life insurance exam ecel testing
According to the Affordable Care Act (ACA), health insurance exchanges are expected to be in every state by what year?
2014
According to the Affordable Care Act (ACA), dependent children may remain on their parent's plan until what age?
26
Once an HIC has provided coverage to enrollees for a period of 2 years, it shall hold an open enrollment period of not less than how many days, at least once during each consecutive 12-month period?
30
In Ohio, how much advance notice must be given before terminating a long-term care policy for nonpayment of premium?
30 days
ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date?
50
What is the MAXIMUM number of employees an employer may have for qualified medical savings accounts?
50 employess
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?
50%
How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision?
6 months
Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?
60 days
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
60 days
At what age do most people become eligible for Medicare?
65
ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date?
90
Which of the following would NOT be appropriate for an immediate annuity?
A beneficiary collecting the face amount of a life insurance policy
Which of these is NOT an advantage of term life insurance?
A cash benefit will be provided if the insured is alive at the end of the policy period
Which of the following combinations best describe a universal life insurance policy?
A flexible premium deposit fund and a monthly renewable term insurance policy
An individual who declines coverage under a small group accident and health benefit plan and later enrolls is called
A late enrollee
To resolve written grievances received, each HIC specialty plan must establish
a complaint system
Emergency health care coverage for Medicare enrollees traveling abroad is
a core benefit under a Medicare Supplement
After an applicant reads and signs an insurance application, he/she should be conscious of the fact that
a false statement could lead to loss of coverage
Medicare can be described as
a federal health insurance program for individuals over the age of 65 or permanently disabled
According to the Affordable Care Act (ACA), dependent children may remain on their parent's plan until what age?
age 26
Who must notify the Superintendent of a licensee's change of address?
agent
An individual who purchases a modified life insurance policy expects
an improvement in future income
The surrender charge on many deferred annuity contracts are waived when the
annuitant dies or becomes disabled
When an HIV test is requested for an individual applying for a health and accident policy, who must sign the consent form?
applicant
In a qualified retirement plan, the yearly contributions to an employee's account
are restricted to maximum limits set by the IRS
After joining a health maintenance organization (HMO), a subscriber will typically select a(n)
primary care physician
A pre-existing condition exclusion in an accident and health insurance policy pertains to
prior health matters
Any employee insured under a group life insurance plan is normally
protected by term life insurance
The main purpose of an Ohio health insuring corporation (HIC) solicitation document is to
provide a detailed medical plan description
The automatic premium loan provision can be accurately described as a
provision that provides a policy loan to pay an overdue premium by the end of the grace period
When a lapsed policy's premium has been paid current, it has the potential of being
reinstated
A life insurance policy's waiver of premium rider has the ability to
relieve the insured of premium payments following an initial waiting period after the insured becomes totally disabled
Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will
remain a constant dollar amount for the duration of the annuity period
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a(n)
risk retention group
When a health insurance policy includes a Mandatory Second Surgical Opinion provision, the insured must
seek a second opinion for specified elective surgeries
Third-party administration has become popular in accident and health insurance due to the expansion of
self-funding of benefits
When issuing disability income coverage on a substandard risk, an insurance company may
shorten the benefit period
Which of the following statements BEST describes employer contributions for employer provided health insurance?
Employer contributions are deductible
Which of these is NOT considered a type of limited payment whole life insurance?
Endowment at age 70
When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?
Give notice, explain, and allow opting out
Which benefit can be found in an equity indexed annuity, but not in a fixed annuity?
Protection against long-term inflation
A Medicare Supplement policy is required to do which of the following?
Provide a 30 day free-look period
When would evidence of insurability be required for a person already covered with a variable universal life policy?
The death benefit is increased
Which of the following BEST describes a "partial disability"?
Unable to perform one or more job duties
At what point are death proceeds paid in a joint life insurance policy?
When the first insured dies
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value?
$16,000 was received tax-free and $4,000 as ordinary income
Which of these statements about traditional individual retirement accounts is accurate?
