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79 Cards in this Set

  • Front
  • Back

What type ofreinsurance contract between two insurers involves an automatic sharing of therisks assumed?

Treaty Reinsurance

Mutual insurers paydividends to participating policyowners if the insurer has which of thefollowing?

Divisible Surplus

For insurancepurposes, similar objects which are exposed to the same group of perils arereferred to as

Homogeneous Exposure Units

Which of thefollowing can be defined as "the potential for loss"?

Risk

When must insurableinterest exist for a life insurance contract to be valid?

Inception of the Contract

The following are allelements of a valid contract EXCEPT

Written Evidence

An insuranceapplication requires an applicant to make a full, accurate disclosure of the riskfactor involved. Using this criteria, an insurance policy is considered whattype of contract?

Contract of utmost good faith

What is the insurerresponsible for when an agent is acting within the scope of authority grantedin the agency contract?

Responsible for actsby the producer that are authority only

These are allaccurate statements regarding universal life insurance EXCEPT

Policy loans are not permitted

When would evidenceof insurability be required for a person already covered with a variableuniversal life policy?

The Death Benefit is Increased

What kind of lifeinsurance policy allows a policyowner the choice of investments along withflexible premium payments?

Variable Universal Life

Which statementregarding universal life insurance is correct?

Cash Value Accumulations have a guaranteed minimum interest rate

Which of the following combinations best describe a universallife insurance policy?

A flexible premium deposit fund and monthly renewable monthly terminsurance policy

Which situation is an accelerated (living) benefit rider suitedfor?

Insured expected to be confined to a nursing home for life

A life insurance policy provision that has the potential toreduce the death benefit is called the

accelerated (living) benefit

Which life insurance policy option allows the policyowner tohave coverage equal to the net death benefit of the lapsed policy?

Extended Term nonforfeiture option

In the event ofpremium default, which life insurance provision will use the cash value to keepthe policy in force?

Automatic Premium Loan

Which statementregarding the certificate of insurance is accurate?

Indicates evidence of an employees insurance coverage

Which of these is anaccurate statement regarding the fixed period settlement option on a lifeinsurance policy?

A portion of the payments paid to thebeneficiary comes of the interest calculated on the proceeds of the policy

Which of these is NOTused as selection criteria in the underwriting process of a life insuranceapplication?

National Origin

The interest creditedto the cash values of personally-owned non-qualified annuities is considered

Tax Deferred

A single premiumdeferred annuity sometimes contains a bailout feature. Which statementregarding this feature is correct?

If an interest rate fall below a specific level, the surrender charge iswaived

A life annuityfeature which provides benefit payments for a minimum number of years, no matterwhen the annuitant dies, is called

Period Certain

A large corporationpurchases an accumulation annuity contract where all of the participatingemployees receive certificates of participation. What is this contract called?

Group Deferral Annuity

An annuity'saccumulation period can usually

Continue after the purchase payments stop

Which statement concerning a deferred annuity is correct?

The owner can be the beneficiary, annuitant or neither

Which of thefollowing would most likely purchase an immediate annuity?

Retiree having a lump sum to invest

A life annuity withperiod certain is characterized as

Guaranteeing benefit payments for a statedminimum period of time

The contractualrights that allow the owner of a deferred annuity to surrender the cash valueseveral years before the annuity date are called

Nonforfeiture options

Which of thefollowing is NOT a valid contract exchange?

An annuity exchange for a life insurancepolicy

Which of these statementsabout traditional individual retirement accounts is accurate?

10% penalty is applied to withdraws priorto 591/2

A 55 year oldrecently received a $30,000 distribution from a previous employer's 401k plan,minus $6,000 for income tax withholding. Which federal taxes apply if none ofthe funds were rolled over?

Income taxes plus a10% penalty tax on $30,000

An individualparticipant personally received eligible rollover funds from a profit-sharingplan. What is the income tax withholding requirements for this transaction?

20% is withheld for income taxes

A qualifiedprofit-sharing plan is designed to

Distribute a portion of company earnings to its employees

In an individualretirement account (IRA), rollover contributions are

Unlimited by Dollar amount

An employee requestedthat the balance of her 401(k) account be sent directly to her in one lump sum.Upon receipt of the distribution, she immediately had the funds rolled overinto an IRA. What is the tax consequence of the distribution sent to thisemployee?

Distribution issubject to income tax withholding

Which of thefollowing statements BEST describes the HIPAA portability rules for anindividual who changes from one group medical plan to another?

Reduces or Eliminates any pre-existingconditions excluded under the new plan

The health insurancepremiums paid for by each partner in a partnership is considered to be

100% Tax deductible

Which parties aredirectly involved in a group accident and health insurance contract?

