L&H GRADE A Q&A
Into how many categories do most indemnity dental plans separate their covered
treatment and benefits? - (correct answer)Most dental plans normally group their
covered treatment and benefits into three classes, or categories.
Current declared interest rates on deferred fixed annuities. - (correct answer)Current
declared interest rates are based on the insurer's investment result and on the
economic climate.
Most states permit insurers to include a provision in their life insurance policy that does
what? - (correct answer)Most states do not permit insurance companies to include any
provision in their contracts that limits the period for filing a lawsuit against the insurance
company to less than one year after a triggering event is noted.
Group short-term disability (STD) coverage typically has a maximum benefit period of? -
(correct answer)Group plans with maximum benefit periods of less than two years are
short-term disability plans.
If an annuity requires only that each premium deposit be above a certain minimum, this
is most likely which type of annuity? - (correct answer)Fixed premium deferred annuities
specify the exact premium payment amounts (and when they must be paid) for the
contract to generate the desired future income payments.
Coordination of benefits provision in health insurance plans does not include? - (correct
answer)Children who are covered as dependents under the group insurance plans of
two working parents have two sources of coverage. In these cases, the primary provider
is the insurance plan of the parent whose birthday occurs first in the calendar year.
To be eligible to set up a SIMPLE plan, a business has to meet which one of the
following basic requirements? - (correct answer)It must employ no more than 100
people.
,What statement about the NAIC's Uniform Accident and Sickness Policy Provision
Model Law is not correct? - (correct answer)The model law created 12 required and 11
optional provisions and riders common to health insurance policies.
An agent does not have to do what during an in-person delivery of a whole life
insurance policy? - (correct answer)Explain policy benefits, terms, and riders.
Term life insurance policies are well suited for? - (correct answer)Because it only offers
protection for a limited time, term life is best used for temporary needs that have a
defined end-date. With the convertibility option, term life can be converted to permanent
life insurance when the policyowner is able to afford the higher premium.
If a group health plan is experience rated, the underwriter will examine? - (correct
answer)Experience rating focuses on the individual group it's makeup and, most
importantly, it's past claims experience.
Best insurers issued a noncancellable health insurance policy to Mary, who is 30 years
old and a Texas resident. Based on this informatio, the earliest age at which Mary's
premiums can be changed is? - (correct answer)50
What is not correct about an HMO. - (correct answer)The HMO is responsible for the
availability, accessibility, quality, and cost of the health care it delivers.
When determining an employee's deductions based on the amount of premiums and
other qualifying expenses paid above 10 percent (7.5 percent for those age 65 and
over) of the employee's adjusted gross income, which expenses are NOT considered? -
(correct answer)Contributions for group disability insurance coverage.
Ed had worked at ABC Computers for 15 years when he was laid off unexpectedly. To
convert his group life insurance policy to an individual policy. Ed must apply for a
conversion policy within how many days after being laid off? - (correct answer)31
, Barb, age 40, buys a ten-pay life policy while Jill, age 40, buys a life paid up at age 65
policy. All other factors being equal, which of the following statements is most correct? -
(correct answer)Jill's premium-paying period will be longer than Barb's premium-paying
period. Her premiums will therefore not be higher.
Which statement most correctly describes the relationship, if any, between the
application and huge insurance contract? - (correct answer)The application is part of
had entire contract.
What statement regarding he "spendthrift clause" of a life insurance policy is NOT
correct? - (correct answer)The spendthrift clause keeps beneficiaries from claiming any
death benefits until huge insurer checks their personal and business credit histories.
Eligible people who apply for Social Security retirement benefits at age 65 are
automatically enrolled in Medicare Part A. What happens if a person does not apply for
Social Security retirement benefits at age 65 but still want Medicare? - (correct
answer)The person must enroll for Medicare Part A.
What statement regarding perils and hazards is not correct? - (correct answer)Smoking
cigarettes is an example of a peril.
Eric's medical expense plan requires Eric and his family to get medical care from certain
providers if the cost of the care I'd to be covered. Given this information, what type of
insurance does Eric NOT have? - (correct answer)Traditional medical expense plan.
Thomas suffered a debilitating injury in a car accident and then filed a claim under his
individual disability income policy. What would happen? - (correct answer)A disability
income policy must contain an elimination period no greater than 90 days for benefit
periods of one year or less, 365 days for benefit periods of not less than two years, and
180 days in all other cases. It cannot reduce benefits if the insured is unemployed or
employed at home at the time of the accident. Monthly payments must be at least $100
through age 62 and at least $50 per month after age 62. The maximum benefit period
can be no less than six months.
