1 insurance'

#85. Which of the following statements concerning buy-sell agreements is true? a) Benefits received are considered income taxable. b) Buy-sell agreements pay in the event of a medical emergency. c) Buy-sell agreements are normally funded with a life insurance policy. d) Premiums paid are deductible as a business expense.

c) Buy-sell agreements are normally funded with a life insurance policy.

Which of the following levels of care in long-term care policies specifically includes assistance with activities of daily living? a) Intermediate care b) Personal care c) Respite care d) Hospice care

personal care

#128. What term is used to describe when the medical caregiver provides services to only members or subscribers of a health organization, and contractually is not allowed to treat other patients? a) Corridor b) Probationary c) Open panel d) Closed panel

d) Closed panel When the medical caregiver provides services to only member or subscribers of a health organization, and contractually is not allowed to treat other patients, it is referred to as closed panel.

#143. The protection of the insurer from adverse selection is provided in part by a) A reduction in coverage. b) A profitable distribution of exposures. c) Reducing costs. d) A drop in applicants.

b) A profitable distribution of exposures. The profitable distribution of exposures, which balances poor risks and preferred risks with standard risks in the middle, protects insurers from adverse selection.

#127. In life insurance policies, cash value increases a) Grow tax deferred. b) Are income taxable immediately. c) Are taxed annually. d) Are only taxed when the owner reaches age 65.

a) Grow tax deferred.

#44. HICAP offers services in the following areas EXCEPT a) Legal assistance. b) Sales of LTC policies. c) Consumer counseling. d) Consumer advocacy.

sales of LTC policies

Who chooses a primary care physician in an HMO? A referral physician The individual member HMO subscribers do not have a primary care physician The insurer

the individual member

#10. If an insured is not required to pay a deductible, what kind of coverage does he/she have? a) Comprehensive b) First dollar c) Corridor d) Major medical

first dollar

#88. Which of the following statements is correct? a) Medicare will cover nursing home care if it is part of the treatment for a covered illness. b) Care needed because of aging is covered by Medicare but not by Medicare supplements. c) Care needed because of aging is covered by Medicare. d) Medicare does not pay for nursing home care in any case.

a) Medicare will cover nursing home care if it is part of the treatment for a covered illness.

Which of the following elements in an Indexed Universal Life policy is tied to an index? a) Premiums b) Cash values c) Death benefit d) Face amount

cash values

#142. What is a share of cost? a) A monthly payment to the Medi-Cal by the insured b) The amount paid by Medi-Cal for covered medical bills c) An annual copayment by the insured for the covered medical services d) The amount an individual has to pay for medical expenses before Medi-Cal will cover the rest

d) The amount an individual has to pay for medical expenses before Medi-Cal will cover the rest If an individual's income exceeds the Medi-Cal limit for his/her family size, that individual will have to pay a certain amount, called share of cost (SOC), in the month when medical expenses occurred.

#79. Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)? a) At any time as necessary b) Within 3 months of the cause of the change c) No changes can be made once the policy is issued d) During the open enrollment period

during an open enrollment period

#52. Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as a) Avoidance. b) Misrepresentation. c) Concealment. d) Fraud.

fraud

#39. All the factors are FALSE when used to provide data and statistics to an insurer in order to project losses and the subsequent cost of insuring risks in a group disability policy, EXCEPT a) Experience, Expenses and Interest of a particular carrier's premiums. b) The number of eligible participants in the group. c) The number of group carriers. d) Stability, Price, Longevity with a particular carrier.

stability, price , longevity with a particular carrier Stability, Price and Longevity are all factors used to determine losses and cost of insuring risks in a group (or individual) policy

#78. The types of perils which are usually excluded from coverage and which do not allow for an accurate pattern of predictability and will adversely slant the law of large numbers is known as a) Catastrophic Losses. b) Moral Hazards. c) Morale Hazards. d) Insurable Interests.

catastrophic losses

#83. A Medicare SELECT policy does all of the following EXCEPT a) Make full and fair disclosure in writing of the provisions, restrictions, and limitations of the Medicare SELECT policy to each applicant. b) Provide payment for full coverage under the policy for covered services not available through network providers. c) Provide for continuation of coverage in the event that Medicare SELECT policies are discontinued due to the failure of the Medicare SELECT program. d) Prohibit payment for regularly covered services if provided by non-network providers.

d) Prohibit payment for regularly covered services if provided by non-network providers.

#16. If a loss occurs, insurance policies pay the proceeds to a) Beneficiary b) Applicant c) Insurer d) Agent

beneficiary