AD Banker Comprehensive Exam
Questions With Correct Answers
5 months - ANSWERSThe waiting period from the start of a disability to be eligible to
apply for Social Security disability is:
Nonoccupational Basis - ANSWERSMost group Disability Income contracts are offered
on a(n):
Dental expense insurance deductibles are normally waived for all of the following,
except: - ANSWERSRoutinely paying premiums on time and in full
Which of the following documents used for underwriting can be completed by talking to
the proposed insured over the phone?
A
APS
B
Inspection report
C
Agent's report
D
MIB - ANSWERSInspection Report
Which of the following business disability plans can create a taxable event:
A
Key person disability insurance
B
Business overhead expense
C
Disability buy-sell agreement
D
Accidental death and dismemberment - ANSWERSBusiness overhead expense
All of the following are correct regarding the coverage of a cancer policy, except:
Coverage under this policy will pay for losses before primary medical expense policiesr
to prevent an insured from reaching annual or lifetime policy limits
B
Benefits are provided for losses associated with a cancer diagnosis
C
Coverage for experimental treatments is usually provided
,D
The policy will only provide benefits for losses covered on an underlying medical
expense policy - ANSWERSThe policy will only provide benefits for losses covered on
an underlying medical expense policy
After K completed an application for health insurance, a paramedical scheduled an
appointment to check height, weight, blood pressure, and collect blood and urine
samples. This is an example of which source of underwriting? - ANSWERSMedical
exam
Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least
_____ days after providing proof of loss before he or she can take legal action against
the insurer. - ANSWERS60 days
When underwriting group life, the underwriter treats the group as if it were: -
ANSWERSOne individual
If an employer purchases a Key Person disability policy on an employee, when would
the disability benefit be received income tax free? - ANSWERSIt is by definition tax-free
since the employer buys it for his or her own benefit
Upon joining an HMO, the plan will require the subscriber to select a: -
ANSWERSPrimary Care Physician
What is an impairment rider? - ANSWERSIt excludes specific conditions that normally
would cause the entire policy to be declined
An individual is eligible for a Medicare Supplement as early as age: - ANSWERS65
It is the _________ who issues a Certificate of Authority enabling an insurer to conduct
insurance business within a particular state. - ANSWERSState insurance Commissioner
or Director
PPO plans pay providers based on a: - ANSWERSDiscounted fee for service
negotiated in advance
If an individual has limited assets and low income, which of the following would most
likely cover the cost of long-term care? - ANSWERSMedicaid
A Long-Term Care plan may deny coverage for preexisting conditions for no more than
how many months after the effective date of coverage? - ANSWERS6
In the event there is a policy issued and there are questions on the insurance
application that went unanswered: - ANSWERSIt will be assumed that the insurer
waived their right to have answers to those questions
, Monte has a health care plan that provides benefits as an HMO if he stays within the
network and provides benefits like an indemnity plan if he goes outside the network.
Monte is covered under a: - ANSWERSPoint-of-Service Plan
The Legal Actions provision preserves the insured's right to bring suit against his/her
own insurer, but the insured must wait at least _____ days after filing a proof of loss
before pursuing this action. - ANSWERS60
The main purpose of requiring a Gatekeeper is to: - ANSWERSReduce costs within the
plan
Accident and health insurance policy exclusions typically include all of the following,
except: - ANSWERSNonoccupational injuries
All health insurance policies covering dependents of the insured must provide coverage
for newborns: - ANSWERSFrom the moment of birth
All of the following are exclusions under an LTC policy, except: - ANSWERSChemical
dependency on one's own prescription drugs
A program designed to provide increased assistance to those who are unable to pay for
their medical needs is known as: - ANSWERSMedicaid
Which of the following exclusions applies to Long-Term Care coverage?
Home care
B
Adult day care
C
Respite care
D
Rest Cures - ANSWERSRest Cures
HIPAA ensures which of the following?
