MD Life and Health Final Exam Questions with Verified Solutions

MD Life and Health Final Exam Questions with Verified Solutions The difference between a Long Term Care Partnership Plan and a Non-Partnership Plan is which of the following? Asset Protection All of the following are considered appropriate uses of life insurance for business purposes EXCEPT Protecting the business by covering entry level employees with life insurance Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n) conversion Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Which of the following is the likely result? Care is covered Which of these statements concerning Traditional IRAs is CORRECT? Earnings are taxable when withdrawn Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must be the same and the premium cannot exceed 102% A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied? Participation or contribution rules have been violated Who regulates the quality of care provided by a heath maintenance organization (HMO)? Secretary of the Department of Health and Mental Hygiene Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? Accidental bodily injury provision Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Nothing Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this? Guaranteed insurability rider The deeds and actions of a producer indicate what kind of authority? Apparent Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n) deductible An individual most likely will have an insurable interest in insuring a person's life if an economic interest exists for the continuance of the insured's life According to life insurance contract law, insurable interest exists at the time of application In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at 60% of the benefit Which of the following is considered to be an alternative to a life settlement? Accelerated death benefit rider A separate converted policy may, at the option of the insurance company, be issued to cover a(n) dependent Which