quiz questions

the sole proprietor of a business makes a total salary of $50,000 a year this year his medical expenses have reached a total of 75,000 what amount made the sole proprietor deduct in regards to his medical expenses

$50,000 the proprietors of a business May deduct the cost of a medical expense plan because they are considered to be self-employed individuals instead of employees the deduction cannot legally exceed the taxpayers earned income for the year even if the cost of the medical expense plan exceeds the amount in this scenario $50,000

an insured pays a monthly premium of $100 for her health insurance what would be the duration of the grace period under her policy

10 days the grace period is 7 days if the premium is paid weekly 10 days if paid monthly 31 days for all other modes

well an employee is hospitalized how much of the prepaid health care premium will the employee pay

100%, if an employee is hospitalized or prevented from working by sickness the employer must allow the employee to pay a portion of the premium normally paid by the employer for the duration of the hospitalization or sickness

if a person is disabled at age 27 and meet social security definition of total disability how many work credits must he she have earned to receive benefits

12 credits persons disabled between ages 24 and 31 can qualify for benefits if they have credit for having worked half of the time between age 21 and the start of disability for example if Joe becomes disabled at age 27 he would need 12 credits or 3 years worth out of the prior 6 years between ages 21 and 27

when the commissioner suspects that anyone has engaged in deceptive Acts the commissioner will give that person a statement of charges and notice of hearing to be held within

15 days when the commissioner has reason to believe that anyone has engaged in unfair methods of competition or unfair or deceptive acts the commissioner will issue and serve on that person a statement of charges and notice of hearing to be held in at least 15 days or after that date

in the event of the death or disablement of a licensee the commissioner May issue a temporary license to another person to continue the business of insurance a temporary license is issued for a period not to exceed

180 days a temporary license cannot be effective for more than 180 days and the commissioner can refuse to relicense a person who has previously been licensed the commissioner can renew the license for fewer than 12 months

which of the following must the patient pay under Medicare part b

20% of covered charges above the deductible as established by Medicare the patient must pay 20% of covered charges above the deductible

to qualify for a license renewal in Hawaii a licensee must complete continuing education requirements of

24 hours for one line of authority continuing education requirements are 24 hours per 2 years per line of authority

to qualify for a licensed renewal in Hawaii a licensee must complete continual education requirements of

24 hours for one line of authority continuing education requirements are 24 hours per 2 years per line of authority

if an insurance terminates the appointment employment contract or other insurance business relationships with the producer he / she must notify the commissioner within

30 days Insurance have 30 days to notify the commissioner

after receiving an application for a hearing the commissioner must hold a hearing within

30 days the commissioner must hold the hearing within 30 days after receipt of application unless the hearing is postponed by mutual consent

how many days does the producer have to remit all of the premiums to the insurer

30 days the license fee must admit ain the premiums ( minus commissions ) to be insurer within 30 days

what is the maximum age for qualifying for a catastrophic plan

30 young adults under age 30 and individuals who cannot obtain affordable coverage - have hardship exemption - may be able to purchase individual catastrophic plans that cover essential benefits

employers must provide prepaid health coverage to a regular employee who has been employed for

4 weeks employers must provide prepaid health coverage to any regular employee who has been employed for four consecutive weeks

once the person meets the stringent requirements for disability benefits under social security how long is the waiting period before any benefits are paid

5 months under social security disability benefits a person will have to wait 5 months before any benefit will be paid actual benefit payments start with the 6 month of disability

Insurance transaction records must be maintained for at least

5 years insures must maintain records of all transactions for at least 5 years

how long is an insurance company allowed to defer policy loan requests

6 months insurers writing variable life insurance policies May differ loan requests for up to 6 months this excludes loan request used to pay policy premiums

according to the ppaca rules what percentage of healthcare costs would be covered under the bronze plan

60% under the bronze plan the health plan is expected to cover 60% of the cost of the average population and the participants would cover the remaining 40%

unreimbursed medical expenses paid for the insured maybe claimed as deductions if the expenses exceed what percentage of the adjusted gross income

7.5%, the law permits deductions for unreimbursed expenses in excess of 7.5% of the adjusted gross income ( AGI )

life insurance policies issued in this state must provide for maximum policy loan interest rate of not more than

8% per annum life insurance policies issued must provide for maximum policy loan interest of not more than 8% per annum

in the event of a divorce which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months

COBRA dependence of employees are eligible to receive group health insurance under the employees plan if the employee and the dependent become legally separated or divorced or if the employee dies the dependent will be eligible for Cobra benefits for up to 36 months

what is the name of the insured who enters into a viatical settlement

Viator. Viator means the owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract.

ensure XYZ is planning to start issuing variable contracts in this state XYZ is a subsidiary of a larger insurance company authorized to transact variable insurance which of the following statements is true

XYZ is considered authorized if a company that issues variable contracts are a subsidiary of another insurance company already authorized to do variable businesses they are also considered authorized

according to the entire contract provision a policy must contain

a copy of the original application for insurance an insurance contract must contain a copy of the original application

a life insurance producer may share commissions with

a licensed life insurance producer for the sale of a life insurance policy any insurance company or an insurance producer may only pay a commission service fee or brokerage or other valuable consideration to a person for selling soliciting or negotiating Insurance in the state if that person is properly licensed this means both parties must have a license in the line of authority as the type of insurance transaction

which is not a characteristic of group health insurance group coverage may be converted to individual coverage if the group contract is ended the actual policy is called the master contract policy is issued to each insured individual dependence of insured can be covered under a group health plan

a policy is issued to each individual the actual policy called the master contract is issued to the group sponsor only the individuals covered under the policy are issued certificates of insurance as proof that they are covered under the master contract dependents are covered under group plans if the group contract is terminated insured must convert to individual policies without having to provide proof of insurability

