215 License Exam
_____________ health plans are sometimes called "wholesale plans" and provide health
insurance coverage to members of an association or professional society. - ANS -Franchise
Feedback:Franchise life insurance provides each covered individual with their own policy, and
the employer acts merely as a "backer" or "sponsor" of the plan.
\_______________ policies are usually purchased to cover debts whose balances decrease
over time, such as credit accounts and mortgages. - ANS -Decreasing term
\__________________ are the two most important factors in the health insurance underwriting
process. - ANS -Medical history and occupation
In disability income underwriting, income is the most important factor. In health insurance,
medical history and occupation are the most important.
\"Capitation" as used by HMOs means: - ANS -the amount an HMO pays to a physician or
provider in exchange for rendered medical services.
\A _____________ group involves combining several parties into a group for the purpose of
obtaining insurance. - ANS -fictitious
\A $50,000 fine can be assessed for violation of a Cease and Desist order. True or false - ANS
-true
\A group life insurance plan in which the employee and the employer contribute a portion of the
premiums is known as a ____________ plan. - ANS -contributory
Contributory group life insurance plans are those in which the employee 'contributes' a portion of
the premium and the employer pays the rest.
\A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization.
The policy pays benefits on what basis? - ANS -indemnity
If the policy states a daily benefit of $200 and the hospital charges only $100 per day, the policy
will still pay the $200 per day benefit and the insured can use the extra $100 at his/her
discretion.
\A Salary Continuation Plan can be used for the _______________ of a disabled employee. -
ANS -continuance of wages
\According to the NAIC Model Health Insurance Policy Provisions, under the
_________________________ provision, the insurer is prohibited from denying a claim on the
basis of a preexisting condition after the contestable period expires. - ANS -Time limit on certain
defenses
The time limit on certain defenses provision is akin to the incontestability clause in life insurance
policies, except that a fraudulent statement on a health application can be contested at any time
unless the policy is guaranteed renewable.
\AD&D is the purest structure of accident insurance. true or false - ANS -True
, \AD&D policies make benefits payable in the form of the principal sum and capital sum. True or
false - ANS -True
\Adverse Selection is based on what premise? - ANS -The propensity for insuring less favorable
insurance risks.
\Agents must keep records of rebating transactions for at least ______ years. - ANS -5
\All of the following employed persons who have no employer-sponsored retirement plan would
be eligible to set up and contribute to a traditional IRA EXCEPT: - ANS -Edna age 72 nurse
Anyone under the age of 70 ½ with earned income may open a traditional IRA.
\As it pertains to group health insurance, COBRA stipulates that: - ANS -group coverage must
be extended for terminated employees up to a certain period of time at the employee's expense.
\At what age may the owner of an IRA begin to receive payments from his/her retirement fund
without penalty? - ANS -59 1/2
The 10% excise penalty tax imposed before the annuitant reaches age 59 ½ is due to the mere
fact that the tax deferred annuity is specifically designed as a retirement supplement.
\Basic surgical expense policies generally provide coverage for all of the following EXCEPT: -
ANS -miscellaneous expenses such as lab fees and x-rays.
\Bob and Ted both have disability income policies. Bob's policy provides a 15 day elimination
period and a 10 year benefit period. Ted's policy provides a 30 day elimination period and a 7
year benefit period. Who pays higher premiums? - ANS -Bob
The shortest elimination period and the longest benefit period pays the highest premium.
\By most insurer's definitions, "partial disability" is the: - ANS -inability of the insured to perform
certain important duties of his/her job.
Partial disability is defined as illness or injury preventing insureds from performing at least one
or more, but not all, of his/her occupational duties.
\Cafeteria plans are also called - ANS -Section 125 plans
They are a written plan that offers employees a choice between receiving their compensation in
cash or as part of an employee benefit. ... Employee contributions toward cafeteria-plan benefits
are made pre-tax
\Cliff vesting means that an employee is fully vested after ______ years of service. - ANS -5
\COBRA coverage is considered continuous: - ANS -group health coverage
Cobra is used when an employee is terminated, they have 31 days to retain their group health
insurance offered by the employer. this is known as cobra
\Define endowment insurance - ANS -Endowment insurance is a type of life insurance that is
payable to the insured if he/she is still living on the policy's maturity date, or to a beneficiary
otherwise.
\Define sliding - ANS -Sliding occurs when an agent tells/implies that it is required for the client
to purchase specific coverages/products in conjunction with a policy being purchased.
