Aflac Practice Exam A Study Questions With Correct Answers.

What term refers to accepting a risk and confronting it as it occurs? - Answer-Retention What term relates to a larger group of people that spread a risk for a small specific cost called? - AnswerLoss Sharing An insurance company incorporated in one state and licensed to conduct business within another state is called? - Answer-Foreign What kind of clause relates to this statement: E &N company issued a policy in consideration of the representations on an application and the payment of the first premium? - Answer-Consideration A producer who is appointed with more than one insurer is considered to be: - Answer-An Independent Producer Barb is very upset that her agent didn't hand deliver her insurance policy. Which of the following is true in regard to the matter she received it in the mail? - Answer-There is nothing wrong with the way Barb's agent handled the delivery of her policy An underwriter may reject an application for health insurance if the rejection is based upon which of the following? - Answer-Prescription Usuage Which of the following is a true feature of a Guaranteed Renewable Health Policy? - Answer-The policyholder can renew their policy and their insurer can increase their premium What kind of policy is for a short term? - Answer-Non-Renewable Becky bought a Disability Income policy that pays her a monthly benefit of $1,900. She is concerned about her benefits keeping up with inflation. What rider could she add to help with her concerns? - Answer-Cost of LivingWhat factors are always considered in calculating residual disability benefits? - Answer-Present earnings and earnings before a disability William is studying in Germany for 2 semesters to learn the art of german cuisine. He was injured in a biking accident which left him disabled. He has a disability policy. What percent of his benefits will be paid from it? - Answer-0% What is the SS elimination period for disability benefits? - Answer-5 months B&V Company is an eligible employer to receive a tax credit. This will be available to this company for _____ consecutive years. - Answer-2 Carol is a Navigator that helps consumers with their enrollment in the Health Exchange. When will she be allowed to provide her consumers with insurance advice? - Answer-Never An existing health benefit plan offered by a small employer may be replaced by a SHOP Exchange navigator only if the small employer has which feature? - Answer-Is eligible for a federal tax credit through the SHOP Exchange Betty has a health insurance plan that states that she must pay a certain amount out of pocket before any benefits are paid in a calendar year. What does this describe? - Answer-Calendar year deductible What is defined as a health plan's manner to deliver promised benefits to consumers, by providing them with primary care and specialty physicians' access, without any unreasonable delay? - Answer-Network Adequacy An employee receives a Certificate of Insurance. What information is not included in their certificate? - Answer-Premium Amount Carol is insured under her employer's insurance plan. She works full time and her employer pays the premiums of her coverage. This describes what kind of plan? - Answer-A Non-Contributory PlanWhat is the most required question that must be in each Medigap application? - Answer-Are you eligible for Medicaid? Which of the following would qualify for Medicare under the age of 65? - Answer-A person that meets the Special Needs Requirements What must contain the 30 day Free Look Provision? - Answer-Notice Regarding Replacement What law authorized the NAIC to develop a model for Medicare Supplement Policies? - Answer-OBRA ( Omnibus Budget Reconciliation Act) Will is covered under his employer's Accidental Death and Dismemberment policy. The policy pays double indemnity due to an accidental death situation. If Will dies due to an accident, how will the benefits be taxed? - Answer-He will receive them income tax free. Gill is an employee that just taxed on the cost of his employer's group Life policy. What amount did their coverage exceed in order for this to take place? - Answer-Exceeded $50,000 The exclusion ratio is used with which of the following? - Answer-Annuities To avoid being taxed annually what must a corporation that owns annuity do? - Answer-Designate a human annuitant Bob has a LTC policy that will pay a fixed amount of $200 per day. His LTC facility only charged him $100 per day. How much will Bob's insurer pay? - Answer-$200