Exam 11 Wrong Answers Flashcards
What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?
$5,000
Which of the following is one of the requirements for a person to be considered “chronically ill?”
To have a condition that renders the person unable to perform at least 2 activities of daily living
According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventative care services except
Cervical cancer exams for all women starting at age 40
The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is True?
The beneficiary will receive the greater of money paid into the annuity or the cash value
All of the following are personal uses of life insurance except
Buy-sell agreement
When an insurer issued an individual health insurance policy that is guaranteed renewable, the insurer agrees
To renew the policy until the insured has reached age 65
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class
A long term care insurance shopper’s guide must be provided in the format developed by which of the following?
NAIC
If an insurer appoints a producer, which authority must be notified?
Department of Insurance
The paid up addition option uses the dividend…
To purchase a smaller amount of the same type of insurance as the original policy
Employers can reduce health plan costs by coupling a Health Reimbursement Account (HRA) with
A high deductible health plan
Kevin and Nancy are married. Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the following options would be best for Nancy at this point?
COBRA
Which renewability provision allows an insurer to terminate a policy for any reason, and increase the premiums for any class of insureds?
Optionally renewable
A tax sheltered annuity is a special tax favored retirement plan available to
Certain groups of employees
Which of the following will be included in a policy summary?
Premium amounts and surrender values
To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
Who effectuated viatical settlement contracts?
Viatical settlement providers
Which of the following is true about class designation?
Beneficiaries are not identified by name
A person who gives money as consideration for a life insurance policy or interest in the death benefits of a life insurance policy is called a
Viatical settlement purchaser
As it pertains to group health insurance, COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee’s expense
A universal life insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account
Which of the following is not true regarding a flexible spending account?
It does not have limits on contributions
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
COBRA. Applies to employers with at least
20 employees
Which of the following determines the length of time that benefits will be received under the Fixed Amount settlement option?
Size of each installment
A policy will pay the death benefit if the insured dies during the 20 year premium paying period and nothing if death occurs after the 20 year period. What type of policy is this?
Level term
Which of the following are not fundable by annuities?
Death benefits
All of the following statements are true regarding tax qualified annuities except…
Employer contributions are not tax deductible
