Idaho Life and Health Final Exam|| 120
QUESTIONS || CORRECT ANSWERS
What are the benefits that must be provided by an individual health insurance policy for
prenatal, maternity, and delivery expenses? - ANSWER Prenatal, maternity, and
delivery expenses are required to be covered under all health plans subject to the same
deductible and coinsurance as other medical and surgical expenses.
Which situation would qualify an individual for receiving benefits from a qualified long-
term care policy? - ANSWER Becoming cognitively impaired (mentally ill)
How many days is the grace period for payment of premiums in individual life insurance
policies? - ANSWER 30
According to the Idaho Insurance Code, which of the following MUSt a producer do
when replacing a Life Insurance policy? - ANSWER Submit to the replacing insurer a list
of all Life Insurance policies or annuity contracts proposed to be replaced.
A hospital or medical expenses policy will typically cover dental treatment expenses
under which circumstance? - ANSWER Dental treatment is needed to repair an injury.
An insured and the policy's beneficiary die from the same accident. The common
disaster provision states the insurer will continue as if - ANSWER The insured outlived
the beneficiary.
A closed network plan offers a primary physical copay of $25. If a subscriber chooses a
primary care physician outside of the network, the subscriber will likely pay - ANSWER
100% of the allowed amount.
In what part of an insurance policy are policy benefits found? - ANSWER Declarations.
The Declaration page is like a quick guide to in insurance policy, providing all of the
basic information the policy holder needs to know.
Which of the following is NOT included in an entire contract provision? - ANSWER
Changes made by the producer.
A producer's fiduciary responsibility includes which of the following activities? -
ANSWER Being responsible for all funds collected from clients.
Which part of the following does Medicare Part D cover? - ANSWER Prescription drugs.
Which of the following would be considered an underwriting duty of an agent? -
ANSWER Completing all applications and collecting initial premiums.
, Which of the following is not considered advertising? - ANSWER A rating from a rating
service such as A.M Best.
All of these statements concerning whole life insurance are false EXCEPT - ANSWER
When a whole life policy is surrendered, income taxes may be owed.
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because - ANSWER The MEC tends to be
an investment vehicle.
Which of the following would be a valid reason why a policy premium would be higher
than the standard premium? - ANSWER The insured does not meet established
underwriting requirements.
A rehabilitation benefit is intended to - ANSWER Prepare the insured to return to
employment.
Which of the following statements is TRUE regarding life policy replacement? -
ANSWER Patterns of improper replacement may subject an insurer to disciplinary
action.
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called - ANSWER Variable Whole Life.
Coordination of Benefits regulation applies to all of the following plans EXCEPT -
ANSWER Preferred Provider Organization plan; Coordination of Benefits regulation on
group health policies does not apply to individual health insurance policies.
Which of the following does restorative dental treatment cover? - ANSWER Crowns;
Restorative dentistry is the procedure for restoring the function and integrity of missing
tooth structures. Examples include fillings, crowns, and dental bridges.
Sonya applies for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15 with
the policy effective date being May 30. On which date would Sonya have coverage? -
ANSWER May 30.
What is an authorized insurer? - ANSWER A company that is authorized by the director
to transact insurance business in Idaho.
When a preferred provider organization (PPO) insured goes out-of-network, which of
the following actions occur? - ANSWER The insurer will pay a reduced amount.
All of the following riders can increase the death benefit amount EXCEPT:
Cost of Living, Waiver of Premium, Accidental Death Rider, or Guaranteed Insurability. -
ANSWER Waiver of Premium.
QUESTIONS || CORRECT ANSWERS
What are the benefits that must be provided by an individual health insurance policy for
prenatal, maternity, and delivery expenses? - ANSWER Prenatal, maternity, and
delivery expenses are required to be covered under all health plans subject to the same
deductible and coinsurance as other medical and surgical expenses.
Which situation would qualify an individual for receiving benefits from a qualified long-
term care policy? - ANSWER Becoming cognitively impaired (mentally ill)
How many days is the grace period for payment of premiums in individual life insurance
policies? - ANSWER 30
According to the Idaho Insurance Code, which of the following MUSt a producer do
when replacing a Life Insurance policy? - ANSWER Submit to the replacing insurer a list
of all Life Insurance policies or annuity contracts proposed to be replaced.
A hospital or medical expenses policy will typically cover dental treatment expenses
under which circumstance? - ANSWER Dental treatment is needed to repair an injury.
An insured and the policy's beneficiary die from the same accident. The common
disaster provision states the insurer will continue as if - ANSWER The insured outlived
the beneficiary.
A closed network plan offers a primary physical copay of $25. If a subscriber chooses a
primary care physician outside of the network, the subscriber will likely pay - ANSWER
100% of the allowed amount.
In what part of an insurance policy are policy benefits found? - ANSWER Declarations.
The Declaration page is like a quick guide to in insurance policy, providing all of the
basic information the policy holder needs to know.
Which of the following is NOT included in an entire contract provision? - ANSWER
Changes made by the producer.
A producer's fiduciary responsibility includes which of the following activities? -
ANSWER Being responsible for all funds collected from clients.
Which part of the following does Medicare Part D cover? - ANSWER Prescription drugs.
Which of the following would be considered an underwriting duty of an agent? -
ANSWER Completing all applications and collecting initial premiums.
, Which of the following is not considered advertising? - ANSWER A rating from a rating
service such as A.M Best.
All of these statements concerning whole life insurance are false EXCEPT - ANSWER
When a whole life policy is surrendered, income taxes may be owed.
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because - ANSWER The MEC tends to be
an investment vehicle.
Which of the following would be a valid reason why a policy premium would be higher
than the standard premium? - ANSWER The insured does not meet established
underwriting requirements.
A rehabilitation benefit is intended to - ANSWER Prepare the insured to return to
employment.
Which of the following statements is TRUE regarding life policy replacement? -
ANSWER Patterns of improper replacement may subject an insurer to disciplinary
action.
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called - ANSWER Variable Whole Life.
Coordination of Benefits regulation applies to all of the following plans EXCEPT -
ANSWER Preferred Provider Organization plan; Coordination of Benefits regulation on
group health policies does not apply to individual health insurance policies.
Which of the following does restorative dental treatment cover? - ANSWER Crowns;
Restorative dentistry is the procedure for restoring the function and integrity of missing
tooth structures. Examples include fillings, crowns, and dental bridges.
Sonya applies for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15 with
the policy effective date being May 30. On which date would Sonya have coverage? -
ANSWER May 30.
What is an authorized insurer? - ANSWER A company that is authorized by the director
to transact insurance business in Idaho.
When a preferred provider organization (PPO) insured goes out-of-network, which of
the following actions occur? - ANSWER The insurer will pay a reduced amount.
All of the following riders can increase the death benefit amount EXCEPT:
Cost of Living, Waiver of Premium, Accidental Death Rider, or Guaranteed Insurability. -
ANSWER Waiver of Premium.
