CT Exam
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of - 5% - 10% - 17.5% - 20%
10%
Typically, states will permit the grouping of two or more small employers in the same industry for obtaining group health insurance at a favorable rate. This grouping of employers is known as a multiple employer - welfare association - trust - consortium - alliance
trust
How long is medical expense insurance normally written for? - 1 year - 2 years - 3 years - 4 years
1 year
COBRA extends coverage for a surviving spouse but at a rate not more than _____ of the group premium. - 25% - 50% - 75% - 102%
102%
Within _______ month(s) of passing the Connecticut producer licensing exam, an individual must apply for and be issued a license or be required to retake the exam. - 1 - 3 - 6 - 12
12
In Connecticut, a temporary license may be issued for a period not to exceed _____ days - 30 - 45 - 90 - 180
180
An insured must notify an insurer of a medical claim within how many days after an accident? - 10 - 20 - 30 - 40
20
Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death? - 30-year endowment - 30-year increasing term - 30-year decreasing term - 30-year whole life
30-year decreasing term
Traditional individual retirement annuity (IRA) distributions must start by - Age 59 1/2 - Age 65 - April 1st of the year following the year the participant attains age 59 1/2 - April 1st of the year following the year the participant attains age 70 1/2
April 1st of the year following the year the participant attains age 70 1/2
Accident and health insurance claim handling is made more convenient to the insured by utilizing - Inspection reports - Attending physicians statements - MIB statements - Assignment of benefits
Assignment of benefits
ABC Corporation purchases and is beneficiary of an individual disability income insurance policy on a key employee. Which of the following statements is true? - Premiums paid by the company are tax-deductible - Benefits are taxable to the key employee - Benefits are received tax-free by the company - Premiums paid by the company are tax-deductible to the key employee
Benefits are received tax-free by the company
Which of these is NOT considered to be a cost connected with an individual's death? - Funeral expense - Tax liability - Business expenses - Probate costs
Business expenses
A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy? - Key person - Franchise disability - Business overhead expense - Disability income
Business overhead expense
Which of the following types of insurers limits the exposures it writes to those of its owners? - Restricted insurer - Limited insurer - Confined insurer - Captive insurer
Captive insurer
Prepaid dental plans differ from most other types of dental plans in what way? - X-rays and teeth cleanings are fully covered - Possible exclusion of pre-existing conditions - Closed panel of dentists can only be used - Deductibles may have to be met
Closed panel of dentists may only be used
Which of the following is considered to be an example of unfair restraint of competition? - Sliding - Subrogation - Coercion - Defamation
Coercion
In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange? - Offer individual, unique formats for consumers to evaluate different health plan options - Certify that a health plan is qualified to be offered on the exchange - Contact the employer if an employee stops coverage under a plan offered in the exchange - Resolve and verify an applicant's inconsistent or incomplete information
Contact the employer if an employee stops coverage under a plan offered in the exchange
All of these are used to prevent adverse selection in a group dental plan EXCEPT - Provide evidence of insurability - Probationary periods - Waiting periods - Decreased employee participation
Decreased employee participation
Health providers are compensated by a preferred provider organization (PPO) for normal dental procedures by what means? - Usual and customary fee schedules - Increased fee schedules - Decreased fee schedules - Indemnity fee schedules
Decreased fee schedules
Health providers are compensated by a preferred provider organization (PPO) for normal dental procedures by what means? - Usual and customary fee schedules - Increased fee schedules - Decreased fee schedules - Indemnity fee schedules
Decreased fee schedules
What kind of life policy typically offers mortgage protection? - Whole life - Decreasing term - Increasing term - Level term
Decreasing term
Which of the following is generally a form of group credit life insurance? - Decreasing term insurance - Increasing term insurance - Level term insurance - Whole life insurance
Decreasing term insurance
For purposes of disability income insurance, earned income would include all of the following EXCEPT - Salary - Commissions - Bonus - Dividends
Dividends
Which parties are directly involved in a group accident and health insurance contract? - Insurer and employees - Insurer, employees, and employer - Employer and insurer - Employer and employees
Employer and insurer
Long Term Care policies will usually pay for eligible benefits using which of the following methods? - Delayed - Fee for service - Expense incurred - Respite
Expense incurred
Which of the following are used by most insurers when determining the premiums for large groups? - Large number rating - Group rating - Area rating - Experience rating
Experience rating
