which of the following is not a term for the period of time during which the annuitant receives income?
depreciation period
in an adjustable life policy all of the following can be changed by the policy owner except
the type of investment
any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance may be imprisoned for up to
10 years
within how many days must a producer respond to an inquiry from the commissioner
30 days
which of the following is not a goal of risk retention
to minimize the insureds level of liability in the event of loss
which of the following best defines target premium in a universal life policy
the recommended amount to keep the policy in force throughout its lifetime
the annual contribution limit of a dependent care flexible spending account is set by
the IRS
an individual is purchasing a permanent life insurance policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the followi
guaranteed insurability option
what is a foreign insurer
an insurer with a home office in another state
an insured receives an annual life insurance dividend check: what term best describes this arrangement
cash option
the term illustration in a life insurance policy refers to
a presentation of nonguaranteed elements of a policy
the omnibus budget reconciliation act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under
age 65 who aren't retired
which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant
producer
which of the following statements about a suicide clause in a life insurance policy is true
suicide is excluded for specific period of years and covered thereafter
HIPAA applies to groups of
2 or more
an individual was just caught acting as an exclusive general agent- even though he is not properly licensed. assuming that this occurred in a single day what is the maximum penalty he faces
a third degree misdemeanor and a 1,000$ fine
which statement best defines a multiple employer welfare arrangement
a joining together by employers to provide health benefits for employee
which of the following entities established the DO NOT CALL registry
the federal trade commission
the insured had his wife named as the beneficiary of his life insurance policy. to ensure that his wife had income for life after the insureds death he chose the life income settlement option. the amount of payments will be determined by taking into accou
the insureds age at death
which of the following can surrender a deferred annuity contract
only the annuity owner
an insured has a major medical policy with a $500 deductible and a coinsurance clause of 80/20. if he incurs medical expenses of $4,000 the insurer would pay
$2,800
which of the following is true regarding medicare supplement policies
they must be guaranteed renewable
the death benefit in a variable universal life policy
depends on the performance of a separate account
which of the following includes information regarding a persons credit character reputation and habits
consumer report
which of the following health care plans would most likely provide the insured with comprehensive health care coverage
health maintenance organization plan
if someone wants to buy life insurance policy that will provide lifetime protection against premature death, what type of policy should that person buy
permanent
all of the following are examples of risk retention except
premiums
which of the following is incorrect concerning taxation of disability income benefits
if paid by the individual, the premiums are tax deductible
in comparison to consumer reports which of the following describes a unique characteristic of investigative consumer reports
the customers associates friends and neighbors provide the reports data
which of the folllowing would be required to be licensed as an insurance producer
a salaried employee who advertises and solicits insurance
when an insured makes truthful statements in the application for insurance and pays the required premium, it is also known as which of the following
consideration
all of the following are true regarding the medical information bureau except
MIB reports are based upon information supplied by doctors and hospitals
if an insured continually uses the automatic premium loan option to pay the policy premium
the policy will terminate when the cash value is reduced to nothing
in which of the following locations would skilled care most likely be provided
in an institutional setting
which of the following statements is correct about HMO
HMO may pay for services not covered by Medicare
what types of services may not be provided under the long term cares assisted living care
visits by an RN
an insured is hospitalized with a back injury. upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. this indicates that his policy is written with a 30 day
elimination period
a life insurance policy does not have a war clause. if the insured is killed during a time of war, what will the beneficiary receive from the policy
the full death benefit
all of the following are true regarding a decreasing term policy except
the payable premium amount steadily declines throughout the duration of the contract
which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract
warranty
which of the following factors determines the amount of each installment paid in a life income option arrangement
recipients life expectancy and amount of principal
which type of life insurance policy allows the policyowner to pay more or less than the planned premium
universal life
