Insurance exam review

Ace your homework & exams now with Quizwiz!

What does the rehabilitation benefit cover in a disability income policy?

Covers the approved cost of the rehabilitation necessary to help a disabled insured return to work

which of these is NOT considered a type of limited payment whole life insurance

Endowment at age 70

which of the following are used by most insurers when determining the premiums for large groups?

Experience rating

which statement concerning a decrease in term life policy is accurate

Face amount decreases over the policy period.

what is an insurance contract that identifies individual by relationship to a specific organization

Group Insurance.

Tonya has been diagnosed with kidney failure and is covered by group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months immediately following her diagnosis?

Her employer's group accident and health plan

In regards to health insurance, employees age 65 or older are typically required to

Offered the same health benefits as the younger employees

which of the following statements BEST describes disability buy/sell insurance policy?

Policy proceeds are typically received income tax-free

A certificate of coverage for a group health policy is best described as

Proof of coverage for the employee

the dental specialty which deals with the replacement of missing teeth is called

Prosthodontics

which term describes the elimination of hazard?

Risk Avoidance

which life insurance policy provision prohibits a beneficiary from "commuting, encumbering, withdrawing, or assigning" any portion of the proceeds prior to actual receipt from the company?

Spendthrift clause

Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan?

Taxes must be paid on 75% of the benefits received.

Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes?

The gain is treated as taxable income and a penalty tax is imposed on the gain

under which circumstance can an insurance company offer group health insurance

The sponsoring group provides an employer-employee relationship

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met.

disability income insurance normally excludes coverage for disabilities the arise from

active military duty

the absolute assignment of life insurance policy results in ...

all incidents of ownership transfers to the assignee

which type of policy in group term life would insurance normally be converted to?

an individual permanent life insurance policy

if replacement was involved in the sale of an insurance policy, a producer must provide a replacement notice no later than the ...

application date

Reductions in coverage are one feature of _______ in Health insurance policies.

cost containment

long term care policies will usually pay for eligible benefits using which of the following methods?

expense incurred

When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement?

eye exam

federally qualified HMOs must offer

family planning services

Which benefit supplement added to a life insurance policy insures an entire family?

family term rider

Which life insurance settlement option pays a stated monthly payment until both principal and interest are exhausted?

fixed amount settlement

Major medical policies are typically characterized by which of the following?

flat deductible

all individual long-term policies delivered in Maryland MUST be renewable ...

for life

According to the Affordable care act, coverage may be rescinded

if intentionally false statements were offered

An annuity which starts paying monthly benefits within a month after issuance is called a(n)

immediate

When must insurable interest exist for a life insurance contract to be valid?

inception of the contract

Medicare Part A typically covers

inpatient drugs

the maryland life and health guarantee corporation protects the ..... in the event of insurer insolvency

insured

what is another term used for a "pure life annuity"?

life income

Respite Care coverage is typically found in a(n)

long term care policy

which of the following options does tricare provides accident care

military families

life insurance premiums are computed on what 3 factors?

mortality, interest, and expenses

What must be disclosed when a producer advertises a life insurance policy?

name of the actual insurer

a drug which is used for a medical condition that is not approved to treat according to the food and drug administration is called

off label use

a life insurance guarantees insurability rider gives the insured the right, without proving insurability, to..

periodically purchase additional insurance

assigned good health assignment maybe requested by a life producer at the time of?

policy delivery

what is the name of the period of time during which a new employee is ineligible for group health insurance coverage

probationary period

which of the following in NOT required to be reported by a producer?

producers change in financial status

the commissioner is empowered to perform each of the following acts except:

prosecute producers who violate state insurance laws

Medicare supplement policy is required to which of the following?

provide a 30 day free look period

which of the following actions will result in a producer's licenses being suspended

rebating part of a commission to the applicant

An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the early contract years. What is this back-end load referred to as?

surrender charge

Qualified long-term care premiums are treated for tax purposes as

tax-deductible to the extent they exceed 7 1/2% of an individual's AGI (Adjusted Gross Income).

Medicare Part A does NOT provide coverage for

the first 3 pints of blood

what would be considered an advantage of purchasing life insurance?

the initial premium in lower

the reason for back dating a policy is

to obtain a premium based on an earlier age

which of the following best describes the purpose of HIPA

to reduce a pre-existing condition waiting period when coverage is sought for a new medical plan

Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy...

until they become self supportive

an insurance company failure to enforce a contracts provision is called a (an)

waiver

during the application process, a statement made by the applicate that becomes part of the contract in considered to be a

warranty representation

a non participating 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 policy owner on receipt of the cash value?

$16,000 was received tax-free and $4,000 as ordinary income

which of the following statements accurately describes the financial impact of total disability?

--financial impact may be worse than that of death

how many days notice must a producer be given prior to a scheduled hearing?

10 days

what is the maximum number of employees (earning at least 5,000$) that an employee can have in order to start a SIMPLE retirement plan?

100

the health insurance premiums paid for by each partner in a partnership is considered to be?

100% tax deductible

COBRA extends coverage for an existing spouse but at a rate not more than ____ of the group premium

102%

Individuals seeking Social Security disability income benefits must have a disability that will eventually lead to death, or be expected to last at least

12 months

the maximum prison sentence given under federal law for unfair and deceptive insurance practice is

15 years

Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of

20%

what is the MAXIMUM number of employees an employer have for qualified medical savings accounts

50 employees

a preexisting conditions limitation must not exceed ___ months in all medicare supplement policies sold in Maryland

6 months

which of the following best describes a point-of-service (POS) plan?