When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? - Consumer report - Eye examination - Urine sample - Blood sample
Eye examination
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions? - Completing a court-ordered prison sentence - Completing a court-ordered probation period - Paying a fine of up to $50,000 - Given written consent by the state insurance regulatory agency
Given written consent by the state insurance regulatory agency
An accident and health plan that typically covers ONLY the services of approved providers is called a(n) - HMO plan - POS plan - PPO plan - Major medical plan
HMO plan
Which of these may encourage adverse selection in an indemnity dental plan? - Having waiting periods - Having multiple or periodic open enrollment periods - Having probationary periods - Proving evidence of insurability
Having multiple or periodic open enrollment periods
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? - 10% tax penalty for early withdrawal - Capital gains tax - Income tax and penalty tax - Ordinary income tax
Income tax and penalty tax
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT - Acquire a statement of good health signature - Gather the initial premium - Review policy with applicant - Leave a conditional receipt with client
Leave a conditional receipt with client
What type of premiums are associated with individual mortgage protection life insurance policies? - Level premiums - Flexible premiums - Modified premiums - Decreasing premiums
Level premiums
What is another term used for a "pure" life annuity? - Annuity certain - Immediate annuity - Life income - Joint annuity
Life income
Which of the following financial products creates an instant estate, no matter when the date of death? - Mutual Funds - Life insurance - Certificate of deposit - Deferred annuity
Life insurance
How can a group dental insurer discourage adverse selection? - Allow pre-existing conditions - Eliminate deductibles and coinsurance - Extend open enrollment period - Limit the duration of Coverage
Limit the duration of coverage
Respite Care coverage is typically found in a(n) - HMO - PPO - Long Term Care Policy - Major Medical Expense Policy
Long Term Care policy
What is considered a valid reason for an insurer's refusal to pay policy proceeds directly to a minor? - Minors are not capable of having insurable interest - Minors are normally not capable of handling money in a reasonable manner - Minors are usually not capable of paying for the insurance premium - Minors cannot legally enter into a contract
Minors are normally not capable of handling money in a reasonable manner
Which of the following is considered to be an unfair claims settlement practice? - Using intimidation in order to restrain or monopolize the business of insurance - Misrepresenting pertinent policy provisions relating to coverage after a loss - A producer who shares commissions with a client - Requiring a time limit for submitting a claim
Misrepresenting pertinent policy provisions relating to coverage after a loss
Life insurance premiums are computed on what three factors? - Mortality, interest, dividends - Morbidity, interest, expenses - Mortality, interest, expenses - Morbidity, interest, dividends
Mortality, interest, expenses
Which of the following is a TRUE statement regarding universal life insurance? - Death benefits are normally taxable - Policy loans are not permitted - Premiums or face amount cannot be changed - Policy indicates how much of each premium is used towards company expenses
Policy indicates how much of each premium is used towards company expenses
Home health care benefits typically do NOT include coverage for - Nursing care - Wheelchairs - Physical therapy - Prescription medication
Prescription medication
Which of these is NOT a standard provision in qualified long-term care policies sold in Connecticut? - 30-day free look period - Guaranteed renewability - Prior hospitalization - Provide minimum coverage for 12 consecutive months
Prior hospitalization
Jim is covered under a disability income policy. He is hurt while engaged in an occupation that is more hazardous than the occupation he specified in the policy. What action will the insurer likely take? - Decrease the premium - Reduce the benefit level - Increase the benefit level - Increase the premium
Reduce the benefit level
A life insurance policy owner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen? - Paid-up additions - Accumulation at interest - 1-year term - Reduction of premium payment
Reduction of premium payment
If one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission? - Only the producer providing the referral - The commission will likely be shared between the two producers - Only the producer who received the referral - Neither producers
The commission will like be shared between the two producers
All of these statements concerning group credit life insurance are false EXCEPT - Cash value loans are allowable - Dividends can reduce the premium payments - The face amount and premiums are flexible - The face amount is based on the outstanding loan balance
The face amount is based on the outstanding loan balance
Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate? - Evidence of insurability is required - Coverage remains until death of the insured - The premium to purchase the coverage comes from the policy's cash value - Cash value will continue to grow
