Exam 1commercial
Which of the following statements regarding home health care is NOT correct?
Most long-term care policies do not provide coverage for home health care
Under a Keogh (HR-10) plan, Employees
Must contribute the same percentage to their eligible employees as they contribute to their own plans
If convicted of violating the fraud and false statement act, an agent may be imprisoned for a maximum jail term of
15 years
Lynn is insured under Medicare Part A and enters the hospital for surgery. Assuming that lynn has not yet tapped into her lifetime reserve, What is the maximum number of days that Medicare will pay for her hospital bills?
150 days
At the age of 34, ben purchased a whole life policy with a guaranteed insurability option. How many opportunities will he have to purchase additional life insurance in the future
2 years. Allowed to purchase at 3-year intervals between 25-40.
If a life insurance policy lapses for nonpayment, within how many years from the date of premium default may the policy be reinstated
3 years
after a hearing, the superintendent can issue an order requiring that person to cease and desist engaging in a practice or method of competition. Anyone who violates a cease and desist order may be subject to up to a
5000 penalty for each violation
An insurer must maintain a policy record for each insurance contract for how many years after the date the policy is no longer in force
6 years
if replacement is involved, the agent must give prospective insured 3 documents in addition to the proposed and existing coverage affected. which of the following is NOT one of the required forms?
A buyers guide
What are members of a group health policy given that shows evidence of insurance ?
A certificate of coverage
which of the following is an eligible class for employer-employee franchise insurance
A group of no fewer than 2 or no more than 25 employees, except that in contributory cases, 75% of the number eligible may not exceed 25
Which of the following statements about the grace period and reinstatement provisions in a health insurance policy is correct?
A policy that has lapsed may be reinstated. To protect insurer against adverse selection, losses resulting from sickness are covered only if the sickness occurs at least 10 days after the reinstatement date. Losses due to accidental injury are covered immediately upon reinstatement of the policy.
Which of the following terms best describes the maximum length of time that disability income benefits will be paid to the disabled insured
Benefit period
Which of the following organizations reimburses its insureds for covered medical expenses
Commercial Insurers
Lynn elects to surrender her whole life policy for a reduced paid-up policy. The cash value of her new policy will
Continue to increase
All of the following are purposes of juvenile insurance EXCEPT
Covering the medical expenses of a child
An employer may use all of the following methods to provide benefits under New York's Disability Benefits Law EXCEPT:
Helping employees to obtain individual coverage with insurers of their choice
Medicare plans K and L are characterized by which of the following features
Higher coinsurance contributions
As a result of the health insurance Portability and Accountability act (HIPAA), which of the following is NOT guaranteed medical coverage?
Individuals who have has their coverage canceled for nonpayment of premiums
Which annuity settlement arrangement guarantees to pay at least a minimum amount equal to the original investments?
Installment refund annuity
Which of the following best describes the basic purpose for the facility-of-payment clause found in some life insurance policies?
It authorizes the insurer to designate the payee of the life insurance death benefits in the designated beneficiary cannot be located
Which of the following statements regarding the estate tax treatment of life insurance owned by the insured at the insured's death is NOT correct
Life insurance that is owned by the insured will avoid estate tax inclusion as long as ownership is transferred to another party at least 1 year before the insured's death
which of the following statements regarding limited pay life insurance is NOT correct
Limited-pay policies mature more quickly than do continuous premium while life policies
Excepted benefits are not included as minimum essential coverage. Which of the following is not an excepted benefit
Medicare
State long term care insurance partnership programs are a joint effort of all of the following EXCEPT
Medicare
Universal life is distinguished from whole life insurance in that?
Partial withdrawals can be taken from the cash value account
Basic hospital expense insurance provides coverage for all of the following EXCEPT
Physician services
Concerning mutual insurers, which of the following statements is CORRECT?
Policy Holders may participate in dividends.
The party to whom the life insurance policy cash values belong is
Policyowner
Which of the following is NOT a characteristic of an insurable risk?
Premeditated
The purpose of the LTC security demonstration project is to?
Provide New York residents with affordable long-term care insurance and the possibility of qualifying for Medicaid protection under favorable terms.
