MD Accident, Health & Life Exam B

ben's policy will pay his beneficiary the full benefit

ben, a 55 year old army captain, has a $100,000 life policy. without a war clause. if ben is killed in the line of duty at war what will his beneficiary receive from his policy?

the probationary period

which of the following will change the grace period of a policy?

job interest

which of the following would not be considered in determining the total disability of any occupation?

adult day care

which type of LTC pertains mostly to the care of functionally impaired adults?

decreasing

which type of protection is most frequently associated with credit life?

human relations commission

who has jurisdiction with the commissioner over alleged discrimination factors?

to avoid losing tax advantages

why does the corridor of a universal policy raise the death benefit?

noncontributory

100% of the employees must participate in an employer's plan if it is:

COBRA

a group of more than 20 employees would have ________ available in any state.

6

a pre-existing condition, is a condition for which an employee has sought medical advice, diagnosis, or treatment within the previous ________ months

insurance and a cash account

a universal life policy has 2 main components. what are the components of the policy?

seperate account

a variable whole life policy has an investment feature. what is the sub-account with this policy called?

the medical information bureau

information concerning an applicant's prior health is generally provided to an underwriter by:

fee for service

which of the following is a payment system for health care when the provider is paid for each of their services?

variable

all of the following correctly apply to a life policy that provides a straight $50,000 of coverage for a period of 3 years except:

evidence of insurability may be necessary if coverage is increased

which of the following is a true statement regarding an adjustable life policy?

an economic interest exists for the continuance for an insured's life

in reference to life insurance and contract law, a person most likely will have an insurable interest in insuring a person's life if:

principal

carl was repairing his neighbor's roof and he fell off the ladder and received severe injuries. he broke his leg and a head trauma cause total blindness in both of his eyes. carl's policy has an accidental death and dismemberment rider. what benefit will carl receive?

70%

in regard to a short term disability employer plan, what percentage of an employee's income would generally be covered?

general account

which of the following is not associated with variable annuity?

elimination period

disability benefits are not paid during which period?

presumptive

what disability policy covers total hearing loss?

30 months

an employer is required to provide their health coverage to an employee with kidney disease for how many months before medicare becomes primary coverage?

$1,000 or less

an industrial life policy has a face amount that is:

an applicant's statements on an application are considered warranties

an insured's representations and warranties are incorrectly stated in which of the following statements?

domestic insurer

an insurer which operates in this state and is incorporated in this state is considered to be:

until his disability ends or his debt is paid

before joseph became disabled he bought a credit disability policy. until what point will his creditor make his payments?

lump sum death benefit settlement

being tax free is associated with which of the following?

high deductible

ed wants a health savings account with his employer. what kind of insurance plan will be most likely associated with the HSA?

automatically and are exempt from probationary period

employees that are actively working on the date of the transfer of their coverage to another company are covered:

20 days

how many days will sam be able to receive his medicare in a skilled nursing home facility after being hospitalized for three days?

ability to act outside the authority specifically granted in an agency agreement, and extends the company's liability

implied authority is defined as:

contract of adhesion

in a court of law, any ambiguity found in a policy will go in favor of the insured, because an insurance policy is what type of contract?

taxable interest will be withdrawn first and a 10% penalty will be imposed if an annuitant is under age 59 1/2

in a non-qualified annuity, what is true regarding the tax consequences of a withdrawal during its accumulation period?

$8,000

jane has $10,000 in an IRA qualified plan with her employer. recently her department was closed and her funds were paid to her so she could move them to another account. jane decided to rollover her plan to a traditional IRA. how much will jane receive from the plan administrator?

fully insured

larry is eligible for full social security retirement, disability and death benefits. what type of insured level describes larry's present status?

24

long term care provides coverage for how many consecutive months in a setting other than in an cute unit of a hospital?

collateral

lynn wanted to buy a cupcake shop so she took out a loan. unfortunately, her bank needed more in trade to make her purchase. since she has a $200,000 life policy, lynn decided to use it to secure her loan. what assignment made this possible?

payments for 20 years

mary bought a flexible premium deferred annuity with a 25 year period certain. she died 5 years after beginning her annuity phase. what would mary's beneficiary receive?

partial benefits

mr. henry became totally disabled and needs rehabilitation to return to his job. but unfortunately, he is unable to return to his original place of employment. his policy contains a rehabilitation benefit. what costs will it cover?

adult day care

mr. jones has care that transports him to a center with activities. what best describes his LTC?

after a year

mrs. tucker purchased a flexible premium deferred annuity. when is the earliest her income payments will begin?

the loss may be intentional

not all losses are insurable, and there are certain requirements that must be met before a risk is proper subject for insurance. these requirements include all of the following EXCEPT:

5 years

replacing life insurer must maintain a register for a replaced policy for how many years?

payor benefit

the death benefit will not increase with which rider?

the entire amount will be included in paul's taxable estate

two years before paul's death, he transferred his life policy to his daughter samantha. which of the following will apply to this situation?

eligible plans

what are major medical insurance plans that cover expenses in and out of medical facilities called?

adjust the benefit

what can an insurer do if it is discovered that an insured gave a wrong age at the time of their application?

facility of payment

what clause permits an insured to pay benefits to a person not named in a policy as its beneficiary?

size of installment

what determines how long benefits will be received under fixed amount settlement option?

6 months

what is the maximum time a policy can be backdated?

basic and comprehensive

what makes up a combination dental plan?

entire contract clause

what provisional clause states that an application is part of the contract?

exclusion

what ratio is used to determine the taxable part of an annuity payment?

investigative consumer report

what report is very thorough and contains information gained from an applicant's neighbors and friends?

all employers

what size company can offer a health reimbursement account to their employees?

estate conservation

what term refers to taxes being paid from life insurance proceeds, so it isn't necessary to sell assets from an estate, to pay for them?

seperate

what type of account is associated with a variable annuity?

option A

what universal whole life option has a gradual increase in its cash value while the death benefit remains level?

a refund of the original amount, minus the payments already made

when an annuitant dies with cash refund option, what will their beneficiary receive?

never

when can an applicant be denied coverage due to information in a medical information bureau report?

a certificate of insurance is not issued to an individual under a blanket policy

when do individuals under a blanket policy receive their certificate of insurace

when an annuitant lives to at least their life expectancy

when does straight life annuity settlement option pay all of its money out to an annuitant?

preferred provider organization

when health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called?

to name beneficiaries as a group like "all my children"

when is a class designation for beneficiaries used?

never

when will an insured receive over 100 days of covered skilled nursing home care?

installment refund annuity

which annuity guarantees income to an annuitant as long as he or she lives, and upon their death refunds their beneficiary their remaining payments?

december 31st of the year that contains the 5th anniversary of the owner's death

which of the following describes when an IRA must be distributed if a beneficiary is not named?

subscriers

which of the following entities are responsible for making premium payments?

the cost of group insurance is based on the ratio of men to women

which of the following is a correct statement regarding group life?

favorable tax treament

which of the following is a qualified annuity advantage?

MIB

which of the following is a source that releases coded information to insurers for the underwriting purposes?

fixed period

which of the following is not a dividend option?

they are guaranteed and fixed

which of the following is not correct about variable life policies?

it pays dividends to its policy owners

which of the following is usually true of a participating life insurance policy?

participation

which of the following would be an underwriting consideration for a small employer's insurance company?

cash surrender

which option allows a company to pay the surrender value of a policy and end their obligations to their policy owner?

commissioner

which party approves all medicare supplement advertisements prior to their use?