Tennessee Health Exam Latest Update
Questions with Correct Answers Graded
A Full score
3 types of enrollment periods for Medicare Part A - Answer --Initial Enrollment Period
-General Enrollment
-Special Enrollment
A guaranteed renewable health insurance policy allows the policy holder to.... - Answer -Renew
the policy to a stated age, with the company having the right to increase premiums on the entire class.
According to the Coordination of Benefits provision, if both parents have coverage when they are
employed, under whom will the children be covered? - Answer -If both parents name their
children as dependents under their group policies, the order of payment will usually be determined by
the birthday rule.
The birthday rule states the coverage of the parent whose birthday is earliest in the year will be
considered primary.
Are key person disability premiums deductible to the business? - Answer -The premiums for this
are not deductible to the business.
Are the benefits received for business overhead expense insurance tax deductible? - Answer -The
benefits received for this insurance are taxable to the business.
Are the premiums paid for business overhead expense insurance tax deductible? - Answer -The
premiums paid for this insurance is tax deductible to the business as a business expense.
Describe an individual who would be a candidate for custodial care. Who would provide it? -
Answer -This care is for meeting personal needs and must be given under doctors orders.
Describe the taxation of premiums and benefits in a disability buyout agreement. - Answer -The
premiums paid by the business are not tax deductible and the benefits are received tax-free.
Explain the concept of coverage on a first-dollar basis. - Answer -This coverage does not require
the insured to pay a deductible.
For sole proprietors and partners, what percentage of the cost of a medical expense plan is deductible? -
Answer -100% of the cost of the medical plan may be deductible in this case.
General disability will not cover... - Answer --Intentionally Self Inflicted Injuries
-War Injuries
, -Overseas residence
Injuries suffered while committing a felony
How are key person disability benefits received taxed? - Answer -The benefits in this case are
received tax free by the business.
How are personally-owned disability benefits received by the individual taxed? - Answer -These
benefits are received income tax free by the individual.
How can an insurance company use the information it obtains from the MIB? - Answer -The
information from this can be used to conduct further investigation into an applicant's current insurability.
How do Limited Risk and Special Risk policies differ from each other? - Answer -The first policy
defines the specific risk in which AD&D benefits would be paid.
The second, will cover unusual types of risks that are not normally covered under AD&D.
How does a POS plan differ from a traditional HMO? - Answer -In this plan, the employees do not
have to be locked in to one plan or make a choice between the two plans.
How does someone qualify for Social Security disability income benefits? - Answer -In order to
qualify, the individual must have the proper insured status, meet the definition of disabled, and satisfy
the waiting period.
How is part B of Medicare funded? - Answer -This is funded by monthly premiums and from the
general revenues of the federal government.
How is someone determined to be totally disabled according to Social Security? - Answer -This is
when someone has the inability to engage in any gainful work that exists in the national economy. This
must be a result from a medically determined mental or physical impairment. This must also be expected
to result in early death or last for at least 12 months.
How is the cost of a group policy determined? - Answer -Cost of this policy will vary by ratio of
males to females and the average age of the group.
How is the taxation of insurance benefits determined? - Answer -This is often determined by
whether or not the premiums were taxed.
How is underwriting unique for group policies? - Answer -This is unique in that when it is written,
every member must be covered regardless of sex, age, gender, physical condition, etc.
How long does an elimination period usually last? Give a range. - Answer -The range of this, found
in most policies, is 30 to 180 days.
How long is the open enrollment period for Medicare supplement policies? - Answer -6 Months
How long will a disability pay? - Answer -This insurance is designed to provide a reasonable and
predetermined income to a party for a set period of time; this time is subject to a "time deductible:
termed an elimination period.
Questions with Correct Answers Graded
A Full score
3 types of enrollment periods for Medicare Part A - Answer --Initial Enrollment Period
-General Enrollment
-Special Enrollment
A guaranteed renewable health insurance policy allows the policy holder to.... - Answer -Renew
the policy to a stated age, with the company having the right to increase premiums on the entire class.
According to the Coordination of Benefits provision, if both parents have coverage when they are
employed, under whom will the children be covered? - Answer -If both parents name their
children as dependents under their group policies, the order of payment will usually be determined by
the birthday rule.
The birthday rule states the coverage of the parent whose birthday is earliest in the year will be
considered primary.
Are key person disability premiums deductible to the business? - Answer -The premiums for this
are not deductible to the business.
Are the benefits received for business overhead expense insurance tax deductible? - Answer -The
benefits received for this insurance are taxable to the business.
Are the premiums paid for business overhead expense insurance tax deductible? - Answer -The
premiums paid for this insurance is tax deductible to the business as a business expense.
Describe an individual who would be a candidate for custodial care. Who would provide it? -
Answer -This care is for meeting personal needs and must be given under doctors orders.
Describe the taxation of premiums and benefits in a disability buyout agreement. - Answer -The
premiums paid by the business are not tax deductible and the benefits are received tax-free.
Explain the concept of coverage on a first-dollar basis. - Answer -This coverage does not require
the insured to pay a deductible.
For sole proprietors and partners, what percentage of the cost of a medical expense plan is deductible? -
Answer -100% of the cost of the medical plan may be deductible in this case.
General disability will not cover... - Answer --Intentionally Self Inflicted Injuries
-War Injuries
, -Overseas residence
Injuries suffered while committing a felony
How are key person disability benefits received taxed? - Answer -The benefits in this case are
received tax free by the business.
How are personally-owned disability benefits received by the individual taxed? - Answer -These
benefits are received income tax free by the individual.
How can an insurance company use the information it obtains from the MIB? - Answer -The
information from this can be used to conduct further investigation into an applicant's current insurability.
How do Limited Risk and Special Risk policies differ from each other? - Answer -The first policy
defines the specific risk in which AD&D benefits would be paid.
The second, will cover unusual types of risks that are not normally covered under AD&D.
How does a POS plan differ from a traditional HMO? - Answer -In this plan, the employees do not
have to be locked in to one plan or make a choice between the two plans.
How does someone qualify for Social Security disability income benefits? - Answer -In order to
qualify, the individual must have the proper insured status, meet the definition of disabled, and satisfy
the waiting period.
How is part B of Medicare funded? - Answer -This is funded by monthly premiums and from the
general revenues of the federal government.
How is someone determined to be totally disabled according to Social Security? - Answer -This is
when someone has the inability to engage in any gainful work that exists in the national economy. This
must be a result from a medically determined mental or physical impairment. This must also be expected
to result in early death or last for at least 12 months.
How is the cost of a group policy determined? - Answer -Cost of this policy will vary by ratio of
males to females and the average age of the group.
How is the taxation of insurance benefits determined? - Answer -This is often determined by
whether or not the premiums were taxed.
How is underwriting unique for group policies? - Answer -This is unique in that when it is written,
every member must be covered regardless of sex, age, gender, physical condition, etc.
How long does an elimination period usually last? Give a range. - Answer -The range of this, found
in most policies, is 30 to 180 days.
How long is the open enrollment period for Medicare supplement policies? - Answer -6 Months
How long will a disability pay? - Answer -This insurance is designed to provide a reasonable and
predetermined income to a party for a set period of time; this time is subject to a "time deductible:
termed an elimination period.
