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Indiana Life and Health
Terms in this set (35)
Which of the following individuals would be a likely candidate to purchase a deferred annuity?
a) Someone who needs to start receiving benefit payments within 6 months of the annuity purchase.
b) Someone who wants to leave the death benefit to the beneficiaries.
c) Someone who cannot afford life insurance.
d) Someone who wants to grow retirement funds tax deferred.
If a life insurance policy is purchased by someone who has no insurable interest in the insured, it is considered
a) A STOLI policy
b) Estate liquidation
c) Third-party ownership
d) A specialized policy
Which of the following would NOT trigger the payment of Accelerated Death Benefits?
a) Requiring an organ transplant for the insured to survive.
b) Being permanently institutionalized.
c) Being permanently disabled.
d) Terminal Illness
When may HIV-related test results be provided to the MIB?
a) Only if the individual is not identified.
b) Under all circumstances.
c) When given authorization by the patient.
d) Only when the test results are negative.
An elimination period may NOT have to be satisfied for a disability in which of the following?
a) An insured suffers a relapse of a prior disability within 6 months of the initial covered disability.
b) An insured suffered the disability from the results of active duty with the US Armed Forces.
c) An insured is disabled from a work-related accident.
d) An insured contracts an incurable disease.
Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician?
a) Assisted living
b) Skilled care
c) Intermediate care
d) Custodial care
A Major Medical Expense policy would exclude for all of the following treatments EXCPET
a) Cosmetic surgery
b) Drug addiction
c) Eye refractions
d) Dental care
An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?
a) No penalty
What is the purpose of the impairment rider in health insurance policy?
a) To identify pre-existing conditions.
b) To exclude coverage for a specific impairment.
c) To cover impairments that otherwise could not be covered.
d) To provide disability coverage.
What is the maximum age that a disabled insured worker may receive Social Security disability benefits?
c) For life with no maximum age limit.
The "stop-loss" feature on a major medical policy is intended to
a) Establish a maximum amount of out-of-pocket expenses that an insured will have to pay for medical expenses in a calendar year.
b) Establish a maximum amount of out-of-pocket expenses that an insured will have to pay for medical expenses for the life of the policy.
c) Discourage insured from making unnecessary appointments at the doctor's office.
d) Establish the number of claims that may be filed on a policy in a calendar year.
Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs?
a) Employers looking to provide cost effective group life insurance for their employers may choose annual renewable term.
b) Applicants who may require a larger death benefit in the future should buy convertible term insurance.
c) Applicants concerned with the increasing cost of living should purchase increasing term.
d) Applicants wishing to pay off a mortgage should they suffer a premature death might buy a decreasing term plan.
All of the following are characteristics of group health insurance plan EXCEPT
a) The benefits under a group plan are more extensive than those under individual plans.
b) The parties that hold a group health insurance contract are the employees and the employers.
c) The cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan.
d) Employers may require the employees to contribute to the premium payments.
Which of the following statements is NOT true regarding health insurance policy provisions?
a) All individual policies contain Universal Mandatory Provisions.
b) Insurers may only offer optional provisions that are allowed by the state where the policy is delivered.
c) Insurers may add provisions that are not in conflict with uniform standards.
d) All additional provisions written by the insurers are cataloged by their respective states.
Which of the following is NOT mandatory under the Uniform Provisions Law as applied to accident and health policies?
a) Physical Examination and Autopsy.
b) Entire Contract.
c) Probationary Period.
d) Time Limit on Certain Defenses.
Which of the following describes the relationship between a capital sum and a principal sum.
a) Principal sums vary, while capital sums do not.
b) Capital sums vary, while principal sums do not.
c) Principal sums are percentages of capital sums.
d) Capital sums are percentages of principal sums.
An employee has a Flexible Spending Account with a $5,000 annual benefit. This year the employee used $3,000. What would be the amount of the benefit available to the employee next year.
What happens to the face amount of a whole life policy if the insured reaches the age of 100?
a) It is paid to the insured's estate and the policy is terminated.
b) It is paid to the beneficiary in full.
c) The cash value and the face amount are paid to the insured.
d) The face amount is paid to the insured.
Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?
a) Skilled care
b) Intermediate care
c) Custodial Care
d) Home health care
HMO's are known as what type of plans?
a) Consumer driven
d) Health savings
If an insured pays a health insurance premium each month, how long would the grace period be under the policy?
a) 7 days
b) 10 days
c) 14 days
d) 25 days
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
a) Joint and Survivor
b) Fixed Amount
c) Fixed Period
d) Interest Only
All of the following must sign an application for health insurance EXCEPT the
a) The proposed insured.
Life insurance creates an immediate estate. Which of the following best explains this statement?
a) The face value of the policy is payable to the beneficiary upon death of the insured.
b) The policy has cash values and nonforfeiture values.
c) The policy generates immediate cash value.
d) The death benefit will always be paid to the estate of the insured.
The entire contract includes all of the following EXCEPT
a) A buyer's guide.
b) The life insurance policy
c) A copy of the application
d) Any riders or amendments.
A husband and wife both incur expenses that are attributed to a single major medical insurance deductibles. Which type of deductible do they have in their policy?
c) Per occurrence
Which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value?
a) Credit life
b) Variable whole life
c) Interest-based life
d) Universal life
Regarding health insurance, all of the following are tax-deductible EXCEPT
a) Employer paid group Accidental Death and Dismemberment.
b) Employee paid group disability income.
c) Employer paid group health
d) Employers paid group Long-Term Care
What is the purpose of a benefit schedule?
a) To list the insured's copayments and deductibles.
b) To state what and how much is covered in the plan.
c) To include the average charges for procedures.
d) To provide the dates for the payment of benefits.
Regarding the PPACA health care tax credit, which of the following is true?
a) Tax credits are based upon a taxpayer's or family's expected annual medical expenses.
b) All wage earners who purchase a health care insurance are eligible for the tax credit.
c) Tax credits are sent to the tax payer to reduce monthly insurance premiums.
d) Persons receiving Medicaid are not eligible.
An insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?
a) Treatment is subject to an annual dollar maximum.
b) The condition must be covered under the insured's plan.
c) The condition is covered if the insured's plan specifies the condition.
d) Treatment is subject to pre-existing conditions exclusions.
What do Life Insurance Replacement (Rule 16.1), Advertising Rule (13) and Solicitation (Rule 24) rules have in common?
a) They are prepared by the NAIC.
b) They are disclosure rules.
c) They are privacy protection rules.
d) They protect insurance companies and producers.
According to the Life Insurance Solicitation Rule 24, what would be defined as cost?
a) The dividend projections.
b) The difference between what the insured pays and what he gets in return.
c) The amount the insured pays in premium.
d) The difference between what the insured pays in premium and what the insurer spends in administrative expenses.
All of the following are features of catastrophic plans EXCEPT
a) Out-of-pocket costs
b) High deductibles
c) Essential benefits
d) High premiums
Which of the following is NOT true?
a) A consultant may not be compensated by a producer.
b) A producer may act as a consultant.
c) A licensed consultant may hold a producer license.
d) A consultant is licensed to give advice for a fee.
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