Understanding Long-Term Care and Health Insurance Options, Exams of Nursing

Download Understanding Long-Term Care and Health Insurance Options and more Exams Nursing in PDF only on Docsity! NURSING STATE EXAMS 3 - COMPREHENSIVE STUDY GUIDE/NURSING STATE FINAL EXAM WITH QUESTIONS AND VERIFIED ANSWERS LATEST UPDATE (2024/2025) ALREADY GRADED A 1. When assisting a client in learning how to use a cane, the nurse aide stands a. approximately two feet directly behind the client. b. about one foot from the client's weak side. c. about one foot from the client's strong side. d. slightly behind the client on the client's weak side. - ANSWER>>d. slightly behind the client on the client's weak side. 2. When working with a client who has urinary retention, the nurse aide can expect that the client will a. urinate large volumes. b. be unable to urinate. c. urinate frequently. d. be incontinent of urine. - ANSWER>>b. be unable to urinate. 3. Aging-related hearing changes result in older clients gradually losing their ability to hear a. high-pitched sounds. b. low-pitched sounds. c. slow sounds. d. rapid sounds. - ANSWER>>a. high-pitched sounds. 4. The best way to safely identify your patient is by a. asking his name. b. calling his name and waiting for his response. c. checking the bed plate. d. checking the name tag. - ANSWER>>d. checking the name tag. 5. A client is on a bowel and bladder training program and has not had a bowel movement in three days. The nurse aide should a. report it to the charge nurse. b. give the client an enema. c. offer the client prune juice. d. encourage the client to drink more fluids. - ANSWER>>a. report it to the charge nurse. 6. The proper medical abbreviation for before meals is a. p.c. b. b.i.d. c. a.c. d. t.i.d. - ANSWER>>c. a.c. 7. A client diagnosed with hypertension will most likely have a history of a. low blood pressure. b. high blood pressure. c. low blood sugar. d. high blood sugar. - ANSWER>>b. high blood pressure. 8. A patient who has difficulty chewing or swallowing will need what type of diet? a. clear liquid b. low residue c. bland d. mechanical soft - ANSWER>>d. mechanical soft 9. An elderly resident with Alzheimer's disease cannot find her room. How can the nurse aide help the client feel more independent? a. Tell her to stay in the room. b. Have her roommate secretly watch her. c. Place a familiar object on the client's door. d. Write the room number on a piece of paper. - ANSWER>>c. Place a familiar object on the client's door. 0. How often should a patient's intake and output records be totaled? a. once each shift b. twice a day c. every four hours d. every 12 hours - ANSWER>>a. once each shift 11. Which of the following should the nursing assistant observe and record when admitting a client? a. freckles b. wrinkles c. short nails d. bruises - ANSWER>>d. bruises 12. When responding to a client on the intercom, the nursing assistant should say a. "Hello, who is calling, please?" b. "What is it that you want?" c. "This is [nursing assistant name and position], can I help you?" d. "Please hold; I'll have the nurse to use the call bell. - ANSWER>>d. make sure the client knows how to use the call bell. 24. When lifting a heavy object, the correct method would be to bend at the a. waist, keeping your legs straight. b. waist, rounding your shoulders. c. knees, keeping your back straight. d. knees and waist. - ANSWER>>c. knees, keeping your back straight. 25. When should nurse aides wash their hands? a. after eating b. before using the bathroom c. after client care d. before cleaning a bedpan - ANSWER>>c. after client care 26. When assisting a client with eating, one of the first things the nurse aide should do is a. cut the food into bite-size pieces. b. wash his own hands and the client's hands. c. butter the client's bread. d. provide the client with privacy. - ANSWER>>b. wash his own hands and the client's hands. 27. A patient has a new cast on her right arm. While caring for her, it is important to first observe for a. pulse above the cast. b. color and hardness of the cast. c. warmth and color of fingers. d. signs of crumbling at the cast end. - ANSWER>>c. warmth and color of fingers. 28. Encouraging a client to take part in activities of daily living (ADLs) such as bathing, combing hair, and feeding is a. done only when time permits. b. the family's responsibility. c. necessary for rehabilitation. d. a violation of client rights. - ANSWER>>c. necessary for rehabilitation. 29. In caring for a confused elderly man, it is important to remember to a. keep the bedrails up except when you are at the bedside. b. close the door to the room so that he does not disturb other patients. c. keep the room dark and quiet at all times to keep the patient from becoming upset. d. remind him each morning to shower and shave independently. - ANSWER>>a. keep the bedrails up except when you are at the bedside. 30. Before assisting a client into a wheelchair, the first action would be to check if the a. client is adequately covered. b. floor is slippery. c. door to the room is closed. d. wheels of the chair are locked. - ANSWER>>d. wheels of the chair are locked. 31. A client has a weak left side. When transferring the client from the bed to the wheelchair, the nurse aide should stand a. on the right side. b. in front of the client. c. on the left side. d. behind the client. - ANSWER>>c. on the left side. 32. While making rounds at 5:30 A.M., a nurse aide finds a patient lying on the floor. What should the nurse aide do first? a. Call 911. b. Perform CPR. c. Call for help. d. Assess the client's pulse and respirations. - ANSWER>>d. Assess the client's pulse and respirations. 33. When moving a wheelchair onto an elevator, the nurse aide should stay a. behind the chair and pull it toward the aide. b. behind the chair and push it away from the aide. c. in front of the client to observe the client's condition. d. at the side of the wheelchair while opening the door. - ANSWER>>a. behind the chair and pull it toward the aide. 34. The Foley bag must be kept lower than the client's bladder so that a. urine will not leak out, soiling the bed. b. urine will not return to the bladder, causing infection. c. the bag will be hidden and the client will not be embarrassed. d. the client will be more comfortable in bed. - ANSWER>>b. urine will not return to the bladder, causing infection. 35. As an afternoon snack, the kitchen sent a diabetic client a container of chocolate ice cream. The nursing assistant should first a. substitute diet soda for the ice cream. b. hold the afternoon snack and report to the charge nurse. c. call the kitchen and report the error. d. allow the client to have half of the ice cream. - ANSWER>>b. hold the afternoon snack and report to the charge nurse. 36. When assisting a client who is using the commode, it is important to a. leave the call light within reach. b. lock the door to promote privacy. c. stand next to the client until the client is finished. d. restrain the client to prevent a fall. - ANSWER>>a. leave the call light within reach. 