Life and Health Final Exam

Which of the following premium payment modes will result in the highest total premium?

The usual payment arrangement under a Preferred Provider Organization contract is:

Bob wants a life policy that provides his wife Sue payments for life. If Sue dies before ten years have passed, their daughter Mary will continue to receive the payments until the end of a ten year period. Bob’s choice is the:

Dread disease policies:

In the insurance industry, mode of premium payment refers to:

Which of the following statements is correct?

The fact that Elmo could be injured in an accident after paying just one premium on his medical expense policy and have the insurer pay tens of thousands of dollars in medical expense during his recovery is an example of:

Under which of the following circumstances will the payor rider waive premiums and allow a policy to remain in force?

When Imogene begins receiving payments from her annuity, she can expect those payments to be:

Employer-sponsored health plans may NOT exclude coverage for pregnancy-related care under the:

In a life policy, if the insured has understated his or her age, and the error is discovered after the death of the insured, the company will:

Which of the following qualifies as a compensable injury under Workers Compensation coverage?

An insurance company’s unpaid claim reserve can be defined as:

A company may write insurance in excess of retention limits:

The party normally paying the premiums for the policy and retaining all rights, values, and options is called the:

Which of the following type of care must be based on a doctor’s orders, but may be performed by someone without a medical skills or training:

A qualified retirement plan distribution is considered to be premature if made before the participant is age:

A group medical expense policy must provide a waiting period for maternity benefits on the same basis as for non-maternity benefits if it covers a group consisting of:

Which of the following statements about key employee life insurance is true?

Which of the following individuals could NOT be considered a dependent?

Business overhead expense policies are a specialized form of:

A health or accident policy is permitted to contain a provision that frees the company from liability if the insured is accidentally injured or killed in all of the following circumstances EXCEPT:

Premiums for a variable universal life policy:

What term describes a situation where a policy owner transfers a portion of his or her rights in an insurance policy to another party in order to secure a debt to that party?

Which piece of legislation protects participants in employer-sponsored pension plans from having their funds used inappropriately?

Although some states make allowance for smaller groups, all states define a “true” group as having at least:

All of the following statements about coordination of benefits in group health policies are true EXCEPT:

Six months ago while leaving home for work, Carmelita fell down a flight of stairs at her apartment building resulting in complete paralysis from which she is not expected to recover. Fifty-year-old Carmelita will probably be able to collect disability benefits from:

An interview whereby a person, in an attempt to obtain information about another person, pretends to be someone he or she is not, misrepresents the true purpose of the interview, or refuses to properly identify him or herself, is called:

Under Workers Compensation, a disability that is a permanent physical impairment leaving the individual incapable of performing the previous regular occupation, but capable of performing some other type of work is a:

A self-employed person may deduct the IRS-approved percentage of premiums paid for health coverage if she or she:

What is a life insurance policy dividend?

Buying a map showing the location of an alleged buried treasure is an example of:

An employer may prefer to establish a 501(c)(9) trust over a traditional group health plan because:

With a modified premium whole life contract, premiums:

Under GLBA, a customer must receive an updated privacy notice:

In dental insurance, a closed list:

How many of a company’s health insureds can be expected to become ill or injured is known as:

When a Health Maintenance Organization chooses a limited number of health care providers to provide services to its subscribers, this is known as:

A guaranteed insurability rider normally provides that between ages 25 and 40, additional life insurance may be purchased without proof of insurability:

Which of the following statements about life policy loans is incorrect?

When either the fixed period or fixed amount option is selected for a life policy, the:

Life insurance coverage becomes effective when:

Which of the following is the settlement option of a life policy that provides periodic payments of a specified amount as long as the proceeds plus interest last?

