CISEC ACTUAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERES
Which of the following statements correctly describes minimum
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requirements that group benefit plans typically must meet in order to
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be prospectively rated on contract renewal? - CORRECT-ANSWER-The
| | | | | | | |
more unpredictable the event that will trigger a claim, the larger the
| | | | | | | | | | | |
minimum group size and premium requirements
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Which of the following statements correctly describes the term
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graduation as it applies to mortality tables? - CORRECT-ANSWER-It is a
| | | | | | | | | | |
mathematical process that removes anomalies that should not appear
| | | | | | | | |
in the mortality data
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,If the plan sponsor pays the premium, which of the following group
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|insured benefits is taxable to the plan member? - CORRECT-ANSWER-
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|Long-term disability (LTD) | |
Which of the following statements correctly describes phases of a
| | | | | | | | |
group plan marketing? - CORRECT-ANSWER-Plan features of both
| | | | | | | |
contributory and noncontributory benefit plans must be communicated
| | | | | | | |
to plan members during the enrollment process
| | | | | | |
Which of the following statements correctly describes a characteristic
| | | | | | | |
of an insurable risk? - CORRECT-ANSWER-The loss must have financial
| | | | | | | | | |
significance to the insured (The loss must not be catastrophic to the
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insurer. Option C: The loss must occur by chance. Option D: The loss
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must be predictable for the insurer.)
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With respect to marketing a group insurance plan, which of the
| | | | | | | | | |
following statements best describes insurer representatives known as
| | | | | | | |
account executives? - CORRECT-ANSWER-They are involved in enrolling
| | | | | | | |
group members and installing new plans
| | | | | |
,Which of the following statements correctly describes the statistical
| | | | | | | |
concept known as the law of large numbers? - CORRECT-ANSWER-
| | | | | | | | | |
Future probabilities of loss are not valid unless a large number of
| | | | | | | | | | | |
incidents exist to ensure the outcomes are less likely to deviate
| | | | | | | | | | |
Which of the following statements correctly describes an insured plan
| | | | | | | | |
that is insurer-administered? - CORRECT-ANSWER-For self-insured
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plans with an administrative services only (ASO) arrangement, the
| | | | | | | | |
insurer bills the plan sponsor monthly for administration fees
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If the probability that an individual will live one year is 0.95 and the
| | | | | | | | | | | | |
|probability of dying in the following year is 0.10, what is the probability
| | | | | | | | | | | |
|that an individual will survive both years? - CORRECT-ANSWER-0.855 (P
| | | | | | | | |
|(Survive both years) = (0.95) x (1 - 0.1) = 0.95 x 0.90 = 0.855.)
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Which of the following statements correctly describes the group
| | | | | | | |
benefits enrollment process for new employees? - CORRECT-ANSWER-
| | | | | | | |
An employee can enroll in the plan any time between his or her date of
| | | | | | | | | | | | | | |
hire and the end of a waiting period
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, A type of service offered under a third-party administrators (TPAs)
| | | | | | | | |
claims settlement only arrangement is: - CORRECT-ANSWER-
| | | | | | |
Adjudicating and paying claims
| | | |
Unless otherwise specified in the group insurance contract, a plan
| | | | | | | | |
member's status under a group benefits plan terminates the earliest at
| | | | | | | | | | |
which: - CORRECT-ANSWER-The plan member retires (Unless otherwise
| | | | | | | |
specified in the group insurance contract, the order in which coverage
| | | | | | | | | | |
terminates is effective the earliest date the plan member retires, the
| | | | | | | | | | |
plan member's service with the plan sponsor is terminated, the plan
| | | | | | | | | | |
member ceases active work, and the plan member is no longer a
| | | | | | | | | | | |
member of an eligible class and premium payments stop.)
