Download CT Life & Health Insurance Exam Questions and Answers 2025-2026 and more Exams Management of Health Service in PDF only on Docsity!
CT LIFE & HEALTH INSURANCE EXAM 2025 - 2026
(XCEL SOLUTIONS & PROMETRIC) |
QUESTIONS AND ANSWERS|A+GRADE
Laura added a children's rider to her life insurance policy. What type of coverage was added? ANS:->>> - Level term With life insurance, the needs approach is used primarily in determining ANS:->>> - How much life insurance a client should apply for A(n) is a licensee who charges a fee for contracted insurance advisory services. ANS:->>> - Consultant Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan? ANS:->>> - Taxes must be paid on 75% of the benefits received The Commissioner is empowered to perform each of the following acts EXCEPT ANS:->>> - Makes rules that are consistent with those of neighboring states (Monitor insurer solvency, make rules and regulations that are consistent with the laws of CT, monitor insurer premium rates)
How are the premiums for an individually-owned disability income policy treated for tax purposes? ANS:->>> - Not tax-deductible at all Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends ANS:->>> - Equal the net single premium for the same face amount at the insured's attained age Which of these is NOT a standard provision in qualified long-term care policies sold in Connecticut? ANS:->>> - Prior hospitalization (30-day free look period, guaranteed renewability, provide minimum coverage for 12 consecutive months) Accident and health insurance claim handling is made more convenient to the insured by utilizing ANS:->>> - Assignment of benefits Specialty care is provided by which of the following health maintenance organization (HMO) providers? ANS:->>> - Neurologist Which of the following facilitates nonresident licensing in the state of Connecticut? ANS:->>> - Reciprocity agreement
(Hospital charges, physician fees, nursing services) An employee welfare plan exempt from ERISA regulations would be **ANS:-
** - Church plans Medicare Part B excess charges are covered by ANS:->>> - Medicare Supplemental insurance A major medical expense policy typically does NOT ANS:->>> - Pay surgeon fees on afirst-dollar basis (Contain a deductible, have a high limit of coverage, contain a coinsurance provision) Mary has a Health Savings Account (HSA). Distributions that she has made for anything other than qualified medical expenses are considered taxable and subject to a penalty of ANS:->>> - 20% Under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting? ANS:->>> - The person insured (The period of coverage, the payment period, the plan of coverage) When a producer acts within the scope of his/her contractual authority,
which of the following is legally responsible for these actions? ANS:->>> - The insurer An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before ANS:->>> - Bringing legal action against the insurer During the sale of a life insurance policy, a producer may provide an incomplete illustration ANS:->>> - Never Taking a sum of money and decreasing it in size is called ANS:->>> - Capital liquidation In Connecticut, continuing education courses must be approved by the **ANS:-
-** Commissioner In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange? ANS:->>> - Contact the employer if an employee stops coverage under a plan offered in the exchange (Offer individual, unique formats for consumers to evaluate different health plan options, certify that a health plan is qualified to be offered on the exchange, resolve and verify an applicant's inconsistent or incomplete
Which of the following is NOT covered by a comprehensive long-term care policy? ANS:->>> - Acute care (Custodial care, PT, skilled nursing care) Which of the following statements accurately describes the "time limit on certain defenses"? ANS:->>> - After a stated period of time, claims cannot be denied due tomaterial misrepresentation on the application Rick owns a variable universal life policy and chooses a variable death death benefit option. What will typically happen to the death benefit as a result of this selection? ANS:->>> - Fluctuate with changes in the cash account Why does Connecticut require insurers to maintain a minimum level of assets? ANS:->>> - To demonstrate insurer solvency Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons? ANS:->>> - Net payment cost index How are qualified Roth IRA distributions normally treated for tax purposes? ANS:->>> - Received income tax free
For purposes of disability income insurance, earned income would include all of the following EXCEPT ANS:->>> - Dividends (Salary, commissions, bonus) Life settlement proceeds may be subject to the claims of ANS:->>> - Creditors An annuity contract may be returned for a full refund during the ANS:->>> - Free look period Which of the following describes the act of insuring a risk against possible loss? ANS:->>> - Risk transfer Which of these is a type of private insurance that covers the cost-sharing amounts under Medicare? ANS:->>> - Medicare Supplement Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this? ANS:->>> - Noncancelable In an individual retirement account (IRA), rollover contributions are ANS:-
- Unlimited by dollar amount
An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true? ANS:->>> - Applicant has a right to receive a copy of the report Which of these is NOT an advantage of term life insurance? ANS:->>> - A cash benefit will be provided if the insured is alive at the end of the policy period (The greatest amount of coverage can be provided for the initial premium paid, it can be provided as a rider to another policy, temporary insurance needs can be met) When does a family health policy's coverage for a newborn child begin? ANS:-
- At the moment of birth A life insurance producer's underwriting duties may include ANS:->>> - Seeking additional information requested by the insurance company Tim is in need of surgery, Before being hospitalized, he is referred to an outpatient clinic for diagnostic tests. What is this an example of? ANS:->>> - Pre-admission testing Which of the following is an example of defamation? ANS:->>> - A producer
who publicly and erroneously announces that an insurance company is insolvent Who typically makes the purchase payments in an individual annuity? ANS:-
- Owner Which individual would be best suited for Medicare Supplement insurance? ANS:->>> - Medicare enrollee The interest credited to the cash values of personally-owned non-qualified annuities is considered ANS:->>> - Tax-exempt Which of the following does NOT involve a life settlement transaction?
