MD Accident, Health & Life Producer Exam A

50% tax penalty on the amount not distributed by age 70 1/2

bill was 76 years old when he decided to collect his IRA benefits paid with his immediate annuity. what kind of penalty is bill expected to pay?

substandard

bob is a heavy chain smoker. which risk does bob most likely represent?

interest sensitive

bob wants to pay in more funds to shorten his premium paying period. which policy will give bob this flexibility?

a refund of the original amount, minus the payments already made

when an annuitant dies with cash refund option, what will their beneficiary receive?

to reduce the 1 year waiting period for pre-existing conditions

which best describes the purpose for a certificate of coverage?

the maximum benefit is based on monthly income

which best related to the maximum benefit of a group long term disability plan?

at least 3 or more employers must join together to form a MET

which of the following does not describe a MET?

fee for service

which of the following is a payment system for health care when the provider is paid for each of their services?

evidence of insurability my be necessary if coverage is increased

which of the following is a true statement regarding an adjustable life policy?

prospective review

which of the following is an advance utilization management tool to determine if a procedure is covered under a health plan?

58

which of the following is considered to be a premature age for an annuity to be surrendered?

it is invested aggressively

which of the following is most closely related to an equity indeed annuity?

standard

which of the following is not a beneficiary?

fixed period

which of the following is not a dividend option?

no catastrophic protection

which of the following is not a primary characteristic of a major medical plan?

beneficiary's age

which of the following is not considered in recommending a suitable annuity?

chronically ill

which of the following is the term used for the inability to perform at least two activities of daily living?

death while being a fare paying passenger on a plane

which of the following would not be an exclusion from a life insurance policy?

level

which type of term has the highest premium?

military personnel

which would be eligible to obtain SGLI?

the state

who apporives medicare select policies?

policyowner

who has the authority to change a premium payment, face value, and policy loans?

insurer

who pays the larger share of a coinsurance amount?

$2,000

will surrendered his whole life policy for $20,000 cash value. at that time he had paid his premium that totaled $18,000. what would be the federal income taxable part?

24

within how many months must a person be expected to die from a sickness in order to be classified as terminally ill?

group term life insurance

members of the armed forces can obtain __________, also called SGLI

is not taxable

money borrowed from a policy loan:

medicare hospice care

mr. jones is terminally ill. what kind of part a care does he most likely receive?

seperate

what type of account is associated with a variable annuity?

entity plan

what type of buy sell agreement involves a partnership?

The insurer

A broker is first and foremost responsible to:

noncontributory

100% of the employees must participate in an employer's plan if it is:

a package of comprehensive services

what type of health care services are provided by an HMO?

family plan

a family can be covered under a single contract. what kind of policy would provide permanent life coverage on the breadwinner of a family and term coverage for their other family members?

paid up option

adam has a whole life policy. he would like to use his dividends to pay off his policy. what dividend option should adam use?

increase her proceeds to an amount the premium would have bought at the correct age

after barbara died, and it was discovered that she was younger than her policy stated. what did her insurer do in this situation?

mortality

all of the following are differences between fixed and variable annuities except:

catastrophic loss

all of the following are exclusions from major medical policies, except:

the plan is funded by permanent insurance only

all of the following are true of key person insurance except:

written authorization from an insured

an agent cannot disclose any personal information without:

what requirements the agent needed to meet to obtain their insurance license

an agent is not required to tell a proposed insured which of the following:

surplus lines broker

an authorized but non-admitted insurer can be represented in this state only by which of the following?

premium amount

an employee receives a certificate of insurance. what information is not included in their certificate?

periodontics

an individual with severe gingivitis should seek what kind of treatment?

$1,000 or less

an industrial life insurance policy has a face amount that is:

term

an insured does not have any rights of renewal in relationship to which of the following?

capital

at a 4th of july celebration, john was involved in a tragic fireworks explosion. he lost the sight in his right eye. he has a disability policy with an accidental death and dismemberment rider. what sum will john receive?

barbara's insurance company

barbara has a fixed annuity. who bears the risk of her account?

cost of living

becky bought a disability income policy that pays her monthly benefit of $1,900. she is concerned about her benefits keeping up with inflation. what rider could she add to help with her concern?

contract of adhesion

contracts that are prepared and submitted on a "take it or leave it" basis, are classified as:

none

devin has a LTC policy and he is able to deduct the premiums from his taxes. what tax does devin pay on the benefits he receives?

elimination period

disability benefits are not paid during which period?

dread disease policy

due to karen's family history of heart disease, she purchased a policy that specifically covers the expenses of treating heart disease. what kind of policy did karen purchase?

