Sim exam missed
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay? a)10 days b)15 days c)25 days d)45 days
b
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy? a)Joint limited annuity b)Joint life c)Joint and survivor d)Life with period certain
b
A guaranteed renewable disability insurance policy a)Cannot be cancelled by the insured before age 65. b)Is renewable at the insured's option to a specified age. c)Is renewable at the option of the insurer to a specified age of the insured. d)Is guaranteed to have a level premium for the life of the policy.
b
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? a)The amount of the distribution is reduced by the amount of a 20% withholding tax. b)No taxes are due since the plan participant is over age 59 1/2. c)There is a 10% early withdrawal penalty. d)The amount distributed is subject to ordinary income tax.
A
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as a)Critical illness. b)Major medical. c)AD&D. d)Medical expense.
a
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid? a)The benefits will be coordinated. b)Neither plan would pay. c)Each plan will pay in equal shares. d)The insured will have to select a plan from which to collect benefits.
a
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary? a)Revocable b)Primary c)Contingent d)Irrevocable
a
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? a)Fixed period b)Life with period certain c)Fixed amount d)Interest only
a
If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? a)The balance of the loan will be taken out of the death benefit. b)The policy beneficiary receives the full death benefit. c)The policy beneficiary takes over the loan payments. d)The policy is rendered null and void.
a
Which one of the following is an eligibility requirement for Social Security disability income benefits? a)Fully insured status b)Experiencing at least one year of disability c)Being at least 50 years of age d)Currently employed status
a
An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer? a)$0 b)$500 c)$1,000 d)$2,000
b
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? a)7 days b)10 days c)31 days d)60 days
b
The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called a)Workers compensation. b)Nonoccupational coverage. c)Unemployment coverage. d)Occupational coverage.
b
Which of the following is NOT a feature of a noncancellable policy? a)The insured has the right to renew the policy for the life of the contract. b)The insurer may terminate the contract only at renewal for certain conditions. c)The premiums cannot be increased beyond the amount stated in the policy. d)The guarantee to renew coverage usually applies until the insured reaches certain age.
b
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated? a)Variable annuity b)Annuity certain c)Fixed annuity d)Refund life
b
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early? a)Dividend Accumulation option b)Paid-up option c)Accumulation at Interest d)Paid-up additions
b
A medical expense policy that establishes 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 known as a)Benefit schedule. b)Gatekeepers. c)Usual, customary and reasonable. d)Relative-value schedule.
c
nsurers may change which of the following on a guaranteed renewable health insurance policy? a)Coverage b)Individual rates c)No changes are permitted. d)Rates by class
D
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? a)An irrevocable beneficiary b)A buy-sell agreement c)Family term rider d)Third-party ownership
D
All of the following statements concerning Medicaid are correct EXCEPT a)Individuals claiming benefits must prove they do not have the ability or means to pay for their own medical care. b)Persons, at least 65 years of age, who are blind or disabled and financially unable to pay, may qualify for Medicaid Nursing Home Benefits. c)Medicaid is a state funded program that provides health care to persons over age 65, only. d)Individual states design and administer the Medicaid program under broad guidelines established by the federal government.
c
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an a)Endowment. b)Nonqualified annuity. c)Modified endowment contract. d)Accelerated benefit policy.
c
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as a)Payment of claims. b)Proof of loss. c)Legal actions. d)Time limit on certain defenses.
c
The term "fixed" in a fixed annuity refers to all of the following EXCEPT a)Equal annuity payments b)Amount and length of payments c)Death benefit d)Guaranteed rate of interest
c
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT a)Payment of premium. b)Delivery receipt. c)Signed waiver of premium. d)Statement of good health.
c
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? a)$100 per violation b)Revocation of license c)$2,500 d)$1,000
c
Which nonforfeiture option provides coverage for the longest period of time? a)Paid-up option b)Accumulated at interest c)Reduced paid-up d)Extended term
c
Which of the following is considered a presumptive disability under a disability income policy? a)Loss of hearing in one ear b)Loss of one hand or one foot c)Loss of two limbs d)Loss of one eye
c
Which two terms are associated directly with the premium? a)Term or permanent b)Renewable or convertible c)Level or flexible d)Fixed or variable
c
An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe? a)Accumulation at Interest b)Cash option c)Flexible Premium d)Reduction of Premium
d
As it pertains to group health insurance, COBRA stipulates that a)Retiring employees must be allowed to convert their group coverage to individual policies. b)Terminated employees must be allowed to convert their group coverage to individual policies .c)Group coverage must be extended for terminated employees up to a certain period of time at the employer's expense. d)Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.
d
Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives? a)Full b)50% c)25% d)None
d
If a dental plan is integrated, it is combined with what type of plan? a)Secondary dental b)Supplemental c)Life d)Medical
d
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy? a)It is not considered to be taxable. b)It is taxable only if it exceeds the amounts paid for premiums by 50%. c)It is automatically taxable. d)It is only taxable if the cash value exceeds the amount paid for premiums.
d
The premium of a survivorship life policy compared with that of a joint life policy would be a)Lower. b)Higher. c)As high. d)Half the amount.
d
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to a)Creditors. b)Beneficiary of the death benefit. c)The spouse of the insured. d)The insured.
d
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? a)Reduced paid-up b)Paid-up options c)Extended term d)Cash surrender
d
What percentage of a company's employees must take part in a noncontributory group life plan? a)0% b)25% c)75% d)100% If the employer pays all of the premium, all employees must be covered to avoid adverse selection.
d
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process? a)Insurance Index b)Policy Summary c)Illustrations d)Buyer's Guide
d
Which of the following statements about HRAs is TRUE? a)The account allows roll-over of unused balances at the end of the year at the employee's discretion b)The account only allows roll-over of half the unused balances at the end of the year c)The account does not allow roll-over of unused balances at the end of the year d)The account allows roll-over of unused balances at the end of the year at the employer's discretion
d
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance? a)Business partners have an insurable interest in each other. b)A married person has an insurable interest in their spouse. c)An individual has an insurable interest in their own life. d)A debtor has an insurable interest in the life of a lender.
d
