More L&H Practice Questions
an employee insured under a group health plan has been paying $25 monthly preium for his group health coverage. the employer has been contributing $75 bringing the total monthly cost of $100. if the employee leaves the company, what would be the maximum monthly premium for COBRA coverage
$102
what is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2500
if $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, how much would be taxable annually?
$3000
what percentage of individually-owned disability income benefits is taxable
0%
if a person is disabled at age 27 and meets social security's definition of total disability, how many work credits must they have earned
12 credits
COBRA applies to employers with at least
20 employees
max age for qualifying for a catastrophic plan
30
assuming they are provided by a prescribed physician, which of the following claims is NOT covered under an association policy
30 visits for the treatment of a mental condition each year
how long is an open enrollment period for Medicare supplement policies
6 months
under the ACA, a special enrollment period allows an individual to enroll in a qualified health plan withing
60 days
all of the following would NOT be considered eligible expenses under an ICHIA policy EXCEPT
AIDS treatment
two attorneys at law and operate their practice as a partnership. they want to start a program through their practice that covers themselves and their three employees. they would choose
HR-10 (Keogh Plan)
which of the following entites must approve all Medicare ads?
Insurance Commissioner or Director
under which circumstance can a producer receive a commission and a consultant's fee for the same transaction
a producer makes a disclosure about the compensation arrangements prior to the transaction
a temporary license may be obtained for all of the following situations EXCEPT
a producer's retirement
in Indiana, all of the following may act as insurance consultants EXCEPT
an individual who holds both the producer's and consultant's license
partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other to be able to buy the interest of the deceased partner. what type of insurance policy may be used to fund the agreement?
any forms of life insurance
an agent accepts the premium payment 35 days after it's due, telling the insured that there will not be a problem keeping coverage is which type of agent authority
apparant
if a complaint has been filed against a producer who has been implicated in an unfair trade practice, the Commissioner has to notify the agent in
at least 5 days prior to hearing
when must the Medicare Supplement Buyer's Guide be presented
at the time of application
employees active at work on the date coverage is transferred to another insurance carrier are
automatically covered and exempt from any probationary period
group disability income benefits are
based on employee's income
if a company transacts any business of insurance without a certificate of authority what is the max penalty that can be charged to the director of that company
civil penalty of $25,000
when a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming a person
class designation
what is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed at the same time
common disaster clause
which of the following is NOT a characteristic of a service of an HMO plan
contacting with insurance companies
the purpose of managed care health insurance plans is to
control health insurance claims expenses
the gatekeeper of an HMO helps
control specialist costs
which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective clients
cost comparison methods
an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. 5 days later they take a medical exam. if the policy is issued, what would be the policy's effective date
date of medical exam
in medical expense policies, what does the term "assignment of benefits" refer to
designating the payment of medical benefits to a physician
all of the following are features and requirements of the Living Needs rider EXCEPT
diagnosis must indicate that death is expected within 3 years (2 years)
all of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
dividends from a mutual insurer
which would most directly affect the purchasing power of benefits paid on a fixed annuity
economic inflation
ABC insurance company receives an incomplete app and issues the policy anyway. Six months later ABC realizes the missing info prevents ABC from forcing the policyowner to answer further questions
estoppel
how oftern must insurance producers in this state complete continuing education requirements
every 2 years
which of the following statements is correct concerning taxation of LTC insurance
excessive benefits may be taxable
which best describes the aleatory nature of an insurance contract
exchange of unequal values
Insurer X charges the premium from its insured customers, passing on operating expenses for the company. The operating expenses plus the premium equals "gross" premium. what is another name for operating costs for Insurer X
expense loading
the authority granted to an agent through the agent's contract is referred to as
express authority
which policy component decreases in decreasing term insurance
face amount
In disability income insurance, the own occupation definition of disability applies
for the first 2 years of disability
which of the following is another name for a primary care physician in an HMO
gatekeeper
which authority can remove the Insurance Commissioner from office
governor
an insured has a MEC. he wants to withdraw some money in order to pay medical bills is CORRECT
he will have to pay a penalty if he is younger than 59 1/2
units with the same or similar exposure to loss are referred to as
homogeneous
issue age policy premiums increase in response to which factor
increased benefits
what type of annuity guarantees to pay an income to the annuitant each year as long as he lives, and upon death, the annuity will refund the remaining amount to the beneficary?