A
Notice of information practices when received by a third party
B
Answers on the application are guaranteed to be true
C
Privacy of health information
D
The insurer must provide a copy of a third-party report to the applicant -
ANSWERSPrivacy of health information
Case managers do all of the following, except:
Questions With Correct Answers
5 months - ANSWERSThe waiting period from the start of a disability to be eligible to
apply for Social Security disability is:
Nonoccupational Basis - ANSWERSMost group Disability Income contracts are offered
on a(n):
Dental expense insurance deductibles are normally waived for all of the following,
except: - ANSWERSRoutinely paying premiums on time and in full
Which of the following documents used for underwriting can be completed by talking to
the proposed insured over the phone?
A
APS
B
Inspection report
C
Agent's report
D
MIB - ANSWERSInspection Report
Which of the following business disability plans can create a taxable event:
A
Key person disability insurance
B
Business overhead expense
C
Disability buy-sell agreement
D
Accidental death and dismemberment - ANSWERSBusiness overhead expense
All of the following are correct regarding the coverage of a cancer policy, except:
Coverage under this policy will pay for losses before primary medical expense policiesr
to prevent an insured from reaching annual or lifetime policy limits
B
Benefits are provided for losses associated with a cancer diagnosis
C
Coverage for experimental treatments is usually provided
,D
The policy will only provide benefits for losses covered on an underlying medical
expense policy - ANSWERSThe policy will only provide benefits for losses covered on
an underlying medical expense policy
After K completed an application for health insurance, a paramedical scheduled an
appointment to check height, weight, blood pressure, and collect blood and urine
samples. This is an example of which source of underwriting? - ANSWERSMedical
exam
Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least
_____ days after providing proof of loss before he or she can take legal action against
the insurer. - ANSWERS60 days
When underwriting group life, the underwriter treats the group as if it were: -
ANSWERSOne individual
If an employer purchases a Key Person disability policy on an employee, when would
the disability benefit be received income tax free? - ANSWERSIt is by definition tax-free
since the employer buys it for his or her own benefit
Upon joining an HMO, the plan will require the subscriber to select a: -
ANSWERSPrimary Care Physician
What is an impairment rider? - ANSWERSIt excludes specific conditions that normally
would cause the entire policy to be declined
An individual is eligible for a Medicare Supplement as early as age: - ANSWERS65
It is the _________ who issues a Certificate of Authority enabling an insurer to conduct
insurance business within a particular state. - ANSWERSState insurance Commissioner
or Director
PPO plans pay providers based on a: - ANSWERSDiscounted fee for service
negotiated in advance
If an individual has limited assets and low income, which of the following would most
likely cover the cost of long-term care? - ANSWERSMedicaid
A Long-Term Care plan may deny coverage for preexisting conditions for no more than
how many months after the effective date of coverage? - ANSWERS6
In the event there is a policy issued and there are questions on the insurance
application that went unanswered: - ANSWERSIt will be assumed that the insurer
waived their right to have answers to those questions
, Monte has a health care plan that provides benefits as an HMO if he stays within the
network and provides benefits like an indemnity plan if he goes outside the network.
Monte is covered under a: - ANSWERSPoint-of-Service Plan
The Legal Actions provision preserves the insured's right to bring suit against his/her
own insurer, but the insured must wait at least _____ days after filing a proof of loss
before pursuing this action. - ANSWERS60
The main purpose of requiring a Gatekeeper is to: - ANSWERSReduce costs within the
plan
Accident and health insurance policy exclusions typically include all of the following,
except: - ANSWERSNonoccupational injuries
All health insurance policies covering dependents of the insured must provide coverage
for newborns: - ANSWERSFrom the moment of birth
All of the following are exclusions under an LTC policy, except: - ANSWERSChemical
dependency on one's own prescription drugs
A program designed to provide increased assistance to those who are unable to pay for
their medical needs is known as: - ANSWERSMedicaid
Which of the following exclusions applies to Long-Term Care coverage?
Home care
B
Adult day care
C
Respite care
D
Rest Cures - ANSWERSRest Cures
HIPAA ensures which of the following?
A
Notice of information practices when received by a third party
B
Answers on the application are guaranteed to be true
C
Privacy of health information
D
The insurer must provide a copy of a third-party report to the applicant -
ANSWERSPrivacy of health information
Case managers do all of the following, except:
