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1

A person that is disabled under Social Security is eligible for Medicare benefits after:

a. 5 months (150 days)
b. 24 months (720 days)
* 29 months (870 days)
d. Determination by a Medicare formula

2

Which of the following is NOT a requirement for a captive insurance company in SC?

a. Maintain its principal place of business in SC
b. Appoint a resident registered agent to act on its behalf in SC
c. The Director must be an agent of the company
* Hold at least one Board of Director's meeting every 6 months in SC. (every 12 months)

3

Under MIPPA, low income Medicare beneficiaries receiving help in applying for Medicare must reside in which area?

The 50 states, Washington DC or any U.S. territory

4

The Medicare Part D "doughnut hole" occurs:

When the individual pays a percentage of all prescription drug costs

5

A PPO Plan will usually have all the following features, EXCEPT:

a. Higher reimbursement for in network providers
b. Office visit co-pays
* Mandatory referrals to specialists
d. Deductibles and co-insurance for non-network providers

6

Which of the following is true about Medicare/Medicaid and Medicare supplements?

a. They can provide nursing home benefits needed for aging
b. Medicare and Medicaid supplements can provide nursing home benefits from an injury for 6 months
c. They all provide nursing home benefits
* None of the above

7

Agents issue a conditional receipt to the applicant after the application and premium have been collected. If an insurer accepts the coverage as applied for, when does the coverage begin?

The date of the application or medical exam (whichever is later).

8

What type of health plan would a university provide for its students?

A blanket Health Plan

9

A deferred annuity with a decreasing term life insurance rider is a :

Retirement income annuity

10

A pianist, lost two fingers on her right hand. Though unable to support herself as a pianist, she started teaching piano and now has many students. Her disability would likely be reclassified as:

Any occupation

11

Field underwriting is done by the agent/producer when he/she is face-to-face with the applicant, completing the application. The application contains three main parts:

General information, medical information, producer's report

12

A qualified retirement plan that blends an IRA with a profit-sharing plan and allows the employer to deduct up to 25% of contributions made to all employees is called a:

SEP

13

Any of the following should be considered in a needs approach calculation, EXCEPT:

a. Income needed needed for daily expenses
b. Cash required retiring outstanding debt
c. Funding college tuition for surviving children
* Amount needed to retire comfortably

14

Which of the following statements concerning a Medicare Supplement plan are true?

a. An individual must qualify for Medicaid to be eligible for these policies
b. An insurance company must be affiliated with Medicare to sell supplement policies
c. Medicare supplements are typically available when a person reaches age 59.5 and up
* An insurance company must have a certificate of authority to market Medicare Supplements

15

Which of the following in not a correct statement about equity-indexed annuities?

* A securities license is required to sell EIAs
b. The principal and interest are guaranteed
c. Earnings above the guaranteed rate are linked to the stock market
d. Earnings are also tied to the insurer's overall investment performance

16

Any of the following transactions will be subject to federal income tax consequences in a modified endowment contract (MEC), EXCEPT:

a. Policy Loans
b. Policy withdrawals
c. Partial withdrawals
* Death proceeds

17

All of the following types of policies will not be subject to coordination of benefits, EXCEPT:

a. Hospital indemnity policies
b. Medicare Supplement policies
* Group policies
d. Individual Health policies

18

Which of the following statements concerning the payment from a non-qualified annuity is correct?

a. Since this is a non-qualified plan, all payments are 100% tax free
* Since this is a non-qualified plan only a portion of the payment will be taxable
c. Since this is a non-qualified plan all the income received will be taxable
d. If the income is below a certain threshold, Jack is not required to report it.

19

All of the statements are true about universal life policies, EXCEPT:

a. The actual cost of the insurance is based on annually renewable term life insurance.
b. The policyowner can increase or decrease the death benefit during the policy term.
* Universal life policies are only subject to the interest rates stated in the contract.
d. The interest earned by the cash accounts has a guaranteed minimum.

20

The rates of any life insurance policy must be the same for people:

a. of the same gender
b. of the same geographic location
* of the same class and equal expectation of life
d. all of the above

21

What is the maximum fine the Director can levy on an insurer who intentionally violates SC insurance law?

$30,000

22

All of the following are non-routine dental procedures, EXCEPT:

a. Crowns and Fillings
b. Dentures
* Fluoride treatments
d. Bridges

23

A change of occupation provision will allow the insurance company to do any of the following at the time of the claim, EXCEPT:

a. pay the benefits stated in the policy
* increase the premiums for that individual
c. pay a reduced benefit for a higher risk occupation
d. require a doctor's statement confirming disability

24

All of the following are true regarding comprehensive dental plans, EXCEPT:

a. Comprehensive plans have coinsurance
b. Comprehensive plans have deductibles
* Benefits are paid on a first-dollar basis
d. Comprehensive plans are also referred to as nonscheduled

25

Short-term disability plans may be designed with any of the following features, EXCEPT:

a. Benefits may be paid as a percentage of income
b. Benefits may be paid as a flat indemnity amount
* Benefits will coordinate with Workers' Compensation
d. Both accidents and sicknesses will be covered

26

All of the following are limited type policies, EXCEPT:

a. Accident only
b. Specified disease
* Physician expense
d. Basic hospital expense

27

The children's rider is not:

a. A rider to cover only the children
b. A form of term insurance
c. Part of the life policy of an insured
* A family rider

28

What is the only place that a blank insurance policy can be signed?

a. At the insured's home
b. At the insured's office
c. At a bank
* In a coin-operated machine

29

What prohibited practice manipulates through the threat of a negative result?

* Intimidation
b. Coercion
c. Boycott
d. Fraud

30

A vision plan will usually include benefits for all of the following, EXCEPT:

a. Annual eye exam
* Eye surgery
c. Contact lenses
d. Eyeglass frames