37. Ensuring adequate circulation to tissues is a major factor in preventing skin breakdown. This can be accomplished by doing all of the following EXCEPT a. positioning the patient every four hours. b. using mechanical aids. c. giving backrubs. d. performing active or passive ROM exercises. - ANSWER>>a. repositioning the patient every four hours. 38. The purpose of cold applications is usually to a. speed the flow of blood to the area. b. prevent heat exhaustion. c. prevent or reduce swelling. d. prevent the formation of scar tissue. - ANSWER>>c. prevent or reduce swelling. 39. The hot water bottle is an example of a a. local dry heat application. b. generalized dry heat application. c. local moist heat application. d. generalized moist heat application. - ANSWER>>a. local dry heat application. 40. Clients receiving an enema are usually placed a. on the right side. b. on the left side. c. flat on the back. d. in a semisitting position. - ANSWER>>b. on the left side 41. A female client's perineal area should be cleansed before which specimen is collected? 54. A client is scheduled for a partial bed bath. This means that the nurse aide must wash the client's a. face, neck, ears, arms, and hands. b. face, axillae, hands, and buttocks. c. face, hands, axillae, and legs. d. face, hands, axillae, genitals, and buttocks. - ANSWER>>d. face, hands, axillae, genitals, and buttocks 55. An agitated resident must be turned every two hours all night long. The first action of the nurse aide when waking up this resident is to a. turn on the light. b. speak quietly and calmly. c. touch her shoulder. d. shout her name. - ANSWER>>b. speak quietly and calmly. 56. If a client objects to certain food for religious or cultural reasons, the appropriate action would be to a. tell him to wait for the next meal. b. offer to substitute something different for him. c. call the dietician the next day. d. tell him he needs to eat what is on his tray. - ANSWER>>b. offer to substitute something different for him. 57. The client's religion forbids eating pork. Bacon is being served for breakfast. The most appropriate response is to a. encourage the client to eat it because she needs protein. b. tell the client it is all right since her doctor ordered the diet. c. call the kitchen for a tray without bacon. d. tell the client that restrictions are not as important as her health. - ANSWER>>c. call the kitchen for a tray without bacon. 58. Which type of communication can often be most powerful? a. written b. verbal c. silent d. tactile - ANSWER>>c. silent 59. A client refuses to allow the nurse aide to bathe her. The nurse aide tells the client that she will not be allowed to eat lunch or go to bingo if she does not have her bath. This is an example of a. rehabilitation. b. discipline. c. verbal abuse. d. physical abuse. - ANSWER>>c. verbal abuse. 60. On entering a room, an aide notices that the client is not breathing. The aide's first action should be to a. call for help. b. lay the client down on his back. c. give four quick breaths. d. give 8-10 abdominal thrusts. - ANSWER>>a. call for help. 61. A client's dentures are lost. The first action should be to a. notify the administrator. b. look for them. c. notify the doctor. d. notify the charge nurse. - ANSWER>>d. notify the charge nurse. 62. Nursing assistants are responsible for a. planning client care. b. doing tasks assigned by the charge nurse. c. performing without ever asking for help. d. comparing assignments with coworkers. - ANSWER>>b. doing tasks assigned by the charge nurse. 63. A patient turns on the call light when he needs to urinate. The appropriate action is to a. ignore the light, since he is not the aide's own client. b. announce on the intercom that there are two patients ahead of him. c. answer the call light and get the urinal. d. answer the call light when the aide has the time. - ANSWER>>c. answer the call light and get the urinal. 64. A client is on CMR and in the prone position. The nurse aide finds the client vomiting bright red blood. The nurse aide should first a. clean up the vomit. b. place the client in the side-lying position c. provide the client with an emesis basin. d. call the charge nurse. - ANSWER>>b. place the client in the side-lying position. 65. When performing catheter care, the nurse aide should wash the catheter a. toward the meatus. b. with Betadine soap. c. away from the meatus. d. with alcohol. - ANSWER>>c. away from the meatus. 66. A nurse aide who applies restraints on a client without directions from the charge nurse may be accused of a. slander. b battery. c. false imprisonment. d. negligence. - ANSWER>>c. false imprisonment. 67. H.S. care is care that is given a. before meals b. before bedtime. c. after meals. d. upon awakening. - ANSWER>>b. before bedtime. 68. The best food choices for a geriatric client with no teeth would include a. hamburger, french fries, corn, and ice cream. b. baked chicken, dressing, green beans, and coconut macaroons. c. spare ribs, macaroni and cheese, coleslaw, and fruit cocktail. d. baked fish, whipped potatoes, spinach souffle, and tapioca. - ANSWER>>d. baked fish, whipped potatoes, spinach souffle, and tapioca. 69. A client's family wants to talk about the client's impending death, but the client does not want to talk about it. The family should be encouraged to a. carry on the conversation away from the client. b. talk freely in front of the client in order to help the client to accept it. c. wait until the client dies to talk about it. d. force the client to talk about it with them. - ANSWER>>a. carry on the conversation away from the client. 70. A nurse aide notices that a water pitcher has spilled onto the floor. The best action for the aide to perform is to a. wipe it up immediately. b. cover it with a towel. c. notify the charge nurse. d. contact housekeeping. - ANSWER>>a. wipe it up immediately. 71. Upon entering a room, the nurse aide notices that a patient is not breathing. The aide's first action is to a. call for help. b. lay the patient down on his back. c. give four quick breaths. d. give ten abdominal thrusts. - ANSWER>>a. call for help. 72. When should postmortem care be performed? a. after the family views the body b. Immediately after doctor pronounces c. when rigor mortis sets in. d. after body goes to the morgue. - ANSWER>>b. Immediately after doctor pronounces the patient dead. 73. The purpose of correctly positioning the client is to: a. prevent skin breakdown. b. maintain function of joints and 86. A resident's care plan calls for the resident to ambulate 50 feet twice a day. The resident tells the nurse aide that she is unable to do it now. What should the nurse aide do? (A) Ask the resident to be more helpful. (B) Ask the charge nurse to change the care plan. (C) Tell the resident that she can skip her walk today. (D) Allow the resident to choose a better time to ambulate. - ANSWER>>(D) Allow the resident to choose a better time to ambulate. 