NH Insurance

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First time home buyers are able to withdraw up to how much from their qualified IRAs without incurring the 10% early withdrawal penalty?

$10,000

Health insurance policies must provide a minimum free-look period of ____ days upon policy delivery.

10

The free look period provided in a life insurance policy is usually ____ days

10

What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?

100%

What is the maximum social security disability benefit amount an insured can receive?

100% of the insured's Primary Insurance Amount (PIA)

In NH, the age discrimination in employment act rules apply to employer groups with at least

15 or more employees

In NH, a temporary license may be issued for a period not to exceed ____ days

180

How many employees must an employer have for the consolidated omnibus budget reconciliation act of 1985(cobra) to apply?

20

Non-qualified medical expense distributions from a health savings account(hsa) have a tax penalty of

20%

The free look period for long term care insurance policies sold in nh is ___ days.

30

If a court has ordered health coverage be provided for an ex-spouse or minor child under a covered employee's health benefit plan, a request for enrollment must be made within _____ days after issuance of such court order.

30 days

The age discrimination in employment act provides protection for employment discrimination beginning at age

40

Disability income insurance normally excludes coverage for disabilities that arise from

Active military duty

Which of the following is not a reason for a business to buy key person life insurance?

An increased pension liability if the key employee dies

Which statement is INCORRECT concerning a tax-sheltered annuity(TSA)?

Annual investment gains are included in participants gross income

A description of a qualified plans insurance contract may be found in which ERISA reporting form?

Annual return/report (Form 5500)

In a qualified retirement plan, the yearly contributions to an employee's account

Are restricted to maximum limits set by the IRS

Accident and health insurance claim handling is made more convenient to the insured by utilizing

Assignment of benefits

If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be increased

At least once per year from when benefits begin

When does the insured stop making payments under a thirty-payment whole life policy?

At the time of death or 30 years after the policy's inception, whichever comes first

A(n) ________ insurer may sell insurance contracts in NH

Authorized

Which statement regarding the cash value of a whole life insurance policy is correct?

Available to the policyowner when policy has been surrendered

Which of the following statements BEST describes a double indemnity provision in travel accident insurance?

Benefits are doubled under certain circumstances stated in the policy

ABC corporation purchases and is beneficiary of an individual disability income insurance policy on a key employee. Which of the following statements is true?

Benefits are received tax-free by the company

The change of occupation provision in a disability income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply?

Benefits can be increased in the event of a covered claim

Which of the following statements is true regarding accident and health insurance claims that reimburse on an indemnity basis?

Claims can be sent directly to the insured

All of these are considered to a be a violation of the Federal Fraud and False statements act EXCEPT

Claims reimbursement

Prepaid dental plans differ from most other types of dental plans in what way

Closed panel of dentists can only be used

Which of the following does not involve a life settlement transaction?

Converting term life insurance to whole life insurance

Individual and group health insurance typically exclude coverage for which of the following?

Cosmetic surgery

The main purpose of an annuity is to

Create a stream of income

What effect does interest income have upon insurance premiums?

Decreases premium

The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the

Deductible amount

An individual, age 45, would like to help pay for his daughter's college expenses in 10 years. Which annuity would be appropriate for this individual?

Deferred annuity

Which of these is not an underwriting responsibility of a life insurance agent?

Determining the final rate classification

For purpose of disability income insurance, earned income would include all of the following except

Dividends

Which of these if NOT considered to be an activity of a daily living(ADL)?

Driving

Which statement about group life insurance is incorrect?

Each participant requires evidence of insurability

Disability income policies provide protection for which of the following?

Economic death

A group health insurance policy is a contract between an

Employer and insurance company

Long term care policies will usually pay for eligible benefits using which of the following methods?

Expense incurred

When replacing a long term care policy in NH, all of the following must be considered EXCEPT

Experience Rating

Which statement concerning a decreasing term life policy is accurate?

Face amount decreases over the policy period

Which tax cost is normally associated with death?

Federal estate tax

Which tax is normally associated with an individual's death?

Federal estate tax

The "Use it or Lose it" rule applies to

Flexible Savings Accounts

Which of the following contracts offer deferred taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value?

Flexible premium fixed annuity

What is considered a valid reason for small corporations to insure the lives of its major stockholders?

