A.D. BANKER Life & Health - Comprehensive Exam

A.D. BANKER: Life & Health - Comprehensive Exam $250,000-ANS-A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is the amount payable to the survivor? 10- ANS-A client purchases an individual disability income policy and receives the policy from the insurer 45 days after application. Upon receipt of the policy, the client typically has days to review and return the policy to receive a full refund for any reason. 10 days - ANS-Under the reinstatement provision of an accident and health insurance policy, benefits for sickness are delayed. They resume following a probationary period of after the policy is reinstated. 10 days for sickness, and immediately for accidental injuries - ANS-One of your clients just reinstated his health insurance plan. When is coverage effective for sickness and accident? 100% - ANS-With a Noncontributory Group Life Plan, what percentage of the employer's employees must participate? 15-ANS-An insured should receive necessary claim forms within claim, days after notice of 2-ANS-After a life insurance policy has been in force for more than considered incontestable. years the policy is 2-ANS-The Time Limit on Certain Defenses (Incontestable) period is individual health and disability contracts. years under 20% - ANS-A Medicare Supplement Policy must include, as a core benefit, Medicare Part B coinsurance in the amount of 3-ANS-Core Benefits of Medicare Supplement policies cover pints of blood. 31 days - ANS-The grace period for an individual health insurance policy being paid on a quarterly basis is: 5 months - ANS-The waiting period from the start of a disability to be eligible to apply for Social Security disability is: 60 days - ANS-Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least days after providing proof of loss before he or she can take legal action against the insurer. A class is a distinct grouping of small employers as shown on an insurer's records - ANS-When it comes to small group health insurance: A condition that is terminal - ANS-Which of the following could initiate the Accelerated Benefits Provision or Rider of a life policy? A Medicare Supplement policy must be noncancellable and guaranteed renewable - ANS-All the following statements regarding the regulation of Medicare supplement policies sold in the state of Arkansas are correct, except: A policy summary - ANS-A personalized computer-generated illustration detailing premiums, cash values, interest rates, and surrender values is called A regular dental checkup - ANS-Part B of Medicare excludes which of the following medical expenses? A specified period of time - ANS-Term Life insurance is designed to provide coverage for A statement of good health - ANS-In the event a policy is delivered by an agent to the insured, and the premium payment is to be collected at the time of this delivery, normally what else must the agent obtain to make the delivery complete? Accidental Death Rider - ANS-When the death of an insured occurs within a specified period, causing the policy to pay double or triple benefits, this policy must have which of the following riders? Accumulation Period - ANS-The period of time over which a single sum or periodic deposits grow within an annuity is referred to as the: Actual loss experience of the group - ANS-Experience rating utilizes rate the insurer will charge for group coverage in each year of coverage. in determining the Adverse Selection - ANS-An employer who has an Open Enrollment Period four times during a policy period for group dental coverage might cause the insurer to have concerns about which of the following? All retirees are automatically covered - ANS-Which of the following is not true of Medicare Part B? An appointing insurer must file a notice of appointment within 30 days of the first submitted application - ANS-All of the following statements regarding producer appointments are true, except: An executive officer of the insurer - ANS-A policy is issued with a rider. Years later the policy owner would like to drop the rider in order to save some money. Who has the authority to effect that policy change? An individual reinstating their license after more than 12 months - ANS-Which of the following individuals is required to pass an insurance licensing exam? An insurer may defer payments of any cash surrender value for up to 6 months - ANS-Which of the following statements regarding nonforfeiture provisions in life insurance policies is true? Andrew paid a referral fee to an unlicensed solicitor for each life insurance appointment arranged - ANS-When the Commissioner of Insurance called Andrew to appear at a hearing investigating his handling of commissions, which of the following actions could be considered a violation of the insurance code? Any children of this marriage - ANS-Which of the following beneficiary designations is a class designation? Application - ANS-In order for a life insurance policy to be valid, insurable interest must exist at time of Application - ANS-Insurable interest for life insurance is necessary only at the time of: Applies to employers with 20 or more employees - ANS-Concerning COBRA, which of the following is correct? At policy inception there is a lack of insurable interest - ANS-What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance (STOLI) transactions? Attained - ANS-The name used to indicate the insured's age at time of policy renewal is the age. Benefit Period - ANS-With Long-Term Care Insurance coverage, the longer the the higher the premium is. is, Benefits are funded by a combination of taxes and premium dollars and coverage is elective -ANS-Which of the following is true of Medicare Part B? Blanket Plan - ANS-Which of the following types of limited policies would a common carrier purchase to provide medical and surgical benefits in excess of any primary coverage? Business Overhead Expense - ANS-The type of disability coverage purchased by a small business owner, to cover ongoing overhead in the event of the owner becoming disabled, would be called: Case Management Provisions - ANS-Precertification, Mandatory Second Surgical Opinion, and Concurrent Review are provisions in health insurance policies known as: Certificates of coverage must be delivered to the debtor no later than the date upon which indebtedness is incurred - ANS-Which of the following statements regarding credit insurance is not true? Chiropractor services may not be excluded on the basis that they are not physicians -ANS-Which of the following statements regarding required coverages on health insurance policies is correct? Conditional contract - ANS-When the owner of the policy and insurer must meet certain conditions in order for the health insurance policy to be enforceable, it is referred to as a(n): Conditional receipt - ANS-If a premium is collected at the time of the application, the producer will issue a: Conditions - ANS-Which of the following is NOT considered one of the essential elements of a contract? Confined to the hospital - ANS-A Basic Hospital Expense Policy provides coverage for the insured while Contract of Adhesion - ANS-A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a(n): Conversion Privilege - ANS-When a group member terminates employment, he or she has 31 days to purchase an individual policy without proof of insurability. This is referred to as the: Cover claims resulting from either sickness or accidents - ANS-A disability income policy with an elimination period of at least 90 days must: Cross Purchase - ANS-A(n) policies on one another. plan is when business partners buy life insurance Declined - ANS-If a policy was issued at a higher premium due to a higher risk exposure, all of the following can be used to reflect the higher risk, except: Decreases - ANS-The surrender charge schedule for a variable universal life policy generally over time. Defined Benefit - ANS-Which of the following qualified plans puts the investment risk entirely on the employer sponsoring the plan? Disability - ANS-income benefits received by an employee are subject to taxation in proportion to the amount of premium that the employer paid. That income attributable to the employee's premium is not taxable. Disability - ANS-An insured may find it more difficult to qualify for benefits, but will enjoy a lower premium, when a more restrictive definition of is found in a Disability Income policy. Disability Income - ANS-What type of policy pays weekly or monthly benefits for loss of income due to sickness or injury? Disabled employees must be allowed to continue their coverage for up to 6 months while disabled - ANS-Which of the following statements regarding group life insurance in Arkansas is true? dividend - ANS- consist(s) of the amount of premium that is returned to the policyowner if the insurer achieves lower mortality and expense costs than expected. Dividends - ANS-In a policy summary all of the following must be shown on both a guaranteed and non-guaranteed basis, except: Employees receive a tax deduction for employer paid premiums - ANS-All of the following statements about Group Life Insurance are true, except: Entire contract - ANS-Once issued, the application becomes part of the attached. when Eventually, no more premiums will be due on the policy - ANS-Concerning the Paid-Up Additions Dividend Option, all of the following are true, except: Facultative - ANS-The reinsurance agreement that allows the reinsurer an opportunity to reject coverage for individual risks or price them higher due to their higher risk is known as a(n) agreement. Federal - ANS-ERISA is a law. Federal Estate - ANS-If life insurance proceeds are paid to the deceased's estate they may be subject to taxes. Fiduciary - ANS-Legally speaking, a producer has a insurance premiums and applications for an insurer. duty when handling life Free Look Period - ANS-Right to Examine is the same as: Free Look Period - ANS-Which of the following provisions commence at the time of the delivery of the policy to the insured? HMOs must have an annual open enrollment period of at least one month - ANS-Which of the following statements regarding HMOs in Arkansas is correct? Hospital expenses - ANS-Part A of Medicare pays for: If an investigation cannot be completed within 45 days, the insurer must notify the claimant and explain why - ANS-Which of the following statements reflects one of the timeline requirements for handling claims? Impairment Rider - ANS-Which rider would eliminate coverage for a preexisting condition? Income tax - ANS-Benefits received from an individual Long-Term Care Policy are not subject to regardless of the deductibility of the