Exam Prep

Front 1

An HMO is regarded as an organized system of health care that provides a comprehensive array of medical services on a?

Back 1

PREPAID BASIS

Front 2

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

Back 2

A debtor has an insurable interest in the life of a lender.

Front 3

An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?

Back 3

$120 per day

Front 4

What is the most common way to transfer risk?

Back 4

Purchase insurance

Front 5

Who is the beneficiary in a credit health policy?

Back 5

The lending institution.

Front 6

Which of the following is the most common time for errors and ommissions to occur in the part of an insurer?

Back 6

Policy delivery.

Front 7

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.

Back 7

Conditional.

Front 8

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

Back 8

6 credits

Front 9

What is an example of liquidity in a life contract?

Back 9

The cash value available to the policyowner.

Front 10

Which of the following must be present in all Medicare supplement plans?

Back 10

Plan A

Front 11

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

Back 11

The employer is the owner and beneficiary.

Front 12

All of the following must be specified in an insurance policy except

Back 12

The financial rating of the insurer.

Front 13

What are the 3 category of costs associated with death?

Back 13

Funeral expenses, final medical expenses of the insured, day to day expenses of maintaining family.

Front 14

Who is responsible for equitably evaluating insurable risks and selecting and distributing to the insurer those that are profitable to the insurer?

Back 14

Underwriter.

Front 15

When an individual purchases insurance, what risk management technique ate they practicing?

Back 15

Transfer

Front 16

What are the 3 categories of risk retention?

Back 16

Deductibles, copayments, self -insurance.

Front 17

What does "level" refer to ik level term insurance?

Back 17

Face amount.

Front 18

When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?

Back 18

When the expenses exceed a certain percentage of the insured's adjusted gross income.

Front 19

The annual contribution limit of a Dependent Care Flexible Spending Account is set by?

Back 19

IRS.

Front 20

Which of the following is Not a characteristic of pure risk?

Back 20

The loss must be catastrophic.

Front 21

The insured is also the policyholder of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

Back 21

100.

Front 22

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Back 22

Limited-pay Life.

Front 23

The Health Insurance Counseling and Advocacy Program is administered by.

Back 23

The CA Department of Aging.

Front 24

What is the purpose of the buyers guide?

Back 24

To allow the consumers to compare the costs of different policies.

Front 25

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?

Back 25

Return the application to the applicant for completion.

Front 26

A 40 yr man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 yrs later. He never remarries and dies at age 61, leaving 2 adult children. Assuming he never changed the beneficiary, the policy proceeds will go to?

Back 26

The insured's estate.

Front 27

A domestic insurer issuing variable contracts must establish one or more?

Back 27

Separate accounts.

Front 28

After a back injury, an insured is disabled for a year. His insurance policy carries a disability income benefit rider. Which of the following benefits will he receive?

Back 28

Monthly premiums waiver and monthly income.

Front 29

Regarding health insurance premiums, all of the following ststements are true EXCEPT?

Back 29

Substandarf risks are not insurable and are always rejected.

Front 30

A typical Accidental Death & Dismemberment policy civers all of the following losses EXCEPT?

Back 30

Income.

Front 31

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurabilitt os provided. Which policy allows this?

Back 31

Reinstatement provision.

Front 32

Which of the following is NOT typically excluded from life policies?

Back 32

Death due to plane crash for fare-paying passengers.

Front 33

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

Back 33

The annuitant must be a natural person.

Front 34

The automatic premium loan provision is activated at the end of the?

Back 34

Grace period.

Front 35

A man works for Company A and his wife works for Company B. The spouses are covered by health pans through their respective companies that also cover the other spouse. If the husband files a claim?

Back 35

The insurance through his company is primary.

Front 36

Which of the following is NOT covered undered Plan A in Medigap insurance?

Back 36

The Medicare Part A deductible.

Front 37

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional, insurance in the future without having to prove insurability. The rider is called?

Back 37

Guaranteed insurability.

Front 38

Which of the following best describes what the annuity period is?

Back 38

The period of time during which accumulated money is converted into income payments.

Front 39

Equity indexed annuities?

Back 39

Seek higher returns.

Front 40

Which renewal provisions must be included in a long-term care policy issured to an individual?

Back 40

Noncancellable and guarantees renewable.

Front 41

The right of the applicant to rescind the policy for a full refund of all premiums?

Back 41

Must be clearly stated in the policy's text.

Front 42

During the free look period the premium for a variable annuity may be invested in all of the following EXCEPT?

Back 42

Value funds.

Front 43

The key factor of representation that allows the injured party to rescind the contract is?

Back 43

If the representation is false in a material point.

Front 44

An applicant for insurance is requesting more information from her agent about a claim that is currently being settled. Within what time period must the agent respond?

Back 44

15 days.

Front 45

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?

Back 45

Interest only.

Front 46

What is the priority for IRA distribution that are below the required minimum for the year?

Back 46

50%

Front 47

An insured had $500 lett in his life health reimbursement account when he quit his job. What happens to the money?

Back 47

The insured can have access to the $500 at hisnprevious emplyers discretion.

Front 48

An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the interest accumulated in the annuity NOT be taxable?

Back 48

Spouse

Front 49

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT?

Back 49

It is a life contigency ootion.

Front 50

COBRA applies to employers with at least?

Back 50

20 employees

Front 51

Which characteristics does not describe managed care?

