Life & Health

The minimum number of credits required for partially insured status for Social Security disability benefits is

6 credits. 40 credits for Fully insured

Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?

Fixed amount

Which is TRUE about the cash surrender nonforfeiture option? a) After the cash surrender, the insured is covered for a grace period of 1 month. b) The policy remains active for some time after the policyholder opts for cash surrender. c) The policyholder receives the original cash value of the policy. d) Funds exceeding the premium paid are taxable as ordinary income.

Funds exceeding the premium paid are taxable as ordinary income.

In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost...

Is not covered. An insurance company will pay the usual, reasonable, or customary amount for a given procedure based upon the average charge for that procedure.

Which of the following best describes annually renewable term insurance?

It is level term insurance.

An insured has a major medical policy with a $500 deductible and a coinsurance clause of 80/20. If he incurs medical expenses of $4,000, the insurer would pay

$2,800.

What is the shortest possible elimination period for group short-term disability benefits provided by an employer?

0 days

A couple buying 7-year LTC policies decides to purchase shared care policies. The husband later gets sick and uses 3 years of LTC benefit before dying. How much LTC is left for the wife?

11 years When LTC policies are written as shared care, that means that a couple gets to split the total benefits of the 2 policies. In this case, the couple had 14 years of LTC total under the shared care policy. The husband used 3 of the years, leaving the wife with 11 years of LTC to use

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?

Pay the death benefit, The incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years, even on the basis of a material misstatement of facts or concealment of a material fact.

What would a physician utilize if he/she wanted to know if a treatment is covered under an insured's plan and at what rate it will be paid?

Prospective review

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Survivor protection

In a group policy, who is issued a certificate of insurance?

The individual insured

Which entity determines the amount of accelerated death benefits that will be paid to an insured?

The insurer

What is the purpose of a Medicare Carve-out or Supplements?

They pay deductibles or copayments that are not paid by Medicare.

According to the proof of loss provision, which of the following must be specified in a contract that provides disability benefits?

When and how an insured may prove a loss

If an association is applying for a life settlement broker's license, which of the following requirements must the association meet? a) Maintain an active life license for at least 1 year b) Establish a board of directors c) Authorize a natural person to act individually as a broker d) Employ a minimum of 10 individual brokers

c) Authorize a natural person to act individually as a broker

Which of the following is NOT true regarding a flexible spending account? a) It provides an opportunity to receive benefits on a pretax basis. b) It is a cafeteria plan. c) It does not have limits on contributions. d) It operates on "use-or-lose" basis.

c) It does not have limits on contributions.

who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

The death protection component of Universal Life Insurance is always

Annually Renewable Term A universal policy has two components: an insurance component and a cash account. The insurance component (or the death protection) of a universal life policy is always annual renewable term insurance.

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization period

When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force?

Insurer

Which of the following is monitored by ERISA? a) Severance pay of less than 2 years b) Stock profit-sharing plans c) Cash bonus plans d) Cash profit-sharing plans

b) Stock profit-sharing plans

The two types of assignments are

d) Absolute and collateral. Absolute assigns the entire policy. Collateral assigns a part or all of the benefits.

HIPAA applies to groups of

2 or more.

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 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?

2 years

COBRA applies to employers with at least

20 employees.

According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage premium that must be applied to actual medical care in a large group health plan?

85%, and 80% in a small group plan

All of the following statements are correct regarding Credit Life Insurance EXCEPT a) Benefits are paid to the borrower's beneficiary. b) The amount of insurance permissible is limited per borrower. c) Premiums are usually paid by the borrower. d) Benefits are paid to the creditor.

Benefits are paid to the borrower's beneficiary.

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

How many pints of blood will be paid for by Medicare Supplement core benefits?

First 3 Medicare supplemental policies cover costs of deductibles and coinsurance for Parts A and B. Since Medicare will not pay for the first 3 pints of blood, a Medicare Supplement plan will cover that. This is considered to be a core benefit.

which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

Insurer's guaranteed minimum rate of interest

your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life

Medicare Advantage is also known as

Medicare Part C Medicare consists of Hospital Insurance protection (Part A), Medical Insurance protection (Part B), and Medicare Advantage (Part C) (formerly known as Medicare+Choice). Medicare Part D is a "stand alone" drug insurance policy for persons who need the coverage and are eligible for Medicare Part A and/or Part B.

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the

Notice Regarding Replacement.

Which of the following best describes taxation during the accumulation period of an annuity?

Taxes are deferred.

All of the following statements about Medicare Part B are correct EXCEPT a) It is a compulsory program. b) It covers services and supplies not covered by Part A. c) It is financed by monthly premium d) It is financed by tax revenues.

a) It is a compulsory program. Part B is elective. Individuals become eligible for Part B at the same time they become eligible for Part A, however Part B requires that a monthly premium be paid.

All of the following would be different between qualified and nonqualified retirement plans EXCEPT a) Taxation on accumulation b) Taxation of withdrawals c) Taxation of contributions d) IRS approval requirements

a) Taxation on accumulation

Long-term care insurance policies must cover which of the following? a) Injuries caused by an act of war b) Alzheimer's disease c) All mental disorders d) Treatment of alcoholism

b) Alzheimer's disease

In which of the following scenarios will repayment of funds take place per the Medicaid Estate Recovery Act? a) The mother of a 10-year-old died after receiving 8 months of Medicaid payments b) Before her death, a 23-year-old was living in a long-term nursing facility paid for with Medicaid funds c) A Medicaid recipient is survived by his wife d) The 22-year-old son of a Medicaid recipient is blind

b) Before her death, a 23-year-old was living in a long-term nursing facility paid for with Medicaid funds Estate recovery cannot take place if the Medicaid recipient, at the time of his or her death, has a surviving spouse, a child younger than 21 or a child who is blind or permanently disabled.

Which of the following statements about group life is correct? a) The premiums are higher than in an individual policy because there is no medical exam. b) The group sponsor receives a Certificate of Insurance. c) The policy can be converted to an individual term insurance policy. d) The cost of coverage is based on the ratio of men and women in the group.

d) The cost of coverage is based on the ratio of men and women in the group.

Which of the following products requires a securities license? a) Fixed annuity b) Equity Indexed annuity c) Deferred annuity d) Variable annuity

d) Variable annuity A variable annuity is considered to be a security and is regulated by the Securities Exchange Commission (SEC) in addition to state insurance regulations.