10% penalty is applied to withdrawals prior to age 59 1/2
John received a one-time distribution of $50,000 from his modified endowment contract (MEC). Prior to that, the contract's cash value was $150,000, the contract investment amount was $100,000, and the death benefit was $500,000. What percentage of the $50,000 distribution was taxable as ordinary income?
100%
Individuals seeking Social Security disability income benefits must have a disability that will eventually lead to death, or be expected to last at least
12 months
Part A Medicare includes coverage for all of the following services EXCEPT
120 days of Skilled Nursing Facility care
Except for fraud, the time after issuance of a policy during which an insurance company may contest an accident and health insurance claim due to the statements on an application is
2 years
Nonqualified distributions from a health savings account (HSA) have a tax penalty of
20%
In Ohio, a group accident and health certificate of insurance must contain
A listing of policy features and benefits
What does the term "field underwriting" refer to in the health insurance industry?
A producer's contact with the applicant
Which of the following must a health insuring corporation (HIC) provide to prospective plan subscribers at or before the point of sale?
A solicitation document
What do Limited accident and health policies normally cover?
A specific illness or event
Ohio requires advertisements for accident and health insurance policies covering ONLY a specified illness to prominently display
A statement that the policy is limited
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?
Accidental death and dismemberment
In long-term care insurance, what is an "ADL"?
Activities of daily living
Which of the following is NOT covered by a comprehensive long-term care policy?
Acute care
Which statement regarding a single premium life insurance policy is NOT correct?
Additional premiums may be required under certain conditions
When an agent submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
Agent
When an accident and health insurance policy provision is in conflict with the statutes of Ohio, it is
Amended to conform to the minimum statutory requirements
Which of the following is NOT a valid contract exchange?
An annuity exchanged for a life insurance policy
When a large sum of money is used to structure monthly payments, which product is typically used?
An immediate annuity
Rick is a disabled worker receiving Social Security benefits. What are his wife and dependent children eligible for?
An income benefit which is a percentage of his primary insurance amount
What type of policy can group term life insurance normally be converted to?
An individual permanent life insurance policy
Misrepresenting pertinent policy provisions relating to coverage after a loss is
An unfair claims settlement practice
Which statement is INCORRECT concerning a tax-sheltered annuity (TSA)?
Annual investment gains are included in participant's gross income
A description of a qualified plan's insurance contract may be found in which ERISA reporting form?
Annual return/report (Form 5500)
During the liquidation phase of an annuity contract, to whom are the income benefits normally payable to?
Annuitant
Under HIPPA rules, a medical plan's pre-existing conditions exclusion may be reduced by
Any period of prior coverage
Which of the following situations would a medical exam NOT be required for an individual health insurance applicant?
Applicant's family members have a history of cancer
Traditional individual retirement annuity (IRA) distributions must start by
April 1st of the year following the year the participant attains age 70 1/2
How may an insurance company classify an accidental death benefit on a life policy?
As an optional policy rider
When does the insured stop making payments under a thirty-payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
In the event of premium default, which life insurance provision will use the cash value to keep the policy in force?
Automatic premium loan
What is the tax treatment of benefit payments for a non-qualified annuity
Benefit payments are always fully taxable
What is the tax treatment of benefit payments for a non-qualified annuity?
Benefit payments are always fully taxable
In long-term care insurance, what is the length of time for which claims will be paid?
Benefit period
Which of the following statements BEST describes a double indemnity provision in travel accident insurance?
Benefits are doubled under certain circumstances stated in the policy
Which of these statements regarding Major Medical Expense insurance is NOT true?
Benefits are paid on a capitation basis
All of the following statements about HICs are true EXCEPT:
Benefits are usually provided on a reimbursement basis
Tim had an on-the-job accident and collects benefits from his individual disability income policy. What factor could possibly reduce these benefits?
Benefits he receives from workers compensation
Who normally pays the premiums for group credit life insurance?
Borrower
What is a prosthodontics dental procedure?
Bridgework
Which of these is NOT considered to be a cost connected with an individual's death?
Business expenses
A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?
Business overhead expense
Long-term care insurance policies may contain exclusions for all of the following EXCEPT
Care for incurable conditions
Which of the following is NOT an allowable exclusion for long-term care insurance policies?
