VA Life & Health

What is the purpose of the gatekeeper in an HMO?

controlling costs

Regarding major medical plans

Higher stop-loss means lower premium

Wagering on a sporting event is known as what type of risk?

Speculative

To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan?

75%

Which of the following produces evaluations of insurers' financial status often used by state departments of insurance

AM Best

if an individual willfully violates provisions of the fair credit reporting act, what is the maximum civil penalty?

$2,500

All of the following are true about Group Life insurance EXCEPT: -The employer is the beneficiary. -It is usually written as annual renewable term insurance. - Evidence of insurability is usually not required. -The employee is the insured.

-The employer is the beneficiary.

An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after a month, for how long would she be receiving benefits under an "own occupation" disability plan?

2 years

a Medicare supplement policy cannot exclude or limit benefits for loss incurred more than how many months before the effective date of the policy?

6

Which of the following provisions is mandatory for health insurance policies?

Physical examination ad autopsy

When may an insurer advertise its membership in Virginia's Life, Accident and Sickness Insurance Guaranty Association?

At no time

What type of account will most likely be established for a minor?

Trust

what is the primary difference between a variable whole life policy and a variable universal life policy?

Variable universal life polices have a flexible premium

dividends received on participating life insurance policies are

not taxable because they are return of unused premiums.

Which of the following policies would have IRS required corridor or gap between the cash value and death benefit?

Universal Life- Option A

Who would be the insured in business disability insurance?

key employees

Which of the following is NOT a unique advantage to the Roth IRA? -Distributions may be deferred beyond the attainment age of 70.5. -Qualified distributions at the time of retirement are not taxed as income. -Contributions are tax deductible. -Contributions may continue beyond attainment age of 70.5.

-Contributions are tax deductible.

Which of the following is NOT a component of an insurance policy premium? -Insurer expenses -Investment return -Number of beneficiaries - Mortality cost

-Number of beneficiaries

If a life insurance policy is going to lapse due to an outstanding policy loan with accrued interest exceeding the available cash value, the insurer is required to provide a written notice to the policyholder how many days in advance?

30 days

If an annuitant dies during the accumulation period, what benefit (if any) will be included in the annuitant's estate?

Accumulated cash value

A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?

Joint and Survivor

Credit disability insurance will pay

Monthly payments until the insured recovers or the loan is paid off.

What is the purpose of the surrender charge in a deferred annuity?

To compensate for loss of investment value

What is the purpose of a benefit schedule?

To state what and how much is covered in the plan

Agent t meets with client g to collect the premium. client g is surprised to find that the amount due is $6 over the actual premium. in which of the following cases would this be illegal?

agent t explains that the $6 fee is an administrative fee

If an employee remains on an employer group health plan within a company that has 20 employees and signs up for Medicare , which of the following coverages will be primary?

employer group health plan

What is another term for a health insurance policy subscriber?

participant

according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

the primary beneficiary died before the insured

Core benefits are included in all Medicare supplemental policies. What percentage of Part B coinsurance is required?

20%

Continuing education must be completed

Even-numbered years.

Who is the premium payor of a creditor group policy?

borrower

Which of the following is the insured's age at the time the policy is first issued?

issue age

An insured is covered under a medicare policy that provides a list of network healthcare providers that the insured must use to receive coverage. In exchange for this limitation, the insured is offered a lower premium. Which type of Medicare policy does the insured own?

Medicare SELECT

What is the Human Life Value based upon?

The Human Life Value approach is based upon loss of income, which would be the loss of the breadwinner's income

If an agent's appointment is terminated, suspended or revoked, the agent must cease selling or soliciting on behalf of the insurer within

10 calendar days

Which of the following is the closest term to an authorized insurer?

Admitted

An insurer incorporated under the laws of another state but doing business in this state is considered

Foreign

All of the following are marketing arrangements used by insurers EXCEPT -Reinsurance System -General Agency System -Direct Response Marketing System -Independent Agency System

-Reinsurance System

In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?

10%

Which rider, when added to a disability policy, pays income during the six-month waiting period before Social Security benefits can begin?

Additional Monthly Benefit

Which of the following statements is INCORRECT? -Medicare and Medigap policies provide coverage for long-term custodial or nursing home care. -Medicare and Medicare supplements does not cover skilled nursing care. -Medicaid does not pay for nursing home care in any case. -Medicare and Medigap policies do not provide coverage for long-term custodial or nursing home care.

-Medicare and Medigap policies provide coverage for long-term custodial or nursing home care.

Which of the following statements is an accurate comparison between private and government insurers?

Private insurers may be authorized to transact insurance by state insurance departments.

