MASSACHUSETTS LAWS AND RULES
FINAL EXAM 100% CORRECT!!
,in Massachusetts, a small employer is comprised of - ANSWER 1-50 employees
Kate received a group accident and health termination notice. How many days does she
have to apply for a converted policy? - ANSWER 31
Scott has a life insurance policy in which the dividends are left with the insurance
company. This particular policy may be paid up when the cash value plus accumulated
dividends - ANSWER equal the net single premium for the same face amount at the
insured's attained age
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do
not take the required minimum distributions from their qualified retirement plan? -
ANSWER 50%
The initial premium for a life insurance policy is typically paid in what way? - ANSWER it
is typically obtained by the producer and forwarded to the insurer
Where is the difference between a standard risk and a substandard risk reflected? -
ANSWER premium charges
When must insurable interest exist for a life insurance contract to be valid? - ANSWER
inception of the contract
Julie is in need of assistance with one or two activities of daily living. She may be
eligible for a(n) - ANSWER assisted living facility
Rick is a disabled worker receiving Social Security benefits. What are his wife and
dependent children eligible for? - ANSWER an income benefit which is a percentage of
his primary insurance amount
which of the following is NOT a condition that must be met for an accidental death
benefit to be paid? - ANSWER cause of death must be from a job-related injury
which one of these is NOT considered to be an element of an insurable risk? -
ANSWER speculative risk
how long does one premium payment cover in a single premium whole life policy? -
ANSWER full life of the policy
The grouping of two or more small employers in order to obtain group health insurance
at a favorable rate is called a multiple employer - ANSWER trust
, which of the following is NOT covered by a comprehensive long-term care policy? -
ANSWER acute care
qualified long-term care premiums are treated for tax purposes as - ANSWER tax-
deductible too the extent they exceed 7 1/2% AGI
continued health insurance coverage is available for dependent children beyond the age
of 26 IF the child - ANSWER cannot support themselves because of a handicap
how many employees must an employer have for the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) to apply? - ANSWER 20 or more
which of the following financial products creates an instant estate, no matter when the
date of death? - ANSWER life insurance
Pete is covered by a group health insurance plan which covers employees in multiple
states. This plan is governed by the laws of which state? - ANSWER where the master
contract was issued
a prepaid dental plan has an agreement in place with a network of dentists which -
ANSWER accepts an established amount as payment in full for the dental services
rendered
Individuals covered with employer-paid group health plans will normally receive tax-free
benefits under all of these plans EXCEPT - ANSWER disability income
the conversion option for group term insurance may be exercised by an employee -
ANSWER within 31 days of terminated employment
accident and health insurance claim handling is made more convenient to the insured
by utilizing - ANSWER assignment of benefits
a policy owner is permitted to take out a policy loan on a whole life policy at what point?
- ANSWER when the policy has a cash value
which of the following combinations best describe a universal life insurance policy? -
ANSWER a flexible premium deposit fund and a monthly renewable term insurance
policy
FINAL EXAM 100% CORRECT!!
,in Massachusetts, a small employer is comprised of - ANSWER 1-50 employees
Kate received a group accident and health termination notice. How many days does she
have to apply for a converted policy? - ANSWER 31
Scott has a life insurance policy in which the dividends are left with the insurance
company. This particular policy may be paid up when the cash value plus accumulated
dividends - ANSWER equal the net single premium for the same face amount at the
insured's attained age
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do
not take the required minimum distributions from their qualified retirement plan? -
ANSWER 50%
The initial premium for a life insurance policy is typically paid in what way? - ANSWER it
is typically obtained by the producer and forwarded to the insurer
Where is the difference between a standard risk and a substandard risk reflected? -
ANSWER premium charges
When must insurable interest exist for a life insurance contract to be valid? - ANSWER
inception of the contract
Julie is in need of assistance with one or two activities of daily living. She may be
eligible for a(n) - ANSWER assisted living facility
Rick is a disabled worker receiving Social Security benefits. What are his wife and
dependent children eligible for? - ANSWER an income benefit which is a percentage of
his primary insurance amount
which of the following is NOT a condition that must be met for an accidental death
benefit to be paid? - ANSWER cause of death must be from a job-related injury
which one of these is NOT considered to be an element of an insurable risk? -
ANSWER speculative risk
how long does one premium payment cover in a single premium whole life policy? -
ANSWER full life of the policy
The grouping of two or more small employers in order to obtain group health insurance
at a favorable rate is called a multiple employer - ANSWER trust
, which of the following is NOT covered by a comprehensive long-term care policy? -
ANSWER acute care
qualified long-term care premiums are treated for tax purposes as - ANSWER tax-
deductible too the extent they exceed 7 1/2% AGI
continued health insurance coverage is available for dependent children beyond the age
of 26 IF the child - ANSWER cannot support themselves because of a handicap
how many employees must an employer have for the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) to apply? - ANSWER 20 or more
which of the following financial products creates an instant estate, no matter when the
date of death? - ANSWER life insurance
Pete is covered by a group health insurance plan which covers employees in multiple
states. This plan is governed by the laws of which state? - ANSWER where the master
contract was issued
a prepaid dental plan has an agreement in place with a network of dentists which -
ANSWER accepts an established amount as payment in full for the dental services
rendered
Individuals covered with employer-paid group health plans will normally receive tax-free
benefits under all of these plans EXCEPT - ANSWER disability income
the conversion option for group term insurance may be exercised by an employee -
ANSWER within 31 days of terminated employment
accident and health insurance claim handling is made more convenient to the insured
by utilizing - ANSWER assignment of benefits
a policy owner is permitted to take out a policy loan on a whole life policy at what point?
- ANSWER when the policy has a cash value
which of the following combinations best describe a universal life insurance policy? -
ANSWER a flexible premium deposit fund and a monthly renewable term insurance
policy
