Missed L&H
if a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits?
12 credits
how long does the law require agents to maintain records of transactions pertaining to premium payments?
3 years
a paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60 days
in order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits?
60 days
what is the maximum age that a disabled insured worker may receive social security disability benefits?
65
when is the General Enrollment period for Medicare Part B?
January 1 through March 31 of each year
LTC policies must cover which of the following?
alzheimer's disease
which of the following is NOT a type of whole life insurance?
level term
what does an annuity protect the annuitant against?
living longer than expected
how many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?
12
once the person meets the stringent requirements for disability benefits under Social Security, how long is the waiting period before any benefits will be paid?
5 months
in the state of Florida, it is illegal for a licensee's commissions from controlled business to exceed what percentage of the total in a given year?
50%
all of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT
an association of 35 people
what is the purpose of the gatekeeper in an HMO?
controlling costs
an individual has a $200,000 convertible term life insurance policy, if he chooses, he can
convert to a whole life policy for the same face amount without proof of insurability
in an basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?
corridor
the section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
insuring clause
Bethany studies in England for a semester. while she is there, she is involved in a train accident that leaves her disabled. if Bethany owns a general disability policy, what will be the extent of benefits that she receives?
none
when may HIV-related tests be provided to the MIB?
only if the individual is not identified
an insured committed suicide 6 months after his life insurance policy was issued. the insurer will
refund the premiums paid
all of the following are correct about the required provisions of a health insurance policy EXCEPT
reinstated policy provides immediate coverage for an illness
what happens if a non-member physician is utilized under the Point-Of-Service plan?
the attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount.
which statement accurately describes group disability income insurance?
the extent of benefits is determined by the insured's income
in a disability policy, the elimination (or waiting) period refers to the period between
the first day of disability and the day the insured starts receiving benefits
with adjustable life, the owner can change all of the following EXCEPT
the insured
what is the advantage of reinstating a policy instead of applying for a new one?
the original age is used for premium determination
when an insured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
which of the following is NOT an example of a business use of life insurance?
workers compensation
an employee is insured by a group major medical plan that is provided through her employer. the employer contributes 75% of the premium and the employee contributes the remaining 25%. if the insured received a benefit from this policy in the amount of $1,000, how much of this benefit would be taxed as income?
$0
which of the following is available to employers of all sizes?
HRAs
Medicare Advantage is also known as
Medicare Part C
when must an insurance company present an outline of coverage to an applicant for a Medicare supplement policy?
at the time of application
which of the following provides coverage on a first-dollar basis?
basic expense
which of the following is NOT true regarding a flexible spending account?
it does not have limits on contributions
an insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
mutual
which of the following describes taxation of individual disability income insurance premiums and benefits?
premiums are not tax deductible, and benefits are not taxable.
what does the application of contract of adhesion mean?
since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured
upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is
taxed as ordinary premium
which of the following is true regarding elimination periods and the cost of coverage?
the longer the elimination period, the lower the cost of coverage
which characteristic does NOT describe managed care?
unlimited access to providers
social security supplement (SIS) or social security riders would provide for the payment of income benefits in each of the situations below EXCEPT
when the amount payable under social security is more than the amount payable under the rider
what are the three basic coverages for medical expense insurance?
hospital, surgical, medical
under the long-term care marketing regulations, which of the following questions would a producer NOT have to ask the applicant in order to determine if the purchase is suitable?
how much are you able to pay in premiums?
an insured owns a general disability policy and is injured during a war, rendering him disabled. What will be the extent of benefits that he will receive?
0%
Medicare supplement policies, by law, must provide a free-look provision of
30 days
all of the following would be qualified as a dependent under a Dependent Care Flexible Spending Account, EXCEPT
Jeremy had to have both legs amputated, but has learned how to take care of himself and to get around in a wheelchair
if a health care plan has characteristics of an HMO and PPO, what type of plan is it?
POS
employer contributions made to a qualified plan
are subject to vesting requirements
what is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application?
as long as the policy is in force
an applicant gives her agent a completed application and the initial premium. what can the agent issue her that acknowledges her initial premium payment?
conditional receipt
the gatekeeper of an HMO helps
control specialist costs
the policyowner wants to make sure than upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. which settlement option should the policyowner choose?
interest only option
under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
nothing; the payments will cease
all of the following are the most common variations in a long-term care policy EXCEPT
number of family dependents
what is the official name for the social security program?
old age survivors disability insurance (OASDI)
with respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?
only an executive officer of the company
which universal life option has a gradually increasing cash value and a level death benefit?
option A
an insured purchased a life policy in 2010 and died in 2020. the insurance company discovers at that time that the insured had misstated information about her insurance history on the application. what will the insurer do?
pay the death benefit
the period if time immediately following a disability during which benefits are not payable is
the elimination period
an employee quits her job where she has a balance of $10,000 in her qualified plan. if she decides to do a direct transfer from her plan to a traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?