A plan which combines indemnity plan features with those of an HMO

what is a "functional assessment" for long-term care benefits?

A review of the insured's ability to perform the activities of daily living

A single-life annuity only has ONE

Annuitant

If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be increased

At least once per year from when benefits began

when does an individual or group health policies coverage for a new born child begin?

At the moment of birth

A producer recently replaced an existing Medicare Supplement policy with a new policy. the producers compensation for the new policy...

CANNOT exceed the renewal commission of the original policy

An employee welfare plan exempt from ERISA regulations would be

Church plans

A producer MUST notify the Commissioner for

Conducting business under an assumed name

in what situation would disability income insurance premiums be deductible expense?

Corporation paying for group disability income coverage for its employees

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Guaranteed insurability rider

A policy owner has just borrowed from a life insurance policy's cash value. Which of these statements is true?

In the event of death, the loan amount is deducted from the policy proceeds

What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual?

Management of proceeds would be provided

which of the following has the power to examine the books and required of Maryland insurers

Maryland insurance administration

Medicare Part A (co insurance payments) are covered by

Medicare Supplement Plan A

a life insurance policy owner would like a dividend option that results in a limited current outlay of funds. which dividend option would be chosen?

Reduction of premium payment

Security laws passed by Congress are enforced by which Federal agency?

Security and Exchange commission

in regards to technology and the ACA, which of the following statements are correct?

States which operate with an Exchange must offer an internet-based portal

which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities?

The market value adjustment can be either upward or downward

which statement concerning a deferred an annuity contract is correct?

The owner can be the beneficiary, annuitant, or neither

what happens when a policy owner borrows against the cash value of his life insurance policy?

The policy proceeds would be reduced by the outstanding loan balance

After an applicant reads and signs an insurance application, he/she should be conscious of the fact that

a false statement could result in the loss of coverage

medicare can be described as

a federal health insurance program for individuals over the age of 65 or permanently disabled

according to the Afforable care act (ACA), dependent children may remain on their parents plan until what age?

age 26

An agent's authority to bind an insurer to an insurance contract may be granted in the

agent's contract and the insurance company's appointment.

According to the Pregnancy Discrimination Act of 1978, employers must treat pregnancy in the same manner as

any other medical disability

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?

benefit level is reduced.

according to the needs approach, an emergency funds purpose is to ...

cover the cost of unexpected expenses

the main purpose of an annuity is to

create a stream of income

a separate covered policy may, at the option of the insurance company, be issued to cover a/an

dependent

group life plan sold in Maryland typically contain a conversion option. if the insured elects the option, the new policy ....

doe not require evidence of insurability

which statement is INCORRECT about the interest-only settlement option in a life insurance policy

interest on proceeds must be paid by the beneficiary

Policy owner 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 cover

less than the face amount

inpatient psychiatric care is covered under part A medicare for 190 days per ...

lifetime

an insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT

living in a rural area

Custodial care is normally covered under

long term care insurance

Employees generally receive workers compensation benefits for

lost wages and expenses due to occupational accidents

which of the following is NOT an unfair claims settlement practice?

refusing to pay persons bringing false or fraudulent claims

which of the following situations would an insurance agent need to guard against liability for professional error or omissions

making a recommendation to a potential insured to replace existing coverage

Beginning January 1, 2014, the restricted annual limit for plans under the Affordable Care Act will be

no limit

Tim is in need of surgery. Before being hospitalized, he is referred to an outpatient clinic for diagnostic tests. What is this an example of?

pre-admission testing

ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk

reduction

long-term care policies sold in Maryland may NOT exclude coverage for

senile dementia

assets the non-guaranteed values of variable life insurance are held in which account

separate account set up by the insurer

A stock insurance company is owned by it's

shareholders

If an individual would like to enroll in medicare or search for info on medicare, what agency would you tell them to look into?

social security administration

a producer may NOT advertise an insurance product if he/she

uses a policy title to misrepresent the coverage

Before a Medicare Supplement advertisement is released to the public, it must first be approved by the

Insurance Commissioner

which of these statements is not true regarding a cash value loan against a life insurance policy

Interest payments made by policyowner are deductible

which of the following doe NOT fall under hospital care in typical health maitainance organization (HMO) plan

Private duty nursing

What is considered a valid reason for a small corporation to insure the lives of its major stock owners?

Fund a buy-sell agreement

An employer pays the accident and health insurance premiums for its employees. The premiums paid by the employer are

Deductible to the business

which life insurance policy option allows for the policy owner to have coverage equal to the net death benefit of the last policy?

Extended term nonforfeiture option

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

which of these is NOT used as selection criteria in the underwriting process of a life insurance?

National origin

which of the following health insurance plans charges a premium that cannot be increased

Noncancelable

which statement regarding a life insurance premium for a children's rider is true?

Premium remains the same no matter how many children.

An insured is entitled to coverage under a policy that a prudent person would expect it to provide. This principle is called

Reasonable expectations

which of these must be disclosed in a universal life policy?

The surrender charges

which of the following involves sharing an uncertain risk with another similar group?

Transfer

which of the following BEST describes a "partial disability"?

Unable to perform one or more job duties

which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?

Unemployment tax liabilities

all of the following are typically covered under dental insurance EXCEPT

treatments done before the eligibility date

which of these policies is considered to be comprehensive life policy?

major medical policy


Related study sets

Ch. 42- Bowel Elimination/Gastrointestinal Disorder Prep U

View Set

Kinetics Quiz AP Chemistry Lovrencic

View Set

PDHPE-HSC Online- Health Priorities in Australia

View Set

Prokaryotic Transcription & Gene Regulation (L43)

View Set