the cash value - whichever is greater.
#36. Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending? a) 2 examinations per week of the claim processing period b) Unlimited c) None at all d) 1 examination per week of the claim processing period
B The Physical Exam and Autopsy provision allows the insurer to examine the insured as much as is reasonably necessary while the claim is being processed, provided that the insurer pays the expenses.
#120. When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees a) To renew the policy indefinitely. b) To renew the policy until the insured has reached age 65. c) To charge a lower premium every year the policy is renewed. d) Not to change the premium rate for any reason.
B The guaranteed renewable provision is similar to the noncancellable provision, with the exception that the insurer can increase the policy premium on the policy anniversary date. As with the noncancellable policy, coverage is generally not renewable beyond the insured's age 65.
#40. A hospital indemnity policy will pay a) Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles. b) A benefit for each day the insured is in a hospital. c) Income lost while the insured is in the hospital. d) All expenses incurred by the stay in the hospital.
B Hospital confinement indemnity policies pay specific amounts that depend on the amount of time the insured is confined to the hospital.
#18. An insured was mobilized into the U.S. armed forces, which caused his health insurance policy to lapse due to nonpayment of premium. When he was released from active duty 5 months later, he wanted to reinstate his insurance policy. How many days does the insured have to apply for reinstatement of the same coverage? a) 90 days b) 100 days c) 180 days d) 30 days
C Insurers may not refuse to reinstate an insured or any dependents whose coverage lapsed due to the insured's mobilization into the United States armed forces - provided an application is made within 180 days of release from active duty.
#50. Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death? a) The wife of the deceased insured b) The former wife of the deceased insured c) A minor son of the insured d) A business partner of the insured
C Because a minor does not have the legal capacity to release the insurer from further obligation, benefits normally have to be passed through a guardian or trustee.
#47. Any occupation disability typically means that individuals are unable to perform the duties of the occupation for which they are suited by all of the following EXCEPT a) Training. b) Experience. c) Preference. d) Education.
C By definition used by most insurers, any occupation disability typically means that an individual is unable to perform the duties of the occupation for which they are suited by education, training, and experience.
#59. The LEAST expensive first-year premium is found in which of the following policies? a) Increasing Term b) Decreasing Term c) Level Term d) Annually Renewable Term
D Annually renewable term is the purest form of term insurance. The death benefit remains level, but the premium increases each year with the insured's attained age. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. In level term and increasing term policies, the premium also remains level for the term of the policy. Therefore, in the other types of level policies, the first-year premium would not be different from any other year.
#79. The primary eligibility requirement for Medicaid benefits is based upon a) Number of dependents. b) Need. c) Whether the claimant is insurable on the private market. d) Age.
B Medicaid is a program operated by the state, with some federal funding, to provide medical care for those in need.
#100. Which term describes an individual who is domiciled and licensed as a resident producer in a state other than Utah? a) Unauthorized producer b) Limited lines producer c) Nonresident producer d) Foreign producer
C A nonresident producer is an individual who is domiciled and licensed as a resident producer in a state other than Utah.
#123. Which of the following is NOT covered by Health Maintenance Organizations (HMOs)? a) Routine physicals b) Well-baby care c) Elective services d) Immunizations
C HMOs emphasize preventive health care as a method of reducing medical expenses by early detection of health problems before they may require more costly treatment.
#31. Which type of care re-establishes functional use to natural teeth? a) Functionality b) Repair c) Restorative d) Fillings
C Restorative care re-establishes functional use to natural teeth, such as the application of fillings and crowns.
#102. If a health care plan has characteristics of an HMO and PPO, what type of plan is it? a) HIPAA b) MET c) FSA d) POS
D Point-of-Service (POS) plans are a combination of HMOs and PPOs.
#75. Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level? a) Surrender b) Nonforfeiture c) Annuitization d) Bail-out
D Some annuity contracts contain a bail-out provision. This provision allows the owner to surrender the annuity without charge if interest rates drop a specified amount within a certain timeframe.
#73. As it pertains to group health insurance, COBRA stipulates that a) Retiring employees must be allowed to convert their group coverage to individual policies. b) Terminated employees must be allowed to convert their group coverage to individual policies. c) Group coverage must be extended for terminated employees up to a certain period of time at the employer's expense. d) Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.
D COBRA requires employers with 20 or more employees to continue group medical insurance for terminated workers and dependents for up to 18 months to 36 months. The employee can be required to pay up to 102% of the coverage's premium.