Ohio Life, Accident & Health Insurance Exam: Questions & Answers, Exams of Insurance Economics

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Ohio Life, Accident and Health Insurance State

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A person who is a nonsmoker, of average weight and in excellent health would most likely be in which risk classification? - ✔✔preferred Preferred risk policies with reduced premiums are issued by insurance companies bc the insured has - ✔✔better than average mortality The waiver of premium does NOT include which provision? - ✔✔Al future premiums are waived if the insured recovers from the disability An advertisement for an insurance product may contain - ✔✔the insurer's name A medicare supplement plan can be canceled by the insurer - ✔✔for nonpayment of premiums The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? - ✔✔Insurable interest can be based on the love and affection of individuals related by blood or law Craig submits a %500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. which of the uniform optional provisions covers this situation? - ✔✔unpaid premium An example of a health insuring corporation (HIC) specialty care provider is - ✔✔neurologist

an insurance company needs to obtain personal info from a 3rd part concerning an applicant. which law do all insurers and their producers need to comply with? - ✔✔fair credit reporting act time is covered under a group plan and would like to changed his coverage to an individual policy w the same insurer bc of employment termination. which of these describes the change that will take place? - ✔✔conversion an agents appt has been terminated by insurer. the insurer must then notify the superintendent within how many days of the termination? - ✔✔ 30 the suicide clause of a life insurance policy states that if an insured commits suicide w in a stated period from the policy inception, the insurer will only be liable for a return of prisms paid

• ✔✔minus indebtedness and without interest which of the following is considered to be an alternative to a life settlement? - ✔✔accelerated death benefit rider if the annuitant dies before the annuity start date, - ✔✔the premiums paid plus interest earned will be given to the beneficiary a life insurance policy that has premiums fully paid up within a stated time period is called - ✔✔limited payment insurance shopping for annuity that guarantees he cannot outlive the benefits. which of these benefit options would he choose - ✔✔guaranteed lifetime withdrawal benefit

what is medicare part b known as - ✔✔supplementary medical insurance field underwriting performed by the producer involves - ✔✔completing the application and collecting initial premium a life insurance policy which contains cash values that vary according to its investment performance of stocks is called - ✔✔variable whole life a life insurance policy owner was injured in an automobile accident which results in total and permanent disability. which rider would pay a monthly amount bc of this disability? - ✔✔disability income rider pierre is covered by his employers group major medical plan. his employer pays for 75% of the premium and he pays for 25%. how much would a 10000 benefit be taxable as income under this plan - ✔✔ 0 what is not an element of a valid contract - ✔✔countersignature a health insurance policy will typically cover - ✔✔preventative health services which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary? - ✔✔interest only all of the following are qualifications for establishing a health savings act (HSA) except - ✔✔enrolled in a health plan with a prescription drug benefit

legal purpose is a term used in contract law meaning - ✔✔there must be legal reasons for entering into the contract 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? - ✔✔can be converted to a permanent coverage The factor used most often when underwriting a disability income policy is - ✔✔annual earnings the free look period in ohio for individual health insurance policies is __ days - ✔✔ 10 which of the following is considered to be the period when the accumulated value in an annuity is paid out? - ✔✔annutization phase under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? - ✔✔accidental bodily injury provision the ire states that taxpayers medical expenses that exceed 7.5% of their adjusted gross income is tax deductible. which of the following may be considered a medical expense under this rule? - ✔✔long term care insurance premium an insurance company has just received a request for verification from a vatical settlement provider. the insurer is required to respond within calendar days to this request - ✔✔ 30 which signature is not required on an indiv insurance app - ✔✔insurer

what can increase death benefit amount? - ✔✔cost of living, accidental death rider and guaranteed insurability but waiver of premium cannot the open enrollment period for medicare supplements begins at age - ✔✔ 65 an example of replacement is - ✔✔cancelling a term life policy to buy a whole life policy replacement can be best described as - ✔✔exchanging a new policy for one already in force a common exclusion for limitation on a dental policy is - ✔✔endodontics group health plans may deny participation based upon the - ✔✔member part-time employment status which of the following employers is required to follow ERISA regs - ✔✔a local business of 12 employees renewable term life insurance policy can be renewed - ✔✔at a predetermined date or age, regardless of the insureds health which type of disability would be less than total impairment and equal to permanent impairment? - ✔✔permanent partial disability

how is medicare utilized in group situatoins - ✔✔your group plan will pay first on you hosp and med bill for 30 months ex of business continuation plan - ✔✔key person insurance, cross-purchase agreement, stock redemption plan BUT NOT deferred compensation loss of income insurance provides - ✔✔individual w means to replace wages A Roth IRA owner must be at least what age in order to make tax-free withdrawals? 59 1/2 and owned account for a minimum of 10 years 59 1/2 and owned account for a minimum of 5 years 70 1/2 and owned account for a minimum of 10 years 70 1/2 and owned account for a minimum of 5 years - ✔✔ 59 1/2 ad owned for 5 years 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 - ✔✔60% of the benefit which of these would be the best example of a limited pay life insurance policy? - ✔✔whole life policy with premiums paid up after 20 years which of the following policies does not build cash value - ✔✔term an agents appt may only be terminated by - ✔✔insurer

