missed questions
An individual is insured under his employer's group disability income policy. The insured suffers an accident, while on vacation that left him, unable to work for four months. If the disability income policy pays the benefit, which of the following would be true?
Benefits that are attributed to employer contributions are fully taxable the employer is income
what is the contract provision that allows the insurer to nonrenew health coverage if certain events occur?
Conditionally renewable
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming teacher dividends in a life insurance proposal
Which of the following is a key distinction between variable whole life and variable universal life policies?
Variable whole life has a guaranteed death benefit
The benefits for individual disability plans are based on
a flat amount
The insured's health policy only pays for medical costs related to accidents. which type of policy does the insured have?
accident only
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
an unfair trade practice
what best describes the MIB
anonprofit organization that maintains underwriting information on applicants for life and health insurance
in order for a foreign insurer to do business in another state, they must apply for and obtain
certificate of authority
Producers are responsible to collect and disperse premiums and return premiums or other funds. Which insurance term is associated with this?
fiduciary capacity
Who appoints the commissioner?
governor
A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?
guaranteed
what is NOT correct about taxation if disability income benefits
if paid by the individual, the premiums are tax deductible
All advertisements are the responsibility of the
insurer
which entity has the authority to make changes to an insurance policy?
insurer's executive officer
what is NOT correct about Medicare Part B?
it is fully funded by social security taxes
which is true regarding a term health policy?
it is nonrenewable
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
it is reduced to the amount of what the cash value would buy as a single premium
which rider added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?
long-term care
What is the other term for the cash payment settlement option?
lump sum
And 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 ensure did the insured purchase the policy?
mutual insurance
Attempting to determine how much insurance family would require based upon their financial objectives is known as
needs approach
An applicant wants to buy a policy that has a cash value element. What time should she buy?
permanent
if someone wants to buy a life insurance policy that will provide lifetime protection against premature death, what type of insurance policy should they buy?
permanent
which is NOT a supplemental benefit under an HMO plan?
preventive services
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid-up
I'd an insurance policy has an irrevocable beneficiary designation, then...
the beneficiary can only be changed with written permission of the beneficiary
The policy owner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
the policy contains sufficient cash value to cover the cost of insurance
what is true concerning a buy-sell agreement?
they are normally funded with life a insurance policy
what is the best reason to purchase life insurance rather than annuities?
to create an estate
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
universal life
Which type of insurance policy allows the policy owner to pay more or less than the planned premium?
universal life
which policy(s) would have an IRS required corridors or gap between the cash value and the death benefit
universal life option A
what is the civil penalty for violating a cease and desist order of the commissioner?
$10,000
the most the insurance guaranty association will pay for net cash surrender values is
$100,000
What is the civil Pennelly for violating a cease and desist order of the commissioner?
$5000
What is the civil penalty for the first violation of the Pennsylvania insurance fraud prevention act?
$5000
To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
Employers can reduce health plan, cost by coupling a health reimbursement account (HRA)with
A high deductible health plan
The death protection component of universal life insurance is always
Annually renewable term
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
This policy component decreases in decreasing term insurance
Face amount
The guarantee of insurability option provides a long-term care policyowner the ability to
Increase benefit levels without providing proof of insurability
what is not a difference between individual and group health insurance?
Individual insurance does not require medical exams, while group insurance does require medical exams
what is NOT true regarding a certificate of authority?
It is issued to group insurance participants.
what is true concerning the accidental death report?
It will pay double or triple the face amount
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
Which of the following is the most common time for errors and omissions to occur on the part of an insurer?
Policy delivery
A Medicare SELECT policy does all of the following EXCEPT
Prohibit payment for regular covered services provided by non-Netwerk providers
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by Class. (insurer may increase premiums on a class basis only, not on an individual policy)
If an insurer becomes insolvent, which of the following would pay benefits to policyholders?
The Guaranty Association
what is NOT covered under plan A in Medigap insurance?
The Medicare Part A deductible
What happens if a non-member physician is utilized under a 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
what is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
How does a member of an HMO see a specialist?
The primary care physician refers the member
what best defines target premium in a universal life policy?
The recommended amount to keep the policy in force throughout its lifetime
example of fiduciary duty
The trust clients place in the producer in regard to handling premium
what is NOT correct about Medicare supplement insurance policies?
They cover the cost of extended nursing home care
What is the purpose of coinsurance provision?
To prevent over utilization of plan benefits
what is the purpose of cobra?
To provide continuation of coverage for terminated employees