Life and health
If the commission sets a date for a hearing on a suspected violation of the insurance laws or regulations, it must give the party charged with the violation at least how many days notice before the hearing?
10
To be fully insured under social security how long must one work?
10 years
Ralph's AGI is $100,000. His unreimbursed medical expenses are $11,000. He also paid $10,000 for health insurance premiums. How much is Ralph's medical expense deduction?
11,000 (100,000 X 10% = 10,000)(11,000+10,000 - 10,000) = 11,000
How many standard provisions did the NAIC develop for use in health insurance policies
12
How many days until insurance company must mail a copy of the termination notice?
15 days
A copayment provision requires the insured to pay a percentage of the covered costs, which typically is:
20 to 30 percent
How long must you keep all insurance transactions
3 years
How many days to comment after termination?
30
How many days to return a Medicare supplement policy for a full refund?
30
How many days to submit your new business address to the commission
30 days
Insurance company must either reject the application or appoint Derek its agent no later than
30 days
How many days to correct change or delete personal information
30 days after request
Medigap and LTC insurance free look period
30 days each
What is the typical grace period length
31 days
How many years must you keep advertisement records
4 years
What fits category of small employer for group insurance
49 employees 2 of whom are related
after the deductible is paid, the insured can expect medicare part A to cover all eligible hospital expenses without a copayment for up to
60 days
to be credited against an exclusionary period for pre-existing conditions, a coverage period cannot have a break in coverage that lasts:
63 days or more
An individual may continue group health insurance coverage after termination from a group plan for at least how many days?
90
How long does the insured have to give written proof of loss to the insurer?
90 days
Which of the following statements regarding variable annuity annuitization is correct?
Annuitization under a variable annuity contract provides income payments that can fluctuate up or down
Which statement about maximum benefit periods in disability income policies is correct?
Benefit periods in short-term disability income policies are limited to two years or less
which statement describes the "pool of money" approach to benefits under a long-term care insurance policy?
Benefits are defined as a total sum of money from which money can be drawn in any amount for as long as the money lasts
Dental plan with diagnostic and preventive care
Category 1. Category 2 is fillings extractions and periodontal treatment
Dave receives Social Security retirement benefits. His wife Cathy is still working. Which statement about Cathy's Social Security spousal benefit is correct?
Cathy can choose either the spousal benefit or the worker's benefit.
Which statement about Roth IRA is correct?
Contributions to Roth IRA cannot be deducted
Which level of long term care can you see in assisted living, adult day care, respite centers, or a person's home
Custodial care
When must agents licensed in Virginia complete continuing education?
December 31 of every even-numbered year
Purpose of the insuring clause is to:
Describe the type and scope of coverage
Which of the following statements regarding the life insurance needs analysis is correct?
Determining the ongoing income needs of surviving dependents is a critical part of the needs approach to life insurance needs analysis
Which federal law regulates group health plans and protects their enrollees?
ERISA
Which of the following statements about section 457 qualified plans is correct?
Earnings accumulate tax deferred
Which of the following statements best describes how employer-paid premiums for a nondiscriminatory group life insurance plan are treated for tax purposes?
Employers can deduct premiums paid on a group life insurance plan
How often must you fulfill continuing education
Every 2 years
An agent whose license is revoked in Virginia cannot apply for another license for how long?
Five years
In a front-end loaded universal life contract, when does the insurer deduct a charge to cover the costs of administering the policy?
From the premium payment before it is credited to the policy's cash value
Which of the following statements about IRA rollovers is correct?
Funds can be rolled over tax free from one IRA to another
Which of the following most correctly describes death benefit Option 1 of a universal life insurance policy?
It has a level death benefit, equal to the cash value and a net amount at risk that decreases at the same rate that the cash value increases
Which Provides health insurance coverage?
Medical Expense Plan (MEP)
What was the forerunner to the health savings account
Medical savings account (MSA)
Medicare supplement insurance policies supplement coverage of which Medicare part?
Medicare parts A and B only
Fifth dividend option
One-year term life insurance equal to the base policy's cash value or the amount that the dividend can purchase
Which of the following would be a rebate to policyholders
Payment of part of the commission
What is another name for the annuitization phase of an annuity contract
Payout stage
A major medical expense policy requires the insured to pay separate deductibles for each illness or each accident. What type of deductible does it have?
Per cause deductible
If someone contributes to IRA and other doesn't, what is true?
Person who contributed will have lower income tax
The fact that ownership of a health insurance contract cannot be transferred to another party makes it what type of contract?
Personal
Which of the following explains why a traditional waiver of premium rider does not work with a universal life insurance policy?
Premium amounts for a universal life policy are flexible, whereas they are fixed traditional life insurance policies
Amount paid for death under AD&D
Principal sum
Which statement about SEP is correct
SEP plans do not accept employee contributions
Grace owns a fixed annuity and wants to exchange it for a variable annuity. What must she use to be sure no taxes are imposed?
Section 1035 exchange
All of the following statements about family term riders with life insurance are correct EXCEPT:
Spouses are provided more coverage than children under a family term rider
A currently insured worker is eligible for which of the following Social Security benefits?
Survivor death benefits only
what must you prove in a viatical settlement
Terminal or chronical illness
In general, all settlement options with a life contingency base payments on which of the following?
