OHIO HEALTH AND ACCIDENT INSURANCE QUESTIONS XCEL

OHIO HEALTH AND ACCIDENT INSURANCE QUESTIONS XCEL "Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage? a) standard deductible b) combined deductible c) integrated deductible d) blended deductible - CORRECT ANSWER c) integrated deductible" "Which is likely to occur when life or health insurance is being applied for? a) The medical information bureau (MIB) will determine the risk classification b) The agent is required to report all medical information to the medical information bureau (MIB) c) Physical examinations are required d) Medical history from the insured may be reviewed and reported - CORRECT ANSWER d) Medical history from the insured may be reviewed and reported" "Advertisements for accident and health policies that ONLY cover a stated illness MUST display a statement that the a) policy premiums remain level b) policy is limited c) policy is guaranteed issued d) policy covers any illness or accident - CORRECT ANSWER b) policy is limited" "In what form do disability income policies typically pay benefits? a) lump sum b) periodic income c) tax credit d) annuity - CORRECT ANSWER b) periodic income" "The reinstatement provision in a health insurance policy is a) mandatory b) optional c) voluntary d) discretionary - CORRECT ANSWER a) mandatory" "In an insurance contract, the element that shows each party is giving something of value is called a) offer b) acceptance c) consideration d) purpose - CORRECT ANSWER c) consideration" "All of these are characteristics of a major medical expense policy EXCEPT a) large benefit maximums b) deductibles c) elimination periods d) coinsurance - CORRECT ANSWER c) elimination periods" "Unmarried children who are incapable of self support and have proof of incapacity are included under their parent's health coverage until a) Policy termination b) policy renewal c) age 18 d) age 19 - CORRECT ANSWER a) Policy termination" "A common exclusion or limitation on a dental policy is a) endodontics b) tooth extractions c) flouride treatments d) x-rays - CORRECT ANSWER a) endodontics" "All _____ policies must be guaranteed renewable a) dental b) long-term care c) critical illness d) disability - CORRECT ANSWER b) long-term care" "Tom has a home health care benefit and is confined to his home. Which of these benefits is NOT typically covered? a) Part-time nursing care b) Full-time nursing care c) Physical therapy d) Home health aides - CORRECT ANSWER b) Full-time nursing care" "Key Person Disability Insurance pays benefits to the a) hospital b) employee c) employer d) employee's creditors - CORRECT ANSWER c) employer" "All of these are considered key factors in underwriting health insurance EXCEPT a) Tobacco use b) Health history c) Age d) Marital status - CORRECT ANSWER d) Marital status" "Who provides all preventative and routine medical care given to a health insuring corporation (HIC) member? a) Primary care physician b) HIC director c) Clinical care nurse d) Wellness association - CORRECT ANSWER a) Primary care physician" "Who is required to notify the agent in the event of appointment termination? a) insurer b) superintendent c) governor d) attorney general - CORRECT ANSWER a) insurer" "Coordination of benefits regulation applies to all of the following plans EXCEPT a) Group vision plan b) Preferred Provider Organization Plan c) self-funded group health plan d) group health plan - CORRECT ANSWER b) preferred provider organization plan" "An agent's license may only be suspended or revoked if the agent a) has been afforded a right to a hearing b) has engaged in replacement of an existing policy c) filed for bankruptcy d) did not meet sales quota - CORRECT ANSWER a) has been afforded a right to a hearing" "An insurer can exclude coverage for a preexisting condition on a Medicare Supplement policy for up to a) 6 months b) 9 months c) 12 months d) 18 months - CORRECT ANSWER a) 6 months" "A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called? a) recurrent period b) probationary period c) benefit period d) elimination period - CORRECT ANSWER c) benefit period" "All of the following are qualifications for establishing a health savings account (HSA) EXCEPT a) Enrolled in a high deductible plan b) Be under the age of 65 (not enrolled in medicare) c) Enrolled in a health plan with a prescription drug benefit d) Enrolled in a health plan that limits out of pocket expenses - CORRECT ANSWER c) Enrolled in a health plan with a prescription drug benefit" "A Medicare Supplement basic benefit is a) the first 3 pints of blood per year b) respite care c) disability income d) term life insurance - CORRECT ANSWER a) the first 3 pints of blood per year" "States that have "no loss no gain" laws require a replacing policy to a) keep the same type of coverage as the policy replaces b) not charge a different premium from the policy it replaces c) pay for any half of any ongoing claims under the policy it replaces d) pay for ongoing claims under the policy it replaces - CORRECT ANSWER d) pay for ongoing claims under the policy it replaces" "The typical long-term care insurance policy is designed to provide a minimum of _____ year(s) of