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Life And Health insurance > All > Flashcards

All Flashcards

1
Q

Cross purchase agreement

A

Best suited for businesses with a limited number of partners

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2
Q

Comprehensive plan

A

A single major medical contract which covers all medical expenses

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3
Q

Replacing existing coverage with a new policy

A

Not a prohibited sales practice but highly regulated

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4
Q

New pre existing conditions exclusion

A

When new long term care insurance is replaced, the insurer issuing the new policy cannot impose a new pre existing conditions exclusion

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5
Q

Cancel health insurance policy

A

The insured must notify the insurer in writing

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6
Q

HMO Plan

A

An accident and health plan that typically covers only the services of approved providers

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7
Q

Individual retirement account (IRA) rollover contributions are

A

Unlimited by dollar amount

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8
Q

Newborn children

A

Automatically covered under an existing family medical plan at the moment of birth for a period of atleast 31 days

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9
Q

Extended term non forfeiture

A

Provides coverage equal to the death benefit of the lapsed policy

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10
Q

Mandatory second surgical opinion provision

A

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

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11
Q

Will not pay for first 3 pints of blood

A

Medicare Part A

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12
Q

Free look period for a Medicare supplement policy sold in Maryland

A

30 days upon policy delivery

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13
Q

A producer may be found guilty of misrepresentation for

A

Failing to disclose a policy’s exclusions

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14
Q

Example of rebating

A

Splitting the commission with the buyer on a sale of insurance

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15
Q

SHOP Exchange

A

Small Business Health Options Program

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16
Q

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium, when will the policy become effective

A

When the conditions of the receipt are met

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17
Q

Short Term Group disability income benefits are

A

A percentage of weekly earnings up to a state maximum

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18
Q

Health Savings account

A

Applicant must be enrolled in a high deductible health plan (HDHP)

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19
Q

How can a group dental insurer discourage adverse selection

A

Limit the duration of coverage

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20
Q

Fixed life annuity

A

Offers protection against savings depletion due to longevity. A guaranteed income is paid for the annuitants life

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21
Q

Medicare Part A coinsurance payments are covered by

A

Medicare supplement plan A

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22
Q

Medical fee schedule

A

Highest amount payable

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23
Q

Irrevocable beneficiary

A

Cannot be changed without written consent of the beneficiary

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24
Q

At what age do most people become eligible for Medicare

A

65

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25
Q

Conditional receipt

A

Normally given prior to a policy being issued

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26
Q

Replacement regulations

A

Primary purpose is to protect policy owners from misrepresentations and loss of benefits

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27
Q

Disability buy-sell agreement

A

Owners by the business entity

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28
Q

Managing general agent

A

Represents the insurer

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29
Q

Scheduled hearing

A

Producer must be given notice 10 days prior

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30
Q

Medical information bureau

A

Consists of members from insurance companies

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31
Q

Residual disability

A

Inability to perform some of the duties of one’s own occupation

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32
Q

A pre existing conditions limitation may not exceed ___ months in all Medicare supplement policies sold in Maryland

A

6

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33
Q

What must be disclosed when a producer advertises a life insurance policy

A

Name of the actual insurer

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34
Q

Which health policy clause specifies the amount of benefits to be paid

A

Insuring

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35
Q

A producer recently replaced an existing Medicare supplement policy with a new policy
The producers compensation for the new policy

A

Cannot exceed the renewal commission of the original policy.

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36
Q

During the early years of a whole life insurance policy, the cash value will normally be

A

Less than the total premiums paid

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37
Q

ERISA requires that a summary plan description must be provided to a new plan member within how many days following the new members eligibility date

A

90 days

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38
Q

How are the premiums for an individually owned disability income policy treated for tax purposes

A

Not tax deductible at all

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39
Q

Group deferred annuity

A

Employer holds a master contract and certificates of participation are given to the persons covered by the plan

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40
Q

A group Medicare supplement policy was terminated and not replaced by the insurer

A

The insurer must provide an offer of conversation to individual coverage

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41
Q

Employer paid qualified long term care insurance premiums are typically

A

Excluded from the employees gross income

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42
Q

A health insurance applicant is notified that a physical examination is required.