if a company has a simplified employee pension plan what type of plan is it

a qualified plan for a small business a simplified employee pension SCP is a type of qualified plan suited for the small employer or for self-employed a s e p is an employer sponsored ira with an expanded contribution rate of up to 25% of the compensation or a specified maximum contribution amount

all of the following are correct about the required provisions of a health insurance policy except the entire contract clause means the signed application policy endorsements and attachments constitute the entire contract the reinstated policy provides immediate coverage for an illness proof of lost forms must be sent to the insured within 15 days of notice of claim a grace period of 31 days is found in an annual pay policy

a reinstated policy provides immediate coverage for an illness accidental injury is covered immediately but to protect the insurer against adverse selection losses resulting from sickness are covered only if the sickness occurs at least 10 days after the reinstatement date

the free look provision allows for which of the following a right to return the policy for a full premium refund immediate coverage when the application is submitted a guarantee that the policy will not lapse if the premium is overdue it guarantee that the policy will be issued

a right to return the policy for a full premium refund the free look. is a mandatory provision found in health insurance policies that allows for the applicant to examine the policy and if dissatisfied for any reason return the policy for a full refund

which of the following would be required to be licensed as an insurance producer

a salaried employee who advertises and solicits insurance a person does not require an insurance producer license if he or she only advertises without intent to solicit Insurance however once there is solicitation a license is required

what is a material misrepresentation

a statement by the applicant that upon delivery would affect the underwriting decision of the insurance company a material misrepresentation is a statement that if discovered would alter the underwriting decision of the insurance company

insurance policies are not drawn up through negotiations and an insured has little to say about its Provisions what contract characteristics does this describe

adhesion a contract of adhesion is prepared by only the insurer the insurance only option is to accept or reject the policy as it is written

when the insured purchased his health policy he was a window washer he has since changed occupations and now manages a library if the insurer is notified of the insurance changed of occupation the insurer should

adjust the benefit in accordance with the decreased risk change of occupation provision allows the insurer to adjust benefits if the insured changes occupations

which of the following long-term care benefits would provide coverage for care for functionally impaired adults in a less than 24-hour basis

adult Day Care adult Day Care is designed for those who require assistance with various ADLs on a daily basis but not around the clock custodial care is usually the only service provided by adult Day Care facilities

a 63 year old man is planning to be employed until age 68 when will he be eligible for Medicare

age 65 regardless of his employment status the individual will still be eligible for Medicare at age 65 but if he is still insured under his employer's group Health plan the group plan will be his primary coverage and Medicare will be secondary coverage

which of the following would not be a violation of State insurance regulations

agency uses her license to write only business other than controlled the purpose of a license is to primarily write business other than controlled business

well a claim is pending an insurance company may require

an independent examination as often as reasonably required while claim is pending an insurance company may require an independent exam is often as reasonably required

when an annuity is written whose life expectancy is taken into account

annuitant the annuitant receives payments from an annuity and is the person whose life expectancy is considered when writing the contract the new intent and annuity owner are often the same person but do not have to be

which type of retirement account does not require the owner to start taking distributions at age 72

answer Roth IRA Roth contributions can continue regardless of the account owners age in a contrast with traditional IRA distributions do not have to begin at age 72

all of the following are examples of third-party ownership of a life insurance policy except

answer an insured borrows money from the bank and makes a collateral assignment of part of the death benefit to secure the loan a collateral assignment is the transfer of some or all of the death benefit of the policy to a creditor as security for a loan but does not give the creditor the right of ownership in the event of the insurance death the creditor would only be able to recover that portion of the loans proceeds equal to the creditors remaining interest in the loan

what does liquidity refer to in a life insurance policy

answer cash values can be borrowed at any time liquidity and life insurance refers to availability of cash to the insured through cash values

all of the following statements are true regarding tax qualified annuities except

answer employer contributions are not tax deductible tax qualified and annuities must be approved by the IRS and allow for tax deductible employer contributions all withdrawals are taxed and earnings grow tax deferred

which of the following is true in a qualified plan

answer it has a tax benefit for both employer and employee a qualified plan is approved by the IRS which then gives both the employer and employee benefits in deductibility of contributions and tax deferral of growth

which of the following is not true regarding a non-qualified retirement plan

answer it needs IRS approval non-qualified retirement plans do not meet the IRS requirements for favorable tax treatment of deductions and contributions therefore they do not need to be approved by the IRS

what is the official name for the social security program

answer old age survivors disability insurance social security is formally called old age survivors disability insurance - OASDI

a producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely this is a personal use of life insurance known as

answer survivor protection life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured step this is known as survivor protection

a corporation is the owner and beneficiary of the key person life policy if the corporation collects the policy benefit then

answer the benefit is received tax-free should a key person die the benefit is treated as a reimbursement to the business for the loss of services from that key person

partners in a business enter into a buy-sell agreement to purchase life insurance which states that should one of them die prematurely the other would be financially able to buy the interest of the deceased partner what type of insurance policy would be used to fund this agreement

any form of life insurance any form of life insurance may be used to fund a buy-sell agreement

which statement accurately describes the change of beneficiary provision

any policy that has a death benefit must also have a change of beneficiary provision any policy that has a death benefit must also have a change of beneficiary provision this allows the policy owner to change beneficiaries without the original beneficiaries consent unless that person was designated as an irrevocable beneficiary

an agent is ready to deliver a policy to an applicant but has not yet received payment upon delivery the agent collects applicants premium check enters any questions the applicant may have and then leaves what did he forget to do

ask her to sign a statement of good health if the premium is not collected until the policy is delivered the agent must receive a statement of good health which acknowledges that the insurance health status has not changed since the policy was approved

