Financial
an employee has a Flexible Spending Account (FSA) with a $5,000 annual benefit. this year the employee used $3,000. what would be the amount of the benefit available to the employee next year?
$5,000
which of the following is an example of physical hazard?
Diabetes
which of the following best describes the type of care provided by HMOs?
Preventive
cash value guarantees in a whole life policy are called
nonforfeiture values
when acting as a field underwriter, a producer is
seeking credible information about an applicant for health insurance
in contrasting stock insurers with mutual insurers, which statement is true?
stock insurers are owned by the shareholders and issue nonparticipating policies
if the annuitant dies before the annuity start date, which of the following is true?
the interest is taxable
an illustration used in the sale of a life insurance policy must include a label stating
"Life insurance illustration"
which of the following best describes pure life annuity?
it provides the highest monthly benefits
an applicant completes and application for a disability policy and pays the initial premium. the producer gives the applicant a conditional receipt. insurance coverage for the applicant will become effective when
the insurance company accepts the risk
a guarantee universal life policy has all of the following EXCEPT
cash value
Regarding the PPACA health care tax credit, which of the following is true?
persons receiving Medicaid are not eligible
if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?
prior to performance of the test
what does the application of contract of adhesion mean?
since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured
what is the only difference between blanket insurance and group health insurance?
the insured members are not named
all of the following are true regarding the waiver of cost of insurance rider EXCEPT
the rider expires when the insured reaches age 60
what is the purpose of a benefit schedule?
to state what and how much is covered in the plan
which of the following services is not provided by an HMO?
unlimited coverage for treatment for drug rehabilitation
all of the following are true of annually renewable term insurance EXCEPT
proof of insurability must be provided at each renewal
if an insured purchases an insurance policy with a large deductible, what risk management technique is the insured exercising?
retention
in an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?
$2,500
according to the life insurance replacement regulations, which of the following would be an example of policy replacement?
a policy is reissued with a reduction in cash value
which of the following is NOT an example of the company's location of incorporation?
authorized
when filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available, what could the applicant do to properly correct the mistake?
cross the incorrect answer out, write the correct one beside it, and initial the answer
if a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?
supplementary major medical
which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?
the application contains material misstatements
what are the continuing education requirements for agents who market long-term care insurance policies?
8 hours of long-term care specific education included in the regular CE requirements.
which of the following would describe the difference between a blanket life insurance policy and a franchise policy?
blanket policy does not name individual insureds
what is the purpose of the gatekeeper in an HMO?
controlling costs
HMO members pay a small fee when they see their primary care physician. this fee is called a
copay
which of the following is the primary source of information that an insures uses to evaluate an insured's risk for life insurance?
insurance application
which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed with a terminal illness that will result in death within 2 years?
living needs rider
which risk classification is representative of the majority of people in a certain age group and with similar lifestyles?
standard
which of the following is true regarding a joint life annuity?
the payments stop at the first death
all of the following are general requirements of a qualified plan EXCEPT
the plan must be temporary
all of the following are true of the Survivorship Life policy EXCEPT
the premium is based on the age of each individual
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 used to be called Medicare + Choice Plans?
Medicare Advantage Plans
which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
an Accidental Death Rider
which of the following is a correct statement about annuities?
fixed annuities do not provide protection against inflation
Where are premiums from fixed annuities invested?
general account
statistical probabilities of loss for a particular class of insureds is best predicted when the insured group is
larger
which of the following will be eligible for tax-sheltered annuity?
public school teachers
once the initial benefit limit in Medicare Part D is reached, how is the beneficiary affected?
the beneficiary is then responsible for a portion of prescription drugs costs
under the Family Medical Leave Act, what happens to an employee's insurance benefits while he/she is on leave?
the benefits earned remain in effect for the duration of the employee's leave
an individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a LTC facility. his agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT
acute
which of the following types of care could be provided at a community center?
adult day care
an underwriter is reviewing an applicant with an extensive medical history. which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?
attending physician's statement
which of the following statements is NOT true regarding HICAP?
it exists to assist seniors who are not qualified to receive Social Security or Medicare
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
all of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT
an association of 35 people
when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
extended term
which of the following actions does NOT constitute false advertising?
stating that dividends are not guaranteed
if an applicant's health is poorer than that of an average applicant, the policy may be issued
substandard
a medicare supplement policy must have a free-look period of at least?
30 days
policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to
6 months
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
when assessing needs for life insurance, an individual may use retention, which means
maintaining assets at death
when may HIV-related test results be provided to the MIB?
only if the individual is not identified
per the California Insurance Code, the best definitions of "shall" and "may" are
mandatory and permissive
a qualifying retiree has access to all parts of the Social Security Medicare program. which of these parts requires a monthly payment from the insured?
Part B
which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?
intermediate care
underwriters use all of these methods to protect the insurer against adverse selection EXCEPT
only accepting a small percentage of applicants
on an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known as the
principal sum
a limited health insurance policy that will pay a lump sum to an insured diagnosed with heart attack, stroke, or renal failure is known as
critical illness insurance
all of the following must sign an application for health insurance EXCEPT the
Insurer