Employer and Insurer

Bert’s spouse passedaway recently. Bert was covered under his spouse’s group family healthinsurance plan but now is covered under COBRA. How much of the active-employeecost may be passed on to Bert for continued coverage?

Maximum of 102%

Inpatient psychiatriccare is covered under Part A Medicare for 190 days per

Lifetime

Which of theseprocedures is NOT designed for ambulatory care centers?

Inpatient Surgeries

Part A Medicareincludes coverage for all of the following services EXCEPT

120 Days of skillednursing facility care

How are the premiumsfor an individually-owned disability income policy treated for tax purposes?

No tax deduction

Prepaid dental plansdiffer from most other types of dental plans in what way?

Closed panel ofdentist can only be used

Under HIPPA rules, amedical plan's pre-existing conditions exclusion may be reduced by

Any period of priorcoverage

John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?

Given written consentby the state insurance regulatory agency

Security laws passedby Congress are enforced by which Federal agency?

Securities andExchange Commission

A significantdifference between HIC's and private commercial accident and health insurers isthat

HICs combine medicalcare delivery and funding in one organization

Alan is an enrolleeof a health maintenance organization (HMO) which uses a gatekeeper system. Ifthere ever comes a time when he needs emergency health services, what should hedo?

Proceed to thenearest Emergency Room

Which type ofdeductible must be satisfied again for each illness or accident in a majormedical plan?

Per-cause

A MET third-partyadministrator may NOT perform which of the following functions?

Marketing of the Plan

A medical feeschedule shows the amount an insurer will pay for a given procedure. Thisamount is considered to be the

Highest amountpayable

A group-ownedinsurance company that is formed to assume and spread the liability risks ofits members is known as a(n)

Risk Retention Group

Under a key persondisability income policy, benefits will be received as

Tax-free income to the business

Jill has a grouphealth plan with an employer that covers employees in more than one state.Which of the following is NOT affected by the state regulatory jurisdictionestablished for this plan?

Continuation of Coverage Under COBRA

Once an HIC hasprovided coverage to enrollees for a period of 2 years, it shall hold an openenrollment period of not less than how many days, at least once during eachconsecutive 12-month period?

30 Days

In regards to theAffordable Care Act (ACA), which of these is NOT a role of a health insuranceexchange?

contact the employerif the employee stops coverage under a plan offered in exchange

Which of thefollowing describes the treatment service of a crown?

Prosthodontist

Which of thefollowing is a syndicate established by a group of insurers to shareunderwriting duties?

Lloyd's organization

Who does TRI-CAREprovide accident and health coverage to?

Military Families

The benefit period ofMedicare Part A begins on the first day the insured

Is admitted into a hospital

Who does a viaticalsettlement broker represent?

The Viator

According to theAffordable Care Act (ACA), under what circumstances would lifetime limits andannual limits be permitted on a health plan or insurance policy?

When coverages are notconsidered essential health benefits

Group dental insurerscan discourage adverse selection by

Limiting the duration of Coverage

According to HIClaws, confidentiality of health information applies to

Information supplied byboth the covered individual and the providers

Scott has a lifeinsurance policy in which the dividends are left with the insurance company.This particular policy may be paid up when the cash value plus accumulateddividends

equal the net singlepremium for the same face amount at the insured's attained age

In what situationcould an insurance policy's coverage be modified?

Applicant is asubstandard risk

Ken is age 65 and has2 years until he receives Social Security retirement income benefits. At hiscurrent age, which is true about Medicare Part A Hospital Insurance coverage?

It is availablethrough application through social security

After the initialenrollment period for Medicare Part B has expired, when may an individualpurchase again?

January through March ofeach year

Larry is about tofile an accident and health insurance claim. Which of the following would makeclaim handling more convenient for him?

Assignment ofBenefits

Who regulates an insurer's claim settlement practices?

State insuranceDepartments

A disability incomeinsurance policy was recently issued with a rating. What does this mean?

Policy owner will becharged an additional premium

Under HIPAA, medicalplan late enrollees may be excluded for pre-existing conditions for a maximumof

18 Months

Kelly purchases ahealth insurance policy issued on a conditionally renewable basis. Theinsurance company has a right to decline renewal of the policy

Reasons Stated in the Contract

A producer workingfor an insurance company may be personally liable for

acts performed which areprohibited in the agency contract

Which of thefollowing is a true statement regarding a Medicare Supplement policy purchasedduring the open enrollment period?

The policy will beissued regardless of health

An insured, age 67,is covered under a disability income policy. What will the insurer require inorder for the insured to continue coverage?

The insured must workfor a stated number of hours per week

An agreement isreached when an insurance contract is formed. Which of the following is NOTconsidered to be an element of an agreement?

Equity