A beneficiary change can occur - ✔✔normally at any time during the policy term a life insurance poincyowner does not have the right to - ✔✔revoke an absolute assignment which of these is affected by the frequency of an insurance policy premium payments - ✔✔cost which of the following is ineligible to participate in section 125 plan? - ✔✔highly compensated employee in a n s-corp which of the following is considered to be an act of misrepresentation? - ✔✔falsifying the terms, benefits, advantages or conditions of an insurance policy the limited period of time given to all members to sign up for a group health plan is called the - ✔✔enrollment period how is the cost of a policy affected when a policy owner pays premiums more frequently? - ✔✔increases James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? The original face amount will be paid to the beneficiary The policy will be voided with no death benefits paid

The death benefit paid will be what the premium would have purchased at the correct age The amount of premiums paid will be returned with interest - ✔✔c Continuous 24 - hour care provided by licensed medical professionals under the direct supervision of a physician is called - ✔✔skilled nursing care the open enrollment period for medicare part b is - ✔✔jan 1 through march 31 a minor may receive a life insurance policy death benefit only - ✔✔if the minor has an appointed guardian which payment method for a health claim settlement is typically made directly to the provider of the services - ✔✔prepaid the type of multiple protection coverage that pays on the death of the last persons is called - ✔✔survivorship life policy what is true about the federal income tax liability owed - ✔✔no federal income tax is owed on life insurance proceeds signatures for an insurance application must be obtained by the producer from all of the following sources except - ✔✔the beneficiary

long-term care policies or certificates issued in ohio are required to have - ✔✔non-forfeiture value Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause? - ✔✔spendthrift trust clause rob has a benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. which benefit fits this description? - ✔✔deferred compensation option which of these will have the highest monthly payout upon annutizationq - ✔✔straight life premiums that exceed 7.5% of an insured adjusted gross income are tax deductible when paid for which of the following plans - ✔✔group disability income plan custodial care at home would require - ✔✔long term care coverage which of the following is not a power for the superintendent - ✔✔enact insurance legislation. they can administer oaths, issue subpoenas and approve policy forms written notice for health claim must be given to the insurer days after the occurrence of the loss - ✔✔ 20 which of the following would disqualify a company's retirement plan from receiving favorable tax treatment - ✔✔it is temporary

who were keogh plans designed to provide pension benefits for - ✔✔the self employed a field underwriters main task is - ✔✔ensure info is accurate and complete When does an immediate annuity begin making payments? After multiple premiums have been paid After the first premium has been paid After policy has been active for one year After the incontestable period - ✔✔after the first premium is paid how much does medicare b pay for physicians fees - ✔✔80% medicare part b pays for 80% of most doctors services, outpatient treatments, and durable medical equipment (like oxygen or wheelchairs) insurable interest does not occur in which group - ✔✔bus owner and bus client An insurer must furnish to a claimant forms for filing proof of loss within days upon receiving a notice of claim. - ✔✔15 days violation of us code 1033 who deals w it - ✔✔us attorney general reduced paid-up nonforfeiture - ✔✔policy has a decreased face amount

eligible for part d: prescription drug coverage - ✔✔must have medicare coverage valid prescription is incorrect the first payment for newborn accident and health coverage is due days after the birth - ✔✔ 31 Premium mode is a term used to describe the - ✔✔frequency of the premium payment all of the following are considered appropriate uses of life insurance for bus purposes except - ✔✔protecting the bus by covering entry level employees w life insurance 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 - ✔✔universal life ` a plan in which an employer pays insurance benefits from a fund derived form the employers current revenues is called - ✔✔a self-funded plan confidentiality of health info applies to info supplied by - ✔✔both the covered ind and the providers

