Health and Life part 2

In which of the following lines of insurance would a producer be allowed to bind coverage?

Property and casualty

All of the following are considerations under the needs approach planning for life insurance EXCEPT

Insured's income

Who makes up the Medical Information Bureau?

insurance companies

HMOs are known as what type of plans?

service

All of the following are features of catastrophic plans except

High premiums

All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT

An association of 35 people

Under a group medical policy, prescription drug plans are

Optional benefits

In insurance, what is the term used for cause of loss?

Peril

Who determines if a particular group of employees can be excluded from group health coverage

The employer

Life insurance creates an immediate estate. Which of the following best explains this statement?

The face value of the policy is payable to the beneficiary upon the death of the insured

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 portion of a nonqualified annuity payment is taxable?

Interest earned on principal

An employee is on an extended leave of absence when the employer group health plan changes from one carrier to another. Before the employee returns to work, what might the employer most likely notice?

Limited Coverage

If a life insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of this procedure?

Prior to performance of the test

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association

Has been active for 5 years minimum

All of the following statements are true regarding an Ordinary straight life policy EXCEPT

It does not have a guaranteed death benefit

All of the following statements about mutual insurance companies are correct EXCEPT

Policy dividends issued by mutual companies are guaranteed and not taxable

On an AD&D policy, the death benefit payable is known as the

Principal sum

If the insurance premiums were not tax deductible, what other taxation will this affect?

Taxation of benefits

All of the following are true of nonqualified deferred compensation plan EXCEPT

Contributions are tax deductible

An insurer mails an insurance policy to a new policy owner. When the insurer relinquishes control of the policy, the policy is considered

Delivered

Your client wants to provide a retirement income for his elderly incase something happens to him. He wants to make sure both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner elect?

Joint and survivor

An insurer appoints a producer on January 2nd, by which date must the insurer file a notice of appointment?

January 17th (15 days)

What is it called when the doctor accepts the Medicare approved amount?

Assignment

Which of the following best describes life annuity with period certain option?

It guarantees benefit payments for life of the annuitant and for a specified period for the beneficiary

Which of the following is NOT true of the agents implied authority?

It is specifically stated in the contract

A whole life policy that will generate immediate cash value is a

Single premium policy

All of the following are true regarding the waiver of cost insurance rider EXCEPT

The rider expires when the insured reaches age 60

An employee that becomes ineligible for group coverage because of termination of employment, or change in status, must exercise extension of benefits under COBRA

within 60 days

Which of the following best describes pure life annuity?

It provides the highest monthly benefit

An employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continues to receive coverage under the plan. Which of the following explains the reason for continued coverage?

The employee is totally disabled

A distribution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within

60 days

According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report

How many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?

30 days

Who would be allowed catch-up contributions?

Individuals age 50 or older

When an insured terminated membership in the insured group, the insured can convert to

Whole life without proof of insurability

Who does the spendthrift clause in a life insurance policy protect?

The Beneficiary

Which of the following best defines the unfair trade practice of rebating?

Offering an inducement of something of value not specified in the policy

How many tiers must be included in each treatment category of a medical prescription drug plan formulary?

2

An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days f the initial request?

3 days

Cash value guarantees in a whole life policy are called

Nonforfeiture values

Which of the following statements is true regarding coordination of benefits provision

If the primary and secondary plans cannot agree on the order of benefit payment within a specified amount of time both plans will pay in equal shares

Policy Delivery refers to the delivery of the

Completed insurance policy to the policyowner

Every Medicare supplement policy must have a notice to buyer on the front page that states which of the following?

This policy may not cover all of your medical expenses

Your client is sole proprietor and wished to include his family on a medical expense plan. How much of the cost of medical expense plan can be deducted (since he is considered self employed)

100%

Under the mandatory uniform provision Legal actions. An insured is prevented from bringing a suit against the insurer to recover on health policy prior to

60 days after written proof of loss has been submitted

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 is the distinguishing characteristic of the interest-adjusted net cost method

Considering the time value of money in comparing life insurance costs

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

Intermediate care

Contributions to Roth IRA's are

Not tax deductible

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan

Immediately

To qualify for disability income benefits under social security, and individuals disability must be expected to result in death or last for at least

12 months

Which of the following is true regarding pure life annuity settlement option?

It provides the highest monthly benefit

Insurer XYZ terminated the appointment if an insurance producer on July 1st. By what date must the insurer notify the commissioner of the termination?

July 31st

Under which of the following conditions would life insurance proceeds be taxable by the federal government?

If there is a transfer for value

An insured's hospital policy states that it will pay him a flat fee of $75 per day for each day he is hospitalized. The policy pays benefits on what basis?

Indemnity

If the annuitant dies before the annuity start date, which of the following is true?

The interest is taxable