ExamFx
all of the following are true of the federal tax advantages of a qualified plan except
at distribution, all mounts received by the employee are tax free
an employee quits his job and converts his group policy to an individual policy, the premium for the individual policy will be based on his
attained age
regarding the free look provision, the insurance company
must allow the policyowner to return the policy for a full refund
a rider attached to a life insurance policy that provides coverage on the insured's family members is called the
other insured rider
prior to purchasing a medigap policy, a person must be enrolled in which of the following
parts a and b of medicare
who might receive dividends from a mutual insurer
policyholders
all of the following long term care coverages would allow an insured to receive care at home except
skilled care
on a health insurance application, a signature is required from all of the following individuals except
the spouse of the policyowner
whose responsibility is it to determine if all of the question on an application have been answered
the agent
all of the following are personal uses of life insurance except
buy sell agreement
which of the following is an example of liquidity in a life insurance contract?
the cash value available to the policyowner
the insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. what should the insurer do with the application
return to the applicant for completion
the type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
joint and survivor
who is the owner and who is the beneficiary on a key person life insurance policy
the employer is the owner and beneficiary
the policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as
the policy contains sufficient cash value to cover the cost of insurance
which of the following individuals is eligible for a health savings account
Allison is insured by a high deductible health plan (hdhp)
in a replacement situation, all of the following must be considered except
assets
which law was passed to authorize the NAIC to develop a standardized model for medicare supplement policies
OBRA
an insured has an accidental death and dismemberment policy with a principal value of $50,000. he loses sight in both eyes in a hunting accident. how much will he receive
$50,000
cobra applies to employers with at least
20 employees
who is a third party owner
a policyowner is not the insured
long term care coverage may be available as any of the following options except
endorsement to a health policy
in comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports
the consumer's associates, friends, and neighbors provide the report's data
who do agents represent
the insurance company
how long must producer maintain records of continuing education course completion
4 years
a partnership buy sell agreement in which each partner purchases insurance on the life of each of the other partners is called a
cross purchase plan
which of the following is not typically excluded from life policies
death due to plane crash fro a fare paying passenger
if an insured changes his payments from monthly to annually, what happens to the total premium
decreases
which policy component decreases in decreasing term insurance
face amount
an insurance company is domsiceled in motana and transacts insurance in Wyoming, which term best describes the insurer's classification in Wyoming
foreign
as association could buy group insurance for its members if it meets all of the following requirements except
has at least 50 members
when would a misrepresentation on the insurance application be considered fraud
if it is intentional and material
which of the following is correct concerning the taxation of premiums in a key person life insurance policy
premiums are not tax deductible as a business expense
in respect to the consideration clause, which of the following is consideration on the part of the insurer
promising to pay in accordance with the contract terms
an insured wants to name her husband as the beneficiary of her health policy. she also wishes to retain all of the rights of ownership. the insured should have her husband named as what type of beneficiary
revocable
which of the following determines the length of time that benefits will be received under the fixed amount settlement option?
size of each installment
your client wants to know what the tax implications are for contributions to a health savings account. you should advise her that the contributions are
tax deductible
which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information
the fair credit reporting act
in a life settlement contract, whom does the life settlement broker represent
the owner
which of the following statements is most correct concerning the changing of an irrevocable beneficiary
they can be changed only with the written consent of that beneficiary
which of the following is true for both equally indexed annuities and fixed amounts
they have a guaranteed minimum interest rate
an employee insured under a group health plan has been paying $@5 monthly premium for his health coverage. the employer has been contributing $75 for the total monthly cost of $100. if the employee leaves the company, what would be his maximum monthly premium for cobra coverage?
$102
if an insured receives accelerated death benefits, what is the latest amount of the original death benefit that the beneficiary would receive after the insured's death?
