Life and Health Insurance Review #1

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within

90 days

As it pertains to group health insurance, COBRA stipulates that

Group coverage must be extended for terminated employees up to a certain period of time at the former employee’s expense

In which of the following cases will the insured by able to receive the full face amount from a whole life policy

If the insured lives to age 100

All of the following are covered by Part A Medicare EXCEPT

Physicians and surgeons services

Which of the following is TRUE regarding a single life settlement option

It provides income the beneficiary cannot outlive

Which of the following premium modes would result in the highest annual cost for an insurance policy

Monthly

What is the maximum fine for submitting a false or fraudulent claim to the insurer

$1,000

How many consecutive months of coverage must LTC insurance provide in this state

12

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 correct regarding selecting a primary care physician in a PPO plan

The insured may choose medical providers not found on the preferred list

As insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. Te insured is still able to preform his current job. To what extent will he receive Presumptive Disability benefits?

Full benefits

In order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits

60 days

Most agents try to collect the initial premium for submission with the application, When an agent collects the initial premium from the applicant, the agent should issue the applicant a

Premium Receipt

In which of the following situations is it illegal for an insurer to disclose privileged information about an insured

A researcher for marketing purposes

Which of the following is NOT a goal of risk retention

To minimize the insured’s level of liability in the event of loss

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount

Equal to the original policy for as long as the cash value will purchase

Which of the following statements is CORRECT concerning the relationship between Medicare and HMO’s

HMO’s may pay for services not covered by medicare

Which of the following is NOT the purpose of HIPPA

To provide immediate coverage to new employees who had been previously covered for 18 months

If after a claim benefits are not paid on a timely basis, the benefits will begin to bear a simple interest rate of

12%

The authority granted to an agent through the agents contract is referred to as

Express Authority

In a traditional IRA, withdrawals prior to what minimum age are considered early and a subject to penalty

59 1/2

All of the following are dividend options EXCEPT

Fixed-Period Installments

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis

Guaranteed

An 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

Which of the following is considered a presumptive disability under a disability income policy

Loss of two limbs

Which of the following is the best reason to purchase life insurance rather than an annuity

To create an estate

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 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

A producer misrepresents the details of an insureds new insurance contract that will be replacing the current contract. Which of the following is the producer violating

Errors and omissions liability

What is the purpose of a conditional receipt

It is intended to provide coverage on a date prior to the policy issueif certain conditions are met.

All of the following are true about variable products EXCEPT

The premiums are invested in the insurers general account

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity

Insurers guaranteed minimum rate of intrest

Which of the following explains the policyowners right to change beneficiaries, choose benefit payment options, and assign the policy

Owners Rights

Which of the following information about the applicant is NOT included in the general information section of the application for insurance

Medical background

Under the affordable care act, what percentage of preventive care must be covered without cost sharing

100%

Which of the following is correct about Medicare

The program is divided into four parts (A-D)

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds

$50,000

Which insurance principal states that if a policy allows for greater compensation that the financial loss incurred, the insured may only receive benefits for the amount lost

Indemnity

Guarantee of insurability option in long term care policies allows the insured to

Increase benefit levels without providing proof of insurability

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract

Conditional

Which nonforfeiture option has the highest amount of insurance protection

Extended Term

Which of the following is NOT applied toward the deductible under a nonscheduled plan

Annual dental exam

When may an insurer require an insured to provide genetic information

Never

Which of the following will be included in a policy summary

Premium amounts and surrender values

Which provision states that the insurance company must pay Medical Expense claims immediately

Time of payment of claims