SC Accident. Health, and Life Insurance
(2024/2025) Exam Questions with Verified
Correct Answers || Already Graded A+
<LATEST VERSION>
What is it called when a health insurer will pay 100$ of covered medical expenses
once the insured has paid a maximum out-of-pocket amount? - ANSWER ✔ Stop-
loss coverage
The department responsible for evaluation, selection and distribution of risks is: -
ANSWER ✔ Underwriting department
If a person gives an erroneous statement on an application unintentionally, this is:
- ANSWER ✔ False
Which of the following is a description of a Life and Disability Analyst? -
ANSWER ✔ A person licensed to advise clients about life and disability insurance
for a fee
Certain healthcare providers are called "service type providers." This means: -
ANSWER ✔ Payments for services are made directly to the provider
FYI Company's employee is injured while driving in the employ of the company.
Coverage for the employee comes from: - ANSWER ✔ FYI's Workers
Compensation
An individual might purchase LTC protection out of concern for all of the
following, EXCEPT: - ANSWER ✔ Ineligibility for Medigap coverage
A disability income policy social insurance supplement (SIS) benefit rider: -
ANSWER ✔ Provides a benefit if the insured does not qualify for social insurance
benefits
, Which of the following applies to the social insurance program known as social
security? - ANSWER ✔ Contributions are compulsory for most workers
Which of the following in NOT provided by Hospice Care? - ANSWER ✔
Rehabilitation
In health insurance the coinsurance is - ANSWER ✔ a percentage paid for
covered expenses by the insured and insurer after the deductible is satisfied
In insurance terms a representation can be considered: - ANSWER ✔ An implied
warranty
An insurer organized under the laws of the State of California is a: - ANSWER ✔
Domestic insurer
A beneficiary wants to receive $2,000 per month until the principal and interest
are exhausted. Which settlement option should be chosen? - ANSWER ✔ Fixed
amount option
An organization will cease to exist as an entity eligible to hold a license for all of
the following reasons, EXCEPT: - ANSWER ✔ Termination of a key employee
Joe receives a large bonus at work and decides to purchase an annuity with it. His
monthly income payments from the annuity will begin the following month. Which
of the following has Joe purchased? - ANSWER ✔ Single Premium Immediate
Annuity
Which of the following is true about life insurance beneficiary designations? -
ANSWER ✔ If there is no surviving beneficiary, the death benefit is paid to the
insured's estate
The clause that protects the proceeds of a life insurance policy from attachment by
creditors after the death of the insured is: - ANSWER ✔ Spendthrift trust clause
Which of the following is not an example of cost sharing in a health insurance
policy? - ANSWER ✔ Coordination
, All of the following are true statements concerning the treatment of federal
income tax on life insurance, EXCEPT: - ANSWER ✔ Annuity death benefit
proceeds are exempt from all taxation
In managed care, the members' choice of providers is most restrictive in which of
the following type of plan? - ANSWER ✔ HMO
An insured an beneficiary die in a car accident and it is impossible to determine
who died first. Who will receive the life insurance proceeds? - ANSWER ✔ The
insured's estate
Renewable term insurance can be best described as: - ANSWER ✔ A level death
benefit with an increase in premium
A distinct feature of the alternative funding method known as self-funding is: -
ANSWER ✔ The benefits are tailored to the needs of the participants
A variable annuity applicant requests that the premium be immediately invested in
a stock portfolio. The policy is returned to the insurer within the cancellation
period. What is the applicant entitled to receive? - ANSWER ✔ The policy amount
value on the date the policy was received by the insurer
Individual - ANSWER ✔ Which type of beneficiary should be named if the
insured wants to give explicit directions on how the policy proceeds should be
paid?
Policy Ownership - ANSWER ✔ Which of the following would evidence
ownership in a participating health insurance contract?
Group HMO - ANSWER ✔ An HMO that involves a partnership of physicians
and other providers who practice out of a central facility is called a(n)
7 days - ANSWER ✔ In South Carolina, health policies that are paid less frequent
than monthly must provide a grace period of at least
2 years - ANSWER ✔ An insurance policy may NOT be cancelled by the insurer
(except for fraud) after ____ year(s) from policy issue.
, Part A - ANSWER ✔ Hospital Insurance, helps pay for inpatient hospital care,
inpatient care in a skilled nursing facility, home health care and hospice care
Part B - ANSWER ✔ Medical Insurance, financed from monthly premiums paid
by insureds and from the general revenues of the federal government
Part C - ANSWER ✔ Allows people to receive all of their health care services
through available provider organizations
Part D - ANSWER ✔ Prescription Drug coverage
Part A - Initial Enrollment - ANSWER ✔ when an individual first becomes
eligible for Medicare (starting 3 months before turning 65, ending 3 months after
their 65th birthday)
Part A - General Enrollment - ANSWER ✔ between January 1st and March 31st
each year
Part A - Special Enrollment - ANSWER ✔ at any time during the year if the
individual or his/her spouse is still employed and covered under a group health
plan
Failure to Sign up for Part A - ANSWER ✔ If an individual fails to sign up for
Part A when they are first eligible, the monthly premium may go up 10% unless
the person become eligible for a special enrollment period.
Part B - Enrollment - ANSWER ✔ You will get and have to pay for Part B unless
you decline, when you become eligible for Part A.
Once declined, you must wait until the next general enrollment period.
Medicare Advantage - ANSWER ✔ Was originally called Medicaere + Choice.
Was changed in 2003 as a result of The Medical Modernization Act of 2003.
Medicare Advantage Eligibility - ANSWER ✔ Beneficiaries must be enrolled in
Parts A and B.