one of the most important considerations when replacing health insurance would be the - ✔✔exclusions on a new policy an insurer is required to off which of the following to each long term care applicant at the time of purchase - ✔✔inflation protection feature which annuity payout option allows the policy owner to choose a redetermined number of benefit payments - ✔✔period certain which of the following describes a person who is not acceptable by the insurer at a standard rates bc of health history, occupation or hobbies - ✔✔substandard risk which of these premium payment frequencies is not typically available to a policy owner? - ✔✔bi-weekly according to the health insurance portability and accountability act, when can a group health policy renewal be denied? - ✔✔participation or contribution rules have been violated a permanent life insurance policy where the policy owner pays premiums for a specified number of years is called - ✔✔limited pay policy kurt is an active duty servicemen who was recently killed in an accident while home on a leave. which military service exclusion clause would pay upon his death? - ✔✔results decreasing term life insurance is often used to - ✔✔to provide coverage for a home mortgage

the double indemnity provision in a life insurance policy pertains to an insured death caused by an - ✔✔accident An attending physician's statement would be appropriate for which life insurance purpose? Attending physician's statements are mandatory during the application process At the request of the applicant to assist in the underwriting decision At the request of the producer to assist in the underwriting decision At the request of the insurer to assist in the underwriting decision - ✔✔c a long-term care policy typically provides all the following levels of care except - ✔✔acute care which of these would not be considered a presumptive disability? - ✔✔loss of a leg OR arm if an agent is believed to be causing considerable harm, the superintendent - ✔✔may issue a cease and desist order against the agent A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n) insuring clause payor provision reinstatement provision

nonforfeiture provision - ✔✔nonforfeiture provision The superintendent determines an examination of an insurers books and records is necessary. after receiving the notification, the insurer - ✔✔must not impede the examination Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n) - ✔✔deductible the legal action provision in a health contract is limited to no more than ___ years - ✔✔ 5 when a preferred provider organization insured goes out of network, which of the following actions occur? - ✔✔the insurer will pay a reduced amount what is the primary factor that determines the benefits paid under a disability income policy - ✔✔wages a provision that allows a policy owner to withdraw a policy cash value interest free is a - ✔✔partial surrender Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be: cancelable guaranteed renewable conditionally renewable optionally renewable - ✔✔optionally renewable

which of the following is not a type of medicare advantage plan - ✔✔social security disability income an insurer has the right to recover payment made to the insured from the negligent party. these rights are called - ✔✔subrogation 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? Qualified retirement annuity Key employee retirement annuity Executive compensation plan Keogh annuity plan - ✔✔qualified retirement annuity a proposed insured a health insurance policy was treated for heart disease within the past year. when applying for health insurance, the hearty disease treatment - ✔✔indicates a preexisting condition the cause of a loss is referred to as - ✔✔peril insurance agent kelly offers a prospect a $1000 shopping card if an insurance policy is purchased through her. what illegal activity is this - ✔✔rebating an order issued by the superintendent that prohibits a specific practice listed in the order is called - ✔✔cease and desist

which is true regarding HIC - ✔✔benefits are provided on a reimbursement basis which does not provide a form of managed care? - ✔✔major medical indemnity plan the purpose of medicare supplement insurance is to address gaps in medicare coverage, which can include - ✔✔medicare in hospital deductible which of these will typically authorize treatment from a specialist - ✔✔gatekeeper an employer is issued a group medical insurance policy. this single contract is known as a - ✔✔master policy An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called - ✔✔coinsurance defamation occurs when an agent makes a false statement intended to - ✔✔malign another insurer All of these are characteristics of a major medical expense policy except - ✔✔elimination periods generally speaking, which three levels of care are long-term care policies provided with? - ✔✔skilled nursing, intermediate, and custodial care

which type of annuity stops all payments upon the death of the annuitant - ✔✔life annuity an agent is legally permitted to share his/her commissions - ✔✔w another licensed agent An agent's license can be suspended or revoked if - ✔✔the agent has been afforded a right to a hearing Mortality is calculated by using a large risk pool of hobbies and time people and time family history and geographical area insurance companies and agents - ✔✔ppl and time which of the following is required for an insurer to conduct business in this state - ✔✔certificate of authority all of these are typically sources of underwriting info for life and health insurance except - ✔✔disclosure authorization response

an example of a primary care physician would be an - ✔✔internist which of the following is not a required provision in an accident and health insurance policy - ✔✔change of occupation What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - ✔✔no tax payment needed which of the following is an annuity that is linked to a market-related index? - ✔✔equity- indexed annuity the conversion privilege under a group life plan allows an employee to convert to a - ✔✔individual plan upon employment termination` medicare part a does not pay for medical benefits provided for treatment in a skilled nursing facility beyond - ✔✔100 days Under a Modified Endowment Contract, what are the likely tax consequences? - ✔✔pre-death distributions will become taxable which of the following is not taken into consideration when determining eligibility for medicare benefits - ✔✔income As classified by the Affordable Care Act (ACA), a Silver Plan offers - ✔✔ 70 % actuarial level of coverage provided

