Section 18

Question 1

A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ______ of the individual’s adjusted gross income.
A. 5%
B. 6.5%
C. 7.5%
D. 8 %

Answer 1

7.5%

Question 2

One of the most important considerations when replacing health insurance would be the
A. Age of the insured
B. Exclusions on a new policy
C. Occupation of the insured
D. Cost

Answer 2

Exclusions on a new policy

Question 3

XYZ company has applied for group health insurance for its employees. What information with the insurer’s underwriters likely used to determine the appropriate coverage and final premium rate given to the group?
A. Experience rating
B. Credit reports
C. Arrest reports
D. AM Best rating.

Answer 3

Experience rating

Question 4

An insured was injured as an innocent bystander when someone committed a felony. The insurer is
A. Likely to void the policy
B. Partially liable for the loss
C. Not liable for the loss
D. Liable for the loss.

Answer 4

Liable for the loss

Question 5

What happens when an insurance policy is backdated?
A. The policy’s elimination period is waved.
B. The timeframe for reinstating a lapsed policy is extended
C. The policy’s probation period is earlier than the present
D. The policy’s effective date is earlier than the present.

Answer 5

The policies effective date is earlier than the present

Question 6

The IRS allows a taxpayer to deduct medical expenses that exceeds 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule?
A. Long-Term Care insurance premiums,
B. Dread Disease insurance premiums,
C. Travel accidental insurance premiums
D. Individual disability income insurance premiums

Answer 6

Long-term care insurance premiums

Question 7

Which of the following is a requirement for ANY change in an insurance application?
A. Change must be initialed by the agent
B. Change must be initialed by the applicant
C. Change must be approved by the insurer
D. Change must be notarized

Answer 7

Change must be initialed by the applicant

Question 8

In which of the following processes will the insurer oversee the insured’s hospital stay to confirm everything is going according to schedule and that the insured will be released as planned?
A. Precertification review
B. Pretense review
C. Congruent review
D. Concurrent review

Answer 8

Concurrent review

Question 9

Which of these characteristics of an applicant is NOT taken into consideration when assessing risk for Disability coverage?
A. Health of applicant
B. Gender of applicant
C. Number of children
D. Occupation of applicant

Answer 9

Number of children

Question 10

Premium mode is the term used to describe the
A. Premium past due
B. Method of payment
C. Frequency of the premium payment
D. Premium paid

Answer 10

Frequency of the Premium Payment