3.5%

fred has a fixed annuity with a guaranteed minimum rate interest of 3.5%. due to fluctuations in the economy, his investments are now earning 3%. what interest rate will fred's insurer pay him?

securities and life

george wants to sell variable insurance policies. what two licenses does he need?

exceeded $50,000

gill is an employee that was just taxed on the cost of his employer's group life policy. what amount did their coverage exceed in order for this to take place?

it helps protect against catastrophic losses

how does reinsurance benefit the insurer?

an HMO member can receive emergency care in and out of their service area, but it is preferred in their service area whenever possible

how is emergency care under an HMO covered for its members?

federal government

how is medicare sponsored?

increase the premium

if an insurer discovers that an insured is actually older than what their policy states, what would their insurer probably do?

point of service (POS)

if your health care plan has characteristics of a HMO and a PPO, what type of plan do you have?

life expectancy and the principal amount

in a life income option, what determines the amount of each installment?

none

in franchise groups, how many master policies will be issued?

mutual insurance company

in order for a policy owner to receive a policy dividends she must own a policy issued by a:

exclusions

in regard to a LTC policy what are acts of war, nervous disorders and drug addictions?

there is not a required time

in what time must a section 1035 exchange take place?

closed panel

in which of the following cases is the doctor considered to be an employee of a PPO plan?

accidental bodily injury

injuries are classified as accidental injury or as accidental bodily injury. which injury generally has broader coverage?

retention

insurance companies base their insurance on:

increased benefits

issue age policy premiums will increase in regards to which of the following?

individual

jakes employer didn't offer a company annuity. what kind of annuity contract can jake obtain?

no benefits

jason was involved in an accident. he lost the use of his right leg and lost the hearing in his left ear. a month later his hearing improved. to what extent would jason receive presumptive disability benefits due to his injury and loss of hearing?

$3,000

jay surrendered his whole life policy that he had for 20 years. he paid yearly premiums of $500, which totaled $10,000. when he surrendered his policy, his cash value was $13,000. what part of this scenario is taxable income?

universal

joan didn't pay her life insurance premium for the last two months. She was glad to know her policy didn't lapse, but her premiums were deducted from the cash value of her policy. what kind of policy does this describe?

10 days

john was just delivered his life insurance policy. how many days can he review it and decide if it is best for him to keep?

copayments

john, an HMO subscriber, pays a dollar amount for each service he receives. what is the amount called?

$49,935

kate has a $50,000 life policy with a $65.00 premium. last month, 14 days after her policy premium was due, she died of a heart attack. what will her beneficiary receive from her death benefit?

$10,000 and no tax

sam directly transferred $10,000 from one qualified plan to another. what is the tax circumstance on this direct transfer?

is intended to provide coverage on a date earlier than the date of the issuance of the policy

the special significance of a conditional receipt is that it:

his loan would be taken out of his death benefit

tim has an automatic loan provision on his policy. what would happen if he died before he paid back his loan?

0%

tim his a disability policy and he recently became disabled as a result of being at war. what extent of his disability will be covered under his policy?

5 months

to receive social security disability benefits one must wit during an elimination period. how long would an insured wait?

guaranteed renewal

what LTC provision is located on the first page of the policy?

facility of payment

what clause permits an insured to pay benefits to a person not named in a policy as its beneficiary?

it has the highest amount of insurance protection

what is an advantage of a nonforfeiture extended term option?

life to life, annuity to annuity, and life to annuity

what is an allowable section 1035 exchange?

part c is provided by a PPO or an HMO

what is the correct feature about part c?

the number of payments to purchase the annuity

what is the main difference between a single and flexible premium payment option in a deffered annuity?

to keep the policy in force

what is the main reason for the target premium of a universal life policy?

oral surgery

what is the operative mouth procedure?

to administer health insurance subsidies and the help with the enrollment in private health insurance

what is the purpose of the PPACA insurance exchange?

contributions are not included as income, but are taxable when distributed

what is the taxation of a tax sheltered annuity?

income

what is used most to determine the extent of disability benefits?

high maximum benefits

what kind of benefits are in eligible health plans?

level

what kind of insurance is associated with a spouse term rider?

notice regarding replacement

what mus contain he 30 day free look provision?

entire contract clause

what provisional clause states that an application is part of the contract?

bail out

what special provision feature of an annuity allows an owner to surrender their annuity if interest rates drop a certain amount within a specific time?

common disaster clause

what states how death benefit proceeds should be distributed if an insured and their beneficiary get killed in an accident together?

estate conservation

what term refers to taxes being paid from Life Insurance proceeds, so it isn't necessary to sell assets from an estate, to pay for them?