coverage: a) 1 b) 3 c) 5 d) 7 - CORRECT ANSWER a) 1" "If an agent is believed to be causing considerable harm, the superintendent a) may incarcerate the agent b) may suspend the agent's license without a hearing c) may issue a cease and desist order against the agent d) may take away the agent's appointment - CORRECT ANSWER c) may issue a cease and desist order against the agent" "Health insurance involves two perils, accident and ________ a) death b) sickness c) disability d) liability - CORRECT ANSWER b) sickness" "A person covered with an individual health plan a) is issued a policy b) is issued a certificate of medical costs c) does not contract directly with the insurance company d) is not subject to medical underwriting - CORRECT ANSWER a) is issued a policy" "Insurance agent Kelly offers a $1,000 shopping card if an insurance policy is purchased through her. What illegal activity is this an example of? a) defamation b) twisting c) rebating d) coercion - CORRECT ANSWER c) rebating" "A client told an intentional lie to an insurer in order to receive a favorable premium. This is an example of a) rebating b) boycotting c) fraud d) misrepresentation - CORRECT ANSWER c) fraud" "An agent's appointment may only be terminated by the a) Superintendent b) insurer c) agent d) NAIC - CORRECT ANSWER b) insurer" "The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule? a) Long Term care insurance premiums b) Dread Disease insurance premiums c) Travel accidental insurance premiums d) Individual disability income insurance premiums - CORRECT ANSWER a) Long Term care insurance premiums" "How much does Medicare Part B pay for physician fees? a) 40% b) 60% c) 80% d) 100% - CORRECT ANSWER c) 80%" "An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with? a) USA Patriot Act b) Personal Information Act c) Fair Credit Reporting Act 'd) McCarren-Ferguson Act - CORRECT ANSWER c) Fair Credit Reporting Act" "Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care? a) Custodial care homes b) Assisted living facilities c) Skilled nursing facilities d) Congregate housing - CORRECT ANSWER b) Assisted living facilities" "The role of the federal government was expanded when Medicaid was established by allowing the state to a) form a large PPO on a statewide level b) purchase health insurance from the federal government c) receive matching funds to expand public assistance programs d) defer all costs to the federal government for public assistance programs - CORRECT ANSWER c) receive matching funds to expand public assistance programs" "An indemnity plan a) pays both the insured and health care provider b) provides the insured a specific dollar amount for services c) pays the health care provider directly for services rendered d) is typically issued as a group plan - CORRECT ANSWER b) provides the insured a specific dollar amount for services" "An agent has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime? a) US Attorney General b) Superintendent c) Lieutenant Governor d) State Senate - CORRECT ANSWER a) US Attorney General" "All of the following may be an unfair claims practice EXCEPT a) Turning down a claim without providing the basis of denial b) Denying an insured's fraudulent claim c) Failing to promptly acknowledge pertinent communications concerning claims d) Failing to effectuate prompt, fair, and equitable settlements of a claim - CORRECT ANSWER b) Denying an insured's fraudulent claim" "According to HIPPA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual a) Is eligible upon hire b) Must wait 360 days to be eligible for coverage c) Must continue coverage with previous employer d) Is eligible for only health insurance, not life or accidental insurance - CORRECT ANSWER a) Is eligible upon hire" "An insured has a health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses. This list is called a a) loss chart b) benefit summary c) benefit schedule d) coverage menu - CORRECT ANSWER c) benefit schedule" "Long-Term care insurance applications MUST contain plain and unambiguous health questions. The exception to this rule would be applications for a) inflation riders b) guaranteed issue c) nonguaranteed issue d) secondary issue - CORRECT ANSWER b) guaranteed issue" "Which of the following is NOT typically included under "hospital care" for most health insuring corporation (HIC) plans? a) Private duty nursing b) Mental illness treatment c) Diagnostic lab services d) X-rays - CORRECT ANSWER a) Private duty nursing" "Ron has a new employer and wishes to enroll in the company's group health plan. In determining whether his pre-existing health condition applies, Ron cannot have more than a ___ day gap without previous health insurance. a) 45 b) 63 c) 75 d) 90 - CORRECT ANSWER b) 63" "Legal purpose is term used in contract law meaning a) there must be an offer and acceptance b) the contract must be aleatory c) there must be legal reasons for entering into the contact d) the contract must be a contract of adhesion - CORRECT ANSWER c) there must be legal reasons for entering into the contact" "Which of the following is NOT considered advertising? a) A rating from a rating service company, such as A.M. Best