CT Life & Health Insurance Exam 100% VERIFIED ANSWERS 2024/2025 CORRECT STUDY SET, Exams of Business Administration

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CT Life & Health Insurance

Exam 100% VERIFIED

ANSWERS 2024/

CORRECT STUDY SET

Laura added a children's rider to her life insurance policy. What type of coverage was added? Level term With life insurance, the needs approach is used primarily in determining How much life insurance a client should apply for A(n) __________ is a licensee who charges a fee for contracted insurance advisory services. Consultant Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan? Taxes must be paid on 75% of the benefits received The Commissioner is empowered to perform each of the following acts EXCEPT Makes rules that are consistent with those of neighboring states (Monitor insurer solvency, make rules and regulations that are consistent with the laws of CT, monitor insurer premium rates) How are the premiums for an individually-owned disability income policy treated for tax purposes? Not tax-deductible at all

Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends Equal the net single premium for the same face amount at the insured's attained age Which of these is NOT a standard provision in qualified long-term care policies sold in Connecticut? Prior hospitalization (30-day free look period, guaranteed renewability, provide minimum coverage for 12 consecutive months) Accident and health insurance claim handling is made more convenient to the insured by utilizing Assignment of benefits Specialty care is provided by which of the following health maintenance organization (HMO) providers? Neurologist Which of the following facilitates nonresident licensing in the state of Connecticut? Reciprocity agreement To secure authority for soliciting insurance products in the State of Connecticut, an insurance company must secure a certificate of authority from The Connecticut Insurance Commissioner A group health certificate for coverage issued in Connecticut MUST contain a(n) Summary of policy features and benefits Any employee insured under a group life insurance plan is normally Covered with term life insurance Which statement regarding whole life insurance is accurate? Insurance coverage can continue for life

When a producer acts within the scope of his/her contractual authority, which of the following is legally responsible for these actions? The insurer An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before Bringing legal action against the insurer During the sale of a life insurance policy, a producer may provide an incomplete illustration Never Taking a sum of money and decreasing it in size is called Capital liquidation In Connecticut, continuing education courses must be approved by the Commissioner In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange? Contact the employer if an employee stops coverage under a plan offered in the exchange (Offer individual, unique formats for consumers to evaluate different health plan options, certify that a health plan is qualified to be offered on the exchange, resolve and verify an applicant's inconsistent or incomplete information) What type of risk involves the potential for loss AND the possibility for gain? Speculative How long does one premium payment cover a single premium whole life policy? Full life of the policy Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy

Until they become self-supporting Respite Care coverage is typically found in a(n) Long Term Care policy What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period? Subject to market value adjustment A life insurance beneficiary died after receiving only six payments under the policy's life income settlement option. What happens with the remaining balance of the death proceeds? Kept by the insurance company Which of the following is NOT covered by a comprehensive long-term care policy? Acute care (Custodial care, PT, skilled nursing care) Which of the following statements accurately describes the "time limit on certain defenses"? After a stated period of time, claims cannot be denied due to material misrepresentation on the application Rick owns a variable universal life policy and chooses a variable death death benefit option. What will typically happen to the death benefit as a result of this selection? Fluctuate with changes in the cash account Why does Connecticut require insurers to maintain a minimum level of assets? To demonstrate insurer solvency Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons? Net payment cost index

What is the tax treatment of benefit payments for a non-qualified annuity? Benefit payments are always taxable An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true? Applicant has a right to receive a copy of the report Which of these is NOT an advantage of term life insurance? A cash benefit will be provided if the insured is alive at the end of the policy period (The greatest amount of coverage can be provided for the initial premium paid, it can be provided as a rider to another policy, temporary insurance needs can be met) When does a family health policy's coverage for a newborn child begin? At the moment of birth A life insurance producer's underwriting duties may include Seeking additional information requested by the insurance company Tim is in need of surgery, Before being hospitalized, he is referred to an outpatient clinic for diagnostic tests. What is this an example of? Pre-admission testing Which of the following is an example of defamation? A producer who publicly and erroneously announces that an insurance company is insolvent Who typically makes the purchase payments in an individual annuity? Owner Which individual would be best suited for Medicare Supplement insurance? Medicare enrollee The interest credited to the cash values of personally-owned non-qualified annuities is considered

Tax-exempt Which of the following does NOT involve a life settlement transaction? Converting term life coverage to whole life insurance (Inducing life settlement contracts, monitoring life settlement contracts, securing life settlement contracts) How is the insured protected if a payor benefit rider is attached to the life insurance policy? Premium payments are waived in the event the premium payor dies or becomes disabled Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true? The specified benefit amount is a percentage of his wages What is the name of the period of time during which a new employee is ineligible for group health insurance coverage? Probationary period Statements made by an insured on an accident and health insurance application are considered to be Representations If one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission? The commission will likely be shared between the two producers These are all accurate statements regarding universal life insurance EXECPT Policy loans are not permitted (Mortality charge is deducted from the policy's cash value each month, flexible premiums as long as the cost of insurance protection is covered, policy states what percentage of the premium is contributed to the cash value and which pays for the cost of insurance)

Benefits are doubled under certain circumstances stated in the policy Individuals covered with employer-paid group health plans will normally receive tax-free benefits under all of these plans EXCEPT Disability income (HMO, vision, major medical) The free look period provided in a life insurance policy is usually 10 days Which reinsurance contract between two insurers involves an automatic sharing of the risk assumed? Treaty reinsurance Which of the following would be considered a violation of Connecticut insurance law? Failure to remit premium in a timely manner Which of the following statements is NOT true concerning the relationship between group health insurance plans and Medicare? (assuming the business has more than 20 employees) Group health coverage is NOT available for workers over the age of 65 (Group health coverage is available for workers over the age of 65, An active employee's group health plan is primary and Medicare is secondary, unless the employee chooses otherwise, Group health coverage is available to an employee's spouse that also happens to be Medicare-eligible) At what point must a producer give notification to the Commissioner about using an assumed name? Prior to using the assumed name A comprehensive group policy also covers expenses related to vision care. Which of the following is not typically covered under a vision plan?

