Final Exam - South Carolina Life and
Health Questions and Answers With
Complete Solutions!!
A closed network plan offers a primary physician copay of $25. If a subscriber chooses
a primary care physician outside of the network, the subscriber will likely pay -
ANSWER_100% of the billed amount
What does Coordination of Benefits allow? - ANSWER_Allows the secondary payor to
reduce their benefit payments so no more than 100% of the claim is paid
A waiver of premium rider allows an insured to waive premium payments if the insured
is - ANSWER_completely and permanently disabled
Under the Time Limit of Certain Defenses Provision, a disability policy is incontestable
after it has been in force for a period of - ANSWER_2 years
In what part of an insurance policy are policy benefits found? - ANSWER_Declarations
What type of annuity stops all payments upon the death of the annuitant? -
ANSWER_Life annuity
A guaranteed issue insurance policy has no - ANSWER_medical underwriting
What is NOT a qualifying event for Medicare? - ANSWER_Falling below the federal
poverty level
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 - ANSWER_benefit
schedule
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What
is this called? - ANSWER_Estate conservation
Ownership of a life insurance policy may be temporarily transferred with a(n) -
ANSWER_collateral assignment
Respite care is able to provide - ANSWER_temporary relief to the patient's primary
caregiver
What are employers is required to follow ERISA regulations? - ANSWER_A local
electrical supply company with 12 employees
, A policy illustration given at time of sale does NOT typically include the -
ANSWER_names of the beneficiary
How are contributions made to a Roth IRA handled for tax purposes? - ANSWER_Not
tax deductible
With respect to small group health benefit plans, a carrier may discontinue coverage or
may refuse to renew such a plan if the employer - ANSWER_fails to pay the premium
prior to the end of the grace period
What is an insurance policy's grace period? - ANSWER_period of time after premium is
due but the policy remains in force
What isn't considered to be nonforfeiture options available to policyowner -
ANSWER_Reduction of Premium
An insured MUST submit a proof of loss on a health insurance claim within how many
days after the date of loss? - ANSWER_90
What dividend option is taxable? - ANSWER_Accumulation at interest
When calculating the amount of life insurance needed for an income earner, what has to
be determined when using the Needs Approach? - ANSWER_The family's financial
objectives if the income earner were to die or become disabled
What statement best describes the relationship between the premiums of a whole life
policy and the premium payment period? - ANSWER_The shorter the payment period,
the higher the premium
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase
an extended term insurance option. When the term insurance expires, - ANSWER_the
protection ends
What are an applicant's statements concerning occupation, hobbies, and personal
health history regraded as? - ANSWER_representation
Joe has a life insurance policy that has a face amount of $300,000. After a number of
years, the policy's cash value accumulates to $50,000 and the face amount becomes a
$350,000. What kind of policy is this? - ANSWER_Universal Life policy
In most dental plans, a deductible typically is NOT applied to - ANSWER_preventative
and diagnostic services
What is considered to be a point of service (POS) plan? - ANSWER_Managed care
plan
Health Questions and Answers With
Complete Solutions!!
A closed network plan offers a primary physician copay of $25. If a subscriber chooses
a primary care physician outside of the network, the subscriber will likely pay -
ANSWER_100% of the billed amount
What does Coordination of Benefits allow? - ANSWER_Allows the secondary payor to
reduce their benefit payments so no more than 100% of the claim is paid
A waiver of premium rider allows an insured to waive premium payments if the insured
is - ANSWER_completely and permanently disabled
Under the Time Limit of Certain Defenses Provision, a disability policy is incontestable
after it has been in force for a period of - ANSWER_2 years
In what part of an insurance policy are policy benefits found? - ANSWER_Declarations
What type of annuity stops all payments upon the death of the annuitant? -
ANSWER_Life annuity
A guaranteed issue insurance policy has no - ANSWER_medical underwriting
What is NOT a qualifying event for Medicare? - ANSWER_Falling below the federal
poverty level
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 - ANSWER_benefit
schedule
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What
is this called? - ANSWER_Estate conservation
Ownership of a life insurance policy may be temporarily transferred with a(n) -
ANSWER_collateral assignment
Respite care is able to provide - ANSWER_temporary relief to the patient's primary
caregiver
What are employers is required to follow ERISA regulations? - ANSWER_A local
electrical supply company with 12 employees
, A policy illustration given at time of sale does NOT typically include the -
ANSWER_names of the beneficiary
How are contributions made to a Roth IRA handled for tax purposes? - ANSWER_Not
tax deductible
With respect to small group health benefit plans, a carrier may discontinue coverage or
may refuse to renew such a plan if the employer - ANSWER_fails to pay the premium
prior to the end of the grace period
What is an insurance policy's grace period? - ANSWER_period of time after premium is
due but the policy remains in force
What isn't considered to be nonforfeiture options available to policyowner -
ANSWER_Reduction of Premium
An insured MUST submit a proof of loss on a health insurance claim within how many
days after the date of loss? - ANSWER_90
What dividend option is taxable? - ANSWER_Accumulation at interest
When calculating the amount of life insurance needed for an income earner, what has to
be determined when using the Needs Approach? - ANSWER_The family's financial
objectives if the income earner were to die or become disabled
What statement best describes the relationship between the premiums of a whole life
policy and the premium payment period? - ANSWER_The shorter the payment period,
the higher the premium
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase
an extended term insurance option. When the term insurance expires, - ANSWER_the
protection ends
What are an applicant's statements concerning occupation, hobbies, and personal
health history regraded as? - ANSWER_representation
Joe has a life insurance policy that has a face amount of $300,000. After a number of
years, the policy's cash value accumulates to $50,000 and the face amount becomes a
$350,000. What kind of policy is this? - ANSWER_Universal Life policy
In most dental plans, a deductible typically is NOT applied to - ANSWER_preventative
and diagnostic services
What is considered to be a point of service (POS) plan? - ANSWER_Managed care
plan