b) An illustration c) A sales presentation d) Direct mailing from an agency - CORRECT ANSWER a) A rating from a rating service company, such as A.M. Best" "An advertisement for an insurance product may contain a) the Guaranty Fund's endorsement for this product b) exaggerated benefit amounts c) deceptive information d) the insurer's name - CORRECT ANSWER d) the insurer's name" "A pharmacy benefit covers prescription drugs derived from a list called a(n) a) administrative drug list b) drug formulary c) controlled substance list d) generic benefit manager - CORRECT ANSWER b) drug formulary" "When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? a) Relation of earnings to insurance provision b) Change of occupation provision c) Conformity of state statues provision d) Modified occupation provision - CORRECT ANSWER b) Change of occupation provision" "An insurer has the right to recover payment made to the insured from the negligent party. These rights are called a) contributory b) indemnity c) estoppel d) subrogation - CORRECT ANSWER d) subrogation" "What percentage of a participant's income are group long-term disability benefit amounts typically limited to? a) 30% b) 40% c) 50% d) 60% - CORRECT ANSWER d) 60%" "An example of a health insuring corporation (HIC) specialty care provider is a(n) a) neurologist b) general practitioner c) family medicine physician d) HIC medical doctor - CORRECT ANSWER a) neurologist" "An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT a) providing disclosure information to the applicant b) collecting initial premium c) policy delivery d) providing commission information to the applicant - CORRECT ANSWER d) providing commission information to the applicant" "Which of the following provides Medicare supplement policies? a) Medicare b) Medicaid c) Private insurance companies d) Associations and employers - CORRECT ANSWER c) Private insurance companies" "Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a a) Total disability b) Recurrent disability c) Presumptive disability d) Lengthy elimination period - CORRECT ANSWER c) Presumptive disability" "People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called a) risk retention b) preexisting conditions c) law of large numbers d) adverse selection - CORRECT ANSWER d) adverse selection" "Carole is a licensed agent who lives in Michigan and transacts insurance in Ohio. In Ohio, Carole is considered to be a(n) a) alien agent b) reciprocal agent c) nonresident agent d) foreign agent - CORRECT ANSWER c) nonresident agent" "A common exclusion with Vision plans is a) eyeglass frames b) the examination c) contact lenses d) lasik surgery - CORRECT ANSWER d) lasik surgery" "All of the following are functions of an insuring clause EXCEPT a) States the conditions under which the policy will pay b) Outlines the kind of benefits provided c) Primarily describes the free-look period d) Provides the policy's scope and limits of coverage - CORRECT ANSWER c) Primarily describes the free-look period" "All of these are responsibilities of the superintendent EXCEPT a) Administering oaths b) Subpoena a witness c) Approving policy forms d) Endorsing insurers - CORRECT ANSWER d) Endorsing insurers" "The first payment for newborn accident and health coverage is due ___ days after birth a) 45 b) 31 c) 30 d) 14 - CORRECT ANSWER b) 31" "Generally speaking, which three levels of care are Long-Term Care policies provided with? a) Disability, acute care, and hospitalzation b) Accident, medical care, and rehabilitation c) Psychological, acute care, and assisted living d) Skilled nursing, intermediate, and custodial care - CORRECT ANSWER d) Skilled nursing, intermediate, and custodial care" "Which of these do NOT provide primary care to HIC members? a) Family medicine physician b) Surgeon c) Pediatrician d) General practitioner - CORRECT ANSWER b) Surgeon" "Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will NOT pay for charges exceeding the approved amount? a) Medicaid b) Long-Term care c) Medicare supplement Plan F d) Comprehensive major medical - CORRECT ANSWER c) Medicare supplement Plan F" "An insurance company advertises an accident and health insurance product in a local Ohio newspaper and refers to dollar amount benefits. This insurer must also disclose which of the following in the advertisement? a) The Superintendent's signature endorsement b) The number of claims filed in the previous year c) Any applicable benefit reduction d) The company's underwriting guidelines - CORRECT ANSWER c) Any applicable benefit reduction" "An employer with under 20 employees must allow a terminated employee to continue accident and health coverage for a MINIMUM of ___ months a) 3 b) 6 c) 12 d) 18 - CORRECT ANSWER c) 12" "Medical expense Insurance would cover a) an injury occurring at the insured's residence b) an injury occurring at work c) an injury caused by war d) elective surgeries - CORRECT ANSWER a) an injury occurring at the insured's residence" “What is the purpose of the Medical Information Bureau? a) To accept or decline insurance applicants b) To set the premium rates for insurers c) To help underwriters evaluate risk d) To perform physical