$10,000, no tax consequence
a whole life policy is surrendered for a reduced-paid up policy. the cash value in the new policy will
continue to increase
the term "fixed" in a fixed annuity refers to all of the following EXCEPT
death benefit
a policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20 year period. what type of policy is this?
level term
under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
90 days of a loss
Medicare Part A services do NOT include which of the following?
Outpatient Hospital Treatment
an individual has been diagnosed with Alzheimer's disease. he is insured under a life insurance policy with the accelerated benefits rider. which of the following is true regarding taxation of the accelerated benefits?
a portion of the benefit up to a limit is tax free; the rest is taxable income
policy delivery refers the delivery of the
completed insurance policy to the policyowner
fixed annuities provide all of the following EXCEPT
hedge against inflation
all of the following are features of catastrophic plans EXCEPT
high premiums
to be eligible for a health savings account, an individual must be covered by a
high-deductible health plan
in LTC policies, as the benefit period lengthens, the premium
increases
which of the following settlement options in life insurance is known as straight life?
life income
an example of an alien insurer doing business in this state is one formed under the laws of
mexico
guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentation
death benefits payable to a beneficiary under a life insurance policy are generally
not subject to income taxation by the Federal Government
which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?
payment of claims
a medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called
prepaid plan
all of the following actions can be described as twisting EXCEPT
explaining to client the advantages of permanent insurance over term and suggesting changing policies
which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?
intermediate care
as an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT
issuing policies on behalf of the insurer
which of the following statements is INCORRECT?
medicare and medigap policies provide coverage for long-term custodial or nursing home care
in order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?
100
assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?
Amanda is 67 and is covered by a basic medical expense policy
a long-term care insurance shopper's guide must be provided in the format developed by which of the following?
NAIC
to comply with fair credit reporting act, when must a producer notify an applicant that a credit report may be requested?
at the time of application
occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
attending physician
all of the following are requirements of eligibility for social security disability income benefits EXCEPT
being age 65
in a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT
cash surrender values
a small business owner is the insured under a disability policy that funds a buy-sell agreement. if the owner dies or becomes disabled, the policy would provide which of the following?
cash to the owner's business partner to accomplish a buyout
an employee has just started working for a small group corporation and works 25 hours per week. the employee is
eligible to receive full health coverage
long-term care coverage may be available as any of the following options EXCEPT
endorsement to a health policy
all of the following are business uses of life insurance EXCEPT
funding against company's general financial loss
in life insurance policies, cash value increases
grow tax deferred
what are the 2 types of Flexible Spending Accounts?
health care accounts and dependent care accounts
which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
insuring clause
which of the following is NOT true regarding the life with guaranteed minimum annuity settlement option?
it does not guarantee that the entire principal will be paid out
which of the following is true regarding pure life annuity settlement option?
it provides the highest monthly benefit
if a dental plan is integrated, it is combined with what type of plan?
medical
in an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
no tax
certificates of coverage are issued to
participants in a group plan
all of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT
the employer can receive a current tax deduction for any contributions made to the plan
medicare is a health insurance program for all of the following individuals EXCEPT
those with low income and low assets
what is the purpose of a benefit schedule?
to state what and how much is covered in the plan
the president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. this plan would be funded with before tax corporate dollars, and it does not meet government approval standards. this annuity plan is
a nonqualified annuity plan
agent McButch uses his big size and implication of his "connections" to intimidate applicants into purchasing life insurance from him. which unfair trade practice is this an example of?
coersion - unfair trade practive in which an agent uses physical or mental force with the intent of inducing an applicant to purchase insurance
this arrangement specifies who will purchase a disabled partner's interest in the event he or she becomes disabled
disability buyout
in a disability policy, the probationary period refers to the time
during which illness-related disabilities are excluded from coverage
don has both a basic expense and a major medical policy. he is injured in an accident, which requires several major surgeries. this quickly exhausts Don's basic expense policy. what must Don do before his major medical policy can pick up where the basic expense policy left off?