an insured loses her left arm in an accident that is covered by her accidental death and dismemberment policy. what kind of benefit will she most likely receive from this policy
the capital amount in a lump sum
a man purchased a $90,000 annuity with a single premium. and began receiving payments 2 months after that. what type of annuity is it
immediate
which of the following may not be included in an insurance companies advertisement
that it's policies are covered by a state guaranty association
which of the following is not true regarding equity indexed annuities
they earn lower interest rates than fixed annuities
an insured purchased an insurance policy 5 years ago. last year she received a dividend check from the insurance company that was not taxable. this year she did not receive a check from the insurer. from what type of insurer did the insured purchase this
mutual
which of the following statements about the reinstatement provision is true
if required the policyowner to pay all overdue premiums with interest before the policy is reinstated
an insurer wishes to compare the information given in an insurance application with previous insurance application by the same applicant but for different companies. what organization can help the insurer accomplish this
the medical information bureau
which of the following is the closes term to an authorized insurer
admitted
how soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company
90 days but not to exceed 1 year
which of the following is not considered a misrepresentation as it pertains to unfair trade practices
making comparison between different policies
when the insured initiates the cancellation of. a policy, the unearned premium will be refunded on a
short rate basis
in dental insurance what type of care will cover crowns
restorative
which of the following statements best describes the effect the accelerated benefit provision would have on the benefits paid to the beneficiary
if will decrease the benefits paid
which of the following is not true regarding a variable universal life policy
the death benefit is fixed
issue age policy premiums increase in response to which of the following factors
increased benefits
according to the entire contract provision a policy must contain
a copy of the original application for insurance
on a major medical insurance policy, the amount that the insured must pay on a claim before the insurer will pay is known as
deductible
in disability income insurance if an insured is considered disabled if they cannot perform any job they are surer for by prior education training or experience they fall under which definition of total disability
any occupation
once a viatical contract has been established how kind does the visitor have to rescind the contact
15 calendar days
the relation of earning to insurance provision allows the insurance company to limit the insureds benefits to his average income over a period of what time
2 years
an insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. the insured is still able to perform his current job. to what extent will he receive presumptive disability benefits
full benefits
which of the following is not a cost saving service in a medical plan
denial of coverage
all of the folllowing statements concerning accidental death and dismemberment coverage are correct except
death benefits are paid only if death occurs within 24 hours of an accident
an individual has been contributing to a retirement account after taxes are taken out of his paycheck. his advisor told him. that he will be allowed to make contributions after age 70.5. the account owner does not have to pay taxes on the growth of his ac
ROTH IRA
how is risk retention assumed
self insurance
copayments
deductibles
purpose of risk retention
reduce expenses and improve cash flow
increase control of claim reserving
fund for losses that can't be insured
in insurance an offer is usually made when
the completed application is submitted
what do individuals use to transfer their risk of loss to a larger group
insurance
all of the following actions by a person could be described as risk avoidance except
investing in the stock market
which of the following is not a characteristic of an insurable risk
the loss must be catastrophic
a situation in which a person can only lose or have no change represents
pure risk
an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. which of the following insurance principles has the insurer violated
consideration
if a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept
reasonable expectations
which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract
warranty
in which of the following examples would a contract between an insurer and prospective insured be legal
the applicant has a prior felony conviction
which of the following is not an essential element of an insurance contract
counteroffer
an insurance contract must contain all of the following to be considered legally binding except
beneficiarys consent
an individual's tendency to be dishonest would be indicative of a
moral hazard
which of the following is the closest term to an authorized insurer
admitted
events in which a person has both the chance of winning or losing are classified as
speculative risk
the risk of loss may be classified as
pure risk and speculative risk
temporary life insurance provided for a specific period of time "pure
term life insurance
various forms of whole life insurance that remain in effect until age 100
permanent life insurance
policy that distributes its dividends to policy owners by cash payments
mutual life insurance "participating
life insurance that has a guaranteed minimum and fixed benefits