Care for incurable conditions
What could be the potential result of taking out a cash value loan on a life insurance policy?
Cash surrender value will be reduced if policy is forfeited
Which statement regarding universal life insurance is correct?
Cash value accumulations have a guaranteed minimum interest rate
Which would be described as a beneficiary designation by class?
Children of the insured
Which of the following statements is true regarding accident and health insurance claims that reimburse on an indemnity basis?
Claims can be sent directly to the insured
Prepaid dental plans differ from most other types of dental plans in what way?
Closed panel of dentists can only be used
Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices?
Community service
What must be given to a life insurance applicant when the agent receives an application and the initial premium?
Conditional receipt
An accident and health insurance policy's premium requirements are set forth in which of the following provisions?
Consideration clause
Which report contains information regarding an individual's general reputation and credit standing?
Consumer report
What does a Mandatory Second Surgical Opinion provision provide to an employer-paid health insurance plan?
Containment of the employer's premium cost
An insurance application requires an applicant to make a full, accurate disclosure of the risk factor involved. Using this criteria, an insurance policy is considered what type of contract?
Contract of utmost good faith
What does the rehabilitation benefit cover in a disability income policy?
Covers the approved cost of the rehabilitation necessary to help a disabled insured return to work
Which of the following is NOT an intended use of an annuity?
Create new funds upon the death of a wage-earner
In Ohio, a period of accident and health insurance coverage which may be applied to reduce the length of a pre-existing condition exclusion under a new plan is called
Creditable coverage
ABC Partnership is a business with a limited number of partners. Which disability buy-sell agreement is best suited for this business?
Cross purchase agreement
Which of the following disability buy-sell agreements is best suited for businesses with a small number of partners?
Cross-purchase agreement
Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able to reside in her home while receiving primary care, as opposed to moving into a nursing home. All of the following long-term benefits encourage this EXCEPT for
Custodial care
Health providers are compensated by a preferred provider organization (PPO) for normal dental procedures by what means?
Decreased fee schedules
What happens to the purchasing power of benefit payments from a fixed life annuity when the cost of living goes up?
Decreases
In what way is a life insurance policy affected by an accelerated benefit payment?
Decreases the death benefit
What kind of life policy typically offers mortgage protection?
Decreasing term
Which of these life insurance policies do NOT contain cash value provisions?
Decreasing term life
An individual, age 45, would like to help pay for his daughter's college expenses in 10 years. Which annuity would be appropriate for this individual?
Deferred annuity
Which of these is typically regarded as a major treatment in an indemnity dental plan?
Dentures
All of the following are examples of unfair claim settlement practices EXCEPT
Denying unsubstantiated claims on a timely basis
Which of these is NOT an underwriting responsibility of a life insurance agent?
Determining the final rate classification
Individuals covered with employer-paid group health plans will normally receive tax-free benefits under all of these plans EXCEPT
Disability income
To which of the following group plans do HIPAA rules NOT apply?
Disability income
What type of group plan is excluded from HIPAA statutes?
Disability income
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
For purposes of Disability Income insurance, earned income would include all of the following EXCEPT
Dividends
Which of these is usually true of an HIC prescription drug plan?
Drugs are dispensed through participating pharmacies
An employer has a group life insurance plan in place for his employees. How would an employee in poor health be treated in this situation?
Eligible for the same type of coverage as the other employees
When using the needs approach for life insurance planning, lump sums may be created for all of the following reasons EXCEPT
Employee benefits
Which parties are directly involved in a group accident and health insurance contract?
Employer and insurer
Which statement concerning an adjustable life insurance policy is FALSE?
Evidence of insurability is required when there is a change in premium
How are benefit payments from individually-owned medical expense policies treated for tax purposes?
Exempt from income taxes
Before a policyowner replaces an existing individual health insurance policy, all of the following types of provisions in the new policy need to be reviewed EXCEPT
Experience rating
Which of the following are used by most insurers when determining the premiums for large groups?
Experience rating
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
Extended term nonforfeiture option
When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement?