Into how many categories do most indemnity dental plans separate their covered
treatment and benefits? - (correct answer)Most dental plans normally group their
covered treatment and benefits into three classes, or categories.
Current declared interest rates on deferred fixed annuities. - (correct answer)Current
declared interest rates are based on the insurer's investment result and on the
economic climate.
Most states permit insurers to include a provision in their life insurance policy that does
what? - (correct answer)Most states do not permit insurance companies to include any
provision in their contracts that limits the period for filing a lawsuit against the insurance
company to less than one year after a triggering event is noted.
Group short-term disability (STD) coverage typically has a maximum benefit period of? -
(correct answer)Group plans with maximum benefit periods of less than two years are
short-term disability plans.
If an annuity requires only that each premium deposit be above a certain minimum, this
is most likely which type of annuity? - (correct answer)Fixed premium deferred annuities
specify the exact premium payment amounts (and when they must be paid) for the
contract to generate the desired future income payments.
Coordination of benefits provision in health insurance plans does not include? - (correct
answer)Children who are covered as dependents under the group insurance plans of
two working parents have two sources of coverage. In these cases, the primary provider
is the insurance plan of the parent whose birthday occurs first in the calendar year.
To be eligible to set up a SIMPLE plan, a business has to meet which one of the
following basic requirements? - (correct answer)It must employ no more than 100
people.
,What statement about the NAIC's Uniform Accident and Sickness Policy Provision
Model Law is not correct? - (correct answer)The model law created 12 required and 11
optional provisions and riders common to health insurance policies.
An agent does not have to do what during an in-person delivery of a whole life
insurance policy? - (correct answer)Explain policy benefits, terms, and riders.
Term life insurance policies are well suited for? - (correct answer)Because it only offers
protection for a limited time, term life is best used for temporary needs that have a
defined end-date. With the convertibility option, term life can be converted to permanent
life insurance when the policyowner is able to afford the higher premium.
If a group health plan is experience rated, the underwriter will examine? - (correct
answer)Experience rating focuses on the individual group it's makeup and, most
importantly, it's past claims experience.
Best insurers issued a noncancellable health insurance policy to Mary, who is 30 years
old and a Texas resident. Based on this informatio, the earliest age at which Mary's
premiums can be changed is? - (correct answer)50
What is not correct about an HMO. - (correct answer)The HMO is responsible for the
availability, accessibility, quality, and cost of the health care it delivers.
When determining an employee's deductions based on the amount of premiums and
other qualifying expenses paid above 10 percent (7.5 percent for those age 65 and
over) of the employee's adjusted gross income, which expenses are NOT considered? -
(correct answer)Contributions for group disability insurance coverage.
Ed had worked at ABC Computers for 15 years when he was laid off unexpectedly. To
convert his group life insurance policy to an individual policy. Ed must apply for a
conversion policy within how many days after being laid off? - (correct answer)31
, Barb, age 40, buys a ten-pay life policy while Jill, age 40, buys a life paid up at age 65
policy. All other factors being equal, which of the following statements is most correct? -
(correct answer)Jill's premium-paying period will be longer than Barb's premium-paying
period. Her premiums will therefore not be higher.
Which statement most correctly describes the relationship, if any, between the
application and huge insurance contract? - (correct answer)The application is part of
had entire contract.
What statement regarding he "spendthrift clause" of a life insurance policy is NOT
correct? - (correct answer)The spendthrift clause keeps beneficiaries from claiming any
death benefits until huge insurer checks their personal and business credit histories.
Eligible people who apply for Social Security retirement benefits at age 65 are
automatically enrolled in Medicare Part A. What happens if a person does not apply for
Social Security retirement benefits at age 65 but still want Medicare? - (correct
answer)The person must enroll for Medicare Part A.
What statement regarding perils and hazards is not correct? - (correct answer)Smoking
cigarettes is an example of a peril.
Eric's medical expense plan requires Eric and his family to get medical care from certain
providers if the cost of the care I'd to be covered. Given this information, what type of
insurance does Eric NOT have? - (correct answer)Traditional medical expense plan.
Thomas suffered a debilitating injury in a car accident and then filed a claim under his
individual disability income policy. What would happen? - (correct answer)A disability
income policy must contain an elimination period no greater than 90 days for benefit
periods of one year or less, 365 days for benefit periods of not less than two years, and
180 days in all other cases. It cannot reduce benefits if the insured is unemployed or
employed at home at the time of the accident. Monthly payments must be at least $100
through age 62 and at least $50 per month after age 62. The maximum benefit period
can be no less than six months.
