Life and Health Exams focus questions

Which of the following types of health coverage frequently uses a deductible?

Major Medical Policy

The health insurance program which is admnistered by each state and funded by both the federal and state governments is called?

Medicaid

What must be signed by both the producer and applicant when an existing life insurance policy is being reissued with a reduction in cash value?

Notice Regarding Replacement

John recently purchased a Long Term Care policy in Hawaii John's policy does not need to contain

a guarantee issue at age 65

The Legal Actions provision of an insurance contract is designed to do all of the following except

protect the producer

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits?

residual benefit clause

The Consideration Clause of an insurance contract contains

the schedule and amount of premium payments

A disability elimination period is best described as a

time deductible

Insurers may request a hearing within ___ days if their policy is rejected

20

During the course of a business transaction who does the producer legally represent?

Insurance company

Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock?

Misrepresentation

Which of these statements concerning an individual Disability Income policy is TRUE?

Normally includes an Elimination Period

When must a producer deliver a Notice Regarding Replacement of Life Insurance?

at the time of application

which of these is NOT a duty of the producer?

authorize payment of certain claims

Which of the following is NOT a limited benefit plan?

life insurance

Pre-hospitalization authorization is considered an example of

managed care

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

mandatory income tax withholding on the transfer amount

Periodic health claim payments MUST be made at least

monthly

A producer who is a resident in another state but licensed to transact in Hawaii is called a _______ producer

nonresident

P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?

$0. Benefits from individual disability income policies are not taxable unlike employer disability income policies

An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?

$1250 because of the elimination period

Premature IRA distributions are assessed a penalty tax of

10%

A producer must notify the Commissioner within _____ days of a felony conviction.

30

M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force?

45

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits?

5

T applied for a Disability Income policy and has a history of back injuries. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called a(n)

impairment rider

The _________ clause identifies which losses resulting from an accident or sickness are insured by the policy

insuring

An insurer must provide an insured with claim forms within __ days after receiving notice of a loss.

15

Most long term care policies require a __ day free look period

30

When an employee is terminated, how long does this employee have to convert group life insurance to an individual policy?

31 days

What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?

50%

No temporary disability insurance benefits may be payable for ___ days after a period of disability begins.

7

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?

Primary Insurance Amount (PIA)

Which Accident and Health policy provision addresses preexisting conditions?

Time Limit on Certain Defenses

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

Unilateral

All students attending a large university could be covered by

blanket policy

With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's

gross income at the time of purchase

Insurance policies are considered Aleatory because

performance is conditioned upon a future occurrence; and benefit is larger than premiums

Pre-admission Certifications are used to

prevent unecessary medical costs

An incomplete life insurance application submitted to an insurer will result in which of these actions?

returned to the writing producer

A long-term care lapse notice must be delivered to both the applicant and

secondary addressee

All of these are considered to be a benefit of Social Security except

unemployment