examinations on applicants - CORRECT ANSWER c) To help underwriters evaluate risk" "Credit and Health plans are designed to a) permit creditors the ability to require that coverage be purchased through insurers of their choice b) provide permanent protection c) help pay off existing loans during periods of disability d) not permit free choice of coverage selection - CORRECT ANSWER c) help pay off existing loans during periods of disability" "Sonya applied 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 indicating the effective date being May 30. On which date would Sonya have coverage? a) April 1 b) April 6 c) May 15 d) May 30 - CORRECT ANSWER d) May 30" "Which of the following is NOT an eligible dependent on an Accident and Health policy? a) 27 year old married child b) 25 year old married child c) 19 year old full time student d) unmarried disabled child - CORRECT ANSWER a) 27 year old married child" "In which of the following situations would the insurer be liable for a loss? a) The insured skipped a payment beyond the 31 day grace period b) The insured was injured while participating in an illegal occupation c) The insured was given a notice of cancellation from the insurer d) The insured suffered an injury as an innocent bystander during a bank robbery - CORRECT ANSWER d) The insured suffered an injury as an innocent bystander during a bank robbery" "Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability? a) recurrent b) any occupation c) own occupation d) presumptive - CORRECT ANSWER c) Own occupation" "A Medicare supplement policy must NOT contain benefits which a) charge additional premiums b) duplicate medicare benefits c) cover more than medicare coverage d) are covered by workers compensation - CORRECT ANSWER b) duplicate medicare benefits" "Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to its participants? a) Multiple Employer Welfare Arrangement (MEAWA) b) Multiple Trust Arrangement (MTA) c) Multiple Purchasing Groups (MPG) d) Fraternal Benefit Society - CORRECT ANSWER a) Multiple Employer Welfare Arrangement (MEAWA)" "Which of these preventative care services is NOT provided by health insuring corporation (HIC) primary care physicians? a) Child immunizations b) Routine examinations c) Adult hearing screenings d) well-baby examinations - CORRECT ANSWER c) Adult hearing screenings" "Which situation would qualify an individual for receiving benefits from a qualified long term-care policy? a) becoming unemployed b) becoming temporarily disabled c) becoming injured on the job d) becoming cognitively impaired (mentally ill) - CORRECT ANSWER d) becoming cognitively impaired (mentally ill)" "A medicare supplement plan can be canceled by the insurer a) after the probation period b) for any changes in the insured's health c) anytime d) for nonpayment of premiums - CORRECT ANSWER d) for nonpayment of premiums" "Joe is a Medicare participant who receives his benefits through a Managed Health Care Plan. Which Medicare plan does he have? a) Part A b) Part B c) Part C d) Part D - CORRECT ANSWER c) Part C" "A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) a) conditionally renewability clause b) optional renewability clause c) selective renewability clause d) cancelable clause - CORRECT ANSWER b) optional renewability clause" "The election of COBRA for continuation of health coverage will a) increase the coverage and lower premium b) maintain the same coverage and increase premium c) increase out-of-pocket costs and lower premium d) decrease out-of-pocket costs and maintain same premium - CORRECT ANSWER b) maintain the same coverage and increase premium" "As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with average annual wages of less than $50,000 may be eligible for a tax credit of ___ of the premiums paid by the employer. a) 30% b) 40% c) 50% d) 60% - CORRECT ANSWER c) 50%" "Coverage for newborns under an accident and health plan MUST include coverage for a) lost wages of the mother b) disability of the mother c) birth abnormalities d) delivery costs - CORRECT ANSWER c) birth abnormalities" "An insurer may refuse to renew an employer's small group health plan due to a) excessive filing of claims b) decrease in the number of employees c) employer's bankruptcy status d) nonpayment of premium - CORRECT ANSWER d) nonpayment of premium" "Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy? a) health of applicant b) amount of benefits provided c) age of applicant d) personal income - CORRECT ANSWER d) Personal income" "Someone needing custodial care at home would require which type of coverage? a) major medical b) disability c) long-term care d) medicaid - CORRECT ANSWER c) Long-term care" "The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? a) discreet b) apparent c) implied d) express - CORRECT ANSWER c) implied" "Which of the following statements regarding Group Disability Income Insurance is TRUE? a) It pays 100% or more of an insured's income in the event of disability b) It provides benefits for nonoccupational illness and injuries c) It is generally more expensive than individual policies d) It usually pays for occupation-related disabilities - CORRECT