Life and health

If the commission sets a date for a hearing on a suspected violation of the insurance laws or regulations, it must give the party charged with the violation at least how many days notice before the hearing?

10

To be fully insured under social security how long must one work?

10 years

Ralph's AGI is $100,000. His unreimbursed medical expenses are $11,000. He also paid $10,000 for health insurance premiums. How much is Ralph's medical expense deduction?

11,000 (100,000 X 10% = 10,000)(11,000+10,000 - 10,000) = 11,000

How many standard provisions did the NAIC develop for use in health insurance policies

12

How many days until insurance company must mail a copy of the termination notice?

15 days

A copayment provision requires the insured to pay a percentage of the covered costs, which typically is:

20 to 30 percent

How long must you keep all insurance transactions

3 years

How many days to comment after termination?

30

How many days to return a Medicare supplement policy for a full refund?

30

How many days to submit your new business address to the commission

30 days

Insurance company must either reject the application or appoint Derek its agent no later than

30 days

How many days to correct change or delete personal information

30 days after request

Medigap and LTC insurance free look period

30 days each

What is the typical grace period length

31 days

How many years must you keep advertisement records

4 years

What fits category of small employer for group insurance

49 employees 2 of whom are related

after the deductible is paid, the insured can expect medicare part A to cover all eligible hospital expenses without a copayment for up to

60 days

to be credited against an exclusionary period for pre-existing conditions, a coverage period cannot have a break in coverage that lasts:

63 days or more

An individual may continue group health insurance coverage after termination from a group plan for at least how many days?

90

How long does the insured have to give written proof of loss to the insurer?

90 days

Which of the following statements regarding variable annuity annuitization is correct?

Annuitization under a variable annuity contract provides income payments that can fluctuate up or down

Which statement about maximum benefit periods in disability income policies is correct?

Benefit periods in short-term disability income policies are limited to two years or less

which statement describes the "pool of money" approach to benefits under a long-term care insurance policy?

Benefits are defined as a total sum of money from which money can be drawn in any amount for as long as the money lasts

Dental plan with diagnostic and preventive care

Category 1. Category 2 is fillings extractions and periodontal treatment

Dave receives Social Security retirement benefits. His wife Cathy is still working. Which statement about Cathy's Social Security spousal benefit is correct?

Cathy can choose either the spousal benefit or the worker's benefit.

Which statement about Roth IRA is correct?

Contributions to Roth IRA cannot be deducted

Which level of long term care can you see in assisted living, adult day care, respite centers, or a person's home

Custodial care

When must agents licensed in Virginia complete continuing education?

December 31 of every even-numbered year

Purpose of the insuring clause is to:

Describe the type and scope of coverage

Which of the following statements regarding the life insurance needs analysis is correct?

Determining the ongoing income needs of surviving dependents is a critical part of the needs approach to life insurance needs analysis

Which federal law regulates group health plans and protects their enrollees?

ERISA

Which of the following statements about section 457 qualified plans is correct?

Earnings accumulate tax deferred

Which of the following statements best describes how employer-paid premiums for a nondiscriminatory group life insurance plan are treated for tax purposes?

Employers can deduct premiums paid on a group life insurance plan

How often must you fulfill continuing education

Every 2 years

An agent whose license is revoked in Virginia cannot apply for another license for how long?

Five years

In a front-end loaded universal life contract, when does the insurer deduct a charge to cover the costs of administering the policy?

From the premium payment before it is credited to the policy's cash value

Which of the following statements about IRA rollovers is correct?

Funds can be rolled over tax free from one IRA to another

Which of the following most correctly describes death benefit Option 1 of a universal life insurance policy?

It has a level death benefit, equal to the cash value and a net amount at risk that decreases at the same rate that the cash value increases

Which Provides health insurance coverage?

Medical Expense Plan (MEP)

What was the forerunner to the health savings account

Medical savings account (MSA)

Medicare supplement insurance policies supplement coverage of which Medicare part?

Medicare parts A and B only

Fifth dividend option

One-year term life insurance equal to the base policy's cash value or the amount that the dividend can purchase

Which of the following would be a rebate to policyholders

Payment of part of the commission

What is another name for the annuitization phase of an annuity contract

Payout stage

A major medical expense policy requires the insured to pay separate deductibles for each illness or each accident. What type of deductible does it have?

Per cause deductible

If someone contributes to IRA and other doesn't, what is true?

Person who contributed will have lower income tax

The fact that ownership of a health insurance contract cannot be transferred to another party makes it what type of contract?

Personal

Which of the following explains why a traditional waiver of premium rider does not work with a universal life insurance policy?

Premium amounts for a universal life policy are flexible, whereas they are fixed traditional life insurance policies

Amount paid for death under AD&D

Principal sum

Which statement about SEP is correct

SEP plans do not accept employee contributions

Grace owns a fixed annuity and wants to exchange it for a variable annuity. What must she use to be sure no taxes are imposed?

Section 1035 exchange

All of the following statements about family term riders with life insurance are correct EXCEPT:

Spouses are provided more coverage than children under a family term rider

A currently insured worker is eligible for which of the following Social Security benefits?

Survivor death benefits only

what must you prove in a viatical settlement

Terminal or chronical illness

In general, all settlement options with a life contingency base payments on which of the following?