Underwriters can acquire information from all of the following sources EXCEPT Medical Information Bureau (MIB) consumer reports attending physician's statements genetic testing - ✔✔genetic testing long term care policy activities of daily living does not include - ✔✔talking in which of the following situations would the insurer be liable for a loss - ✔✔the insured suffered an injury as an innocent bystander who is required to notify the agent in the event of appointment termination? - ✔✔insurer what doe the word "level" in level term describe - ✔✔the face amount what happens when an insurance policy is backdated - ✔✔the policy effective date is earlier than the present indemnity plan - ✔✔provides the insured a specific dollar amount for service what guarantees that the statements supplied by an insurance applicant are true? - ✔✔warranty

Who assumes the investment risk with a fixed annuity contract? - ✔✔insurer when the principal gives the agent authority in writing , its referred to as - ✔✔express authority in order to activate the reinstatement clause of a lapsed life insurance policy, the insured must - ✔✔provide evidence of insurability to the insurer how is medicare b funded - ✔✔general tax revenue and user premiums a life insurance applicant in ohio may backdate the application for up to months - ✔✔three Consolidated Omnibus Budget Reconciliation Act (COBRA) - ✔✔in the event of employment termination, group health insurance can be kept if the employee pays the premiums what is the immediate specific event causing loss and giving rise to risk - ✔✔peril who provides all preventative and routine medical care given to a health insuring corporation member - ✔✔primary care physician a life insurance policy owner is allowed days upon policy delivery to return the policy for a full premium refund - ✔✔10 days An insurer has a right to screen applicants for HIV in which of the following ways?

Blood test for HIV Inquiring about risky sexual behavior Inquiring about sexual orientation Automatically declining an application due to sexual orientation - ✔✔blood test which of the following is a a method of determining the level of funds required for ongoing support in the event of the breadwinner's death - ✔✔human life value which is not a factor that determines insurance life premium - ✔✔liquidity a whole life insurance policy accumulates cash value that becomes - ✔✔the policy loan value which the insured may borrow against how are health plans classified according to the affordable care act - ✔✔bronze, silver, gold, platinum an individual most likely will have an insurable interest in insuring a persons life if - ✔✔an economic interest exists for the continuance of the insureds life Loans obtained by a policyowner against the cash value of a life insurance policy are treated as taxable income would not be treated as taxable income

are limited by the face amount of the policy would be subject to a Federal estate tax - ✔✔would not be treated as taxable income Fixed annuities provide all of the following EXCEPT - ✔✔hedge against inflation which of the following is not typically included under "hospital care" for most health insuring corporation plans? - ✔✔private duty nursing Under the subrogation clause, legal action can be taken by the insurer against the - ✔✔responsible third party which of the following pertains to the analysis of an applicants perusal info and determine whether insurance should be issued or declinded - ✔✔underwriting a policy owner may change two policy features on what type of life insurance - ✔✔adjustable life a health insurance policy that allows an insurer to change the policy owners premiums but not cancel the policy is called - ✔✔guaranteed renewable policy the fair credit and reporting act's main purpose is to - ✔✔protect consumers w guidelines regarding credit reporting and distribution

Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? - ✔✔medicare in-hospital deductible a company that is authorized by superintendent to transact insurance business in ohio is called

• ✔✔authorized insurer which of the following is not an example of utilization review - ✔✔ongoing inspection of accident prone individuals the federal employees benefit program consists of two types of health plans for federal civilian employees. the two plans are fe-for-sercive and - ✔✔prepaid What will the beneficiary receive if an annuitant dies during the accumulation period? - ✔✔the greater of the accumulated cash value or the total premium paid what would happen if a life insurance applicant is given a conditional receipt form an insurance agent and then diest the next day? - ✔✔claims will be paid if the application was approved the premium payment mode that results in the highest overall cost - ✔✔monthly maria the agent would like to advertise an annuity product on a highway billboard. which of the following must be included in the advertisement - ✔✔her name Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement? - ✔✔premiums paid plus interest earned is returned to the beneficiary

advertisements for accident and health policies that only cover a stated illness must display a statement that the - ✔✔policy is limited all of the following plans allow for employee contributions to be taken on a pre-tax basis except

• ✔✔health reimbursement arrangement plan under traditional ira interest earned is taxed - ✔✔according to the capital gains rate