CT Insurance Test- Final

Which of the following statements about universal life insurance is NOT true?

Death benefit can be increased

Premiums are flexible

Universal life insurance normally has a minimum guaranteed cash value for duration of policy

The cash value interest rate must equal or exceed a guaranteed minimum value

In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange?

Offer individual, unique formats for consumers to evaluate different health plan options

Certify that a health pan is qualified to be offered on the exchange

Contact the employer if an employee stops coverage under a plan offered in the exchange

Resolve and verify an applicant's inconsistent or incomplete information

Which of the following is considered to be an unfair restraint of competition?

Sliding

Subrogation

Coercion

Defamation

An insured is covered with a health insurance policy.  If the insured would like to cancel the policy, he/she must

wait until the end of the calendar year

notify the insurance company in writing

notify the insurance company by telephone

provide a reason for canceling

An example of endodontic treatment is a 

bridge

crown

filling 

root canal

Which tax cost is normally associated with death?

Federal excise tax

Sales tax

Federal estate tax

Payroll

Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment.  What kind of coverage is this?

Limited coverage

Workers' Compensation coverage

Occupational coverage

Nonoccupational coverage

Employer-paid qualified long-term care insurance premiums are typically

deducted from the employee's net income

included in the employee's gross income

included as a dividend to the employee

excluded from the employee's gross income

An individual who purchases a modified life insurance policy expects

a higher rate of return

coverage for two people

an improvement in future income

a flexible face amount

Jim is covered under a disability income policy.  He is hurt while engaged in an occupation that is more hazardous that the occupation he specified in the policy.  What action will the insurer likely take?

Decrease the premium

Reduce the benefit level

Increase the benefit level

Increase the premium

Which of the following statements BEST describe employer contributions for employer provided health insurance?

Employer is given tax credits for contributions paid

Employee can deduct contributions by the employer

Employer contributions are deductible

Employer contributions are taxable to the employee

A(n)_______ insurer operates in the U.S but is headquartered outside the U.S.

unauthorized

alien

foreign

reciprocal

Which of the following is NOT a duty of the Commissioner?

Adopt, amend, and rescind insurance rules

Enact legislation dealing with insurance

Examine books and records of insurers

Administer oaths

When a deferred annuity is surrendered, who must sign the authorization to do so?

Owner

Annuitant and beneficiary

Annuitant

All parties involved

Which of the following statements BEST describes a double indemnity provision in travel accident insurance?

Benefits are doubled under certain circumstances stated in the policy

If the claim is disputed in court and the insurer loses, the face amount will be double

Benefits cover two people when traveling

Accidents and illnesses are covered while the insured is traveling

A signed good health statement my be requested by the a life produce at the time of 

policy issue

application

policy delivery

physical examination

Which of the following situation would qualify an insured to receive funds from an accelerated (living) benefit rider?

Insured is expected to remain in a nursing home for life

Insured has entered a substance abuse facility

Insured is recovering from a broken leg

A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of 

5%

10%

17.5%

20%

Patrick purchased a long-term care policy.  He has a health condition for which medical treatment was recommended by a physician within 6 months prior to the policy's effective date.  This condition is called a(n)

antecedent condition

pre-existing condition

hazardous condition

grandfather condition

A physician who accepts assignement on all Medicare claims is called a(n)

participating provider

authorized provider

registered provider

admitted provider

Which of the following is NOT an allowable exclusion for long-term care insurance policies?

Self-inflicted injuries

Acute care

Custodial care outside the U.S.

Care for incurable conditions

Why were Exchanges implemented by the Affordable Care Act (ACA)?

To create a one-stop market for standardized health insurance plans

Provide an additional stream of income for the Federal government

To enforce every U.S citizen to purchase health insurance

Assist in the conversion of individual policies to government mandated plans

Notice of information practices must be given to a policyholder at least 

every year

every two years

every three years

every four years

A source of supplemental income for a life insurance policyowner can be derived from the 

cash value

payor benefit

consideration

face amount

Which would NOT be a location where skilled nursing care is provided?

Hospital

Custodial care facility

Nursing home

Personal residence

Which of the following statements accurately describes the "time limit on certain defenses"?

After a stated period of time, claims cannot be denied due to material misrepresentation on the application

All claims can be disputed after two years

An insured cannot file a lawsuit within 90 days of the claim being filed 

The right to return an accident and health policy must be within a 10 days of policy delivery

Which of the following situations would a medical exam NOT be required for an individual health insurance applicant?

Applicant was recently hospitalized

Applicant has not had a physical exam in a number of years

Applicant's family members have a history of cancer

Applicant has no prior health insurance

What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?

Greater than the policy's face amount

Less than the policy's face amount

Depends on the performance of the separate underlying investment account

Equal to the policy's face amount

What is considered interstate travel under the Federal Fraud and False Statements Act?

Canada

Jamaica

Mexico

Puerto Rico

Which of the following is NOT the responsibility of an insurer?

Notifying the Commissioner of the termination of a producer's appointment

Providing sales material to its appointed producers

Assuming liability for a producer's unauthorized acts

Obtaining a Certificate of Authority prior to conduncting insurance business in this state

According to the Affordable Care Act, new Health Insurance Marketplaces are established by the 

ICIICO

CCIIOO

CCOII

CCIIO

Some standard Medicare Supplement policies include which benefit?

Hospice care

Respite care

Vision care

Custodial care

Prepaid dental plans differ from most other types of dental plans in what way?

X-rays and teeth cleanings are fully covered

Possible exclusion of pre-existing conditions

Closed panel of dentists can only be used

Deductibles may have to be met

A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such.  Which of the following does this statue originate from?

Fair Credit Reporting Act

Glass-Steagall Act

Consumer Fairness Act

Civil Rights Act

Julie is an employee with a group health plan that contains the Mandatory Second Surgical Opinion provision.  What is to be expected with this provision in place?

Mandatory second surgical opinions are required when emergency surgery is needed

The second surgical opinion must always be accepted by the insured

Out-of-pocket expenses are higher when a second surgical opinion is obtained as opposed to having only one

Out-of-pocket expenses are lower when a second surgical opinion is obtained as opposed to having only one

Mary is an employee who is covered with disability income policy through her employer.  She pays for the portion of the premium attributable to the cost of residual disability benefits, while her employer pays for the remainder.  What are the tax implications of the policy?

Residual benefits will be received income tax-free

Residual benefits will be taxable to May

Premiums paid by the employer are NOT tax-deductible

Premiums paid by Mary are tax-deductable

Which of the following does NOT involve a life settlement transaction?

Converting term life coverage to whole life insurance

Inducing life settlement contracts

Monitoring life settlement contracts

Securing life settlement contracts

The dental specialty which deals with the replacement of missing teeth is called

Periodontics

Otology

Pediatrics

Prosthodontics

Tim is covered by an accident and health insurance policy that may not be changed in any wya by the insurer up to a stated age, as long as the premiums are paid.  What type of policy is this?

Optionally renewable

Noncancelable

Guaranteed renewable

Conditionally renewable

Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility?

10 days

30 days

60 days

100 days

A business becoming incorporated is an example of risk ____.

reduction

severance

retention

transfer

Statements made by an insured on an accident and health insurance application are considered to be

representations

warranties

conditional

aleatory

Which of the following would permit an insurer to delay a covered disability policy claim?

Probationary period

Service Waiting period

Elimination period

Grace period

Which statement concerning a decreasing term life policy is accurate?

Cash value decreases over the policy period

Premium decreases over the policy period

Face amount decreases over the policy period

Face amount stays the same over the policy period

What effect can a long-term care benefit rider have on a life insurance policy?

Increased cash value

Decreased cash value

Increased death benefit

Reduced death benefit

In the event of premium default, which life insurance provision will use the cash value to keep the policy in force? 

Waiver of premium

Automatic premium loan

Reinstatement

Policy loan

A life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death?

Total premiums paid plus the policy face amount

Face amount plus interest accrued

Interest accrued plus total premiums paid

Face amount minus any outstanding loan balances

Which of the following is true regarding a person receiving a waiver of premium benefit?

The insured must be expected a total recovery within 2 years

The insured will not qualify for short-term disability

The insured will not qualify for workers compensation

The insured must be disabled for a period of time

A policyowner is permitted to take out a policy loan on a whole life policy at what point?

When the policy has a cash value

When the policy has been in force 2 years

When the cash value equals the face amount

When the policyowner has demonstrated financial need

What could be the potential result of taking out a cash value loan under a life insurance policy?

Death benefit will be subject to income taxes if insured dies with an outstanding loan balance

Interest that accrues on policy loan is tax-deductible to the policyowner

Loan amount will be added to the policyowner's gross income

Reduces the amount receivable upon surrender of the contract