87. A nurse aide notices that a resident has very dry skin on the feet. How should the nurse aide care for the resident's feet? (A) Raise them on a pillow. (B) Wash and dry them only. (C) Keep socks on them at all times. (D) Apply lotion after washing and drying the feet. - ANSWER>>(D) Apply lotion after washing and drying the feet. 88. An elderly resident is normally alert, but today she is slightly confused. What should the nurse aide do? (A) Say, "It is not like you to act like this." (B) Report the confusion to the charge nurse. (C) Not worry because all old people get confused sometimes. (D) Ignore the confusion because the resident may only be trying to get extra attention. - ANSWER>>(B) Report the confusion to the charge nurse. 89. A nurse aide has found a fire in a resident's waste can. What should the nurse aide do first? (A) Pull the fire alarm. (B) Pour water on the fire. (C) Move residents out of immediate danger. (D) Use the fire extinguisher to put out the fire. - ANSWER>>(C) Move residents out of immediate danger. 90. What is the first thing a nurse aide should do after receiving the resident assignments for the shift? (A) Start giving care to the first resident on the assignment. (B) Make rounds and see each resident briefly. (C) Ask another nurse aide what to do first. (D) Find out when the lunch break is. - ANSWER>>(B) Make rounds and see each resident briefly. 91. A nurse aide is walking with a resident. The resident says that she is going to faint. What should the nurse aide do? (A) Open a window to give the resident air. (B) Walk the resident to her room quickly. (C) Assist the resident to sit slowly on the floor. (D) Hold the resident on her feet until she feels better - ANSWER>>(C) Assist the resident to sit slowly on the floor. 92. A resident is upset after a family visit. The resident tells the nurse aide not to allow the family to visit again. Which of the following is the nurse aide's best response? (A) "OK, I will tell them not to visit." (B) "I will inform the receptionist immediately." (C) "Can you tell me why you are so upset?" (D) "You will feel differently about it tomorrow. - ANSWER>>(C) "Can you tell me why you are so upset?" 93. A nurse aide is feeding a resident a pureed diet. How should the nurse aide feed the resident? (A) By feeding all of one food at a time. (B) By giving portions from each food on thetray. (C) By mixing the food together to make feeding easier. (D) Any way the nurse aide wishes because pureed food has no taste. - ANSWER>>(B) By giving portions from each food on the tray. 94. A resident is on oxygen. He tells the nurse aide that he is not getting enough oxygen through the tubing. What should the nurse aide do first? (A) Turn up the oxygen. (B) Turn off the oxygen. (C) Check the tubing. (D) Tell the patient to breathe faster to get more oxygen. - ANSWER>>(C) Check the tubing. 95. Which of the following is a true statement about the elderly? (A) They have no sex drive. (B) They prefer to be alone. (C) They often have problems with vision. (D) They are not concerned about privacy. - ANSWER>>(C) They often have problems with vision. 96. A resident refuses to have a bath and to shave every day. He has not bathed for a week. What should the nurse aide do? (A) Force the resident to take a bath and shave every day. (B) Ask the charge nurse for assistance with the problem. (C) Leave the resident alone as he will want a bath some day. (D) Tell the resident's family that the resident has not bathed in a week. - ANSWER>>(B) Ask the charge nurse for assistance with the problem. 97. A resident usually dresses himself for breakfast. Today the nurse aide finds him in pajamas at10:00 am. What should the nurse aide do? (A) Nothing (B) Dress the resident (C) Ask him "Is there anything wrong today?" (D) Tell him "I don't have time to dress you." - ANSWER>>(C) Ask him "Is there anything wrong today?" 98. A nurse aide finds a male resident in bed with a female resident who is confused. What should the nurse aide do? (A) Scold the male resident. (B) Report this to the charge nurse. (C) Close the door and the privacy curtains. (D) Put a "Do Not Disturb" sign on the door.¨ - ANSWER>>(B) Report this to the charge nurse. 99. A resident with poor vision was admitted to the unit. What should the nurse aide do to ensure the resident's safety? (A) Arrange the furniture against the walls. (B) Tell the resident to walk around the room by herself. (C) Remove all furniture, except the bed and chair, from the room. (D) Help the resident become familiar with the location of the furniture in the room. - ANSWER>>(D) Help the resident become familiar with the location of the furniture in the room. 100. A nurse aide finds clean linen lying on the floor near the linen cart. What should the nurse aide do? (A) Discard the linen in the soiled linen hamper (B) Place the linen on the clean linen cart and cover the cart. (C) Place the linen in a resident's room for immediate use. (D) Leave the linen on the floor for housekeeping staff to remove. - ANSWER>>(A) Discard the linen in the soiled linen hamper. 101. A resident cannot walk by herself. What must the nurse aide do before leaving her room? (A) Give her a bedpan. (B) Tell her to shout if she needs help. (C) Put the call light where she can reach it. (D) Let another nurse aide know that she is in her room. - ANSWER>>C) Put the call light where she can reach it. 102. A resident has trouble finding her room. What could the nurse aide do to help this resident? (A) Speak sharply to her whenever she goes to the wrong room. (B) Assign another resident to watch her. (C) Make a special sign for her door. (D) Keep her in her room. - ANSWER>>(C) Make a special sign for her door. 103. A resident dies during the night. At breakfast, another resident who was his friend, begins to talk to the nurse aide about the death. What should the nurse aide do? (A) Distract the resident by talking about the news of the day. (B) Tell the resident to find someone else to talk to. (C) Find out who told the resident about the death. (D) Allow the resident to talk about the death. - ANSWER>>(D) Allow the resident to talk about the death. 