FInal Exam
Under HIPAA, medical plan late enrollees may be excluded for pre-existing conditions for a maximum of
18 months The maximum length of a pre-existing condition exclusion period is 12 months after the enrollment date, or 18 months in the case of a "late enrollee."
Which of the following is NOT a condition that must be met for an accidental death benefit to be paid?
Cause of death must be from a job-related injury
A Medicare Supplement policy is required to do which of the following?
Provide a 30 day free-look period
Which factor determines the maximum disability income benefit that can be purchased by an applicant?
The applicant's income
Which of the following does medical expense insurance NOT typically cover?
Treatment in a government facility
Short-term group disability income benefits are
a percentage of weekly earnings up to to a stated maximum
In long-term care insurance, what is an "ADL"?
activities of daily living.
Which of the following disability buy-sell agreements is best suited for businesses with a limited number of partners?
cross-purchase agreement A cross-purchase agreement is a document that allows a company's partners or other shareholders to purchase the interest or shares of a partner who dies, becomes incapacitated, or retires. A cross-purchase agreement is used in business continuation planning. A cross-purchase agreement is best suited for businesses with a limited number of partners.
What type of doctor-ordered care assists an individual with performing basic daily activities such as bathing, dressing, and eating?
custodial care
With life insurance, the needs approach is used primarily in determining
how much life insurance a client should apply for The "needs approach" in life insurance is most useful in determining the amount of life insurance to be recommended to a client.
After an insurance application has been originated, the producer normally
is the major personal contact to the insured
Omar is covered by a disability income policy. He is hurt while performing an occupation more hazardous than the occupation listed in his policy. The policy's change of occupation provision will have what effect?
reduce benefit level If an individual covered under a disability income policy is injured while engaged in an occupation that is MORE hazardous than the occupation stated in the policy, the result will be the benefit level is reduced.
An individual currently owns a long-term care policy. At the time of application for similar coverage, which item must be signed by the applicant and retained by the insurer?
replacement notice Long-term care insurance must include certain questions designed to determine whether the applicant has another long-term care policy in force or whether the intention is to replace any other health policy in force. If so, a replacement notice must be signed by the applicant and retained by the insurer.
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received until
8 AM
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after
9 PM
Which of these is NOT an advantage of term life insurance?
A cash benefit will be provided if the insured is alive at the end of the policy period advantages of term life insurance: -greatest amount of coverage can be provided for the initial premium paid -can be provided as a rider to another policy -temporary insurance needs can be met
What are reasonable and customary charges for health insurance primarily based on?
Average charges within a geographic region
When a company is licensed by the Department of Insurance to do business in this state, it becomes
An authorized company
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of
10%
First-time homebuyers are able to withdraw up to how much from their qualified IRAs without incurring the 10% early withdrawal penalty?
10,000
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% If group life insurance premiums are completely paid for by the employer, the minimum percent of eligible employees required to be covered is 100%.
What is the minimum number of employees needed for a small employer medical expense plan in Arizona?
2 A small employer is one that employs between 2 and 50 employees on a typical business day during any one calendar year.
Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy?
A portion of the payments paid to the beneficiary comes from interest calculated on the proceeds of the policy . A portion of the payments paid to the beneficiary stems from interest generated from the proceeds.
Which of these is NOT considered to be a cost connected with an individual's death?
Business expenses the following are considered costs associated with an indiviaulds death: -funeral expenses -tax liability -probate costs-- refers to the general administering of a deceased person's will or the estate of a deceased person without a will.
Major medical plans typically exclude coverage for which of the following benefits?
Custodial care
Arizona law requires the Human Immunodeficiency Virus (HIV) consent form to
Disclose the types of individuals or organizations that may receive a copy of the test results
Which provision makes the application part of the annuity contract?
Entire Contract clause
Where does the primary funding for Medicare Part A come from?
Federal payroll and self-employment taxes
Tori has an annuity that pays her a $500 per month income benefit for life or for ten years, whichever is longer. What kind of annuity is this?
Fixed life annuity with period certain A fixed life annuity with period certain is designed to pay the annuitant a fixed income for life, but guarantees a definite minimum period of payments.
The Medical Information Bureau consists of members from which group?
Insurance companies insurance companies make up the membership of the Medical Information Bureau.
Which of these statements reflects an accurate portrayal of Medicare SELECT?
Insured uses preferred providers in exchange for paying lower premiums Medicare SELECT is a type of Medicare Supplement insurance where the insured agrees to use preferred providers in exchange for paying a lower premium.
Which of the following is associated with an immediate annuity?