The beneficiary's life expectancy
What is the main difference between a traditional deferred compensation plan and a salary continuation plan?
The covered employee does not defer compensation with a salary continuation plan
what does the life insurance company do upon an insured's death if there is a collateral assignment attached to the insured's policy?
The insurer pays the collateral assignee the balance of the loan still owed out of the death benefit, and the rest of the death benefit goes to the beneficiary
What will happen if the outstanding balance of a whole life insurance policy loan, including accrued interest, ever exceeds the policy's cash value?
The insurer will cancel the policy
All of the following statements about the net premium for a traditional life insurance policy are correct EXCEPT:
The net single premium for a traditional life insurance policy is the amount actually charged to the policyowner who wants to purchase the policy with a single premium payment
What is the primary difference between a revocable and an irrevocable beneficiary?
The policyowner's ability or inability to change the beneficiary designation
What will cause a health insurance policy to lapse?
The premium is not paid by the end of the grace period
Who completes an attending physician's statement (APS)
The proposed insured's doctor, who is familiar with how the medical condition is being treated
All the following statements regarding the "spendthrift clause" of a life insurance policy are correct EXCEPT:
The spendthrift clause keeps beneficiaries from claiming any death benefits until the insurer checks their personal and business credit histories
Which statement about deferred annuity surrender charges is correct?
The surrender charge percentage typically decreases over the surrender charge period
Under the transfer for value rule, the portion of a life insurance death benefit recognized as taxable income is calculated in which of the following ways?
The taxable gain is calculated as the death benefit minus the purchase price and minus premiums paid by the new owner
Endowment contracts are NOT considered life insurance (for tax purposes) because:
They endow before age 120
Which statement about disability buy out insurance policies is correct?
They may be used with either a cross-purchase buy-sell agreement or an entity purchase buy-sell agreement
Employees are NOT permitted to enroll in a group health insurance plan when:
They sustain an injury or illness that requires medical attention
In setting premiums for a new policy, when do actuaries assume those premiums will be paid?
They will be paid in full at the beginning of the policy year
Life insurance policies issued in Virginia must provide for policy loans from cash value if they have been in force for at least how many years?
Three
What can be covered under 259?
Tuition and mandatory fees
The Virginia insurance Guaranty Association does NOT protect risks associated with what type of insurance?
Variable life insurance
what happens if you fail Virginia insurance agent's exam 3 times
Wait 30 days
Which statement correctly describes the transfer-for-value rule in life insurance taxation
When life insurance policies are sold to another party, the beneficiary may be subject to income tax on the death benefits, but only to the extent of the policy's gain
Which is most correct about variable life insurance
With a variable life insurance policy, the policyowner assumes most of the investment risk
Lottery winners who want to receive their winnings in installment payments over a 20-year period will most likely be set up with:
a structured settlement, using an immediate fixed annuity, that guarantees the distribution of payments over the specified period
Once the insured has triggered the benefits of a long-term care insurance policy, when will they begin
after the elimination period
Catch up contributions to a traditional IRA
age 50 or older
Disability income insurance policies sold to those in blue-collar occupations typically use which definition of total disability
any occupation
How many days do you have after leaving a group plan to buy individual plan without evidence of insurability
apply within 31 days of leaving the group
Which is NOT a benefit option common to section 125 cafeteria plans
child day care
What type of life insurance to insure the declining balance of a home?
decreasing term
Guaranteed insurability riders are typically found in
disability income
When a person exhausts health insurance coverage under COBRA, HIPAA guarantees that the person will:
have access to a guaranteed-issue individual health insurance policy, regardless of health
What forms the basis of a health savings account
high-deductible, high out of pocket cost insurance plan with a tax favored savings account
An insurer would use which of the following to limit or exclude coverage for an applicant's health condition
impairment rider
The time limit on certain defenses provision in a health insurance policy is like which provision in a life insurance policy?
incontestability clause
A group short term disability income plan (STD) typically has a maximum benefit period of
less than 2 years
What type of life insurance company is owned by the policyowners?
mutual company
Best health insurance while someone is unemployed
nonrenewable term policy
suicide exclusion period
one to two years
The purpose of the social insurance supplement (SIS) rider on a disability income (DI) policy is to:
pay additional monthly benefits until Social security disability benefits begin
Which of the following settlement options does NOT include a life contingency?
period certain-only option
With interest-sensitive whole life insurance policies, insurers may change premium rates after reviewing their investment experience in a process called
redetermination
An insurer can defer a policy loan for up to:
six months
An insured files a notice of claim but the insurer fails to provide the necessary forms to file the claim. What should the insured do to file the claim?
submit a written statement describing the loss
A business overhead expense policy does NOT provide
tax-free benefits
The cancellation provision allows an insurer to cancel a policy at any time with 45 days' notice. This 45-day notice requirement also applies when:
the insurer refuses to renew the policy or charges the premium
Which statement is correct about interest earnings within an individual's qualified plan account?
the participant pays no income tax on the earnings while accruing in the plan but will have to pay tax on them whenever and however they are withdrawn
What part of employer-funded group life insurance coverage- if any - is tax exempt for employees
the value of the first $50,000 of coverage
