Financial

an employee has a Flexible Spending Account (FSA) with a $5,000 annual benefit. this year the employee used $3,000. what would be the amount of the benefit available to the employee next year?

$5,000

which of the following is an example of physical hazard?

Diabetes

which of the following best describes the type of care provided by HMOs?

Preventive

cash value guarantees in a whole life policy are called

nonforfeiture values

when acting as a field underwriter, a producer is

seeking credible information about an applicant for health insurance

in contrasting stock insurers with mutual insurers, which statement is true?

stock insurers are owned by the shareholders and issue nonparticipating policies

if the annuitant dies before the annuity start date, which of the following is true?

the interest is taxable

an illustration used in the sale of a life insurance policy must include a label stating

"Life insurance illustration"

which of the following best describes pure life annuity?

it provides the highest monthly benefits

an applicant completes and application for a disability policy and pays the initial premium. the producer gives the applicant a conditional receipt. insurance coverage for the applicant will become effective when

the insurance company accepts the risk

a guarantee universal life policy has all of the following EXCEPT

cash value

Regarding the PPACA health care tax credit, which of the following is true?

persons receiving Medicaid are not eligible

if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

prior to performance of the test

what does the application of contract of adhesion mean?

since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

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

the insured members are not named

all of the following are true regarding the waiver of cost of insurance rider EXCEPT

the rider expires when the insured reaches age 60

what is the purpose of a benefit schedule?

to state what and how much is covered in the plan

which of the following services is not provided by an HMO?

unlimited coverage for treatment for drug rehabilitation

all of the following are true of annually renewable term insurance EXCEPT

proof of insurability must be provided at each renewal

if an insured purchases an insurance policy with a large deductible, what risk management technique is the insured exercising?

retention

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

$2,500

according to the life insurance replacement regulations, which of the following would be an example of policy replacement?

a policy is reissued with a reduction in cash value

which of the following is NOT an example of the company's location of incorporation?

authorized

when filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available, what could the applicant do to properly correct the mistake?

cross the incorrect answer out, write the correct one beside it, and initial the answer

if a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?

supplementary major medical

which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?

the application contains material misstatements

what are the continuing education requirements for agents who market long-term care insurance policies?

8 hours of long-term care specific education included in the regular CE requirements.

which of the following would describe the difference between a blanket life insurance policy and a franchise policy?

blanket policy does not name individual insureds

what is the purpose of the gatekeeper in an HMO?

controlling costs

HMO members pay a small fee when they see their primary care physician. this fee is called a

copay

which of the following is the primary source of information that an insures uses to evaluate an insured's risk for life insurance?

insurance application

which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed with a terminal illness that will result in death within 2 years?

living needs rider

which risk classification is representative of the majority of people in a certain age group and with similar lifestyles?

standard

which of the following is true regarding a joint life annuity?

the payments stop at the first death

all of the following are general requirements of a qualified plan EXCEPT

the plan must be temporary

all of the following are true of the Survivorship Life policy EXCEPT

the premium is based on the age of each individual

to be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan?

75%

which of the following used to be called Medicare + Choice Plans?

Medicare Advantage Plans

which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?

an Accidental Death Rider

which of the following is a correct statement about annuities?

fixed annuities do not provide protection against inflation

Where are premiums from fixed annuities invested?

general account

statistical probabilities of loss for a particular class of insureds is best predicted when the insured group is

larger

which of the following will be eligible for tax-sheltered annuity?

public school teachers

once the initial benefit limit in Medicare Part D is reached, how is the beneficiary affected?

the beneficiary is then responsible for a portion of prescription drugs costs

under the Family Medical Leave Act, what happens to an employee's insurance benefits while he/she is on leave?

the benefits earned remain in effect for the duration of the employee's leave

an individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a LTC facility. his agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT

acute

which of the following types of care could be provided at a community center?

adult day care

an underwriter is reviewing an applicant with an extensive medical history. which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?

attending physician's statement

which of the following statements is NOT true regarding HICAP?

it exists to assist seniors who are not qualified to receive Social Security or Medicare

which rider, when added to a disability policy, pays income during the six-month waiting period before Social Security benefits can begin?

Additional Monthly Benefit

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

an association of 35 people

when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

extended term

which of the following actions does NOT constitute false advertising?

stating that dividends are not guaranteed

if an applicant's health is poorer than that of an average applicant, the policy may be issued

substandard

a medicare supplement policy must have a free-look period of at least?

30 days

policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to

6 months

an employee dies having 6 quarters of coverage during the previous 13-quarter period. what status of coverage does the employee have under Social Security?

currently insured

when assessing needs for life insurance, an individual may use retention, which means

maintaining assets at death

when may HIV-related test results be provided to the MIB?

only if the individual is not identified

per the California Insurance Code, the best definitions of "shall" and "may" are

mandatory and permissive

a qualifying retiree has access to all parts of the Social Security Medicare program. which of these parts requires a monthly payment from the insured?

Part B

which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

intermediate care

underwriters use all of these methods to protect the insurer against adverse selection EXCEPT

only accepting a small percentage of applicants

on an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known as the

principal sum

a limited health insurance policy that will pay a lump sum to an insured diagnosed with heart attack, stroke, or renal failure is known as

critical illness insurance

all of the following must sign an application for health insurance EXCEPT the

Insurer