Lack of an accumulation period
A policyowner has a life insurance policy where she had listed her age on the application as 5 years younger than her actual age. If she dies and the insurer discovers the misstatement of age, how much will the insurance company pay?
Less than the face amount
If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered
Misrepresentation
During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT
Misstatement of age in the application the insurer may contest a policy for all of the following reasons : -material misrepresentation in the application -fraud in the purchase of the policy -material concealment in the purchase of a policy
Which of the following does NOT meet the requirements of "skilled nursing care"?
Must be provided exclsuviey in a hopsital
All of these statements correctly describe an aleatory contract EXCEPT
Only one party makes any kind of legally enforceable offer Insurance contracts are aleatory, which means there is an unequal exchange. The premiums paid by the applicant are small in relation to the amount that will be paid by the insurance company in the event of a loss.
If group Health benefit levels are too high, what could be the end result?
Overutilization of the plan Overutilization of the plan may result if group Health benefit levels are too high.
Which of these is NOT a factor that influences group health insurance underwriting?
Physical exams of group members Individual physical examinations are typically not required for group health insurance.
A disability income insurance policy was recently issued with a rating. What does this mean?
Policyowner will be charged an additional premium A rating on a disability income insurance policy means that an additional premium will be charged.
Which statement regarding the life insurance premium for a children's rider is true?
Premium remains the same no matter how many children the cost for a child rider remains the same regardless of the number of children.
Home health care benefits typically do NOT include coverage for
Prescription medication
An insured covered under a Disability Income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following?
Recurrent disability
Which of the following describes the act of insuring a risk against possible loss?
Risk transfer Insuring a risk against possible loss is an example of risk transfer.
Which of these is NOT considered the responsibility of a producer during the underwriting process?
Selecting the final approval date Responsibilities of a producer during underwriting process: -collecting additional medical information if needed -promptly sending the completed application to the insurance company -forwarding any material personal observations to the insurer
Under the Fair Credit Reporting Act, which statement is true?
The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report.
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured in this situation, coverage will go into effect the date the agent delivers the policy, collects the initial premium, and obtains a good health statement from the insured.
What would be considered an advantage of purchasing term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage
Which of the following is a true statement regarding a Medicare Supplement policy purchased during the open enrollment period?
The policy will be issued regardless of health
How does a continuous premium whole life policy differ from a limited payment whole life policy?
The time period in which premiums will be paid
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 If an insurer pays an individual accident and health insurance claim during a policy's grace period, the amount of unpaid premium may be deducted from the reimbursement.
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid The elimination period of an individual disability insurance policy refers to the amount of time a disabled person must wait before benefits are paid.
At what point are death proceeds paid in a joint life insurance policy?
When the first insured dies A joint life policy covers two or more lives and provides for the payment of the proceeds at the death of the first among those insured, at which time the policy terminates.
Which life insurance policy would be eligible to include an automatic premium loan provision?
Whole life An automatic premium loan provision is possible in whole life insurance because of the cash value that builds.
In Arizona, an attempt to defraud an insurance company is considered
a felony A person who attempts to defraud an insurance company is guilty of a Class 6 felony and could be fined up to $5,000 per violation.
A producer working for an insurance company may be personally liable for
acts performed which are prohibited in the agency contract
In regards to health insurance, employees age 65 or older are typically required to
be offered the same group health benefits offered to the younger employees In regards to health insurance, employees age 65 or older are typically required to be offered the same group medical coverage offered to the younger employees.
According to the needs approach, an emergency reserve fund's primary purpose is to
cover the cost of unexpected expenses
Which of these is NOT considered a type of limited payment whole life insurance?
endowment at age 70
An agreement is reached when an insurance contract is formed. Which of the following is NOT considered to be an element of an agreement?
equity
A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered EXCEPT for
experimental and investigative services Major medical health insurance policy contains the following health care services: -hospital charges -physcian exams -nursing services
A life insurance policy that contains an accelerated (living) benefit rider will provide funds if the
insured is expected to be confined to a nursing home for life An insured may qualify for accelerated benefits if he/she has an illness or physical condition that can reasonably be expected to result in death within 24 months.
After the extended term life nonforfeiture option is chosen, the available insurance will be
level term for a stated period of time Under the extended term life insurance nonforfeiture option, the available insurance is level term for a stated period of time. The amount of coverage is the same as the original face amount.
Field underwriting by a producer
may result in the disclosure of hazardous activities of the applicant
The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called
nonforfeiture options If the owner of a deferred annuity surrenders the contract several years before the annuity date in exchange for the cash value, the owner is said to be exercising contractual rights called "nonforfeiture options".
