Oregon Life/Health Insurance Practice Exam - Q & A|Graded A All of the following are reasons for group insurance termination for dependents EXCEPT a)
... [Show More] The end of the last period for which the employee has made the required premium for dependent coverage passes. b) The overall maximum benefit for major medical benefits is received c) The dependent reaches age 21 d) The dependent fails to meet the definition of a dependent Which of the following statements is INCORRECT concerning Modified Endowment Contracts (MECs)? a) An MEC must always pass the 7-pay test b) A life insurance policy failing the 7-pay test is classified as an MEC c) A primary purpose of the regulations governing MECs was to reduce incentives for the use of life insurance as a short-term investment vehicle. d) A distribution from an MEC may be subject to a 10% penalty if withdrawn prior to 59 1/2 An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change beneficiaries at any time. What type of beneficiary designation does the policy have? a) Irrevocable b) contingent c) primary d) revocable In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer? a) if there are no authorized insurers for a specific type of coverage in this state b) if the insurer needs to investigate insurance claims c) under no circumstances d) if the producer had no knowledge that the company is unauthorized If an insured purchases an insurance policy with a large deductible, what risk management techniques is the insured exercising? a) Avoidance b) Sharing c) Retention d) Transfer only Which of the following is NOT a common exclusion found in most health policies? a) Self- inflicted injuries b) Dental procedure due to birth defect c) Workers compensation claims d) War or act of war Which of the following is NOT a typical type of Long-Term Care coverage? a) Residential care b) Home health care c) Child day care d) Skilled nursing care Which of the following is true regarding examination of company's records? a) Examination of records must be requested be each insurance company b) Examination of records are held every 3 years c) The director has the authority to examine every authorized insurer in this state. d) Only resident insurers are subject to the examination of records With Adjustable Life, the owner can change all of the following EXCEPT a) The premium b) The length of time the coverage will last c) The insured d) The death benefit What type of insurer uses a formal sharing arrangement? a) Stock insurers b) Mutual Insurers c) Fraternal Benefit Societies d) Reciprocal Insurers Which of the following meets the insured's personal needs, and is provided by nonmedical personnel? a) Intermediate care b) Custodial Care c) Skilled care d) Assisted living What advantage does the "recurrent disability" provision provide to the insured under a disability income policy? a) It eliminates the imposition of an elimination period for a separate disability b) It imposes an elimination period for the disability c) It eliminates the imposition of a second elimination period for the same disability d) it provides the insured with lifetime disability benefits Which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity? a) Loading period b) Accumulation period c) Premium building period d) Annuity period Regarding major medical plans a) Higher stop-loss means lower premiums b) Higher stop-loss means higher premiums c) Lower stop-loss means level premium d) Lower stop-loss means lower premium Which of the following is NOT a crucial factor in health insurance underwriting? a) Physical condition b) Morale hazards c) Occupation d) Income The benefits in Medical Expense Insurance are a) Taxable b) Nonexistent c) taxed when they reach $25,000 per year. d) Received income tax free by the individual
Which of the following is true regarding pure life annuity settlement option? a) The beneficiary will receive a refund of the principal b) It guarantees income for a specified period of time c) It provides the highest monthly benefit d) It guarantees that all proceeds will be paid out What is the advantage of an open enrollment period to the insured? a) Coverage will be provided regardless of the insured's health status. b) The insured may change providers as frequently as deemed necessary c) It occurs several times a year for the benefit of the insured d) The premiums for coverage are lower during this period To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan? a) 65% b) 75% c) 100% d) 50% All of the following statements are goals of TRICARE except a) provide faster, more convenient access to civilian care b) Create a more limited system of health care c) Control escalating costs d) Improve overall access to health care for members If an insured decides to reduce the coinsurance amount on her major medical insurance, what can the insured expect? a) A lower lifetime benefit payout b) Stop-loss increase c) A higher monthly premium d) A higher deductible All of the following are true of credit life EXCEPT a) The creditor is the policyowner b) The insured names the beneficiary c) The death benefit cannot exceed the amount of the loan d) The premium payment is included in the loan payment Which of the following individuals would be a likely candidate to purchase a deferred annuity?
a) Someone who needs to start receiving benefit payments within 6 months of the annuity b) Someone who wants to leave the death benefit to the beneficiaries c) Someone who cannot afford life insurance d) Someone who wants to grow retirement funds tax deferred Medicare Part A services do NOT include which of the following? a) Private Duty Nursing b) Post hospital Skilled Nursing Facility Care c) Hospitalization d) Hospice Care Dennis has a cavity. His insurer covers his claim up to a predetermined amount, which is indicated by a fee schedule. Which type of plan does he have? a) Nonscheduled b) Limited c) Procedure-based d) Scheduled If a business wants to make sure it will be able to cover losses due to the disability of its top employee, the business should get which type of insurance? a) Key person disability income b) Group health insurance policy c) Health Savings Account (HSA) d) Business overhead expense In some cases, in order for an insurer to legally disclose privileged information to appropriate sources, the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of information? a) 1 month b) 6 months c) 1 year d) 2 year A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend? a) Payor benefit b) Guaranteed insurability [Show Less]