Eye examination
Which statement concerning a decreasing term life policy is accurate?
Face amount decreases over the policy period
A policyowner fell behind on the premium payments of a whole life policy, and it is now in the grace period. How much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan?
Face amount minus the loan balance and past-due premium
A life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death?
Face amount plus interest accrued
Which benefit supplement added to a life insurance policy insures an entire family?
Family term rider
Where does the primary funding for Medicare Part A come from?
Federal payroll and self-employment taxes
Which of these is NOT an allowable deduction made from premium payments of the cash value of a variable life insurance policy?
Federal premium taxes
Which life insurance settlement option pays a stated monthly payment until both principal and interest are exhausted?
Fixed amount installment option
Which settlement option makes minimum guaranteed dollar payments over a stated number of years?
Fixed-Period
Major Medical policies are typically characterized by which of the following?
Flat deductible
Which life insurance policy provision allows a policyowner to cancel the policy within a limited time period and be given a full refund?
Free-look period
What is considered a valid reason for small businesses to insure the lives of its major shareholders?
Fund a buy-sell agreement
An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?
Good health statement
Under the Affordable Care Act (ACA), health insurers can no longer charge more or deny coverage to you or your child because of a pre-existing health condition UNLESS it is a
Grandfathered health plan
A large corporation purchases an accumulation annuity contract where all of the participating employees receive certificates of participation. What is this contract called?
Group deferred annuity
The administrator for a company's pension plan bought an accumulation annuity contract for its 2,000 employees. All 2,000 participating employees received certificates of participation. What kind of contract is this?
Group deferred annuity
Which of the following statements is NOT true concerning the relationship between group health insurance plans and Medicare? (assuming the business has more than 20 employees)
Group health coverage is NOT available for workers over the age of 65
What is the term used for an insurance contract that identifies individuals by relationship to a specific organization?
Group insurance
Which of the following is a key characteristic of an HIC compared to other health and accident plans?
HIC combines health care delivery and financing
A significant difference between HIC's and private commercial accident and health insurers is that
HIC's combine medical care delivery and funding in one organization
An accident and health plan that typically covers only the services of approved providers is called a(n)
HMO plan
What is another name for a Keogh plan?
HR 10 plan
Terry receives long-term physical therapy at her residence. What type of insurance would cover this service?
Home health care
For insurance purposes, similar objects which are exposed to the same group of perils are referred to as
Homogeneous exposure units
For insurance purposes, similar objects which are exposed to the same group of perils are referred to as Which of the following can be defined as "the potential for loss"?
Homogeneous exposure units risk
Which of the following is NOT true of a preferred provider plan?
Hospitals can only initiate preferred provider plans
When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?
Identifies the needs of the individual and his/her dependents
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds could be forfeited
A characteristic of a Preferred Provider Organizations (PPO) is
If service is obtained outside the PPO, benefits are reduced and costs increase
XYZ Insurance Company gives direct authority to its agents to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the agent the right to collect premiums?
Implied authority
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 10% penalty tax on $30,000
Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?
Incontestable clause
Which statement regarding the certificate of insurance is accurate?
Indicates evidence of an employee's insurance coverage
The type of health insurance in which underwriting procedures are the most restrictive is
Individual
What happens when an initial offer is answered with a counteroffer?
Initial offer is void
Which of these procedures is NOT designed for ambulatory care centers?
Inpatient surgery
Which situation is an accelerated (living) benefit rider suited for?
Insured expected to be confined to a nursing home for life
When compared to a fixed annuity, a variable annuity has what distinguishing feature
Investment risk is assumed by the purchaser
In what way are insurance policies said to be aleatory?
Involves the potential for the unequal exchange of value
When a policy loan is requested by a policyowner and it requires the consent of the beneficiary, what kind of beneficiary designation is this?
Irrevocable beneficiary
When does the agent give a premium receipt for a life insurance application?
When the initial premium has been collected with the application
The initial premium for a life insurance policy is typically paid in what way?
It is typically obtained by the producer and forwarded to the insurer
Which life insurance settlement option pays lifetime benefits to two or more people?
