Big Exam

Fraud

An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of

Master Policy

An employer is issued a group medical insurance policy. This simple contract is known as a(n)

Age

An error was made on Mary's life insurance application. Which of the following areas do errors commonly occur on application and for which the incontestable clause does NOT apply.

root canal

An example of endodontic treatment is a

Coinsurance

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called

When becoming eligible for Medicare

An individual can enroll in a Part C Medicare Advantage Plan at what time

an agent who changes fees for advice

An insurance consultant is BEST defined as

$5000

An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? $500 $5,000 $5,400 $5,600

Partial Surrender

An interest sentive life insurance policy over may be able to withdraw the policy's cash value interest fee. The provision that allows that is called

70% actuarial level of coverage provided

As classified by the Affordable Care Act (ACA), a Silver Plan offers

A 70 year old Not elegible for Social Security

Part A hospitaL expense coverage provided under Medicare is automatically made available fo each of the following EXCEPT

Equity Index Whole Life

Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this?

Universal life

Reggie purchased a life insurance policy with a face amount of $500,00. After 15 years, the cash value has

policy owners from misrepresentations and loss of benefits

Replacement regulation is designed to protect

$500,000

Rob purchased a standard whole life with $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be

long term care

Someone needing custodial care at home would require which type of coverage?

seeks temporary protection and lower premiums

Term insurance is appropriate for someone who

Agent

The _____ is responsible for determining the appropriateness of a Medicare Supplement policy for. an applicant

less

The amount received for a life insurance policy in a life settlement that the death benefit

individual plan upon employment termiation

The conversion privilege under a group life plan allows an employee to convert to a(n)

Insurer

The identity of the _________ must be made clear in every health insurance advertisement.

lower than the typical whole life policy during the first few years and then higher than typical for the remainder

The premium for a Modified whole life policy is:

avoid overpayment of claims

The purpose of the Coordination of Benefits provision in group accident and health plans is to

The shorter the payment period the higher the premium

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is

Pre-death distributions will become taxable

Under a Modified Endowment Contract, what are the likely tax consequences?

certificate

Under a group life policy, the insurer will issue an individual ________ to the policy owner for delivery to each person insured

employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan

Under the health Insurance Portability and Accountability Act HIPAA, the employee's new Group Health Plan will verify Creditable Coverage so that the

upon distribution

Under the traditional IRA, interest earned is taxed

An amount the premium would have purchased at the correct age

What amount will be paid under a policy where the insured misstated his/her age?

Peril

What is known as the immediate specific event causing less and given rise to risk?

renewal

What is the automatic continuance of insurance coverage referred to as?

Entire Contract

What is the name of the provision which states that a copy of the application must be attached to the policy when issued?

Last survivor life insurance

What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death?

the greater of the accumulated cash value or the total premium paid

What will the beneficiary receive if an annuitant dies during the accumulation period?

level premiums

When a decreasing term policy is purchased, it contains a decreasing death benefit and

Human Life Value Approach

Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependants?

Term

Which of the following insurance policies does NOT build cash value?

on the job injury that was both intentional and self-inflicted

Which of the following is NOT covered by New York workers compensation laws?

pain and suffering

Which of the following is NOT covered under Worker's Compensation?

how to take legal action against an insurance company

Which of the following is NOT information found in a life insurance buyer's guide?

27 year old married child

Which of the following is NOT on eligible dependent on an Accident and Health policy?

collecting premiums and remitting them to the insurer

Which of the following is an example of an agent's fiduciary duty?

application

Which of the following is included in the entire contract according to the entire contract provision?

Private insurance companies

Which of the following provides Medicare supplement policies?

Defamation

Which of the following unfair trade practices involves an agent who makes public malicious statements about an insurer's financial condition?

Completing all applications and collecting initial premiums

Which of the following would be considered an underwriting duty of an agent?

Pre-death distributions are typically taxable

Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test?

Medicare in hospital deductible

Which of these in Medicare coverage is addressed with Medicare Supplemental insurance?

Falsifying the terms, benefits, advantages, or conditions of an insurance policy.

