Missed Practice Questions

Group/voluntary long-term care policy premiums are typically deducted from the employee's income and

are less costly compared to individual long term care coverage

A ______ of benefits of a health policy transfers payments to someone other than the policyowner

asssignment

If interest payment on policy loan isn't paid on time, insurer will... (cancel policy if not paid w/in grace period, atomatically add amt of interest due, subtract amt from dividends, disallow any further loans)

automatically add

medicare part c is

available to those who are enrolled in Medicare Part A and Part B

Purpose of a coordination of benefits in group plans is

avoid duplication of benefit payments

Medicaid was designed to assist individuals who are

below a specific income limit

all students attending a large university could be covered by (blanket, franchise, jumbo group, commercial)

blanket policy

FL disclosure, applicant is provided with (cert of coverage & buyer's guide, summary statement & buyer's guide, buyer's guide and polcy summary, written comparison and policy summary)

buyer's and policy

Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible?

carryover provision

Reimburses insureds for covered medical expenses (HMO, PPO, Commercial insurance, service providers)

commercial insurance)

The premiums paid by an employer for his employee's group life insurance are usually considered to be

deductible to the business

if initial premium not paid with application, policy is effective when (all medical/personal info evaluated, insurer receives initial premium, policy is delivered & initial premium collected, application was reviewed by underwriters)

delivered & collected

Characteristic of a PPO is...

discounted fees for the patient

which of the following is not included in the policy face

exclusion

investigative consumer reports done according to (Fair Credit Act, MIB, Part III, buyer's guide)

fair credit

handling client funds in an honest and ethical manner is (fiduciary responsibility, reasonable response, ethical behavior, legal competence)

fiduciary

What is considered a valid reason for small businesses to insure the lives of its major shareholders?

fund a buy-sell agreement

What is insurance guarantee fund assoc (entity w underwriting large policy, funded by admitted insurance companies, funded by state govt, admin by fed govt_

funded by iunsurance companies

A 66 yr old is covered undera g ropo health plan whuile mployef with a busiuness that has 40 employees. if she injures herself while walking in the park, whast coverage would be considered primary?

group health plan

under time of poayment claims provision, insurer must pay benefits .... (when)

immediately after a loss

medicare part b does not cover

inpatient hospital services

In a Key Employee Life Insurance Policy, third-party owner cannot be the

insured

the _________ clause indentifies which losses resulting from an accident or sickness are iunsured by the policy

insuring

which health policy clause specifies amount of benefits to be paid?

insuring clausei

What is true about third-party ownership of a life insurance policy?

it's used in both business and estate planning

Life insurnce that provides limited time coverage for lowest possible premium? (limited pay, graded, level term, endowment)

level term

What isn't used in determining life insurance eligibility/coverage?

local unemployment rate

Nusring home benefits must be provided for at least 12 consec months in which of the folowing types of policies

long term care

disability income benefits must be paid no less frequently than

monthly

Who isn't approved to sell insurance in FL? (non-contrib GA, PPGA, independent agency sys, career agency sys)

non-contrib GA

disability income policy that only the policyowner can terminate and which the rates will never go up is considered to be

noncancellable

min # of insured required for FL group life (10,25, 50, noine)

none

Which of the following best describes a short-term medical expense policy? (conditionally renewable, noncancellable, guaranteed renewable, nonrenewal)

nonrenewable

Whsat does medicare parts a & b cover

part a hospital, part b doctor;s services

Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE?

partners hold $500,000 policy on the other's life

policy provision that entitles insurer to establish conditions the insured must meet while a claim is pending is

payment of claims

which provision guarantees premiums will nbe waived if juvenile life policyowner is disabled? (family maintence, payor, assignment, automatic premium loan)

payor

What isn't a reason to buy key person life insurance?

pension deficiency

what long term care insurance statement is true?

pre x conditions must be covered after coversage has been inforce for six moinths

an insured must notify an insurer of a medical claim within ___ days after an accident (10, 20, 30, 40)

20

insurers may request a hearing within ____ days if policy is rejected

20

64 yrs and up has ___ add't days for grace period (7, 10, 21, 30)

21

Cobra for disability (11, 18, 29, 36)

29

how long is the typical free look period for long term care inusurance policies? (20, 30, 40, or 50 days)

30 days

Free look period for medicare or long-term product is (7, 10, 14, 30) days

30`

cobra coverage is extended for how many months in case of death? (18, 29, 36, 60)

36

how long for insurance company to notify applicant of denial due to lack of payment before policy coverage resumes? (10, 30, 45, 60)

45

Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.

6

Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is funded with individual life insurance. How many total life policies are needed for this agreement?

6

What is consiudered to be a characteristic of a conditionally renewable heaslth insurance policy

premiums may increase at time of renewal

WSHsat is hte purpoose of the time of pyamnet of claims provision?

prevent insurance company from making delayed claim payments

Which term describes analyzing a case before admission to determine necessary treatment? (prospective, concurrent, retrospective, utiization)

propsective review

The guarantee of insurability option provides a long-term care policyowner the ability to

purchase additional coverate at a later date

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

reimbursement/.expense incurred

Open Panel versus Closed Panel

HMO calls for salaried employees of physician's group to work out of an HMO facility (closed); HMO allows physicians to meet with patients in individual offices

K is an insured under a life insurance policy owned by a third party. Which of these statements is true?

K has no ownership rights

which org has code of ethics in FL law? (Finra, NAIC, NAIFA, american college life insurnace)

NAIFA

which office reports to fnancial services commission and provides regulatory oversight for FL financial services industry (OIR, DFS, OFR, SEC_

OFR

Which statement is not true regarding Key Employee Life?

the beneficiary is named by the key employee

which parts of a health insurance policy guaranteed to be true?

warranties

Pre-x conditions not covered for

1 year

Reinstated policy that was lapsed due to non-payment has a waiting period of (10, 20, 15, 90) days for a sickness claim to be covered?

10

free look life (7, 10, 14, 30)

10

Max # of employees earning $5000+ for a SIMPLE plan? )25, 50, 100, 250)

100

Cobra allows add't ___% charge for admin costs (2, 50, $200, $500)

2

proof of loss must be submitted within (20, 15, 90, 180)

90

C is a key employee. if a key employee policy is purchased on her life, what is true?

ABC is policyowner/beneficiary, C is insured

rebating in fl ok if (amt rebated below % of premium, trasaction IRS reported, insured gives consent, offers rebates to all in same actuarial class)

actuarial class

A "reimbursement policy" pays what amount of covered Long-Term Care expenses?

actuasl covered expenses up to daily max

which of the following types of care is not typically coverefd in as long-term casre policy?

acupuncture

if age is understated on an ADD policyholder after they die,

adjust death benefit to what premiums paid would have been

what action should a producer take when submitting an application to an insurer?

advise insurer of any relevant information not listed in the application

Under a Long Term Care policy, which benefit would be typically excluded or limited?

alcohol rehabilitation

Consideration clause is? (buyer's guide, summasry of coverage, beneficiaries, schedule and amt of premiums)

schedule and amoutn of opremiums

Which type of plan allows an employer to give an employee money for buying a life insurance policy and also permits the employee to select a beneficiary?

split dollar

for an insurance company to conduct business, needs to be approved by who? (NAIC, state, attorney general, homeland security)

state