fixed life insurance
contracts in which the cash values accumulated based upon a specific portfolio of stocks
variable life insurance
another name for a substandard risk classification is
rated
a producer agent must do all of the following when delivering a new policy to the insured except
disclose commissions earned from the sale of the policy
if a policy includes a free look period of at least 10 days, the buyers guide must be delivered to the applicant
with the policy
who makes up the medical information bureau
insurers
bob decides to sell his life insurance policy to a viatical settlement company. which of the following is true
it is the viatical settlement providers responsibility to inform the insurance company that the policy has been viaticated
which of the following would not fall into the category of costs associated with death
the expense of vacation for surviving family members
what is the job of a viatical settlement broker
to negotiate contracts between viatical settlement providers and viators, on the behalf of the viators
a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will
pay the policy proceeds only if it would have issued the policy
which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years
policy summary
at the time of intitial licensing what fee must a viatical settlement provider pay
$300
a policyowner of a life insurance policy who is also the insured is diagnosed with a terminal illness, so he sells the policy to a viatical company in order to pay medical bills. what term best describes the policyowners role in this transaction
viator
which is the appropriate action by the insurer if a prospective insured submitted an incomplete application
return the application to the applicant for completion
the full premium was submitted with the application for life insurance and the policy was issued two weeks later as requested. when does the policy coverage become effective
as of the application date
all of the following are business uses of life insurance except
funding against general company financial loss
if someone wants to buy life insurance policy that will provide lifetime protection on against premature death what type of life insurance policy should that person buy
permanent
what is decreasing term
premium is same but face amount decreases
assumes the form of term or permanent insurance
adjustable life
ability to increase and decrease the amount of premium paid
universal life
what characteristic makes whole life permanent protection
coverage until death or at age 100
in an adjustable life policy all of the following can be changed by the policyowner except
the type of investment
which policy component decreases in decreasing term insurance
face amount
an individual purchased a 100,000 joint life policy on himself and his wife. eight years later he died in an automobile accident. how much will his wife receive from the policy
100,000
which component increases in the increasing term insurance
death benefit
when would a 20-pay whole life policy endow
when the insured reaches age 100
at age 30 an applicant wants to start an insurance program but realizes that his insurance needs will likely change he wants a policy that can be modified.
adjustable life
an insured buys a 5 year level premium term policy with a face amount of 10,000$. the policy also contains renewability and convertibility options. when the insured renews the policy in 5 years what will happen to the premium
it will increase bc the insured will be 5 years older than when the policy was originally purchased
level term insurance provided a level death benefit and a level premium during the policy term. if the policy renews at the end of a specified period of time the policy premium will be
adjusted to the insureds age at the time of renewal
which type of life insurance policy allows the policyowner to pay more or less than the planned premium
universal life
an insured has a life insurance policy that requires him to only pay premiums for specified number of years until the policy is paid up. what kind of policy is this
limited pay life
a universal life insurance policy is best describes as
annually renewable term policy with a cash value account
which of the following best describes annually renewable term insurance
it is level term insurance
a policy will pay the death benefit if the insured dies during the 20-year premium paying period and nothing if the death occurs after the 20-year period. what type is this
level term
the death protection component of universal life insurance is always
annually renewable term
rider that allows immediate benefit if terminal illness will result in death within 2 years
accelerated benefit
when a life insurance policy was issued the policy owner designated a primary and a contingent beneficiary several years later both the insured and the primary beneficiary died in the same car accident and it was impossible to determine who died first. wh
the insureds contingent beneficiary
items stipulated in the contract that the insurer will not provide coverage for are found in the
exclusions clause
which of the following riders would not cause the death benefit to increase
payor benefit rider
an insured and his wife are both involved in a head on collision in the husband dies instantly and the wife dies 15 days later the company pays the death benefit to the estate of the insured this indicates that the life insurance policy had what provision
common disaster