| | | | | | | | |
Which of the following statements correctly describes eligibility
| | | | | | |
requirements under most group insurance plans? - CORRECT-ANSWER-
| | | | | | | |
Unmarried children under a specified age and dependent on the plan
| | | | | | | | | | |
member for support are eligible for coverage
| | | | | | |
Which of the following statements correctly describes the negotiated
| | | | | | | |
placement method of marketing a group benefits plan? - CORRECT-
| | | | | | | | | |
ANSWER-Once potential insurers are identified, each company submits
| | | | | | | |
VERIFIED ANSWERES
Which of the following statements correctly describes minimum
| | | | | | |
requirements that group benefit plans typically must meet in order to
| | | | | | | | | | |
be prospectively rated on contract renewal? - CORRECT-ANSWER-The
| | | | | | | |
more unpredictable the event that will trigger a claim, the larger the
| | | | | | | | | | | |
minimum group size and premium requirements
| | | | | |
Which of the following statements correctly describes the term
| | | | | | | |
graduation as it applies to mortality tables? - CORRECT-ANSWER-It is a
| | | | | | | | | | |
mathematical process that removes anomalies that should not appear
| | | | | | | | |
in the mortality data
| | | |
,If the plan sponsor pays the premium, which of the following group
| | | | | | | | | | |
|insured benefits is taxable to the plan member? - CORRECT-ANSWER-
| | | | | | | | |
|Long-term disability (LTD) | |
Which of the following statements correctly describes phases of a
| | | | | | | | |
group plan marketing? - CORRECT-ANSWER-Plan features of both
| | | | | | | |
contributory and noncontributory benefit plans must be communicated
| | | | | | | |
to plan members during the enrollment process
| | | | | | |
Which of the following statements correctly describes a characteristic
| | | | | | | |
of an insurable risk? - CORRECT-ANSWER-The loss must have financial
| | | | | | | | | |
significance to the insured (The loss must not be catastrophic to the
| | | | | | | | | | | |
insurer. Option C: The loss must occur by chance. Option D: The loss
| | | | | | | | | | | | |
must be predictable for the insurer.)
| | | | | |
With respect to marketing a group insurance plan, which of the
| | | | | | | | | |
following statements best describes insurer representatives known as
| | | | | | | |
account executives? - CORRECT-ANSWER-They are involved in enrolling
| | | | | | | |
group members and installing new plans
| | | | | |
,Which of the following statements correctly describes the statistical
| | | | | | | |
concept known as the law of large numbers? - CORRECT-ANSWER-
| | | | | | | | | |
Future probabilities of loss are not valid unless a large number of
| | | | | | | | | | | |
incidents exist to ensure the outcomes are less likely to deviate
| | | | | | | | | | |
Which of the following statements correctly describes an insured plan
| | | | | | | | |
that is insurer-administered? - CORRECT-ANSWER-For self-insured
| | | | | |
plans with an administrative services only (ASO) arrangement, the
| | | | | | | | |
insurer bills the plan sponsor monthly for administration fees
| | | | | | | | |
If the probability that an individual will live one year is 0.95 and the
| | | | | | | | | | | | |
|probability of dying in the following year is 0.10, what is the probability
| | | | | | | | | | | |
|that an individual will survive both years? - CORRECT-ANSWER-0.855 (P
| | | | | | | | |
|(Survive both years) = (0.95) x (1 - 0.1) = 0.95 x 0.90 = 0.855.)
| | | | | | | | | | | | | |
Which of the following statements correctly describes the group
| | | | | | | |
benefits enrollment process for new employees? - CORRECT-ANSWER-
| | | | | | | |
An employee can enroll in the plan any time between his or her date of
| | | | | | | | | | | | | | |
hire and the end of a waiting period
| | | | | | | |
, A type of service offered under a third-party administrators (TPAs)
| | | | | | | | |
claims settlement only arrangement is: - CORRECT-ANSWER-
| | | | | | |
Adjudicating and paying claims
| | | |
Unless otherwise specified in the group insurance contract, a plan
| | | | | | | | |
member's status under a group benefits plan terminates the earliest at
| | | | | | | | | | |
which: - CORRECT-ANSWER-The plan member retires (Unless otherwise
| | | | | | | |
specified in the group insurance contract, the order in which coverage
| | | | | | | | | | |
terminates is effective the earliest date the plan member retires, the
| | | | | | | | | | |
plan member's service with the plan sponsor is terminated, the plan
| | | | | | | | | | |
member ceases active work, and the plan member is no longer a
| | | | | | | | | | | |
member of an eligible class and premium payments stop.)
| | | | | | | | |
Which of the following statements correctly describes eligibility
| | | | | | |
requirements under most group insurance plans? - CORRECT-ANSWER-
| | | | | | | |
Unmarried children under a specified age and dependent on the plan
| | | | | | | | | | |
member for support are eligible for coverage
| | | | | | |
Which of the following statements correctly describes the negotiated
| | | | | | | |
placement method of marketing a group benefits plan? - CORRECT-
| | | | | | | | | |
ANSWER-Once potential insurers are identified, each company submits
| | | | | | | |