104. A resident is lying on the floor having a seizure when the nurse aide walks into the room. What should the nurse aide do first? (A) Restrain the residents' arms. (B) Put a screen around the resident for privacy. (C) Place a padded tongue blade between her teeth. (D) Move any objects which could injure the resident and support her head. - ANSWER>>(D) Move any objects which could injure the resident and support her head. 105. A resident was given a stuffed animal as a gift. The resident wants to keep the stuffed animal with her much of the time. What should the nurse aide do? (A) Explain that adults do not hold stuffed animals. (B) Ask her relatives to take the stuffed animal home. (C) Let her hold the stuffed animal whenever she wants to. (D) Suggest that she keep the stuffed animal on the window sill. - ANSWER>>(C) Let her hold the stuffed animal whenever she wants to. 119. A resident has a cold and is using tissues for his nose. There are used tissues on the resident's bed, floor, and bedside stand. What should the nurse aide do to control the spread of infection? (A) Report the resident's behavior to the resident council. (B) Ask the resident to throw his used tissues in the toilet. (C) Pick up the used tissues in the resident's room once a day. (D) Attach a paper bag to the resident's bed and ask him to put the used tissues in it. - ANSWER>>(D) Attach a paper bag to the resident's bed and ask him to put the used tissues in it. 120. A resident tells a nurse aide he is going to kill himself. What should the nurse aide do? (A) Nothing, because people who threaten suicide usually do not kill themselves. (B) Call the resident's family and ask them to come and sit with him. (C) Tell the resident that things are not as bad as they seem. (D) Stay with the resident and call for help. - ANSWER>>(D) Stay with the resident and call for help. 121. A nurse aide sees the charge nurse swallow medication that belongs to a resident. What should the nurse aide do? (A) Ignore the incident because the charge nurse might get the nurse aide fired. (B) Tell the resident's family that the charge nurse is stealing medication. (C) Report the incident to the administrator or nursing supervisor. (D) Suggest the nurse get help immediately. - ANSWER>>(C) Report the incident to the administrator or nursing supervisor. 122 . Which of the following should the nursing assistant observe and record when admitting a client? a. freckles b. wrinkles c. short nails d. bruises - ANSWER>>d. Bruises 123. The most serious problem that wrinkles in the bed clothes can cause is a. restlessness. b. sleeplessness. c. decubitus ulcers. d. bleeding and shock. - ANSWER>>c. decubitus ulcers 124. A goal for an extended care facility (ECF) resident is that she not swear at the nurses or aides. When she calls an aide by his name, the appropriate action is to a. smile and give the appropriate reward. b. continue whatever task that is being done. c. tease the resident about not swearing. d. tell all of the staff that she didn't swear. - ANSWER>>a. smile and give the appropriate reward. Herman and Velma are trying to find a plan that will provide home health care, assisted living and custodial benefits as they become older. All of the following plans may provide the benefits they require EXCEPT: A long term care policy with the appropriate options Medicare Part A & B A life insurance policy with a long term care rider An annuity with long term care waivers - ANSWER>>Medicare Part A & B A variety of types of care are provided under a long-term care policy. All of the following are types of care generally provided EXCEPT: Intensive care Custodial care Skilled care Home health care - ANSWER>>Intensive care Medicare Part C - also called Medicare Advantage Plans - came about as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. Which of the following is available under the Medicare Advantage program? Private fee-for-service plans Managed care plans Preferred Provider plans All of the above - ANSWER>>All of the above When compared to a traditional IRA, a Roth has all of the following features EXCEPT: The contributions to a Roth IRA are limited annually Withdrawals from a Roth IRA are tax free if the owner follows certain rules. Any person can open a Roth IRA account The assets in a Roth IRA account accumulate tax free - ANSWER>>Any person can open a Roth IA account What is meant by the term fully contributory? Premiums are paid entirely by the policyowner Premiums are paid the insured in an employer based group policy Premiums are paid entirely by the member in a non-employer group policy Premiums are paid by the group in non-employer group policies - ANSWER>>Premiums are paid entirely by the member in a non-employer group policy What is described as life insurance that strictly provides a death benefit within a specified time period? Minimum death benefits Whole life insurance Maximum death benefits Term life insurance - ANSWER>>Term life insurance Fixed annuities that provide a guaranteed minimum interest rate are called ______________. An equity-indexed annuity A variable annuity A flexible annuity A structured annuity - ANSWER>>An equity-indexed annuity Vickie decided to purchase an equity-indexed annuity (EIA). Which of the following statements applies to the equity-indexed annuity? Equity-linked rate of return All of the above The interest is guaranteed The principal is guaranteed - ANSWER>>All of the above The total amount an insurer will pay for an insured risk is the definition of: Premium. Limit of liability. Coinsurance. Deductible - ANSWER>>Limit of liability An employer offers group insurance to his employees on a non-contributory basis. How many of his employees must be offered coverage under the group? 90% 100% 75% 80% - ANSWER>>100% A group health plan's rates may be affected by any of the following EXCEPT: Experience of the group (Claims vs. Premium) Mortality tables Stability of the group Morbidity tables - ANSWER>>Mortality tables Which of the following is true about immediate annuities? They have annuity periods that are sometime (defined in the contract) in the future They cannot be purchased with one payment. They can begin payouts within two years of the first premium payment. The do not have an accumulation period. - ANSWER>>The do have an accumulation period Bruce is concerned that the insurance company will "keep his money" if he dies before the income from his annuity has equaled the funds he deposited. Bruce feels that this is unfair. In this case he should consider which of the following options? A 10 year certain and life payment An installment refund annuity Choose the maximum income option Make minimum withdrawals without annuitizing - ANSWER>>An installment refund annuity Employer contributions are not taxable income to the employee. Interest earned is tax deferred. Employee contributions are made with pre-tax dollars. Proceeds of a qualified plan are not taxed. - ANSWER>>Proceeds of a qualified plan are not taxed. Which of the following statements is not true about the tax liabilities for individual life insurance policies? Accelerated benefits are tax free if they are qualified. Policy premiums are not deductible for an individual life insurance policy If a policy is surrendered for its cash value some of the cash value may be subject to ordinary income tax Policy loans are taxable as income. - ANSWER>>Policy loans are taxable as income. Fraternals typically sell what type of insurance? Life, accident and health insurance. Property insurance. Liability insurance. Accident and health insurance only. - ANSWER>>Life, accident and health insurance. Medicaid is a needs tested program. It provides medical benefits for the poor and indigent. It is funded as follows: Employer taxes based on payroll Payroll taxes from the employed Jointly funded by individual states and the federal government Part of Medicare - ANSWER>>Jointly funded by individual states and the federal government If Alexander buys a Medicare supplemental policy, what is the traditional probationary (waiting) period for coverage to be in effect? 