Life and Health Insurance Exam Questions and Answers, Exams of Nursing

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LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Typically, Long-Term Disability benefits are coordinated with which benefit plan? - correct answer Social Security The focus of major medical insurance is providing coverage for - correct answer medical and hospitalization expenses An insured under a Major Medical expense plan with a zero deductible and 80/20 coinsurance provision files a $1,000 claim. How much of this claim is the insured responsible for? - correct answer $ because this policy has a zero deductible, the insures is only responsible for the 20% coinsurance on this claim, or $ An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs $25, of covered losses. How much will the insured pay? - correct answer $5, Which type of plan would be the most appropriate for an individual on Medicare and concerned that Medicare will NOT pay for charges exceeding the approved amount? - correct answer Medicare supplement Plan F When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? - correct answer when contribution or participation rules have been violated What does the word "level: in Level Term describe? - correct answer the face amount A non-contributory health insurance plan helps the insurer avoid - correct answer adverse selection because all eligible employees are usually covered, non-contributory plans are desirable from an underwriting standpoint because adverse selection is minimized. To qualify for a resident producer license in the state of Michigan, an individual - correct answer must complete the required pre-licensing education within 12 months of license application Under an expense-incurred individual health policy, what is the MAXIMUM length of time after issuance of the policy that an insurer can exclude coverage for a pre-existing condition? - correct answer 12 months pre-existing conditions may be excluded for a maximum of 12 months from the date of enrollment.

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S An insured has a health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses. This list is called a - correct answer benefit schedule benefits schedule set predetermined limits or maximums on how much money and insured can be reimbursed for a covered loss. Who is the individual paid on a fee-for-service basis? - correct answer Provider Which of the following is NOT an illegal inducement? - correct answer Giving the insured an article of merchandise printed with the producer's name costing $ $5 or less of tokens or merchandise to applicants is allowed. Making a statement that is false or maliciously critical of the financial condition of an insurer is known as - correct answer defamation Which of the following is NOT a required provision in an accident and health insurance policy? - correct answer change of occupation the change of occupation provision is considered an OPTIONAL provision Which of these statements about Medicaid is CORRECT? - correct answer Funded by federal, sate, and local taxes Medicaid is funded by federal, state, and local taxes but is administered by each state. All of these are considered key factors in underwriting life insurance EXCEPT - correct answer Marital Status Correct: tobacco use, health history, age The time limit for filing claim disputes is addressed in which provision of an accident and health policy? - correct answer legal actions All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT - correct answer Health reimbursement Arrangement plan employers contribute to health reimbursement Arrangement planz (HRA's), not employees.

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Which of the following gifts from a producer would NOT be considered rebating? - correct answer $5 pen A producer quoting life insurance may give an applicant an article of merchandise having an invoice value of $5.00 or less. Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. - correct answer 20 Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability? - correct answer own occupation the "own occupation" definition of total disability requires that the insured be unable to perform the insured's current occupation as a result of an accident or sickness. Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? - correct answer Human life value approach The human life value approach predicts an individual's future earning potential and determines how much of that amount would be devoted to dependents. Index whole life insurance contains a securities component that acts as a(n) - correct answer hedge against inflation Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose? - correct answer Guaranteed lifetime withdrawal benefit The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures that the income benefit will be paid for life without actually annuitizing the contract. Which of these factors would an insurer consider when determining whether to accept a group life plan? - correct answer average age and insurer would consider the average age when determining whether to accept a group Life Plan.

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes - correct answer the entire insurance contract between the parties The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid - correct answer over insurance When an insurance licensee changes his or her address under the Michigan Insurance Code, who MUST be notified? - correct answer the commissioner of the Department of Insurance and financial services (DIFS) Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this? - correct answer Child term rider A child term rider is a level term insurance that can be added to an existing policy. The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. - correct answer 1 How many employees must an employer have for a terminated employee to be eligible for COBRA? - correct answer 20 Which of the following policies does NOT build cash value? - correct answer Term CORRECT: straight life, endowment, variable life Which type of annuity stops all payments upon the death of the annuitant? - correct answer Life annuity The type of annuity in which all payments cease upon the death of an annuitant is referred to as a life annuity. Under the subrogation clause, legal action can be taken by the insurer against the - correct answer responsible third party Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered - correct answer Noncancellable A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances.