ANSWER b) It provides benefits for nonoccupational illness and injuries" "Which of these is NOT considered a supplemental health insuring corporation (HIC) service? a) outpatient medical services b) foot care sevices c) dental care d) chiropractic care - CORRECT ANSWER a) outpatient medical services" "When the principal gives the agent authority in writing, it's referred to as a) express authority b) implied authority c) apparent authority d) imposed authority - CORRECT ANSWER a) express authority" "Confidentiality of health information (as stated by Ohio HIC laws) applies to information supplied by a) the providers only b) both by the covered individuals and by providers c) credit bureaus d) the covered individual only - CORRECT ANSWER b) both by the covered individuals and by providers" "Long-Term care policies or certificates issued in Ohio are required to have a) a nonforfeiture value b) conditional renewal provision c) a disability rider d) permanent level premiums - CORRECT ANSWER a) a nonforfeiture value" "Paul is an employee who caught a disease unique to the trade in which he was exposed to. Paul has a(n) a) genetic predisposition b) worksite malady c) contagious disease d) occupational disease - CORRECT ANSWER d) occupational disease" "A fee for service health insurance plan will normally cover a) vitamins and natural remedies b) cosmetic procedures c) gym membership d) a disease - CORRECT ANSWER d) a disease" "Which of the following is NOT a required provision in an accident and health insurance policy? a) legal actions b) grace period c) change of occupation d) reinstatement - CORRECT ANSWER c) change of occupation" "A non-admitted insurer a) may sell insurance policies in this state b) is not afforded protection by the guaranty fund c) only applies to foreign insurers d) may only sell insurance policies through non-admitted agents - CORRECT ANSWER b) is not afforded protection by the guaranty fund" "Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n) a) crossover b) conversion c) exchange d) extension of benefits - CORRECT ANSWER b) conversion" "An example of a primary care physician would be a(n) a) internist b) psychologist c) endocrinologist d) chiropractor - CORRECT ANSWER a) internist" "Which of these is NOT a TRUE statement regarding HIC's a) urgent care services are provided b) HIC's must establish a complaint system c) HIC's operate on a prepayment basis d) Benefits are provided on a reimbursement basis - CORRECT ANSWER d) Benefits are provided on a reimbursement basis" "Respite care is able to provide a) permanent relief to the patient's primary caregiver b) health care to the patient's primary caregiver c) weekly benefit payments to supplement the primary caregiver's income d) temporary relief to the patient's primary caregiver - CORRECT ANSWER d) temporary relief to the patient's primary caregiver" "Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? a) Stop renewing policy when the insured reaches a specified age b) Cancel policy if premiums are not paid c) Increase the premiums on an individual basis d) increase the premiums on the basis of an entire classification - CORRECT ANSWER c) Increase the premiums on an individual basis" "An example of endodontic treatment is a a) bridge b) crown c) filling d) root canal - CORRECT ANSWER d) root canal" "What is considered to be the primary reason for buying life insurance? a) Provide death benefits b) Provide money for retirement c) Provide living benefits d) Provide money for college - CORRECT ANSWER a) Provide death benefits" "When a preferred provider organization (PPO) insured goes out-of-network, which of the following actions occur? a) The insured will pay a reduced amount b) The benefits are taxable c) The insured has lower out-of-pocket expenses d) The insurer will pay a reduced amount - CORRECT ANSWER a) The insured will pay a reduced amount" "The elimination period under a hospital indemnity plan is a) the period in which pre-existing conditions are not taken into consideration b) the period in which all deductibles are eliminated c) the specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness d) the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization - CORRECT ANSWER d) the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization" "An agent's renewal date for his/her license is on or before a) the first day of the licensee's birth month b) January 1 every 2 years c) the last day of the licensee's birth month d) December 31 every year - CORRECT ANSWER c) the last day of the licensee's birth month" "What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? a) warranty b) guarantee c) representation d) collateral - CORRECT ANSWER c) representation" "Which of the following is required for an insurer to conduct business in this state? a) certificate of admission b) certificate of domestication c) certificate of authenticity d) certificate of authority - CORRECT ANSWER d) certificate of authority" "HIPPA considers which of the following as "individually identifiable health information"? a) a person's employment history b) a person's net income c) a person's hire date d) a person's health claim information - CORRECT ANSWER d) a person's health claim information" "Which of the following does Coordination of Benefits allow? a) Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid b) Allows both a group health plan and individual health plan to coordinate their benefit payments c) Allows the deductible to be spread out between all the health providers d) Allows each health provider to pay 100% of the claim - CORRECT ANSWER a) Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid" "In most dental plans, a deductible typically is NOT applied to a) preventative and diagnostic services b) restorative dentistry c) orthodontics d) oral surgery - CORRECT ANSWER a) preventative and diagnostic services" "What amount will be paid under a policy where the insured misstated his/her age? a) The amount stated in the policy, only if the insured pays an additional premium b) No adjustments will be made c) An amount the premium would have purchased at the correct age d) No amount will be paid because the insured misstated his/her age - CORRECT ANSWER c) An amount the premium would have purchased at the correct age" "Which of the following would be considered an underwriting duty of an agent? a) Requesting medical information from the Medical Information Bureau (MIB) b) Completing all applications and collecting initial premiums c) Accepting or declining an application d) Assigning a risk classification - CORRECT ANSWER b) Completing all applications and collecting initial premiums" "An employer is issued a group medical insurance policy. This single contract is known as a(n) a) entire contract b) master policy c) certificate of coverage d) employer contract - CORRECT ANSWER b) master policy" "Loss of income insurance provides a) an individual the means to replace wages b) an individual the ability to collect workers compensation c) an individual the ability to continue with medical coverage after a disability d) unlimited income replacement to a disabled person - CORRECT ANSWER a) an individual the means to replace wages" "What is known as the immediate specific event causing loss and giving rise to risk? a) Peril b) Hazard c) Loss factor d) Liability - CORRECT ANSWER a) Peril" "Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA? a) It would be considered taxable income to the employee b) The employee would not be allowed to an HSA c) The employer would pay payroll tax and FICA on the contribution amount d) The employer would not be allowed to deduct the contribution from the employee's pay - CORRECT ANSWER a) It would be considered taxable income to the employee" "Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? a) $1,000 b) $3,000 c) $5,000 d) $7,000 - CORRECT ANSWER c) $5,000" "Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? a) The amount contributed by an employer b) The amount contributed by the owner c) The underlying account investments used d) The medical expenses paid for by the HSA - CORRECT ANSWER a) The amount contributed by an employer" "Which of the following does Medicare Part D cover? a) Intensive care coverage b) Doctor visits c) Prescription drugs d) Hospital coverage - CORRECT ANSWER c) Prescription drugs" "An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in a) Risk reduction b) Risk transference c) Risk avoidance d) Risk retention - CORRECT ANSWER c) Risk avoidance" "Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? a) Medicare in-hospital deductible b) Dental work c) Nutritional supplements d) Chiropractic care - CORRECT ANSWER a) Medicare in-hospital deductible" "Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium? a) 14 day waiting period / 5 year benefit period b) 14 day waiting period / 10 year benefit period c) 28 day waiting period / 5 year benefit period d) 28 day waiting period / 10 year benefit period - CORRECT ANSWER b) 14 day waiting period / 10 year benefit period" "Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? a) He's not eligible for Medicare b) His group health plan and Medicare pay 50/50 c) Medicare is the secondary payer d) Medicare is the primary payer - CORRECT ANSWER c) Medicare is the secondary payer" "Continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician is called a) adult day care b) home health care c) skilled nursing care d) custodial care - CORRECT ANSWER c) skilled nursing care" "Pete the agent recently had his license suspended because he was found to be in violation of a state insurance law. Due to this suspension, Pete a) will be eligible for license reinstatement in 3 months b) will lose his ability for an appeal c) may not be in any communication with current clients regarding the suspension d) may be assessed the administrative costs sustained by the Department - CORRECT ANSWER d) may be assessed the administrative costs sustained by the Department" "The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is tax deductible. Which of the following may be considered a medical expense under this rule? a) Long Term Care Insurance premiums b) Dread Disease Insurance premiums c) Travel Accidental Insurance premiums d) Individual Disability Income Insurance premiums - CORRECT ANSWER a) Long Term Care Insurance premiums"