Arizona Life and Health Insurance State Exam Simulator

Arizona Life and Health Insurance State Exam Simulator 100% of the insured's primary insurance amount (PIA) - ANS-what is the maximum social security disability benefit amount an insured can receive? 18 months - ANS-under HIPPA, medical plane late enrollees may be excluded for pre-existing conditions for a maximum of 20 or more - ANS-how many employees must an employer have for the consolidated omnibus budget reconciliation act of 1985 (COBRA) to apply? 20% - ANS-Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of 20% - ANS-Nonqualified medical expense distributions from a Health Savings Account (HSA) have a tax penalty of 20% is withheld for income taxes - ANS-An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction? 6 months - ANS-How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision? 60 days - ANS-the time limit an individual has to 'rollover' funds from an IRA or qualified plan is 90-ANS-according to ERISA regulations, a summary plan description must be provided to a new plan member within days of the member's eligibility date a federal health insurance program for individuals over the age of 65 or permanently disabled -ANS-Medicare can be described as A flexible premium deposit fund and a monthly renewable term insurance policy - ANS-which of the following combinations best describe a universal life insurance policy? a medicare supplement additional benefit - ANS-emergency health care coverage for Medicare enrollees traveling abroad is A parent saving for a child's college - ANS-Which of the following would NOT be appropriate for an immediate annuity? after two years of disability - ANS-an insured is covered under a group long-term disability policy. Under this type of policy, the definition of disability based on any occupation typically applies AHCCCS-ANS-Which plan offers coverage for nursing home (custodial) care without requiring any previous period of hospitalization? An annuity exchanged fora. life insurance policy. - ANS-Which of the following is NOT a valid contract exchange? AN income benefit which is a percentage of his primary insurance amount - ANS-Rick is a disabled worker receiving Social Security benefits. What are his wife and dependent children eligible for? An individual permanent life insurance policy - ANS-which type of policy can group term life insurance normally be converted to? An issued policy - ANS-What qualifies as acceptance of an insurance contract offer? annual return/report (form 5500) - ANS-A description of a qualified plan's insurance contract may be found in which ERISA reporting form? annuitant dies ore becomes disabled - ANS-The surrender charge on many deferred annuity contracts are waived when the application - ANS-in Arizona, when personal information is collected from a source other than the accident and health insurance applicant or public records, a notice of information practices must be given to the applicant no later than the date of application - ANS-in Arizona, when personal information is collected from a source other than the accident and health insurance applicant or public records, a notice of information practices must be given to the applicant no later than the date of Aprill 1st of the year following the year the participant attains age 70 1/2-ANS-Traditional individual retirement annuity (IRA) distributions must start by as a section 1035 exchange - ANS-Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes? As the number of insured units increases, the number of losses decreases - ANS-which of these statements regarding insurance is false? As the number of insured units increases, the number of losses decreases - ANS-Which of these statements regarding insurance is false? Available to the policyowner when the policy has been surrendered. - ANS-Which statement regarding the cash value of a whole life insurance policy is correct? bridgework - ANS-which of the following is considered to be a prosthodontic dental procedure Care for incurable conditions - ANS-Which of the following is NOT an allowable exclusion for long-term care insurance policies? cash payment is not directly provided by the policyowner - ANS-which statement regarding the waiver of premium rider is accurate? cash value accumulations have a guaranteed minimum interest rate - ANS-which statement regarding universal life insurance is correct? contract guaranteed rate - ANS-Interest is credited to a fixed annuity no lower than the contract of adhesion - ANS-The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n) Corporation paying for group disability income coverage for its employees - ANS-In what situation would disability income insurance premiums be a deductible expense? cost basis - ANS-AI surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the cover preventative care once every six months - ANS-Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans covered with term life insurance - ANS-an employee insured under a group life insurance plan is normally create new funds upon the death of a wage-earner - ANS-which of the following is NOT an intended use of an annuity? decreased employee participation - ANS-All of these are used to prevent adverse selection in a group dental plan EXCEPT Determining the final rate classification - ANS-Which of these is NOT an underwriting responsibility of a life insurance agent? disability policies - ANS-Elimination periods typically apply to employee benefits - ANS-when using the needs approach for life insurance planning, a lump sum may be created to provide for all of the following EXCEPT enters a hospital - ANS-the benefit period of medicare part a begins on the first day the insured evidence of insurability is required when there is a change in premium - ANS-which statement concerning an adjustable life insurance policy is FALSE excess charge - ANS-The difference between a doctor's actual charges and the amount approved by Medicare is referred to as a(n) exclusive benefit rule - ANS-An officer for a corporation takes out numerous unsecured loans from the company's qualified retirement plan. Which of these rules is the plan in violation of? expenses and withdrawals - ANS-When determining the accumulation value of a deferred annuity, the total is calculated by taking the premiums paid plus interest earned minus Expressed authority - ANS-Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of flat deductible - ANS-major medical policies are typically characterized by which of the following? flat rate unrelated to the borrower's age - ANS-what are premiums for group credit life insurance based on? highest amount payable - ANS-A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the HMO - ANS-Which of the following health plans pay benefits on a pre-paid service basis? HMO plan - ANS-an accident and health plan that typically covers ONLY the services of approved providers is called a(n) hospice care - ANS-Some standard Medicare Supplement policies include which benefit? If tom's employment is terminated, 20% of the funds could