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Coordination of Benefits regulation applies to all of the following plans EXCEPT - correct answer preferred provider organization plan CORRECT: group vision plan, self-funded group health plan, group health plan A spouse and child can be added to the primary insured's coverage as what kind of rider? - correct answer Family term Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay? - correct answer $ In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied. In order to save on premiums, a Life Insurance policy can legally be backdated up to - correct answer 6 months Statements made by an insurance applicant on an application are considered to be - correct answer representations To receive proceeds from a death benefit, a minor - correct answer must have an appointed guardian In the interest of protecting the assets of a minor, state law requires that a guardian be appointed to administer the proceeds payable to the minor child. Which of the following services MUST be provided by HMO plans? - correct answer Home health care Home health services is an HMO mandatory benefit in Michigan. The unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation is called - correct answer twisting In determining whether a pre-existing condition applies, the enrollee CANNOT have more than how many days' gap in health insurance? - correct answer 63 A business will typically use which type of life insurance to cover their employees? - correct answer Group policy

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences? - correct answer 60 Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? - correct answer $4, In this situation, Ron may increase the face value of his policy by $4,000. $100,000 X .04 = $4,000. When an accident and health policy requires payment of an additional premium to provide coverage for a newborn, how many days after the birth is the first payment due? - correct answer 31 Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this? - correct answer Equity index whole life A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called - correct answer universal life What is issued to each employee of an employer health plan? - correct answer Certificate Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have? - correct answer Calendar-year deductible A calendar-year deductible is paid before any benefits are paid in a calendar year. An insurer would be committing Unfair Discrimination if coverage was denied based upon - correct answer marital status A licensee who is required to take continuing education MUST include how many ethics coursework hours? - correct answer 3 A licensee is required to take 24 hours of continuing education every two years. Of the 24 hours, 3 must be in ethics Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a(n) - correct answer Guaranteed insurability rider

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? - correct answer the family's Financial objectives if the income earner were to die or become disabled Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires, - correct answer the protection ends When the insured gives birth, coverage for eligible newly born children consists of coverage of injury or sickness including - correct answer birth abnormalities Which of these is NOT considered to be a purpose of an annuity? - correct answer Annuities are intended to create an estate CORRECT: annuities are indented to liquidate an estate, annuities are intended for the tax-free growth of principal, and annuities are intended to distribute accumulate principal What is the purpose for having an accelerated death benefit on a life insurance policy? - correct answer it allows for cash advances to be paid against the death benefit if the insured becomes terminally ill Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? - correct answer can be converted to permanent coverage without evidence of insurability Life insurance policies will normally pay for losses arising from - correct answer commercial aviation Medical Expense Insurance would cover - correct answer an injury occurring at the insured's residence A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) - correct answer optional renewability clause An optional renewability clause allows an insurer the unrestricted right to terminate coverage at any anniversary or at any premium due date. Which of these is NOT considered to be a risk factor in life insurance underwriting? - correct answer Number of children CORRECT: health history, hobbies, occupation

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Which of these is NOT a characteristic of the Accelerated Death Benefit option? - correct answer the benefit can be offered as a writer and a specific extra cost or may be at no cost CORRECT: the face amount and policy premium are not affected by the payment, before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness, there may be a dollar amount on the maximum benefit The branch of dentistry which deals with the replacement of missing parts is called - correct answer Prosthodontics Prosthodontics is the branch of dentistry concerned with the design, manufacture, and fitting of artificial replacements for teeth and other parts of the mouth. Under long-term care insurance, which of the following MUST an insurer offer to each policyowner at the time of purchase? - correct answer An inflation protection feature How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company? - correct answer With a usual, customary, and reasonable fee Which of the following provides Medicare supplement policies? - correct answer Private insurance companies Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage? - correct answer May 30 The "effective date" is the health insurance coverage start date. A producer MUST be appointed by the insurer within how many days from the date the agency contract application is submitted? - correct answer 15 Which of the following is a reinstatement condition? - correct answer proof of insurability A policyowner may change two policy features on what type of life insurance? - correct answer adjustable life adjustable life allows the policyowner to change to policy features: premium and face amount. A notice of cash surrender value must be sent to a Universal Life policyowner - correct answer at least annually