SIMPLE plans require all of the following except employees must receive a minimum of $5,000 in annual compensation at least 1,000 employees no other qualified plan can be used no more than 100 employees

at least 1,000 employees SIMPLE plan is available to a small business that employ not more than 100 employees receiving at least $5,000 in compensation from the employer during the previous year

which of the following is incorrect regarding a $100,000 20 year level term Policy hey the policy premiums will remain level for be if the insured dies before the policy expired the beneficiary will receive $100,000 see the policy will expire at the end of the 20-year d at the end of the 20 years the policies cash value will equal $100,000

at the end of 20 years the policies cash value will equal $100,000 term policies do not develop cash values all other statements are true

the premium charged for exercising the guaranteed insurability rider is based upon the insurance

attained age the premium charge for the increase will be based upon the attained age of the insured

occasionally visits by which of the following medical professionals will not be covered under ltc's Home Health Care

attending physician Home Health Care is provided in one home and could include occasional visits to the person's home by registered nurses licensed practical nurses licensed vocational nurses or community-based organizations like hospice Home Health Care might include physical therapy and some custodial care such as meal preparations

which document describes an insurance medical history including diagnosis and treatments

attending physician statement and attending physician statement ( APS ) is the best way for an underwriter to evaluate and ensure its medical history the report includes past diagnoses treatment length of covering time and prognoses

which of the following is a feature of a variable annuity

benefit payment amounts are not guaranteed under a variable annuity the issuing insurance company does not guarantee a minimum rate of interest or the benefit payment amounts the new intense payment into the annuity are invested into the insurers separate account agents selling the variable annuities are required to have a securites license in addition to their life agents license

all of the following are true of the key person disability income except

benefits are considered taxable income to the business key person disability benefits are not considered taxable income to the business

all of the following statements are correct regarding credit life insurance except

benefits are paid to the borrowers beneficiary and credit life insurance the creditor is the beneficiary for the amount of benefit equal to the outstanding balance of the loan

which of the following statements regarding business overhead expense policies is not true any benefits received are taxable to the business least equipment expenses are covered by the plan benefits are usually limited to 6 months premiums paid for Boer tax deductible

benefits are usually limited to 6 months business overhead expense ( b o e ) insurance is sold to small business owners for the purpose of reimbursing the policyholder for business overhead expenses during a period of total disability premiums are tax deductible for business but any benefits received are taxable as income overhead expenses including equipment and employee salaries are covered by the plan salaries and profits of the employer are not protected

an individual is insured under his employers group disability income policy the insured suffered an accident while on vacation that left him unable to work for months if the disability income policy pays the benefit which of the following would be true

benefits that are attributable to employer contributions are fully taxable to the employee as income group disability income premium payments are not considered tax deductible by the business as ordinary business expense in a plan funded entirely by the employee income benefits are included by the employees gross income and taxed as ordinary income

and Life Insurance producers are permitted to share or split commissions providing

both are probably licensed for the line of insurance for a producer to receive commissions from a sale of insurance if they must be properly licensed in that line of insurance

all of the following apply to short-term disability plans except group plans can provide benefit periods of up to 52 weeks individual plans can provide benefit. of up to 2 years it benefit period of 26 weeks is most common for group plans both group and individual plans are renewable

both group and individual plans are renewable short-term disability plans are not renewable

all of the following are personal uses of life insurance except

buy-sell agreement personal uses of life insurance include survivor protection estate creation and conservation cash accumulation and liquidity a buy-sell agreement is for business uses of Life Insurance

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 if the owner dies or becomes disabled the disability Policy under the buy-sell agreement would provide enough cash to accomplish a buyout of the company

which of the following components must a life insurance policy have to allow policy loans

cash value the policy loan option is found only in policies that contain cash value

to legally transact Insurance in the state the insurance must obtain which of the following

certificate of authority a certificate of authority is required in order to transact insurance

what is the main difference between coinsurance and copay

co-payment is a set dollar amount with both co-payment and coinsurance Provisions the insured shares a part of the cost for services with the insurer unlike coinsurance a co-payment has a set dollar amount that the insured will pay each time certain medical services are used

when an insured makes truthful statements on the application for insurance and pays the required premium it is known as which of the following

consideration consideration is something of value that each party gives to the other the consideration on the part of the insured is the payment of the premium and the representations made on the application

contracts that are prepared by one party and submitted to the other party take on a take it or leave it basis are classified as

contracts of adhesion insurance policies are written by the insurance and submitted to the insurance on a ticket or leave it basis the insurance does not have any input into the contract but simply adheres to the contract

which of the following is not covered by Medicare

cosmetic surgery cosmetic surgery is excluded from coverage by Medicare

a key person insurance policy can pay for which of the following

costs of training a replacement a key person insurance policy will pay for cost of running the business and replacing the employee

what type of insurance sold to a debtor and designed to pay the amount due on a loan if the debt or dies before the loan is repaid is called

credit life credit life is most often sold by lenders and is term insurance written with a face amount and term that is matched to the amount and length of the loan period Credit Insurance is the type of special coverage written to ensure the life of the debtor and pay off the balance of the loan in the event of the death of the debtor

which of the following is not allowed in a credit life insurance

creditor requiring that a debtor buys life insurance from a certain insurer in credit life insurance a creditor may require that a debtor have life insurance but they cannot require the debtor to purchase insurance from a specific insurer

if an insured changes his payment plan from monthly to annually what happens to the total premium

decreases because the insurer would have the entire premium to invest for a full year they would reduce the premium amount

group disability income premiums paid by the employer are

deductible by the employer as an ordinary business expense group disability income premiums paid by the employer is considered a tax deductible by the business as an ordinary business expense the premiums payments are neither taxable nor tax deductible to the employee

which of the following will not be considered unfair discrimination by insurers

discriminating and benefits and coverage based on the insurance habits and lifestyle discriminating between individuals of the same class with equal life expectancies or by reason of race nationality or ethnic group would be considered unfair discrimination insurers are also not allowed to cancel individual coverage due to a change of marital status discriminating and benefits is based on the insurance habits and lifestyle such as smoking or dangerous hobbies this is acceptable

