Health and Insurance Producer 3

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

A temporary license in this state is valid for

180 days

If the Director requests information regarding a claim, within how many days must the insurer provide a response?

21 days

All of the following could own group life insurance EXCEPT

A group needing low-cost life insurance.

Employers can reduce health plan costs by coupling a HRA with

A high deductible health plan.

Which of the following does the Insuring Clause NOT specify?

A list of available doctors

Most health insurance policies exclude all of the following EXCEPT

Accidental Injury

Which of the following individuals is eligible for a Health Savings Account?

Allison is insured by a High Deductible Health Plan (HDHP)

A dental plan that provides coverage based upon a specified maximum scheduled amount for each procedure and pays on a 'first dollar' basis with no deductible or coinsurance is a

Basic or scheduled plan.

On a major medical insurance policy, the amount that an insured must pay on a claim before the insurer will pay is known as

Coinsurance

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)

Equity Indexed Annuity.

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Erase the incorrect answer and record the correct answer.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal.

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

Standard risk is representative of the majority of people.

Which of the following is a health care program funded by the federal government for the retirees and spouses of the military services?

TRICARE

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT

It is a life contingency option.

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant.

All of the following are characteristics of a Major Medical Expense policy EXCEPT

Low Maximum Limits

Which of the following statements pertaining to Medicare Part A is correct?

Medicare Part A is automatically provided when an individual qualifies for Social Security benefits at age 65.

What term is used to describe when a medical caregiver contracts with a health organization to provide services to its members or subscribers, but retains the right to treat patients who are not members or subscribers?

Open panel

Under which of the following organizations are the practicing providers compensated on a fee-for-service basis?

PPO

All of the following are examples of risk retention EXCEPT

Premiums

The purpose of insurance regulation is to

Promote the public welfare.

When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?

Reimbursement

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distribution.

Which of the following is true regarding limited health insurance policies?

They only cover specific accidents or diseases.

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT

Unearned premiums are retained by the insurance company.

Who can make changes to the policy once it is in effect?

An executive officer of the insurer

To which of the following policies would the State regulations on illustrations NOT apply?

An individual variable life policy

Which of the following is NOT applied toward the deductible under a nonscheduled plan?

Annual dental exam

Which of the following is NOT true of Section 1035 Policy Exchanges?

Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days.

In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT

Applicant's past income.

An individual is insured under his employer's group Disability Income policy. The insured suffered an accident while on vacation that left him unable to work for 4 months. If the disability income policy pays the benefit, which of the following would be true?

Benefits that are attributable to employer contributions are fully taxable to the employee as income.

An individual borrowed money at the bank to send his daughter to college. Instead of purchasing Credit Life insurance, he used an existing life insurance policy to secure the debt. This would be called a/an

Collateral Assignment.

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

Cost of living rider.

Your client owns a Market Value Adjusted Annuity. In order to pay for a series of large, unexpected medical bills, he decides to surrender his policy prematurely. Which of the following will determine the penalty that the annuity owner will have to pay?

Current interest rate at the time of surrender

Group disability income insurance premiums paid by the employer are

Deductible by the employer as an ordinary business expense.

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Equal to the original policy for as long a period of time that the cash values will purchase.

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

Medicaid provides all of the following benefits EXCEPT

Income assistance for work-related injury.

Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend

Straight life.

All of the following are ways in which a Major Medical policy premium is determined EXCEPT

The average age of the group.

Who is the beneficiary in a credit health policy?

The lending institution

Which of the following is NOT a characteristic of an insurable risk?

The loss must be catastrophic.

To sign up for a Medicare prescription drug plan, individuals must first be enrolled in

Medicare Part A.

What is a retrospective-rating arrangement?

Method of establishing a premium on an a large group

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?

Offer the supplement policy on a guaranteed issue basis

Which of the following factors would be an underwriting consideration for a small employer carrier?

Percentage of participation

All of the following are covered by Part A of Medicare EXCEPT

Physician's and surgeon's services.

If a policy is rated-up, which of the following is true?

The premium increases

On a health insurance application, a signature is required from all of the following individuals EXCEPT

The spouse of the policyowner.

Medicare Advantage is also known as

Medicare Part C

Regarding long-term care coverage, as the elimination period gets shorter, the premium

Gets higher