INTERNSHIP LIFE AND HEALTH REVIEW
contract
In group insurance, the evidence of an agreement between insurer and the employer or association is the?
for a specified minimum number of years, or the rest of his life, whichever is longer.
A life annuity with period certain settlement option pays the annuitant.
requires premium payments for a specified number of years or until a specified age is reached
A limited pay life policy?
the gatekeeper concept
In health maintenance organizations, the use of a primary care physician, or pcp, is common as part of?
only partly subject to federal taxation
Income payments made from an annuity are?
has a death benefit that varies to reflect the investment results if the underlying separate account but will not drop below a guaranteed minimum
A variable life policy?
Family Dependency Period
Carol's husband dies, leaving her with a 5-year-old daughter to support. Which of the 3 income periods is Carol in currently?
less costly and have less benefit options
Compared with individual disability income policies, group disability income policies are generally?
$10
Jack has a variable annuity in a separate account that has a Porfilio valued at $5 million. There are 500,000 outstanding accumulation units for the account. What's the value of 1 unit?
medical care provided by physicians and other medical services
Medicare coverage Part B covers
joint life and survivor annuity settlement option.
Mr. and Mrs. Burden receive a monthly annuity payment. Mr. Burden dies, but Mrs. Burden continues to receive monthly annuity payment. The Burdens have a?
Life Insurance
Nathan and Susan want to fund their IRA. Which of the following vehicles for funding is not allowed?
$800.00
Nick has a major medical policy with an 80/20 coinsurance arrangement. Assuming he has already met his deductible, if Nick has a $1000.00 medical bill, how much will the insurer have to pay?
The applicant's current medical treatments
Part 1 of the insurance application includes all of the following except.
life with refund annuity
Paul dies before his annuity has paid out an amount at least equal to the purchase price of the annuity, so Paul's beneficiary continues to receive annuity payments until that amount has been reached. This type of annuity is a?
must have a valid life license and must be registered with FINRA
Producers selling variable life insurance.
only on the health insurance exchange
Qualified Health plans (QHP) that a part of the affordable care act is sold?
fines, imprisonment, or both
The punishment for fraud or making false statements may include?
Mortality
The relative frequency of deaths in a specific population is known as?
At the time of application
With life insurance, insurable interest must exist?
only if the child is permanently mentally or physically disabled before that age
A child may be a dependent beyond the ages of 26?
is guaranteed to remain in force as long as premiums are paid.
A whole life policy?
a reoccurring disability
All of the following are common exclusions in a disability income policy except:
any occupation definition and is more restrictive than other defintions.
An insured's disability income policy defines total disability as the insured's inability to perform the duties of any occupation for which he is reasonable qualified by education, training, or experience. This definition is known as the?
Limited Policies
Dread disease, travel accident, vision care, and hospital income policies are all examples of?
the policyowner is someone other than the insured
Third-Party ownership refers to a situation in which?
equal to 100% of the workers primary insurance amount (PIA)
Under Social Security disability benefits, a qualified disabled worker receives a benefit?
Insurance
A contract that transfers the risk of financial loss from an individual or business to an insurer is known as.
Waiver of premium
A health insurance policy includes an endorsement indicating that the insurer will allow the policy to continue in force without further premiums if the insured is totally and permanently disabled. Which endorsement is attached to this policy?
Face Value
A policyowner allows a policy to lapse, and the insurance company converts the policy to the extended term option. Which of the following from the original policy will automatically carry over into the new policy?
a transfer of funds from one IRA to another
A rollover refers to which of the following?
during the annuitant's lifetime with no refund upon his death.
A straight life annuity pays a periodic income?
assignment
All of the following are elements of a contract except:
last expenses
All of the following are living benefits of life insurance except.
Protects against dying too soon
All of the following characteristics of an annuity except:
Annuitant's place of residence
All of the following factors are used to determine annuity payment amounts except.
The beneficiary
All of the following individuals are required to sign documents to complete the insurance application except?
Premiums paid are tax deductible
All of the following statements about individual life insurance tax treatment are correct except:
$1.5 million
Alma, age 35, earns $50,000 a year and expects to retire when she is 65. What is Alma's human life value?
provides a lifetime income through periodic payments to the annuitant
An annuity is a contract that?
the insurers operating costs
An expense load is also known as.
A partial disability
An injury that causes a person to only be able to perform some, but not all, of the essential duties of his or her occupation is.
equal value is not given by both parties to the contract
An insurance contract is an aleatory contract This means?
only the insurance company is bond to live up to its side of the agreement
An insurance policy in unilateral contract because?
will automatically institute the extended term option
An insured allows a permanent policy to lapse. Unless otherwise instructed, the insurance company
Partially Disabled
Before Cranston was disabled, he was a full-time engineer earning about $70,000 annually. Now, 2 years later, he is able to work part-time, earning about $25,000 annually. It is likely that Cranston would be classified as.
$8,000
Ed has $50,000 policy with cash values of $10,000. Including the interest owed, there is a $2,000 policy loan outstanding. Ed finds he can no longer make premium payments on his policy. If Ed chooses the cash surrender value option, he will receive
tax deductible to the employer and nontaxable to the employees
Employer-paid premiums for employee group health insurance are generally?
Competent Parties
For a contract to be binding, both parties must have the legal capacity to make a contract. The principle is known as.
prescription drugs
Health maintenance organizations are required to provide for all of the following except.
The cash value is greatest at the end of the policy period, and the insurance protection is greatest at the start of the policy
In a whole life insurance policy?