when twin brothers applied for life insurance from company a the company found that while neither of them smoked and both of them had a very similar lifestyle one of the twins was in a much stronger financial position than the other because of this the company charged him a higher rate for his insurance this practice is considered

discrimination permitting individuals of the same class to be charged a different rate for the same insurance is an unfair trade practice of discrimination

which of the following best describes an insurance company that has been formed under the laws of the state

domestic a company is domestic when doing business within the state in which it is

which of the following is not covered by Health maintenance organizations ( hmos )

elective services hmos emphasize preventative health care as a method of reducing medical expenses by early detection of health problems before they may require more costly treatment

all of the following statements are true regarding tax qualified annuities except annuity earnings are tax deferred they must be approved by the IRS withdrawals are taxed employer contributions are not tax deductible

employer contributions are not tax deductible tax qualified annuities must be approved by the IRS and allow for tax deductible employer contributions all withdrawals are taxed and earnings grow tax deferred

the provision that states that both the printed contract and a copy of the application form the contract between the policy owner and the insurer is called

entire contract the policy together with the attached application constitute the entire contract this provision limits the use of evidence other than the contract and the attached application in the test of the contracts validity this is a mandatory provision in life insurance

when an insurance agency published an advertising brochure it emphasized the company's financial stability and sound business practices in reality it's financial Health is terrible and the company will soon have to file bankruptcy which of the following terms best describes the advertisement

false financial statement

which of the following criminal activities would be sufficient violation to warrant rejection revocation or suspension of Insurance producers license

forgery upon conviction of a felony a producer's license will be revoked by the commissioner

all of the following are business uses of life insurance except funding business continuation agreements funding against companies general financial loss compensating executives funding against financial loss caused by the death of a key employee

funding against companies general financial loss both life and health insurance can be used for a variety of purposes in a business setting including the funding of business continuation agreements compensating executives and protecting the firm against financial loss resulting from the death or disability of key employees

all of the following are for business uses of life insurance except

funding against companies general financial loss both life and health insurance can be used for a variety of purposes in a business setting including the funding of business continuation agreements compensating executives and protecting the firm against financial loss resulting from the death or disability of key employees

life insurance death proceeds are

generally not taxed as income Life Insurance death benefits are generally not taxed as income

the death benefit under the universal life option b

gradually increases each year by the amount the cash value increases under option b the death benefit includes the annual increasing cash value so that the death benefit gradually increases each year by the amount the cash value increases

as it pertains to a group of health insurance COBRA stipulates that

group coverage must be extended for terminated employees up to a certain period of time at the former employees expense COBRA requires employers with 20 or more employees to continue group medical insurance for terminated workers and dependents for up to 18 months to 36 months the employee can be required to pay up to 102% of the coverages premium

at the time insured purchased her life insurance policy she added a rider that will allow her to purchase additional assurance in the future without having to prove insurability this rider is called

guaranteed insurability guaranteed insurability is a writer that is included at the time of application or can be added at a later date which allows the insured to increase the amount of insurance without providing evidence of insurability

to be eligible for temporary disability insurance benefits in Hawaii a person must meet all of the following qualifications except

has filed a disability claim within 6 months the person must file a disability claim within 90 days after the disability begins

an insured becomes disabled at age 22 and can no longer work she meets the definition of total disability under social security what other requirement must be insured have met to receive social security disability benefits

have accumulated six work credits in the past 3 years qualify for disability benefits under social security the disabled person must have earned a certain amount of credits a maximum of four work credits can be earned each year the amount of credits required varies by age persons disabled before the age of 24 can qualify for social security benefits with only six work credits earned in a 3-year period to the start of disability

fixed annuities provide all of the following except a- minimum guaranteed rate of interest b- future income payments c - hedge against inflation d- equal monthly payments for life

hedge against inflation fixed annuities invest premium payments into general account a safe conservative investment portfolio they also provide a specified dollar amount for each annuity payment regardless of the purchasing power of the money variable annuities premiums are invested in securities hopefully maintaining a constant purchasing power and therefore providing protection against inflation

health savings accounts ( hsa's ) are designed to

help individuals save for qualified Health expenses hsas help individuals save for qualified out of pocket healthcare expenses such as the deductible expense from a high deductible Health plan

under what conditions mean individual health policy provide benefits for treating infertility

if a policy offers pregnancy related benefits all individual and group health insurance policies which provide pregnancy related benefits must also include benefits for treating infertility this includes one-time only benefit for outpatient expenses arising from inferto fertilization procedures performed on the insured or insured dependent spouse

an insurer publishes intimidating brochures that portray the insurers competition as financially and professionally unstable which of the following best describes this act

illegal under any circumstances when a company criticizes the financial situation of another company with the intention of injuring that company it has committed an illegal trade practice called defamation

which of the following diseases is characterized by a congenital abnormality that affects the body's ability to process certain nutrients

inborn error of metabolism inborn error of metabolism is a disease characterized by A congenital abnormality that affects the body's ability to process certain nutrients

annually renewable term Policy provide a level death benefit for a premium that

increases annually - annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured

what type of insurance would be used for a return of premium rider

increasing term the return of premium Rider is achieved by using increasing term insurance when added to a whole life policy it provides that at death prior to a given age not only is the original face amount payable but also all premiums previously paid are payable to the beneficiary

which of the following statements pertaining to Medicare part A is correct

individuals who have ALS automatically qualify for Medicare part A regardless of age persons underage 65 but entitled to social security disability benefits for 24 months may qualify for Medicare in additions to citizens or legal residents under age 65 or over who qualify for social security or rewrote retirement benefits individuals with ESRD or ALS are automatically eligible for coverage under Medicare part A

the medical information (MIB) was created to protect

information companies from adverse selection by high-risk persons the MIB makes information available to underwriters to assist them in the underwriting process it is a non-profit trade organization which receives adverse medical information from insurance companies that maintains confidential medical impairment information an individuals