(2024/2025) Exam Questions with Verified
Correct Answers || Already Graded A+
<LATEST VERSION>
What is it called when a health insurer will pay 100$ of covered medical expenses
once the insured has paid a maximum out-of-pocket amount? - ANSWER ✔ Stop-
loss coverage
The department responsible for evaluation, selection and distribution of risks is: -
ANSWER ✔ Underwriting department
If a person gives an erroneous statement on an application unintentionally, this is:
- ANSWER ✔ False
Which of the following is a description of a Life and Disability Analyst? -
ANSWER ✔ A person licensed to advise clients about life and disability insurance
for a fee
Certain healthcare providers are called "service type providers." This means: -
ANSWER ✔ Payments for services are made directly to the provider
FYI Company's employee is injured while driving in the employ of the company.
Coverage for the employee comes from: - ANSWER ✔ FYI's Workers
Compensation
An individual might purchase LTC protection out of concern for all of the
following, EXCEPT: - ANSWER ✔ Ineligibility for Medigap coverage
A disability income policy social insurance supplement (SIS) benefit rider: -
ANSWER ✔ Provides a benefit if the insured does not qualify for social insurance
benefits
, Which of the following applies to the social insurance program known as social
security? - ANSWER ✔ Contributions are compulsory for most workers
Which of the following in NOT provided by Hospice Care? - ANSWER ✔
Rehabilitation
In health insurance the coinsurance is - ANSWER ✔ a percentage paid for
covered expenses by the insured and insurer after the deductible is satisfied
In insurance terms a representation can be considered: - ANSWER ✔ An implied
warranty
An insurer organized under the laws of the State of California is a: - ANSWER ✔
Domestic insurer
A beneficiary wants to receive $2,000 per month until the principal and interest
are exhausted. Which settlement option should be chosen? - ANSWER ✔ Fixed
amount option
An organization will cease to exist as an entity eligible to hold a license for all of
the following reasons, EXCEPT: - ANSWER ✔ Termination of a key employee
Joe receives a large bonus at work and decides to purchase an annuity with it. His
monthly income payments from the annuity will begin the following month. Which
of the following has Joe purchased? - ANSWER ✔ Single Premium Immediate
Annuity
Which of the following is true about life insurance beneficiary designations? -
ANSWER ✔ If there is no surviving beneficiary, the death benefit is paid to the
insured's estate
The clause that protects the proceeds of a life insurance policy from attachment by
creditors after the death of the insured is: - ANSWER ✔ Spendthrift trust clause
Which of the following is not an example of cost sharing in a health insurance
policy? - ANSWER ✔ Coordination
, All of the following are true statements concerning the treatment of federal
income tax on life insurance, EXCEPT: - ANSWER ✔ Annuity death benefit
proceeds are exempt from all taxation
In managed care, the members' choice of providers is most restrictive in which of
the following type of plan? - ANSWER ✔ HMO
An insured an beneficiary die in a car accident and it is impossible to determine
who died first. Who will receive the life insurance proceeds? - ANSWER ✔ The
insured's estate
Renewable term insurance can be best described as: - ANSWER ✔ A level death
benefit with an increase in premium
A distinct feature of the alternative funding method known as self-funding is: -
ANSWER ✔ The benefits are tailored to the needs of the participants
A variable annuity applicant requests that the premium be immediately invested in
a stock portfolio. The policy is returned to the insurer within the cancellation
period. What is the applicant entitled to receive? - ANSWER ✔ The policy amount
value on the date the policy was received by the insurer
Individual - ANSWER ✔ Which type of beneficiary should be named if the
insured wants to give explicit directions on how the policy proceeds should be
paid?
Policy Ownership - ANSWER ✔ Which of the following would evidence
ownership in a participating health insurance contract?
Group HMO - ANSWER ✔ An HMO that involves a partnership of physicians
and other providers who practice out of a central facility is called a(n)
7 days - ANSWER ✔ In South Carolina, health policies that are paid less frequent
than monthly must provide a grace period of at least
2 years - ANSWER ✔ An insurance policy may NOT be cancelled by the insurer
(except for fraud) after ____ year(s) from policy issue.
, Part A - ANSWER ✔ Hospital Insurance, helps pay for inpatient hospital care,
inpatient care in a skilled nursing facility, home health care and hospice care
Part B - ANSWER ✔ Medical Insurance, financed from monthly premiums paid
by insureds and from the general revenues of the federal government
Part C - ANSWER ✔ Allows people to receive all of their health care services
through available provider organizations
Part D - ANSWER ✔ Prescription Drug coverage
Part A - Initial Enrollment - ANSWER ✔ when an individual first becomes
eligible for Medicare (starting 3 months before turning 65, ending 3 months after
their 65th birthday)
Part A - General Enrollment - ANSWER ✔ between January 1st and March 31st
each year
Part A - Special Enrollment - ANSWER ✔ at any time during the year if the
individual or his/her spouse is still employed and covered under a group health
plan
Failure to Sign up for Part A - ANSWER ✔ If an individual fails to sign up for
Part A when they are first eligible, the monthly premium may go up 10% unless
the person become eligible for a special enrollment period.
Part B - Enrollment - ANSWER ✔ You will get and have to pay for Part B unless
you decline, when you become eligible for Part A.
Once declined, you must wait until the next general enrollment period.
Medicare Advantage - ANSWER ✔ Was originally called Medicaere + Choice.
Was changed in 2003 as a result of The Medical Modernization Act of 2003.
Medicare Advantage Eligibility - ANSWER ✔ Beneficiaries must be enrolled in
Parts A and B.
