Exam Review Missed Questions Flashcards
When an employee covered under a health reimbursement account changes employers, the HRA
Stays with the employer.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
It will increase because the insured will be 5 years older than when the policy was originally purchased.
Who assumes control over an insurance company’s funds and management if it becomes insolvent?
Department of Insurance
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?
As of the application date
A married couple’s retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?
Joint and survivor
An insurer receives a report regarding a potential insured that includes the insured’s financial status, hobbies and habits. What type of a report is that?
Inspection Report
Heath insurance premium rates subject to the Small Group Rate and Renewability Act cannot exceed the index rate for any other class of business by more than
20%
Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service?
Copayment
Which of the following statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy.
Another name for a substandard risk classification is
Rated.
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life – Option A
Which of the following is NOT the purpose of HIPAA?
To provide immediate coverage to new employees who had been previously covered for 18 months
If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?
At the time of policy delivery
Which of the following insurance coverages would be allowed with an MSA?
long term care
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?
It is a percentage of the cash value and decreases over time.
Which of the following is true regarding inpatient hospital care for HMO members?
Care can be provided outside of the service area.
Which of the following best describes a bail-out provision?
It allows the owner to surrender the annuity without a charge.
When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and deductibles?
They carry over from the old plan to the new plan.
The minimum number of credits required for partially insured status for Social Security disability benefits is
6 credits.
When converting group coverage to individual coverage after termination of employment, the individual policy can be any form of insurance EXCEPT
term insurance
What are the 2 types of Flexible Spending Accounts?
Health Care Accounts and Dependent Care Accounts
What type of benefit helps to pay for accidental injuries that are not severe enough to qualify as disabilities?
Medical Reimbursement Benefit
The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that large group health plans must provide primary coverage for disabled individuals under
Age 65 who are not retired.
According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT
Cervical cancer exams for all women starting at age 40.
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment.
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities.
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
Automatic premium loan
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration.
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?
The insured was in compliance with the policy requirements regarding claims.
Which of the following is available to employers of all sizes?
HRA’s
Which of the following is excluded in a dental insurance plan?
Lost dentures
If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?
At the time of policy delivery
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
Insuring clause.
Which of the following is TRUE regarding the insurance amount in a credit life policy?
The creditor can only insure the debtor for the amount owed.
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable.
All of the following are considered to be supplemental benefits under an HMO plan EXCEPT
Preventive services.
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?
The policy will not be affected.
An insured’s long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
$120 a day
