ExamFX for Life Health Insurance

All of the following would be factors in rating a health insurance policy EXCEPT

(unknown)

According to OBRA, what is the minimum number of employees required to constitute a large group?

100

An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?

2 years

Under which of the following circumstances would an insurer pay accelerated benefits?

An insured is diagnosed with cancer and needs help paying for her medical treatment.

What is the goal of the HMO?

Early detection through regular checkups

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?

Guaranteed

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

Income tax on distributions and no penalty.

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

Monthly premium waiver and monthly income

An insured's health claim internal appeal was denied. The insurer must do all of the following EXCEPT

Offer a payment plan

Which of the following would help prevent a universal life policy from lapsing?

Target premium

what method is used to determine the taxable portion of each annuity payment?

The exclusion ratio

In a viatical settlement, who is considered the viator?

The insured

Which of the following products requires a securities license?

Variable annuity

Which of the following annuity features makes it a suitable source of retirement income?

Annuities may provide income the annuitant cannot outlive.

What type of insurance is sold to small business owners that must meet overhead expenses such as rent or utilities following a disability?

Business overhead expense

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

The purpose of the group was to purchase life insurance.

Unreimbursed medical expenses paid for the insured may be claimed as deductions if the expenses exceed what percentage of the adjusted gross income?

7.5%

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Any form of life insurance

What is the benefit of experience rating?

It allows employers with low claims experience to get lower premiums.