WebCE Practice Exams A+ Solutions
2024(100% Correct)
Which medical plan covers doctor visits while the insured is in the hospital and physical
therapy treatments following release from the hospital?
limited medical policy
basic hospital expense policy
comprehensive major medical insurance
supplementary major medical insurance - ANS-comprehensive major medical insurance
A comprehensive major medical plan covers hospital expenses and doctor and surgeon
fees. A basic hospital expense policy covers the cost of hospitalization, but not
physician's fees.
Upon the lapse or surrender of a permanent life insurance policy, the cash value is
available to the policyowner in the form of:
distribution options
nonforfeiture options
surrender options
settlement options - ANS-nonforfeiture options
Nonforfeiture options give policyowners several ways to receive a policy's cash value
upon lapse or surrender of the policy.
Medicare Part A provides reasonable and medically necessary hospital care for how
long?
21 days
60 days
30 days
Inpatient hospital care is not covered. - ANS-60 days
For a Medicare Part A beneficiary, a benefit period begins on the day of admittance to
,the hospital. That benefit period ends 60 days after release from the hospital.
When received in a lump sum, how are life insurance death benefits commonly taxed to
the beneficiary?
Death benefits from a life insurance policy are generally taxable to the beneficiary.
Fifty percent of death benefits from a life insurance are taxable to the beneficiary.
Death benefits from a life insurance policy are generally not taxable to the beneficiary.
Death benefits from a life insurance policy are received tax deferred. - ANS-Death
benefits from a life insurance policy are generally not taxable to the beneficiary.
When received in a lump sum, the death benefits from a life insurance policy are
generally not taxable to the beneficiary.
For tax purposes, the term "self-employed person" includes all of the
following, EXCEPT:
a sole proprietor
a C corporation's officers
a partner
an S corporation owner who owns more than 2 percent of the outstanding shares -
ANS-a C corporation's officers
A pregnant woman marries and is covered by her spouse's employer's group health
plan. Will the plan cover the child?
Yes, after the woman applies for coverage on behalf of the child.
Yes, from the moment of birth.
No, because the pregnancy was a pre-existing condition.
No, because dependents must be covered under a separate policy. - ANS-Yes, from the
moment of birth.
HMOs must provide their subscribers (enrollees) with evidence of coverage, which must
include all the following EXCEPT
the HMO's contact information
a list of all approved medical care providers in the HMO's network
a description of the coverage provided by the plan
an explanation of the capitation arrangement the HMO has with providers in its network
- ANS-a list of all approved medical care providers in the HMO's network
,On June 1, Sandra submitted proof of her uncle's death and her right as beneficiary to
receive the proceeds of his life insurance policy. A life insurance policy settlement must
take place by:
July 1
June 15
August 1
December 31 - ANS-August 1
A policy settlement must take place no later than two months after the date of receipt of
proof of the insured's death and the right of the claimant to the policy proceeds.
Which of the following types of health insurance covers the cost of medical care and
medical services?
disability income insurance
medical expense insurance
accidental death and dismemberment (AD&D) insurance
Medicare supplement insurance - ANS-medical expense insurance
Medicare supplement policies offer private insurance coverage that supports and
enhances the care and services Medicare covers.
Congress amended the Medicaid spend-down rules to eliminate:
spousal abuse
spousal participation
spousal impoverishment
spousal abandonment - ANS-spousal impoverishment
At one time, requiring Medicaid applicants to reduce their assets often resulted in the
impoverishment of the spouse. Today, spouses are protected from this unintended
consequence.
Which of the following best describes how group life insurance premiums are treated for
tax purposes?
The employer can deduct its premiums as a business expense, but employees cannot
deduct their premium contributions.
, The employer can deduct its premiums as a business expense, and employees can
deduct their premium contributions on their tax returns.
Employees can deduct their premium contributions on their tax returns, but the
employer cannot deduct its premiums.
Neither employees nor their employers can deduct group life premiums on their tax
returns. - ANS-The employer can deduct its premiums as a business expense, but
employees cannot deduct their premium contributions.
While employer contributions are deductible as a business expense, employee
contributions are not tax deductible, though they can help reduce the tax impact of
employer contributions.
What kind of policy only covers cancer, stroke, heart attack, and Parkinson's disease?
medical surgical expense policy
catastrophic medical policy
limited disability policy
specified disease policy - ANS-specified disease policy
Specified disease policies only cover hospital or dental expenses, or they can cover a
specific disease or condition.
If a person receives funds directly from a qualified pension plan and intends to roll them
over to an IRA, within how many days must the rollover be completed?
