Life and Health Insurance Exam 219 Questions with Verified
Answers
Which dividend option would an insurer invest the policyowner's money and add
any interest earnings as the dividends accrue? - CORRECT ANSWER Accumulation
at interest option
Which of these is not a true statement regarding HIC's - CORRECT ANSWER
Benefits are provided on a reimbursement basis
Which of the following pertains to the analysis of an applicant's personal
information and determining whether insurance should be issued or declined? -
CORRECT ANSWER Underwriting
Which of the following do NOT provide primary care to HIC members? - CORRECT
ANSWER Surgeons
the time limit for filing claim disputes is addressed in which provision of an
accident and health policy - CORRECT ANSWER Legal actions
All of the following are included as part of a contract in the entire contract
provision EXCEPT the - CORRECT ANSWER changes made by the producer
Kristi purchases an annuity that will pay her husband an income for 15 years. If he
dies, this income will become payable to their children for the remainder of the
period. Kristi has what kind of annuity? - CORRECT ANSWER Temporary annuity
certain (Guaranteed payments for specific period of years)
Maria is a preferred provider organization subscriber and received care from an
out of network provider. Which of the following is the likely result? - CORRECT
ANSWER Care is covered
Which type of life insurance is normally associated with a payor benefit rider -
CORRECT ANSWER Juvenile insurance
,The federal Benefit Program consists of two types of health plans for federal
civilian employees. The two plans are fee for service and - CORRECT ANSWER
Prepaid
A Medicare Supplement basic benefit is - CORRECT ANSWER the first 3 pints of
blood per year
Coordination of benefits regulation applies to all of the following plans EXCEPT -
CORRECT ANSWER Preferred Provider Organizations (PPO'S)
The double indemnity provision in a life insurance policy pertains to an insured's
death caused by a(n) - CORRECT ANSWER accident
What guarantees that the statements supplied by an insurance applicant are
true? - CORRECT ANSWER warranty
A life insurance policy that contains a guaranteed interest rate with the chance to
earn a rate that is higher than the guaranteed rate is called? - CORRECT ANSWER
Universal
Under the Affordable Care Act, how would a grandfathered health plan lose it
grandfathered status? - CORRECT ANSWER The insurer significantly raises
coinsurance charges, deductibles, or copayment charges
Medicare Part B covers - CORRECT ANSWER Doctors charges
Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? - CORRECT ANSWER Business overhead
expense policy
"Maximum benefits" refers to the - CORRECT ANSWER upper limit of the total
lifetime benefits the insurance company will pay
In group health care, what is the purpose of the coordination of benefits
provision? - CORRECT ANSWER Determines what is paid by the primary and
secondary insurers in the even of a claim
, Long term care policies may provide coverage for claims arising from - CORRECT
ANSWER Senile dementia
Rob purchased a standard whole life policy with a $500,000 death benefit when
he was age 30. His insurance agent told him the policy would be paid up if he
reached age 100. The present cash value of the policy equals $250,000. Rob
recently died at age 60. The death benefit would be - CORRECT ANSWER $500,000
A renewable Term Life Insurance policy allows the policy owner the right to renew
the policy - CORRECT ANSWER right to renew without providing proof of
insurability
A dread disease policy is considered to be a type of - CORRECT ANSWER limited
health insurance policy
Group dental plans will frequently place a limit on annual benefits in order to
minimize - CORRECT ANSWER adverse selection
What is a corridor in relation to a Universal Life insurance policy? - CORRECT
ANSWER The gap between the total death benefit and the policys cash value
According to HIPPA, when an insured individual leaves an employer and
immediately begins working for a new company that offers group health
insurance, the individual - CORRECT ANSWER Is eligible for coverage upon hire
Which of these is NOT considered a supplemental health insuring corporation
(HIC) service? - CORRECT ANSWER outpatient medical services
How many employees must an employer have for a terminated employee to be
eligible for COBRA? - CORRECT ANSWER 20 employees
Ken is a producer who has obtained Consumer Information Reports under false
pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that
may be imposed on Ken? - CORRECT ANSWER $5,000
Who is the individual paid on a fee for service basis - CORRECT ANSWER Provider
