KY Health Insurance Questions and Answers Already Passed

KY Health Insurance Questions and Answers Already Passed Social security taxes are paid by employees with after tax dollars The premiums paid by a company for group health insurance for its employees are Tax deductible by the company and not considered taxable income to the employees Premiums for individually-owned health insurance policies may be deductible if the taxpayers medical expenses exceed 7.5% AGD Benefits paid by individually-owned accident, health, disability, or LTC policies are generally Income tax free by the taxpayer if benefits do not exceed actual expenses Qualified long term care coverage is Deductible by the employer but not the employee Individual disability insurance premiums are Not deductible to the insured, by benefits are received tax free Are premiums for key employment insurance tax deductible? No The maximum amount that the Kentucky life and health insurance guaranty association will cover respect to any life $300,000 The initial amount of credit life insurance may not exceed The total amount repayable under the contract of INDEBTEDNESS When a husband and wife are insured jointly under a credit life insurance policy, the premium may not exceed 150% If a fraternal benefit society provides benefits on the lives of children, the age requirement for adult membership may not be less than 15 Under a health benefit plan, what action may an insurer properly take on the basis of a genetic test for which symptoms have not yet manifested? Renew the policy How long is the free look period? 10 days A Medicare supplement policy must provide a free loom period of at least 30 days The first year for selling a Medicare supplement policy may not be more that what percentage of the commission for servicing the policy the second year? 200% All Medicare supplement policies must be what? Guarantees renewable Insurers issuing LTC policies must give purchasers the option to buy an inflation protection feature that increases benefits at an annual rate of at least 5% What particular exclusion may NOT be contained in a LTC policy in Kentucky? Exclusion for certain types of dementia If a health insurer fails to issue a premium rate quote to an individual within 30 days after receiving a properly completed app requesting a quote, what may happen? The insurer must issue coverage to the individual and may not impose any preexisting conditions exclusion The maximum period for which a group health plan may exclude benefits for preexisting conditions for a participant who is not a late enrollee is 12 months Under Kentucky law, an insurer formed under the laws of Michigan is considered to be A foreign insurer An incorporated insurer with its capital divided into shares and owned by its shareholders is A stock insurer The commissioner of insurance is appointed by The governor with consent of the senate An agent must notify the commissioner of a change in the agent's legal name or address within 30 days of change To avoid having to take another examination, an agent who allows his license to lapse must reinstate the license within 12 months The Kentucky continuing education requirement for each continuing education biennium is 24 hours of courses The premium tax imposed on unauthorized insurance business transacted in Kentucky is what percentage of gross premiums? 2% An insurer who receives notice of a life or health insurance claim must provide the necessary claim forms and instructions to the claimant within how many days after the notice? 15 Youngest age a person can purchase life insurance is 15 Kentucky law does not require continuing education from whom? Limited lines and credit agents A nonprofit that operates for the exclusive benefits of its members is called: Fraternal benefit society Business overhead expense policies are a specialized form of Disability insurance What kind of air travel is generally included in health insurance policies Commercial What is not taken into account with regard to premium computation? Financial condition of the insured What best/most describes a type of policy intended to cover extended residence in a nursing home? LTC insurance Under state law a person electing to continue group health insurance does not pay directly to whom The insurer What cannot be excluded from an LTC policy? Alzheimer's The premium for a joint life policy may not be more than ___ of the premium for a single life 150% What is not covered under hospital expense policy? Nursing home care An alternative to disability income insurance includes: Savings Insureds are to be advised that reports about them are being requested according to what? Fair credit reporting act Class of persons not individually identified Blanket policy What do you call the percentage of medical expense paid by the insured before the major medical insurance pays? Deductible Upon receipt of a reinstatement app the company has ___ days to make a decision and notify the applicant. If reinstated, there will be a new ___ day probationary period. 45;10 Medicare supplement policies must be made available on a guaranteed issue basis to persons who apply no later than ___ days after the termination of prior coverage 63 Premiums for a key-person disability policy Are paid by the business and not tax-deductible An insured has an A&H policy with the phrase "accidental bodily injury." Is this phrase more or less restrictive than "accidental means" Less disability due to a related cause or prior disability Recurrent An A&H policy that excludes coverage for injuries arising out of the insured's job is called a Non occupational policy Alicia wants to buy a disability income policy that pays a maximum monthly benefit of $1800. Which rider would ensure that the disability benefit keeps pace with inflation? Cost of living rider Who fills out the application? Agent Policy owners may transfer all their rights, title, or interest in an insurance contract to another party through An absolute assignment Policy owners may transfer a portion of their rights, title, or interest in an insurance contract to another party, usually to secure a debt through A collateral assignment Licensees must satisfy how many hours of continuing education each biennium 24 What is the min amount of legal liability ins Kentucky agents are required to carry? $20,000 per incidence; $100,000 in aggregate per year When an insurance company declares a surplus, dividends are usually paid to Participating policyholders Jenny is paralyzed for life in a car accident. Which public program will she likely be eligible for? Social security disability When an insured changes to a less hazardous occupation, the ins co will Reduce the premium (with proof) Who is responsible for medical expenses if an unauthorized co does not pay a claim? The insured An insured has an A&H policy which the company declined to renew the at the policy anniversary date. This policy is Optionally renewable Benefit paid for dismemberment Capital sum Once a policy has been reinstated the insured must wait what amount of time before coverage for sickness is available? 10 days Because Keri can not find the type of insurance she needs from an authorized insurer in her state, she may buy the insurance from an unauthorized insurer through Excess and surplus lines of insurance What does the "Conformity with State Statutes" provision provide? Amy provision in conflict with state statutes in the state which the insured resides on the effective date of the policy is automatically amended to conform to the min requirements of the statutes What benefits are usually provided by a hospital policy? -Xrays -hospital room and board -laboratory fees Not required to complete biannual continuing education Insurers ___ hours must be in the agents line of authority, and ___ hours must be on the subject of ethics 6;3 The insured may request in writing that health ins benefits be paid to A doctor, hospital or surgeon A misstatement can void a contract if it is Material hospital indemnity policy pays benefits directly to The insured If an insured is receiving continuing disability claims, the ins co can require notice of continuance of claim every 6 months Through misrepresenting the facts, inducing an individual to lapse a policy with one company and buy one from another Twisting The basis on which health maintenance organizations provide health care is Prepaid Following an incident, an insured is unable to perform the duties of any occupation. This is called Total disability Medicare supplement ins is designed to Pay at least some of the health care costs not covered by medicare Which of the following programs is often considered a combination of gov/public and private insurance Medicare part C An accelerated benefits rider (for LTC/custodial care) may be added to what type of policy? Life insurance Most policies stipulate that the accidental death benefit will be paid only if the death occurs within how many days? 90 Jonathon falls ill five days after a disabling accident. Which may he collect benefits from Benefits from either his accident OR his illness but not both What is NOT a duty of the executive director (commissioner) Propagate KY insurance laws If the premium does not accompany the application, the producer must do what? Obtain statement of good health from the insured Who is required to sign the application? -agent -applicant -insured What is the deductible amount for basic surgical expense insurance? $0 Accidental Death and Dismemberment policy with a principal value of $20000. Loses sight in both eyes how much will he receive $20,000 Discouraging policyholders from cancelling existing coverage "Conservation effort" A request from the commissioner for a producer to stop committing a violation is called A cease and desist order Workers Compensation benefits are regulated by: State governments Who would provide the insurer with info concerning an applicants medical treatment history? APS - attending physicians statement An applicant does not submit the initial premium when she submits an app. What next? The agent delivers the policy and collects the initial premium. The applicant must complete a statement of good health Self employed business owner. What percentage of his medical expense plan premiums is tax-deductible? 100% COBRA applies to employers with at least 20 employees The amounts added to principal sum of policies for successive renewals of policies are called Accumulations Not a common exclusion from most insurance policies Mental infirmities Sally applies for LTC benefits under Medicaid. Her private LTC coverage pays out $100,000 in benefits prior to her application. What amount of assets will be excluded from Medicaid asset recovery? $100,000 At what age may you earn income without affecting your social security benefit amount? 65