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Cards In This Set
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Name for the period of years during which no Social Security benefit is payable to the surviving spouse of a deceased, fully insured worker until the survivor qualifies for his or her own benefits
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Blackout period
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Tom is a 45-year-old senior accountant employed by ABC, Inc. Under ABC's employer-pay-all group life plan, Tom's coverage is $120,000. The premiums for what amount of that coverage are taxable to Tom?
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$70,000
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To be considered totally disabled under a disability income policy, the insured must be unable to perform all of the substantial and material duties of his or her regular occupation for how many months after a loss begins?
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24 months
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Policyowners can withdraw the interest earnings on their dividends or allow the interest to continue to accumulate. In either case, how is the interest treated for income tax purposes?
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The dividend itself is tax free but the interest earned on the dividend is reported as taxable income in the year credited
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How long must an insurer keep copies of any illustrations used to sell its life insurance policies?
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An insurer must keep copies of any illustrations used in selling a policy for three years after the policy expires. If an illustration was used but a policy was not sold, the insurer does not need to keep a copy of the illustration.
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Mortality charge for universal life policies is
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The monthly mortality charge that the insurer deducts from a universal life policy's cash value reflects the cost of insurance at that point in the insured's life. The mortality cost does not stay the same over the policy term.
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The Commissioner of Insurance can examine the business transactions, accounts, and records of insurers and producers as often as necessary but must do so at least once in how many years?
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The Commissioner can examine the business transactions, accounts, and records of insurers and producers as often as necessary but must do so at least once every five years.
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Anne has a closed panel PPO that, like traditional indemnity plans, charges deductibles and co-insurance amounts. However, these amounts are applied to lower, negotiated rates. Which of the following statements does NOT apply to Anne?
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Anne's PPO gives her the option of using services from non-contracted providers outside the network. When Anne uses PPO-contracted providers, she has lower out-of-pocket costs, not above the usual, customary, and reasonable (UCR) charges for her area.
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Annuity purchase rate
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Describes the amount a fixed annuity could provide per $1,000 of accumulated value under a straight life payout option.
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A husband and wife, ages 49 and 51, earn $175,000 a year. Each also participates in a qualified plan at work and contributes to a traditional IRA each year. Which of the following statements is correct?
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Although the husband and wife are eligible to contribute to their traditional IRAs, they cannot deduct any portion of the amounts contributed. For joint filers who are covered by a qualified plan, no deduction is allowed if their adjusted gross income is more than an annually-adjusted limit.
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Certificate of creditable coverage
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A certificate of creditable coverage is a health insurer’s written confirmation that the insurer insured an individual for the period stated. Another health insurer must accept this certificate in determining an individual’s eligibility for coverage.
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Certificate of insurance
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Definition of 'Certificate Of Insurance '
A document issued by an insurance company/broker that is used to verify the existence of insurance coverage under specific conditions granted to listed individuals. More specifically, the document lists the effective date of the policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability.
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John's health insurance plan, which pays 80 percent of the covered loss, is a reimbursement contract. The fact that it is a reimbursement contract relates to which of the following characteristics of health insurance?
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Claims
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Tom is covered under a prepaid dental plan offered through his employer. All the following are characteristics of this type of plan
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1. The dental service provider provides the contracted services regardless of cost or frequency of use by an employee.
2. These plans typically require employees to pay a co-payment following treatment.
3. A fixed amount is paid to the service provider monthly to cover dental care for the covered employees $3,000 to $4,000
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Health savings accounts (HSAs)
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Health savings accounts are tax-exempt accounts set up and operated with high-deductible, high-cost insurance policies.
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