Long-term care policies normally cover expenses associated with
nursing homes
Which of the following can be defined as a cause of a loss?
peril
Patrick purchased a long-term care policy. He has a health condition for which medical treatment was recommended by a physician within 6 months prior to the policy's effective date. This condition is called a(n)
pre-existing condition in an individual long-term care policy, 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 six months preceding the effective date.
What typically changes at the re-entry option date found in some term life policies?
premium
A Keogh plan is a(n)
qualified retirement plan for the self employed
The insured's consideration given for a health insurance policy is
the first premium payment and the application The consideration clause in health insurance usually lists the insured's consideration given for the policy as the initial premium payment and the application.
Illustrations used in the sale of life insurance contain a statement that must be signed by
the producer
A terminally ill policyowner decides to sell his life insurance policy at a discount to help support his family. This sale is called a(n)
viatical settlement
A health insurer MUST provide a proof of loss form
within 15 days of receipt of the notice of loss In health insurance, the insurer is legally required to provide a proof of loss form to the insured within 15 days of receipt of the notice of loss.
Question 128 Select the appropriate response If an accident and health insurance claim form is NOT supplied to the insured within 15 days after the notice of claim, the insured may comply with the proof of loss provision by submitting
written proof of the occurrence and extent of loss If a health insurance claim form is NOT supplied to the insured within 15 days after the notice of claim, the insured may comply with the proof of loss provision by submitting written proof of the occurrence and extent of loss.
Beth is a surgeon who has an own-occupation disability income policy. She was injured six months ago and has been unable to return to her practice. Her monthly benefit from the policy is $15,000. During this time, Beth has been working part-time at a local boutique and receives $2,000 monthly. What is her ongoing monthly benefit while she is unable to perform her surgical duties?
$15,000 In an own-occupation disability policy, the insurance company will consider your occupation to be the occupation you are engaged in at the time you become disabled. They will pay the claim even if you begin working in another career field, as long as you continue to be disabled in your original occupation.
XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums?
Implied authority Implied authority is authority not specifically granted to the agent in the agency contract.
In Arizona, a long-term care policy may offer coverage
In which benefits are based on an individual's ability to perform the activities of daily living
Which of the following does NOT help determine group health insurance premiums?
Income level of group members All of the following determine premium for group health insurance: -average age of group -claims experience of grouo -groups size
All of these are considered features of whole life insurance EXCEPT
Initial premium is lower than for an equivalent amount of term insurance The initial cost of whole life insurance is actually HIGHER than an equivalent amount of term insurance.
What action can an insurer take to discourage malingering and false disability claims?
Limit the amount of benefits an insured can receive from two disability policies with the same insurer To discourage malingering and false claims for disability, an insurer sets limits on the amount of benefits an insured can collect from two disability policies with the same insurer.
Which of the following accurately describes a participating insurance policy?
Policyowners may be entitled to receive dividends A participating insurance policy is one in which the policyowner receives dividends deriving from the company's divisible surplus.
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 If the need for emergency health services arises for an enrollee of a health maintenance organization (HMO) using a gatekeeper system, the enrollee should proceed directly to the nearest emergency room.
Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans
cover preventative care once every six months Generally, an indemnity plan which covers dental expenses covers preventative care for adults and children once every six months.
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 to the net single premium for the same face amount at the insureds attained age. If life insurance policy dividends are left with the insurance company, the 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.
Notice of information practices must be given to a policyholder at least
every 3 years Under HIPAA guidelines, notice of information practices must be given to a policyholder at least every three years.
How long does protection normally extend to under a limited pay whole life policy?
until age 100
An insurance company may delay the payment of the cash value of a surrendered whole life insurance policy for up to
6 months
Which of the following situations would a medical exam NOT be required for an individual health insurance applicant?
Applicant's family members have a history of cancer Medical examinations are often required for individual health insurance applicants for all of these reasons EXCEPT the applicant has a family history of cancer.
Which statement regarding the cash value of a whole life insurance policy is correct?
Available to the policyowner when policy has been surrendered
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?
Beneficiary receives $50,000 income tax-free
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 In the event the insured changes to a less hazardous occupation, the Change of Occupation provision states that benefits can be increased in the event of a covered claim.
Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices?
Community service. Under federal law, punishment for unfair and deceptive insurance practices may include a fine, imprisonment and license revocation but not community service.
All of these are used to prevent adverse selection in a group dental plan EXCEPT
Decreased employee participation Typically, when a group plan is initially effective, maximum participation is required.
An accident and health insurance policy covers the insured, the insured's spouse, and their child. If additional children are born to the family, the accident and health insurance policy must cover the children
From the date of birth
When an individual purchases insurance as a result of threats made by the producer, there has been a violation of
"Unfair trade practice laws". When an individual purchases insurance as a result of threats made by the producer, there has been a violation of Unfair trade practice laws.
