insurance study
Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1500 in covered health care services. how much will her group insurance carrier pay?
$900
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays 25% how much would a 10,000 benefit be taxable as income under this plan?
0
The typical long-term care insurance policy is designed to provide a minimum of ___ years of coverage
1
Sole proprietors are permitted tax deductions for health costs paid from their earnings in amount of
100% OF COST
XYZ insurance company receives satisfactory proff of loss for a claim, if XYZ does NOT pay the claim within 60 days of receipt the insurer MUST pay simple intrest of _ per annum.
12%
Michigan requires that a licensee complete_ hours of continuning education on the subject of ethics every reporting peroid
3
The acceptance of a credit life application requires the submission of certificate of insurance to the insured within __ days
30
A baby is born to a husband a wife covered under a family accident and health insurance policy. if the newborn is covered at birth, the first payment for the additional coverage would become in due _ days
31
An insured has a stop-loss limit of 5000 a deductible of 500 and an 80/20 coininsurance. The insurered incurs 25000 of covered losses. How much will the insured have to pay?
5000
A roth IRA owner must be at least what age in order to make tax-free withdraws?
59 1/2 AND OWNED ACCOUNT FOR A MINIMUM OF 5 YEARS
How many months can a life insurance policy normally be backdated from the date of application
6
In michigan, legal action may be taken against an insurer up to _ years fir failing to pay a life insurance claim after proof of loss was submitted.
6
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences?
60
At what age will a person normally enroll with an insurance carrier under a part C medicare advantage plan?
65
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. how much will she pay if she incurs a loss of 1500
700
A fee for service health imsuramce plan will normally cover
A DISEASE
A medical provider that accepts Medicare Assignment must
ACCEPT PAYMENT BASED UPON A MEDICARE SCHEDULE AS PAYMENT IN FULL
Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?
ACCIDENTAL BODILY INJURY PROVISION
All of these are common exclusions to a life insurance policy EXCEPT
ACCIDENTAL DEATH
All of these are valid policy dividend options for a life insurance policy owner EXCEPT
ACCUMULATE WITHOUT INTREST
A non-contributory health insurance plan helps the insurer avoid
ADVERSE SELECTION
What does the group life underwriting risk selection process help protect insurance companies from?
ADVERSE SELECTION
Fixed period settlement options are considered to be a form of an
ANNUNITY
How soon can the benefit payments begin with a deferred annunity?
ANYTIME WITHIN 12 MONTHS AFTER DATE OF PURCHASE
A renewable term life insurance polict can be renewed
AT A PREDETERMINED DATE OR AGE, REGARDLESS OF THE INSURED HEALTH
Why are dividends from a mutual insurer not subject to taxation
BECAUSE DIVIDENDS ARE CONSIDERED TO BE A RETURN OF PREMIUM
Which of the following is NOT a valid reason for an insurer to refuse renewal of a small employer group plan?
CLAIMS WERE HIGHER THEN EXCPECTED
an indemnity plan limitation that will pay the dental bills after a small amount is paid by the insurered is called?
COININSURANCE
Life insurance policies will normally pay for losses arising from
COMMERCIAL AVATION
__ Is NOT an element of a valid contract
COUNTERSINGNATURE
A medicare supplement polict is
DESIGNED TO FILL IN THE GAPS OF PART A AND B
A doctor who accepts medicate assignment agrees to which of the following?
DOCTOR CANNOT CHARGE MORE THAN MEDICARE'S SCHEDULED COVERAGE
In the michigan insurance code, Chapter 45 insurance fraud defines financial loss as all of the following
EXCEPT ANSWER: ADDITIONAL PRMIUMS
Elizabeth is the beneficiart pf a lfe insurance policy. She is receiving the death benefit in payments of 10,000 per month until the prinicipal and interest has been paid out. which option was chosen?
FIXED AMOUNT
All of these are characteristic of a universal life insurance policy EXCEPT ANSWER
FIXED SURRENDER VALUE
An insured's status under social security can be described as
FULLY INSURED
Under writers can acquite information from all of the following sources
GENETIC TESTING
A master contract and certificate of coverage can be found in which type of policy?
