CISR LIFE & HEALTH Exam 52 Questions with Answer,100% CORRECT

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CISR LIFE & HEALTH Exam 52 Questions with Answer The first step in understanding the elements of a life insurance contract is being able to: A) describe the personal and specific reasons people ... purchase life insurance B) describe the different parties to a life insurance contract and their relationship - CORRECT ANSWER B) describe the different parties to a life insurance contract and their relationship A policy owner has the power to: A) Name one or more beneficiaries B) Change the policy C) Select dividend options D) Change ownership of a policy with an absolute assignment of benefits in place - CORRECT ANSWER A) Name one or more beneficiaries and D) Change ownership of a policy with an absolute assignment of benefits in place Truth or False: Risk is assessed on both medical and non-medical considerations - CORRECT ANSWER True Why do clients give written permission to an insurance professional to obtain personal medical information from medical providers? A) Insurance companies require it for their own protection B) The federal government requires it - CORRECT ANSWER B) The federal government requires it Select the term that completes the sentence correctly. A(n) ___________ beneficiary cannot be removed from a life insurance policy without the consent of the beneficiary. A) revocable B) irrevocable - CORRECT ANSWER B) irrevocable Select all that apply. People buy life insurance for various reasons, including: A) as a requirement for receiving a bank loan B) as an incentive for attracting and keeping talented employees C) as a court-imposed requirement D) personal and emotional reasons - CORRECT ANSWER A) as a requirement for receiving a bank loan B) as an incentive for attracting and keeping talented employees C) as a court-imposed requirement D) personal and emotional reasons Select the term that completes the sentence correctly. The agreement between the insurer and the applicant that can provide temporary life insurance coverage until the insurer has issued a policy is called the: A) Attending Physician Statement (APS) B) Conditional Receipt C) Survivorship Clause - CORRECT ANSWER B) Conditional Receipt Questions on an application for life insurance address which issues? Select all that apply. A) past occupations B) current occupations C) past medical history D) current medical history E) hobbies and sport participation F) past address G) present address - CORRECT ANSWER B) current occupations C) past medical history D) current medical history E) hobbies and sport participation F) past address G) present address If an individual is engaged in a hazardous occupation or hobby, or they fail to meet health requirements for rating categories, the individual is likely to be given what type of rate? A) preferred B) standard C) substandard - CORRECT ANSWER C) substandard When considering Whole Life Insurance, the annual cash value growth will equal or exceed the annual premium in the __ or __ year of a contract. A) 5th or 10th B) 10th or 15th C) 10th or 20th D) 15th or 20th - CORRECT ANSWER C) 10th or 20th The contractual right of an owner/insured to receive any cash value from a Whole Life policy if the policy is surrendered or for non-payment of premium is called: A) Non-forfeiture B) Single Premium C) Limited Payment - CORRECT ANSWER A) Non-forfeiture True or False: Universal Life is a permanent life insurance policy that can function like a term policy. - CORRECT ANSWER True Three premium options of a Universal Life policy include minimum premium, ________, and maximum premium. A) extended premium B) target premium C) decreasing premium - CORRECT ANSWER B) target premium The death benefit of a universal life policy may be determined using two options. What is option 1 and what is option 2? - CORRECT ANSWER Option 1: Policy's face amount at death Option 2: Original face amount plus the policy cash value at death Monthly deductions are made from the guaranteed interest account. These deductions pay: A) monthly administrative charges B) monthly life insurance coverage charges C) both the monthly administrative charges AND the monthly life insurance coverage charges - CORRECT ANSWER C) both the monthly administrative charges AND the monthly life insurance coverage charges Provides a return of paid premium if the policy owner outlives the length of a term policy. - CORRECT ANSWER Return of premium rider Provides additional term insurance that can usually be converted to a permanent life policy. - CORRECT ANSWER Term rider Provides for the payment of a multiple of a policy's face amount in the event of an insured's death resulting from accidental bodily injury. - CORRECT ANSWER Accidental death benefit Waives future premiums if the payor dies or becomes disabled prior to a juvenile insured reaching a specific age. - CORRECT ANSWER Payor benefit rider Allows for the payment of a percentage of a death benefit should the insured be diagnosed with an irreversible or terminal medical condition. - CORRECT ANSWER Living benefit Select all that apply. A rider can: A) eliminate the suicide provision B) change the rating class C) provide additional benefits D) apply restrictions - CORRECT ANSWER C) provide additional benefits D) apply restrictions Select the term that completes the sentence correctly. If a misstatement of age on a life insurance contract is discovered before death, __________________. A) the policy is