90 days 30 days 60 days Immediately - ANSWER>>30 days The suicide clause is in most every policy. All of the following statements are not true about the suicide clause EXCEPT: The premiums are never refunded The death benefit is always paid. The death benefit is never paid. The death benefit is paid if the suicide occurs more than two years after the policy inception. - ANSWER>>The death benefit is paid if the suicide occurs more than two years after the policy inception. Margaret took out a whole life policy in 1999. In 2005 she committed suicide. What was the obligation of the insurer regarding the benefits of the policy? The insurer would pay ½ of the face value of the policy. Nothing - virtually all policies include a suicide exemption. The insurer would refund the premiums paid on the policy - to the beneficiary. The insurer would pay for full face amount of the policy. - ANSWER>>The insurer would pay for full face amount of the policy. To an attempt to prevent individuals intending to commit suicide from purchasing life insurance, insurance companies now include a suicide clause in all policies. What is the length of time that the suicide clause is in effect? 6 months 2 years 2 months 1 year - ANSWER>>2 years Short-term disability riders called ____________are available and provide benefits during the first 6-12 months of a claim. Hospital confinement rider Additional monthly benefit rider Social insurance supplement rider Impairment rider - ANSWER>>Additional monthly benefit rider Various riders and provisions affect how, when and how much the insured received in benefits. The _____________ limits income benefits based on the insured's income for the past two years. Cost of living adjustment (COLA) Impairment rider Future increase option (FIO) Relation of earnings - ANSWER>>Relation of earnings Timothy notices that the wording "Cancellable at the Option of Mutual Life". Timothy most likely has a: Optionally renewable policy Conditionally renewable policy Non-cancellable policy Non-renewable policy - ANSWER>>Optionally renewable policy A policy is issued on a non-cancellable basis. This means: The policy may not be cancelled by the insurance company, but the premiums may increase The policy may only be cancelled by the insurance company if they cancel the entire block of policies of this type. The policy may not be cancelled by the insurance company, and the premiums are guaranteed for the term of the policy. The insured may make changes in the policy without regard to current insurability rules. - ANSWER>>The policy may not be cancelled by the insurance company, and the premiums are guaranteed for the term of the policy. Someone that represents the insured and offers options from several different companies is called: All of the above The insurer The broker The agent - ANSWER>>The boker A unilateral contract is: Allows the "little guy" some rights over the person writing the contract. Insures that both parties are bound to perform A contract that makes a promise or promises in exchange for a performance Implies inequality of bargaining power - ANSWER>>A contract that makes a promise or promises in exchange for a performance Horace owns a health insurance policy that will not pay benefits unless he is confined to the hospital. This type of contract is known as a: A conditional contract A unilateral contract Non-cancellable contract A contract of adhesion - ANSWER>>A conditional contract If in the solicitation of a ________ sale, an insurer does not propose the replacement, and a replacement is involved, the insurer must send to the applicant with the policy a replacement. Insurance Indirect response Annuity Direct response - ANSWER>>Direct response What type of contract is described as variable annuities, investment annuities, variable life insurance under which the death benefits and cash values vary in accordance with unit values of investments held in a separate account? Non-registered contract Renewable contract Carry-over contract Registered contract - ANSWER>>Registered contract Your disability policy defines your eligibility for disability benefits as your inability, due to sickness or accident, to perform the essential duties of your occupation. That definition is known as: Residual Disability Own occupation for disability Any occupation for disability Both own occupation and any occupation - ANSWER>>Own occupation for disability All of the above - ANSWER>>All of the above The government is one of three primary types of insurers. Government insurance provides protections against fundamental risks. Which of the following is an example of a government insurance program? Social Security Blue Cross Lloyd's Associations All of the above - ANSWER>>Social Security Marsha left her company and died during the period allowed for her to convert her life insurance to an individual policy. What happens to the benefits of the policy? The insurer is no longer liable. The insurer discounts the death benefit because she had left the company. Her beneficiaries sue the insurance company for the benefits. The insurer pays the death benefit in full. - ANSWER>>The insurer pays the death benefit in full. There are generally two kinds of group insurance policies - contributory and noncontributory. In a noncontributory plan, all of the following are true EXCEPT: The employer pays all of the premiums Noncontributory plans have enrollment periods where the employees can enroll without proof of insurability. The employer and employee each pay part of the premium The contract for a noncontributory plan must cover 100% of the employees. - ANSWER>>The employer and employee each pay part of the premium Karl has become permanently disabled. Under his policy, the insurer is going to make periodic income payments to Karl. What kind of rider or provision does Karl have that results in this benefit? Waiver of premium rider Disability Income Benefit Payor rider Accelerated Benefit Rider - ANSWER>>Disability Income Benefit In addition to the Waiver of Premium Rider, Melvin's life policy also includes a Disability Income Benefit. Under what conditions will the insurer pay Melvin under the disability income benefit? Melvin has broken both of his legs Melvin has an injury that has rendered him permanently and totally disabled. Melvin's injuries will keep him in the hospital for at least 2 months. Melvin needs the money to pay his bills. - ANSWER>>Melvin has an injury that has rendered him permanently and totally disabled. Who of the following is eligible for Medi-Cal? Anne who is blind Nena