Disability Insurance

Question 1

A disability elimination period is best described as a _____

Answer 1

Time deductible

Question 2

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?

Answer 2

Partial disability

Question 3

What percentage of a participant’s income are group long-term disability benefit amounts typically limited to?

Answer 3

60%

Question 4

The factor used most often when underwriting a disability income policy is _____?

Answer 4

Annual earnings

Question 5

The waiting (elimination) period for a disability insurance policy __

Answer 5

excludes payments for a short-term illness or injury

Question 6

The waiver of premium does NOT include which provision?

Answer 6

All future premiums are waived if the insured recovers from the disability

Question 7

What disability policy provision would address any concerns of the value of the benefits decreasing over time?

Answer 7

Cost of living benefit

Question 8

Which type of disability would be less than total impairment and equal to permanent impairment?

Answer 8

Permanent partial disability

Question 9

What is a presumptive disability provision?

Answer 9

This provision states certain conditions that automatically qualify the insured for the full benefit amount because the severity of the conditions presumes the insured is totally disabled, even if the insured is able to work.

Question 10

Which of the following statements regarding Group Disability Income Insurance is true?

Answer 10

It provides benefits for nonoccupational illnesses and injuries

Question 11

Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of ___?

Answer 11

100% of costs

Question 12

What is NOT a qualification for establishing an HSA?

Answer 12

Enrolled in a health plan with a prescription drug benefit

Question 13

What is a benefit schedule?

Answer 13

A health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses.

Question 14

What is the tax liability for employer contributions in Health Savings Accounts (HSA’s)?

Answer 14

No tax payment needed

Question 14

How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company?

Answer 14

With a usual, customary, and reasonable fee

Question 15

Which of the following statements is NOT true regarding a Critical Illness Plan?

Answer 15

Coverage is limited to a single devastating disease

Question 16

What is an Integrated Deductible?

Answer 16

A single deductible applied to both medical and dental insurance coverage

Question 17

Low frequency diseases can be exclusively covered by what kind of health insurance policies?

Answer 17

Limited policies

Question 18

When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid?

Answer 18

No deductible payment is required

Question 19

A pharmacy benefit covers prescription drugs derived from a list called ___?

Answer 19

A drug formulary

Question 20

Which plan does NOT allow for employee contributions to be taken on a pre-tax basis?

Answer 20

Health Reimbursement Arrangement Plan. Employers contribute to these, not employees.

Question 21

Maximum benefit refers to the _____

Answer 21

Upper limits of the total lifetime benefits the insurance company will pay

Question 22

A health insurance policy is incontestable after it has been in force for ____ years.

Answer 22

Two (2)

Question 23

After purchasing an individual health insurance contract, policyowners have ___ days from the date of receiving the policy to return it for a full refund for any reason.

Answer 23

Ten (10)

Question 24

How many days is the free-look period for Medicare supplements and long-term care insurance?

Answer 24

Thirty (30)

Question 25

In Minnesota, an employee of a small employer MUST work an average of at least ___ per week to be considered full time.

Answer 25

Twenty (20)

Question 26

An example of rebating would be ___

Answer 26

Returning a portion of premium an inducement to purchase insurance

Question 27

In Minnesota, legal action can be taken against an insurer for failure to pay health insurance claims for a period not to exceed ___ years.

Answer 27

Three (3)

Question 28

Insured losses are covered immediately after a health policy is reinstated when ____

Answer 28

The losses result from accidental injuries

Question 29

To be classified as a small employer in Minnesota, an employer must employ ___

Answer 29

1-50 employees

Question 30

When a health policy requires payment of an additional premium to provide coverage for a newborn, the first payment is due ___ days after the date of birth.

Answer 30

31

Question 31

When an insured suffers a loss, written proof must be furnished to the health insurer within ___ days.

Answer 31

90

Question 32

When the insured gives birth, coverage for eligible newborns consist of coverage for injury or sickness including

Answer 32

Birth abnormalities

Question 33

Which of these conditions must be covered under a Long-Term Care policy?

Answer 33

Senile dementia

Question 34

Every ___ year(s), a producer must complete 24 hours of Continuing Education.

Answer 34

2

Question 35

How many days is a temp producer's license valid?

Answer 35

180

Question 36

In Minnesota, a health policy that is paid on a quarterly basis requires a grace period of ____?

Answer 36

31 days

Question 37

The Commissioner of Commerce is appointed by the _____

Answer 37

Govenor

Question 38

Long-Term care policies sold in Minnesota are required to contain cost disclosure information in bold print. Where does the law require this information to be located?

Answer 38

Outline of Coverage

Question 39

The Minnesota Life and Health insurance Guaranty Association is funded by authorized insurers in this State. One of the roles of this organization is to _____

Answer 39

Assist in the prevention of insurer insolvencies

Question 40

Once the Insurance Company receives a notice of claim, they have ___ days to send the claim form.

Answer 40

15

Question 41

What does a Medicare Supplement policy cover?

Answer 41

Allowable amounts under Medicare Part B

Question 42

What is the Minimum benefit period that must be offered by a Long-Term Care policy?

Answer 42

12 months or 1 year

Question 43

When does the Free-look period begin for any health policy?

Answer 43

Date of policy delivery

Question 44

A lapsed health insurance policy has recently been reinstated. How long after reinstatement must an insured wait before coverage for sickness is available?

Answer 44

10 days

Question 45

If an insurer becomes insolvent, the Minnesota Life and Health Guaranty Association guarantees individual health claims up to ___?

Answer 45

$500,000

Question 46

An insurance producer must notify the Commissioner of Commerce within how many days of conviction of a crime?

Answer 46

30 days

Question 47

A ______ ______ is the signed document that starts the free-look period

Answer 47

Delivery receipt

Question 48

The Commissioner of Commerce attains office in which of the following ways?

Answer 48

Gubernatorial appointment