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Ohio life and Health Insurance Practice
Final Exam Solved 100% Correct!!
A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - ✔️ ✔️ fare-paying passenger
A life insurance policy which contains cash values that vary according to its investment performance of stocks is called - ✔️ ✔️ Variable Whole Life
A Medicare Supplement basic benefit is - ✔️ ✔️ the first 3 pints of blood per year
A Medicare supplement plan can be canceled by the insurer - ✔️ ✔️ for nonpayment of premiums
A disability elimination period is best described as a - ✔️ ✔️ time deductible
A form of medical health insurance covering the treatment and care of gum disease is called - ✔️ ✔️ Dental expense insurance
A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) - ✔️ ✔️ guaranteed renewable policy
A health insuring corporation (HIC) member receives all preventative and routine medical care from the - ✔️ ✔️ Primary care physician
A licensed agent who lives in another state and transacts insurance in Ohio is called - ✔️ ✔️ a nonresident agent
A cease and desist order issued by the superintendent against an agent - ✔️ ✔️ prohibits a specific practice listed in the order
A change in an insurance application requires - ✔️ ✔️ an initial made by the applicantv
A common exclusion with Vision plans is - ✔️ ✔️ lasik surgery
A licensee who is required to take continuing education must include how many ethics coursework hours? - ✔️ ✔️ 3
A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - ✔️ ✔️ A self-funded plan
A policyholder's unmarried child is incapable of self support and has proof of incapacity. The child is provided medical care coverage under the parent's policy - ✔️ ✔️ until policy termination
A policyowner can receive an immediate payment before the insured dies by using a(n)
- ✔️ ✔️ viatical settlement contract
A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation? - ✔️ ✔️ Irrevocable beneficiary
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) - ✔️ ✔️ nonforfeiture provision
A rehabilitation benefit is intended to - ✔️ ✔️ prepare the insured to return to employment
A securities license is required for a life insurance producer to sell - ✔️ ✔️ variable life insurance
A securities license is required for a life insurance producer to sell - ✔️ ✔️ variable life insurance
A type of insurer that is owned by its policyowners is called - ✔️ ✔️ mutual
After a request has been received for verification from a viatical settlement provider, an insurance company authorized to do business shall respond within - ✔️ ✔️ 30 calendar days
After the date of marriage, an insurer is REQUIRED to provide what MINIMUM period of time for an employee to add a new spouse to a small group health plan? - ✔️ ✔️ 30 days
All _____ policies must be guaranteed renewable. - ✔️ ✔️ long-term care
All of the following are considered appropriate uses of life insurance for business purposes EXCEPT - ✔️ ✔️ Protecting the business by covering key employees with life insurance
All of the following are defined as supplemental health insuring corporation (HIC) services EXCEPT - ✔️ ✔️ outpatient medical services
An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n) - ✔️ ✔️ Rider
An example of elective cosmetic surgery would be - ✔️ ✔️ removing excess fat from an insured's waistline
An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/ coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? - ✔️ ✔️ $5,
An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if - ✔️ ✔️ the insured outlived the beneficiary
An insurer has a right to screen applicants for HIV in which of the following ways? - ✔️ ✔️ Blood test for HIV
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim. - ✔️ ✔️ 15
An insurer MUST offer a Long-Term Care Policy or certificate that - ✔️ ✔️ has a nonforfeiture value
An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called - ✔️ ✔️ Partial Surrender
As classified by the Affordable Care Act (ACA), a Silver Plan offers - ✔️ ✔️ 70% actuarial level of coverage provided
Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? - ✔️ ✔️ Assisted living
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? - ✔️ ✔️ Own occupation
Coming from an insurance point of view, which of the following is the main risk associated with disability? - ✔️ ✔️ Loss of income
Continued coverage under COBRA would be provided to a(n) - ✔️ ✔️ terminated employee
Coordination of Benefits regulation applies to all of the following plans EXCEPT - ✔️ ✔️ Preferred Provider Organization plan
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
Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered - ✔️ ✔️ Noncancellable
Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an example of which of the following? - ✔️ ✔️ Misrepresentation
Health insurance involves two perils, accident and ____. - ✔️ ✔️ sickness
Health insurance will typically cover which of the following perils? - ✔️ ✔️ Injury due to accident
Hospital care under a typical health insuring corporation (HIC) plan includes all of the following EXCEPT - ✔️ ✔️ Private duty nursing
How are annuities given favorable tax treatment? - ✔️ ✔️ Gains are taxed at distribution
How are survivorship life insurance policies helpful in estate planning? - ✔️ ✔️ Provide funds to help pay taxes
How do insurers predict the increase of individual risks? - ✔️ ✔️ Law of large numbers
How long can an insurer exclude coverage for a preexisting condition on a Medicare Supplement Policy? - ✔️ ✔️ 6 months
How long can an insurer exclude coverage for a preexisting condition on a Medicare Supplement Policy? - ✔️ ✔️ 6 months
How many employees must an employer have for a terminated employee to be eligible for COBRA? - ✔️ ✔️ 20
If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? - ✔️ ✔️ A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age
If the annuitant dies before the annuity start date, - ✔️ ✔️ the premiums paid plus interest earned will be given to the beneficiary
Of the following dividend options, which of these is taxable? - ✔️ ✔️ Accumulation at interest
