Dates, Days, and Stats

Question 1

Fair Credit Reporting Act Penalty

Answer 1

fines ($5,000 max) and/or imprisonment (1 year)

Question 2

Blackout Period

Answer 2

time after breadwinner dies, during which no SS benefit is payable to spouse. Begins when youngest child reaches age 16 and lasts until spouse reaches age 60

Question 3

ADandD rider benefit pays if death occurs within

Answer 3

90 days of accident date

Question 4

Accelerated Benefits Rider benefit pays if death is expected within

Answer 4

24 Months

Question 5

Free Look provision is usually

Answer 5

10 days

Question 6

Grace Period for annual premium policies (usual)

Answer 6

31 days following due date

Question 7

Time of payment of claims is usually

Answer 7

no longer than 60 days

Question 8

Contributory Group Life requires what percentage to enroll?

Answer 8

75% of eligible employees

Question 9

Noncontributory Group Life requires what percentage to enroll?

Answer 9

100% of eligible employees

Question 10

Probationary Period for Group Life

Answer 10

1-12 months

Question 11

Enrollment Period for Group Life

Answer 11

Usually 31 days

Question 12

Heath Policy Notice of Claim

Answer 12

20 days after loss

Question 13

Heath policy Proof of Loss

Answer 13

Within 90 days

Question 14

COBRA extends coverage for __ if employee is terminated or has reduction of hours.

Answer 14

18 Months

Question 15

COBRA extends coverage for __ if employee divorce, too old, or death

Answer 15

36 Months

Question 16

Premium for COBRA continued coverage

Answer 16

102% of original premium (employer does not pay)

Question 17

OBRA time

Answer 17

29 Months if disabled at time of termination

Question 18

HIPAA guarantees __ hour hospital stay for new mothers and __ hour stay for C-Section

Answer 18

48 and 96

Question 19

A disclosure about an investigative report must be sent to applicant within ___ of receiving their request to view the report.

Answer 19

5 Days

Question 20

Grace Period for monthly premium policies

Answer 20

10 Days

Question 21

Grace Period for weekly premium policies

Answer 21

7 Days

Question 22

After how many days is coverage automatically reinstated if insurer has not disapproved?

Answer 22

45 Days

Question 23

HIPAA states a new employee is not subject to a waiting period if there were less than __ days between jobs with no coverage.

Answer 23

63 Days

Question 24

LTC policies provide coverage for at least ___

Answer 24

12 Months

Question 25

The minimum loss ratio for medicare supplement policies is ____.

Answer 25

65%

Question 26

The max allowable cash value fixed loan rate in MA is ____.

Answer 26

8%

Question 27

The term of a temporary producers license is ___.

Answer 27

180 Days

Question 28

Life and Health CE Hours

Answer 28

60 hours within the first 3 years and then 45 hours every three years after that

Question 29

Backdating is usually no more than ___.

Answer 29

6 months

Question 30

Settlement Options

Answer 30

- Interest Only - Fixed Period - Life Income - Life Income Period Certain - Life Income Refund - Joint and Survivor

Question 31

Dividend Options (CRAPPO)

Answer 31

- Cash - Reduced Premium - Accumulate at interest - Paid up additions - Paid up policy - One year term

Question 32

Non-Forfeiture Options

Answer 32

- Cash - Reduced paid-up insurance - extended term

Question 33

Maximum number of days Medicare Part A will cover hospital expenses

Answer 33

150 Days

Question 34

What type of receipt guarantees coverage, even if the insured is found uninsurable?

Answer 34

Binding Receipt

Question 35

FSA

Answer 35

- pretax employee contributions (salary reductions) - withdrawals not taxed - no rollover, spend or lose

Question 36

The six characteristics of an insurable risk:

Answer 36

- calculable - affordable - noncatastrophic - homogeneous - accidental - measurable

Question 37

Disability Buy-Sell Taxation

Answer 37

non-deductible premiums, tax free benefits

Question 38

Small employer medical plans may not exclude preexisting conditions from coverage for longer than ____ after the policy's effective date. (old rule)

Answer 38

6 months

Question 39

Once issued, a producers license is valid for ___ before CE is required

Answer 39

3 years

Question 40

The withdrawal rule on annuity cash value is

Answer 40

LIFO

Question 41

False information that will void an insurance contract

Answer 41

Material Misrepresentations

Question 42

The three levels of LTC

Answer 42

- Skilled Nursing (24 hour care) - Custodial Care (help with daily living) - Intermediate (not 24 hour nursing)

Question 43

Required Provisions in a LI Policy

Answer 43

- misstatement of age - reinstatement - grace period

Question 44

A producer must report any administrative action taken against him to the commissioner within ___

Answer 44

30 days

Question 45

A single plan that covers the employees of two or more UNRELATED employers

Answer 45

MEWA

Question 46

Reinsurance Company can accept risks in 2 ways

Answer 46

Facultative (each risk at a time) | Treaty (all risks of a type at a time)

Question 47

Short-Term DI benefit period

Answer 47

6 months - 2 years

Question 48

SIMPLE Plans are set up for companies with ___ or less employees

Answer 48

100

Question 49

Risk Retention Group

Answer 49

Mutual Insurance Company formed to insure people in the same business/industry

Question 50

Free Look for Medicare Supplement and LTC

Answer 50

30 Days

Question 51

Premiums are tax deductible to a business for ______ because they are considered part of the employee's compensation

Answer 51

Executive Bonuses

Question 52

Life insurance owned by insured is included in the estate for valuation purposes. True or false?

Answer 52

True

Question 53

Renewable term policy’s premiums rise with each renewal based on...

Answer 53

Age

Question 54

Gross Premium=

Answer 54

Net Premium + Expense

Question 55

Death benefit it typically paid within

Answer 55

60 Days

Question 56

Punishment for obtaining payment through fraudulent representation

Answer 56

At least $100 fine (no more than $1,000) and no more than 6 months in prison

Question 57

Medicare part A: Skilled Nursing Facility follows a hospital stay of at least

Answer 57

3 days

Question 58

Medicare Part A: Skilled Nursing Facility Coverage Days

Answer 58

100 days total Day 1-20 is paid 100% by medicare Day 20-100 has daily co pays by patient

Question 59

Medicare Part A: Excluded

Answer 59

- first 3 pints of blood - private duty nursing - non-medical services - intermediate care - custodial care

Question 60

Net Premium=

Answer 60

Mortality - interest

Question 61

Disability Notice of Claim if disability is expected to last for at least 2 years (continuing disability)

Answer 61

6 months

Question 62

The group conversion option stipulates coverage will continue for

Answer 62

31 days