Missed Questions Flashcards
Who funds a deferred compensation plan?
Deferred Compensation plans are a non-qualified plan funded by the employer.
What is the possible penalty for anyone who commits fraud?
Five years in prison and a fine of $150,000/or double the value of the fraud if greater.
What is the main goal of Medicare Part C?
Encourage Medicare beneficiaries to join private health plans vs. traditional fee-for-service Medicare programs.
What does a final expense fund pay for?
Expenses associated with: last illness, funeral cost, federal and state death taxes, and any other unpaid taxes, legal fees, court cost, and executor fees.
What conditions must be met to be eligible for a Medicare nursing facility?
- Must be hospitalized for at least three day
- Doctor must certify that skilled nursing is required
- Services must be provided by a Medicare-certified nursing facility.
What time frame is the contestability period for group policies?
2 years
Upon receiving a written health insurance claim, what time frame should the insurer furnish a claim form to the insured?
No later than 15 days after receiving the notice of claim.
How many opportunities does someone have to purchase additional life insurance when they have a ‘guarantee insurability option’?
This option allows the insured to purchase additional insurance at 3-year intervals between the ages of 25 and 40.
Under a fixed-period life insurance settlement option what happens with excess interest?
It increases the size of the payments.
Is the applicant’s signature required on the agent’s report?
No
What conditions are needed for a health insurance policy to take effect?
1) Initial premium paid with application
2) Applicant satisfies all conditions of the conditional receipt
3) Policy is issued as applied for
If these are all met then coverage takes effect as if policy had already been issued.
Benefit periods for short-term disability income policies typically vary by how much?
Six months to two years
Are life insurance policy loans income tax free?
Yes, these types of loans are tax free except in the case of a MEC.
If you surrender a whole life policy for a reduced paid-up policy what happens to the cash value?
Cash value continues to increase.
What’s the longest an insurer may backdate a policy for?
Six months