Answers
Which dividend option would an insurer invest the policyowner's money and add
any interest earnings as the dividends accrue? - CORRECT ANSWER Accumulation
at interest option
Which of these is not a true statement regarding HIC's - CORRECT ANSWER
Benefits are provided on a reimbursement basis
Which of the following pertains to the analysis of an applicant's personal
information and determining whether insurance should be issued or declined? -
CORRECT ANSWER Underwriting
Which of the following do NOT provide primary care to HIC members? - CORRECT
ANSWER Surgeons
the time limit for filing claim disputes is addressed in which provision of an
accident and health policy - CORRECT ANSWER Legal actions
All of the following are included as part of a contract in the entire contract
provision EXCEPT the - CORRECT ANSWER changes made by the producer
Kristi purchases an annuity that will pay her husband an income for 15 years. If he
dies, this income will become payable to their children for the remainder of the
period. Kristi has what kind of annuity? - CORRECT ANSWER Temporary annuity
certain (Guaranteed payments for specific period of years)
Maria is a preferred provider organization subscriber and received care from an
out of network provider. Which of the following is the likely result? - CORRECT
ANSWER Care is covered
Which type of life insurance is normally associated with a payor benefit rider -
CORRECT ANSWER Juvenile insurance
,The federal Benefit Program consists of two types of health plans for federal
civilian employees. The two plans are fee for service and - CORRECT ANSWER
Prepaid
A Medicare Supplement basic benefit is - CORRECT ANSWER the first 3 pints of
blood per year
Coordination of benefits regulation applies to all of the following plans EXCEPT -
CORRECT ANSWER Preferred Provider Organizations (PPO'S)
The double indemnity provision in a life insurance policy pertains to an insured's
death caused by a(n) - CORRECT ANSWER accident
What guarantees that the statements supplied by an insurance applicant are
true? - CORRECT ANSWER warranty
A life insurance policy that contains a guaranteed interest rate with the chance to
earn a rate that is higher than the guaranteed rate is called? - CORRECT ANSWER
Universal
Under the Affordable Care Act, how would a grandfathered health plan lose it
grandfathered status? - CORRECT ANSWER The insurer significantly raises
coinsurance charges, deductibles, or copayment charges
Medicare Part B covers - CORRECT ANSWER Doctors charges
Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? - CORRECT ANSWER Business overhead
expense policy
"Maximum benefits" refers to the - CORRECT ANSWER upper limit of the total
lifetime benefits the insurance company will pay
In group health care, what is the purpose of the coordination of benefits
provision? - CORRECT ANSWER Determines what is paid by the primary and
secondary insurers in the even of a claim
, Long term care policies may provide coverage for claims arising from - CORRECT
ANSWER Senile dementia
Rob purchased a standard whole life policy with a $500,000 death benefit when
he was age 30. His insurance agent told him the policy would be paid up if he
reached age 100. The present cash value of the policy equals $250,000. Rob
recently died at age 60. The death benefit would be - CORRECT ANSWER $500,000
A renewable Term Life Insurance policy allows the policy owner the right to renew
the policy - CORRECT ANSWER right to renew without providing proof of
insurability
A dread disease policy is considered to be a type of - CORRECT ANSWER limited
health insurance policy
Group dental plans will frequently place a limit on annual benefits in order to
minimize - CORRECT ANSWER adverse selection
What is a corridor in relation to a Universal Life insurance policy? - CORRECT
ANSWER The gap between the total death benefit and the policys cash value
According to HIPPA, when an insured individual leaves an employer and
immediately begins working for a new company that offers group health
insurance, the individual - CORRECT ANSWER Is eligible for coverage upon hire
Which of these is NOT considered a supplemental health insuring corporation
(HIC) service? - CORRECT ANSWER outpatient medical services
How many employees must an employer have for a terminated employee to be
eligible for COBRA? - CORRECT ANSWER 20 employees
Ken is a producer who has obtained Consumer Information Reports under false
pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that
may be imposed on Ken? - CORRECT ANSWER $5,000
Who is the individual paid on a fee for service basis - CORRECT ANSWER Provider