which of the following conditions would not be covered under a disability

injury caused by a forklift accident at work disability means total inability of an employee to perform the duties of his employment caused by a sickness pregnancy termination or accident other than work injury and injury caused at work would not be covered under disability Policy

all of the following are nonforfeiture options except reduced paid up interest only cash surrender extended term

interest only 9 forfeiture values include cash surrender extended term and reduced paid up interest only is a settlement option

a guaranteed renewable disability insurance policy

is renewable at the insurance option to specified age guaranteed renewable remains that the insured has a right to keep the policy until a specific age however while the insurer cannot increase rates on an individual basis the insurer can increase rates for all insured by class

which of the following is true about the 10-day free look period in a life insurance policy it begins when the policy is delivered it begins when the application is signed it applies only to term life insurance policies it is optional on all life insurance policies

it begins when the policy is delivered the 10-day free look provision is a mandatory provision that allows the insured to examine a policy and if dissatisfied for any reason return the policy for full refund of any premiums paid

a hospital idemnity policy will pay

it benefit for each day the insured is in the hospital hospital confinement idemnity policies pay specific amounts that depend on the amount of time the insured is confined to the hospital

in which of the following situations is it legal to limit coverage based on marital status

it is never legal to limit coverage based on marital status availability of insurance benefits to or coverage may not be denied based on sex or marital status marital status may be considered for the purpose of defining persons eligibility for dependent benefits

which of the following is incorrect concerning Medicaid

it is solely a federally administered program Medicaid is assistance program for persons with insufficient income and or resources to pay for healthcare States administer the program that is financed by federal and state funds

which statement is not true regarding a straight life policy a - it has the lowest annual premium of all three types of whole Life policies b - it's premium steadily decreases over time in response to its growing cash value c - the face value of the policy is paid to the insured at age 100 d - it usually develops cash value by the end of the third policy year ​

it's premium settling decreases over time in response to its growing cash value straight Life policies charging level annual premium throughout the insurance lifetime and provide a level guaranteed death benefit

which of the following is an IRS qualified retirement program for the

keogh plan the keogh or HR-10 plan allows self-employed individuals to establish tax favored retirement plans for themselves and their eligible employees

under workers compensation which of the following benefits are not included

legal benefits under workers compensation medical and rehabilitation benefits income benefits and death benefits are included

your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at age 65 what would be the right policy for this client

limited pay whole life premium payments will cease at her age 65 but coverage will continue to her death or age 100

the premium of the survivorship life policy compared to that of a joint life policy would be

lower survivorship of life is much the same as a joint life in that it insures two or more lives for a premium that is based on a joint age the major difference is that survivorship life pays on the last death rather than upon the first death since the death benefit is not paid until the last death The joint life expectancy in a sense is extended resulting in a lower premium than that which is typically charged for a joint life

what is the other term for the cash payment settlement option

lump sum upon the death of the insured the contract is designed to pay the proceeds in cash called a lump sum

which of the following is not considered a misrepresentation as it pertains to unfair trade practices

making comparisons between different policies making accurate comparisons of policies is not illegal

a woman's health insurance policy dictates which doctors she is allowed to see her health providers share and assumed risk for their patients and encourage preventative care which best describes the health system that the woman is using

managed Care there are five distinguishing features of managed Care control the access to providers comprehensive case management risk sharing preventative care in high quality Care

a woman's health insurance policy dictates which doctor she is allowed to see her health providers share and assumed risk for their patients and encourage preventative care which best describes the health system that the woman is using

managed Care there are five distinguishing features of managed Care controlled access to providers comprehensive case management risk sharing preventative care and high quality Care

if a patient is fed nutrients either normally or through a device inserted into the person what are these nutrients called

medical food medical foods are formulated to be consumed or administered internally through the colon under the supervision of a physician and are intended for the specific dietary management of a disease or a condition

under the affordable Care act which classification applies to Health plans based on the amount of covered cost

metal level classification plans other than self-insured plans will be classified into four levels determined by how much of one's expected healthcare costs are covered the four plans are bronze silver gold and platinum this is called metal level classification

and insured is involved in a car accident in addition to general less serious injuries he permanently loses the use of his leg and is rendered completely blind the blindness improves a month later to what extent will he receive presumptive disability benefits

no benefits presumptive disability plans offer full benefits for specified conditions these policies typically require the loss of use of at least two limbs and total and permanent blindness or loss of speech or hearing benefits are paid even if the insurance is able to work because the insurance blindness was only temporary and loss of use is only one leg he does not qualify for presumptive disability benefits

death benefits payable to a beneficiary under a life insurance policy are generally

not subject to income taxation by the federal government when premiums are paid with after tax dollar the death benefit is generally not subject to Federal income taxation

premium payments for personally owned disability income policies are

not tax deductible premiums for personally owned individual disability income policies are not tax deductible

which of the following documents must be provided to the policy owner or applicant during policy replacement

notice regarding replacement during policy replacement the replacing producer must present to the applicant a notice regarding replacement that is signed by both the applicant and the producer

in case of replacement the replacing insurer must

notify the existing insurer whose insurance is being replaced within five business days of receipt and complete the application maintain records pertaining to replacement for at least five years or until the next regular examination whichever is later provide notice to the policy owner the right to return the policy within 30 days of delivery and receive a full refund

and then in long-term care insurance what type of care is provided with intermediate Care

occasional nursing or rehabilitative care intermediate Care is nursing and rehabilitative care provided by medical personnel for stable conditions that require assistance on a less frequent basis than skilled care

where me ensures allocate funds for settlement and dividend options for variable Life policies

one or more separate accounts life insurance companies May establish one or more separate accounts for allocation of settlement or dividend options for variable Life policies

for how long does the commissioner keep records detailing the proceedings of an insurer based in Hawaii

one year the commissioner must keep the records and reports of the proceedings hearings and examinations of domestic insurers for at least one year