0%
what license or licenses are required to sell variable annuities
both a life insurance license and a securities license
what license or licenses are required to sell variable annuities
both s life insurance license and a securities license
a small hardware store owner is involved in a car accident that renders him totally disabled for a year. which type of insurance would help him payment for expenses of the company during the time of his disability
business overhead expense policy
when delivering a policy, which of the following is an agent's responsibility
collect payment at time of delivery (if payment has not already been collected)
a producer agent must do all of the following when delivering a new policy to the insured except
disclosure commissions earned from the state of the policy
the insurance policy, together with the policy application and any added riders form what is known as
entire contract
an annuity owner is funding an annuity that will supplement her retirement. because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the standard and poor's 500 index. she would likely purchase a
equity indexed annuity
circulating deceptive sales material to the public is what type of unfair trade practice
false advertising
an employee issued under a group health policy is injured in a car wreck while performing her duties for her employer. this results in a long hospitalization period. which of the following is true
the group plan will not pay because the employee was injured at work
hmos that contract with outside physicians to provide health care service to their subscribers compensate those providers on a
capitation basis
a health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as
critical illness
when the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option
fixed amount
when doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer
foreign
which of the following best describes a misrepresentation
issuing sales material with exaggerated statements about policy benefits
what is the purpose of a free look period in insurance policies
it allows the insured to reject the policy with a full refund
which of the following is true regarding the accumulation period of annuity
it is a period during which the payments into the annuity grow tax deferred
which of the following is true regarding the annuity period
it may last for the lifetime of the annuitant
which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary
life income with period certain
an applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. she receives a conditional receipt two weeks later. which of the following has the insurer done by this point?
neither approved the application nor issued the policy
when an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. which rider is attached to the policy
return of premium
which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated
those who have been insured under the plan for at least 5 years
all advertisements are the responsibility of the
insurer
upon the submission of a death claim under a life insurance policy, when should the insurer pay the policy benefit
within 2 months
how soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company
within 90 days or as soon as reasonably possible, but not to exceed 1 year
who makes up the medical information bureau
insurers
all of the following are nonforfeiture options except
interest only
in the event of a loss, business overhead insurance will pay for
rent
if the insured has the right to keep a long-term care insurance policy in force by making timely premium payments, and the insurer may not make any change to the policy or decline to renew it, the policy is
guaranteed renewable
if a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back
the balance of the loan will be taken out of the death benefit
if a consumer requests additional information concerning an investigating consumer report, how long does the insurer or reporting agency have to comply
5 days
which of the following types of ltc is not provided in an institutional setting
home health care
on its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of
misrepresentation
a small company offers group health insurance to its employees, but recently has decided to terminate the health insurance contract, leaving the workers without insurance. what can the employees do regarding their insurance
convert to an individual health policy
what type of insurance would be used for a return of premium rider
increasing term
who must pay for the cost of a medical examination required in the process of underwriting
insurer
which of the following is true about the requirements regarding hiv exams
the applicant must give prior informed written consent
which of the following statements concerning group health insurance is correct
the employer is the policyholder
which provision states that the insurance company must pay medical expense claims immediately
time of payment of claims
an insured decides to surrender his $100,000 whole life policy. the premium paid into the policy added up to $15,000. at policy surrender, the cash surrender value was $18,000. what part of the surrender value would be income taxable
$3,000
an insured has a primary group health plan and an excess plan, each covering losses up to $10,000. the insured suffered a loss of $15,000. disregarding any copayments or deductible how much will the excess plan pay
$5,000
an insured had a $10,000 term life policy. the annual premium of $100 was due on february 1; however, the insured failed to pay the premium/ he died on february 28. how much would the beneficiary receive from the policy
$9,800
l has a major medical policy with a $500 deductible and 80/20 coinsurance. l is hospitalized and sustains a $2,500 loss. what is the maximum amount that l will have to pay
$900(deductible + 20% of the bill after the deductible [20% of $2,000])
the insurance commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every year
5 years
ray has an individual major medical policy that requires a coinsurance payment. ray very rarely visits his physician and would prefer to pay the lowest premiere possible. which coinsurance arrangement would be best for ray
50/50
the probationary period is
a specified period of time that a person joining a group has to wait before becoming eligible for coverage
when the insured purchased his health policy he was a window washer. he has since changed occupation and now manages a library. if the insurer is notified of the insured's change of occupation, the insurer should
adjust the benefit in accordance with the decreased risk
which of the following is a feature of a disability buyout plan
a lump sum benefit payment option
a deductible is
a specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits
all other factors being equal, the least expensive first year premium payment is found in
annually renewable term