Joint and survivor
A retired couple would like to maximize the income derived from their life savings and have it payable until they both die. Which annuity would be their best choice?
Joint and survivor annuity
What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured?
Joint life
How much is normally paid to a policyowner in a life (viatical) settlement?
Less than the death benefit
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
Less than the policy's face amount
What type of premiums are associated with individual mortgage protection life insurance policies?
Level premiums
Which of these is NOT a common life insurance nonforfeiture option?
Life income annuity
All of these are common limiting factors with dental insurance EXCEPT for
Limit placed on how many teeth can be treated annually
Group dental insurers can discourage adverse selection by
Limiting the duration of coverage
Which of the following is a syndicate established by a group of insurers to share underwriting duties?
Lloyd's organization
Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment?
Loan amount is increased to reflect the amount of interest due
Which of these is NOT relevant when determining the amount of personal life insurance needed?
Local unemployment rates
In Ohio, viatical settlement brokers are permitted to do all of the following EXCEPT
Make the first transaction up to 30 days before approved for a license
Bert's spouse passed away recently. Bert was covered under his spouse's group family health insurance plan but now is covered under COBRA. How much of the active-employee cost may be passed on to Bert for continued coverage?
Maximum of 102%
Under the Affordable Care Act (ACA), what is the proportion of premium revenues spent on clinical services and quality improvements?
Medical loss ratio
Which individual would be best suited for Medicare Supplement insurance?
Medicare enrollee
Who does TRI-CARE provide accident and health coverage to?
Military families
What is considered a valid reason for an insurer's refusal to pay policy proceeds directly to a minor?
Minors are normally not capable of handling money in a reasonable manner
If an agent misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered
Misrepresentation
Which of the following is TRUE about a qualified retirement plan that is "top heavy"?
More than 60% of plan assets are in key employee accounts
Life insurance premiums are based on what three factors?
Mortality, interest, expenses"
Which of the following does NOT meet the requirements of "skilled nursing care"?
Must be provided exclusively in a hospital
Medicaid will pay for nursing home expenses under what condition?
Must have financial need
Which of these is NOT used as selection criteria in the underwriting process of a life insurance application?
National origin
Beginning January 1, 2014, the restricted annual limit for plans under the Affordable Care Act will be
No Limit
How would preventative care be encouraged in a dental plan?
No deductible or coinsurance required on teeth cleanings
Medicare Supplement insurance requires an individual to be at least how old for open enrollment?
No minimum age
The disability income policy most likely to have been issued on a substandard basis is
Non-cancelable with a health condition exclusion rider
Tim has an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this?
Noncancelable
Which element of a contract constitutes a definite and unqualified proposal by one party to another?
Offer
Which statement is NOT true regarding health insurance policies that provide limited benefits?
Only persons under the age of 65 are eligible
Most prepaid dental plans cover
Oral exams
Which of the following is NOT a function of accident and health insurance?
Pays a death benefit as a result of natural causes
With whom may the subscriber of an HIC file an appeal regarding the resolution of a complaint concerning services provided?
Peer Review Committee
Which type of deductible must be satisfied again for each illness or accident in a major medical plan?
Per-cause
Which of these are NOT factors that influence group health insurance underwriting?
Physical exams of group members
Which of these plans allow a participant to choose either a network or non-network provider at the time when medical care is needed?
Point-of-service
All of these statements concerning universal life insurance are false EXCEPT
Policy indicates how much of the premium is used toward company expenses
These are all accurate statements regarding universal life insurance EXCEPT
Policy loans are not permitted
Which statement regarding an adjustable life insurance policy is NOT true?
Policy loans are not permitted
Straight whole life insurance can be accurately described in all of these statements EXCEPT
Policy protection normally expires at age 65
If an insured dies during the grace period without having paid the premium, how much will the insurer pay?
Policy's face amount minus any premiums due
Which of the following describes a participating life insurance policy?
Policyowners are entitled to receive dividends
According to the law of large numbers, how would losses be affected if the number of similar insured units increases?
