All of the following are reasons for group insurance termination for dependents EXCEPT
a) The end of the last period for which the employee has made the required premium for dependent coverage passes.
b) The overall maximum benefit for major medical benefits is received
c) The dependent re...
Oregon Life/Health Insurance Practice
Exam 2024
All of the following are reasons for group insurance termination for dependents
EXCEPT
a) The end of the last period for which the employee has made the required
premium for dependent coverage passes.
b) The overall maximum benefit for major medical benefits is received
c) The dependent reaches age 21
d) The dependent fails to meet the definition of a dependent - answer-✔The
dependent reaches 21
Which of the following statements is INCORRECT concerning Modified
Endowment Contracts (MECs)?
a) An MEC must always pass the 7-pay test
b) A life insurance policy failing the 7-pay test is classified as an MEC
c) A primary purpose of the regulations governing MECs was to reduce incentives
for the use of life insurance as a short-term investment vehicle.
,d) A distribution from an MEC may be subject to a 10% penalty if withdrawn prior
to 59 1/2 - answer-✔An MEC must always pass the 7-pay test
An individual purchases a life insurance policy and lists his parents as the
beneficiaries. He is able to change beneficiaries at any time. What type of
beneficiary designation does the policy have?
a) Irrevocable
b) contingent
c) primary
d) revocable - answer-✔Revocable
In which of the following scenarios would a producer be allowed to obtain
insurance through an unauthorized insurer?
a) if there are no authorized insurers for a specific type of coverage in this state
b) if the insurer needs to investigate insurance claims
c) under no circumstances
d) if the producer had no knowledge that the company is unauthorized - answer-
✔if there are no authorized insurers for a specific type of coverage in this state
If an insured purchases an insurance policy with a large deductible, what risk
management techniques is the insured exercising?
a) Avoidance
b) Sharing
c) Retention
d) Transfer only - answer-✔Retention
, Which of the following is NOT a common exclusion found in most health policies?
a) Self- inflicted injuries
b) Dental procedure due to birth defect
c) Workers compensation claims
d) War or act of war - answer-✔Dental procedure due to birth defect
Which of the following is NOT a typical type of Long-Term Care coverage?
a) Residential care
b) Home health care
c) Child day care
d) Skilled nursing care - answer-✔Child day care
Which of the following is true regarding examination of company's records?
a) Examination of records must be requested be each insurance company
b) Examination of records are held every 3 years
c) The director has the authority to examine every authorized insurer in this state.
d) Only resident insurers are subject to the examination of records - answer-✔The
director has authority to examine every authorized insurer in this state
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