A policy owner fails to pay the premium due on his whole life policy after the grace period passes but the policy remains in force this is due to what provision
automatic premium loan
the interest earned on policy dividends
taxable
what happens when a policy is surrendered for its cash value
coverage ends and the policy cannot be reinstated
how long will the beneficiary receive payments under the single life settlement option
until the beneficiarys death
an insured owns a 50,000 whole life policy. at age 47 the insured decided to cancel his policy and exercise the extended term option for the policy's cash value which is currently 20,000. what would be the face amount of the new term policy
50,000
when a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount
equal to the original policy for as long a period of time that the cash value will purchase
which of the following statements is true concerning the accidental death rider
it will pay double or triple the face amount
what is the purpose of a fixed period settlement option
to provide guaranteed income for a certain amount of time
upon the death of the insured the primary beneficiary discovers that the insured chose the interest only settlement option. what does this mean
the beneficiary will only receive payments of the interest earned on the death benefit
which of the following. is true about nonforfeiture values
they are required by state law to be included in the policy
which of the following determines the length of time that benefits will be received under the fixed amount settlement options
size of each installment
period of time over which the owner makes payments into annuity
accumulation/pay in period
time during which the sun that had been accumulated is converted into in one payments
annuity period
annuitization period
liquidation period
pay out period
how long is the right to examine period for new individual annuities issued in this state
10 days
which two terms are associated directly with the way an annuity is funded
single payment or periodic payment
what license or licenses are required to sell variable annuities
life insurance and securities license
The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years
Life income with period Certain
after three years of making payments into a flexible premium deferred a new woody the owner decides to surrender the annuity the insurer returns all the premium payments to the owner except for a predetermined percentage
surrender charge
in reference to fixed annuities what compromises most of a life insurance company's general account
conservative investments like bonds
which of the following ultimately determines the interest rates page to the owner of a fixed annuity
insurers guaranteed minimum rate of interest
why is an equity indexed annuity he considered to be a fixed annuity
it has a guaranteed minimum interest rate
under which installments option does the annuitant select the amount of each payment and the insurer determines how long they will pay benefits
fixed amount
which of the following is not true about a joint and survivor annuity benefit option
payment stop after the first death among the annuitants
an individual has been making periodic premium payments on a annuity The annuity income payments are scheduled to begin after one year since the annuity was purchased what type of annuity is it
deferred
A deferred annuity is rendered prior to annuitization which of the following best describes the nonforfeiture value of the annuity
The surrender value should be equal to 100% of the premium paid minus any prior withdraws and surrender charges
before he died and annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity he was also the insured under a $50,000 paid up a whole life policy that named his wife as primary beneficiary considering both contracts how much
50,000
which of the following is not a term for the period of time during which the annuitant or the beneficiary receives income
depreciation period
in an annuity the accumulated money is converted into a stream of income during which time period
annuitization period
under a typical health insurance policy claims that result from injuries while the insured was intoxicated or under the influence of drugs are generally
excluded
Who must pay for the cost of a medical examination required in the process of underwriting
insurer
which of the following components of dental insurance does not require the payment of a deductible
routine and preventative maintenance
what document describes an insured's medical history including diagnoses and treatment
attending physicians statement
an agent is in the process of replacing the insured's current health insurance policy with the new one which of the following would be a proper action
The old policy should stay in force until the new policy is issued
if an insurer becomes insolvent which of the following would pay benefits to policyholders
The guarantee association
an applicant for health insurance has not had a medical claim in five years he exercises daily and does not smoke or drink what classification do you assume the applicant would receive from his insurer
preferred
all of the following are true regarding the medical information bureau except
MIB reports are based upon information supplied by doctors and hospitals
evaluating information that establishes adverse selection risk is the purpose of which stage of insurance
underwriting
which term describes a situation in which people who are the most likely to have claims are also the most likely to seek insurance
adverse selection
regarding health insurance premiums all of the following statements are true except
