RMI 3011 FINAL FSU EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE
2025/2026
What are the major problems in the US healthcare system? - Answers Rising healthcare
expenditures'large number of uninsured in the population
Waste and inefficiency
Harmful insurer practices
What and who does the Affordable Care Act provide coverage for? - Answers It extends
healthcare coverage to millions of uninsured Ed Americans, provides substantial subsides to
uninsured individuals and small business firms t make health insurance more affordable,
contains provisions to lower healthcare costs in the long run, and prohibits insurers from
engaging in certain practices that harm policyholders and insurance applicants.
What is individual medical expense insurance? - Answers It is a policy hat covers an individual or
family for covered medical expenses due to sickness or injury. Consumers have a choice of
numerous policy options with various deductibles, coinsurance, copayment, and premium
amounts.
What characteristics do Policies sold in the Health Insurance Marketplace have? - Answers No
lifetime or annual limits
Broad range of benefits
Colander-year deductible
Coinsurance
Copayment
Out-of-pocket maximum limits
Exclusions
What is the health savings account? - Answers It is a high-deductible medical expense plan with
an investment account that receives favorable tax treatment.
What happens to the contributions made in a health savings account? - Answers The
contributions go into an investment account and are income-tax deductible
What happens to the investment income made in a health savings account? - Answers The
income builds up income-tax free
What happens to the withdraws made in a health savings account? - Answers The withdraws
are income-tax free when used to pay for qualified medical expenses.
,How is Long-term care insurance benefit's paid? - Answers It pays daily or monthly benefits for
medical or custodial care in a nursing facility or at home
What are the major types of Long-term care policies? - Answers Expense-incurred
Indemnity
Life Insurance
Deferred Annuity
What does the Expense-incurred policy include? - Answers It pays a daily or monthly benefit limit
for covered expenses incurred for long-term care up to the policy limits.
What does the Indemnity policy include? - Answers It pays a flat dollar amount per day
regardless of your actual long-term care expenses
What do Life insurance and deferred annuity policies cover? - Answers Both include coverage
for certain long-term care expenses, such as care in nursing home, assisted living facility, or
home healthcare
What are the the benefit triggers for tax-qualified long-term care policies? - Answers The befit
triggers determine whether the insured is chronically ill and eligible for benefits. The first trigger
requires the insured to be unable to perform a certain number of activities of daily living (ADLs).
Another trigger is that the insured needs substantial supervision to be protected against threats
to health and safety because of severe cognitive impairment.
What are some typical exclusions in Long-term care policies? - Answers Certain mental and
nervous disorders or diseases
Alcoholism and drug addiction
Illnesses caused by an act of war
Treatment paid by the government
Attempted suicide or self-inflicted injury
How can total disability be defined? - Answers It can be defined in the following categories:
Inability to perform the material and substantial duties of your regular occupation
inability to perform the material and substantial duties of your occupation, and are not engaged
in any other occupation
Inability to perform the duties of any occupation for which you are reasonably fitted by
education, training, and experience
, Inability to perform the duties of any gainful occupation
Loss-of-income test
How are disability-income policies defined? - Answers It is defined in two parts. For some initial
period, such as two years, total disability is typically defined as the inability to perform all duties
of the insured's own occupation. After that time, total disability is defined as the inability to
perform the duties of any occupation for which the insured is reasonably fitted by education,
training, and experience.
What is a renewal provision? - Answers It refers to the length of time that an individual medical
expense policy can remain in force.
What do renewal provisions include? - Answers It includes guaranteed renewable,
noncanccelable, conditionally renewable, nonrenewable, guaranteed issue
What are some characteristics of group insurance? - Answers Group insurance provides
benefits to a number of persons under a single master contract. Low cost protection is provided
because the employer pays part or all of the premiums. Evidence of insurability is usually not
required. Larger groups are subject to experience rating, by which the group's loss experience
determines the premiums charged.
What underwriting principles are followed in group insurance to obtain favorable loss
experience: - Answers Insurance should by incidental to the group
There should be a flow of persons through the group
Ideally, the Benefit would be determined by some formula that precludes individual selection of
benefit amounts
A minimum percentage of eligible employees should participate in the plan
There should be simple and efficient administration of the plan
What eligibility requirements must employees meet to obtain group insurance? - Answers Is a
full-time employee
Has satisfied a probationary period (required in some Plans)
Has applied for insurance during the eligibility period
Is actively at work when the insurance becomes effective
Group life insurance typically provides _______________________ to participating employees. -
Answers Yearly term insurance coverage
How is a basic amount of term life insurance covered? - Answers A basic amount of term life
2025/2026
What are the major problems in the US healthcare system? - Answers Rising healthcare
expenditures'large number of uninsured in the population
Waste and inefficiency
Harmful insurer practices
What and who does the Affordable Care Act provide coverage for? - Answers It extends
healthcare coverage to millions of uninsured Ed Americans, provides substantial subsides to
uninsured individuals and small business firms t make health insurance more affordable,
contains provisions to lower healthcare costs in the long run, and prohibits insurers from
engaging in certain practices that harm policyholders and insurance applicants.