Jasmine is covered under her employers health plan. She is called to active military duty, Upon her return, which of the following statements regarding her coverage is CORRECT
She will be fully covered, without the need to provide proof of insurability
All medicare supplement policies must cover 100% of the part A hospital coinsurance amount for each day used from
The 62st-90th day in any medicare benefit period
Which od the following statements regarding the medical reimbursement benefit available in some individual disability income policies is CORRECT?
The benefit is a % of the monthly income benefit
Which of the following statements about the ACA us TRUE?
The health care law includes reforms to the affordability, availability, and quality of health insurance
In which of the following situations would an accidental death and dismemberment(ADD) policy most likely NOT pay a benefit
The insured injures a finger while using a chainsaw in his workshop
During the accumulation period of a deferred variable annuity, the value of the individual account rises or falls based on
The investment results
which of the following statements regarding Medicare supplement insurance in INCORRECT
The number of standard Medigap plans changes every year
In addition to the buyers guide, what must be delivered to an applicant or insured either with or before the delivery of a life insurance policy
The outline of coverage
Patrick owns an adjustable life policy. which of the following statements is CORRECT?
Upon showing evidence of insurability, Patrick can increase the face amount of his policy
Long-Term care policies can limit or exclude coverage for all of the following except
a family history of a heart condition
In disability income insurance, an elimination period is?
a period of days following the start of a disability during which benefits are not payable
An individual life insurance policy must include all of the following EXCEPT
a table showing the annual loan values of the policy for at least 30 years
An insurance consultants compensation must be based on
a written memorandum that is signed by the party to be charged
in order to be insured, a group must be randomly selected to avoid
adverse selection
Exclusions for pre-existing conditions help to avoid?
adverse selection against an insurer
If an employer pays all the premiums for a group life insurance policy, the policy must insure
all eligible employees
An agent that represents only 1 insurance company is known as
an exclusive or captive agent
All of the following statements regarding a hospital indemnity plan are correct EXCEPT
another name for the plan is a hospital expense plan
All of the following are directly related to ERISA EXCEPT
assistance with Medicare
What type of annuity payment option provides a guaranteed income to the annuitant for life and, if the annuitant dies before the annuity is depleted, a lump-sum cash payment to the annuitants beneficiary?
cash refund option
Major medical policies may include any of the following types of deductibles EXCEPT
decreasing
A guaranteed insurability rider may be attached to which of the following policies
disability income
Pedro is hospitalized with a back-injury and upon checking his disability income policy, learns that he will not be eligible for benefits for at least 60 days. His policy probably has a 60-day
elimination period
loaded premium
gross premium
An applicant may qualify for a license as a non resident only if her
holds a similar license in another state or foreign country
Which of the following statements about a modified whole life policy is NOT correct
it as basically an endowment policy
All of the following types of life insurance are exempt from the regulations concerning replacement EXCEPT
limited pay life insurance
cash value loan
loan from insurer to the policy owner. A comparable portion of the policys cash value is used as collateral to secure the loan.
Miguel works for a mutual insurance company that was formed to handle the insurance needs of lawyers. the type of company that Miguel works for is called
risk retention group
Which of the following statements pertaining to term insurance is CORRECT
term insurance provides protection for only a temporary period
Upon the issuance of a life insurance policy , an insurable interest must exist between
the applicant and the insured
The payor benefit typically premiums on a juvenile policy if
the person who pays the premium dies or becomes disabled before the insured child reaches a certain age
An example of a state-administered disability program is
workers' compensation
Ron is eligible for full death, retirement, and disability benefits under Social Security. his work status is
Fully insured
Which of the following statements pertaining to executive bonus plans is CORRECT?
The employee has access to the policy's living benefits
in contrast to traditional whole life insurance policies, with variable life insurance products
contact cash values are not guaranteed
Under Medicare Part A, the participant must pay his deductible
once per benefit period
which life insurance policy provision refers to the prompt payment of death benefit
payment of claims
which of the following situations constitutes an insurable interest
the policy owner must expect to suffer a loss when the insured dies or becomes disabled
Which of the following was the primary purpose of HIPAA
to expand coverage eligibility to many people that are uninsured