who is on refugee status Maria who is in a foster care program All of the Above - ANSWER>>All of the Above Are deductions taken into consideration when determining the net monthly income of an applicant for the Healthy Family Program? No, deductions are not a consideration Yes, child support, alimony, work-related expenses, and child care Yes, but only child care expenses Yes, but only child support or alimony - ANSWER>>Yes, child support, alimony, work-related expenses, and child care Clarice is enrolling in the MRMIP program. She is concerned about the premiums and wants to know if the premiums will increase. Which of the following best explains whether the premiums will go up and under what circumstances? Yes, they increase 3 percent a year. No, the premiums do not increase. Yes, they increase 5 percent a year Yes, based on age, location and board decisions. - ANSWER>>Yes, based on age, location and board decisions. What is the annual out-of-pocket maximum for and individual and for households covered by MRMIP? Individuals - $2,500, households - $5,000 Individuals - $2,500, households - $4,000 Individuals - $1,000, households - $2,000 Individuals - $1,500, households - $3,000 - ANSWER>>Individuals - $2,500, households - $4,000 Who of the following is not considered eligible as a dependent of Mary, an insured employee under a group life insurance policy? Farah; Mary's 23-year-old daughter attending college Adam; Mary's 65-year-old husband Keith; Mary's 25-year-old married son, who is incapable of self-sustaining employment because of his handicap Gabrielle; Mary's 19-year-old daughter who is not in school - ANSWER>>Keith; Mary's 25-year-old married son, who is incapable of self-sustaining employment because of his handicap Long-term care policies have a variety of exclusions. All of the following are currently excluded EXCEPT: Alzheimer's Alcohol dependency Self-inflicted injury Drug dependency - ANSWER>>Alzheimer's An actuary is the individual who calculates what premium should be charged for a specific risk. In determining life premiums, the actuary uses all of the following factors EXCEPT: Mortality Morbidity Expense ratios Investment returns - ANSWER>>Morbidity When an insurer is determining how much premium to charge for a life insurance policy, the insurer considers all of the following EXCEPT: Expenses Earnings Morbidity Mortality - ANSWER>>Morbidity Annuities are not life insurance. Life insurance is protection against the risk of premature death. Annuities, on the other hand, are to protect against the risk of living too long. _____________ is the time between when the annuity is purchased and the time when benefits begin. A deferred annuity The annuity period The accumulation period A fixed annuity - ANSWER>>The accumulation period The accumulation period of an annuity is when funds are put in and growth occurs. All of the following are true about the accumulation period EXCEPT: The annuitant can earn interest on their interest. The principal earns interest Once the contract is made, the owner cannot make changes The interest earned by an annuity is not taxed as with other types investments - ANSWER>>Once the contract is made, the owner cannot make changes Which plan is most likely to have a pre-negotiated discount with various medical providers? ASO PPO TPA HMO - ANSWER>>PPO In an HMO a member may be required to have a primary physician to be the focal point for all treatment and service. All of the following are true about the primary care physician relationship EXECPT: The primary care physician is usually an internal medicine or general Practice doctor. The primary care physician will have records from all physicians and other providers in the HMO to coordinate the patient's treatment. The primary care physician will provide referrals to specialists and other providers when required. All reports ordered must comply with the Fair Credit Reporting Standards Act A copy of the Medical Information Bureau report which is sent to Jennifer when it is received. An investigation report may be ordered by the underwriter No insurance will be in effect until the medical examination is comple - ANSWER>>A copy of the Medical Information Bureau report which is sent to Jennifer when it is received. When Mr. Baker reached age 65, he started to receive Social Security benefits. He continued to work at his regular job. Did he have tax liability on his Social Security benefit payments? - ANSWER>>Yes if his income is greater than 25,000$ Retirement plans that meet the requirements of the Internal Revenue Code Section 401(a) and ERISA (Employee Retirement Income Security Act) are tax qualified, thus they are eligible for favorable tax treatment. Which of the following is a benefit of a qualified retirement plan? Employers can deduct contributions for each participant. Contributions, and earning on the contributions are tax deferred until withdrawn Transferring the contributions into a different IRA can further defer taxes All of the above - ANSWER>>All of the above Most insurers do not generally sell individual dental coverage. It is usually included in a group plan. Which of the following is not a common benefit in a dental plan? X-rays Fillings Cleaning Implants - ANSWER>>implants All of the following are true regarding the Insurance Information and Privacy Protection Act EXCEPT: The insured must allow any insurer to seek information concerning any previous adverse underwriting decision experienced by an individual Insurers must provide a notice of information practices to all applicants If the insured submits a written request to the insurer to access recorded personal information, which is reasonably retrievable, the insurer must respond to the individual within 30 days Personal information may only be collected from the policyholder, an insured under the policy, or from public records - ANSWER>>The insured must allow any insurer to seek information concerning any previous adverse underwriting decision experienced by an individual Which of the following statements regarding de-mutualization is false? The California Insurance Code defines de-mutualization as a process whereby a stock company becomes a mutual insurer Transformation of a stock insurer into a mutual insurer is termed mutualization, and the reverse is termed demutualization Because mutual insurers do not have capital stock, the funds required to start the company must be obtained from an individual or group of people It is fairly common for mutual insurers to start out as stock insurers to gain the necessary funds before becoming a mutual insurer - ANSWER>>The California Insurance Code defines de-mutualization as a process whereby a stock company becomes a mutual insurer Yvonne has been hospitalized and is presented with a bill for $19,500. She is covered by a major medical play that imposes a $500 deductible and pays 80% thereafter. Yvonne is limited to $2,500 for out-of- pocket expense. What will Yvonne have