pay a special deductible on his major medical policy
policies written on a third-party ownership basis are usually written to cover which of the following?
policyowner's minor children or business associates
in a group life policy with a death benefit of more than $50,000
premium cost above $50,000 is taxable as income to the employee
which two terms are associated directly with the way an annuity is funded?
single payment or periodic payments
which of the following statements about a suicide clause in a life insurance policy is true?
suicide is excluded for a specific period of years and covered thereafter
nonforfeiture values guarantee which of the following for the policyowner?
that the cash value will not be lost
the annual contribution limit of a Dependent Care Flexible Spending Account is set by
the IRS
an employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?
the PPO will pay reduced benefits
a 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. which of the following is true?
the amount of the distribution is reduced by the amount of a 20% withholding tax
all of the following must be presented on a small group health insurance identification card EXCEPT
the insured's address
how does a member of an HMO see a specialist?
the primary care physician refers the member
under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing?
100%
the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
what is the statute of limitation on lawsuits for health insurance policies?
5 years
which of the following is the required number of participants in a noncontributory group plan?
75%
how long is an open enrollment period for Medicare supplement policies?
90 days
what are the 2 types of Flexible Spending Accounts?
Health Care Accounts and Dependent Care Accounts
under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
if the employee enrolls within a certain time period
health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
is not covered
which of the following statements is NOT correct concerning the COBRA Act of 1985?
it requires all employers, regardless of the number or age of employees, to provide extended group health coverage
any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
rebating
what method do insurers use to protect themselves against catastrophic losses?
reinsurance
which health insurance provision describes the insured's right to cancel coverage?
renewal provision
why does Florida have state laws regulating medicare supplement insurance?
states cannot enforce and prosecute federal laws
all of the following statements about equity index annuities are correct EXCEPT
the annuitant receives a fixed amount of return
a corporation is the owner and beneficiary of the key person life policy. if the corporation collects the policy benefit, then
the benefit is received tax free
all of the following are consideration in an insurance policy EXCEPT
the cash value in the policy
who chooses a primary care physician in an HMO?
the individual member
a man is an attorney when he applies for a health policy. he decides to become a professional bungee jumper. he files a claim. what should happen?
the insurance company will pay the claim according to the benefits available if the correct premium had been paid
which of the following definitions would make it easier to qualify for total disability benefits?
the more liberal "own occupation"
an employee is insured under her employer's group life plan. if she terminates her group coverage, which of the following statements in INCORRECT?
the insured may choose to convert to term or permanent individual coverage
how are contributions to a tax-sheltered annuity treated with regards to taxation
they are not included as income for the employee, but are taxable upon distribution
before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. he was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. considering both contracts, how much will the annuitant's spouse receive in benefits?
$50,000 from the paid-up whole life policy
S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct?
100%
under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
a client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
15 days
which benefit is based on the person's Primary Insurance Amount (PIA)?
Social Security disability benefit
which of the following indicates the person upon whose life the annuity income amount is determined?
annuitant
which statement below is INCORRECT regarding the type of term insurance that best fits with the applicant's needs?
applicants who mat require a larger death benefit in the future should buy convertible term insurance
HMOs that contract with outside physicians to provide health care service to their subscribers compensate those providers on a
capitation basis
all of the following apply to short-term disability plans EXCEPT
both group and individual plans are renewable
in comparison to a policy that uses the accidental means definition, a policy that uses bodily injury definition would provide coverage that is
broader in general
After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. which of the following is NOT true?
by law, the new, individual policy must provide the same benefits as the group insurance policy
what is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?
probationary period
if an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
settlement option
all of the following would be classified as "limited insurance coverage" EXCEPT
supplement social security coverage
if a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?
supplementary major medical
your client wants to know what the tax implications are for contributions to a health savings account. you should advise her than the contributions are
tax deductible
Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?
the insurer is considered to be notified since the notification to agent equals notification to the insurer.
which of the following would NOT be eligible for coverage under key person?
the owner of a shop
core benefits are included in all medicare supplemental policies. what percentage of part B coinsurance is required?