_____________ health plans are sometimes called "wholesale plans" and provide health
insurance coverage to members of an association or professional society. - ANS -Franchise
Feedback:Franchise life insurance provides each covered individual with their own policy, and
the employer acts merely as a "backer" or "sponsor" of the plan.
\_______________ policies are usually purchased to cover debts whose balances decrease
over time, such as credit accounts and mortgages. - ANS -Decreasing term
\__________________ are the two most important factors in the health insurance underwriting
process. - ANS -Medical history and occupation
In disability income underwriting, income is the most important factor. In health insurance,
medical history and occupation are the most important.
\"Capitation" as used by HMOs means: - ANS -the amount an HMO pays to a physician or
provider in exchange for rendered medical services.
\A _____________ group involves combining several parties into a group for the purpose of
obtaining insurance. - ANS -fictitious
\A $50,000 fine can be assessed for violation of a Cease and Desist order. True or false - ANS
-true
\A group life insurance plan in which the employee and the employer contribute a portion of the
premiums is known as a ____________ plan. - ANS -contributory
Contributory group life insurance plans are those in which the employee 'contributes' a portion of
the premium and the employer pays the rest.
\A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization.
The policy pays benefits on what basis? - ANS -indemnity
If the policy states a daily benefit of $200 and the hospital charges only $100 per day, the policy
will still pay the $200 per day benefit and the insured can use the extra $100 at his/her
discretion.
\A Salary Continuation Plan can be used for the _______________ of a disabled employee. -
ANS -continuance of wages
\According to the NAIC Model Health Insurance Policy Provisions, under the
_________________________ provision, the insurer is prohibited from denying a claim on the
basis of a preexisting condition after the contestable period expires. - ANS -Time limit on certain
defenses
The time limit on certain defenses provision is akin to the incontestability clause in life insurance
policies, except that a fraudulent statement on a health application can be contested at any time
unless the policy is guaranteed renewable.
\AD&D is the purest structure of accident insurance. true or false - ANS -True
, \AD&D policies make benefits payable in the form of the principal sum and capital sum. True or
false - ANS -True
\Adverse Selection is based on what premise? - ANS -The propensity for insuring less favorable
insurance risks.
\Agents must keep records of rebating transactions for at least ______ years. - ANS -5
\All of the following employed persons who have no employer-sponsored retirement plan would
be eligible to set up and contribute to a traditional IRA EXCEPT: - ANS -Edna age 72 nurse
Anyone under the age of 70 ½ with earned income may open a traditional IRA.
\As it pertains to group health insurance, COBRA stipulates that: - ANS -group coverage must
be extended for terminated employees up to a certain period of time at the employee's expense.
\At what age may the owner of an IRA begin to receive payments from his/her retirement fund
without penalty? - ANS -59 1/2
The 10% excise penalty tax imposed before the annuitant reaches age 59 ½ is due to the mere
fact that the tax deferred annuity is specifically designed as a retirement supplement.
\Basic surgical expense policies generally provide coverage for all of the following EXCEPT: -
ANS -miscellaneous expenses such as lab fees and x-rays.
\Bob and Ted both have disability income policies. Bob's policy provides a 15 day elimination
period and a 10 year benefit period. Ted's policy provides a 30 day elimination period and a 7
year benefit period. Who pays higher premiums? - ANS -Bob
The shortest elimination period and the longest benefit period pays the highest premium.
\By most insurer's definitions, "partial disability" is the: - ANS -inability of the insured to perform
certain important duties of his/her job.
Partial disability is defined as illness or injury preventing insureds from performing at least one
or more, but not all, of his/her occupational duties.
\Cafeteria plans are also called - ANS -Section 125 plans
They are a written plan that offers employees a choice between receiving their compensation in
cash or as part of an employee benefit. ... Employee contributions toward cafeteria-plan benefits
are made pre-tax
\Cliff vesting means that an employee is fully vested after ______ years of service. - ANS -5
\COBRA coverage is considered continuous: - ANS -group health coverage
Cobra is used when an employee is terminated, they have 31 days to retain their group health
insurance offered by the employer. this is known as cobra
\Define endowment insurance - ANS -Endowment insurance is a type of life insurance that is
payable to the insured if he/she is still living on the policy's maturity date, or to a beneficiary
otherwise.
\Define sliding - ANS -Sliding occurs when an agent tells/implies that it is required for the client
to purchase specific coverages/products in conjunction with a policy being purchased.