rescinded B) the policy is amended - CORRECT ANSWER B) the policy is amended Select the term that completes the sentence correctly. The ___________ provision stipulates that no agent has authority to waive or amend any provisions in a life insurance contract. A) entire contract B) right to examine C) incontestable clause D) no authority contract - CORRECT ANSWER A) entire contract Select the term that completes the sentence correctly. Insurance law in _________ states requires the reinstatement provision, which stipulates the conditions under which a policy can be restored. A) 38 B) 42 C) 50 - CORRECT ANSWER C) 50 Select the time period that completes the following sentence: The standard timeframe for a grace period is __________. A) 30-31 days B) 45-90 days C) 60-90 days - CORRECT ANSWER A) 30-31 days Select all that apply. The circumstances in which the incontestable clause is not applicable are: A) impersonation B) the intent to murder C) an insured dies before age 65 D) a lack of insurable interest - CORRECT ANSWER A) impersonation B) the intent to murder D) a lack of insurable interest Select the time period that correctly completes the following sentence: A living benefit rider allows an insured to access a policy's death benefit while still living. Most companies allot a _________ time period between diagnosis of an irreversible medical condition or illness and the insured's death. A) one month B) six months C) one year D) one or two years - CORRECT ANSWER C) one year Select the term that completes the sentence correctly. A guaranteed insurability rider gives an insured the right to purchase additional coverage even if the insured has developed a critical or even a terminal illness. Most companies use a schedule of purchase opportunities based on ___________. A) age B) adoption of a child C) birth of a child D) medical certification - CORRECT ANSWER A) age Select all that apply. A short-term medical policy bridges the gaps in coverage during times of transition, such as a change in employment. Coverage is usually limited to: A) hospitalization B) diagnostic tests C) follow-up care D) rehabilitative care E) emergency services - CORRECT ANSWER A) hospitalization B) diagnostic tests C) follow-up care E) emergency services True or False: Short-term policies meet the minimum essential coverage requirements under the Affordable Care Act (ACA). - CORRECT ANSWER False Select all of the statements about critical illness policies that are true: A) They are available for accident coverage B) They pay lump sum cash benefits to policy owners C) They make payments directly to medical providers D) They may require an insured to remain alive a specified number of days after diagnosis - CORRECT ANSWER B) They pay lump sum cash benefits to policy owners C) They make payments directly to medical providers D) They may require an insured to remain alive a specified number of days after diagnosis Select all that apply. Government departments contributing to the oversight of the Affordable Care Act (ACA) include: A) The Department of Labor B) The Department of Education C) The Internal Revenue Service D) The Department of Health and Human Services - CORRECT ANSWER A) The Department of Labor C) The Internal Revenue Service D) The Department of Health and Human Services Select all that apply. The federal HealthCare website identifies Essential Health Benefits, or service categories, that health insurance plans must cover. These benefits include: A) emergency services B) vision care for children under age 19 C) laboratory services D) hospitalization E) prescription drugs F) mental health services G) pregnancy, maternity, and newborn care H) birth control and breastfeeding services - CORRECT ANSWER A) emergency services B) vision care for children under age 19 C) laboratory services D) hospitalization E) prescription drugs F) mental health services G) pregnancy, maternity, and newborn care H) birth control and breastfeeding services Select all that apply. Under the ACA, eligibility for individual subsidies depends on: A) income limits B) a lack of dependent status C) incomes between 200% and 300% for the Federal Poverty Level D) ineligibility for coverage from an employer or the government - CORRECT ANSWER A) income limits B) a lack of dependent status D) ineligibility for coverage from an employer or the government True or False: The Gold tier is a good choice for consumers who know they will pay the highest monthly premiums, but will pay the lowest costs when care is necessary. - CORRECT ANSWER False Select the term that completes the sentence correctly. For a group plan to work effectively, five factors must be in place. One of those factors is _________. A) a static workforce B) maximum participation C) defined participant eligibility D) individual employees' rights to change the health plan - CORRECT ANSWER C) defined participant eligibility The Employee Retirement Income Security Act of 1974 ____________. A) protects patient privacy B) gives workers and their families who lose their health benefits he right to choose to continue group health benefits C) set minimum standards for most voluntarily established pension and health plans offered by private sector employers - CORRECT ANSWER C) set minimum standards for most voluntarily established pension and health plans offered by private sector employers Select all that apply. The Privacy Rule is a set of national standards that: A) address how entities subject to the rule manage