- Applicant has a right to receive a copy of the report Which of these is NOT an advantage of term life insurance? ANS:->>> - A cash benefit will be provided if the insured is alive at the end of the policy period (The greatest amount of coverage can be provided for the initial premium paid, it can be provided as a rider to another policy, temporary insurance needs can be met) When does a family health policy's coverage for a newborn child begin? ANS:- >>> - At the moment of birth A life insurance producer's underwriting duties may include ANS:->>> - Seeking additional information requested by the insurance company Tim is in need of surgery, Before being hospitalized, he is referred to an outpatient clinic for diagnostic tests. What is this an example of? ANS:->>> - Pre-admission testing Which of the following is an example of defamation? ANS:->>> - A producer who publicly and erroneously announces that an insurance company is insolvent Who typically makes the purchase payments in an individual annuity? ANS:- >>> - Owner Which individual would be best suited for Medicare Supplement insurance? ANS:->>> - Medicare enrollee The interest credited to the cash values of personally-owned non-qualified annuities is considered ANS:->>> - Tax-exempt Which of the following does NOT involve a life settlement transaction? ANS:->>> - Converting term life coverage to whole life insurance (Inducing life settlement contracts, monitoring life settlement contracts, securing life settlement contracts) How is the insured protected if a payor benefit rider is attached to the life insurance policy? ANS:->>> - Premium payments are waived in the event the premium payor dies or becomes disabled Darrell has a group long-term disability income policy paid by his employer.
The has the ability to examine the records of authorized insurers because of the powers granted through state statutes. ANS:->>> - Commissioners The main role of accident and health and disability insurance is to ANS:->>>
- Protect against medical care costs and the loss of earning power All of these are used to prevent adverse selection in a group dental plan EXCEPT ANS:->>> - Decreased employee participation (Provide evidence of insurability, probationary periods, waiting periods) A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from? ANS:->>> - Fair Credit Reporting Act In long-term care insurance, what is the length of time for which claims will be paid? ANS:->>> - Benefit period The insured's consideration given for a health insurance policy is ANS:->>> - The first premium payment and the application
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective? ANS:-
- When the conditions of the receipt are met Which of the following statements BEST describes a double indemnity provision in travel accident insurance? ANS:->>> - Benefits are doubled under certain circumstances stated in the policy Individuals covered with employer-paid group health plans will normally receive tax- free benefits under all of these plans EXCEPT ANS:->>> - Disability income (HMO, vision, major medical) The free look period provided in a life insurance policy is usually ANS:->>> - 10 days Which reinsurance contract between two insurers involves an automatic sharing ofthe risk assumed? ANS:->>> - Treaty reinsurance Which of the following would be considered a violation of Connecticut insurance law? ANS:->>> - Failure to remit premium in a timely manner Which of the following statements is NOT true concerning the relationship
(Reduced paid-up insurance, extended term option, cash surrender option) After the extended term life nonforfeiture option is chosen, the available insurance will be ANS:->>> - Level term for a stated period of time What type of doctor-ordered care assists an individual with performing basic daily activities such as bathing. dressing, and eating? ANS:->>> - Custodial care A prepaid dental plan has an agreement in place with a network of dentists which ANS:->>> - Accepts an established amount as payment in full for the dental services rendered A group health plan covers employees in CT, MA, and RI. The state regulatory jurisdiction established for this plan does NOT affect which plan aspect? ANS:->>> - COBRA continuation of coverage (Required contract provisions, qualifications for eligibility, minimum enrollment percentages) The initial premium for a life insurance policy is typically paid in what way? ANS:->>> - It is typically obtained by the producer and forwarded to the insurer
Which of the following would NOT be appropriate for an immediate annuity? ANS:->>>
- A parent saving for a child's college (A lottery winner who opted for a lump-sum payment, a beneficiary collecting the face amount of a life insurance policy, someone who just won a large settlement) Why might it be beneficial for an employee to purchase private disability income insurance for workplace injuries when he/she is already covered by worker's compensation? ANS:->>> - The benefit arising from a worker's compensation claimcould be inadequate to replace the loss of income The reason for backdating a policy is ANS:->>> - To obtain a premium rate based on an earlier age The standard provisions of an accident and health insurance policy require that the ANS:->>> - Policy, endorsements, and attached papers constitute the "entire contract" What is the Pap test designed to detect? ANS:->>> - Cervical cancer What effect can a long-term care benefit rider have on a life insurance policy? ANS:->>> - Reduced death benefit
(Falling down on the job, illness caused by job conditions, strokes that occur on the job) Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective? ANS:->>> - Date of issuance of the conditional receipt What type of premiums are associated with individual mortgage protection life insurance policies? ANS:->>> - Level premiums Long-term care policies sold in CT may NOT exclude coverage for ANS:-
- Senile dementia A policyowner fell behind on the premium payments of a whole life policy and is now in the grace period. How much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan? ANS:->>> - Face amount minus the loan balance and past-due premium A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the ANS:->>> - Highest amount payable
Which of these statements reflects an accurate portrayal of Medicare SELECT? ANS:->>> - Insured uses preferred providers in exchange for paying lower premiums A(n) insurer operates in the United States but is headquartered outside the United States. ANS:->>> - Alien Which of these is NOT relevant when determining the amount of personal life insurance needed? ANS:->>> - Local unemployment rates (Existing life insurance coverage, household income, household debt) Prepaid dental plans differ from most other types of dental plans in what way? ANS:->>> - Closed panel of dentists can only be used A characteristic of preferred provider organizations (PPO) is ANS:->>> - If service is obtained outside the PPO, benefits are reduced and costs increase Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility? ANS:->>> - 100 days Skilled nursing facility expenses are sometimes covered by , but ONLY if the insured was hospitalized prior to entering the facility. Answer - Medicare