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Which of the following does Coordination of Benefits allow? - correct answer allows the secondary payer to reduce their benefit payments so no more than 100% of the claim is paid Small employer group coverage is NOT required to be renewed in each of the following circumstances EXCEPT - correct answer Number of claims exceed threshold CORRECT: intentional misrepresentation, noncompliance with minimum participation requirements, small employer insurer no longer offers that type of coverage All of these are situations that allow the insurer to NOT renew small employer group coverage EXCEPT "Number of claims exceed threshold". Tom has a home health care benefit and is confined to his home. Which of these benefits is NOT typically covered? - correct answer Full-time nursing care Home health care is care provided in the insured's home, usually on a part-time basis. Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage? - correct answer integrated deductible All of these are typically sources of underwriting information for life or health insurance EXCEPT

• correct answer Disclosure authorization response CORRECT: Consumer reports, Medical Information Bureau (MIB) reports, Attending physician's statement (APS) Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? - correct answer Accumulation period Under Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as - correct answer loss of income Which of the following individuals is REQUIRED to be licensed as an insurance counselor in the State of Michigan? - correct answer A person providing insurance advice to a person or business for a fee A licensee can disclose a consumer's policy account number to all of the following EXCEPT a - correct answer nonaffiliated third party

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S CORRECT: member in an affinity program that was identified to the consumer upon entering the program, service provider marketing on behalf of licensee, consumer reporting agency. What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - correct answer No tax payment needed Employer-paid contributions to Health Savings Accounts are tax-free to the employee. A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is committing which of the following violations? - correct answer Misrepresention what is the primary reason for buying an annuity? - correct answer Provide future economic security A common exclusion with Vision plans is - correct answer lasik surgery INCLUDED: eyeglass frames, the examination, contact lenses In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following EXCEPT - correct answer additional premiums CORRECT: loss of earnings, out-of-pocket expenses, repair and replacement costs All of these are considered a financial loss under Chapter 45 of the Michigan Insurance Code EXCEPT for "additional premiums". Which policy feature makes a universal life policy different from a whole life policy? - correct answer A flexible premium schedule An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim. - correct answer 15 A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) - correct answer guaranteed insurability rider 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? - correct answer Concurrent review

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at - correct answer 60% of the benefit 60% of an income benefit is taxed to the employee because 60% of the premiums paid come from the employer. Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the - correct answer employees waiting period for coverage of a pre-existing condition can be reduced under the new employers Health Plan The election of COBRA for continuation of health coverage will - correct answer maintain the same coverage and increase premium Continuation of coverage under COBRA results in the same coverage with increased premiums up to 102% of prior premium. What activity does NOT require an insurance producer's license? - correct answer Underwriting CORRECT: soliciting, negotiating, selling Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be - correct answer $500, In this situation, the death benefit would be the $500,000 face amount. A rehabilitation benefit is intended to - correct answer prepare the insured to return to employment what amount will be paid under a policy where the insured misstated his/her age? - correct answer An amount the premium would have purchased at the correct age An example of naming a beneficiary by class would be - correct answer to the children born of my union with the Ned Jackson In group health care, what is the purpose of the coordination of benefits provision? - correct answer determines what is paid by the primary and secondary insurers in the event of the claim