Ohio requires advertisements for accident and health insurance policies covering ONLY a specified illness to prominently display - ✔️ ✔️ A statement that the policy is limited
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans? - ✔️ ✔️ Qualified Long-Term Care plan
Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause? - ✔️ ✔️ spendthrift trust clause
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? - ✔️ ✔️ $4,
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's - ✔️ ✔️ income period
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of - ✔️ ✔️ 100% of costs
The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of - ✔️ ✔️ past due premiums that have not been paid by the end of the grace period
The difference between a Long Term Care Partnership Plan and a Non-Partnership Plan is which of the following? - ✔️ ✔️ Asset Protection
The election of COBRA for continuation of health coverage will - ✔️ ✔️ maintain the same coverage and increase premium
The entire contract includes the actual policy and the - ✔️ ✔️ application
The IRS states that a taxpayer's 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 premiums
The open enrollment period for Medicare Supplements begins at age - ✔️ ✔️ 65
The premium for a Modified whole life policy is - ✔️ ✔️ lower than the typical whole life policy during the first few years and then higher than typical for the remainder
The superintendent is NOT responsible for - ✔️ ✔️ endorsing insurers
The taxable portion of each annuity payment is calculated using which method? - ✔️ ✔️ Exclusion Ratio
The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. - ✔️ ✔️ 1
To receive proceeds from a death benefit, a minor - ✔️ ✔️ must have an appointed guardian
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n) - ✔️ ✔️ 1035 Exchange
Under a life insurance policy, what does the insuring clause state? - ✔️ ✔️ The insurer's obligation to pay a death benefit upon an approved death claim
Under a Modified Endowment Contract, what are the likely tax consequences? - ✔️ ✔️ Pre-death distributions will become taxable
Under Ohio continuation rules, an employer with fewer than 20 employees must allow terminated employees to continue accident and health coverage for at least - ✔️ ✔️ 12 months
Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying $2,000 by - ✔️ ✔️ the number of full time employees minus 30
Under the subrogation clause, legal action can be taken by the insurer against the - ✔️ ✔️ responsible third party
Under US Code 1033, crimes by or affecting persons engaged in the business of insurance which affect interstate commerce are prosecuted by the - ✔️ ✔️ US Attorney General
Underwriters can acquire information from all of the following sources EXCEPT - ✔️ ✔️ genetic testing
What is implied authority defined as? - ✔️ ✔️ Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties
What is issued to each employee of an employer health plan? - ✔️ ✔️ Certificate
Which of the following does restorative dental treatment cover? - ✔️ ✔️ Crowns
Which of the following is a health insuring corporation (HIC) provider of specialty care? - ✔️ ✔️ A neurologist
Which of the following is a requirement for ANY change in an insurance application? - ✔️ ✔️ Change must be initialed by the applicant
Which of the following is NOT considered advertising? - ✔️ ✔️ An AM Best company rating
Which of the following is permitted in an advertisement for an insurance policy? - ✔️ ✔️ The insurer's name
Which of the following provides Medicare supplement policies? - ✔️ ✔️ Private insurance companies
Which of the following signatures is not required on an individual insurance application?
Which of the following statements is CORRECT regarding an individual applying for life or health insurance? - ✔️ ✔️ The applicant's medical history may be analyzed and reported
Which of the following statements is TRUE about an insurer's right to screen applicants for HIV? - ✔️ ✔️ An insurer can require a blood test for HIV
Which of the following would be considered a possible applicant and contract policyholder for group health benefits? - ✔️ ✔️ Employer
Which of these is NOT considered to be a purpose of an annuity? - ✔️ ✔️ Annuities are intended to create an estate
Who is the individual paid on a fee-for-service basis? - ✔️ ✔️ Provider
Who may terminate an agent's appointment? - ✔️ ✔️ the insurer
With a scheduled dental policy, how are covered expenses paid? - ✔️ ✔️ Benefits are limited to a specific maximum dollar amount per procedure
With the majority of companies, within how many days does the free-look provision allow the insured the right to return the life insurance policy for full premium? - ✔️ ✔️ 10 days
Written notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. - ✔️ ✔️ 20
Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? - ✔️ ✔️ Death benefit
Which of these riders will pay a death benefit if the insured's spouse dies? - ✔️ ✔️ Family term insurance rider
Which of these statements about Medicaid is CORRECT? - ✔️ ✔️ Funded by federal, state, and local taxes
Which situation accurately describes a reduced paid-up nonforfeiture option? - ✔️ ✔️ Policy has a decreased face amount
Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? - ✔️ ✔️ Business overhead expense policy
Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". - ✔️ ✔️ Consideration clause
Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance? - ✔️ ✔️ Hospital indemnity
Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? - ✔️ ✔️ Endowment policy
Which type of multiple protection policy pays on the death of the last person? - ✔️ ✔️ Survivorship life policy
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? - ✔️ ✔️ Payor benefit
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 to $50,000 and the face amount becomes $350,000. What kind of policy is this? - ✔️ ✔️ Universal Life policy
Joe is a Medicare participant who receives his benefits through a Managed Health Care Plan. Which Medicare plan does he have? - ✔️ ✔️ Part C
