Arkansas Health and Accident Practice Exam

Arkansas Health and Accident Practice Exam $10,000-ANS-Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? $50 $5,000 $10,000 $15,000 100% of his health insurance costs can be deducted from his gross income - ANS-Owen is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year? 50% of his health insurance costs can be deducted from his gross income 75% of his health care costs can be paid with pre-tax income 100% of his health insurance costs can be deducted from his gross income 100% of his health insurance costs can be paid with tax credits 15 days - ANS-Once a policy has been reinstated, the insured MUST wait what amount of time before coverage for sickness is covered? 45 days 15 days 10 days 3 days 180 days - ANS-An Arkansas temporary producer license may be issued for a period not to exceed: 30 days 45 days 90 days 180 days 24-ANS-A licensee who is required to take continuing education must complete hours of continuing education coursework? 20 24 30 34 6 months - ANS-How long can an insurer exclude coverage for a preexisting condition on a Medicare Supplement Policy? 6 months 12 months 18 months 24 months 80% - ANS-How much does Medicare Part B pay for physician fees? 40% 60% 80% 100% A contract that requires certain conditions or acts by the insured individual - ANS-Which of the following BEST describes a conditional insurance contract? A contract that requires certain conditions or acts by the insured individual A contract that has the potential for the unequal exchange of consideration for both parties A contract where one party "adheres to the terms of the contract A contract where only one party makes any kind of enforceable contract A paid premium - ANS-Which of the following is an example of the insured's consideration? Insurer's promise to pay benefits A paid premium Legal purpose Intent A person's health claim information - ANS-HIPPA considers which of the following as "individually identifiable health information"? A person's employment history A person's net income A person's hire date A person's health claim information accept payment based upon a defined Medicare schedule as payment in full - ANS-A medical provider that accepts Medicare Assignment must accept payment based upon a defined Medicare schedule and bill the insured for any difference accept payment based upon a defined Medicare schedule and negotiate any excess fees accept payment based upon a defined Medicare schedule and bill no more than 15% of the excess charges accept payment based upon a defined Medicare schedule as payment in full An inflation protection feature - ANS-Under long-term care insurance, which of the following MUST an insurer offer to each policyowner at the time of purchase? A decrease in annual benefit levels Lifetime minimum benefit levels An inflation protection feature Minimum benefit levels An S-Corp Owner with a greater than 2% share - ANS-Which of the following is INELIGIBLE to participate in a Section 125 Plan? Key Employee in a C-Corp Highly Compensated Employee in an S-Corp A C-Corp Owner with a greater than 2% share An S-Corp Owner with a greater than 2% share any person, corporation, association, or society that writes insurance contracts - ANS-An insurer is best described as: individual, firm, limited liability company, or corporation which, for a fee, advises anyone as to their investment needs individual, firm, limited liability company, or corporation which, for a fee, advises anyone as to their insurance needs. any person, corporation, association, or society that writes finance contracts any person, corporation, association, or society that writes insurance contracts As a broker - ANS-If an agent has a combined agent/broker license, and recommends a particular insurer to a customer in which he/she is not appointed, in what capacity is the agent acting? as a broker as an agent as an adjuster as an underwriter assisted living - ANS-Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? Nursing home Assisted living Congregate housing Custodial residence At the time of application - ANS-According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge Because dividends are considered to be a return of premium - ANS-Why are dividends from a mutual insurer not subiect to taxation? Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium Bronze, Silver, Gold, Platinum - ANS-What are the levels of coverage as defined by the Affordable Care Act? 1st, 2nd, 3rd, and 4th Bronze, Silver, Gold, and Platinum Substandard, Standard, Preferred, and Premium PPO, HMO, POS, and MET change of occupation - ANS-Which of the following is NOT a required provision in an accident and health insurance policy? legal actions grace period change of occupation reinstatement changes made by the producer - ANS-All of the following are included as part of a contract in the entire contract provision EXCEPT the riders application changes made by the producer policy