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Which of the following statements is NOT true regarding a Critical Illness Plan? - correct answer coverage is limited to a single devastating disease CORRECT: pays a lump sum to the insured upon the diagnosis of a critical illness, the insurer may have a list of critical illnesses they will cover, also known as Specified Disease Plans Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate Company pension plan. What kind of annuity is this considered? - correct answer qualified retirement annuity Which of these is considered to be a Lving Benefit option in a life insurance policy? - correct answer accelerated death benefit a tax-free section 1035 exchange of a life insurance policy to a different policy is permitted if it occurs - correct answer from insurer to insurer and no cash is received by the policyowner the Internal Revenue Code (IRC) enables a tax-free section 1035 exchange of a life insurance policy to a different policy if it occurs from insurer ensure and the policyowner does not receive any cash. which of the following is required to be licensed as an insurance producer? - correct answer a business entity soliciting insurance ABC Insurance Agency is entering each applicant who purchases insurance through their agency into a drawing to win a free trip. This is an unlawful Insurance practice known as - correct answer illegal inducement let and then an employer-sponsored group accident and health plan, a master contract is issued to the - correct answer employer if the annuitants dies before the annuity start date, - correct answer the premiums paid plus interest earned will be given to the beneficiary With a scheduled Dental policy, how are covered expenses paid? - correct answer benefits are limited to a specific maximum dollar amount per procedure how long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security total disability? - correct answer 12 months which of the following protects the policyowner from a misrepresentation caused by an innocent mistake? - correct answer incontestable clause

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S The Entity that has power to revoke a producer's insurance license is the - correct answer Department of Insurance and financial services (DIFS) who has the option to renew a small employer Health Plan? - correct answer employer a small employer carrier that offers health coverage in the small employer Group market shall renew or continue to enforce that plan at the option of the small employer. when does an immediate annuity begin making payments? - correct answer after the first premium has been paid A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of $75. If the insured has previously met her deductible and receives a bill for $175, how much will the insurer pay? - correct answer $ because the insured has previously met her deductible, the eligible expenses for a claim is the entire $175. The insurance company pays 80% of $175, or $140. when are group disability benefits considered to be tax-free to the insured? - correct answer when the recipient pays the premium converting a group plan to permanent life insurance requires - correct answer the conversion being applied for within 31 days of termination the Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - correct answer insurance sales calls CORRECT: Charities, political organizations, surveys ____________ is NOT an element of a valid contract. - correct answer Taxable income. Disability insurance benefits from a group policy paid for by an employer is considered taxable income. a Medicare supplement basic benefit is - correct answer the first 3 pints of blood per year James is the insured on a life insurance policy you were his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? - correct answer the death benefit paid will be what the premium would have purchased at the correct age

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? - correct answer taxable income disability insurance benefits from a group policy paid for by an employer is considered taxable income. in the state of Michigan, properly filed Health claims that are not timely paid require the insurer to pay simple interest from a date 60 days from satisfactory proof of loss at the rate of - correct answer 12% per annum which form of insurer has shareholders? - correct answer stock company the deeds and actions of her producer indicate what kind of authority? - correct answer apparent what happens to interest earned if the annuitants dies before the payout start date? - correct answer it is taxable premiums paid that exceeds 7.5% of an insured's Adjusted Gross Income (AGI) are tax- deductible when paid for which of the following plans? - correct answer qualified long-term care plan a renewable term life insurance policy allows the policyowner the right to renew the policy - correct answer without producing proof of insurability the acceptance of the credit Life Application requires the submission of a Certificate of Insurance to the insured Within ______ days. - correct answer 30 according to the Michigan Insurance Code, which of the following MUST a producer do when replacing a Life Insurance policy? - correct answer submit to the replacing insurer a list of all life insurance policies or annuity contracts proposed to be replaced the waiting period for disability insurance policy - correct answer excludes payments for a short-term illness or injury waiting period = elimination period all of these are valid policy dividend options for life insurance policy owner EXPECT - correct answer accumulate without interest CORRECT: cash outlay to the policyowner, reduction in policy premium buy additional insurance coverage

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S people with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called - correct answer adverse selection when can a life policy no longer be canceled for non-fraudulent Miss statements after its date of issue? - correct answer 2 years the contestable period for a life policy in Michigan is 2 years. variable life insurance and universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? - correct answer policyowner has the right to select the investment which will produce the greatest return Bob and Tom start a business. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Eventually, they retired and dissolved the business. Bob dies 12 months later. The policies continue in force with no change. Both partners are still a married at the time of Bob's death. in this situation, who receive Bob's policy proceeds? - correct answer Tom insurable interest only has to exist at the time of the application, not at the time of the claim. Being there was no change in beneficiary prior to Bob's death, Tom was still receive the policy proceeds. upon receiving a producer complaint, the Commissioner may immediately - correct answer issue a cease-and-desist order a producer's fiduciary responsibility includes which of the following activities? - correct answer recording the receipt and distribution of premiums due to an insurer an agent show use reasonable accounting methods to record funds received in his or her fiduciary capacity including the receipt and distribution of all premiums do each of his or her insurers. all of the following occurrences may result in license revocation EXCEPT - correct answer producing in an adequate amount of new premium CORRECT: having been convicted of a felony, forging another's name to an application for insurance, failing to meet court-ordered child support obligations