The premium to purchase the coverage comes from the policy's cash value
Which of the following statements about universal life insurance is NOT true? - Death benefit can be increased - Premiums are flexible - Universal life insurance normally has a minimum guaranteed cash value for the duration of the policy - The cash value interest rate must equal or exceed a guaranteed minimum value
Universal life insurance normally has a minimum guaranteed cash value for the duration of the policy
A policy owner with a terminal illness who sells his life insurance policy to a third party is called a - viable - viatical - viator - viatee
Viator
Which of the following best describes the presumptive disability provision? - Reduces the incontestability period - Increases the monthly benefits stated in the policy - Waives the typical total disability requirements - Assumes all injuries result in total disability
Waives the typical total disability requirements
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity? - When the contract has been held for the period specified in the policy - For the entire length of the contract - Never - When the cash value has reached a stated minimum amount
When the contract has been held for the period specified in the policy
A prepaid dental plan has an agreement in place with a network of dentists which - allows the dentists to determine the deductible and coinsurance amounts - accepts an established amount as payment in full for the dental services rendered - requires all the dentists to be located within the same state - must cover 100% of all orthodontic treatments
accepts an established amount as payment in full for the dental services rendered
The IRS has a "minimum coverage" rule regarding qualified retirement plans. This rule states that each qualified plan is required to - benefit a broad cross-section of employees - benefit a minimum number of employees - provide a minimum amount of income per year - provide benefits to a company's executive team
benefit a broad cross-section of employees
A(n) ________ agent is an insurance agent who represents only ONE insurance company - exclusive - captive - domestic - inclusive
captive
Life settlement proceeds may be subject to the claims of - creditors - adjusters - insurers - beneficiaries
creditors
A(n) ______ insurer writes business in a state other than the one in which it is domiciled - foreign - reciprocal - nonadmitted - alien
foreign
During the early years of a whole life insurance policy, the cash value will normally be - equal to the total premiums paid - more than the total premiums paid - less than the total premiums paid - unavailable as a policy loan
less than the total premiums paid
Periodic health claim payments MUST be made at least - monthly - daily - weekly - annually
monthly
Medicare Supplement insurance requires an individual to be at least how old for open enrollment? - 59 1/2 years old - 65 years old - 70 1/2 years old - no minimum age
no minimum age
An insured's statement of a policy's benefits which is to be used in marketing materials is called a(n) - advertisement - testimony - promissory warranty - guaranty
testimony
To secure authority for soliciting insurance products in the state of Connecticut, an insurance company must secure a certificate of authority from - the Connecticut Insurance Commissioner - the NAIC - the Governor of Connecticut - the Connecticut chamber of commerce
the Connecticut Insurance Commissioner
Fee-for-service is a method of administering health insurance benefit payments in which - the insurer is reimbursed directly - the cost of each service is bundled into one payment - the cost of each service is scheduled - the insurer pays for services through a voucher system
the cost of each service is scheduled
A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured - after the insurer requests a full medical exam - when the insurer requests an attending physician's 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
A producer has indicated to a potential client that the proposed life insurance is covered by the Connecticut Life and Health Insurance Guaranty Association. This action taken by the producer is - permitted and encouraged - prohibited by law - legal in every state - permitted only with the Commissioner's authorization
prohibited by law
When a health insurance policy includes a Mandatory Second Surgical Opinion provision, the insured must - cover the cost of the second opinion - seek a second opinion for all surgeries - seek a second opinion for specified elective surgeries - seek a second opinion for emergency surgery
seek a second opinion for specified elective surgeries
Third-party administration has become fairly common in accident and health insurance due to the growth of - the Affordable Care Act - self-funding of benefits - health savings accounts - Medicaid
self-funding benefits
Medicare Part A does NOT provide coverage for - inpatient room and board - prescriptions administered while an inpatient - the first 3 pints of blood - skilled nursing facility care
the first 3 pints of blood
The insured's consideration given for a health insurance policy is - the first premium payment and the application - the initial premium payment only - the application - the initial premium and an investigative report
the first premium payment and the application