set 3
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?
100% of his health insurance costs can be deducted from his gross income
An insurer must send a notice of appointment for a producer within __ days from the date of an executed agency contract or after submitting the first application to the insurer.
15 days
A temporary license is valid for a maximum of __ days
180
A temporary license is valid for a maximum of __ days. - 30 - 60 - 90 - 180
180
A health or disability policy is incontestable after it has been in force for a period of
2 years
Notice of a claim must be given within how many days after a covered loss?
20 days
How many total hours of continuing education must insurance producers complete biannually?
24
Lapsed individual life insurance may be reinstated at any time within
3 years
Lapsed individual life insurance may be reinstated at any time within - 2 years - 3 years - 4 years - 5 years
3 years
In a Long-Term Care policy, the Right-to-Examine period is
30 days
The required grace period for life insurance policies in Washington is
30 days
Group life insurance policies must include a provision entitling policyholders to a grace period of
31 days
Group life insurance policies must include a provision entitling policyholders to grace period of - 10 days - 31 days - 90 days - 1 year
31 days
The Commissioner is REQUIRED to examine admitted insurers AT LEAST every
5 years
How long may an insurer exclude coverage for a preexisting condition on a Medicare Supplement policy?
6 months
No legal action can be initiated within ___ after proof of loss has been submitted to the insurance company
60 days
A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of the individual's adjusted gross income.
7.5%
As classified by the Affordable Care Act (ACA), a Silver Plan offers
70% actuarial level of coverage provided
A person cannot sell long-term care insurance unless that person is licensed as an insurance producer and has successfully completed a one-time education course of
8 hours
An agent who sells an individual life insurance policy in MUST deliver to the policyowner
A Policy Summary and Buyer's Guide
Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?
A good health statement
Replacing an existing life insurance policy with a new one may result in - Capital gains taxation - Small business taxation - An illegal transaction - A surrender charge
A surrender charge
And underwriters primary responsibility to an insurer is to protect against
Adverse selection
Which of these procedures do insurers have the right to perform where it is not forbidden by law?
Autopsy
XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence?
Benefits are fully taxable
What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy?
Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age
Which of the following is a requirement for any change in an insurance application
Change must be initialed by the applicant
Which of the following basics is a producer's fiduciary responsibility?
Collecting premiums and paying them to the insurance company
Field underwriting performed by the producers involves
Completing the application and collecting initial premium
Which of the following coverages is a mandatory provision of Medicare Supplement policies?
Coverage for pre-existing conditions after six months from the effective date of coverage
An individual's waiting period for pre-existing conditions is reduced when he or she has
Creditable coverage
All of these are typically sources of underwriting information for life or health insurance except
Disclosure authorization response
One of the most important considerations when replacing health insurance would be the
Exclusions on a new policy
A Fraternal Benefit Society has each of the following characteristics EXCEPT
Exists For profit
When determining whether an annuity is suitable for a client, the producer should ask about which of the following?
Financial objectives
Violations of US Code Title 18 section 1033, may result in
Fine and/or imprisonment
XYZ Life Insurance company's home office located in Ohio and is incorporated in Ohio. In Washington, they are considered to be - Assessment Mutual Company - Non-Admitted - Foreign - Domestic
Foreign
Which of the following signature is not required on an individual insurance application
Insurer
An example of primary care physician would be a
Internist
An applicant's character and personal habits can be obtained for underwriting purposes from which source?
Investigative consumer report
Which of the following is CORRECT regarding disclosure regulation?
It requires the delivery of a buyer's guide and a disclosure document to applicants
Which of the following is considered to be a point of service plan
Managed care plan
Which of these is likely to occur when life or health insurance is being applied for
Medical history from the insured may be reviewed and reported
A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is committing which of the following violations?
Misrepresentation
When replacing a life insurance policy, a producer must provide the applicant with a
Notice Regarding Replacement
Which of these characteristics of an applicant is not taking into consideration when assessing risk for disability coverage
Number of children
The difference between pre certification and concurred review is that pre certification
Occurs before the treatment is provided
Which one of the following is a domestic insurer?
One formed under the laws of Washington
A person who is a nonsmoker of average weight an in excellent health would most likely be in which risk classification
Preferred
And insurance applicant with a below average likelihood is typically considered to be
Preferred risk
A life insurance agent is required to give a disclosure notice about information practices to an applicant or proposed insured
Prior to or at the time of signing the application
The PRIMARY purpose of the Fair Credit Reporting Act is to - Forewarn an insurer about an applicant's recent bankruptcy - Protect consumers from insurers who have filed for bankruptcy - Protect consumers with guidelines regarding credit reporting and distribution - Alert insurers regarding applicants who may have poor credit histories and may be adverse risk to the company
Protect consumers with guidelines regarding credit reporting and distribution
Any inducement offered to the insured in the sale of insurance products that is not specified in the policy is called
Rebating
Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. This is an example of - Bartering - Rebating - Reduction - Twisting
Rebating
A producer's fiduciary responsibility includes which of the following activities?