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S a proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment - correct answer indicates a pre-existing condition for what purpose is a life insurance application backdated? - correct answer to reduce the premium what is the name of the provision which states that a copy of the application must be attached to the policy when issued? - correct answer entire contract a renewable term life insurance policy can be renewed - correct answer at a predetermined date or age, regardless of the insurance health Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE? - correct answer net death benefit will be reduced if the loan is not repaid a life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - correct answer fare-paying passenger CORRECT: pilot of personal airplane, suicide, War the above may not be covered or have restrictions. which of the following signatures is not required on an individual insurance application? - correct answer insurer Which of the following decisions would a Health Savings Account (HSA) owner NOT to be able to make? - correct answer the amount contributed by the employer CORRECT: the amount contributed by the owner, the underlying account Investments used, the medical expenses paid for by the HSA an individual with a Health Savings a Account (HAS) can make all of these decisions except how much the employer will contribute. which of the following is NOT included under health benefit plan? - correct answer Hospital Indemnity plan

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S INCLUDED: major medical policy, basic Hospital policy, surgical expense policy A Modified Endowment Contract (MEC) is best described as - correct answer a life insurance contract which accumulates cash value is higher than the IRS will allow a guaranteed issue life insurance policy has no - correct answer medical underwriting which type of business insurance is meant to cover the cost of continuing to do business while the owner is disabled? - correct answer business overhead expense policy which of the following is an annuity that is linked to a market-related index? - correct answer equity-indexed annuity producer commissions may NOT be paid to - correct answer licensed producers not appointed by an insurer CORRECT: licensed and appointed producers, licensed and appointed producers who are sharing commissions, non-resident producers Elizabeth is the beneficiary of a life insurance policy. She's receiving the death benefit and payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen? - correct answer fixed amount which of the following is an example of the insured's consideration? - correct answer a paid premium in the state of Michigan, a licensed producer - correct answer represents the insurer which of these would NOT considered a presumptive disability? - correct answer loss of a leg or arm CORRECT: loss of vision and speech, loss of hearing, loss of leg and arm in Michigan, a small employer is comprised of - correct answer 2 to 50 employees which of the following would be considered a possible application and contract policy holder for group health benefits? - correct answer employer an employer would be a possible application and contract policyholder of a single Master contract or Master policy for group health benefits.

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? - correct answer Assisted Living Tim has a health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500? - correct answer $ in this situation, the insured will pay $500 deductible plus $200 coinsurance = $700. $1500-$500=$ $1000×20%=$ $500+$200=$ which of the following is a requirement for ANY change in an insurance application? - correct answer change must be initialed by the applicant what does the Consolidated Omnibus Budget Reconciliation act COBRA of 1985 allow an employee to do? - correct answer in the event of an employment termination, group health insurance can be kept at the employee pays the when a decreasing term policies purchased, it contains a decreasing death benefit and - correct answer level premiums major medical expense Plants provide coverage for each of the following EXCEPT - correct answer work-related injuries CORRECT: medically necessary surgery, diagnostic tests, blood in urine lab screens a form of medical health insurance covering the treatment and care of gum disease is called - correct answer Dental expense insurance in what form do disability income policies typically pay benefits? - correct answer periodic income which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? - correct answer risk avoidance health insurance involves two parents, accident and _______ - correct answer sickness continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician is called - correct answer skilled nursing care in what part of an insurance policy are policy benefits found? - correct answer declarations

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all the basic information the policyholder needs to know. what type of policy would only provide coverage for specific types of illnesses (cancer, stroke, Etc)? - correct answer dread disease insurance Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds - correct answer will no longer provide Insurance protection which of the following is NOT a common exclusion for medical expense policy? - correct answer physical therapy CORRECT: Act of War, on the job injury, self inflicted injury The Limited period of time given to all members to sign up for a group health plan is called the - correct answer enrollment period Amy has a group medical policy through him player with a $500 deductible and the 90% coinsurance provision. She encourages $1,500 in covered Health Care Services. How much will her group insurance carrier pay? - correct answer $ in this situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied. Kurt is an active-duty service man who was recently killed in an accident while home on leave. Which military service exclusion cause would pay upon his death? - correct answer Results the results Claus States the insurer is excused from paying the amount only the death as a result of War. the unfair trade practice of using threat or Force to restrict fair trade in the transaction of insurance is called - correct answer intimidation Preferred Risk policies with reduced premiums are issued by insurance companies because the insured has - correct answer better than average mortality or morbidity experience in a long term care policy, activities of daily living (ADL's) can be each of the following EXCEPT - correct answer talking

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S CORRECT: Dressing, transferring, feeding oneself a producer who knowingly submits a FALSE statement in support of a claim.may be found guilty of - correct answer fraud who were Keogh plans designed to provide pension benefits for? - correct answer the self- employed A policyholder's unmarried child is incapable of self support due to physical disability. the child is provided medical care coverage under the parent's policy - correct answer until policy term with proof of incapacity written proof of disability and dependcy is required to prove a mental or physical handicap for a dependent child. All of the following are characteristics of a Group Life Insurance Plan EXCEPT - correct answer individual underwriting CORRECT: group underwriting, master contract, probationary period All of the following statements correctly describe the purpose of Social Security EXCEPT - correct answer it provides a source of income for a meaningful standard of living during retirement CORRECT: It provides havoc protection against financial problems accompanying death, disability and retirement, it augments a sound personal insurance plan, it provides a time in survivor benefits to a worker and the workers family the authority granted to a licensed producer is provided via the - correct answer law of agency according to the law of agency, the producer/agent represents the principal/insurer and is guaranteed actual, implied and apparent authority to act on behalf of the insurer. the law of agency makes the principal responsible for these acts of the agent. All of the following riders can increase the death benefit amount EXCEPT - correct answer waiver of premium CORRECT: Cost of living, accidental deathrider, guaranteed insurability

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S an insurer must furnished to a claimant forms for filing proof of loss within _____ days upon receiving a notice of claim. - correct answer 15 which of these is not subject to income taxation under a modified endowment contract (MEC)?

• correct answer death benefit CORRECT: loan against the cash value, policy withdrawal, policy dividend which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? - correct answer endowment policy an example of a tax qualified retirement plan would be a - correct answer defined contribution plan which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? - correct answer interest-only CORRECT: reduced paid up insurance, extended term insurance, cash surrender limited payment whole life policy provides - correct answer lifetime protection premiums on limited payment whole life insurance or paid for a limited number of years, but the benefits last a lifetime. under and I'm qualified annuity, interest this text after the - correct answer exclusion ratio has been calculated the taxable and non-taxable portions of annuity payments are determined by the exclusion ratio. how are annuities given favorable tax treatment? - correct answer gains are taxed at distribution all the following are considered appropriate uses of life insurance for business purposes EXCEPT
• correct answer protecting the business by covering entry-level employees with life insurance CORRECT: attracting quality employees by offering a group Life Plan, funding and entity buy-sell agreement, protecting the business by covering team plays with life insurance

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S Shirley has a Medigap policy, which is designed to pay costs associated with - correct answer Medicare Parts A & B what is the purpose of the medical information Bureau (MIB)? - correct answer to help Underwriters evaluate risk the IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule?