premiums paid for the plan. Indemnity - ANS-Which principle states that an insured may be reimbursed up to the amount of the actual loss? Indeterminate Premium Life - ANS-Which of the following life insurance policies has a current and guaranteed maximum premium stated in the policy? Inspection Report - ANS-Information about an applicant's work behavior or character gathered from neighbors or co-workers would be included on an? Insurable interest - ANS-When an applicant for life insurance faces potential financial loss in the event of injury or sickness of an insured, it is said the applicant has: Insurable interest - ANS-With health and life insurance a/an of the application. is required at the time IRA-ANS-A SEP uses employer funded accounts. Irrevocable - ANS-Which of the following beneficiary designations prevents a policy owner from assigning the policy, taking a policy loan, or surrendering the policy without the beneficiaries consent? Is no less than 30 days - ANS-The grace period of an individual life insurance policy: It can provide additional temporary coverage on the insured or on other members of the family -ANS-Which of the following is TRUE of a term rider when attached to a permanent life policy? It covers participants who have resigned for 36 months following the date of their resignation -ANS-Regarding COBRA, which of the following is not true? John is liable for all expenses - ANS-John has had his individual Health and Disability Income policies for many years. While intoxicated, he was injured as the driver in a single car accident. Who covers the medical expenses for John? Key employee - ANS-The proceeds from a recruit, hire, and train a replacement employee. plan provide the necessary funds to Key employee - ANS-What type of disability income insurance pays a benefit to a business to help in the search, cost, and hiring of a replacement when an employee becomes disabled and is unable to work for the company? Last-in, first out (LIFO) - ANS-Withdrawals from a non-qualified annuity prior to annuitization are taxed on a basis. Legal Actions - ANS-Which of these is a Mandatory Uniform Provision? Limited Pay Whole Life-Age to age 65-ANS-A life insurance applicant wants a combination of savings and insurance protection with guarantees. If the applicant is willing to pay premiums only until the age of 65, at which time the policy is fully paid-up, which of the following should he/she purchase? List a primary and contingent beneficiary by their full name and relationship to the insured -ANS-What is the easiest and best way to assure that the life insurance policy's death proceeds don't end up in probate court process? Long-Term Care - ANS-A product designed to provide coverage for necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital is called: Lump Sum - ANS-Instead of waiting to receive her payments over time Jeanne decides to obtain the greatest amount of money out of her annuity immediately. Which option did she choose? Medicaid - ANS-In order for a claimant to be eligible for based upon need. benefits, they must qualify Medicare Part B - ANS-With deductible. the patient must pay 20% of covered charges plus the Medicare Select Policy - ANS-The insured may select a managed care version of a traditional Medicare Supplement Policy at a lower premium by choosing a policy that limits care to a specific list of hospitals and physicians. This would be called a: Mortality - ANS-Loading includes all of the following, except: Mortality table - ANS-An annuity owner can change all of the following in an annuity, except: Multiple Employer Welfare Association (MEWA) - ANS-When employers who self-fund their employee benefits form a larger group in order to offer health insurance benefits to each employer's workers, it is called a (an): NAIC Model Law - ANS-Which Act was implemented in order to protect consumers from questionable Medicare Supplement Policy marketing practices? Not more than 2 years - ANS-A Short-Term Disability Policy generally is for a disability lasting for: Not taxable - ANS-An insured with an individual LTC policy is deducting the premiums he is paying for the plan on his income taxes. Once he begins to receive benefits from this plan, what will be the tax consequences on this income? Nothing - ANS-Under an annuity with a Joint Life Payment Option, what will the survivor receive upon the death of the first annuitant? Nothing, as the loss would likely be excluded under his private health insurance - ANS-Bill is a retired military officer suffering from complications caused by Agent Orange exposure during his military service. He is now hospitalized in the local Veterans Administration Hospital and has incurred $54,510 in medical expenses to date. The private health insurance he now owns will likely pay: Occupation - ANS-In Individual Disability Income underwriting, the single most important rating factor from an underwriting standpoint is the applicant's: Offering and selling only the lowest premium policy - ANS-All of the following are producer responsibilities to the applicant, except: Outpatient hospital care - ANS-Which of the following is not covered with Medicare Part A? Partial Case Management - ANS-Managed Health Care attempts to contain costs by controlling the behavior of participants in all of the following ways, except: