Life and Health Insurance Questions

If a person, firm, association or corporation conducts insurance business in New York without a certificate of authority the penalty for the first violation is

$1000

An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security Benefits begin?

1

Which of the following is NOT covered under a long-term care policy?

Acute care in a hospital

An insurer invests the money it receives from premiums paid by its insureds. Which of the following is TRUE regarding the interest earned on these investments?

It is used to lower premiums

The Fair Credit Reporting Act

Regulates consumer reports

What is the penalty tax for nonqualified distributions from a health savings account?

20%

All of the following are correct about the required provisions of a health insurance policy EXCEPT

A reinstated policy provides immediate coverage for an illness

In a replacement situation, all of the following must be considered EXCEPT

Assets

when an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply?

Case management provision

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

Cash surrender values

A producer who fails to segregate premium monies from his own personal funds is guilty of

Commingling

All of the following are true about group disability income insurance EXCEPT

Coverage applies to both on and off the job

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

Which of the following meets the insured's personal needs, and is provided by nonmedical personnel?

Custodial care

Which of the following would NOT be considered an improper claims practice?

Denying a claim after proof of loss statements are completed and submitted by insureds

Which of the following are considered activities of daily living in most long-term care policies?

Eating and Dressing

What insurance concept is associated with the names Weiss and Fitch?

Guides describing company financial integrity

Medicare Part B covers all of the following EXCEPT

Long-term care services

Cash Value guarantees in a whole life policy are called

Nonforfeiture values

In long-term care insurance, what type of care is provided with intermediate care?

Occasional nursing or rehabilitative care

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

Only accepting a small percentage of applicants

Which of the following does NOT have to be disclosed in a long term care (LTC) policy?

The aggregate amount of premiums due

Which of the following characteristics applies to defined benefit plans but not defined contribution plans

The amount of contributions made by the employer is determined by an actuarial formula

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A

What types of services may NOT be provided under the long-term care's assisted living care?

Visits by a registered nurse

An independent adjuster may include which of the following?

A firm who acts on behalf of the insurer

All of the following may be excluded from coverage in a Major Medical Expense policy EXCEPT

Emergency surgery

In which of the following health plans are benefit payments attributed to employer contributions taxable to the employee?

Group Disability Income

Which of the following statements is correct?

HMOs may pay for services not covered by Medicare

The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT

Individual tax deduction for premiums paid

Which of the following statements is an accurate comparison between private and government insurers?

Private insurers may be authorized to transact insurance by state insurance departments

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

Which of the following is NOT provided by an HMO?

Reimbursement

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation on accumulation

The annual contribution limit of a Dependent Care Flexible Spending Account is set by

The IRS

All of the following are true of credit life EXCEPT

The insured names the beneficiary

What is NOT a benefit of a POS plan?

It allows guaranteed acceptance of all applicants

Which of the following is true about the mandatory free look in a Life Insurance Policy?

It commences when the policy is delivered

Which of the following is NOT true regarding a flexible spending account?

It does not have limits on contributions

Which of the following is NOT a characteristic of a Managed Care Plan?

Risk Retention

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Spendthrift Clause

An Agent misrepresents the details of an insured's new insurance contract that will be replacing the current contract, Which of the following will most likely happen?

Suspension of License

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individual insured's taxable income

In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?

The insured must have first been hospitalized for 3 consecutive days

Which of the following is NOT a characteristic of group long-term disability plan?

The benefit can be up to 50% of one's yearly income

Which of the following is NOT a feature of a noncancellable policy?

The insurer may terminate the contract only at renewal for certain conditions

Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses?

The insurer will return a percentage of the premiums paid

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy

If seeking repayment of Medicaid funds per the Medicaid Estate Recovery Act would cause a hardship to survivors, states may

Waive the estate recovery requirement

A HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense? Which of the following is true?

There will be a tax

At a hearing, a person has the opportunity to do all of the following EXCEPT

File for dismissal of charges

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

Persons receiving Medicaid are not eligible

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax deductible as a business expense

An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a Long-term care (LTC) facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT

Acute

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

The period of time immediately following a disability during which benefits are not payable is

The elimination period