review

All other factors being equal, the least expensive first year premium payment is found on

Annually renewable term

The rider that may be added to a disability income policy that allows for an increase in the benefit amount under certain conditions

Cost of Living

Under an individual disability policy the minimum schedule of time in which claim payments must be made to an insurer

Monthly

reinsurance

agreement between a ceding insurer and assuming insurer

which of the following is true about class designation

beneficiares are not named by names

an insurance producer hasnt been appointed to an insurance company. who is the producer considered to represent?

the client

a producer was issued a temporary license 30 days ago. how much longer can the license remain in effect?

150 days

what is the minimum age requirment for an insurance producer in the state

18

what is the max duration of a temporary license

180 days

Quincy has 1000 dollars in HRA account he incured 750 in medical expenses the first year of the plan and 1200 in the second year what is the max amount quincy is entitled to recover for his expenses under the plan

1950 employers are allowed to roll over unused balances at the end of the year

How many hours of CE must be completed every 2 years

24 total hours, including 8 hours approved for the line of license that the producer holds

max penalty for habitual willful noncompliance with the fair credit reporting act

2500

within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained

3 days

How soon must nonresident producers notify this state director of change of address

30 days

one of the differences bw group underwriting and individual underwriting that there is little or no medical info required regarding plan participants in groups of

50 or more

an insured has a major medical policy with a 500 dollar deducitble and 80/20 coinsurance. the insured is hospitalized and sustains a 2500 bill what is the max amount the insured will have to pay

900$ insured will pay the 500 dollar deductible plus 20 perecent of the remainder 2500 - 500 dollar deductible = 2000 x .20% = 400 plus 500 = 900

occasional visits by which of the following medical professionlas will be covered under LTC's home health care?

Licensed practical nurses community based organizations registered nurses

which medicare supplemental policies are the core benefits found

all plans because a is in all of them

which of the following would be considered a nonmedical insurance application

an aplication on which the medical info is completed by the applicant and the agent only

a 63 year old man is planning to be employed until age 68. when will he be eligible for medicare

at age 65 regardless of his employment status

the classification of "small employer" means any person actively engaged in a business that during the preceding year employed

at least 2 and not more than 50 persons

when must the medicare supplement buyers guide be present?

at the time of application

All of the following are true of the key person disability income policy except

benefits are considered taxable income to the business

a business wants to make sure that if a key emplotyee becomes disabled the business will be protected form any resulting loss. which kind of insurane will protect the business

business disability

a health insurance plan that covers all accidents and sicknesses that are not specifically excluded from the policy is referred to as

comprehensive plan

According to the future increase option rider (FIO) which of the following isnt an acceptable time to increase an insured benefit level

death of a spouse

goals of a medicare supplement application

determining wether or not an applicant has an exisiting medicare supplement policy - determining wheer or not the policy will replace another accident and health policy - advising applicants regarding the avaliability of counseling services

an insured has a medicare part D coverage. He has reached his inital benefit limit and must now pay 50 percent of his perscription drugs what is the term for this gap in coverage

doughnut hole

when a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

equal to the original policy for as long a period of time that the cahs value will purchase

this is considered a misrepresentation as it pertains to unfair trade practice

exaggerating the benefits provided in the policy stating that the competitors will arbitrarily increase their premiums each year stating that the insurance policy is a share of stock

which of the following statements is correct concering taxation of long term health care insurance

excessive benefits may be taxable

example of a nonqualified retirement plan

executive bonus plan

as it pertains to group health insurance, cobra stipulates

group coverage must be extened for terminated employees up to a certain period of time at the former employees expense