be forfeited - ANS-Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted? income tax and penalty tax - ANS-Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? Income taxes plus a 10% penalty tax on $30,000-ANS-a 55-year-old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the funds were rolled over? inpatient drugs - ANS-medicare part a typically covers inpatient drugs - ANS-meidcare part a typically covers insurance companies - ANS-The medical information bureau consists of members from which group? insured is expected to be confined to a nursing home for life - ANS-A life insurance policy that contains an accelerated (living) benefit rider will provide funds if the interest on proceeds must be paid by the beneficiary - ANS-which statement is INCORRECT about the interest-only settlement option in a life insurance policy? investment risk is assumed by the purchaser - ANS-when compared to a fixed annuity, a variable annuity has what distinguishing feature? It encourages weekend admission - ANS-which of the following statements regarding hospital pre-authorization is NOT true? january through march of each year - ANS-After the initial enrollment period for Medicare part b has expired, when may an individual purchase again? joint and survivor - ANS-Which life insurance settlement option pays lifetime benefits to two or more people? joint life - ANS-what type of insurance policy covers two or more persons and pays the face amount upon the death of the first insured? level premiums - ANS-What type of premiums are associated with individual mortgage protection life insurance policies? life income - ANS-what is another term used for a 'pure' life annuity life income annuity - ANS-which of these is NOT a common life insurance nonforfeiture option? limit placed on the number of teeth that may be treated annually - ANS-all of these are common limiting factors with dental insurance EXCEPT for limited perils and amounts - ANS-what is covered under a limited accident and health insurance policy? loan amount is increased to reflect the amount of interest due - ANS-Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment? long-term care insurance - ANS-custodial care is normally covered under Marketing the plan - ANS-A MET third-party administrator may NOT perform which of the following functions? may result in the disclosure of hazardous activities of the applicant - ANS-field underwriting by a producer medical loss ratio - ANS-According to the affordable care act (ACA), the portion of premium revenues spent on clinical services and quality improvements is called the Medicare supplemental insurance - ANS-medicare part b excess charges are covered by members of the associations are usually in the industry- ANS-which statement is true of trade association groups eligible for group medical benefits? net payment cost index - ANS-Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons? no limit - ANS-beginning January 1, 2014, the restricted annual limit for plans under the affordable care act will be noncancelable - ANS-Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this? noncancelable - ANS-which of the following health insurance plans charges a premium that cannot be increased? Noncancelable - ANS-Which of the following health insurance plans charges a premium that cannot be increased? nonforfeiture options - ANS-The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called not distributed to life annuitants who died before life expectancy - ANS-Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were Only where not prohibited by law - ANS-Under the uniform mandatory provisions, an accident and health insurer has the right to request an autopsy periodically purchace additional insruance. - ANS-A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to perscription medication - ANS-Home health care benefits typically do NOT include coverage for physical examinations are performed at the expense of the insurer. - ANS-a health insurance applicant is notified that a physical examination is required. Which of the following statements is correct? physical exams of group members - ANS-which of these is NOT a factor that influences group health insurance underwriting? Plan A pays up to $5,000 and Plan B pays up to $2,000-ANS-Kim is covered under two medical expense plans. Plan A pays up to 5,000. Plan B pays up to $4,000. If she incurs $7,000 in expenses, the coordination of the benefits provision dictates that point-of-service - ANS-which of these plans allow a participant to choose either a network or non-network provider at the time when medical care is needed? policy proceeds are typically received income tax free - ANS-which of the following statements BEST describes disability buy-sell insurance policies? policy, endorsements, and attached papers constitute the 'entire contract' - ANS-the standard provisions of an accident and health insurance policy require that the policyowners may be entitled to receive dividends - ANS-which of the following accurately describes a participating insurance policy? Preferred Provider Organizaiton (PPO) - ANS-an agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is premium - ANS-what typically changes at the re-entry option date found in some term life policies? private duty nursing - ANS-which of the following does NOT fall under 'hospital care' in a typical health maintenance organization (HMO) plan? producer - ANS-When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice? proof of coverage for the employee - ANS-a certificate of coverage for a group health policy is best described as prosthodontics - ANS-the dental specialty which deals with the replacement of missing teeth is called qualified retirement plan for the self-employed - ANS-a keogh plan is a(n) reduced death benefit - ANS-what effect can a long-term care benefit rider have on a life insurance policy? rehabilitation - ANS-which of the following is NOT included as a hospice benefit under a major medical plan? removing uniform policy provisions - ANS-which of the following is NOT a basic underwriting action for accident and health insurance? reserves - ANS-what is the accounting measurement of an insurance company's future obligations to its policyowners? self-funding benefits - ANS-third-party administration has become fairly common in accident and health insurance due to the growth of Sign an enrollment card - ANS-Laura is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? Skilled nursing facility care - ANS-Medicare Part A covers which type of care? Speculative risk - ANS-which one of these is NOT considered to be an element of an insurable risk? Spendthrift clause - ANS-which life insurance policy provision prohibits a beneficiary from 'commuting, encumbering, withdrawing, or assigning' any portion of the proceeds prior to actual receipt from the company? State insurance departments - ANS-Who regulates an insurer's claim settlement practices? subject to a vesting schedule - ANS-contributions made by an employee to a qualified retirement plan are required to be