FINAL EXAM- Maryland Life and Health
Questions With Correct Answers
A disability income insurance policy was recently issued with a rating. What does
| | | | | | | | | | | | |
this mean?
|
a) Policyowner will be charged an additional premium
| | | | | | |
b) Policy will have specific illnesses excluded from coverage
| | | | | | | |
c) Policyowner will be charged a reduced premium
| | | | | | |
d) Policy will have a longer waiting period - CORRECT ANSWER✔✔-Policyowner
| | | | | | | | | | |
will be charged an additional premium
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A comprehensive major medical health insurance policy contains an Eligible
| | | | | | | | | |
Expenses provision which identifies the types of health care services that are
| | | | | | | | | | | |
covered. All of the following health care services are typically covered EXCEPT for
| | | | | | | | | | | |
a) hospital charges
| |
b) physician fees
| |
,c) experimental and investigative services
| | | |
d) nursing services - CORRECT ANSWER✔✔-Experimental and investigative
| | | | | | | |
services
Newborn children are automatically covered under an existing family medical
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plan at the moment of birth for a period of at least ____ days.
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a) 10
|
b) 15
|
c)30
d) 31 - CORRECT ANSWER✔✔-31 days
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In what way is a life insurance policy affected by an accelerated benefit payment?
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a) Decreases the premiums
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b) Extends the grace period
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c) Increases the policy loan balance
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d) Decreases the death benefit - CORRECT ANSWER✔✔-Decreases the death
| | | | | | | | | |
benefit
,Which of these is NOT considered to be a cost connected with an individual's
| | | | | | | | | | | | | |
death?
a) Funeral expense
| |
b) Tax liability
| |
c) Business expenses
| |
d) Probate costs - CORRECT ANSWER✔✔-Business expenses
| | | | | |
The Food and Drug Administration approves prescription drugs for treatment as
| | | | | | | | | | |
stated on the drug's labeling. The prescription of a drug for treatments other than
| | | | | | | | | | | | |
what's labeled is know as ____ use
| | | | | | |
a) illegal
|
b) trial
|
c) generic
|
d) off- label - CORRECT ANSWER✔✔-off-label
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An employee requested that the balance of her 401(k) account be sent directly to
| | | | | | | | | | | | |
|her in one lump sum. Upon receipt of the distribution, she immediately had the
| | | | | | | | | | | | | |
funds rolled over into an IRA. What is the tax consequence of the distribution
| | | | | | | | | | | | | |
sent to this employee?
| | |
, a) Distribution is subject to capital gains tax
| | | | | | |
b) Distribution is subject to ordinary income tax
| | | | | | |
c) Distribution is subject to a tax penalty
| | | | | | |
d) Distribution is subject to federal income tax withholding - CORRECT
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ANSWER✔✔-Distribution is subject to federal income tax withholding | | | | | | |
The type of health insurance in which underwriting procedures are the most
| | | | | | | | | | | |
restrictive is | |
a) accidental
|
b) individual
|
c) group
|
d) employer-paid - CORRECT ANSWER✔✔-Individual
| | | |
An insurance producer who replaces an existing policy by making false written or
| | | | | | | | | | | | |
oral statements is committing the act of
| | | | | |
a) twisting
|
b) inducement
|
c) coercion
|
d) intimidation - CORRECT ANSWER✔✔-Twisting
| | | |
Questions With Correct Answers
A disability income insurance policy was recently issued with a rating. What does
| | | | | | | | | | | | |
this mean?
|
a) Policyowner will be charged an additional premium
| | | | | | |
b) Policy will have specific illnesses excluded from coverage
| | | | | | | |
c) Policyowner will be charged a reduced premium
| | | | | | |
d) Policy will have a longer waiting period - CORRECT ANSWER✔✔-Policyowner
| | | | | | | | | | |
will be charged an additional premium
| | | | |
A comprehensive major medical health insurance policy contains an Eligible
| | | | | | | | | |
Expenses provision which identifies the types of health care services that are
| | | | | | | | | | | |
covered. All of the following health care services are typically covered EXCEPT for
| | | | | | | | | | | |
a) hospital charges
| |
b) physician fees
| |
,c) experimental and investigative services
| | | |
d) nursing services - CORRECT ANSWER✔✔-Experimental and investigative
| | | | | | | |
services
Newborn children are automatically covered under an existing family medical
| | | | | | | | | |
plan at the moment of birth for a period of at least ____ days.
| | | | | | | | | | | | |
a) 10
|
b) 15
|
c)30
d) 31 - CORRECT ANSWER✔✔-31 days
| | | | |
In what way is a life insurance policy affected by an accelerated benefit payment?
| | | | | | | | | | | | |
a) Decreases the premiums
| | |
b) Extends the grace period
| | | |
c) Increases the policy loan balance
| | | | |
d) Decreases the death benefit - CORRECT ANSWER✔✔-Decreases the death
| | | | | | | | | |
benefit
,Which of these is NOT considered to be a cost connected with an individual's
| | | | | | | | | | | | | |
death?
a) Funeral expense
| |
b) Tax liability
| |
c) Business expenses
| |
d) Probate costs - CORRECT ANSWER✔✔-Business expenses
| | | | | |
The Food and Drug Administration approves prescription drugs for treatment as
| | | | | | | | | | |
stated on the drug's labeling. The prescription of a drug for treatments other than
| | | | | | | | | | | | |
what's labeled is know as ____ use
| | | | | | |
a) illegal
|
b) trial
|
c) generic
|
d) off- label - CORRECT ANSWER✔✔-off-label
| | | | |
An employee requested that the balance of her 401(k) account be sent directly to
| | | | | | | | | | | | |
|her in one lump sum. Upon receipt of the distribution, she immediately had the
| | | | | | | | | | | | | |
funds rolled over into an IRA. What is the tax consequence of the distribution
| | | | | | | | | | | | | |
sent to this employee?
| | |
, a) Distribution is subject to capital gains tax
| | | | | | |
b) Distribution is subject to ordinary income tax
| | | | | | |
c) Distribution is subject to a tax penalty
| | | | | | |
d) Distribution is subject to federal income tax withholding - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Distribution is subject to federal income tax withholding | | | | | | |
The type of health insurance in which underwriting procedures are the most
| | | | | | | | | | | |
restrictive is | |
a) accidental
|
b) individual
|
c) group
|
d) employer-paid - CORRECT ANSWER✔✔-Individual
| | | |
An insurance producer who replaces an existing policy by making false written or
| | | | | | | | | | | | |
oral statements is committing the act of
| | | | | |
a) twisting
|
b) inducement
|
c) coercion
|
d) intimidation - CORRECT ANSWER✔✔-Twisting
| | | |