Predictability of losses will be improved
The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is
Preferred Provider Organization (PPO)
Which statement regarding the life insurance premium for a children's term rider is true?
Premium remains the same no matter how many children
How are level term policies able to provide level premiums?
Premiums are averaged over the term of the policy
Home health care benefits typically do NOT include coverage for
Prescription medication
Which of these is NOT considered the responsibility of a agent in the underwriting process?
Promptly sending the completed application to the insurance company
An example of illegal inducement would be
Publishing guaranteed dividend rates on a new type of policy
What type of risk involves the potential for loss with no possibility for gain?
Pure risk
What happens to the death benefit of a life insurance policy if the insured elects a partial payment from the accelerated (living) benefit provision?
Reduced
Which of the following statements BEST describes the HIPAA portability rules for an individual who changes from one group medical plan to another?
Reduces or eliminates any pre-existing conditions excluded under the new plan
How do benefit payments fluctuate over time in a variable life annuity?
Reflects changes in the market value of assets in a separate account
An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. What type of contractual arrangement is this?
Reinsurance contract
How can an insurance company minimize exposure to loss?
Reinsuring risks
The marketing of Medicare Supplements is regulated to prevent all of the following EXCEPT
Replacement of any existing coverage
Which of the following would most likely purchase an immediate annuity?
Retiree having a lump sum to invest
Which term describes the elimination of a hazard?
Risk avoidance
What does a fixed life annuity offer protection against?
Savings depletion because of longevity
Which of these factors does NOT influence an applicant's need for life insurance?
Self-maintenance expenses
Long-term care insurance policies may exclude coverage for all of the following EXCEPT
Senile dementia
Assets that back the non-guaranteed values of variable life insurance products are held in which account?
Separate account set up by the insurer
Which of the following would NOT be appropriate for an immediate annuity?
Setting up a college savings fund for a young child
Which of these policies is considered a whole life policy?
Single premium life
Medicare Part A covers what type of care?
Skilled nursing facility care
Which one of these is NOT considered to be an element of an insurable risk?
Speculative risk
Claims settlement practices of insurers are regulated by
State insurance departments
What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period?
Subject to market value adjustment
Which of the following incidents would NOT be covered by an Accidental Death and Dismemberment policy?
Suicide
How does the cost for a survivorship life policy compare to the cost of combining two separate life insurance policies?
Survivorship life policy is lower
In Ohio, health insuring corporation (HIC) complaint responses must include a notice of the right to appeal the HIC's decision to
The HIC's complaint system administrator
Which of the following statements is TRUE if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made?
The account can be rolled into the surviving spouse's IRA
Which statement concerning the Entire Contract provision in an individual accident and health insurance policy is TRUE?
The agent doesn't have the authority to change the policy or waive its provisions
What happens when a policyowner borrows against the cash value of his life insurance policy?
The death benefit would be reduced by the outstanding loan balance
Which statement concerning adjustable life insurance is accurate?
The face amount and premiums can be changed simultaneously by the policyowner
Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes?
The gain is treated as taxable income and a penalty tax is imposed on the gain
The initial premium for a life insurance policy is typically paid in what way?
The initial premium for a life insurance policy is typically paid in what way?
Which statement is true if a member suffers a broken leg while outside the insuring corporation (HIC) service area?
The injury will be covered as an emergency health service
Which statement regarding the joint and survivor life insurance settlement option is INCORRECT?
The installment amounts are larger as compared to a single life income option
An applicant for life insurance must be informed that testing for Human Immunodeficiency Virus (HIV) infection is used to help determine
The insurability of the proposed insured
What determines how much an annuitant is paid for a variable annuity?
The market value fluctuations of the securities backing it
Which statement concerning a deferred annuity is correct?
The owner can be the beneficiary, annuitant, or neither
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
The participating employee
All of the following are causes for termination of an employee's group insurance coverage EXCEPT
The plan's coinsurance limit is reached
Quality care in HIC specialty plans is evidenced by all of the following EXCEPT
The plan's service area is unlimited
What is considered the collateral on a life insurance policy loan?
