Exam 21 Wrong Answers

Question 1

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?

Answer 1

Adjust the claim benefit to reflect the insurer’s true age

Question 2

An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receives presumptive disability benefits?

Answer 2

Full benefits

Question 3

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called

Answer 3

Class designation

Question 4

Which of the following is incorrect concerning taxation of disability income benefits?

Answer 4

If paid by the individual, the premiums are tax deductible

Question 5

To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?

Answer 5

10 days

Question 6

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Answer 6

Joint Life

Question 7

In an individual long term care insurance plan, the insured is able to deduct benefits the premiums from taxes. What income taxation will be imposed on the benefits received?

Answer 7

No tax

Question 8

The termination of marital property rights may be reversed for all of the following reasons except

Answer 8

The spouse named as beneficiary has obtained or consented to a final decree or judgment of an annulment, divorce or separation

Question 9

The full premium was submitted with the application for life insurance and the policy was issued two weeks later as requested. When does the policy coverage become effective?

Answer 9

As of the application date

Question 10

All of the following are correct about the required provisions of a health insurance policy except

Answer 10

A reinstated policy provides immediate coverage for an illness

Question 11

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis?

Answer 11

Guaranteed

Question 12

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Answer 12

Respond to the consumer’s complaint

Question 13

If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state?

Answer 13

90

Question 14

All of the following are true about group disability income insurance except

Answer 14

Coverage applies both on and off the job

Question 15

Which of the following is true regarding a term health policy?

Answer 15

It is nonrenewable

Question 16

Which of the following statements is not correct regarding Medicare?

Answer 16

Medicare Advantage must be provided through HMOs

Question 17

Which of the following is not true regarding the Life with Guaranteed Minimum annuity settlement option?

Answer 17

It does not guarantee that the entire principal amount will be paid out

Question 18

In order to minimize adverse selection, employer group dental plans may require employees who enroll after they were initially eligible to participate to do all of the following except

Answer 18

Increase benefits for a period of one year

Question 19

At what point must an Outline of Coverage be delivered?

Answer 19

At time of application or upon delivery of the policy

Question 20

All of the following are are considered to be basic benefits of an HMO plan except

Answer 20

Prescription drugs

Question 21

All of the following are requirements of eligibility for Social Security disability income benefits except

Answer 21

Being age 65

Question 22

Which of the following is an example of a limited pay life policy?

Answer 22

Life Paid up at age 65

Question 23

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy’s effective date?

Answer 23

The date of the medical exam

Question 24

Under an extended term nonforfeiture option, the policy cash value is converted to

Answer 24

The same face amount as in the whole life policy

Question 25

An agent misrepresents the details of an insured’s new Insurance contract that will be replacing the current contract. Which of the following will most likely happen?

Answer 25

Suspension of license

Question 26

Under the affordable care act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event?

Answer 26

60 days

Question 27

An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any compartments or deductibles, how much will the excess plan pay?

Answer 27

$5,000

Question 28

Which of the following is not an exclusion in medical expense insurance policies?

Answer 28

Coverage for dependents