The beneficiary's life expectancy

What is the main difference between a traditional deferred compensation plan and a salary continuation plan?

The covered employee does not defer compensation with a salary continuation plan

what does the life insurance company do upon an insured's death if there is a collateral assignment attached to the insured's policy?

The insurer pays the collateral assignee the balance of the loan still owed out of the death benefit, and the rest of the death benefit goes to the beneficiary

What will happen if the outstanding balance of a whole life insurance policy loan, including accrued interest, ever exceeds the policy's cash value?

The insurer will cancel the policy

All of the following statements about the net premium for a traditional life insurance policy are correct EXCEPT:

The net single premium for a traditional life insurance policy is the amount actually charged to the policyowner who wants to purchase the policy with a single premium payment

What is the primary difference between a revocable and an irrevocable beneficiary?

The policyowner's ability or inability to change the beneficiary designation

What will cause a health insurance policy to lapse?

The premium is not paid by the end of the grace period

Who completes an attending physician's statement (APS)

The proposed insured's doctor, who is familiar with how the medical condition is being treated

All the following statements regarding the "spendthrift clause" of a life insurance policy are correct EXCEPT:

The spendthrift clause keeps beneficiaries from claiming any death benefits until the insurer checks their personal and business credit histories

Which statement about deferred annuity surrender charges is correct?

The surrender charge percentage typically decreases over the surrender charge period

Under the transfer for value rule, the portion of a life insurance death benefit recognized as taxable income is calculated in which of the following ways?

The taxable gain is calculated as the death benefit minus the purchase price and minus premiums paid by the new owner

Endowment contracts are NOT considered life insurance (for tax purposes) because:

They endow before age 120

Which statement about disability buy out insurance policies is correct?

They may be used with either a cross-purchase buy-sell agreement or an entity purchase buy-sell agreement

Employees are NOT permitted to enroll in a group health insurance plan when:

They sustain an injury or illness that requires medical attention

In setting premiums for a new policy, when do actuaries assume those premiums will be paid?

They will be paid in full at the beginning of the policy year

Life insurance policies issued in Virginia must provide for policy loans from cash value if they have been in force for at least how many years?

Three

What can be covered under 259?

Tuition and mandatory fees

The Virginia insurance Guaranty Association does NOT protect risks associated with what type of insurance?

Variable life insurance

what happens if you fail Virginia insurance agent's exam 3 times

Wait 30 days

Which statement correctly describes the transfer-for-value rule in life insurance taxation

When life insurance policies are sold to another party, the beneficiary may be subject to income tax on the death benefits, but only to the extent of the policy's gain

Which is most correct about variable life insurance

With a variable life insurance policy, the policyowner assumes most of the investment risk

Lottery winners who want to receive their winnings in installment payments over a 20-year period will most likely be set up with:

a structured settlement, using an immediate fixed annuity, that guarantees the distribution of payments over the specified period

Once the insured has triggered the benefits of a long-term care insurance policy, when will they begin

after the elimination period

Catch up contributions to a traditional IRA

age 50 or older

Disability income insurance policies sold to those in blue-collar occupations typically use which definition of total disability

any occupation

How many days do you have after leaving a group plan to buy individual plan without evidence of insurability

apply within 31 days of leaving the group

Which is NOT a benefit option common to section 125 cafeteria plans

child day care

What type of life insurance to insure the declining balance of a home?

decreasing term

Guaranteed insurability riders are typically found in

disability income

When a person exhausts health insurance coverage under COBRA, HIPAA guarantees that the person will:

have access to a guaranteed-issue individual health insurance policy, regardless of health

What forms the basis of a health savings account

high-deductible, high out of pocket cost insurance plan with a tax favored savings account

An insurer would use which of the following to limit or exclude coverage for an applicant's health condition

impairment rider

The time limit on certain defenses provision in a health insurance policy is like which provision in a life insurance policy?

incontestability clause

A group short term disability income plan (STD) typically has a maximum benefit period of

less than 2 years

What type of life insurance company is owned by the policyowners?

mutual company

Best health insurance while someone is unemployed

nonrenewable term policy

suicide exclusion period

one to two years

The purpose of the social insurance supplement (SIS) rider on a disability income (DI) policy is to:

pay additional monthly benefits until Social security disability benefits begin

Which of the following settlement options does NOT include a life contingency?

period certain-only option

With interest-sensitive whole life insurance policies, insurers may change premium rates after reviewing their investment experience in a process called

redetermination

An insurer can defer a policy loan for up to:

six months

An insured files a notice of claim but the insurer fails to provide the necessary forms to file the claim. What should the insured do to file the claim?

submit a written statement describing the loss

A business overhead expense policy does NOT provide

tax-free benefits

The cancellation provision allows an insurer to cancel a policy at any time with 45 days' notice. This 45-day notice requirement also applies when:

the insurer refuses to renew the policy or charges the premium

Which statement is correct about interest earnings within an individual's qualified plan account?

the participant pays no income tax on the earnings while accruing in the plan but will have to pay tax on them whenever and however they are withdrawn

What part of employer-funded group life insurance coverage- if any - is tax exempt for employees

the value of the first $50,000 of coverage