substandard risks are not insurable and are always rejected
which of the following expenses is not covered by a health insurance policy
funeral
a group policy is used to provide accident and health coverage on a group of persons being transported by a common carrier without naming the insured persons individually is called
blanket policy
a group blanket health policy is best suited for which of the following
a summer camp
all of the following statements concerning accidental death and dismemberment coverage are correct except
death benefits are only paid if death occurs within 24 hours of an accident
if insurance company cancels how will premium be paid
pro rata
if insured cancels how will premium be refunded
short rate
lose a limb how is dismemberment paid
capital
period before benefits will be paid after an illness
elimination
Rae has an individual major medical policy that requires a coinsurance payment Ray rarely visits his physician and would preferred to pay the lowest premium possible which coinsurance agreement would be best for Rae
50-50
and insured is hospitalized with a back injury upon checking his disability income policy he learns that he will not be eligible for benefits for at least 30 days this indicates that his policy is written with a 30 day
elimination period
and insured purchased a non-cancelable health insurance policy one year ago which of the following circumstances would not be a reason for the insurance company to cancel the policy
The insured is in an accident and incurs a large claim
and insured pays her major medical insurance premium annually on March 1 last March she forgot to mail her premium to the company on March 19 she had an accident and broke her leg the insurance company would
Pay the claim
A health insurance policy lapses but is reinstated with an acceptable timeframe house soon from the reinstatement he will coverage for accidents become affective
immediately
A guaranteed renewable health insurance policy allows the
policyholder to renew the policy to his stated age with the company having the rate to increase premiums on the entire class
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known
legal actions
which of the following statements is true concerning the alteration of optional policy provisions
an insurer May change the wording of optional provisions as long as the change does not adversely affect the policyholder
what is the contract provision that allows the insurer to nonrenew health coverage in certain events occur
conditionally renewable
and insured Misstated her age out an application for an individual health insurance policy. The insurance company found a mistake after the contestable. Had expired the insurance company will take which of the following actions regarding any cream that ha
adjust the claim benefit to reflect the insured's true age
The act of voluntarily giving up insurance by the insured is called
cancellation
which renewal option does not guarantee renewal and allows the insurance company to refuse renewal of a policy or any premium due date
optionally renewable
what is the purpose of coinsurance provisions
to help the insurance company to prevent overutilization of the policy
and insured pays a monthly premium of $100 for health-insurance what would be the duration of the grace Under her policy
10 days
grace period of the premium is paid weekly
7 days
according to the time limit answer and defenses provision the insurer cannot void the policy for any miss statements on the application if the policy was in force for what time period
3 years
John owns a medical expense policy that he purchased for his family John's employer purchased a group disability income policy for John and all eligible employees John subsequently suffered an accident on the job that left him unable to work for four mont
benefits received that are attributable to employer contributions are fully taxable to the employee as income
in disability income insurance if an insured is considered disabled if they cannot perform any job they are suited for my prior education training or experience they fall under which definition of total disability
any occupation
A client has a new individual disability income policy with the 20 day probationary period and a 30 day illumination. 10 days later the client breaks their leg and is off for 45 days how many days of disability benefits willthe policy pay
15 days
all of the following benefits are available under Social Security except
welfare benefits
when a group disability insurance policy is paid entirely by the employer benefits paid to disabled employees are
taxable income to the employee
underwriting for disability insurance is unique due to the type of risk involved which of the following situations illustrates this
A construction worker pays a higher premium and receives a poor classification of disability
what is the shortest possible illumination. For group short term disability benefits provided by an employer
zero days
and insured is involved in an accident that renders them permanently DEF although he does not sustain any other major injuries the insert is still able to perform his current job to what extent will he receive presumptive disability benefits
Full benefits
benefit periods for individual short-term disability policies will usually continue from
six months to two years
on a disability income policy that contains the own occupation definition of total disability the insured will be entitled to benefits if they cannot perform
their regular job