Regarding health insurance, all of the following are tax-deductible EXCEPT: -Employer paid group Long-Term Care -Employer paid group Accidental Death and Dismemberment. -Employee paid group disability income. -Employer paid group health insurance.

-Employee paid group disability income.

What does "liquidity" refer to in a life insurance policy?

Cash values can be borrowed at any time

A key person insurance policy can pay for which of the following?

Cost of training a replacement

A tax-sheltered annuity is a special tax-favored retirement plan available to

certain groups of employees only

The termination of marital property rights may be reversed for all of the following reasons EXCEPT -The beneficiary can prove the couple were living together as husband and wife or planning to remarry. -The spouse was named as beneficiary by class. -The divorce or annulment decree or judgement is not recognized as valid. -The spouse named as beneficiary has obtained or consented to a final decree or judgement of an annulment, divorce or separation.

-The spouse named as beneficiary has obtained or consented to a final decree or judgement of an annulment, divorce or separation.

Which of the following is NOT an example of insurable interest? -Employer in employee -child in parent -debtor in creditor - business partners in each other

-debtor in creditor

With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?

only an executive officer of the company

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT -The payments are not guaranteed for life. - The insurer determines the amount for each payment. -It is a life contingency option. -It will pay the benefit only for a designated period of time.

-It is a life contingency option.

Which of the following riders would NOT cause the Death Benefit to increase? -Accidental Death Rider -Payor Benefit Rider -Guaranteed Insurability Rider -Cost of Living Rider

-Payor Benefit Rider

All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT: -Insurers are not required to give customers a copy of the report. -It applies to credit reports ordered in connection with insurance, banking and employment. -The customer must be notified if adverse action is taken as a result of a report -Reports may be sent to anyone who requests one.

-Reports may be sent to anyone who requests one. Credit reports may only be ordered by those involved in insurance underwriting, bank loans or employment, so they cannot be ordered by just anyone.

all of the following are ways to handle risk EXCEPT a. reduction b. transfer c. elimination d. avoidance

elimination

Which of the following is not a component of an insurance policy premium? a. insurer expenses b. investment return c. number of beneficiaries d. mortality cost

number of beneficiaries

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. the policy, however, would not offer either one of these things. what type of misrepresentation is being committed?

twisting

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?

Submit the description in their own words on a plain sheet of paper

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT -Most term policies contain a convertibility option. -Upon conversion, the premium for the permanent policy will be based upon attained age. -Upon conversion, the death benefit of the permanent policy will be reduced by 50%. -Evidence of insurability is not required.

-Upon conversion, the death benefit of the permanent policy will be reduced by 50%.

A licensed agent contract with the insurer is not completely valid unless the insurer has also appointed the agent. Within how many days from the date of execution of the first insurance application must the agent be appointed?

30

An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

currently insured

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? -The death benefit can be increased only when the policy has developed a cash value. -The death benefit can be increased only by exchanging the existing policy for a new one. -The death benefit can be increased by providing evidence of insurability. -The death benefit cannot be increased.

-The death benefit can be increased by providing evidence of insurability.

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

an insured undergoes a minor surgical procedure. the insurer owes the insured $500 in medical claims. However, the last premium $200 due on the policy was never paid. How much should the insured receive in claims?

$300

which of the following is true regarding a joint life annuity? -the payments stop at the first death. -the payments go to a beneficiary upon the last death. -the payments go to the surviving annuitant after the first death. -the payments stop at the first death.

-the payments stop at the first death.

Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after the loss?

90 days

A producer who fails to segregate premiums monies from his own personal funds is guilty of...

Commingling

When agents, brokers, or solicitors handle premiums for an insurer, they are acting in which capacity?

As a fiduciary

The State Corporate Commission(SCC) has the authority to do all of the following EXCEPT: -Issue licenses and certificates of authority. -Impose fines or other penalties for violations of insurance laws. -Have interest in insurance companies regulated by the Commission. -Issue cease and desist orders.

-Have interest in insurance companies regulated by the Commission.

in order to reinstate a life insurance policy the insured must do all of the following EXCEPT: -pay any interest due on back premiums -repay any outstanding loans and interest -pay next year's premium in advance -pay back premiums

-pay next year's premium in advance

to qualify for disability income benefits under social security, an individual's disability must be expected to result in death or last for at least

12 months

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

What must happen when an individual policy or annuity has been personally delivered to the policyowner?

The policyowner must sign a delivery receipt.

all long-term care policy advertisements must be retained by the insurer for at least how many years from the date the advertisement was first used?

3 years

if an insured decides to reduce the coinsurance amount on her major medical insurance, what can the insured expect?

a higher monthly premium

Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract?

Viatical settlement provider

A Universal Life insurance policy has two types of interest rates that are called

Guaranteed and Current