the commissioner will adopt a system of examination necessary for the administration of insurance and insurance related laws examiners may not be appointed if they at the time of examination

our affiliated with the management or owns a monetary interest in any person being examined examiners may not be appointed if they at the time of examination are affiliated with the management or owns a monetary interest in any person being examined

a brain surgeon has an accident and develops tremors in her right arm which disability income policy definition of total disability will cover for all losses

own occupation - less restrictive than other definitions in theory the brain surgeon could find other work but because her disability income policy specifies that she is covered for her own occupation she would be holy covered

traditional IRA contributions are tax deductible based on what of the following

owners income traditional IRA contributions are tax deductible but maybe limited if the owner's income exceeds a certain level

a policy which stipulates that the company will return any unused premiums the policy owner is called

participating a policy that stipulates that the company will return any unneeded premiums to policy owners is called a participating policy the return of premium is the surplus after a company has deducted a claim and expenses

which of the following Provisions would prevent an insurance company from paying reimbursement claim to someone other than the policy owner

payment of claims the payment of claims provision state that the claims must be paid to the policy owner unless death proceeds need to be paid to beneficiary

which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents have died or become disabled

payor benefit if the payor ( usually a parent or guardian ) becomes disabled for at least 6 months or dies the insurer will waive the premium until the minor reaches a certain age such as 21

which of the following Provisions is mandatory for health insurance policies

physical examination and autopsy physical examination and autopsy is a mandatory provision required by law the other answer choices are optional provisions

which of the following must be present in all Medicare supplement plans

plan a in order to standardize the coverage provided under Medicare supplement policies the NAIC has developed standard Medicare supplement benefit plans which are identified with the letter A through the benefits and plan a are considered to be the core benefits and must be included in the other types

I guaranteed renewable health insurance policy allows the

policyholder to renew the policy to a stated age with the company having the right to increase premiums on the entire class coverage is guaranteed but rates can be adjusted for the entire class

a woman obtains health coverage through the marketplace on October 1 2 weeks later she finds out that she is 3 months pregnant which of the following is true about coverage for pregnancy

pregnancy will be covered immediately all health insurance marketplace plans must cover pregnancy and childbirth even if pregnancy begins before the coverage takes effect

which of the following is correct regarding the taxation of group medical expense premiums and benefits

premiums are tax deductible and benefits are not taxed premiums paid by employers for group medical expense Insurance are tax deductible for the employer as a business expense also policy benefits paid out to employees are not taxable as income to the employee

under spouse and dependent coverage legislation in Hawaii all of the following statements are true except

premiums must be paid in full by the covered employee ***premiums for dependents can be paid by the employer or employee or both all of the other statements are true

which type of Health plan is designed to protect against sudden excessive medical expenses

prepaid plans the cost of Medical Care in the event of sudden need May consume all or in excessive part of a person's resources prepaid healthcare plans offer a certain measure of protection against such emergencies

all of the following are true regarding rebates except

rebates are allowed if it is in the best interest of the client a rebate is an illegal act which involves returning something of value to the client as an inducement to buy such as commission rebates are only allowed if it's specifically stated in the policy Insurance dividends are not considered rebate such as the IRS considers it as a return of an overpaid premium

any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is unlawful practice known as

rebating rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy both the offer and acceptance of the rebate are illegal

a producer in another state wants to become a producer in Hawaii the other state gives the same privileges to Nebraska producers wanting to be licensed in the state as it does its own producers Hawaii therefore extends the privileges of its producers to prospective producer of the other state what is this called

reciprocity reciprocacity occurs when the state in which a person resides accords the same privilege to residents of Hawaii

Paul is a producer in California and wants to become a producer in Hawaii the commissioner will waive certain examination requirements provided that California will waive these same requirements if a Nebraska producer saw licensure in Hawaii what term is used to describe this phenomenon

reciprocity reciprocity occurs when the state in which the person resides accords the same privilege to residents of Hawaii

an authorized ensurer that provides reimbursement for hospice care in Hawaii mostly provide all of the following except

reimbursement for all hospital expenses all authorized insurance that provide payment for or reimbursement for hospice care must do so according to the following a minimum daily rate as set at the centers for Medicare and Medicaid services for hospice care reimbursement for residential hospice room and board expenses reimbursement for each hospice referral visit during which each patient is advised of hospice care options

which of the following is not one of the three types of term coverage based on what happens to the face amount during the policy term a- increasing b-renewable c- decreasing d- level

renewable there are three basic types of term coverage available based on how the face amount ( death benefit ) changes during the policy term: level, increasing, and decreasing. regardless of the type of term insurance purchased the premium is level throughout the term of the policy

which rule would apply if an agent knows an applicant is going to cash out an old policy and use the funds to purchase a new policy

replacement rule anytime a new policy is issued that replaces or modifies an existing Insurance a replacement form must be submitted the ceding company

a policy owner who is also the insured wants to name her husband as a beneficiary of her life policy she also wishes to retain all the rights of the ownership the policy owner should have her number named as the

revocable beneficiary the policy owner may change as a revocable designation at any time with or without the consent of the beneficiary irrevocable beneficiaries on the other hand have a vested interest in the policy so the policy owner may not be able to exercise certain rights without their consent

which of the following is not covered under part b of the Medicare policy

routine Dental Care Medicare part b covers dental expenses resulting from an accident only

if an agent wishes to sell variable Life policies what license must an agent obtain

securities variable products are governed in a part by the securities and exchange commissions therefore agents selling variable Life policies must also secure a securities license

the ownership Provisions entitles the policy owner to do all of the following assign a policy designate a beneficiary set premium rates receive a policy loan

set premium rates the insurer sets premium rates based upon underwriting considerations

all of the following are considered unfair trade practices in the business of insurance except

sharing commissions sharing commissions is allowed as long as both producers are properly licensed all other choices are unfair trade practices