to pay for her part of the bill? $4,400 $3,000 $2,500 $3,900 - ANSWER>>$3,000 Which of the following is considered a reimbursement contract? Major medical contract Life insurance contract Disability income contract Accidental Death & Dismemberment contract - ANSWER>>Major medical contract On an Accident only policy, the wording "Accident Only Plan" must be prominently displayed where? It must be in bold type in the time limit for certain defenses section It must be in bold type on the front page of the policy It must be in bold type on a special insert before delivery It must be in bold type in the exclusions section - ANSWER>>It must be in bold type on the front page of the policy Gloria chose the prescription drug coverage as one of the options on her group policy. Which of the following is a benefit of a prescription drug policy? Prescriptions are for a set price Prescriptions can be refilled at any time Prescriptions are usually free Prescriptions are for a set, lower price - ANSWER>>Prescriptions are for a set, lower price Zanubia has a medical plan that reimburses based on general costs in her geographical area. This schedule is known as: URC (Usual, reasonable and customary) Scheduled benefits Pre-authorization plan Indemnity plan - ANSWER>>URC (Usual, reasonable and customary) All of the following provisions are mandatory under the uniform NAIC law EXCEPT: Grace period provision Reinstatement Provision Time payment of claims provision Coinsurance Provision - ANSWER>>Coinsurance Provision When soliciting insurance, agents and insurers must abide by the rules and regulations pertaining how solicitations are conducted. Which of the following is not a requirement of an advertisement to sell insurance? If a person offering a testimonial is paid, the advertisement must indicate that it is a paid endorsement. The advertisement must include the intent and the nature of the product being advertised. The name of the insurer must be stated in the advertisement. The trade name of the insurer must be included in the advertisement. - ANSWER>>The trade name of the insurer must be included in the advertisement. In any life insurance policy transaction, the agent must ask the applicant if the policy is replacing another policy. The applicant must sign a written statement indicating if a replacement is involved - or not. If a replacement is involved, the agent must do all of the following EXCEPT: Provide the applicant with a policy comparison statement Notify the insurer of the policy being replaced - of any policies to be replaced. List any and all of applicant's existing policies/annuities to be replaced. Provide the insurer with the signed statement from the applicant pertaining to replacement. - ANSWER>>Notify the insurer of the policy being replaced - of any policies to be replaced. There is a business disability insurance policy that will pay off a business' loan if the owner becomes disabled. This policy is called: Key person disability Disability buy-sell Business overhead expense Disability reducing term - ANSWER>>Disability reducing term Simon is a drug dealer most of the time. He is injured while engaging in that occupation. His health insurance policy will pay which of the following benefits for his loss? The company will pay the claim as it would for any other loss The policy is cancelled for fraud The company is required to notify the appropriate law enforcement agency when they discover the illegal activity The company is not liable under the illegal occupation provision - ANSWER>>The company is not liable under the illegal occupation provision The NAIC has developed uniform contract provision. These are known as the model health insurance policy provision. Of these provisions, some are mandatory and some are optional. Which of the following is not a mandatory provision? Misstatement of age Grace period Entire contract Incontestability - ANSWER>>Misstatement of age Pay a fee to the Commissioner Designate that they are acting as an insurance agent All of the above - ANSWER>>Designate that they are acting as an insurance agent When an insured purchases a life policy, he/she can decide how the proceeds of the policy will be paid. The policyowner can select all of the following settlement options EXCEPT: Interest only Life income option Lump sum payment Dividend option - ANSWER>>Dividend option A beneficiary may choose any of the following methods to receive life insurance proceeds EXCEPT: Life income installments Fixed amount installments Variable installments based on a specific stock index Single payment in cash - ANSWER>>Variable installments based on a specific stock index If a consumer requests in writing removal of their name from credit reporting agencies, for how much time is the request valid? 3 years 5 years 2 years Until the request is withdrawn - ANSWER>>Until the request is withdrawn If a consumer requests by phone removal of their name from credit reporting agencies, for how much time is the request valid? 5 years 3 years 2 years Until the request is withdrawn - ANSWER>>2 years Which of the following best completes the following statement: The California Insurance Code defines a person as ________________________________. An individual, an organization, or other business entity An individual An organization A business entity - ANSWER>>An individual, an organization, or other business entity The person who files the request for a claim payment is the ___________. Claimant Insured Dependent Claimee - ANSWER>>Claimant What is required of any accident and health agent who wishes to sell 24-hour care coverage? They must have at least 2 years insurance sales experience They must complete a program of instruction equal to the amount of hours required for prelicensing continuing education requirements They must pass an examination on 24-hour care coverage They demonstrate an expert level of knowledge on 24-hour care coverage to the Commissioner - ANSWER>>They must complete a program of instruction equal to the amount of hours required for prelicensing continuing education requirements All of the following are true regarding alterations made to a disability application EXCEPT: Alterations can be made by an agent who sees that the applicant has omitted information in filling out the application Alterations can be made by the insurer for administrative purposes in order to add insertions not ascribed to the applicant Alterations can be made by an officer of the insurer with the insurer's knowledge or consent The making of any other alteration without the consent of the applicant is a misdemeanor - ANSWER>>Alterations can be made by an agent who sees that the applicant has omitted information in filling out the application What cannot be used against applicants for insurance coverage? Dangerous past and current occupations Age Existence of AIDS or HIV All of the above - ANSWER>>Existence of AIDS or HIV Which of the following is not a pure risk? Risk of loss caused by