Ohio life and Health Insurance Practice Final Exam Questions with accurate answers. Graded A. 2022/2023. Rated A

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Ohio life and Health Insurance Practice Final Exam Questions with accurate answers. Graded A. 2022/2023. Rated A Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are... tax-deductible when paid for which of the following plans? - ✔✔Qualified Long-Term Care plan All _____ policies must be guaranteed renewable. - ✔✔long-term care An attending physician's statement would be appropriate for which life insurance purpose? - ✔✔At the request of the insurer to assist in the underwriting decision Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? - ✔✔Unpaid premium Of the following dividend options, which of these is taxable? - ✔✔Accumulation at interest An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n) - ✔✔Rider Which of the following statements is CORRECT regarding an individual applying for life or health insurance? - ✔✔The applicant's medical history may be analyzed and reported Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of - ✔✔100% of costs Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125? - ✔✔$50.00 When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? - ✔✔The family's financial objectives if the income earner were to die or become disabled A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - ✔✔A self-funded plan If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? - ✔✔A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age Which of the following is permitted in an advertisement for an insurance policy? - ✔✔The insurer's name Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? - ✔✔Payor benefit A type of insurer that is owned by its policyowners is called - ✔✔mutual An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? - ✔✔Refund annuity A form of medical health insurance covering the treatment and care of gum disease is called - ✔✔Dental expense insurance Under a life insurance policy, what does the insuring clause state? - ✔✔The insurer's obligation to pay a death benefit upon an approved death claim Coming from an insurance point of view, which of the following is the main risk associated with disability? - ✔✔Loss of income Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay? - ✔✔$900 In Ohio, a life insurance policy can be backdated before the application date for up to - ✔✔3 months What is the term used when exchanging a new policy for one already in force? - ✔✔Replacement What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - ✔✔No tax payment needed Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? - ✔✔Medicare is the secondary payer What is known as the immediate specific event causing loss and giving rise to risk? - ✔✔Peril The open enrollment period for Medicare Supplements begins at age - ✔✔65 All of the following are considered appropriate uses of life insurance for business purposes EXCEPT - ✔✔Protecting the business by covering key employees with life insurance Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? - ✔✔Endowment policy A licensed agent who lives in another state and transacts insurance in Ohio is called - ✔✔a nonresident agent The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is tax deductible. Which of the following may be considered a medical expense under this rule? - ✔✔Long Term Care Insurance premiums What is the primary factor that determines the benefits paid under a disability income policy? - ✔✔Wages A licensee who is required to take continuing education must include how many ethics coursework hours? - ✔✔3 Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? - ✔✔Decreasing term insurance Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? - ✔✔Human life value approach The premium for a Modified whole life policy is - ✔✔lower than the typical whole life policy during the first few years and then higher than typical for the remainder In Ohio, when an advertisement for accident and health insurance refers to dollar amount benefits, the advertisement must also disclose - ✔✔Any applicable benefit reduction Medical Expense Insurance would cover - ✔✔an injury occurring at the insured's residence What is issued to each employee of an employer health plan? - ✔✔Certificate Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt - ✔✔dies instantly from a car accident Which of the following statements is TRUE about an insurer's right to screen applicants for HIV? - ✔✔An insurer can require a blood test for HIV If the annuitant dies before the annuity start date, - ✔✔the premiums paid plus interest earned will be given to the beneficiary A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - ✔✔fare-paying passenger An insurer has a right to screen applicants for HIV in which of the following ways? - ✔✔Blood test for HIV The difference between a Long Term Care Partnership Plan and a Non-Partnership Plan is which of the following? - ✔✔Asset Protection All of these are valid policy dividend options for a life insurance policyowner EXCEPT - ✔✔accumulate without interest Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? - ✔✔Universal Life policy Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause? - ✔✔spendthrift trust clause All of the following are defined as supplemental health insuring corporation (HIC) services EXCEPT - ✔✔outpatient medical services When an insurance appointment with an agent is terminated, the party that must notify the agent of the termination is the - ✔✔insurer Hospital care under a typical health insuring corporation (HIC) plan includes all of the following EXCEPT - ✔✔Private duty nursing An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? - ✔✔$5,000 Which of these is NOT considered to be a purpose of an annuity? - ✔✔Annuities are intended to create an estate Continued coverage under COBRA would be provided to a(n) - ✔✔terminated employee Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an example of which of the following? - ✔✔Misrepresentation How do insurers predict the increase of individual risks? - [Show More]

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