Dates, Days, and Stats Flashcards
Fair Credit Reporting Act Penalty
fines ($5,000 max) and/or imprisonment (1 year)
Blackout Period
time after breadwinner dies, during which no SS benefit is payable to spouse. Begins when youngest child reaches age 16 and lasts until spouse reaches age 60
ADandD rider benefit pays if death occurs within
90 days of accident date
Accelerated Benefits Rider benefit pays if death is expected within
24 Months
Free Look provision is usually
10 days
Grace Period for annual premium policies (usual)
31 days following due date
Time of payment of claims is usually
no longer than 60 days
Contributory Group Life requires what percentage to enroll?
75% of eligible employees
Noncontributory Group Life requires what percentage to enroll?
100% of eligible employees
Probationary Period for Group Life
1-12 months
Enrollment Period for Group Life
Usually 31 days
Heath Policy Notice of Claim
20 days after loss
Heath policy Proof of Loss
Within 90 days
COBRA extends coverage for __ if employee is terminated or has reduction of hours.
18 Months
COBRA extends coverage for __ if employee divorce, too old, or death
36 Months
Premium for COBRA continued coverage
102% of original premium (employer does not pay)
OBRA time
29 Months if disabled at time of termination
HIPAA guarantees __ hour hospital stay for new mothers and __ hour stay for C-Section
48 and 96
A disclosure about an investigative report must be sent to applicant within ___ of receiving their request to view the report.
5 Days
Grace Period for monthly premium policies
10 Days
Grace Period for weekly premium policies
7 Days
After how many days is coverage automatically reinstated if insurer has not disapproved?
45 Days
HIPAA states a new employee is not subject to a waiting period if there were less than __ days between jobs with no coverage.
63 Days
LTC policies provide coverage for at least ___
12 Months
The minimum loss ratio for medicare supplement policies is ____.
65%
The max allowable cash value fixed loan rate in MA is ____.
8%
The term of a temporary producers license is ___.
180 Days
Life and Health CE Hours
60 hours within the first 3 years and then 45 hours every three years after that
Backdating is usually no more than ___.
6 months
Settlement Options
- Interest Only
- Fixed Period
- Life Income
- Life Income Period Certain
- Life Income Refund
- Joint and Survivor
Dividend Options (CRAPPO)
- Cash
- Reduced Premium
- Accumulate at interest
- Paid up additions
- Paid up policy
- One year term
Non-Forfeiture Options
- Cash
- Reduced paid-up insurance
- extended term
Maximum number of days Medicare Part A will cover hospital expenses
150 Days
What type of receipt guarantees coverage, even if the insured is found uninsurable?
Binding Receipt
FSA
- pretax employee contributions (salary reductions)
- withdrawals not taxed
- no rollover, spend or lose
The six characteristics of an insurable risk:
- calculable
- affordable
- noncatastrophic
- homogeneous
- accidental
- measurable
Disability Buy-Sell Taxation
non-deductible premiums, tax free benefits
Small employer medical plans may not exclude preexisting conditions from coverage for longer than ____ after the policy’s effective date. (old rule)
6 months
Once issued, a producers license is valid for ___ before CE is required
3 years
The withdrawal rule on annuity cash value is
LIFO
False information that will void an insurance contract
Material Misrepresentations
The three levels of LTC
- Skilled Nursing (24 hour care)
- Custodial Care (help with daily living)
- Intermediate (not 24 hour nursing)
Required Provisions in a LI Policy
- misstatement of age
- reinstatement
- grace period
A producer must report any administrative action taken against him to the commissioner within ___
30 days
A single plan that covers the employees of two or more UNRELATED employers
MEWA
Reinsurance Company can accept risks in 2 ways
Facultative (each risk at a time)
Treaty (all risks of a type at a time)
Short-Term DI benefit period
6 months - 2 years
SIMPLE Plans are set up for companies with ___ or less employees
100
Risk Retention Group
Mutual Insurance Company formed to insure people in the same business/industry
Free Look for Medicare Supplement and LTC
30 Days
Premiums are tax deductible to a business for ______ because they are considered part of the employee’s compensation
Executive Bonuses
Life insurance owned by insured is included in the estate for valuation purposes. True or false?
True
Renewable term policy’s premiums rise with each renewal based on…
Age
Gross Premium=
Net Premium + Expense
Death benefit it typically paid within
60 Days
Punishment for obtaining payment through fraudulent representation
At least $100 fine (no more than $1,000) and no more than 6 months in prison
Medicare part A: Skilled Nursing Facility follows a hospital stay of at least
3 days
Medicare Part A: Skilled Nursing Facility Coverage Days
100 days total
Day 1-20 is paid 100% by medicare
Day 20-100 has daily co pays by patient
Medicare Part A: Excluded
- first 3 pints of blood
- private duty nursing
- non-medical services
- intermediate care
- custodial care
Net Premium=
Mortality - interest
Disability Notice of Claim if disability is expected to last for at least 2 years (continuing disability)
6 months
The group conversion option stipulates coverage will continue for
31 days