installment refund annuity
in the event of loss, after a notice-of-claim is submitted to the insurer, who is responsible for providing claims forms and to which party
insurer to the insured
which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
insurer's guaranteed minimum rate of interest
which of the following is TRUE regarding the spendthrift clause in life insurance policies
it can protect the policy proceeds from creditors of the beneficiary
which of the following is true regarding the taxation of the premium in group accidental health and dismemberment policies
it is deductible as an ordinary business expense
when a reduced-paid up nonfofeiture option is chosen, what happens to the face amount of the policy
it is reduced to the amount of what the cash value would buy as a single premium
which of the following is TRUE regarding a single life settlement option
it provides income the beneficiary cannot outlive
all of the following statements about Medicare Part B are correct EXCEPT
it's a compulsory program (it's elective)
what is franchise insurance?
it's health coverage for small groups whose numbers are too small to qualify for true group insurance
which of the following best describes annually renewable term insurance
it's level term insurance
in Indiana, controlled business is
limited to 25% of a producer's annual commission income
all other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy will be
lower
Medicare Part A services do NOT include which of the following
outpaitient hospital treatment
when an individual is covered under two health policies that have duplicate benefits which could cover a claim for benefits because of an injury or illness profitable, is called
overinsurance
which of the following conditions is NOT necessary for becoming a non-resident producer in Indiana
passing the proper examination
which rider would NOT cause the death benefit to increase
payor benefit rider
which describes taxation of individual disability income insurance premiums and benefits
premiums are not tax deductbile, and benefits are not taxable
what would a physician utilize if they wanted to know if a treatment is covered under an insured's plan and at what rate it will be at
prospective review
which nonforfeiture option provides coverage for the longest period of time
reduced paid up
an insured committed suicide one year after his life insurance policy was issued, the insurer will
refund the premium paid (if insured commits suicide within 2 years following effective date, the insurer's liability is limited to a refund premium
when the insured initiates the cancellation of a policy, the unearned premium will be refunded on a
short rate basis
which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right to vote
stock
a producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely insurance known as
survivor protection
Which of the following is called a "second to die" policy
survivorship life
all of the following would be different between qualiefied and nonqualified retirement plans EXCEPT
taxation on accumulation
which of the following is an example of apparent authority of an agent appointed by an insurer
the agent accepts a premium payment after the end of the grace period
which is TRUE regarding variable annuities
the annuitant assumes the risks of investment
Peril is most easily defined as
the cause of loss insured against
Which of the following is true regarding a waiver of a surrender charge on an annuity contract
the charge may be waived if the annuitant is confined to a ltc facility for at least 30 days
how do employer contributions to a HSA affect the insured's taxes
the employer contributions are not included in the individual insured's taxable income
all of the following are true regarding the Indiana Comprehensive Health Insurance Plan EXCEPT
the insured can be charged a premium up to 100% of the average standard premium charged by the state's top 5 insurers (should be 150%)
Which of the following best describes the 'first-dollar coverage' principle in basic medical insurance
the insured is not required to pay a deductible
Insured Z's healt insurance policy year begins in January. his policy contains a carry-over provision. In November, he has a small claim, which is TRUE
the insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible
regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses
the insurer will return a percentage of the premium paid
if a policy is rated-up, which of the following is true
the premium increases
all of the following are true about variable products EXCEPT
the premiums are invested in the insurer's general account (should be a seperate account)
an expired license can be reinstated within 12 months without the requirement of an examination if
the producer met the continuing education requirements before license expiration
under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties
the producer must conduct a reasonable investigation to determine if a replacement will take place
in insurance policies, contract ambiguities are automatically ruled in the favor of the insured. what privilege does the insurer possess
the right to determine the wording of the policy
all are requirements for life insurance illustrations EXCEPT
they must be part of the contract
which life insurance policies would be considered interest sensitive?
universal
the waiver of cost of insurance rider is found in what type of insurance
universal life
which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy
universal life
which type of life insurance policy allows the policyowner to pay more or less than the planned premium
universal life
insurance producers who willfully violate the Indiana Insurance Code are committing a Class A misdemeanor, what is max punishment
up to 365 days in jail and a fine that won't exceed $5000
the insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay the premium in an insurance contract, this is referred to as
utmost good faith
which of the folowing is NOT true regarding regulations of viatical settlements
viatical brokers do not need to be licensed insurance producers
Rule 18 governing Accident and Sickness Insurance Advertising includes all of the following EXCEPT
want ads soliciting new agents
which of the following determines whether disability insurance benefits are taxed
whether the premiums were tax deductible
which of the following would be considered a Class A misdemeanor
willfully violating the Indiana Insurance Code
When can a LTC policy deny a claim for losses incurred because of a pre-existing condition
within 6 months of the effective date of coverage
within what timeframe should an applicant or a producer request a hearing before the Commissioner regarding the notice of denial
within 63 days after the notice of denial is mailed
according to the Entire Contract provision, a policy must contain
a copy of the original app for insurance