The policy's cash value
Inflation protection must be included in all long-term policies delivered in Ohio UNLESS
The policyholder rejects the coverage in writing
An advantage of owning a flexible premium life insurance policy would be
The policyowner can make policy changes without difficulty
A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that
The policyowner may need to resume premium payments depending on actual results
Which of these statements regarding the extended term insurance nonforfeiture option is accurate?
The premium to purchase the coverage comes from the policy's cash value
How is a community rating used for underwriting purposes?
The same rates are charged for individual and group plans in the same geographical area
Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?
The specified benefit amount is a percentage of his wages
In which of the following situations can an insurance company offer group Health insurance?
The sponsoring group provides an employer-employee relationship
Which of these must be disclosed in a universal life policy?
The surrender charges
How does a continuous premium whole life policy differ from a limited pay whole life policy?
The time period in which premiums will be paid
How is a claim handled by a health insurer if it occurs during the policy's grace period?
The unpaid premium is deducted from the reimbursement
Which of these is NOT a reason to buy a term life policy?
To accumulate savings
How is a collateral assignment used in a life insurance contract?
Transfers specific ownership rights to a creditor
In dental insurance coverage, which of the following typically is EXCLUDED?
Treatment started prior to the eligibility date
What type of reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
Treaty reinsurance
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued?
Under $50,000 initially, but increases over time
Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses
Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses"
Which of the following statements about universal life insurance is NOT true?
Universal life insurance normally has a minimum guaranteed cash value for duration of the policy
How long does protection normally extend to under a limited pay whole life policy?
Until age 100
Under what circumstances must an agent provide his or her business records to the Director of Insurance?
Upon request of the Director
What kind of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?
Variable universal life
What action can an insurer take to discourage malingering and false disability claims?
When an insured has two disability policies with the same insurer, the insurer sets limits on the amount of benefits an insured can collect
For long-term care insurance, when does Ohio require provision of a written notice of available insurance counseling programs?
When coverage is solicited
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?
When the contract has been held for a stated time period
Which event triggers a deferred annuity to start making benefit payments to the annuitant?
When the contract is annuitized
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has a cash value
Pete is covered by a group health insurance plan which covers employees in multiple states. This plan is governed by the laws of which state?
Where the master contract was issued
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
The Affordable Care Act (ACA) established "exchanges" in order to
assist individuals and small businesses when making their health insurance purchases
Julie is in need of assistance with one or two activities of daily living. She may be eligible for a(n)
assisted living facility
In regards to health insurance, employees age 65 or older are typically required to
be offered the same group health benefits offered to the younger employees
What is a prosthodontics dental procedure?
bridge work
Voluntarily terminating an insurance policy is also known as
cancellation
Taking a sum of money and decreasing it in size would fit the description of
capital liquidation
An employee welfare plan exempt from ERISA regulations would be In a qualified retirement plan, the yearly contributions to an employee's account
church plans are restricted to maximum limits set by the IRS
In Ohio, what must an HIC establish and maintain to provide reasonable procedures for the resolution of written complaints initiated by subscribers concerning services provided?
complaint system
The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a(n)
conditional contract
The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n)
contract of adhesion
The policy provision that permits an employee to change from a group plan to an individual plan is called the
conversion provision
Reductions in coverage are one feature of _______ in Health insurance policies.
cost containment
The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the
deductible amount
Which of the following is required to be included in a noncontributory accidental death and dismemberment group certificate of coverage?
description of coverage
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends
equal the net single premium for the same face amount at the insured's attained age
Notice of information practices must be given to a policyholder at least
every three years
The difference between a doctor's actual charges and the amount approved by Medicare is called a(n)
excess charge
An enrollee in an HIC may have her coverage cancelled for all of the following reasons EXCEPT
excessive illnesses
Death benefits from a life insurance policy are normally considered to be
exempt from federal income tax
When determining the accumulation value of a deferred annuity, the total is calculated by taking the premiums paid plus interest minus
expenses and withdrawals
The powers directly given to an agent in an agency contract are called
express
When recommending the replacement of a health and accident policy, all of the following provisions should be carefully reviewed EXCEPT
grace period
In Ohio, when an individual is covered under a small employer's accident and health plan, the pre-existing conditions exlcusion period may be partially or wholly satisfied by
having creditable coverage with a previous employer
Some standard Medicare Supplement policies include which benefit?