What is individual medical expense insurance? - Answers It is a policy hat covers an individual or
family for covered medical expenses due to sickness or injury. Consumers have a choice of
numerous policy options with various deductibles, coinsurance, copayment, and premium
amounts.
What characteristics do Policies sold in the Health Insurance Marketplace have? - Answers No
lifetime or annual limits
Broad range of benefits
Colander-year deductible
Coinsurance
Copayment
Out-of-pocket maximum limits
Exclusions
What is the health savings account? - Answers It is a high-deductible medical expense plan with
an investment account that receives favorable tax treatment.
What happens to the contributions made in a health savings account? - Answers The
contributions go into an investment account and are income-tax deductible
What happens to the investment income made in a health savings account? - Answers The
income builds up income-tax free
What happens to the withdraws made in a health savings account? - Answers The withdraws
are income-tax free when used to pay for qualified medical expenses.
,How is Long-term care insurance benefit's paid? - Answers It pays daily or monthly benefits for
medical or custodial care in a nursing facility or at home
What are the major types of Long-term care policies? - Answers Expense-incurred
Indemnity
Life Insurance
Deferred Annuity
What does the Expense-incurred policy include? - Answers It pays a daily or monthly benefit limit
for covered expenses incurred for long-term care up to the policy limits.
What does the Indemnity policy include? - Answers It pays a flat dollar amount per day
regardless of your actual long-term care expenses
What do Life insurance and deferred annuity policies cover? - Answers Both include coverage
for certain long-term care expenses, such as care in nursing home, assisted living facility, or
home healthcare
What are the the benefit triggers for tax-qualified long-term care policies? - Answers The befit
triggers determine whether the insured is chronically ill and eligible for benefits. The first trigger
requires the insured to be unable to perform a certain number of activities of daily living (ADLs).
Another trigger is that the insured needs substantial supervision to be protected against threats
to health and safety because of severe cognitive impairment.
What are some typical exclusions in Long-term care policies? - Answers Certain mental and
nervous disorders or diseases
Alcoholism and drug addiction
Illnesses caused by an act of war
Treatment paid by the government
Attempted suicide or self-inflicted injury
How can total disability be defined? - Answers It can be defined in the following categories:
Inability to perform the material and substantial duties of your regular occupation
inability to perform the material and substantial duties of your occupation, and are not engaged
in any other occupation
Inability to perform the duties of any occupation for which you are reasonably fitted by
education, training, and experience
, Inability to perform the duties of any gainful occupation
Loss-of-income test
How are disability-income policies defined? - Answers It is defined in two parts. For some initial
period, such as two years, total disability is typically defined as the inability to perform all duties
of the insured's own occupation. After that time, total disability is defined as the inability to
perform the duties of any occupation for which the insured is reasonably fitted by education,
training, and experience.
What is a renewal provision? - Answers It refers to the length of time that an individual medical
expense policy can remain in force.
What do renewal provisions include? - Answers It includes guaranteed renewable,
noncanccelable, conditionally renewable, nonrenewable, guaranteed issue
What are some characteristics of group insurance? - Answers Group insurance provides
benefits to a number of persons under a single master contract. Low cost protection is provided
because the employer pays part or all of the premiums. Evidence of insurability is usually not
required. Larger groups are subject to experience rating, by which the group's loss experience
determines the premiums charged.
What underwriting principles are followed in group insurance to obtain favorable loss
experience: - Answers Insurance should by incidental to the group
There should be a flow of persons through the group
Ideally, the Benefit would be determined by some formula that precludes individual selection of
benefit amounts
A minimum percentage of eligible employees should participate in the plan
There should be simple and efficient administration of the plan
What eligibility requirements must employees meet to obtain group insurance? - Answers Is a
full-time employee
Has satisfied a probationary period (required in some Plans)
Has applied for insurance during the eligibility period
Is actively at work when the insurance becomes effective
Group life insurance typically provides _______________________ to participating employees. -
Answers Yearly term insurance coverage
How is a basic amount of term life insurance covered? - Answers A basic amount of term life