20%
the relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last
24 months
a medicare supplement policy must have a free-look period of at least
30 days
agents in this state are required to promptly report all of the following to the department EXCEPT
change in martial status
if a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
with the policy
which of the following is NOT a factor in determining qualifications for Social Security disability benefits?
worker's occupation
an investor buys a life policy on an elderly person in order to sell it for a life settlement. this is an example of
a STOLI policy (stranger originated life insurance)
which of the following is NOT considered eligible for group like insurance?
a credit union that needs coverage only for its top 10 employees
according to the life insurance replacement regulations, which of the following would be an example of policy replacement?
a policy is reissued with a reduction in cash value
using class designation for beneficiaries means
naming beneficiaries as a group
an agent selling variable annuities must be registered with
FINRA
if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance practices has been provided, the report may contain all of the following information EXCEPT the applicant's
ancestry
which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific amount is liquidated?
annuity certain
a tax-sheltered annuity is a special tax-favored retirement plan available to
certain groups of employees only
which of the following is INCORRENT concerning a noncontributory group plan?
the employees receive individual policies
an individual long-term care policy cannot be issued until the insurer has received from the applicant a written designation of at least
1 person
in order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?
10%
on individual health insurance policies, an insurer must furnish the claimant with claim forms within how many days?
15 days
a partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a
cross-purchase plan
an insurer mails an insurance policy to a new policyowner. when the insurer relinquishes control of the policy, the policy is considered
delivered
insurers offering small employer health insurance are prohibited from
providing varying coverage to employees in different geographic locations
an IRA purchased by a small employer to cover employees is known as a
simplified employee pension plan (SEP)
the policyowner's spouse was designated as the primary beneficiary on a life policy issued 3 years ago. last year, the couple got divorced. which of the following is true regarding the beneficiary designation of the former spouse?
the designation will be void
life insurance creates an immediate estate. which of the following best explains this statement?
the face value of the policy is payable to the beneficiary upon the death of the insured
who bears all of the investment risk in a fixed annuity?
the insurance company
which of the following riders pays a beneficiary a death benefit that is double or triple the amount if the insured's death was caused by an accident as defined in the policy?
an accidental death rider
what percentage of individually-owned disability income benefits is taxable?
0%
how long is the required grace period in life insurance policies issued in this state?
30 days
which of the following entities is responsible for agent licensing and administrative supervision?
Office of Insurance Regulation
HMO contracts may only be sold by a licensed and appointed health insurance agent or a full-time salaried employee or officer of an HMO who devotes most of his or her services to
activities other than soliciting HMO contracts from the public and who receives no commissions or compensation for procuring such contracts
which of the following statements concerning Medicare Part B is correct?
it pays for physician services, diagnostic tests, and physical therapy
which statement best describes agreement as it relates to insurance contracts?
one party accepts the exact terms of the other party's offer
traditional IRA contributions are tax deductible based on which of the following?
owner's income
which of the following medicare parts provides prescription drugs benefit?
part D
all of the following could qualify as a group for the purpose of purchasing group life insurance EXCEPT
an association formed 1 year ago
the benefits from a business overhead expense insurance policy
are limited to covered expenses and are taxable to the business
which of the following is NOT a standard exclusion in life insurance policies?
disability
a husband and wife both incur expenses that are attributed to a single major medical insurance deductible. which type of deductible do they have in their policy?
family
J is receiving fixed amount benefit payments from his late wife's insurance policy. he was told that if he dies before all the benefits are paid, the remaining amount will go to the contingent beneficiary. which settlement option did J choose?
fixed amount
which of the following is an eligibility requirement for all social security disability income benefits?
have attained fully insured status
a lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. what type of annuity products are they likely to use to provide these benefits?
immediate annuity
which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?
medical information
a stock insurer is defined as an insurer
owned by its stockholders
which of the following is NOT typically excluded from life policies?
death due to plane crash for fare-paying passenger
which of the following is true regarding taxation of dividends in participating policies?
dividends are not taxable
which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
premiums are not tax deductible as a business expense (but benefits are received tax free)
which of the following is NOT mandatory under the uniform provisions law as applied to accident and health policies?
probationary period
an insured needs ongoing treatment for a diabetic condition. under PPACA, which of the following is correct?
the condition must be covered under the insured's plan
all of the following are characteristics of group health insurance plans EXCEPT
the parties that hold a group health insurance contract are the employees and the employer
which of the following determines the cash value of a variable life policy?
the performance of the policy portfolio
all of the following are general requirements of a qualified plan EXCEPT
the plan must provide an offset for social security benefits
all of the following are trye of the survivorship policy EXCEPT
the premium is based on the age of each insured
which of the following is NOT true regarding equity indexed annuities?
they earn lower interest rates than fixed annuities
what is the purpose of the impairment rider in a health insurance policy?
to exclude coverage for a specific impairment
social security was created to provide all of the following EXCEPT
unemployment income