Option B
Leah Smith has universal life policy. She wants an increasing death equal to the face value of the policy plus the cash account. Which of the following death benefit options should Leah choose?
stop-loss limit
Many major medical policies include provisions whereby when expenses reach a certain dollar amount, the insured no longer shares in the cost of expenses, the insurer pays 100% of remaining covered charges. This is referred to as the?
plus, interest have been repaid and fewer than 3 years have elapsed
Once a policy has lapsed, the insured usually can reinstate the policy, provided proof of insurability is shown, if all back premiums due?
the insured is not required to show proof of insurability in order to renew or convert
One of the greatest advantages of convertible and renewable term polices is that
Has average health and a normal life expectancy
Susan has been classified as a standard risk by her insurance company. This means that Susan?
builds no cash value and pays a death benefit only.
Term insurance differs from permanent insurance in that term.
can be used for loans or later as retirement income
The Cash value accumulation in a life insurance policy?
is determined by the investment experience of the separate account.
The Cash value of a variable life policy?
Nonqualified Plan
The Lucrative Lozenge Company provides a $5,000 monthly bonus plan to retirees who served executives this benefit is not available to other retirees of the company. This is an example of a?
a non-profit insurance trade association
The Medical Information Bureau is?
give insureds as much coverage as possible while eliminating overinsurance
The coordination of benefits provision is designed to?
May go up or down but will never fall below the guaranteed minimum amount specified in the policy.
The death benefit of a variable life policy?
a time deductible
The elimination period in a disability policy may be thought of as?
medical expense policies
The federal affordable care act (ACA) eliminated pre-existing condition exclusions for which of the following polices?
Concealment
The intentional failure to disclose known facts is known as?
During the first two years after the policy is in effect, the insurance comapny will only pay the premium paid by the insured not teh face amount of the policy
The suicide clause states, that if an insured commits suicide:
The time during which payments are made to the annuitant
The term annuity period refers to which of the following?
variable annuity
The type of annuity in which value grows according to the performance of investment medium, and in which benefits may fluctuate according to the market performance, is called a?
life with refund annuity
The type of annuity that guarantees to pay total income at least equal to the purchase price of the contract is a?
health maintenance organization
The type of health care provider that is a managed care entity and provides both health care services and health care financing is a?
a blanket policy
The type of health insurance policy most likely used to cover all students attending a large university is known as.
a fee for service
The usual payment arrangement under a preferred provider organization contract is?
The amount of outstanding indebtedness at any given time
Under a group credit disability policy, what is the maximum amount of any accidental death benefit included?
survivorship, or second-to-die, policy
Warren and Wilma have a joint life policy. Warren dies, and the policy pays nothing. Later on, Wilma dies, and the policy death benefit is paid to the beneficiary. This is called a?
Benefits could be paid up to a certain percentage of the death benefit
What statement about accelerated death benefits is correct?
will pay only the amount of insurance that Jonas's premiums would have purchased at his correct age
When Jonas died, it was discovered that he was actually 6 years older than he had claimed when applying for an insurance policy. As a result of this discovery, the insurance company?
75%
When a group plan is contributory, what percentage of employees must want and be willing to pay for coverage?
Usual, customary, and reasonable charges
When medical expense policies do not state dollar benefit amounts but instead base payments on the charges for like services in the same geographic area, benefits are designated as which of the following?
annuity units
When the annuity period begins in a variable annuity contract, the accumulation units are converted to?
Not taxable as income
When the entire death benefit is paid in a lump sum to a beneficiary it is?
as soon as a month after purchase
When would an immediate premium annuity begin payments to an annuitant?
A mutual insurance company
Which is the proper term for a company owned by its policyowners?
Medicare preferred provider organization (PPO) plans
Which of the following Medicare advantage plans have a network of providers, but no gatekeeper and enrollees pay more if they go outside of the network?
preferred risks
Which of the following classifications of risks would typically have the lowest premium payment?
Family Dependency
Which of the following is considered an income need when determining the amount, a person needs for personal life insurance?
inpatient hospital coverage for a semi-private room
Which of the following is covered by Medicare Part A?
Working
Which of the following is not considered an activity of daily living (ADL)?
Written Documents
Which of the following is not necessary for the formation of a valid contract?
Universal life
Which of the following life insurance policies was designed for individuals who want flexible premiums and flexible coverage over the course of their lifetime?
Retention
Which of the following methods of handling risks means that an individual will pay for the loss if it occurs?
provides medical benefits for certain low-income people, for the disabled, and for families with dependent children.
Which of the following phrases correctly describes Medicaid?
MEC's are not life insurance but do offer tax-free death benefits
Which of the following statements about modified endowment contract (MEC) is incorrect?
The initial premium is lower than term insurance
Which of the following statements about the whole life insurance is incorrect?
George has no income and 2 years of medical school to complete. He and his wife have 1 child.
Which of the following statements most likely calls for the purchase of term insurance?
COBRA protects dependents of employees by mandating for them the same extension and conversion privileges available to employees covered by group plans.
Which of the following statements regarding COBRA is Correct?
the benefit payments are not guaranteed
Which of the following statements regarding fixed annuities is not correct?
an annuity contract exchanged for a life contract
Which of the following would not be permitted as a section 1035 policy exchange?
Employer contributions are not tax-deductible to the business.
Which statement about employer sponsored tax-qualified retirement plans is incorrect?
Reducing Hospital Care Costs
Second surgical opinions, preauthorization, limits on length of stay, and outpatient benefits are all elements of?