hospice care
The unwritten authority given to an agent to carry out necessary incidental acts of the agency agreement is called
implied authority
XYZ Corp has implemented a qualified retirement plan. This plan may NOT discriminate
in favor of highly compensated employees
Trade association groups that are eligible for group medical benefits normally are
in the same industry
The benefit period of Medicare Part A begins on the first day the insured
is admitted into a hospital
The insurance coverage in a variable life insurance policy may vary based on the value of
its underlying investments
An insured is considered to be totally disabled under the presumptive disability provision if he/she
loses the ability to speak
Employees usually receive workers compensation benefits for
lost wages and medical expenses due to on-the-job accidents
An employer that offers a qualified retirement plan (as opposed to a non-qualified plan) to its employees is eligible to
make partial tax-deductible contributions to the plan
An employer that offers a qualified retirement plan (as opposed to a non-qualified plan) to its employees is eligible to
make tax-deductible contributions to the plan
The contract owner in a single premium deferred annuity (SPDA)
makes only one premium payment
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the amount transferred
John bought a deferred annuity on Mary. John amends the contract years later to name Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract?
mary
An insurance contract may be voided if a misrepresentation found on the application is determined to be
material
When funds are transferred directly from one IRA to another IRA, what percentage of the tax is withheld?
none
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were
not distributed to life annuitants who died before life expectancy
A life insurance company just paid a $100,000 death benefit to a beneficiary. When the insured died, the cash value was $15,000 and the total premiums-paid equaled $10,000. How much of the proceeds will be added to the beneficiary's gross income for federal income tax purposes?
nothing
Typically, working individuals age 65 or over must be
offered the same Health benefits as the younger employees
The power to change the beneficiary in an individual annuity lies with the
owner
When a deferred annuity is surrendered, who must sign the authorization to do so?
owner
Who typically makes the purchase payments in an individual annuity?
owner
According to the needs approach, an emergency reserve fund's primary purpose is to
pay for unexpected expenses
A life annuity feature which provides benefit payments for a minimum number of years, no matter when the annuitant dies, is called
period certain
A signed good health statement may be collected by a life agent at the time of
policy delivery
The standard provisions of an accident and health insurance policy require that the
policy, attached papers, and endorsements constitute the "entire contract"
An owner's cost basis for a non-qualified deferred annuity is typically the same as the
premiums paid into the annuity
Contributions made by an employee to a qualified retirement plan are required to be
subject to a vesting schedule
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally
tax deductible to the business
The interest credited to the cash values of personally-owned non-qualified annuities is considered
tax-deferred
The exclusion ratio determines
the amount of an annuity payment subject to income tax
The absolute assignment of a life insurance policy results in
the assignee receives all incidents of ownership
The insured's consideration given for a health insurance policy is
the first premium payment and the application
An arrangement where an individual is authorized to act on behalf of another person or company is established through
the law of agency
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The transfer of Rick's IRA account balance to his surviving spouse qualifies for
the marital deduction
When a Medicare supplement policy is purchased during the open enrollment period
the policy must be issued regardless of health status
A material change in a modified endowment contract (MEC) results in
the seven pay test, adjusted for cash value, being applied again
The grouping of two or more small employers in order to obtain group health insurance at a favorable rate is called a multiple employer
trust
Insurable interest in one's own life generally is regarded as
unlimited
In an individual retirement account (IRA), rollover contributions are
unlimited by dollar amount
An insurance company's failure to enforce a contract's provision is called a(n)
waiver
A health insurer MUST provide a proof of loss form
within 15 days of receipt of the notice of loss
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employmen
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employment
Pat has a disability income insurance policy that covers disabilities arising from a work-related illness or injury. The amount of his disability income payments for an on-the-job injury may be reduced by
workers compensation benefits already paid
The following are all elements of a valid contract EXCEPT
written evidence