what is the maximum. That ensure would pay benefits in accordance with an additional monthly benefit rider
One year
and insured wants to buy a disability income policy that pays a maximum monthly benefit of $1200 to make sure that the disability benefit keeps up with inflation the insured would need to add
A cost-of-living rider
in the event of a loss business overhead insurance will pay for
rent
which of the following occupations would have the lowest disability insurance premiums
personal trainer
A disability income policy is written with a 10 month benefit. A 30 day illumination and a 30 day probationary period is the insured becomes disabled due to illness nine days after the effective date the policy will pay benefits for a maximum of
10 months
Who chooses a primary care physician in an HMO
The individual member
what is the maximum age for qualifying for a catastrophic plan
30
HIPPA applies to groups of
two or more
and insured's health claim internal appeal was denied the insurer must do all of the following except
offer a payment plan
how can a new physician be added to the PPO approved list
agreed to follow the PPO standards and charge the appropriate fees
which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service
copayment
which of the following terms describes a specific dollar amount of the cost of care that must be paid by the member
copayment
and employee becomes insured under a PPO plan provided by his employer if the insured decides to go to a physician who is not a PPO provider which of the following will happen
The PPO will pay reduced benefits
how much in patient care must be provided following a vaginal delivery by health insurance policies that provide maternity benefits
48 hours
which of the following is not a metal level of coverage offered under the patient protection and affordable care act
Iron
which of the following answers does not describe the principal goal of a preferred provider organization
provide medical services only from physicians in the network
which of the following is not true of basic medical expense plans
coverage for catastrophic medical expenses
what happens if a nonmember physician is utilized under the point of service plan
The attending physician will be paid a fee for service but the member patient will have to pay a higher coinsurance amount
which of the following is true regarding the childhood immunization benefit in medical plans issued in the state
it's a mandatory benefit
when an insurer offers services like preadmission testing second opinions regarding surgery and preventative care which term would best apply
case management provision
and insured is covered under to group health plans under his own and his spouses he had suffered a loss of $2000 after the insured paid the total of $500 in deductibles and coinsurance the primary insurer covered $1500 of medical expenses what amount if a
$500
in order to be eligible for group health insurance all of these conditions and employee must meet except
must have dependents
which statement best defines in multiple employer welfare arrangement
a joining together by employers to provide health benefits for employee
which of the following statements concerning group health insurance is correct
The employer is the policyholder
what is the purpose of cobra
to provide continuation of coverage for terminated employees
which of the following groups seeking group health insurance wouldrepresent a bad risk for underwriters
A group that changes insurance annually
in a group policy the contract is between
The employer and the insurance company
can a group that is form for the sole purpose of obtaining group insurance qualify for a group coverage
no the group must be formed for a purpose other than obtaining group insurance
which of the following statements is not correct concerning the cobra act of 1985
it requires all employers regardless of the number or age of employees to provide extended group coverage
in group insurance what is the policy called
Master policy
which of the following is considered a qualifying event under COBRA
divorce
which of the following is true regarding MET
they allow several small employers purchase less expensive insurance together
what are the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of
50 or more
A husband and wife are insured under group health insurance plans at their own places of employment and as dependents under their spouses coverage if one of them incurs hospital expenses how are those expenses likely be paid
The benefits will be coordinated
all of the following statements describes a MEWA except
MEWA are groups of at least three employers
under a non-scheduled plan what portion of the balance could insured expect to pay for basic services
20%
most scheduled plans provide first dollar benefits without
coinsurance and deductible's
and insured is scheduled to have two cavities filled he knows in advance what benefits will be paid for the procedure which clause is responsible for the advanced notification
prior authorization
which of the following is not covered under dental insurance plan
respite care
which type of dental care would cover the cost of fillings
restorative
which type of dental care would cover operative treatment of the mouth
oral surgery
which type of dental plan which is incorporated into a major medical expense plan
integrated dental plan
A child is being fitted for braces which type of dental care is this
orthodontics
which of the following statements is true concerning employer group dental plans
they seldom contain a conversion privilege