Which of these is considered to be an act of misrepresentation?

loss of a leg or a arm

Which of these would NOT be considered a presumptive disability?

Hazard

Which to the following is considered to be an event or condition the increases the probability of an insured's loss

Business overhead expense policy

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?

Because dividend are considered to be a return of premium

Why are dividend from a mutual insurer not subject to taxation?

Deductible payments for the first 60 days of hospitalization under Medicare hospitalization insurance

All of the following are core benefits of Medicare Supplement Plan A EXCEPT

Stock Purchase

All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT

accidental death

All of these are common exclusions to a life insurance policy EXCEPT

referring insurance

An agent license is NOT elegible for

obtain referrals to specialists from primary care physicians

The gatekeeper's role when used by an HMO is

duplicate Medicare benefits

A Medicare Supplement policy must NOT contain benefits which

for nonpayment of premiums

A Medicare supplement plan can be canceled by the insurer

A life insurance contract which accumulates cash values higher than the IRS will allow

A Modified Endowment Contract (MEC) is best described as

The policy loan value which the insurance may borrow against

A Whole Life insurance policy accumulates cash value that becomes

normally at any time during the policy term

A beneficiary change can occur

Normally at any time during the policy term

A beneficiary change can occur_____

no federal income tax is owned on life insurance proceeds

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed?

fraud

A client told an intentional lie to a insurer in order to receive a favorable premium. This is an example of

Benefit limits

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing

Limited payment insurance

A life insurance policy that has premiums fully paid up within a stated time period is called

joint

A life insurance policy written on one contract for two people in which it is payable upon the first death is called

licensed to negotiate a life settlement contract

A life settlement broker is someone who is

irrevocable beneficiary

A policy owner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation?

Adjustable life

A policyowner may change two policy features on what type of life insurance?

Partial Disability

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?

without producing proof of insurability

A renewable Term Life insurance policy allows the policy owner the right to renew the policy

a policy that is paid up after only one payment

A single premium cash value policy can be described as

Silver Plan

According to the Affordable Care Act ACA what metal tier is required to have an actuarial value 70% with covered individual paying 30% through deductibles co-pays, and other cost sharing features?

March 23, 2010

According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan?

she may need to resume premium payments depending on actual results

Carol filled out a life insurance application and was given a policy illustration that showed future premium being paid out of non-guaranteed values. This illustration MUST disclose that

skilled nursing care

Continuous 24 hour care provided by licensed medical professionals under the direct supervision of a physician is called _______.

help pay off existing loans during periods of disability

Credit Accident and Health plans are designed to

provide coverage for a home mortgage

Decreasing term life insurance is often used to

Noncancellable

Disability income plans which require that the insurer can NEVER change or alter premium rates are usually considered

Tax Free

Distributions from a Health Savings Account HSA for qualified medical expenses are

Policyowner

During the accumulation period, who can surrender an annuity?

skilled nursing, intimidate and custodial care

Generally speaking, which three levels of care are Long Term Care polices provided with?

the premium paid plus interest earned will be given to the beneficiary

If the annuitant dies before the annuity start date

guarantee

In NY a long term are policy must be ______ renewable

60% benefit

In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at ____

Transference

Insurance represents the process of risk

Child term rider

Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?

$700.00

Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500? (1500x80%= 1200 1200-500=700)

Temporary Annuity Certain

Kristi purchases an annuity that will pay her husband an income for 15 years, If he dies this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity?

there must be legal reasons for entering into the contract

Legal purpose is a term used in contract law required meaning

equal the face amount of the policy

Level premium permanent insurance accumulates a reserve that will eventually

Medicare is the second payer

Mark continues working after the age of 65 and is covered through the employer's group health plan. Which of the following statements is true?

medical and hospitalization expenses

The focus of major medical insurance is providing coverage for

10 days

The free look period in New York for individual health insurance is _______ days

Asset Protection

The difference between a Long Term Care Partnership Plan and a Non-Partnership Plan is which of the following

accident

The double indemnity provision in a life insurance policy pertains to an insured's death cause by an