Insurance exam
which policy issued only to those who are indebted to a creditor
Credit Life
insurance that is designed to pay the balance of a loan if the insured dies before the loan has been repayed in full is
Credit life insurance
social security total disability is the inability to engage in any one of these activities due to physical or mental disability
(12 months)
group long term disability benefits amount are usually limited to what percentage of the participants income
(60%)
the applicant must face the possibility of losing something of value in the event of the insured's death this principle is known as
(insurable interest)
the general enrolling period through medicare part B ends on
(jan 1- march 31)
which is the name of the policy that combines a universal life policy with investment choices
(variable)
contributions made to a roth ira are
Contributions to Roth IRAs are not deductible the year you make them: they consist of after-tax money.
which of the following is a pure risk
-Pure risk: Pure risk is a risk in which there is only a possibility of loss or no loss—there is no possibility of gain. Pure risk can be categorized as personal, property, or legal risk. Physical hazard. A physical hazard is a physical condition that increases the possibility of a loss.
with the majority of companies within how many days does the free look provision allow the insured the right to return the life insurance policy for full premium
10 days
under ohio continuation rules an employer with fewer than 20 employees must allow terminated employees to continue accident and health coverage for at least
12 months
home healthcare benefits typically include coverage for all of the following except
24 hour nursing care
an insured has a policy with a cash value of 1500 and an outstanding loan of 500 how much money will the insured receive under the cash surrender value option
500
at what age can an individual begin to receive distribution from an IRA without tax penalties?
59 ½
under a universal life insurance policy a corridor represents the
A concept in universal life insurance. The corridor is the amount of pure insurance protection above the accumulation value to qualify as life insurance for tax purposes.
the primary difference between non cancellable policy and a guaranteed renewable policy is that the only list a noncancellable policy
A disability insurance policy is considered non-cancelable if the insurance company cannot raise rates as long as the premium is paid. A non-cancelable policy typically has a 20% additional premium charge versus guaranteed renewable only policies. Guaranteed renewable only policies do not have guaranteed level rates
which of the following is true of a payor benefit rider?
A payor benefit rider provides a temporary waiver of the policy premium if the premium payor dies, until the minor insured reaches the age stated in the policy (usually 18 or 21). The correct answer is: Temporary waiver of the policy premium
prior to annuitization what is the nonforfeiture value of an annuity?
All premiums paid, plus interest, minus any withdrawals and surrender charges.
a point of service plan is an example of
Also known as open ended HMo's a combination of HMOs and ppo plan
an annuity product linked to a market related rate of return is called
An equity indexed annuity
a comprehensive medical expense insurance policy combines which of the following coverages under one contract
Basic Hospital and Surgical coverage with Major Medical coverage
some health plans pay benefits on a usual customary and reasonable basis while other plans may pay established amounts in accordance with a list of injuries surgical procedures or other losses what is this list known as?
Benefit schedule
some health plans pay benefits on a usual customary and reasonable basis while other plans may pay established amounts in accordance with a list of injuries, surgical procedures or other losses. What is this list known as?
Benefit schedule
which approach considers the future needs of the survivors in determining the amount of life insurance
Either capital needs analysis or human life value
when individuals purchase life insurance to enable their heirs
Estate preservation
which method is used to determine the taxable portion of each annuity payment
Exclusion ratio
which of the following provides a death benefit if the spouse of the insured dies
Family Term Rider
generally what are the tax implications of life insurance proceeds to the beneficiary
Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have to report them. However, any interest you receive is taxable and you should report it as interest received.
an insurer must offer a long term care policy or certificate that
Has a nonforfeiture value
insurers offering a dental care plan minimize adverse selection by
Insurance companies have three options for protecting against adverse selection, including accurately identifying risk factors, having a system for verifying information, and placing caps on coverage.
an annuity that guarantees a given number of income payments whether or not the annuitant is alive to receive them is referred to as
Life annuity Certain
an annuity that guarantees a given number of income payments whether or not the annuitant is alive to receive them is referred to as
Life annuity certain
every individual subscribing to a health care plan must receive a solicitation document when the policies delivered
Life insurance solicitations
what does limited payment whole life policy provide?
Lifetime protection
a travel accident policy and a dread disease contract are examples of
Limited risk policies
which of the following is not an element of insurable risk
Loss must be catastrophic
which of the following is an example of a persumptive disability
Loss of sight or deafness
the purpose of medicare supplement insurance is to address gaps in medicare coverage which can include
Medicare in-hospital deductible
all of the following factors are used in life insurance premium determination except
Mortality
penalties that may be imposed by private department of insurance for violations include all of the following except
NOT CIVIL PENALTIES
under workers compensation injured employees are covered for all of the following losses except
Pain and suffering
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
Participating life insurance policy
an employee of any age becomes immediately eligible for medicare when
Permanent kidney failure
Which of the following is NOT a common exclusion for a medical expense policy?
Physical therapy
if the business pays premium as a business expense for a key employee business employee which of the following is true about tax consequences
Premiums are tax deductible
what does limited payment whole life policy provide?
Premiums on limited payment life insurance are paid for a limited number of years, but the benefits last a lifetime. Premiums are payable for 10, 15, or 20 years depending on the policy selected. You can pay premiums monthly, quarterly, semi-annually, or annually. Guaranteed cash value grows tax-deferred
under ohio law an HIC may release a subscribers confidential medical information for any of the following reasons except
Public interest
reinsured are specialized branch of the insured industry because they
Reinsure insurers
if a premium is not submitted with a life insurance application the agent must have the applicant sign which of the following when delivering a policy
Replacement
which is an accurate description of the relationship between the premiums of a whole life policy and the premium payment period
The shorter the payment period, the higher the premium
which of the following policies has a guaranteed interest rate with the possibility to earn an interest rate higher than the guaranteed rate
Universal life has a guaranteed interest rate with the possibility to earn an interest rate that is higher than the guaranteed rate.
under what circumstance must an agent provide his or her business records
Upon request of the commissioner
according to the uniform option of provisions what actions can the insurance company pay if the insured unintentionally understated his or her age on the
Whatever the premium would be at the correct age
interest earned on a traditional IRA is taxed
You don't report interest income generated by investments held in your IRA when you file your federal income tax return. Distributions from your traditional IRA are typically taxed as ordinary income. ... Under a traditional IRA, interest earned is taxed, therefore, when you withdraw it from your account
kelvin is receiving tax deferred growth until retirement in what phase would kelvin be in
accumulation
an illegal occupation provision insures that the insurer is not liable for any losses incurred while the policy owner was
an insurance company will not pay any benefits to a policyholder if the loss occurred when the policyholder was committing a felony. ... The illegal occupation provision also applies in situations where a policyholder has an illegal occupation.
an agent's actions or deeds demonstrate what kind of authority
apparent
According to Ohio HIC laws, confidentiality of health information applies to
applies to information supplied by: Both by the covered individual and by providers
restorative dental treatment covers which of the following
crowns
who may terminate an agent's appointment?
insurer
the change of beneficiary provision states the policy owner has the right to change the beneficiary unless the beneficiary is
irrevocable
the primary difference between pre certification provision and concurrent review is that the only pre certification provision
occurs before the treatment is provided
The cause of loss is a
peril
an example of an alien insurer would be
provides insurance coverage in a country or countries other than its country of domicile
what is the focus of major medical insurance
providing coverage for medical and hospitalization expenses.