A

Physical exams are performed at the expense of the insurer

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43
Q

The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called

A

Nonforfeiture options

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44
Q

Surplus lines license

A

Required to sell insurance products for an unauthorized insurer in Maryland

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45
Q

Martial deduction

A

Exempts the transfer from estate taxes

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46
Q

What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual

A

Management of proceeds would be provided

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47
Q

What does a 402k plan generally provided it’s participants

A

Salary-deferral option

48
Q

Elimination period

A

The time immediately following the start of a disability when benefits are not payable

49
Q

Major medical policy

A

A comprehensive health policy

50
Q

A non qualified medical expense distributions from a health savings account have a tax penalty of

A

20%

51
Q

A teacher recently retired at age 63 and has a tax sheltered annuity. Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today?

A

$200,000
A tax sheltered annuity is funded with pre tax dollars so the entire current value is taxed when surrender. No additional tax penalties are imposed if the owner surrenders the annuity at age 59 1/2 or older

52
Q

What is considered the collateral on a life insurance policy loan

A

The policy’s cash value

53
Q

The owners cost basis for a non qualified deferred annuity is typically the same as the

A

Total premiums paid

54
Q

MEC modified endowment contract

A

If an MEC is surrendered prior to age 59 1/2, the gain is taxable as well as a 10% penalty imposed on that gain

55
Q

Social security disability income requirements state that in order to become fully insured on a permanent basis, you must have worked in a covered occupation for

A

40 quarters

56
Q

Insuring a risk against a possible loss

A

An example of risk transfer

57
Q

Life income settlement option

A

Beneficiary is able to have the benefits converted into an annuity which is based upon the individual’s life expectancy and payable as long as the beneficiary is still alive

58
Q

Entire contract provision

A

Agent doesn’t have the authority to change the policy or waive its provisions

59
Q

Interest income

A

Decreases premiums

60
Q

Cost of living adjustment rider

A

Benefits will go up once per year from when benefits begin

61
Q

A change in a licensees name or address must be provided to the commissioner within

A

30 days

62
Q

Under hipaa requirements eligibility for the pre existing conditions exclusion waiver under new coverage is lost if

A

There is a break in coverage of more than 63 days

63
Q

The life and health insurance guaranty corporation

A

Exists to protect an insured in the event of an insurers impairment or insolvency

64
Q

Pre existing conditions exclusion period

A

12 months after the enrollment date, or 18 months for a late enrollee

65
Q

Noncancelable

A

A noncancelable health policy may not be changed in any way by the insurer up to a specified age as long as the premiums are paid

66
Q

IRS minimum coverage rules

A

A qualified retirement plan must benefit a broad cross-selection of employees

67
Q

Securities product

A

Variable life policy

68
Q

Viatical settlement

A

Sell life insurance policy while terminally ill

69
Q

Qualified retirement plan

A

All withdrawals are taxable as current income. Withdrawals made before age 59 1/2 are hit with a 10% penalty tax

70
Q

Trustee to trustee

A

There is no federal tax withholding involved in a transfer of funds from one qualified plan into another except rollovers with a 20% withholding

71
Q

Cancer plan

A

A limited accident and health plan

72
Q

Elimination period of an individual disability policy

A

The Amount of time a disabled person must wait before benefits are paid

73
Q

Back end load

A

Surrender charge

74
Q

Bailout feature

A

Some annuity contracts allow the owner to withdraw fund without a withdrawal charge if the interest rate falls below a certain level

75
Q

Hold harmless clause

A

Risk transfer

76
Q

Medicare SELECT

A

a type of Medicare supplement insurance where the insured agrees to use preferred providers in exchange for paying a lower premium