destruction or theft of property. Risk of losing earning power caused by premature death or accident and sickness. Risk of losing or winning money while playing slots in a casino. Risk of financial loss caused by bodily injury or property damage to others'. - ANSWER>>Risk of losing or winning money while playing slots in a casino. In the process of underwriting an application for health insurance, an underwriter may request a report from an investigative agency. The law that requires the applicant be notified is: Freedom of information Act Uniform Provision Law Medical Information Bureau Disclosure Act Fair Credit Reporting Act - ANSWER>>Fair Credit Reporting Act An underwriter will consider which of the following conditions in making his/her decision to approve an application for health insurance? A childhood disease A condition that occurs after the policy is issued A condition that occurs prior to making an application for health insurance A condition that is contracted after the first premium is paid - ANSWER>>A condition that occurs prior to making an application for health insurance A Section 1035 Exchange serves what purpose? Allows for certain exchanges without recognizing gain for tax purposes. Allows for certain exchanges without recognizing loss for tax purposes. Both of the above Neither of the above - ANSWER>>Both of the above Which of the following will trigger a taxable event in regard to a 1035 transfer? Repayment of a loan Changing the beneficiary Changing the ownership of a plan Making a policy loan - ANSWER>>Making a policy loan Universal life policies are similar to whole life in that they ___________________. Both treat cash withdrawals as a partial surrender Both provide flexibility Both provide death protection and cash value Both provide fixed and guaranteed benefits. - ANSWER>>Both provide death protection and cash value Another type of universal life policy is called the equity indexed life policy. This policy is: Tied to a traditional life policy Combined with a term policy Linked to something like the S&P 500 All of the above. - ANSWER>>Linked to something like the S&P 500 Universal life was developed from whole life and they have the same two components - cash value and death protection. All of the statements are true about universal life policies EXCEPT: Universal life policies are only subject to the interest rates stated in the contract. The actual cost of the insurance is based on annually renewable term life insurance. The interest earned by the cash accounts has a guaranteed minimum. A policy used to fund an executive bonus plan - ANSWER>>A group insurance policy of one of the employees There are different classes of health insurance. Individual and group are classes that are distinctly different. Which of the following is a difference between individual and group policies? Individual policies are generally more expensive Group policies provide coverage for 2 or more people Group policies cover everyone regardless of risk All of the above - ANSWER>>All of the above A person that is disabled under Social Security is eligible for Medicare benefits after how long? 29 months (870 days) 5 months (150 days) Determined by a Medicare formula 24 months (720 days) - ANSWER>>29 months (870 days) All of the following acts are considered unfair trade practices EXCEPT: misrepresentation rebating. coercion. replacement. - ANSWER>>replacement Circulation of a maliciously critical statement about any insurer's financial condition to injure the insurer is called: coercion. defamation. conservation. unfair discrimination. - ANSWER>>defamation. What consequences does an insurer's or producer's use of unfair marketing or unfair claims habits have for the company or agent? The state Insurance Commission can reprimand the company and/or producer. The insurer and the producer can be sued in a civil court of neglect of ethical duty. The state Commissioner of Insurance can issue a Cease and Desist order They can be sued in criminal court for malfeasance - ANSWER>>The state Commissioner of Insurance can issue a Cease and Desist order In discussing a potentially lucrative group policy with a business owner who had purchased a business and just moved into the community, an established producer jokingly remarked, "Well, would it sweeten the pot if I could assure you membership in the country club?" He added, "I'm on the membership committee and while we're not accepting new application right now, I'm sure something could be worked out." These remarks constituted: misrepresentation. nothing more than an effort to establish a warm relationship with the potential client. rebating intimidation - ANSWER>>rebating Gloria did not opt out of Medicare Part B so she automatically pays a premium and has the coverage. Which of the following is not part of the Medicare Part B coverage? Home health care (if not covered under Part A) Doctor's services Nursing home Outpatient medical services - ANSWER>>Nursing home All of the following are true concerning taxation of medical benefits EXCEPT: Disability income may be taxable depending on who pays the premium Benefits paid from a hospital indemnity plan are not taxable. Medical reimbursement benefits are not taxable. Medical expenses deducted from income tax become taxable in the next year if they are reimbursed after the deduction is taken. - ANSWER>>Medical expenses deducted from income tax become taxable in the next year if they are reimbursed after the deduction is taken. Jeff has a disability income policy. He also has a Medicare supplement policy. How are the premiums for these policies treated on a tax basis? Medicare supplement premiums are deductible, disability income premiums are not. Neither is deductible Disability income premiums are deductible, Medicare supplement are not. Both are deductible - ANSWER>>Medicare supplement premiums are deductible, disability income premiums are not. James is gathering his tax information for his tax preparer. James is aware that certain medical expenses may qualify for a tax deduction, depending on his individual situation. James can use all of the following out of pocket expenses to see if he qualifies for a medical deduction EXCEPT Disability insurance premium Prescription Drugs Dental Expense Diabetic supplies - ANSWER>>Disability insurance premium Combinations plans are intended to be representative of the needs of the insured. One such plan is called the ___________________________. It combines ordinary life and level term insurance. It provides monthly income for a stated period of 10, 15, or 20 years, or to an age - as selected by the insured. Family income policy Endowment policy Family protection policy Family maintenance policy - ANSWER>>Family maintenance policy There are advantages and disadvantages related to the various types of policies. Which of the following is not a type of whole life policy? Limited-Payment Industrial Economatic Continuous Premium - ANSWER>>Industrial