the insurer are allowed to disclose the hiv related test result to all of the following except
another insurer
an insurer wants to begin underwriting procedures for an applicant. what source will it consult for the majority of its underwriting information
application
which of the following would be the basic source of information used by the company in the risk selection process
application
an insured's premium increases as a result of her age. which type of policy does she have
attained age
the premium charged for exercising the guaranteed insurability rider is based upon the insured's
attained age
an insurance contract must contain all of the following to be considered legally binding except
beneficiary's consent
which of the following is a feature of a variable annuity
benefit payment amounts are not guaranteed
an applicant for an individual health policy failed to complete the application property. before being able to complete the application and pay the initial premium, she is confined to a hospital. this will not be covered by insurance because she has not met the conditions specified in the
consideration clause
representations are written or oral statements made by the applicant that are
considered true to the best of the applicant's knowledge
what is the main difference between coinsurance and copayments
copayments is a set dollar amount
which of the following would be the beneficiary in credit life insurance
creditor
which is true about the cash surrender nonforfeiture option
funds exceeding the premium paid are taxable as ordinary income
the policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. which settlement option should the policyowner choose
interest only option
a guaranteed renewable disability insurance policy
is renewable at the insured's option to a specified age
which of the following is incorrect concerning Medicaid
it is solely a federally administered program
which of the following statements is true concerning the accidental death rider
it will pay double or triple the face amount
an insured purchased an insurance policy 5 years ago. last year, she received a dividend check from the insurance company that was not taxable. this year, she did not receive a check from the insurer. from what type of insurer did the insured purchase the policy
mutual
which of the following factors determines the amount of each installment paid in a life income option arrangement
recipient's life expectancy and amount of principal
which nonforfeiture option provides coverage for the longest period of time
reduced paid up
disability income policies can provide coverage for a loss of income when returning to work only part time after recovering from total disability. what is the benefit that is based on the insured's loss of earnings after recovery from a disability
residual disability
which two terms are associated directly with the way an annuity if funded
single payment or periodic payments
which of the following determine the length of time that benefits will be received under the fixed amount settlement option
size of each installment
which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting
stock
which of the following policies would be classified as a traditional level premium contract
straight life
in a case where the primary beneficiary precedeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to
the contingent beneficiary
an absolute assignment is a
transfer of all ownership rights in a policy
which of the following products requires a securities license
variable annuity
who can make a fully deductible contribution to a traditional ira
an individual not covered by an employer-sponsored plan who has earned income
at the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. this rider is called
guaranteed insurability
an individual is purchasing a permanent life policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy?
guaranteed insurability option
life income joint and survivor settlement option guarantees
income for 2 or more recipients until they die
which settlement option allows the insurer to retain the face amount but pay some income based on gain on the proceeds to the beneficiary at regular intervals
interest only
which of the following is correct about a group health insurance policy
it cannot exclude newborn children from coverage
which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early
paid up option
most agents try to collect the initial premium for submission with the application, when an agent collects the initial premium from the applicant, the agent should issue the applicant a
premium receipt
what type of care is respite care
relief for a major care giver
which of the following is not a feature of a noncancellable policy
the insurer mat terminate the contract only at renewal for certain conditions
which of the following is true regarding elimination periods and the cost of coverage
the longer the elimination period, the lower the cost of coverage
if an issued a policy based on the application that had unanswered questions, which of the following will be true
the policy will be interpreted as if the insurer waived its right to have an answer on the application
according to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy
unearned premiums are retained by the insurance company
under the aca, health insurance can no longer be underwritten based on which of the following factors
the applicant's health condition
which of the following is true about the mandatory free look in a life insurance policy
it commences when the policy is delivered
which of the following best describes the mib
it is nonprofit organization underwriting information on applicants for life and health insurance
which of the following must an insurer obtain in order to transact insurance within a given state
certificate of authority
an agent is ready to deliver a policy to an applicant but has not yet received payment. upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. what did he forget to do
ask her to sign a statement of good health
how many consecutive months of coverage (other than in an acute care unit of a hospital) must ltc insurance provide in this state
12
what is a penalty tax for nonqualified distributions from a health savings account
20%
the type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
credit life
item stipulated in the contract that the insurer will of provide coverage for are found in the
exclusions clause
in the executive bonus plan, who is the owner of the policy, and who pays the premium
executive is the owner, and the executive pays the premium
what is the purpose of coinsurance provisions
to help the insurance company to prevent overutilization of the policy
the premium paid by the employer in a business life insurance policy are
tax deductible by the employer
under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
the insured