a provision found in insurance policies which prevents the insured from collecting twice for the same loss is called

subrogation when the insurance accept lost payment from the insurance company they must transfer their rights to the insurer this prevents the insured from collecting twice for the same loss and allows the insurer to idemnify the insurance company

the interest earned on policy dividends is

taxable dividends are a return of unused premiums on which the insured has already paid taxes any interest earned is taxable as ordinary income

which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information

the Fair Credit reporting act the purpose of the Fair Credit reporting act is to protect consumers against the circulation of inaccurate are obsolete information and to ensure that the consumer reporting agencies are fair and equitable in the treatment of consumers

the initial amount of credit life insurance may not exceed

the amount to be repaid under the contract the initial amount of credit life insurance may not exceed the amount repayable under the contract of indebtedness

which of the following is not true regarding the annuitant a - the annuitant must be a natural person b- the annuitant cannot be the same person as the annuity owner see - the new intense life expectancy is taken into consideration for the annuity d - the new tent receives the annuity benefits

the annuity cannot be the same person as the annuity owner well they don't have to be the annuitant and annuity owner are often the same person the annuitant is the person who receives the benefits or payments from the annuity and For whom the annuity is written since the annuitant's life expectancy is taken into consideration the annuitant must be a natural person

which of the following would qualify as a competent party in an insurance contract the applicant is intoxicated at time of the applicant is a 12-year-old student the applicant is under the influence of a mind impairing medication at time of application the applicant has a prior felony conviction

the applicant has a prior felony conviction when an insurer and an insured enter into a contract of both parties must be of legal age and mentally competent it is legal for a person convicted of a felony to buy an insurance contract and intoxicated person however may not be mentally competent a 12-year-old student is considered to be an underage person in most States and a mind impaired medication most likely would not be a mentally competent individual

which of the following is true about the requirements regarding HIV exams HIV exams may not be used as a basis for underwriting the applicant must give prior informed written consent results must be disclosed to the agent and the underwriter results may be disclosed to the agent and the underwriter prior-informed oral consent is required from the applicant

the applicant must give prior informed written consent a separate written consent form must be obtained prior to an HIV exam HIV exam results must be disclosed to underwriters but not agents

which of the following is an example of liquidity in a life insurance contract

the cash value available to the policy owner liquidity in a life insurance refers to availability of cash to the insured some life insurance policies offer cash values that can be borrowed at any time used for immediate needs

non-forfeiture values guarantee which of the following for the policy owner

the cash value will not be lost because permanent life insurance policies have cash values there are certain guarantees built into the policy that cannot be forfeited by the policy owner not forfeiture values give the insured the right to the cash value even if the policy lapses or is surrendered

who is the owner and who is the beneficiary on a key person life insurance policy

the employer is the owner and beneficiary with key persons coverage the business / employer is the applicant owner premium payer and beneficiary

the insurance policy together with the policy application and any added Riders form what is known as

the entire contract when a policy is issued a copy of the application any riders and amendments are attached to the back of the policy and become a part of the entire contract

an insured purchased a 10-year level term life policy that is guaranteed renewable and convertible what happens at the end of the 10-year term

the insured May renew the policy for another 10 years but at a higher premium rate policies that are guaranteed renewable and convertible may be renewed without evidence of insurability for another like term or maybe converted to permanent insurance without evidence of insurability

insured Z's health insurance policy year begins in January his policy contains a carryover provision in November he has a small claim which is less than his deductible which of the following is true

the insured may carry over the amount of this year's expenses to next year's which will help satisfy next year's deductible under carryover provision the insured did not incur sufficient medical costs during the year to meet the deductible any medical expenses incurred during the last 3 months may be carried forward to the next year offsetting the total deductible cost for that year

which of the following is not a feature of a non-cancelable policy

the insurer May terminate the contract only at renewal for certain conditions the insurance company cannot cancel a non-cancelable policy nor can the premium be increased beyond what is stated in the policy the insurance has the right to renew the policy for the life of the contract however the guarantee to renew coverage usually only applies until the insured reaches age 65

which of the following would provide an underwriter with information concerning an applicant's health history

the medical information Bureau in agents report an inspection report provide personal information medical exams provide information on current health only the MIB will provide information about the applicant's medical history

in a life settlement contract whom does the life settlement broker represent

the owner life settlement broker is a person who for compensation solicits negotiates or offers to negotiate life settlement contract life settlement brokers represent only the policy owners

all of the following are true regarding a term Policy except a dash the contract pays only in the event of death during the term and there is no cash value b-the-face amount steadily declines throughout the duration of the contract c - the payable premium amount steadily declines throughout the duration of the contract d - the death benefit is zero at the end of the policy term

the payable premium amounts that delete declines throughout the duration of the contract premiums remain level with a decreasing term Policy only the face amount decreases

all of the following are true of key person Insurance except the key employee is the insured the plan is funded by permanent insurance only there is no limitation on the number of key employee plans enforced at one time the employer is the owner payor and beneficiary of the policy

the plan is funded by permanent insurance only key person coverage may be funded by any type of Life Insurance

how much a replacing producer respond to an applicant wishing to replace existing life insurance

the producer must provide the applicant with a notice regarding replacement in a replacement transaction a producer must present to the applicant a notice regarding replacement signed by both the applicant and the producer

an employer who provides health coverage to the dependent children of an employee must also provide coverage to a child identified in a qualified medical child support order a court order where a non-constitial parent must provide health coverage for his/her children which of the following statements is incorrect

the qmcso limits period of time in which coverage applies to renewable periods of one year the qmcso must State the period of time on which coverage applies but the renewable. of 1 year is not correct

under an extended term non-fort-future option the policy cash value is converted to

the same face amount as in the whole life policy under this option the insured uses the policy cash value to convert the term insurance for the same face amount as the former permanent policy

which of the following is not true of Life settlements they could be sold for an amount greater than the current cash value they involve insurance policies with large face amounts the seller must be terminally ill they could be used for key person coverage