if a dental plan is integrated it is combined with what type of plan
medical
in order to minimize adverse selection employer group dental plans may require employees who enroll after they were initially eligible to participate to do all of the following except
increased benefits for a period of one year
combination plans are compromised of two types of plan features basic and
comprehensive
which type of dental treatment involves the replacement of natural teeth with artificial devices
prosthodontist
dental expense policies generally have a deductible that would apply to all of the following except
preventative care
which type of service under non-scheduled plan typically has large deductibles and pays around 50% for the services provided
major service
an applicant is discussing his options for Medicare supplement coverage with his agent the applicant is 65 years old and has just enrolled in Medicare part a and part B what is the insurance company obligated to do
offer the supplement policy on guaranteed issue basis
in reference to the standard Medicare supplement benefits plans what does the term standard mean
all providers will have the same coverage options and conditions for each plan
what is the duration of the free look. For Medicare supplement policies
30 days
A long-term care shoppers guide must be presented at what point
prior to the time of application
which type of care is not covered by Medicare
long-term care
an insurer may providecommissions to an agent for the sale of a long-term care policy only if the first year commission is not greater than what percentage of the first year premium
50%
The Omnibus budget reconciliation act of 1990 requires a large group health plans must provide primary coverage for disabled individuals under
age 65 were not retired
all of the following long-term care coverage is would allow an insured to receive care at home except
skilled care
which types of insurance companies marketing long-term care insurance coverage must establish procedures to a sure that any comparison of policies by its agents will be fair and accurate
every company is required to establish marketing procedures
all of the following statements about Medicare part B are correct except
it is a compulsory program
A long-term care insurance shoppers guide must be provided in the format developed by which of the following
NAIC
regarding long-term care coverage as the illumination. Get shorter the premium
gets higher
when an employee is still employed upon reaching age 65 in eligibility for Medicare which of the following is the employees option
remain on the group health insurance plan and D for eligibility for Medicare until retirement
The part of Medicare that helps pay for inpatient hospital care in patient care in a skilled nursing facility home health care and hospice care is known as
part a
which of the following statements is correct
HMO may pay for services not covered by Medicare
how are the excess funds in an employee is HSA handled
The funds can be carried forward to the next year
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
which of the following is true regarding benefits paid to disabled employees
they may be subject to taxation if the premium was paid by the employer
which of the following is incorrect concerning taxation of disability income benefits
if paid by the individual the premiums are tax deductible
The annual contribution limit of a dependent care flexible spending account is set up by
The IRS
and insured is covered by a partially contributory group disability income plan that pays benefits of $4000 a month if the insured pays 25% of the monthly premium how much the monthly benefit would be taxable
$3000
what are the two types of flexible spending accounts
healthcare accounts in dependent care account's
an individual is insured under his employers group disability income policy the insured suffered an accident on vacation a lot of money go to work for four 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
how are the employer contributions to health reimbursement account to treat it in regards to taxation
they are tax-deductible
which of the following statements is correct concerning taxation of long-term care insurance
excessive benefits may be taxable
and insured makes regular contributions to his health savings account how are those contributions treated in regards to taxation
they are tax-deductible
and insured has a $1000 H are a account through his employer he incurred $750 in medical expenses the first year of the plan how much of anything with the insured be able to roll over toward the next year's expenses
$250
Group disability income insurance premiums paid by the employer or
deductible by the employer as an ordinary business expense
A non-contributory group disability income plan has a 30 day waiting. It offers benefits of $2000 a month if an employee is unable to work for seven months to do a cover disability the employee will receive
$12,000 all of which is taxable
all of the following would be qualified as a dependent under dependent care flexible spending account except
Jeremy who had both legs every dated but is learned his videos
which of the following will not be inappropriate use of a deferred annuity
creating an estate
The death benefit in a variable universal life policy
depends on the performance of a separate account
concerning Medicare part D which statement is incorrect
it is fully funded by Social Security taxes
which of the following statements is true regarding LTC insurance
every policy must offer nonforfeiture benefits to the applicant