77
Q

Nonqualified HSA withdrawals

A

Subject to income taxes and a 20% penalty

78
Q

Cost basis

A

The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the cost basis

79
Q

Financial records of domestic company

A

Must be inspected every 5 years by commissioner

80
Q

Medicare Part A funding

A

Comes from federal payroll and self employment taxes

81
Q

Medical loss ratio

A

The percent of premium an insurer spends on claims and expenses that improve health care quality

82
Q

First time homebuyers

A

Able to withdraw up to 10,000 from their qualified IRAs without incurring the 10% early withdrawal penalty

83
Q

A health insurer must provide a proof of loss form

A

Within 15 days of receipt of the notice of loss

84
Q

Surplus’s lines license

A

Required to sell for an unauthorized insurer

85
Q

Extended term insurance nonforfeiture option

A

The cash value is used as a premium to purchase the coverage

86
Q

Coinsurance for skilled nursing facilities

A

A flat dollar amount per day after the 100% Medicare coverage ends

87
Q

Fixed period settlement option

A

The dollar amount of each installment depends upon the total number of installments

88
Q

Credit life insurance policy

A

Borrower pays the premiums on any credit life insurance policy

89
Q

Viator

A

The policy owner who sells his life policy to a third party for a reduced face amount is the viator in a viatical settlement

90
Q

Minimum benefit period that must be be offered by a long term care policy

A

12 months

91
Q

Fee for service FFS

A

a payment model where services are unbundled and paid for separately according to a schedule laid out in the policy

92
Q

Employees need for COBRA to apply

A

20 or more

93
Q

Reserves

A

The accounting measurement of an insurers future obligations to its policyholders

94
Q

Maryland life and health insurance guaranty corporation

A

Funded by assessments of member insurers

95
Q

When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer

A

Promptly

96
Q

Medicare Part b

A

Open enrollment period is January through March of each year

97
Q

Medicare part b Coinsurance

A

A Medicare supplement core benefit

98
Q

Backdating

A

To obtain a premium rate based on an earlier age

99
Q

Church plans

A

Exempt from ERISA regulations

100
Q

A Medicare supplement policy is required to do which of the following

A

Provide a 30 day free look period

101
Q

When issuing disability income coverage to a substandard risk, an insurance company may

A

Shorten the benefit period

102
Q

Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy

A

31 days

103
Q

Flexible premium fixed annuity

A

Offer deferred taxation, flexible payments, a guaranteed, interest rate, and death benefits equal to the cash value

104
Q

Own-occupation definition of total disability

A

The insured will be considered disabled if unable to perform the substantial and material duties of the insureds regular occupation

105
Q

What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual

A

Management of proceeds would be provided

106
Q

The restricted annual limit for plans under the affordable care act is

A

No limit

107
Q

Change of occupation provision

A

If an individual covered under a disability income policy is injured while engaged in an occupation that is more hazardous than the occupation stated in the policy, the result will be the benefit level is reduced

108
Q

Who must sign a rider attached to a health insurance policy in order for it to be valid

A

Insured and producer

109
Q

Custodial care

A

Doctor ordered care that assists an individual with basis daily activity such as bathing dressing and eating

110
Q

An annuity exchanged for a life insurance policy

A

The 1035 exchange does not allow for an annuity to be exchanged for a life insurance policy. This is not considered an equal exchange and will be taxed

111
Q

Hospital pre admission

A

Requires notification be given after the patient is admitted to the hospital for an emergency situation
For non emergency situations, notification is to be given before admission

112
Q

Reinsurance contract

A

Accept a portion of the risk underwritten by another insurer who was contracted for the entire coverage amount

113
Q

Highest mortality rate

A

Age 70 males

114
Q

A producer must maintain customer records

A

For 5 years following the completion date of the insurance transaction

115
Q

Life annuitant outlives life expectancy

A

The funds for additional benefit payments will be derived primarily from funds that were not distributed to life annuitants who died before life expectancy

116
Q

Delayed payment provision

A

Most states allow 6 months

Life And Health insurance (1 decks)

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