HSAs are dsigned to

help individuals save for qualifed helath expenses

what is the benefit of experience rating

helps employers with low claims experience bc they get lower premiums

which of the following refers to own occupation disability

insured is unable to preform duties of the occupation for which he/ she was educated and trained

inorder to to qualify for disability benefits

insured must prove disability must be in physicians care must be confined to the house

which is true regarding HMO coverage

it is divided into geographic territories

An insurer invest the money it recives from premiums paid by its insureds which of the following is true regarding the intrest earned on these investments

it is used to lower premiums

a policy that will pay the death benefit if the insured dies during the 20 year premium and nothing if death after the 20 year period

level term

A producer who fails to act as a fiduciary is guilty of

misdemeanor

The director has just finished examining a domestic insurer. when is the director next required to examine the same insureer

no later than 5 years form now

under which plan does preventive dental treatment not apply toward the deductible

nonscheduled

premium payments for personally owned disability income policies are

not tax deductible

if one takes social security retirement benefits at age 62, what needs to be done at age 65 to qualify for medicare

nothing

benefits available under social security

old age/retirement benefits disability benefits death benefits

Which of the following is provided by an HMO

patient care services financing

a prospective insured receives a conditional recipt and dies before the polciy issues the company will

pay the policy proceeds only if it would have issued the policy

which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents die or become disabled

payor benefit

An insurer wants to obtain information form investigators regarding an insured. what must the insurer do in order to legally acquire this info

present the insured with a disclosure authorization notice

an insured is scheduled to have two cavities filled. he knows in advance what benefits will be paid for the procedure. which clause is responsible for the advanced notification

prior authorization

characteristics of HMO

providing care on an outpaitent basis providing free annual checkups encouraging early treatment

which of the following factors determines the amount of each installment paid in a life income option arangement

recipients life expectancy and amount of principal

under the fair credit reporting act if the consumer challenges the correctness of his or her info the reporting agency must

respond to the consumer complaint

In order to become licensed as a nonresident producer in the state, a person must do which of the following

show proof of a vailid license for the same line of authority as in the home state

the cause that affects the proceeds of a life insurance policy from creditors after the death of the insured

spendthrift clause

An applicant buys a non qualified annuity, but dies before the starting date. for which of the following beneficiaries contract interest not be taxable

spouse

For an individual who isnt covered by an employer sponsored plan ira contributions are

tax deductible

what happens if a non member physician is utilized under the Point of Service Plan

the attedning physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount or percentage for the privilege

in the transaction of insurance which of the following is considered to be representing the client

the broker

Facts of tax deductibility of medical expense coverage for sole proprietors an partners

the deduction may not exceed th etaxpayers earned income for the tax year - the 100 percent deduction is based on the individuals adjusted gross income and as such may not be used to satisfy the irs established threshold for itemized medial expenses - they may deduct 100 percnet of the cost of a medical expense plan, but the plan may not exceed the tax payers income for the year

under a health insurance policy, benefits other than death benefits, that have not otherwise been assigned, will be paid to

the insured

when a life insurance policy was issued the policy owner designated a primary and contingent beneficiary. several years later, both the insured and the primary beneficiary died in the same car accident and it was impossible to determine who had died first. which of the following would receive the death benefit

the insured's contingent beneficiary

A man is enrolled in Part A of medicare and not part B. Three months into coverage he applies for a medicare supplment policy which of the following is true.

the insurer can deny coverage

which of the following isnt 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

an annuitant dies befor the effictive date of a purchased annuity. assuming the annuitants wife is the beneficairy what will occur

the intrest will continue to accumulate tax deferred

goals of risk retention

to fund losses that cant be insured to reduce expenses and improve cash flow to increase control of claim reserving and claims settlements

What is the main purpose of the total disability plan

to protect individuals or families against economic loss after a total disability of the wage earner

agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured best interest are guilty of

twisting

under the physical exam and autospy provision how many times can an insurer have the insured examined at its own expense while a claim is pending

unlimited

a medical expense policy that estabilishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is know as

usual customary and reasonable

An insurance company receives an application with some info missing and issues the policy anyway what is this called

waiver

which of the following determines whether the disability insurance benefits are taxed

whether the premiums were tax deductible

federal laws make it illegal for any individaul convicted of a crime involoving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

without receiving consent form an insurance regulatory authority