Life/Health Exam Prep

All individual health insurance policies must include a notice of claim provision requiring that a written notice of claim must be given to the insurer within how long after the occurrence of the loss?

20 days

The right to examine, or free-look, provision in a long-term care policy allows for an insured to return a policy within how many days for a full refund of premiums paid?

30 days

Which of the following statements about small group health insurance policies is CORRECT?

A group member's spouse must be offered a continuation of coverage if coverage would otherwise cease because of divorce.

All of the following are purposes of juvenile insurance.

A.) Beginning a life insurance program for a child at a low premium rate. B.) Provide funds for a child's final expenses. D.) Funding a college education.

In order for any contract, including an insurance policy, to be legal it must contain all of the following elements.

A.) Consideration B.) Competent Parties C.) Legal Purpose

Which of the following is a common health insurance exclusion?

A.) Cosmetic surgery to reduce wrinkles. B.) Medical care after the insured breaks her arm while at work. D.) Treatment for burns sustained while the insured was committing arson.

HMOs may provide supplemental health care services. Which of the following is a supplemental health care service?

A.) Dental care B.) Vision care D.) Home Health care

Which of the following statements regarding Social Security disability is CORRECT?

A.) The disability is expected to last for at least 12 months. B.) There is a 5-month waiting period to receive benefits. C.) A person who has paid FICA taxes and has earned at least 6 credits during the last 13 quarters is considered currently insured.

A policy-owner stops paying premiums on a whole life policy with an accidental death benefit and exchanges the policy for extended term insurance. Which of the following statements pertaining to this situation is CORRECT?

A.) The policy-owner will have continued protection for a limited period of time. C.) The term policy has no cash value. D.) There will be no accidental death benefit with the new policy.

Which of the following statements regarding a spousal rider to a life insurance policy is CORRECT?

A.) This rider usually consists of level term life insurance. C.) There is a premium for this coverage in addition to the base policy premium. D.) This is a form of other insureds rider.

All of the following policy owner rights contribute to the flexibility of a life insurance policy

A.) nonforfeiture options B.) beneficiary selection D.) settlement options

All of the following home health care services will be covered by group plans

A.) physical therapy C.) occupational therapy D.) nutritional consultation

All the following are standard life insurance dividend options

A.) using the dividend to purchase a unit of paid-up whole life insurance. B.) Leaving the dividends with the insurer to accumulate at interest in a cash account. D.) taking the dividend as an income tac-free cash distribution from the insurer.

What protects an insured against unintentional lapse?

Another individual also receives the premium due notice.

Acme Corporation has established a non-qualified deferred compensation plan with life insurance as the funding vehicle. Acme currently has 100 employees, 90 of whom work full time. Which of the following individuals must be covered by the plan?

Any employee, officer, of executive that Acme selects.

Which of the following statements regarding traditional IRAs is CORRECT?

B.) Bradley has $36,000 of pretax dollars and earnings in a traditional IRA when he decides to retire, and he elects to withdraw $8,000 per year. During his first year of retirement, $8,000 will be included in his taxable income. C.) June has accumulated $30,000 of pretax dollars and earnings in her traditional IRA. At age 55, she withdraws $2,500 to take a vacation. she will have to include the $2,500 in her taxable income for the year and pay a $250 penalty. D.) Walter is 60 and is not disabled. If he takes a distribution from his traditional IRA, it is subject to tax as ordinary income, but with no penalty for early withdrawal.

Michelle, age 31, just purchased a $50,000 variable life insurance policy. Which of the following statements is CORRECT?

B.) Her premium payments will be fixed and level for the duration of the contract. C.) The cash value growth of her policy will depend on how the investments supporting those values perform. D.) She directs the insurer as to how her cash values are to be invested.

Which of the following statements does apply to the insuring clause?

B.) It usually specifies that the benefits are subject to all provisions and terms stated in the policy. C.) It represents the insurer's promise to pay benefits for specific kinds of losses. D.) It identifies the insured and the insurer

All of the following are optional provisions in an individual health insurance policy

B.) misstatement of age C.) unpaid premiums D.) change of occupation

Which of the following terms best describes the maximum length of time that disability income benefits will be paid to the disabled insured?

Benefit period

Which of the following is a required policy provision?

Change of beneficiary.

Which of the following business life insurance premiums is tax deductible to the business?

Executive bonuses

Which of the following statements regarding insurance is CORRECT about AIDS and HIV?

Group health insurance coverage cannot be canceled during the term of the policy for a person diagnosed as having AIDS.

Thomas, and insured, submits a claim and a proof of loss for medical expenses covered by his major medical policy. According to the time of payment of claims provision, how soon must the company pay the claim?

Immediately

Which of the following statements regarding Lloyd's associations is CORRECT?

Insurance is provided by individual underwriters.

Mary, age 70, recently purchased a non qualified immediate annuity to supplement her retirement income, and through it will receive a lifetime income of $800 per month. Which of the following statements most correctly describes how this income will be taxed?

Mary will pay income tax each year on just a portion of the payments received, and when she has fully recovered her basis, all future payments will be taxable.

Max and Leah recently became grandparents. Max, age 71, is employed as an architect and earns an annual salary of $55,000. He has never set up an IRA, but he is thinking about it, now that he has grandchildren. His spouse, Leah, is covered by her company's corporate retirement plan. She has told hime that he can contribute to her plan so that they can retire sooner. Which of the following statements is TRUE?

Max cannot contribute to Leah's plan.

The abbreviation PDP refers which part of Medicare?

Part D

When separate deductibles are required for each illness or accident, what kind of deductible is in effect?

Per cause

Mark purchased a 20-year $100,000 level term life insurance policy and a $250,000 straight whole life insurance policy. Which of the following statements is CORRECT?

Premiums for both policies are set at the time of policy issue and remain level throughout the term of the policies.

Which of the following is the best example of overinsurance?

The client's hospital bill comes to $1,300 a day. His major medical plan pays $1,000, whereas his hospital indemnity plan pays $400.

Which of the following statements pertaining to provisions in health insurance policies is CORRECT?

The misstatement of age provision allows the insurer to adjust the benefits payable under the policy if the age of the insured was misstated in the policy application.

Because increasing term insurance can be added to permanent policies and, when added, is less expensive than a stand-alone policy, it is almost always sold as

a rider?

Medicare supplement (or Medigap) policies pay

all or most of Medicare's deductibles.

To control costs, medical insurance plans available from commercial insurers and fraternal organizations are likely to provide care through

an open-network PPO.

To enroll in an employer's qualified retirement plan, employees must

be at least 21 year old and complete 1 year of service.

Leonard owns a major medical health policy that requires hime to pay the first $200 of covered expenses each year before the policy pays its benefits. The $200 is the policy's

deductible.

Long-term care insurance policies can:

establish a new waiting period if the insured decides to increase benefits.

Blanket health insurance is a type of

group accident insurance.

Under the time of payment of claims provision, policies that provide for periodic payment of benefits (such as disability income policies) must pay these benefits at least

monthly.

Self-insurance is

practiced by organizations that establish reserves to protect themselves against loss.

Under an executive bonus plan, the amount of premiums paid is

taxable income for the employee

Keenan has coverage with two separate insures that provide similar benefits. If he has a loss,

the amount paid by the two insurers will be prorated and Keenan will be refunded any excess premium.

Social Security defines disability as the inability to engage in

the duties of any occupation.