Fund a buy-sell agreement

Insurable interest in one's own life is legally considered as

Generally unlimited

A large corporation pension plan purchased an accumulation annuity contract where all of the participating employees received certificates of participation. What is this contract called?

Group deferred annuity

What is the name of the rider that provides an additional purchase option in a life insurance policy?

Guaranteed insurability rider

An organization that requires healthcare services to be provided by a network of physicians and hospitals is known as a(n)

HMO

A producer's license may only be suspended or revoked if the producer

Has been afforded a right to a hearing

Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis?

Her employer's group accident and health plan

A single premium deferred annuity sometimes contains a bailout feature. Which statement regarding this feature is correct?

If the interest rate falls below a specified level, the surrender charge is waived

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?

Incontestable clause

The medical information bureau consists of members from which group?

Insurance companies

Which statement regarding whole life insurance is accurate?

Insurance coverage can continue for life

Which of these statements reflects an accurate portrayal of Medicare SELECT?

Insured uses preferred providers in exchange for paying lower premiums

Which of these would not be a valid reason to add the waiver of premium rider to a life insurance policy?

It allows a policy loan to cover premium payments if the policyowner becomes totally disabled

The initial premium for a life insurance policy is typically paid in what way?

It is typically obtained by the producer and forwarded to the insurer

A retired couple would like to maximize the income derived from their combined life savings and have it payable until they both die. Which annuity would be their best choice?

Joint and survivor annuity

A(n) _______ enrollee is a person who elects coverage for a small group accident and health plan AFTER the initial eligibility period

Late

What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?

Less than the policy's face amount

What is covered under a limited accident and health insurance policy?

Limited perils and amounts

Which of these would not likely qualify as a presumptive disability?

Loss of sight in one eye

A producer is determining the suitability of an annuity to a client. During the meeting, the producer MUST

Make reasonable efforts to fit the annually with the client's needs

John bought a deferred annuity on Mary. John amends the contract years later to name Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract?

Mary

Field underwriting by a producer

May result in the disclosure of hazardous activities of the applicant

In NH, false advertising is an example of

Misrepresentation

In NH, the Human Immunodeficiency Virus (HIV) consent form

Must disclose who will be receiving a copy of the results

How would preventative care be encouraged in a dental plan?

No deductible on routine examinations

Failure to meet the continuing education credit requirements in NH may result in

Non-renewal of the license

If a Medicare Supplement policy is cancelled by the insurer, which of these circumstances does NOT require prior approval by the Commissioner?

Nonpayment of premium

Which of these is not an Unfair Claims Settlement Practice?

Offering to settle a claim by arbitration

Which of the following is not a function of accident and health insurance?

Pays a death benefit as a result of natural causes

What happens to a life insurance policy when the policy loan balance exceeds the cash value?

Policy will no longer be in force

How is the insured protected if a payor benefit rider is attached to the life insurance policy?

Premium payments are waived in the event the premium payor dies or becomes disabled

Which statement regarding the life insurance premium for a children's rider is true?

Premium remains the same no matter how many children

How are level term policies able to provide level premiums?

Premiums are averaged over the term of the policy

Alan is an enrollee of a health maintenance organization(HMO) which uses a gatekeeper system. If there ever comes a time when he needs emergency health services, what should he do?

Proceed to the nearest emergency room

Replacement regulations exist in order to

Protect policy owners from misrepresentations and loss of benefits

A Medicare supplement policy is required to do which of the following?

Provide a 30 day free-look period

Which of the following would not be a reason for purchasing life insurance on a child's life?

Provide benefits for the child if the parents die

How do benefit payments fluctuate over time in a variable life annuity?

Reflects changes in the market value of assets in a separate account

When a lapsed policy's premium has been paid current, it has the potential of being

Reinstated

A(n) _________ insurer assumes risk from another insurance company

Reinsurance

What is the insured responsible for when a producer is acting within the scope of authority granted in the agency contract?

Responsible for acts by the producer that are authority only

What kind of arrangement gives the policyowner the right to change the beneficiary?

Revocable designation

What does a fixed life annuity offer protection against

Savings depletion due to longevity

Which of these situations would not potentially involve a prison sentence federal law?

Selling insurance with a nonresident license

Long term care policies sold in NH may NOT exclude coverage for

Senile dementia

Which of these policies is considered a whole life policy?

Single premium life

Which of the following does a Medicare advantage enrollee typically pay for?

