Life, Accident, & Health State Exam Simulator with Complete Solutions

Life, Accident, & Health State Exam Simulator with Complete Solutions A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow According to life insurance contract law, insurable interest exists At the Time of the application Under Workers' Compensation, injured employees are covered for all of the following issues EXCEPT Pain and suffering What happens when an insurance policy is backdated? The policy's effective date is earlier than the present Key Person Disability Insurance pays benefits to the Employer What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do? In the event of employment termination, group health insurance can be kept if the employee pays the premiums Making a statement that is false or maliciously critical of the financial condition of an insurer is known as Defamation Which of the following statements is CORRECT regarding an individual applying for life or health insurance? The applicants medical history may be analyzed and reported Index whole life insurance contains a securities component that acts as a(n) Hedge against inflation Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are tax- deductible when paid for which of the following plans? Qualified long-term care plan How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes? Not tax deductible Part A Hospital expense coverage provided under Medicare is automatically made available to each of the following EXCEPT -A 50-year old individual who has qualified for SSDI in the last 24 months -A 70-year old NOT eligible for Social Security -A 55-year old suffering from kidney failure -A 65-year old retiree A 70 year old not eligible for Social Security A hospital or medical expense policy will typically cover dental treatment expenses under which circumstance? -After the annual limit of a dental policy's coverage is reached -Dental treatment is needed to repair an injury -Cosmetic dental treatment is performed -If treatment is performed at a in-network provider Dental treatment is needed to repair an injury Which of the following would evidence ownership in a participating health insurance contract? -Stock ownership -Irrevocable beneficiary status -Policy ownership -Collateral assignment Policy ownership Who is the individual paid on a fee-for-service basis? Provider Which of the following is an annuity that is linked to a market-related index? Equity-indexed annuity Low frequency diseases can be exclusively covered by what kind of health insurance policies? Limited policies What activity does NOT require an insurance producer's license? Underwriting When MUST a newborn child be covered under an existing health insurance policy? Immediately Distributions from a Health Savings Account (HSA) for qualified medical expenses are Tax free Which of these retirement plans do NOT qualify for a federal income tax deduction? -SIMPLE Plan