The interest credited to the cash values of personally-owned non-qualified annuities is considered
"tax-deferred". "tax deferred" refers to investments on which applicable taxes (typically income taxes and capital gains taxes) are paid at a future date instead of in the period in which they are incurred. interest credited to the cash values of annuities is deferred until distribution.
An individual is insured under a major medical plan with a $1,000,000 lifetime benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year, what is the remaining lifetime benefit?
$960,000 $50,500 - $500 deductible = 50,000 $50,000 x 80% = 40,000 $1,000,000 lifetime benefit - $40,000 = $960,000 remaining.
An annuity becomes incontestable after it has been in force for
2 years
An annuitant is paid $495 per month until the contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this?
Fixed amount under the fixed amount option, the annuitant receives a fixed payment until the contract value is exhausted, regardless of when that will be. If the annuitant dies before the contract is depleted, the beneficiary receives the remainder.
Which settlement option makes minimum guaranteed dollar payments over a stated number of years?
Fixed-Period The Fixed-Period option pays proceeds (including interest and principal) in minimum guaranteed dollar payments over a specified number of years.
A producer's license may be suspended
For misappropriation of premiums
Medicare Supplement insurance requires an individual to be at least how old for open enrollment?
No minimum age
Which of the following statements BEST describes the HIPAA portability rules for an individual who changes from one group medical plan to another?
Reduces or eliminates any pre-existing conditions excluded under the new plan HIPAA portability rules allow individuals who change from one group medical plan to another to reduce or eliminate any pre-existing conditions excluded under the new plan. designed to improve the portability of health coverage for people who are changing jobs and to make it easier to add family members to an employees' coverage. U.S. employee's right to keep or maintain certain benefits when switching employers or when leaving the workforce (retiring). The provides rights and protections for participants in group health plans.
Which statement concerning a deferred annuity contract is correct?
The owner can be the beneficiary, annuitant, or neither
Unless it is regarding fraud, which of the following statements about the contestability of a life insurance policy is true?
The policy can usually only be contested by the insurer during the first two years of the contract
All of the following are unfair claims settlement practices EXCEPT
An attempt to settle a claim by arbitration Procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party.
When replacing a life insurance policy, which of the following is advisable?
Wait until the new policy is issued and delivered before surrendering existing policy In a replacement situation, the insured should NEVER cash surrender the existing policy until the new policy is issued, delivered, and paid on. Upon surrender of the existing policy, the insured will no longer be covered. Should the underwriting of the new policy's application show the proposed insured to be uninsurable, the individual will be unable to obtain new coverage and unable to reinstate the surrendered policy. Also, state law requires that any loan of 25% or more of an existing policy's cash value used to purchase the new policy constitutes a replacement and requires proper notification.
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes?
as a section 1035 exchange
An insurer operating in the U.S. but headquartered outside the U.S. is
an alien insurer An insurance company headquartered in another country is considered an alien insurer in the United States.
All of the following may obtain a temporary's producer's license EXCEPT
An employee of a licensed producer who is retired
In what way is a life insurance policy affected by an accelerated benefit payment?
Decreases the death benefit
Under Arizona workers' compensation laws, which of the following situations would be excluded from disability benefits?
Intentional self-inflicted injuries at the workplace
When compared to a fixed annuity, a variable annuity has what distinguishing feature?
Investment risk is assumed by the purchaser The purchaser assumes the investment risk with a variable annuity.
What is the effect of the market value adjustment in a market value adjustment annuity?
Transfers some of the investment risk to the policyowner A Market Value Adjustment (MVA) can be attached to a deferred annuity that features fixed interest rate guarantees combined with an interest rate adjustment factor that can cause the actual crediting rates to increase or decrease in response to market. Market value adjustments found in some annuity products are meant to shift some of the investment risk to the policyowner.
Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate
for federal income tax reasons
How long does one premium payment cover in a single premium whole life policy?
full life of policy
Emily is disabled. In order to become eligible for Social Security disability income benefits, she must be
fully insured, according to Social Security to be eligible for Socical Security Disability income benefits, the individual who is disabled must be fully insured, as defined by Social Security
Which type of Medicare Supplement information can be used without prior state approval?
government publications Insurers can use government publications for communicating Medicare Supplement information without prior state approval.
During the early years of a whole life insurance policy, the cash value will normally be
less than the total premiums paid During the early years of a whole life insurance policy, the cash value will normally be less than the total premiums paid.