30 days
60 days
120 days
180 days - ANS-60 days
Which of the following is NOT a method used for providing accelerated benefits?
additional premium or cost of insurance charge method
percentage of death benefit method
actuarial discount method
lien method - ANS-percentage of death benefit method
Where no additional premium or cost of insurance charge is payable in advance by the
policy holder, and the acceleration-of-life-insurance benefit is not reduced by a present
2024(100% Correct)
Which medical plan covers doctor visits while the insured is in the hospital and physical
therapy treatments following release from the hospital?
limited medical policy
basic hospital expense policy
comprehensive major medical insurance
supplementary major medical insurance - ANS-comprehensive major medical insurance
A comprehensive major medical plan covers hospital expenses and doctor and surgeon
fees. A basic hospital expense policy covers the cost of hospitalization, but not
physician's fees.
Upon the lapse or surrender of a permanent life insurance policy, the cash value is
available to the policyowner in the form of:
distribution options
nonforfeiture options
surrender options
settlement options - ANS-nonforfeiture options
Nonforfeiture options give policyowners several ways to receive a policy's cash value
upon lapse or surrender of the policy.
Medicare Part A provides reasonable and medically necessary hospital care for how
long?
21 days
60 days
30 days
Inpatient hospital care is not covered. - ANS-60 days
For a Medicare Part A beneficiary, a benefit period begins on the day of admittance to
,the hospital. That benefit period ends 60 days after release from the hospital.
When received in a lump sum, how are life insurance death benefits commonly taxed to
the beneficiary?
Death benefits from a life insurance policy are generally taxable to the beneficiary.
Fifty percent of death benefits from a life insurance are taxable to the beneficiary.
Death benefits from a life insurance policy are generally not taxable to the beneficiary.
Death benefits from a life insurance policy are received tax deferred. - ANS-Death
benefits from a life insurance policy are generally not taxable to the beneficiary.
When received in a lump sum, the death benefits from a life insurance policy are
generally not taxable to the beneficiary.
For tax purposes, the term "self-employed person" includes all of the
following, EXCEPT:
a sole proprietor
a C corporation's officers
a partner
an S corporation owner who owns more than 2 percent of the outstanding shares -
ANS-a C corporation's officers
A pregnant woman marries and is covered by her spouse's employer's group health
plan. Will the plan cover the child?
Yes, after the woman applies for coverage on behalf of the child.
Yes, from the moment of birth.
No, because the pregnancy was a pre-existing condition.
No, because dependents must be covered under a separate policy. - ANS-Yes, from the
moment of birth.
HMOs must provide their subscribers (enrollees) with evidence of coverage, which must
include all the following EXCEPT
the HMO's contact information
a list of all approved medical care providers in the HMO's network
a description of the coverage provided by the plan
an explanation of the capitation arrangement the HMO has with providers in its network
- ANS-a list of all approved medical care providers in the HMO's network
,On June 1, Sandra submitted proof of her uncle's death and her right as beneficiary to
receive the proceeds of his life insurance policy. A life insurance policy settlement must
take place by:
July 1
June 15
August 1
December 31 - ANS-August 1
A policy settlement must take place no later than two months after the date of receipt of
proof of the insured's death and the right of the claimant to the policy proceeds.
Which of the following types of health insurance covers the cost of medical care and
medical services?
disability income insurance
medical expense insurance
accidental death and dismemberment (AD&D) insurance
Medicare supplement insurance - ANS-medical expense insurance
Medicare supplement policies offer private insurance coverage that supports and
enhances the care and services Medicare covers.
Congress amended the Medicaid spend-down rules to eliminate:
spousal abuse
spousal participation
spousal impoverishment
spousal abandonment - ANS-spousal impoverishment
At one time, requiring Medicaid applicants to reduce their assets often resulted in the
impoverishment of the spouse. Today, spouses are protected from this unintended
consequence.
Which of the following best describes how group life insurance premiums are treated for
tax purposes?
The employer can deduct its premiums as a business expense, but employees cannot
deduct their premium contributions.
, The employer can deduct its premiums as a business expense, and employees can
deduct their premium contributions on their tax returns.
Employees can deduct their premium contributions on their tax returns, but the
employer cannot deduct its premiums.
Neither employees nor their employers can deduct group life premiums on their tax
returns. - ANS-The employer can deduct its premiums as a business expense, but
employees cannot deduct their premium contributions.
While employer contributions are deductible as a business expense, employee
contributions are not tax deductible, though they can help reduce the tax impact of
employer contributions.
What kind of policy only covers cancer, stroke, heart attack, and Parkinson's disease?
medical surgical expense policy
catastrophic medical policy
limited disability policy
specified disease policy - ANS-specified disease policy
Specified disease policies only cover hospital or dental expenses, or they can cover a
specific disease or condition.
If a person receives funds directly from a qualified pension plan and intends to roll them
over to an IRA, within how many days must the rollover be completed?
30 days
60 days
120 days
180 days - ANS-60 days
Which of the following is NOT a method used for providing accelerated benefits?
additional premium or cost of insurance charge method
percentage of death benefit method
actuarial discount method
lien method - ANS-percentage of death benefit method
Where no additional premium or cost of insurance charge is payable in advance by the
policy holder, and the acceleration-of-life-insurance benefit is not reduced by a present
