Practice Test 3
The superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business practices?
15% of the agent's annual commission is from business sold to family
To be eligible under HIPPA regulations, for how long should an individual converting to an individual health plan have been covered under the previous plan?
18 months
Every small employer carrier must actively offer small employers at least how many health benefit plans?
2 plans
What must the patient pay under Medicare Part B
20% of covered charges above the deductible
The medicare supplement renewal commissions paid in the 3rd year must be as high as the commission of what year?
2nd
How long is an open enrollment period for Medicare supplement policies?
6 months
In which of the scenarios will repayment of funds take place per the Medicaid Estate Recovery Act?
Before her death, a 23 year old was living in a long-term nursing facility paid for with Medicaid funds
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?
Limited whole life
Is 24 hour coverage offered for life insurance?
NO
Is money borrowed form the cash value taxable?
No money borrowed from cash value is not taxable
Does the insurer offer benefits in workers comp?
No, the state regulates workers comp
What of the following is NOT correct regarding false statements by a person engaged in the business of insurance?
Only written statements can be considered fraud
an insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
Paid up option
An insurer is preparing to pay disability income benefits to an insured. In order to prevent over insurance, the insurer monitors the income of the insured before submitting payment. Which rule corresponds to this behavior?
Relation of earning to insurance
What is not a beneficiary class designation?
Specified
Jason wants to advertise his life insurance practice. Which of the following must he include in his advertisement?
The name of the city in which he has his principal office
Does a reinstated policy provide immediate coverage for illness?
accident is covered immediately but illness needs 10 days
Which of the following is a feature of a variable annuity?
benefit payments are not guaranteed
what provision must be included on the first page of a medicare supplement policy, which states the insurer's rights to change premium amounts?
continuation provision
A producer agent must do all of the following when delivering a new policy to the insured EXCEPT
disclose commissions of the sale
What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?
income tax on distributions and no penalty
The medical information burea was created to protect
insurance companies from adverse selection
In group insurance what is the policy called?
master policy
When does medicare cover nursing home care?
only if it is part of the treatment for a covered illness or injury
Equity indexed annuities
seek higher returns
What is the advantage of reinstating a policy instead of applying for a new one?
the original age is used for premium determination
Is intrerest credited taxable?
yes
Jack has a $20,000 life insurance policy on himself. He wants to insure the life of his 13 year old daughter. According to NY law,what is the maximum life insurance he can purchase on his daughter?
$50,000
In reference to the standard medicare supplement benefits plans, what does the term standard mean?
all providers will have the same coverage options and conditions for each plan
Your client plans to retire at age 50. He would like to purchase an annuity that would provide income from the time he retires to the age when social security and other pension funds become available. What settlement option should he consider?
annuity certain
A guaranteed renewable health policy allows the
policyholder to renew the policy to a stated age, with the company having the rights to increase premiums on the entire class
When an employee is still employed upon reaching 65 and eligibility for Medicare, which of the following is the employee's option?
remain on the group health plan and defer eligibility till retirement
A spouse was granted a temporary license for her deceased husband's agency on March 1. On May 1 she processed an application for life insurance on a new applicant. What is true?
submitted applicant without valid license
how are contributions to a tax sheltered annuity treated with regards to taxation?
they are not included as income for the employee, but are taxable upon distribution
What is not true regarding installments for a fixed amount
they will stop when annuitant dies