Group life insurance is typically issued as
level term insurance Group life insurance is typically issued as level term insurance, which provides a fixed amount of coverage throughout the term of the contract.
An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT
living in a rural area where an applicant lives is NOT a factor in determing preferred rates
When considering the replacement of an individual accident and health insurance policy, a pre-existing conditions exclusion in the new contract
may reduce the insured's benefits
A major medical expense policy typically does NOT
pay surgeon fees on a first-dollar basis Basic medical or surgical policies typically pay first-dollar benefits, not major medical policies.
A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that
policyowner may need to resume premium payments depending on the actual results.
How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision?
6 months Most states allow insurers to delay payment of cash surrender values for up to 6 months after policyowners request payment. This provision is a proactive measure for companies should an economic crisis arise, but such delays are rarely invoked.
Health Maintenance Organization (HMO) wellness programs may include each of the following EXCEPT
Diagnostic testing services All of these may be included under an HMO wellness program: -stress reduction, -routine physicals, -& smoke cessation programs)
What type of risk involves the potential for loss with no possibility for gain?
pure risk
Which of the following situations would an insurance agent need to guard against liability for professional errors and omissions?
Making a recommendation to a potential insured to replace existing coverage An insurance agent needs to guard against liability for professional errors and omissions particularly when recommending replacement coverage to a potential insured.
Which of the following health insurance plans charges a premium that cannot be increased?
Noncancelable A noncancelable health policy may NOT be changed in any way by the insurer up to a specified age, so long as the premiums are paid. Premiums are not subject to change beyond the stated policy limits.
How are the premiums for an individually-owned disability income policy treated for tax purposes?
Not tax-deductible at all
Which statement is true regarding hospital preadmission certification for emergency situations?
Notification is required to be given BEFORE insured is admitted to the hospital Hospital preadmission certification typically requires notification be given after the patient is admitted to the hospital for an emergency situation. For nonemergency situations, notification is to be given BEFORE admission.
Which of the following outlines the authority given to the producer on behalf of the insurer?
producer contract
The main role of accident and health and disability insurance is to
protect against medical care costs and the loss of earning power
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
producer
Kelly purchases 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 f an individual health contract is issued on a conditionally renewable basis, the insurer has a right to refuse renewal for specific reasons stated in the contract only.
A whole life policy that provides a choice of dividend options must include the following statement about dividends
they are NOT guaranteed
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value?
$16,000 was received tax-free and $4,000 as ordinary income
EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is
2 years
A producer must maintain customer records for how many years following the completion date of the insurance transaction?
3 years
How many days notice does the Affordable Care Act require insurers to give before rescinding (cancelling) coverage?
30 days
A terminated employee has how many days upon termination to convert group life insurance coverage to an individual policy?
31 days In the event of employment termination, a person covered by a group policy also has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. If this right is exercised, the employee is responsible for the payment of premium.
What is the MAXIMUM number of employees an employer may have for qualified medical savings accounts?
50 employees Qualified medical savings accounts are available for employers with no more than 50 employees.
In regards to technology and the ACA, which of the following statements is correct?
States which operate with an Exchange must offer an internet-based portal People can purchase health insurance that complies with the Patient Protection and Affordable Care Act at ACA health exchanges, where they can choose from a range of government-regulated and standardized health care plans offered by the insurers participating in the exchange. An "off-exchange plan" refers to a health insurance policy that is not available for purchase within a federal or state exchange. An exchange is a government-run marketplace of health insurance plans.
Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for
The policy is surrendered for less than what was paid into it All of these transactions may result in taxable income EXCEPT for when an owner surrenders the policy for less than what was paid.
Insurance crimes which affect interstate commerce are prosecuted by the
US attonrey general. violation of US code 1033, crimes by or affecting persons engaged in the business of insurance whose activiities affect interstate commerce is prosectued by attorney general
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 The interest rate applied to the cash value within a market value adjusted annuity is guaranteed only when the contract has been in force for a stated time period.
Which of the following would NOT be appropriate for an immediate annuity?
a parent saving for a child's college. setting up a college savings account for a young child would NOT be a suitable situation for an immediate annuity An immediate payment annuity is an annuity contract that is purchased with a single payment and pays a guaranteed income that starts almost immediately. ... Such annuities are especially suitable for retirees who are concerned about outliving their savings. all of the following would be appropraite for an immediate annuity: - lottery winner who opted for lump-sum payment -beneficiary collecting face amount of a life insurance policy -someone who just won a large settlement
When the court orders an insured to provide a child's health insurance, the insurer must allow the child to be enrolled
at any time When the court orders an insured to provide a child's health insurance, the insurer must allow the child to be enrolled at any time with no open enrollment restrictions.