• correct answer long-term care insurance premiums which of these annuities require premium payments that vary from year to year? - correct answer flexible premium deferred annuity which of the following is considered to be an alternative to a life settlement? - correct answer accelerated death benefit Rider Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates the $50,000 and the face amount becomes $350,000. What kind of policy is this? - correct answer universal life policy which annuity payout option allows the policyowner to choose a predetermined number of benefit payments? - correct answer period certain the double indemnity provision in a life insurance policy pertains to an insurance death caused by an - correct answer accident call the following are examples of a business continuation plan EXCEPT - correct answer deferred compensation CORRECT: key person Insurance, cross purchase agreement, stock Redemption plan in addition to the actual policy, an entire contract includes which of the following? - correct answer application which type of policy combines the flexibility of a universal policy with investment choices? - correct answer variable universal life policy without a section 125 plan in place, what would happen to an employee's payroll contribution to an HSA? - correct answer it would be considered taxable income to the employee and insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be - correct answer an unfair claim Settlement practice in Michigan, legal action can be taken against insurer for failure to pay LIFE insurance claims for a period not to exceed - correct answer 6 years

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S The purpose of Medicare supplement insurance is to address gaps in Medicare coverage, which can include - correct answer Medicare in hospital deductible a Securities license is required for life insurance provider to sell - correct answer variable life insurance which of the following nursing home options would BEST suit an individual who needs some nursing Care and supervision but NOT full-time care? - correct answer assisted living facilities Mark continues working after the age of 65 and is covered through his employers Group Health Plan. Which of the following statements is TRUE? - correct answer Medicare is a secondary payer deferred commissions may be paid to a person who sold an insurance policy when the person - correct answer was a licensed producer in the time of the sale sole Proprietors are permitted tax deductions for health costs paid from their earnings in the amount of - correct answer 100% of cost when can a life policy no longer be canceled for non fraudulent statements after its date of issue? - correct answer 2 years "maximum benefits" refers to the - correct answer upper limit of the total lifetime benefits the insurance company will pay an Indemnity plan - correct answer provides the insured a specific dollar amount for services also known as fee-for-service plans a provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid-up policy of the same time is called a - correct answer nonforfeiture provision in Michigan, legal action can be taken against an insurer for fail to pay HEALTH insurance claims for a period not to exceed - correct answer 3 years the period in which there are no Social Security benefits for the surviving spouse is called the - correct answer blackout period the elimination period under a hospital Indemnity plan is - correct answer the specified number of days in insured must wait before becoming eligible to receive benefits for each hospitalization Group insurance premiums made by an employer under the terms of a taft-hartley trust or paid directly to the - correct answer trust

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S after an insured gives notice of loss, what must he or she do if the insurer does not furnish forms? - correct answer file written proof of loss which of these describes the result of a modified endowment contract that failed to meet the seven pay test? - correct answer pre-death distributions are typically taxable group dental plans with frequently place a limit on annual benefits in order to minimize - correct answer adverse selection Rehabilitation benefit is intended to - correct answer prepare the insured to return to employment which of these premium payment frequencies is not typically available to a policyowner? - correct answer bi-weekly CORRECT: monthly, quarterly, semi annual Pharmacy benefit covers prescription drugs derived from a list called a - correct answer drug formulary a health insurance policy that allows an insurer to change the policy owners premiums, but NOT cancel the policy is called - correct answer guaranteed renewable policy when an accident and health policy requires payment of an additional premium to provide coverage for a newborn, how many days after the birth is the first payment due? - correct answer 31 a group disability income plan that pays tax free benefits to cover employees is considered - correct answer fully contributory in order for a contract to be valid, it must - correct answer contain an offer and an acceptance Krissa purchases a 10 year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true? - correct answer the face amount and premium will remain constant over the 10-year. what happens to the coverage under a children's term Rider when that child reaches a certain specified age? - correct answer coverage is eliminated which type of annuity stops all payments upon the death of the annuitant? - correct answer life annuity all of the following are included as part of the contract in the entire contract provision EXCEPT the - correct answer changes made by the producer

LATEST VERSION COMPLETE 240 WRITTEN QUESTIONS AND CORRECT ANSWER S CORRECT: Riders, application, policy under which criteria may a Group Health Plan exclude participation? - correct answer members part-time employment status CANNOT: members claim history, members current age, members pre-existing condition low-frequency diseases can be exclusively covered by what kind of Health policy is? - correct answer limited policies