individuals' Private Health information B) help individuals control their rights to privacy C) establish a grievance-and-appeal process for rule violations - CORRECT ANSWER A) address how entities subject to the rule manage individuals' Private Health information B) help individuals control their rights to privacy True or False: Certificates of Creditable Coverage are no longer necessary because preexisting condition limitations on health insurance plans were not permitted after the plan year 2014. - CORRECT ANSWER True Under FMLA, an eligible employee is one who has worked for a covered employer at least ________. A) one month B) one year C) two years - CORRECT ANSWER B) one year Select all of the true statements: A) HSAs are arrangements used to pay for unreimbursed health care expenses B) HSAs are controlled and owned by eligible account holders C) HSAs are employer-funded benefit plans that pay or reimburse participating employees for Qualified Medical Expenses as defined by IRS Publication 502 D) HSAs are employer-established benefit plans that provide fund for employees' vision and dental expenses - CORRECT ANSWER A) HSAs are arrangements used to pay for unreimbursed health care expenses B) HSAs are controlled and owned by eligible account holders D) HSAs are employer-established benefit plans that provide fund for employees' vision and dental expenses Select all that apply. Examples of Eligible Expenses under an HSA include: A) X-rays B) crutches C) wheelchairs D) doctor's fees E) dentist's fees F) artificial limbs G) chiropractic treatment - CORRECT ANSWER A) X-rays B) crutches C) wheelchairs D) doctor's fees E) dentist's fees F) artificial limbs G) chiropractic treatment True or False: Fund limits apply to Health Savings Accounts. - CORRECT ANSWER True A Health Reimbursement Arrangement (HRA), or Section 105 plan, allows an employer to set aside fund for their employees and treat benefit payments as ordinary business expenses - CORRECT ANSWER True Select all of the statements that complete the sentence correctly. People aged 65 or older are eligible for full Medicare benefits if they are: A) US citizens or permanent legal residents who have lived in the US for a minimum of 10 years. B) Individuals or the spouses of individuals who have worked long enough to be eligible for Social security or railroad retirement benefits. C) Individuals or the spouses of individuals who are government employees or retirees who did not pay into Social Security but did pay Medicare payroll taxes while working. - CORRECT ANSWER B) Individuals or the spouses of individuals who have worked long enough to be eligible for Social security or railroad retirement benefits. C) Individuals or the spouses of individuals who are government employees or retirees who did not pay into Social Security but did pay Medicare payroll taxes while working. Select the number that completes the sentence. Individuals age 65 or older have a ________ window of opportunity to initially enroll in Medicare Part A and/or Part B. A) 5 months B) 6 months C) 7 months D) 8 months E) 10 months - CORRECT ANSWER C) 7 months True or False: The special enrollment period allows anyone to delay enrolling in Medicare Part A due to coverage from an employer-sponsored health plan. - CORRECT ANSWER False Select all of the answer choices that complete the statement correctly. People under the age of 65 are eligible for full Medicare benefits if they: A) Have been entitled to Social Security disability benefits for at least 36 consecutive or non-consecutive months B) Receive no disability pension from the Railroad Retirement Board but still meet certain conditions. C) have Lou Gehrig's disease or permanent kidney failure requiring regular dialysis or a kidney transplant, and they or their spouses have paid Social Security taxes for a certain length of time - CORRECT ANSWER C) have Lou Gehrig's disease or permanent kidney failure requiring regular dialysis or a kidney transplant, and they or their spouses have paid Social Security taxes for a certain length of time Select all that apply. Medicare Part A has four parts. Each part provides different types of coverage. Medicare Part A includes: A) Hospice Care B) Home Healthcare C) Hospital Insurance D) Blood transfusions E) Mental Health Services F) Limited skilled nursing facility care G) Durable medical equipment - CORRECT ANSWER A) Hospice Care B) Home Healthcare C) Hospital Insurance D) Blood transfusions F) Limited skilled nursing facility care With Medicare Part B, individuals pay nothing for most covered preventive services if those services are provided by doctors or other qualified health-care providers who _____________. A) are in a specified network of health-care providers B) simultaneously provide non-preventive services C) accept Medicare - CORRECT ANSWER C) accept Medicare Select all that are examples of Medicare Advantage Plans. A) HSA B) FSA C) HMO D) PPO E) PFFS - CORRECT ANSWER C) HMO D) PPO Select the answer that describes Medicare Part D A) a privately sponsored insurance policy that helps protect Medicare beneficiaries from rising costs associated with prescription B) a government-sponsored insurance policy that helps protect Medicare beneficiaries from rising costs associated with prescription drugs - CORRECT ANSWER B) a government-sponsored insurance policy that helps protect Medicare beneficiaries from rising costs associated with prescription drugs [Show More]

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