which of the following best describes a viatical settlement purchaser
someone who gives money as consideration for a life insurance policy
it was the following circumstances can financial institutions share insurance coverage information with third parties for the purpose of soliciting the purchase of insurance
if I consumer does not sign and return the notice of disclosure within 30 days
The death benefit under the universal life option B
gradually increases each year by the amount that the cash value increases
which of the following is not true regarding the annuitant
do you nudes and cannot be the same person as the annuity owner
in insurance an offer is usually made when
The completed application is submitted
I need to advertise going to company claims that it has funds in its possession that hard facts not available for the payment of losses or claims the company is guilty of
misrepresentation
which of the following protects consumers against the circulation of in accurate or obsolete personal or financial information
The fair credit reporting act
an Asian except the premium payment 35 days afterwards do you telling me ensure that there will be a problem keeping the policy in force this is an example of what type of agent authority
apparent
0BRA requires which disease to be covered by an employer for 30 months before Medicare becomes the primary mode of coverage
end stage renal failure
if a policy includes a free look. At least 10 days the buyers guide must be delivered to the application
with the policy
The insurer must be able to rely on the Stevenson the application and the insured must be able to rely on the insured to pay valid claims in the forming of an insurance contract this is referred to as
utmost a good faith
The automatic premium loan provision is activated at the end of
grace period
what is the benefit of choosing extended term as a nonforfeiture option
it has the highest amount of insurance protection
when I 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 it as a single premium
A hospital indemnity policy will pay
A benefit for each day the insured is in the hospital
within how many days are requesting an investigative consumer report must in sure notify the consumer in writing that the report will be obtained
three days
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
without receiving written consent from an insurance regulatory authority
what is the maximum penalty for habitual for noncompliance with the fair credit reporting act
$2500
what does level referred to in level term insurance
Face amount
all of the following are licensing requirements for a business entity except
having allte continuing education courses once every two years
which of the following ultimately determines the interest rates paid to the owner of a fixed annuity
insurers guaranteed minimum rate of interest
how was the farm is not covered under part B of a Medicare policy
routine dental care
A producer has successfully completed 52 hours of CE how many hours can you produce reply to her current reporting. How many hours can she carried forward to the next reporting period
24 hours will be applied to the current reporting. 20 forward to the next four hours may not be carried over
what is the purpose of the insurance guaranty Association
to protect policy owners against insurer insolvency
which of the following is true regarding the annuity period
it may last for the lifetime of the annuitant
what is the civil penalty for the first violation of the Pennsylvania insurance fraud prevention act
$5000
which of the following is not true regarding a non-qualified retirement plan
it needs IRS approval
I was the five individuals must have insurable interest in the insured
policy owner
A universal life insurance policy has two types of in interest rates
guaranteed and current
an insurance company it's new policy holders their premium cost will not increase and then all of a sudden they do increase which term best describes the sacked
fraud
all of the following are true statements regarding the accumulation at interest option except
The interest is not taxable since it remains inside the insurance policy
I hope insurance policy that pays a lump sum if the insured suffered a heart attack is known as
critical illness
which of the following entities has the authority to make changes to an insurance policy
insurers executive offer
which of the following healthcare plans are most likely provide the insured with comprehensive healthcare coverage
HMO
all other factors being equal which of the following types of annuities would generally provide the highest monthly income
Straight life
which of the following is not a characteristic of a group long-term disability plan
The benefit can be paid up to 50% of one's yearly income
under the fair credit reporting act if the consumer challenges the accuracy of the information contained in his or her report reporting agency must
response to the complaint
which of the following is not a feature of a guaranteed renewable provision
The insurer can increase the policy premium on an individual basis
at what point messing outline of coverage be delivered
at the time of application or upon delivery of the policy
which of the following insurers are owned by stockholders who have usual rights of ownership including write a voting
stock
all of the following are examples of risk retention except
premiums
Insurance is the transfer of
risk
A universal life insurance policy is best described as
annually renewable term policy with a cash value account