Insurance and risk management

Question 1

a mutual insurance company is owned by the ___ who are in a position similar to stockholders. they benefit from increased ___.

Answer 1

policyholders

earnings

Question 2

Once the insured has paid the out of pocket maximum, the stop loss provision indicates that the policy will pay__ of any remaining covered expenses

Answer 2

100%

Question 3

Insurance companies can more easily underwrite multiple lives for a single employer and can send a single premium notice. These cost savings are ___ in order to make small group coverage more attractive to purchase

Answer 3

passed through

Question 4

Age __ and up is the appropriate time to recommend LTC insurance

Answer 4

50

Question 5

With ___ the face amount of the policy stays the same, but it is flipped to an extended term insurance policy

Answer 5

extended term insurance

Question 6

A __ clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment.

Answer 6

nonforfeiture

Question 7

Life insurance policyholders can select one of four nonforfeiture benefit options:

the cash surrender value,

extended term insurance,

loan value, and

paid-up insurance.

n/a

Answer 7

n/a

Question 8

__ Insurance is a non-forfeiture option available only on whole life policies, which gives the policyowner the right to a fully paid-up policy for some reduced amount guaranteed death benefit when they are ready to stop paying premiums

Answer 8

Reduced Paid-Up

Question 9

__ life insurance offers flexible premium payments and variable underlying subaccounts that offer more investment options than traditional or universal life insurance

Answer 9

variable universal

Question 10

Universal life insurance offers flexible premium payments, but the cash value is invested in the ___ of the insurance company (mainly fixed income) and variable subaccounts are not permitted.

Answer 10

general account

Question 11

Medicare coverage as an employee is secondary to employer coverage for employers with 20 or more employees TorF

Answer 11

True

Question 12

Split-dollar life insurance

Answer 12

a premium and death benefit sharing arrangement between the employer and the employee. Common with key-executives and typically not offered to all employees

Question 13

Additional life insurance at an extra cost to the employee

Answer 13

supplemental life insurance

Question 14

For a skilled nursing facility, in Medicare, client pays____ for days 1-20. Client pays up to ___ for days 21-100. Medicare pays __ after day 100.

Answer 14

nothing.

co-pay.

nothing.

Question 15

Participating whole life insurance is generally the __ expensive of all life insurance products and has a __ premium. Cash value is in vested in the __ of the insurance company. (in primarily FI)

Answer 15

most expensive.

fixed premium.

general account.

Question 16

If the employer deducts premiums and does not include them in the employee’s compensation, then all benefits received are __ to the employee

Answer 16

taxable

Question 17

Calculate coinsurance amount from replacement cost.

Find percentage of covered as percentage of coinsurance requirement. The client will be responsible for that 11% amount.

Repair cost - deductble. Times % required by client = total out of pocket

n/a

Answer 17

n/a

Question 18

Clients with substantial net worth which may be subject to potential liability loss exposure. A __ policy is designed to protect the insured from various catastrophic personal liability losses.

Answer 18

umbrella policy

Question 19

Affordable Care Act (ACA) mandates that all health insurance carriers in every state that offer coverage to both adults and their dependents must allow dependents to remain on their parents or guardians’ “family” plans until the dependents are __ years old.

Answer 19

26

Question 20

___ insurance can be appropriate when the objective is to preserve the estate, maintain standard of living, and they have ability to purchase additional insurance.

Answer 20

Long Term Care insurance

Question 21

___ is medicare supplement insurance that helps fill gaps in original medicare and is sold by private companies. IT can help pay for copayments, coinsurance, deductibles

Answer 21

Medigap

Question 22

Insurance settlements received as damages on account of personal physical injruies or physical sickness are ___ income.

Answer 22

excluded from