Insurance Exam Practice with Correct Answers 100% Verified and Graded A+ 2025

Insurance Exam Practice with Correct Answers 100% Verified and Graded A+ 2025 An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay? - Correct Answer $120 a day Most LTC policies will pay the benefit amount in a specific fixed dollar amount per day, regardless of the actual cost of care. Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is - Correct Answer Monthly If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits? - Correct Answer 12 Credits Persons disable between ages 24 and 31 can qualify for benefits if they have credit for having worked half of the time between age 21 and the start of the disability. For example, if Joe becomes disabled at age 27, he would need 12 credits (or 3 years' worth) out of the prior 6 years (between ages 21 and 27). How do employer contributions to a Health Savings Account affect the insured's taxes? - Correct Answer HSA contributions made by an employer are not included in the determination of an individual's taxable income. Workers Compensation benefits are regulated by which entity? - Correct Answer The state government offers and regulates Workers Compensation benefits, which vary slightly from state to state. A noncontributory group disability income plan has a 30-day waiting period and offers benefits of $2,000 a month. If an employee is unable to work for 7 months due to a covered disability, the employee will receive? - Correct Answer $12,000, all of which is taxable. In noncontributory group health plans, the employer pays the entire cost, so the income benefits are included in the employee's gross income and taxed as ordinary income.