Cataract surgery (Routine eye exam, corrective vision glasses, corrective contact lenses) What is considered a valid reason for small corporations to insure the lives of its major stockholders? Fund a buy-sell agreement Which of these is NOT a common life insurance nonforfeiture option? Life income annuity (Reduced paid-up insurance, extended term option, cash surrender option) After the extended term life nonforfeiture option is chosen, the available insurance will be Level term for a stated period of time What type of doctor-ordered care assists an individual with performing basic daily activities such as bathing. dressing, and eating? Custodial care A prepaid dental plan has an agreement in place with a network of dentists which Accepts an established amount as payment in full for the dental services rendered A group health plan covers employees in CT, MA, and RI. The state regulatory jurisdiction established for this plan does NOT affect which plan aspect? COBRA continuation of coverage (Required contract provisions, qualifications for eligibility, minimum enrollment percentages) The initial premium for a life insurance policy is typically paid in what way? It is typically obtained by the producer and forwarded to the insurer Which of the following would NOT be appropriate for an immediate annuity?

Loss of sight in one eye (Loss of both hands, loss of hearing, loss of speech) Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider? Insured is expected to remain in a nursing home for life Which of the following causes of disability is NOT covered under CT workers compensation laws? Intentional, self-inflicted injuries that occur at the worksite (Falling down on the job, illness caused by job conditions, strokes that occur on the job) Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective? Date of issuance of the conditional receipt What type of premiums are associated with individual mortgage protection life insurance policies? Level premiums Long-term care policies sold in CT may NOT exclude coverage for Senile dementia A policyowner fell behind on the premium payments of a whole life policy and is now in the grace period. How much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan? Face amount minus the loan balance and past-due premium A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the Highest amount payable Which of these statements reflects an accurate portrayal of Medicare SELECT?

Insured uses preferred providers in exchange for paying lower premiums A(n) _______ insurer operates in the United States but is headquartered outside the United States. Alien Which of these is NOT relevant when determining the amount of personal life insurance needed? Local unemployment rates (Existing life insurance coverage, household income, household debt) Prepaid dental plans differ from most other types of dental plans in what way? Closed panel of dentists can only be used A characteristic of preferred provider organizations (PPO) is If service is obtained outside the PPO, benefits are reduced and costs increase Skilled nursing facility expenses are sometimes covered by _______, but ONLY if the insured was hospitalized prior to entering the facility. Medicare Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility? 100 days Custodial care is normally covered under Long-term care insurance Which of the following must be clearly illustrated in ALL sales material for market value adjusted annuities? The market value adjustment can be either upward or downward Dividends from a stock insurance company are normally sent to Shareholders

The maximum prison sentence given under federal law for unfair and deceptive insurance practices is 15 years Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have? Accidental death and dismemberment An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction? 20% is withheld for income taxes What must be given to a life insurance applicant when the agent receives an application and the initial premium? Conditional receipt In a disability buy-sell agreement, the policies funding the agreement are owned by the Business entity Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed? Incontestable clause Which statement regarding the certificate of insurance is accurate? It indicates evidence of an employee's insurance coverage Qualified long-term care premiums are treated for tax purposes as Tax-deductible to the extent they exceed 7 1/2% AGI In order to contribute to a Health Savings Account (HSA), the applicant must be enrolled in a High Deductible Health Plan (HDHP)

A handicapped child is covered under an individual health policy. If continuation of coverage is needed beyond the policy's age limit, which of the following is required? Proof of incapacity and dependency upon reaching the age limit A certificate of coverage for a group health policy is best described as Proof of coverage for the employee A life settlement _______ negotiates a life settlement between a policyowner and a life settlement provider. Broker ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk Reduction When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as Facultative reinsurance 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 consent by the state insurance regulatory agency Which of the following is generally a form of group credit life insurance? Decreasing term insurance Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existance? Misstatement of age (Fraud, material representation, material concealment)

The policy proceeds would be reduced by the outstanding loan balance What effect does interest income have upon insurance premiums? Decreases premium Which of these is a true statement regarding survivor benefits under a qualified retirement plan? Survivor benefits can only be waived with the written consent of a married employee's spouse A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured Prior to or at the time of signing the application If a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST Disclose that premium payments may need to be resumed depending on actual results Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes? The gain is treated as taxable income and a penalty tax is imposed on the gain For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter COBRA laws In what situation could an insurance policy's coverage be modified? Applicant is a substandard risk A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen? Reduction of premium payment Who is protected with the "other insurance with this insurer" provision? Insurance company

Which statement regarding universal life insurance is correct? Cash value accumulations have a guaranteed minimum interest rate The _______ is responsible for reporting the Commissioner any name or address change of the licensee. Licensee James the producer has sold a life insurance contract to a client without using an illustration, even though his insurer offers one. For this particular transaction, the applicant Must sign a statement that no illustration was provided Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? Nonoccupational coverage Contributions made by an employee to a qualified retirement plan are required to be Subject to a vesting schedule John received a one-time distribution of $50,000 from his modified endowment contract (MEC). Prior to that, the contract's cash value was $150,000, the contract investment amount was $100,000, and the death benefit was $500,000. What percentage of the $50,000 distribution was taxable as ordinary income? 100% A licensee whose name or address changes must notify the Commissioner within _______ days. 30 After a life insurance policy has been in force for _____ year(s), it becomes incontestable. 2 Which of these is NOT considered the responsibility of a producer during the underwriting process?