Back 51

Unlimited access to providers.

Front 52

If an immediate annuity is purchased with the fave amount at death or with the cash value at surrender, this would be considered

Back 52

Settlement option.

Front 53

All of the following benefits are available under Social Security EXCEPT?

Back 53

Welfare benefits

Front 54

Which of the following is true regarding a term health policy?

Back 54

It is nonrenewable.

Front 55

What size companies are eligible for health reimbursement accounts HRA?

Back 55

Companies of all sizes.

Front 56

A producer is acting in what capacity when they are trying to obtain information about an applicant for health insurance?

Back 56

Field underwriter

Front 57

In insurance, an offer is usually made when?

Back 57

An applicant submits an application to the insurer

Front 58

Who is a third party owner?

Back 58

A policy owner whonis not the insured.

Front 59

Which of the following best describes the "first-dollar" principle in basic medical insurance?

Back 59

The insured is not required to pay deductible.?

Front 60

One of the advantages of a family life insurance policy that provides coverage for children is thay it?

Back 60

May be converted to permanent onsurance for the children without requiring evidence of insurability.

Front 61

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT?

Back 61

Skilled care

Front 62

When an insured incurs medical expenses during the last 90 days of a calender year, the Carry-Over Provision allowa them to?

Back 62

Apply such expenses to the new years deductible.

Front 63

A group policy 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

Back 63

Blacket policy

Front 64

Sue has an HSA and is planning to leave her current job for a new job. When she leaves her job, what will happen to her HSA?

Back 64

It will continue because it isnowned by SUE, not her employer.

Front 65

Which of the following statements is NOT correct concerning the COBRA Act of 1985

Back 65

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.

Front 66

The purpose of managed care health insurance plans to?

Back 66

Control health insurance claims expenses.

Front 67

The legal definition of a "person" are?

Back 67

Business entity, corporation, human

Front 68

Group underwriting is a beneficial in comparison to individual underwriting due to which of the following reasons?

Back 68

The cost of coverage is generally lower due to the reduction of risk.

Front 69

A situation in which a person can only lose or have no charge represents?

Back 69

Pure risk.

Front 70

HICAP offers services in the following areas EXCEPT?

Back 70

Sales of LTC policies.

Front 71

Underwriting for disability insurance is unique due to the type of risk involved. Which of the following situation illustrates this?

Back 71

Construction worker pays a higher premium and receives a poorer classification of disability.

Front 72

Shortly after a replacement transaction on a Medicare supplement policy. The insured decided to cancel the policy, but is unsure whether the free look provision applies. The insured could find that information in the?

Back 72

Notice Regarding replacement.

Front 73

According to PPACA metal levels classification, if a health care plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that?

Back 73

Platinum.

Front 74

An insured is covered under 2 group health plans- his own and his spouses. He had suffered a loss of 2,000. After the insured paid the total of 500 in deductibles and coinsurance, the primary insurer covered 1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?

Back 74

500.

Front 75

Which is true regarding HMO coverage?

Back 75

It is divided into geographic territories.

Front 76

Which of the following dental insurance categories would cover the filling of cavities

Back 76

Routine and major restorative care

Front 77

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learnes that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30 day?

Back 77

Elimination period.

Front 78

What is the typical deductible for basic surgical expenses insurance?

Back 78

$0.00

Front 79

Which of the following isnt correct concerning a medical savings account?

Back 79

MSA are only available to groups with at least 100 employees.

Front 80

An insured pays a monthly premiums of $100 for her health insurance. What would be the duration of the grace period under her policy?

Back 80

10 days.

Front 81

What limits the amount that a policyowner may borrow from a whole life insurance policy?

Back 81

Cash value

Front 82

Which of the groups would most likely be covered under a blanket accident policy?

Back 82

Students at a public school.

Front 83

All of the following statements concerning Accidental Death and dismemberment coverage are correct EXCEPT?

Back 83

Death benefits are paid if death occurs within 24 hours of an accident.

Front 84

How many pintd of blood will be paid for bt Medicare Supplement core benefits?

Back 84

First 3

Front 85

Which of the following terms describes a specific dollar amount of the cost of care that must be paid by the member?

Back 85

Copayment?

Front 86

An individual works for a manufacturing company. If he decides to fund a retirement plan for himself, for which of the following plans could he qualify?

Back 86

Individual retirement account

Front 87

Which of the following applies to partial disability benefits?

Back 87

Payment is limited to a certain period of time.

Front 88

Assume that a policy allows the insurer to terminate coverage for a "class" of clients under stated circumstances. Which of following classes would it be illegal for the insurer to terminate?

Back 88

All insured with a sexual preference which increases the risk of HIV infection.

Front 89

A 63-year old man is planning to be employed until age 68. When will be eligible for Medicare?

Back 89

Age, 65 regardless of his employment status.

Front 90

A life insurance policy can be delivered by all of the following means, EXCEPT?

Back 90

Priority mail.

Front 91

What is the penalty for excessive contributions to an IRA?

Back 91

6%

Front 92

What types of services may NOT be provided under the long-term care's assisted living care?

Back 92

Visits by a registered nurse.

Front 93

Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called?

Back 93

Key employee disability insurance.

Front 94

All of the following are true regarding key person disability income insurance EXCEPT?

Back 94

Premiums are tax deductible as a business expense

Front 95

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled called?

Back 95

Waiver of premium.