Small co-pay per visit or per service

Which of the following would not have a restricted ability to enter into a contract?

Small employer

What is a life insurance producer authorized to do?

Solicit, receive and forward applications to the insurer

What type of risk involves the potential for loss and the possibility for gain?

Speculative risk

Which entity is responsible for regulating claims settlement practices of insurers?

State insurance departments

Who determines worker's compensation eligibility rules?

State of NH

Steve has a group disability income policy where the premiums are paid by his employer. He elected to pay for additional residual disability coverage. Which of the following statements is true?

Steve will pay taxes on the disability benefit received from his employer, but will receive any residual disability benefits tax-free

An insurable risk requires

That the chance of loss be calculable

Which factor determines the maximum disability income benefit that can be purchased by an applicant?

The applicant's income

Which statement regarding a fixed period settlement option is correct?

The installment payment amount is determined by the total number of installments

What is taken into consideration when defining "total disability" in a disability income insurance policy?

The insured's education, training, and experience

Which of these is a typical result of a concurrent review

The length of time spent in the hospital is monitored

An insurance company is marketing an accident and health policy in NH which contains a provision that is in conflict with NH insurance law. What is the required action needed to be taken by the insurer?

The provision must be amended to conform to the minimum statutory requirements

Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?

The specified benefit amount is a percentage of his wages

How is an insured's accident and health claim handled by an insurer if it occurs during the policy's grace period?

The unpaid premium may be subtracted from the reimbursement

Why were exchanges implemented by the affordable care act(ACA)?

To create a one-stop market for standardized health insurance plans

Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy

Until they become self-supportive

Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?

When the contract has been held for the period specified in the policy

When would evidence of insurability be required for a person already covered with a variable universal life policy?

When the death benefit is increased

Which life insurance policy would be eligible to include to include an automatic premium loan provision?

Whole life

After an applicant reads and signs an insurance application, he/she should be conscious of the fact that

a false statement could lead to loss of coverage

bathing, eating and transferring are all types of

activities of daily living

The coordination of benefits provision is added to a group health plan in order to

avoid overinsurance

An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before

bringing legal action against the insurer

What is payable to the policy owner if a whole life policy is surrendered prior to its maturity date?

cash value

Reductions in coverage are one feature of ______ in health insurance policies

cost containment

Life settlement proceeds may be subject to the claims of

creditors

What type of doctor-ordered care assists an individual with performing basic daily activities such as bathing, dressing, and eating?

custodial care

Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends

equal the net single premium for the same face amount at the insured's attained age

A business may purchase an annuity for all of the following reasons EXCEPT

informally funding a non-qualified deferred compensation plan

After an insurance application has been originated, the producer normally

is the major personal contact to the insured

The insurance coverage in a variable life insurance policy may vary based on the value of

its underlying investments

Respite care coverage is typically found in a(n)

long term care policy

Which of the following is excluded in a medical expense plan?

military duty

Periodic health claim payments must be made at least

monthly

Long term care policies normally cover expenses associated with

nursing homes

The authority to change the beneficiary in an individual annuity lies with the

owner

A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to

periodically purchase additional insurance

What typically changes at the re-entry option date found in some term life policies?

premium

A guaranteed renewable provision allows

premiums which can only be increased per rate class

When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?

producer

A Keogh plan is a(n)

qualified retirement plan for the self employed

During an annuity's liquidation phase, the annuitant normally

receives benefit payments at regular intervals

ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk

reduction

Which type of policy pays benefits to a policyholder covered under a hospital expense policy?

reimbursement

Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will

remain a constant dollar amount for the duration of the annuity period

A stock insurance company is owned by its

shareholders

Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be

somewhat less

In order to contribute to a Health Savings Account (HSA),

the applicant must be enrolled in a High Deductible Health Plan (HDHP)

The conversion option for group term insurance may be exercised by an employee

within 31 days of terminated employment

Some standard Medicare Supplement policies include which benefit?

Hospice care

In NH, discontinued group long term care plans must provide the insured with continued individual coverage upon notice to the insurer within

30 days

A pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within ______ month(a) preceding the effective date of an individual long-term care policy.

6 months

What is the actuarial value of a bronze level health plan?

60

A producer has indicated to a potential client that the proposed life insurance policy is covered by the NH life and health insurance guaranty association. This action taken by the producer is

Prohibited by law

Kelly purchased a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for

Specific reasons stated in the contract


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