How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits? A. immediately B. 1 year C. 2 years D.
... [Show More] At age 65 - ANSWER-2 years What is the return of premium rider? A. an increasing amount of term insurance that always equals the total of premiums paid up to the current point B. a provision that allows the insured to cancel the policy in the first two years and have premiums refunded C. an increasing amount of term insurance that equals the cash value of the policy at any point in time D. a provision that states the insurer must return any premiums paid during the free-look period - ANSWER-an increasing amount of term insurance that always equals the total of premiums paid up to the current point In a home healthcare benefit, all of the following are eligible expenses EXCEPT A. intermittent part-time nursing care; B. physical, occupational, or speech therapy; C. blood transfusions D. medical social services; - ANSWER-blood transfusions All of the following are classifications of risk EXCEPT A. substandard B. preferred C. declined D. non-nicotine - ANSWER-non-nicotine Which of the following is exempted from the incontestability provision in insurance policies? A. fraudulent misstatements B. pre-existing conditions C. change in health D. changes in the insurance code - ANSWER-fraudulent misstatements A group conversion option may be used in all the following instances EXCEPT A. the termination of the master policy. B. loss of coverage due to loss of employment. C. loss of eligibility on the part of a class of insureds. D. a life-changing event, such as marriage, divorce, or childbirth. - ANSWER-a life-changing event, such as marriage, divorce, or childbirth. Which of the following is characteristic of a non-qualified plan? A. defined vesting schedule B. plan established by the employer C. plan does not meet federal guidelines for tax benefits D. employer contributions are deductible business expenses - ANSWER-plan does not meet federal guidelines for tax benefits What does it mean if a health policy is conditionally renewable? A. Insurer may elect NOT to renew based on the health of the insured. B. Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date. C. Insurer may elect NOT to renew only under conditions specified in the policy. D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims. - ANSWER-Insurer may elect NOT to renew only under conditions specified in the policy. Which of the following is TRUE of an equity-indexed annuity? A. It is a variable annuity. B. It may decrease in value. C. It requires a securities license to sell. D. It has a guaranteed minimum interest rate. - ANSWER-It has a guaranteed minimum interest rate During which period of a Disability Income Policy is coverage effective but during which no benefits will be paid under the policy? A. benefit period B. elimination period C. grace period D. probationary period - ANSWER-probationary period What specific new procedures does the USA Patriot Act require of insurance companies? A. Establish an anti-money laundering program B. Investigate applicants for potential terrorist links C. Report large transactions by charitable organizations D. To take action against employees for failure to implement the Act. - ANSWER-Establish an anti-money laundering program A consumer report used to determine eligibility for insurance may include all of the following EXCEPT A. character. B. reputation. C. credit information. D. medical underwriting exam. - ANSWER-medical underwriting exam. All of the following are TRUE regarding incomplete applications EXCEPT A. the underwriting department will return the application to the agent. B. the applicant will have to wait additional time before coverage begins. C. there will be a delay in the underwriting process. D. the incomplete application can be accepted with the missing information added later. - ANSWER-the incomplete application can be accepted with the missing information added later. Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? A. medicaid insurance B. major medical insurance C. supplemental medical insurance D. long term care insurance - ANSWER-major medical insurance Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility? A. accelerated benefits rider B. assisted living rider C. terminal illness rider D. long term care rider - ANSWER-long term care rider All of the following are characteristics of COBRA EXCEPT A. qualifying events. B. notification statements. C. continuation of coverage. D. change in medical privacy procedures. - ANSWER-change in medical privacy procedures. What type of insurance should a company purchase if it wants to insure the life of its CEO? A. key person insurance B. BOE insurance C. group life policy D. industrial life insurance - ANSWER-key person insurance Which of the following is true about a decreasing term life policy? A. The cash value of the policy decreases over time. B. The face amount reaches zero at policy expiration. C. Premiums decrease over time but the amount of coverage remains constant. D. Commonly sold as a rider to another type of policy to provide an additional death benefit. - ANSWER-The face amount reaches zero at policy expiration. For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following? A. Age B. Cost of care C. Policy value D. Premium cost - ANSWER-Age Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible? A. evidence of insurability B. notice of claim C. proof of loss D. supporting evidence for the claim - ANSWER-notice of claim Managed care plans increase efficiency by all of the following means EXCEPT A. increasing beneficiary cost sharing. B. controlling inpatient admissions and length of stay. C. selectively contracting with health care providers. D. transferring the management of costs to the insureds. - ANSWER-transferring the management of costs to the insureds. Which of the following is an example of a premium payment mode? A. annual premium payment B. payment by check C. automatic deduction of premium D. $200 per policy year - ANSWER-annual premium payment What is the waiver of premium provision? A. In a long term care contract, the premium is waived after the insured has been confined for a specific period of time. B. In a life insurance policy, the insured may request a waiver of premium during times of financial hardship. C. In a disability policy, the premium is waived after the insurance benefit period has been passed D. In a health insurance policy, the premium is waived after the maximum out of pocket has been paid by the insured. - ANSWER-In a long term care contract, the premium is waived after the insured has been confined for a specific period of time. Which of the following amends the Social Security Act to make Medicare secondary to group health plans? A. ADEA B. ERISA C. OBRA D. TEFRA - ANSWER-TEFRA When will a policy pay on a UCR (Usual, Customary, Reasonable) basis? A. When particular benefits are not listed on a payment schedule B. When a surgical procedure is not pre-approved by the insurer C. When the provider charges a different amount than is listed on the payment schedule D. When the treatment is received in a different geographic area than where the insured lives - ANSWER-When particular benefits are not listed on a payment schedule Which one of the following represents an advantage of obtaining a policy loan versus a withdrawal? A. the loan is subtracted from the death benefit and does not require payments B. the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis C. the loan originates from the insurance company, whereas the withdrawal comes from the policy D. the interest on the loan does not have to be paid if the insured dies before the loan is paid in full. - ANSWER-the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis The group conversion option is allowed for all of the following EXCEPT A. termination of the master policy. B. loss of group coverage due to termination of employment. C. upon the loss of eligibility on the part of a class of insureds. D. during the annual benefits enrollment period. - ANSWER-during the annual benefits enrollment period. Which is the primary purpose of Health Reimbursement Accounts (HRAs)? A. To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions. B. To assist covered employees on standard group health insurance plans by using post tax contributions to fund an account to pay medical expenses. C. To assist employees who work for small companies to pay medical expenses on high coinsurance policies. D. To reimburse employees who choose not to participate in the group health coverage provided by their employer. - ANSWER-To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while A. serving in the military B. living overseas C. committing a misdemeanor D. piloting a personal aircraft - ANSWER-committing a misdemeanor [Show Less]