GROUP
All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT
HEALTH REIMBURSMENT ARRANGMENT PLAN
Health insurance will typically cover which of the following perils?
INJURY DUE TO ACCIDENT
All of the following statements correctly describe the purpose of Social Secuirty EXCEPT
IT PROVIDE OF INCOME FOR A MEANINGFUL STANDARD OF LIVING DURING RETIRTMENT
An insurer's ability to make unpredictable payouts to policy owners is called
LIQUIDITY
Which of the following is considered to be a point of service (POS) plan?
MANAGED CARE PLAN
Shirely has a medigap policy, which is designed to pay cost associated with
MEDICARE PARTS A AND B
Which type of plan would be most appropriate for an individual on medicare and is concerned that medicare will NOT pay for charges exceeding the approves amount?
MEDICARE SUPPLEMENT PLAN F
Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to its participants
MULTIPLE EMPLOYER WELLFARE ARRANGMENT (MEWA)
A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the
NAMED LIVING PRIMANY BENEFICIARIES
How are contributions made to a Roth IRA handled for tax purposes?
NOT TAX DEDUCTIBLE
Richard owns an insurance policy that is renewable only at the option of the insurance company. his policy is considered to be
OPTIONALLY RENEWABLE
What kind of life insurance policy issues by a mutual insurer provides a return of divisible surplus?
PARTICIPATING LIFE INSURANCE POLICY
Which of the following is NOT a common exclusion for a medical expense policy?
PHYSICAL THEARPY
Under a modified endowment contract, what are the likely tax consequences?
PRE-DEATH DISTRIBUTIONS WILL BECOME TAXABLE
When comparing an HMO to a PPO, the PPO ANSWER
PROVIDES A GREATER CHOICE OF PROVIDERS
Premiums paid that exceed 7 1/2% of an insured adjusted gross income (AGI) are tax-deductible when paid for which of the following plans
QUALIFIED LONG TERM PLAN
All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT
REDUCTION OF PREMIUM
Which of these BEST describes the illegal act of twisting?
REPLACING AN INSURANCE POLICY FROM ONE INSURER TO ANOTHER BASED ON MISREPRESENTATION
Which of these is NOT the responsibility of a producer?
REPRESENT THE INSURED
In the state of michigan. a licensed producer
REPRESENTS THE INSURER
Typically, long-term disability benefits are coordinated with which benefit plan?
SOCIAL SECUIRTY
An insurer's claim settlement pratices are regulated by the
STATE INSURANCE DEPARTMENTS
Which of these have the highest monthly payout upon annuiltization?
STRAIGHT LIFE
Who is the individual paid on a fee for insurance basis?
SUBSCRIBER
What is medicare part B also known as?
SUPPLEMENTARY MEDICAL INSURANCE
Converting a group plan to permanet life insurance requires
THE CONVERSION BEING APPLIED FOR WITHIN 31 DAYS OF TERMINATION
Krissa purchase a 10- year level term life insurance policy that has a death benefit for 200,000. which of these statement is true?
THE FACE AMOUNT AND PREMIUM WILL REMAIN CONSTANT OVER THE 10-YEAR PERIOD
When a preferred provider orginzation PPO insured goes out of network, which of the following actions occur?
THE INSURER WILL PAY A REDUCED AMOUNT
Which of the following does a life insurance policy summary normally insclude?
THE POLICY CASH VALUE
A life insurance policy sold in michigan may be contested by the insurer ONLY during the first __ years of the contract
TWO
A life insurance policy that is subject to a contract interest rate is referred as
UNIVERSAL LIFE
"Maximum benefits" refers to the
UPPER LIMIT OF THE TOTAL LIFETIME BENEFITS THE INSURANCE COMPANY WILL PAY
An individual can enroll in parc c medicare advantage plan at what time? ANSWER
WHEN BECOMING ELIGIBLE FOR MEDICARE
When are group disability benefits considered to be tax free to insured?
WHEN THE RECIPENT PAYS THE PREMIUMS