An annuitant has a temporary annuity certain. She dies shortly after the payments start, before the certain period of 10 years has elapsed. Any money left is:

Major medical policies may include a type of deductible wherein the insured pays a new deductible amount for each different event that causes medical expenses to be incurred. This is:

The purpose of a Medicare Supplement or Medigap policy is to:

Most insurance regulation takes place at the:

The stipulation in a health policy that allows the insured to look over the issued policy for a specific number of days and return for a premium refund if desired is called the:

Until the insured reaches age 95, the death benefit must exceed the cash value by a minimum amount in a:

All of the following are generally received free of federal income taxation EXCEPT:

When converting from group to individual life insurance coverage:

Mortality figures are normally developed by studying and interpreting statistics:

Which of the following is NOT considered an unfair claims practice?

Who is responsible for keeping a policy in force after a viatical settlement is made?

A loss of earnings test may be used to determine which of the following?

Select the correct statement about converting from a family health policy to an individual health policy:

Which of the following correctly describes Medicaid?

An applicant for insurance may pay the initial premium and receive a document from the agent indicating that if the policy is issued as requested, coverage begins on the date of the document. What is this document called?

The key factor in rating long-term care policies is:

When a health policy pays hospital room and board expenses on the basis of the actual charges for a semiprivate room or a percentage of the actual charges for the room, this is known as:

Riders that modify the insurance protection that is offered and that permit a company to accept an otherwise unacceptable risk are called:

A standard Medigap policy must provide which of the following?

A lapsed life insurance policy may usually be reinstated:

In order to obtain group insurance without providing evidence of insurability, what do eligible individuals generally have to do?

Which of the following is NOT a federal requirement that must be satisfied by a Health Maintenance Organization (HMO)?

According to Required Provision 2, unless an insured has made fraudulent misstatements, a health policy is incontestable after:

The fact that Elmo could die after paying just one premium on his life insurance policy and still have the entire face amount paid to his beneficiary is an example of:

When Todd is severely injured in an automobile accident and will likely be unable to work ever again, how long, according to Required Provision 7, does he have under normal circumstances to furnish his insurer with a claim for disability benefits?

A policy owner decides to pay life insurance premiums quarterly instead of annually. Select the correct statement:

With respect to life policies, all of the following are subject to federal income tax EXCEPT:

Factors commonly used by health insurers to classify risk include all of the following EXCEPT:

The income period when a surviving spouse does not qualify for Social Security survivor or retirement benefits is called the:

The employees of Gargantua Corporation must each pay a portion of the premium for their group insurance. This means they are members of a:

Which of the following is NOT a test used to determine if a life insurance policy is eligible for tax advantages?

A disability that is presumed to result from the same or a related cause of prior disability is called a:

People most likely to experience a loss are also most likely to want insurance. This is known as:

A certain major medical policy states a maximum number of days for which convalescent care will be paid as well as a maximum number of X-rays that will be paid for under one claim. These are examples of:

All of the following are benefits provided under Part A of Medicare EXCEPT:

Vanessa’s policy on her life names her three brothers as beneficiaries to share equally in the proceeds. If any of the brothers predeceases Vanessa, that brother’s share will be passed on to his children. Vanessa’s beneficiary designation is known as:

The advantage of enrolling in a group health insurance program during the eligibility period is that:

All of the following are alternatives an insurer has when asked to insure a substandard risk EXCEPT:

All of the following statements support the definition of insurance, EXCEPT the:

Nursing home care that is needed because of aging rather than as treatment for a specific injury or illness is generally covered by:

Which of the following describes a “rollover?”

When a convertible term life policy is converted to a permanent policy, the insured:

The income period when a surviving family’s income needs are highest is called the:

Which life insurance calculation method generates income indefinitely?

All of the following would likely be eligible for group health insurance EXCEPT:

What is a cancelable health policy?

Under a market-value adjusted annuity contract, a market value adjustment will be made if:

Employer contributions to a tax-qualified retirement plan are 100% vested:

What happens when an account holder exhausts his or her medical savings account?

A universal life contract expires when:

A lapsed life insurance policy may usually be reinstated:

Health Maintenance Organizations must provide all of the following EXCEPT:

Which of the following is a common exclusion under dental expense insurance?

Paul and Eleanor have a disability income policy that includes a rider that excludes coverage for Paul’s existing diabetes. What rider is attached to this policy?

The main difference between a profit-sharing plan and a pension plan is:

A person in a position of financial trust is a: