2nd Guarantee Test
The owner of a shop
Which of the following would NOT be eligible for coverage under key person? 1. The pharmacist in a drug store 2. The manager of a small store 3. The owner of a shop 4. The executive officer of a company
Copay
HMO members pay a small fee when they see their primary care physician. this fee is called a 1. Copay 2. Coinsurance 3. Deductible 4. Stop-Loss
Assignment
What is it called when a doctor accepts the Medicare approved amount? 1. Consent 2. Verification 3. Acceptance 4. Assignment
High premiums
All of the following are features of catastrophic plans EXCEPT: 1. High premiums 2. Out-of-pocket costs 3. High deductibles 4. Essential benefits
Single premium policy
A whole life policy that will generate immediate cash value is a: 1. Limited-pay policy 2. Single premium policy 3. Continuous premium policy 4. Variable life policy
$0 (Group medical & dental benefits are received tax free)
An employee is insured by a group major medical plan that is provided through her employer. The employer contributes 75% of the premium and the employee contributes the remaining 25%. If the insured received a benefit from this policy in the amount of $1,000, how much of this benefit would be taxed as income? 1. $1,000 2. $750 3. $250 4. $0
90 days
Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after the loss? 1. 60 days 2. 90 days 3. two years 4. 30 days
In franchise insurance underwriting is done for each person
What is the main difference between franchise and group insurance? 1. Franchise insurance provides coverage for large groups 2. Franchise insurance charges smaller premiums than group insurance 3. In franchise insurance participants do not need to submit their applications 4. In franchise insurance underwriting is done for each person
The employee has a right of conversion upon leaving the group coverage
All of the following are true of a Multiple Employer Trust (MEC) EXCEPT: 1. The trusts are formed by insurers, agents, brokers who are called sponsors 2. The sponsor develops the plan,
Medicare SELECT policies contain restricted network provisions
What is the primary difference between Medigap and Medicare SELECT policies? 1. Medigap policy premiums are lower. 2. Medicare SELECT policies cover the first 3 pints of blood 3. Medigap policies provide coverage for core benefits 4. Medicare SELECT policies contain restricted network provisions
20%
Core benefits are included in all Medicare supplemental policies. What percentage of Part B coinsurance is required? 1. 20% 2. 35% 3. 10% 4. 15%
Purchase a new home
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except: 1. Marriage 2. Purchase of a new home 3. Approximately every 3 years between the ages of 25 & 40 4. Birth of a child
Children's Term Rider
An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount? 1. Guaranteed insurability rider 2. Spouse term rider 3. Children's term rider 4. Payor rider
$30,000 for all aggregate violations
What is the maximum fine the Director may impose on an insurer found guilty of involuntarily engaging in an unfair trade practice? 1. $5,000 per violation 2. $15,000 per violation 3. $30,000 for all aggregate violations 4. $60,000 for all aggregate violations
Benefits are determined solely based on the policy premium
Which of the following is NOT characteristic of variable insurance and annuities? 1. Benefits are determined solely based on the policy premium 2. Cash value accumulates based on the performance of stocks 3. Benefits are not guaranteed 4. Cash value is adjusted for inflation
April
A Certificate of Authority in Nebraska, which must be renewed annually, expires on the last day of: 1. January 2. September 3. December 4. April
major medical
A self-employed mechanic operates his own shop. He is considering purchasing health insurance that would protect him financially in the event of a serious sickness or accident. He feels that he can handle any small health care expenses, What type of policy would likely meet this person's needs? 1. Major Medical 2. Comprehensive Major Medical 2. Basic Hospital 3. Dread Disease
Minimum death benefit
Which of the following is guaranteed under a variable whole life insurance policy? 1. Stock performance 2. Minimum death benefit 3. Interest rates 4. Cash value
Dollar limits on essential benefits
All of the following are features of a health insurance plan purchased on the health insurance marketplace except: 1. Coverage for emergency services 2. Coverage for pre-existing conditions 3. Dollar limits on essential benefits 4. Guaranteed renewability
A higher monthly premium
If an insured decides to reduce the coinsurance amount on her major medical insurance, what can the insured expect? 1. Stop-loss increase 2. A higher monthly premium 3. A higher deductible 4. A lower lifetime benefit payout
Taxation of Benefits
If the insurance premiums were not tax deductible, what other taxation will this affect? 1. Taxation of the policy's cash value 2. Federal income tax 3. Taxation of benefits 4. Taxation of interest
Limited Policy Notice
Which statement is required to be printed on the first page of a health insurance policy, which signals to the insured that the policy's benefits are limited? 1. Benefit Notice 2. Statue of Limitations 3. Limited Benefit Statement 4. Limited Policy Notice
Acute
An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a LTC facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT: 1. Skilled 2. Acute 3. Custodial 4. Intermediate
Increases at a predetermined age
A Jumping juvenile policy is unique in that the death benefit automatically 1. Doubles at a predetermined age 2. Pays out to the insured 3. Increases at a predetermined age 4. Decreases at a predetermined age
The employee has a right of conversion upon leaving the group insurance
All of the following are true of a Multiple employer Trust (MET) EXCEPT: 1. The trusts are formed by insurers, agents, brokers, or third party administrators who are called sponsors 2. The sponsor develops the plan, sets the underwriting rules and administers it 3. The employee has a right of conversion upon leaving the group coverage 4. METs allow small employers an opportunity to band together and purchase insurance at a lower group rate
January 1 through March 31 each year
Which of the following time periods is the general enrollment period for Medicare Part B? 1. January 1 through March 31 each year 2. March 1 through May 31 each year 3. January 1 through January 1 each year 4. March 1 through March 31 each year
31 days
If the insured's dependent child reaches the maximum age for a dependent but is still dependent on the insured, the insured must provide proof of dependency to the insurer to continue coverage for the child. How soon after the child reaches the age limit must the initial proof be given to the insurer? 1. 15 days 2. 60 days 3. 20 days 4. 31 days
The employer
Who determines if a particular group of employees can be excluded from group health coverage? 1. The employer 2. The employee union 3. The Department of Insurance 4. The insurer
The face value of the policy is payable to the beneficiary upon the death of the insured.
Life insurance creates an immediate estate. Which of the following best explains this statement? 1. The death benefit will always be paid to the estate of the insure 2. The face value of the policy is payable to the beneficiary upon the death of the insured 3. The policy has cash values and nonforfeiture values 4. The policy generates immediate cash value
Part A deductible
A core Medicare supplement policy (Plan A) will cover all of the following expenses EXCEPT: 1. The first 3 pints of blood 2. 20% of Part B coinsurance 3. Part A coinsurance 4. Part A deductible
The death benefit can be increased by providing evidence of insurability.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? 1. The death benefit can be increased only when the policy has developed a cash value 2. the death benefit can be increased only by exchanging the existing policy for a new one 3. The death benefit can be increased by providing evidence of insurability 4. The death benefit cannot be increased
Paid-Up Additions
Which dividend option will increase the death benefit? 1. Reduced paid up 2. Paid-up additions 3. Accumulation 4. Extended term
Insurer can only cancel the policy for reasons stipulated in the contract
Which of the following is NOT true regarding an optionally renewable policy? 1. insurer can only cancel the policy for reasons stipulated in the contract 2. Renewability is at the option of the insurer 3. Nonrenewal can happen on the policy anniversary date 4. Policy premiums can increase at renewal
Proof of insurability must be provided at each renewal
All of the following are true of annually renewable term insurance EXCEPT: 1. The policy renews regardless of the insured's health 2. Proof of insurability must be provided at each renewal 3. The premium increases each year 4. The death benefit remains level
Fixed Amount
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose? 1. Interest Only 2. Joint and Survivor 3. Fixed Amount 4. Fixed Period
$2,500
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty? 1. $1,000 2. $2,500 3. $5,000 4. $10,000
30 days
How many days notice must an insurer provide to an insured regarding the laps of a policy due to outstanding loans? 1. 7 days 2. 10 days 3. 15 days 4. 30 days
Benefits begin at the beginning of the 6th month and are not retroactive to the beginning of the disability
If a person qualifies for Social Security disability benefits after the 5 month elimination period, when will benefits begin? 1. Benefits begin after the 6th month and aren't retroactive to the beginning of the disability 2. A lump-sum of benefits will be paid at the beginning of the 6th month 3. Benefits begin at the beginning of the 6th month and are not retroactive to the beginning of the disability. 4. Benefits begin at the beginning of the 6th month and are retroactive
Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
Which of the following is NOT true regarding a noncancellable policy? 1. Insured has the unilateral right to renew the policy for the life of the contract, and may discontinue paying premiums to cancel it 2. Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected 3. Insurer cannot cancel the policy 4. The guarantee to renew coverage usually only applies until the insured reaches age 65
Fixed annuities do not provide protection against inflation
Which of the following is a correct statement about annuities? 1. Variable annuities place the funds into the company's general account 2. Fixed annuities have the annuitant assume the risks of investment 3. Fixed annuities do not provide protection against inflation 4. Variable annuities provide minimum guaranteed rate of interest
It provides the highest monthly benefit
Which of the following is true regarding pure life annuity settlement option? 1. It guarantees that all the proceeds will be paid out 2. The beneficiary will receive a refund of the principal 3. It guarantees income for a specified period of time 4. It provides the highest monthly benefit
To state what and how much is covered in the plan
What is the purpose of a benefit schedule? 1. To provide the dates for the payment of benefits 2. To list the insured's copayments and deductibles 3. To state what and how much is covered in the plan 4. to include the average charges for procedures