Health and Life Insurance (Missed Questions)

An individual receives a lump-sum inheritance. He'd like to use the money to create a lifetime income since he'll be retiring soon. He purchases an annuity and wishes to receive payments beginning in 2 months. What did he buy?

Single Premium Immediate Annuity

Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel under the direction of a physician?

Skilled care

An insured, who is 44 years old, falls while mountain climbing on vacation. He is left paralyzed. After a year, doctor's feel he will never recover from his injuries. From which of the following programs will he be able to collect disability income?

Social Security

When an insured terminates membership in the insured group, the insured can convert to

Whole life without proof of insurability

Which of the following terms relates to disability income insurance?

Residual benefit

Who is responsible for covering the expenses associated with the examination of domestic insurers?

The insurer being examined

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

Stock insurers are owned by the shareholders and issue nonparticipating policies

When enrolling an applicant for HMO coverage, all of the following evidence of coverage must be provided to the applicant EXCEPT

The applicant's health status

An insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?

The condition must be covered under the insured's plan

In Texas, life insurance policies that include illustrations must include which of the following disclosures?

The illustration is not part of the insurance contract

Which entity has the option of including optional provisions in a health insurance policy

The insurer

An agent has created a new advertisement to help expand his business. Prior to use, the advertisement must be approved by

The insurer's home office

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

The payments stop at the first death

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the application

What is the purpose of the impairment rider in a health insurance policy?

To exclude coverage for a specific impairment

What is the purpose of a benefit schedule

To state what and how much is covered in the plan

What is the purpose of the gatekeeper in an HMO?

controlling costs

HMOs are known as what type of plans

service

Resident agents must complete how many hours of continuing education every 2 years

24

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 statements is INCORRECT concerning Modified Endowment Contracts (MECs)?

An MEC must always pass the 7-pay test

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

An association of 35 people

Which of the following indicates the person upon whose life the annuity income amount is determined

Annuitant

Which provision may be added to a permanent life policy, at no cost, that insurers that the policy will not lapse so long as there is cash value

Automatic Premium Loan option

Regarding health insurance, all of the following are tax-deductible EXCEPT

Employee paid group disability income

When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as

Estate conversation

A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy?

Family

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed Amount

All of the following are changes to health insurance plans introduced by the PPACA EXCEPT

Full-Cost coverage for all medical expenses

The guaranteed purchase option is also referred to as the

Future Increase Option

The guaranteed purchase option is also referred to as the

Future increase option

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association

Has been active for five years minimum

An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a Statement of Good Health, relinquishes the policy, and leaves. What did he do wrong?

He left the policy with the insured without collecting the premium

Which of the following best describes life annuity with period certain option?

It guarantees benefit payments for life of the annuitant and for a specified period for the beneficiary

Which of the following is TRUE of level term insurance

It is temporary protection

Which of the following statements is TRUE regarding an Agent's Report during the policy application process

It provides the agent's personal observations concerning the proposed insured

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

Persons receiving Medicaid are not eligible

All of the following statements about mutual insurance companies are correct EXCEPT

Policy dividends issued by mutual companies are guaranteed and not taxable

Policies written on a third-party ownership basis are usually written to cover which of the following?

Policy-owner's minor children or business associates

Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an

Preferred Provider Plan

All of the following are true regarding key person disability income insurance EXCEPT

Premiums are tax deductible as a business expense

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 effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured

Reduce the death benefit

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

30 days

What is the maximum amount of time an insurer may delay payment of a claim without having to pay an additional interest?

60 days

What is the maximum age that a disabled insured worker may receive Social Security disability benefits

65

In this state (Texas), in order for an employer to obtain group health coverage for small employers, what percentage of employees are required to be covered by the plan?

75%

A Texas resident agent seeking to sell insurance to customers in another state needs

A nonresident license in that state

In health insurance, what is coinsurance?

A percentage of the cost of service that the insured and the insurer share

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

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

Immediately

In the event an insured no longer meets HMO eligibility requirements, how soon from delivering a notice may an HMO cancel the policy?

Immediately

Which of the following best describes the difference between joint life and joint and survivor annuity payment options?

In joint life option, the benefits stop after the first death

Which of the following is NOT true regarding a deferred annuity

Income payments begin within 1 year from the date of purchase

What type of health insurance plan provides broad medical expense coverage without requiring an insured to meet a deductible?

Indemnity

All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT

It does not have a guaranteed death benefit

Which of the following is true regarding pure life annuity settlement option?

It provides the highest monthly benefit

What is the most common name for a single policy that is designed to insure two or more lives with a standard premium, and that pays the death benefit upon the first death

Joint Life

Your client wants to provide a retirement income for his elderly parents in case something happens to him, He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?

Joint and Survivor

An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?

Level

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

Misrepresentation

In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity, annuity benefits would be paid to the

Named beneficiary

If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?

Never; the insurer has waived its right to those answers by issuing the policy

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums

With Adjustable Life, the owner can change all of the following EXCEPT

The insured

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

$2,500

An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

In an individual life insurance policy, when must the nonforfeiture benefits begin

After 3 policy years

If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times?

Within 10 days of when the policy was delivered

Under the mandatory uniform provisions "Notice of Claim", written notice of a claim must be submitted to the insurer within what time parameters

Within 20 days

An applicant misstates his age on his application for a health insurance policy. He states that he is 39, but his actual age is 49. When he files a claim, what will most likely happen?

Benefits paid will be those that would have been purchases at the correct age

Which of the following is true regarding coverage for chemical dependency treatment in group health insurance policies issued in this state?

Benefits provided must be the same as for any other physical illness

What type of life policies requires a nonforfeiture provision?

Cash value

A whole life policy is surrendered for a reduced paid-up policy. The cash value in the new policy will

Continue to Increase

Which of the following would NOT constitute a policy replacement

Converting group coverage to individual coverage

A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need

Decreasing term

An insured was diagnosed two years ago with kidney cancer. She was treated with surgeries and chemotherapy and is now in remission. She also has a 30-year smoking history. The insured is now healthy enough to work and has just started a full-time job. Which describes the health insurance that she will most likely receive?

She would be covered under her employer's group health insurance plan, without higher premiums