Life and Health Exam Questions
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
The reinstatement provision stipulates that losses resulting from sickness will be covered how long after the date of reinstatement?
10 days
According to OBRA, what is the minimum number of employees required to constitute a large group?
100
For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
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 an Own Occupation plan, if the insured cannot perform his/her current job for a period of up to two years, disability benefits will be issued, even if the insured would be capable of performing a similar job during that two-year period. After that, if the insured is capable of performing another job utilizing similar skills, benefits will not be paid.
If a producer's appointment is terminated, the insurer must update its appointment register with how many days?
30
An insurance producer recently changed his name. He is required to alert the Commissioner no later than how many days from the change?
30 days
How long does an insured have to examine a Medicare supplement policy and decide whether or not to keep it?
30 days
If an insurer accepts applications from a nonappointed producer, the insurer must either reject the applications or appoint the producer within how many days?
30 days
How long does an insured have to examine a Medicare supplement policy and decide whether or not to keep it?
30 days from the date it was received
Within how many days must an insured notify the insurer of a child's birth and pay any required fees?
31 days
For how many years is an insurer required to maintain a complete file of its advertisements?
4 years
How long must producers maintain records of continuing education completion?
4 years
An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. What kind of penalty would the IRA owner pay?
50% tax on the amount not distributed as required
Benefit periods for individual short-term disability policies will usually continue from
6 months to 2 years.
How many days after the completion of an examination must the Commissioner prepare a final report of its results?
60 days
Legal actions to recover on a policy can begin how many days after written proof of loss is furnished?
60 days
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
All of the following could own group life insurance EXCEPT
A group needing low-cost life insurance.
An insured carries health insurance with two different providers and is covered on an expense incurred basis. He has an appendectomy and files the claims to both insurers. Neither company is notified in advance that the insurer has other coverage. What should each insurer pay?
A proportionate amount
A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called
Accelerated Benefit provision.
In which Medicare supplemental policies are the core benefits found?
All plans
Long-term care policies MUST cover
Alzheimer's disease
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies.
All other factors being equal, the least expensive first-year premium payment is found in
Annually Renewable Term.
When an annuity is written, whose life expectancy is taken into account?
Annuitant
When must the Medicare Supplement Buyer's Guide be presented?
At the time of application
All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT
Being age 65.
The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an
Blanket.
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only.
Which of the following is NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
An insured is receiving hospice care. His insurer will pay for painkillers but not for an operation to reduce the size of a tumor. What term best fits this arrangement?
Cost-containment
Which of the following terms is used to name the nontaxed return of unused premiums?
Dividend
All of the following are business uses of life insurance EXCEPT
Funding against general company financial loss.
In which of the following health plans are benefit payments attributed to employer contributions taxable to the employee?
Group Disability Income
What kind of policy issues certificates of insurance to insureds?
Group insurance
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Guaranteed surrender value
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity.
The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy?
Indeterminate Premium
Who is required to keep and maintain a register of appointed producers?
Insurers
All of the following statements about Medicare Part B are correct EXCEPT
It is a compulsory program.
Which of the following statements regarding insurable interest in viatical settlements is correct?
It must exist at the time of the issue of the original life policy.
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life Premium payments will cease at her age 65, but coverage will continue to her death or age 100.
All of the following are characteristics of a Major Medical Expense policy EXCEPT
Low maximum limits.
Willful violations of insurance laws of this state are considered
Misdeamonrs
Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life?
Need is predicted using the number of years until the insured's retirement.
An insured is involved in a car accident. After the accident is determined to be her fault, the police give her a breathalyzer test to determine whether or not she had been drinking alcohol before the accident. Her blood alcohol level is over the legal limit. What type of health benefits will her health insurance policy pay for her injuries if the policy includes the narcotics and intoxicants provision?
No benefits The Narcotics & Intoxicants Provision stipulates that the insurer will not cover any injury or illness resulting from intoxication created by drugs or alcohol. Treatment for substance abuse is typically still covered under most policies. This provision is geared specifically toward injuries and illnesses resulting from substance abuse.
The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called
Nonoccupational coverage.
After a brief emergency room visit, an insured discovered that his plan required a larger copayment for an out-of-network provider than for a local, in-network provider. Under the PPACA provisions, this is
Not permitted.
Under most dental plans, what limitations are posed for denture replacement?
Once every 5 years
The part of Medicare that helps pay for inpatient hospital care, inpatient care in a skilled nursing facility, home health care and hospice care, is known as
Part A.
An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?
Pay the death benefit
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
Which of the following must be present in all Medicare supplement plans?
Plan A
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Predicted needs of the family after the insured's death.
Which of the following is CORRECT regarding Business Overhead Expense insurance?
Premiums are tax deductible.
Who is a person, other than a viator, that enters into a viatical settlement contract?
Provider
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount.
If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?
Reasonable expectations
When an insurer combines two periods of disability into one, the insured must have suffered a
Recurrent disability.
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 two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the contract's interest NOT be taxable?
Spouse
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
What characteristic must an annuity have if it is used to accumulate funds in an IRA?
Tax-qualified
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term Children's term riders provide term insurance with coverage expiring when the minor reaches a certain age.
Which of the following is NOT covered under Plan A in Medigap insurance?
The Medicare Part A deductible
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?
The cost of coverage is a deductible expense by the employer.
If an individual covered as a dependent under a group life policy no longer qualifies as a dependent, which of the following is true?
The dependent may convert group coverage to an individual policy, without evidence of insurability.
An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?
The insured was in compliance with the policy requirements regarding claims.
An annuitant dies before the effective date of a purchased annuity. Assuming that the annuitant's wife is the beneficiary, what will occur?
The interest will continue to accumulate tax deferred.
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies. Installments for a fixed amount option has no life contingencies. A specific amount of benefits will be paid until funds are exhausted whether or not the annuitant is living.
Annuity contracts grow tax deferred. That means that
There is no current income taxation upon the growth in the annuity.
What is the purpose of the Maryland Health Insurance Plan?
To provide health insurance to individuals who have been denied coverage
Which of the following is NOT the purpose of HIPAA?
To provide immediate coverage to new employees who had been previously covered for 18 months
Which of the following CANNOT insurance companies do when creating advertisements for their products issued in this state?
Use caveats as often as possible
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
Usual, customary and reasonable.
Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?
With the policy.
If the subject of fraud is valued at $300, the person who committed the fraud is guilty of
felony