insurance exam

For individual health insurance, coverage for pre-existing conditions may be excluded for up to......months after issuance of the policy?

12

In michigan, legal action may be taken agaisnt an insurer for up to........ years for failing to pay a life insurance claim after proof of loss was submitted

6

In determining whether a pre-existing condition applies , the enrollee CANNOT have more than how many days gap in health insurance?

63

Which of these is considered to be a living benefit option in a life insurance policy?

Accelerated death benefit

Of the following dividend options, which of these is taxable?

Accumulation at interest

Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in?

Accumulation period

The waiver of premium does NOT include which provision?

All future premiums are waived if the insured recovers from the disability

Which of the following is a requirment for ANY change in an insurance application?

Change must be initiated by the applicant

Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium".

Consideration Clause

A producer's insurance license may only be revoked by the.....

DIFS

An example of a business Continuation plan is

Deferred compensation

Which of these is NOT a qualifying event for medicare?

Falling below the federal poverty level

A health care provider claim may be settled using which of the following payment methods

Fee-for-service

Which of these is not considered to be a common life insurance nonforfeiture option

Life income annuity

Which type of plan would be most appropiate for an individual on medicare and is concerned that medicare will not pay for charges exceeding the approved amount?

Medicare supplment Plan F

The cause of a loss is referred to as a(n)

Peril

A producers fiduciary duty requires that

Premiums are forwarded to the insurer on a timely basis

Which of the folloiwng is a reinsatment condition?

Proof of insurability

All of the following are considered to be nonforfeiture options available to a policy owner except?

Reduction of premium

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?

Reduction of premium dividend option

A life insurance policymaker does NOT have the right to?

Revoke an absolute assignment

Distributions from a health Savings Account (HSA) for qualified medical expenses are

Tax-free

Which of these statements regarding the annuitant is correct?

The annuitants life expectancy determines the annuity payments

Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?

The contract is not in force without the initial premium being paid.

Which of the following does a life insurance policy summary normally include?

The policys cash value

What type of injury would NOT be covered under a health insurance policy?

Work related

An example of the insureds consideration is.......

a paid premium

Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn.

income

Medicare Part A covers

inpatient hospital stay

A Medicare Supplement policy is?

is designed to fill in the gaps of part A and part B medicare

The election of COBRA for continuation of health coverage will

maintain the same coverage and increase premium

Group health plans may deny participation based upon the

members part-time employment status

A provision that allows a policyowner to withdraw a policys cash value interest free is a

partial surrender

Medicaid is intended for

poverty stricken people

An indemnity plan........

provides the insured a specific dollar amount for services

In an insurance contract, the applicants "consideration" is the

statements made in the application and the premium

Respite care is able to provide?

temporary relief to the patient's primary caregiver

If the annuitant dies before the annuity start date,

the premiums paid plus interest earned will be given to the beneficiary

A producer has allowed his/her license to lapse by failing to complete ther required continuing education credits. The license may be reinstated by completing the requirment within..........days of the renewal date

90

One of the most important considerations when replacing health insurance would be the

Exclusions on a new policy

A group Disability income plan that pays tax-free benefits to covered employees is considered

Fully contributory

Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125?

$50

Rob has a benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits this description?

Deferred compensation option

Which of these will typically authorize treatment from a specialist?

Gatekeeper

A universal life policyowner must receive a notice of cash surrender value at LEAST every?

Year

All of these are characteristics of a major medical expense policy Except

elimination periods

Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the

employees waiting period for coverage of a preexisting condition can be reduced under the new employers health plan

Benefits provided by a medicare supplement policy must NOT?

Duplicate medicare benefits

Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?

Child term rider

Life insurance policies will normally pay for losses arsing from

Commercial aviation

All of the following are qualifications for establishing a health savings account (HSA) except

Enrolled in a health plan with prescription drug dealer

Which of these BEST describes the illegal act of twisting?

Replacing an insurance policy from one insurer to another based on misrepresentation

Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?

Results

Continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician is called

Skilled nursing care

A fee for service health insurance plan will normally cover

A DISEASE

What is the nonforfeiture value of an annuity before annuitization?

All premiums paid plus interest, minus any withdrawals and surrender charges.

Converting a group plan to permanent life insurance requires?

The conversion being applied for within 31 days of termination

Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?

100% of his health insurance costs an be deducted from his gross income

A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences.

60

What amount will be paid under a policy where the insured misstated his/her age?

An amount the premium would have purchased at the correct age

XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence?

Benefits are fully taxable

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disallowed?

Business overhead expense policy

All of the following statements correctly describe the purpose of social security EXCEPT?

It provides a source of income for meaningful standard of lving during retirement

What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?

No tax payment needed

Joe is a Medicare participant who receives his benefits through a Managed Health Care Plan. Which Medicare plan does he have?

Part A

Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test?

Pre-death distributions are typically taxable

In which of the following situations would the insurer be liable for a loss?

The insured suffered an injury as an innocent bystander during a bank robbery

A partial surrender is allowed in which of the following life policies?

Universal life

Which of the following is considered to be an event or condition that increases the probability of an insureds loss?

Hazard

Which of the following is not included under a health benfit plan?

Hospital indemnity plan

Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment

Collateral assigment

The time limit for filing claim disputes is addressed in which provision of an accident and health policy?

Legal actions

Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?

Life annuity certain

Typically, Long-Term Disability benefits are coordinated with which benefit plan?

Social Security

Variable life insurance and universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance?

Policyowner has the right to select the investments which will provide the greatesst return

Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered?

Qualified retirement annuity

Which of the following actions is required by a producer who is replacing an existing life insurance policy?

Submit to the replacing insurer a list of policies to be replaced