Wrong Quiz Questions ALL Sections

Any regularly salaried employee of a licensed insurer, without license or other qualification, may act on behalf of that insurer in the negotiation of insurance for that insurer, provided

a licensed producer participates in the sale of insurance

the purpose of managed care health insurance plans is to...

control health insurance claims expenses

what is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

warranty

A waiver of premium provision may be included with what type of health insurance policies?

disability income

the benefits received by the business in a Disability Buy-Sell policy are...

income tax free

what is the correct taxation of group medical expense premiums and benefits?

premiums are tax deductible and benefits are not taxed

what is the taxation of group medical expense premiums and benefits?

premiums are tax deductible and benefits are not taxed

Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

principal sum

Which section of the policy explains the rights and characteristics of the contract?

provisions

which benefit is based on the person's Primary Insurance Amount (PIA)?

social security disability benefit

How do employer contributions to a Health Savings Account affect the insured's taxes?

the employer contributions are NOT included in the individual insured's taxable income

the relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last...

24 months

after a notice of a hearing to the insurer, the hearing may be conducted no sooner than what minimum number of days?

20 days

what is a penalty tax for non-qualified distributions from a health savings account?

20%

for what period of time is an insurance license issued in Minnesota?

24 months

Once the person meets the stringent requirements for disability benefits, how long is the waiting period before any benefits will be paid?

5 months

if a health insurance carrier withdraws from the small employer market, how soon may they reenter that market if they later choose to do so?

5 years

The classification Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed no more than

50 eligible members

to be entitled to have small employer's health coverage issued on a guaranteed basis, how many eligible employees must participate in a health benefit plan?

75%

Which of the following homeowners coverage forms applies to personal property and does NOT include structure coverage? a) HO-4 b) H0-6 c) HO-8 d) HO-2

a) HO-4

according to agency law, the producer always represents the...?

insurance company

the section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the...

insuring clause

if more than one policy is in force and covering the same risk at the time of loss, which provision defines how each policy will respond?

other insurance

a participating insurance policy may do...

pay dividends to the policyowner

incontestability, consideration and payment of premiums are examples of policy

provisions

An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense. Which of the following is true?

there will be a tax

All of the following statements about Medicare supplement insurance policies are correct EXCEPT a) They cover Medicare deductibles and copayments. b) They supplement Medicare benefits. c) They are issued by private insurers. d)They cover the cost of extended nursing home care

d) They cover the cost of extended nursing home care

in disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the...

elimination period

Which of the following is an example of an unfair claims settlement practice? a) Failure to promptly settle a claim when liability has been clearly established b) Denying coverage after a reasonable investigation has been conducted c) Making claims payments which clearly indicate under which coverage payment has been made d) Using arbitration when the insured and insurer cannot reach agreement

a) Failure to promptly settle a claim when liability has been clearly established

which of the following is NOT true regarding a Certificate of Authority? a. it is issued to group insurance participants b. it may be necessary for transacting business in a specific state c. it is equivalent to an insurance license d. it is issued by the state department of insurance

a. it is issued to group insurance participants

if an insurer and the insured cannot come to an agreement as to the value of damaged property, they must follow which provision of the policy?

appraisal

Under a Key Person disability income policy, premium payments

are made by the business and are not tax-deductible (premiums are nondeductible to the business; however, benefits are received tax-free by the business)

In personal auto policies, which of the following types of coverage gives a total amount per claim to be used wherever needed, instead of setting maximums for bodily injury and property damage?

combined single limit

a health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as...

critical illness

All of the following actions can be described as twisting EXCEPT a. Misrepresenting the terms and conditions of the existing policy to make the new one more attractive b. Embellishing the terms of the proposed policy in order to convince the insured to switch c. Making an incomplete comparison between the existing and proposed policies d. Explaining to client the advantages of permanent insurance over term and suggesting changing policies

d. Explaining to client the advantages of permanent insurance over term and suggesting changing policies

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT? a. benefits received by the employee are free from federal income tax b. premiums paid by the employer are deductible as a business expense c. employee paid premiums may be deducted if certain conditions are met d. employee benefits are tax deductible the year in which they were received

d. employee benefits are tax deductible the year in which they were received

all of the following are true regarding Key Employee Disability Income insurance EXCEPT: a. benefits are taxable to the employer b. the employer owns the policy c. benefits are paid to the employer to retrain a new person d. premiums are not tax deductible for the employer

a. benefits are taxable to the employer

which of the following is NOT a characteristic or a service of an HMO plan? a. contracting with insurance companies b. providing free annual checkups c. encouraging early treatment d. providing care on an outpatient basis

a. contracting with insurance companies

in a casualty policy, which policy provision states that the interest in a policy may be transferred?

assignment

Group health insurance is characterized by all of the following EXCEPT a) Conversion privilege. b) Adverse selection. c) A master contract. d) Lower administrative costs.

b) Adverse selection.

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT? a. employee paid premiums may be deducted if certain conditions are met b. employee benefits are tax deductible the year in which they were received c. benefits received by the employee are free from federal income tax d. premiums paid by the employer are deductible as a business income

b. employee benefits are tax deductible the year in which they were received

all of the following actions can be described as twisting EXCEPT: a. making an incomplete comparison between the existing and proposed policies b. explaining to client the advantages of permanent insurance over term and suggesting changing policies c. misrepresenting the terms and conditions of the existing policy to make the new one more attractive d. embellishing the terms of the proposed policy in order to convince the insured to switch

b. explaining to client the advantages of permanent insurance over term and suggesting changing policies

which of the following is NOT a feature of a noncancellable policy? a. the insured has the right to renew the policy for the life of the contract b. the insurer may terminate the contract only at renewal for certain conditions c. the premiums cannot be increased beyond the amount stated in the policy d. the guarantee to renew coverage usually applies until the insured reaches certain age

b. the insurer may terminate the contract only at renewal for certain conditions

An individual is insured under his employer's group disability income policy. The insured suffered an accident while on vacation that left him unable to work for 4 months. If the disability income policy pays the benefit, what would be true?

benefits that are attributable to employer contributions are fully taxable to the employee as income

all of the following are true of the key person disability income policy EXCEPT: a. it is typically written to protect the company in the event a key employee becomes disabled and is unable to work b. the income may be used to find a replacement for the key employee c. benefits are considered taxable income to the business d. premiums are not deductible to the business

c. benefits are considered taxable income to the business

all of the following are true about group disability income insurance EXCEPT: a. the longer the waiting period, the lower the premium b. coverage applies both on and off the job c. benefits are usually short term d. the waiting period starts at the onset of the injury or sickness

c. benefits are usually short term