the seller must be terminally ill with Life settlements unlike with viatical settlements the seller does not need to be terminally ill they usually involve life insurance policies with a face amount of $250,000 or more key person coverage corporate owned policies or policies representing excess coverage that is no longer needed and could be sold for an amount greater than the current cash value

an insured has chosen joint and 2/3 survivor as a settlement option what does this mean to the beneficiaries

the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive when the reduced option is written as joint in 2/3 survivor the surviving beneficiary receives 2/3 of what was received when both beneficiaries were alive

an insured is upset that her new health insurance policy was delivered to her by certified mail and not through her agent which of the following is true

there is nothing wrong with this form of policy delivery although it is advisable for an agent to personally deliver a policy in order to answer any questions and insured delivery it is illegal for a policy to be effectively delivered without the presence of an agent it is legal to deliver a policy through some types of mail

in Life Insurance producers are permitted to share or split commissions providing

they are both properly licensed for the line of insurance for producer to receive commissions from the sale of insurance they must be properly licensed for that line of insurance

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 funds contributed are excluded from the employees current taxable income but our taxable upon withdrawal

which of the following employees insured under a group Life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated

those who have been insured under the plan for at least 5 years if the master contract is terminated every individual who has been on the plan for at least 5 years will be allowed to convert to individual insurance of the same coverage

how many continuing education hours are required in ethics

three continuing education hours must be relating to the line of authority for what the license is held and three of those hours must be on ethics training for insurance laws and rules

what is the purpose of coinsurance provisions

to help Insurance company to prevent over you the location of the policy the purpose of the coinsurance provision is for the insurance company to control costs and discourage over you utilization of the policy

an insured is covered under his employees group Life plan his son has been covered as a dependent under this policy and is now attending college on a full-time basis what is the maximum age that his son could be covered under this policy provided that he remains in college

under age 23 a dependent is a child of the insured individual who is either under 18 years old under 23 and attending college full-time or regardless of age is incapable of self-sustaining employment due to mental incompetence or physical handicap

in insurance policies the insured is not legally bound to any particular action in the insurance contract but the insurer is legally obligated to pay losses covered by the insurance policy what contract element does this describe

unilateral in a unilateral contract the insured is not legally bound to do anything the insurer however must pay losses covered by the policy

under what condition of group disability income benefits received by an employee not taxable as income

when the benefits received are equal or less than the employees percentage of contribution benefits received by employees are the attributable to his or her portion of the contribution are not taxable as income

when may an insured deduct unreimbursed medical expenses paid under a long-term care

when the expenses exceed a certain percentage of the insurance adjusted gross income in either medical expense insurance policies or long-term care insurance policies unreimbursed medical expenses paid for the insurance the insured spouse and dependence may be claimed as deductions if the expenses exceed a certain percentage of the insurance adjusted gross income

when would a 20 pay whole life policy endow

when the insured reaches age 100 a limited pay whole life policy just like a straight life endows for the face amount if the insured lives to age 100 the premium however is completely paid off in 20 years

an individual health insurance coverage the insurer must cover a newborn from the moment of birth and if additional premium payment is required how many days should be allowed for payment

within 31 days of birth the insured must notify the insurer of a newly born dependent and if additional payment is required pay within 31 days

can an individual who belongs to a POS plan use an out-of-network physician

yes they may use any preferred position even if not part of the HMO in a POS plan the individuals can visit an in-network provider at their discretion if they decide to use it and out of network physician they may do so

two attorneys operate their practice as a partnership they want to start a program through their practice that will provide retirement benefits for themselves and their employees they should choose

HR-10 (Keogh) HR-10 (Keogh) plans are specifically for self-employed and their employees

which of the following is correct about group health insurance policy

I can't provide coverage for handicapped children in both individual and group policies covering a family must provide a coverage on handicapped children of the insured if upon reaching the maximum age for coverage the child continues to be both incapable of self support and chiefly dependent upon the policyholder for support and maintenance coverage may continue beyond the specified maximum age

which of the following May and insurer do regarding the age of an individual's genetic information

I cannot be used to determine premium payments it cannot be used to limit coverage it cannot request disclosure of the genetic information no unsure may use an individual's or a family members genetic information to deny your limit any coverage or establish eligibility continuation enrollment or premium payments and then sure cannot request or require collection or disclosure of an individual or family members genetic information in order to disclose an individual or family members genetic information bring consent must be provided by the affected party

which of the following statements is not true concerning Medicaid

It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income. Medicaid is a state program funded by state and federal taxes that provide medical care for the needy parts A and c are part of Medicare

long-term care insurance policies can

Limit coverage for the treatment of alcoholism. most long-term care policies specifically exclude coverage for drug and alcohol dependency acts of war self-inflicted injuries and non-organic mental conditions organic cognitive disorders such as Alzheimer's disease senile dementia and Parkinson's disease are covered

which of the following programs expands individual public assistance programs for people with insufficient income and resources

Medicaid Medicaid is a needs tested program administered by the states to provide assistance to persons who are not able to provide for themselves

all of the following statements concerning Medicaid are correct except

Medicaid is a state funded program that provides healthcare to persons over age 65 only. Medicaid is a government-funded both state and federal program designed to provide healthcare to poor people of all ages

if a dental plan is integrated it is combined with what type of plan

Medical integrated plans allow for dental plans to be included in a medical plan providing coverage for both under a single contract sometimes the deductibles are merged but this does not have to be the case

which type of Medicare policy requires Insurance to use specific healthcare providers and hospitals Network providers except in emergency situations

Medicare select Medicare select policy requires insured to use specific healthcare providers and hospitals accept an emergency situations in return the insured pays a lower premium amount

what is another name for social security benefits

Old-Age, Survivors, and Disability Insurance (OASDI) social security benefits are also known as old age survivors and disability insurance