Incorrect Test Qs Flashcards
An individual was denied coverage under Social Security because his disability did not meet the strict definition of total disability used by Social Security. Which of the following would provide disability income coverage?
a. Medicare Supplement Insurance
b. Major Medical Supplement
c. Workers Comp
d. SIS rider
d. SIS rider
Social Insurance Supplement (SIS) riders are used to supplement or replace benefits that might be payable under Social Security Disability. If the insured has been denied coverage under social security, a Social Insurance Supplement or social security rider would be acceptable.
An Employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continues to receive coverage under the plan. Which of the following explains the reason for the continued coverage?
a. A nonforfeiture value is in place.
b. The employee is totally disabled.
c. The employee is an executive covered under the plan.
d. The employee’s health savings account pays for the coverage.
b. The employee is totally disabled.
Most plans provide for a reasonable coverage extension beyond plan termination for totally disabled employees.
All of the following are true regarding the waiver of cost of insurance rider EXCEPT
a. The rider cannot waive the cost of premiums that accumulate cash value.
b. The rider expires when the insured reaches age 60.
c. The rider waives insurance costs in the event the insured becomes disabled.
d. The rider is only applicable to universal life policies.
b. The rider expires when the insured reaches age 60.
Which dividend option will increase the death benefit?
a. Extended term
b. Reduced paid-up
c. Paid up additions
d. Accumulation
C. Paid up additions.
Paid-up additions option uses the dividend to purchase small amounts of the same type of insurance as the original policy. The additional insurance is paid up by the dividend.
Which of the following describes the relationship between a capital sum and a principal sum?
a. Principal sums vary, while capital sums do not.
b. Capital sums vary, while principal sums do not.
c. Principal sums are percentages of capital sums.
d. Capital sums are percentages of principal sums.
d. Capital sums are percentages of principal sums.
Which of the following is NOT a Medicaid qualifier?
a. Age
b. Residency
c. Insurability
d. Income level
c. Insurability
Given on a need basis - blind, disabled, pregnant, over 65, or caring for children receiving welfare benefits.
In life insurance, which of the following is NOT required to have an insurable interest in the insured?
a. The beneficiary
b. The policyowner
c. The insured
d. The applicant
a. The beneficiary
An individual buys a disability policy May 1 with a waiver of premium rider. The insured becomes disabled June 1. It is determined the insured is permanently totally disabled on July 1, and he receives his first benefit payment on July 15. When does the waiver of premium provision start?
June 1. Retroactive to the date of disability once the waiting period has been satisfied.
The Commissioner has determined that a producer is ineligible for appointment by an insurer. The commissioner must notify the insurer within
a. 5 days
b. 10 days
c. 14 days
d. 20 days
a. 5 days
Which of the following is provided by skilled medical personnel to those in need of occasional medical assistance or rehabilitative care?
a. Home health care
b. Skilled care
c. Intermediate care
d. Custodial care
c. Intermediate care
For example, changing a bandage or administering medications.
HMOs are known as what type of plans?
A. service
B. Health savings
C. Consumer driven
D. Reimbursement
a. Service
Provides benefits in the form of services rather than in the form of reimbursement for the services.
All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT
a. Multiple Employer Trust
b. Single employer with 14 employees.
c. An association of 35 people.
d. Labor union.
c. An association of 35 people.
Groups must be together for the purpose of something other than purchasing insurance.
In some cases, in order for an insurer to legally disclose privileged information to appropriate sources, the insured must sign an auth form. What is the maximum time that can pass between completion of form and disclosure of info?
a. 1 month
b. 6 months
c. 1 year
d. 2 yrs
c. 1 year
Life insurance can provide which of the following?
a. Survivor protection
b. Protection against outliving one’s assets
c. Creation of a future liability
d. Liquidation of one’s estate
a. Survivor protection
All of the following are true of annually renewable term insurance EXCEPT
a. The death benefit remains level.
b. The policy must be renewed no matter what happens to one’s health.
c. Proof of insurability must be provided at each renewal.
d. The premium increases each year.
c. Proof of insurability must be provided at each renewal.
This kind of policy can be renewed each year without proof of insurability but premium does increase with attained age.