Recording the receipt and distribution of premiums due to an insurer
A producer's fiduciary responsibility includes which of the following activities? - Recording the receipt and distribution of premiums due to an insurer - Properly remunerating persons who furnish leads on prospects - Providing needed insurance to prospective insureds through any sources that are available - Guaranteeing payment to insureds for losses covered by policies that the producer sold
Recording the receipt and distribution of premiums due to an insurer
Any transaction in which new life insurance is purchased and, as a result, the existing life insurance will be surrendered is called
Replacement
All of the following facts would affect a health insurance policy's premiums rate except
Residential address of of the insured
The insurer has the right to examine the insured during the claim process and to an autopsy when death is involved and where it is not forbidden by ____
State law
A producer found to have engaged in an unfair method of competition may be - Charged 30% of the claim as punitive damages - Barred from seeking an appeal - Imprisoned for a max of 90 days - Subject to license suspension or revocation
Subject to license suspension or revocation
Which of the following describes a person who is not acceptable by an insurer at standard rates because of health history, occupations, or hobbies?
Substandard risk
A ______ license may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer's business
Temporary
Which federal government agency enforces the security laws enacted by Congress?
The Securities Exchange Commission
Which of the following statements is correct regarding an individual applying for life or health insurance
The applicant's medical history may be analyzed and reported
Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?
The contract is not in force without the initial premium being paid
Which of the following statements most aptly describes health insurance benefits
The greater the benefits, the higher the premium
Which of the following would be a valid reason why a policy premium would be higher than the standard premium
The insured does not meet established underwriting requirements
What is a certificate of authority?
The license required for an insurer to conduct business in the state
Backdating an insurance policy occurs when
The policy's effective date is earlier than the present
No existing producer's license will be revoked until
The producer has been afforded a right to a hearing on the charges
Which of the following is the purpose of medical cost management
To control health claim expenses
Replacing an insurance policy from one insurer to another based on misrepresentation is called - Unfair discrimination - Misrepresentation - Twisting - Rebating
Twisting
The renewal period for a producer's license is a - One-year term - Two-year term - Three-year term - Four-year term
Two-year term
An insurance company that has been denied or not yet applied for a Certificate of Authority is called
Unauthorized
Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued of declined
Underwriter
What guarantees that the statement supplied by an insurance applicant is true
Warranty
When does a health insurance policy because affective
When initial premium is collected and policy is issued
All of the following statements regarding the reinstatement of a life insurance policy are correct EXCEPT
a policy may be reinstated without proof of insurability
The Commissioner of Insurance along with the Department of Insurance are responsible for
administering Washington's insurance laws
A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be
all of the members of the union
A change in an insurance application requires
an initial made by the applicant
Before a licensed producer is eligible to transact insurance sales, they must be
appointed by an insurance company
Funding for the Washington Life and Disability Guaranty Association is derived from
assessments on member companies
Newborn coverage for an accident and health (disability) family policy begins
at the moment of birth
Preferred risk policies with reduced premiums are issued by insurance companies because the insured has
better than average mortality or morbidity experience
In which of the following processes will the insurer oversee the insureds hospital stay to confirm everything is going according to schedule and that the insured will be released as planned
concurrent review
Making a statement that is false or maliciously critical of the financial condition of an insurer is known as
defamation
According to the Fair Credit Reporting Act, an insurer does NOT need to
discuss any credit history inconsistencies with the applicant
A Medicare Supplement policy must NOT contain benefits which
duplicate Medicare benefits
The Commissioner of Insurance is empowered to
enforce state laws relating to insurance
Premium mode is a term used to describe the
frequency of the premium payment
Underwriters can acquire information from all of the following sources except
genetic testing
All of the following are primary risk factors in underwriting individual health insurance policies except
geographical location
Long-term care insurance
is designed to provide coverage for at least 12 consecutive months
Which of the following would probably not be considered in underwriting a health insurance risk
marital status
Tara the producer is delivering a specified disease insurance policy to a new policyowner. Upon delivery, she may be expected to collect all of the following EXCEPT a(n)
modified application with a new signature
A policy illustration given at time of sale does NOT typically include the
names of the beneficiary
A producer who is licensed in Washington but a resident in another state is called a
nonresident producer
How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes?
not tax deductible
Annuity suitability information specifically includes all of the following EXCEPT
number of dependents
