CRPC Practice Exam 2 Questions with Correct Answers
8 views 0 purchase
Course
CRPC
Institution
CRPC
CRPC Practice Exam 2 Questions with Correct Answers
What type of insurance is referred to as "pure" life insurance? - Answer-Term life is insurance in it's purest form. It provides nothing more than a cash payment if death occurs while the policy is in force.
Reverse mortgages can be used for...
CRPC Practice Exam 2 Questions with
Correct Answers
What type of insurance is referred to as "pure" life insurance? - Answer-Term life is
insurance in it's purest form. It provides nothing more than a cash payment if death
occurs while the policy is in force.
Reverse mortgages can be used for what purpose? - Answer-To generate a lump sum
that can be used to fund long term care.
Under the Affordable Care Act, how do plans offered on the exchanges vary? - Answer-
They all cover the same services, however, it is how the insured and the insurer share
the costs of the care that varies.
When is the only time a living will is applicable? - Answer-When the declarant is in a
terminal or similar condition. If they are NOT in such a condition, the medical provider is
not required to comply with a patient's living will.
Name a few things that Medicare Part A covers. Hint: Remember; Part AH! HAhspital! -
Answer-Post-hospital home health care - 100 home health care visits per benefit period
and expenses such as in patient hospital care, post hospital skilled nursing care, post
hospital home health care, psychiatric hospital care and blood in excess of three pints.
Name a few things that Medicare Supplemental Insurance (Part B) provides coverage
for. - Answer-Provides coverage for physicians services and the following that are not
already covered by Part A: Home health care, medical services, therapist, ambulances
and certain costs for blood that are no covered in Part A
What are some medical expenses not covered by Part B? - Answer-Most routing
physicals, most immunizations, eyeglasses, hearing aids and exams, dental, and most
prescription drugs.
What is covered by Medicare Part A and Part B? - Answer-Home Health Care.
What is the government health insurance program designed for individuals with low
income or minimal assets regardless of their age or employment status? - Answer-
Medicaid.
The costs not covered by either Part A or Part B are referred to as what? - Answer-
Medigaps. Medigap insurance is designed to supplement Medicare's benefits by filling
in some of what medicare does not cover including deductibles and co-insurance
amounts
, The delivery of Long Term Care generally takes one of two forms. What are they? -
Answer-Personal care and Skilled care.
In order to be considered a "qualified" policy, a long-term care policy must provide for
what? - Answer-Nonforfeiture options, cognitive impairment must be covered, it must be
guaranteed renewable and conform to the National Association of Insurance
Commissioners Model Act.
What is a golden parachute plan? - Answer-An arrangement between an employer and
an executive that will provide the executive with severance benefits if the employer is
sold and the new employee fires the executive.
If you take a hardship distribution from your TSA, what would be the tax consequences?
- Answer-Hardship withdrawals that are used to pay certain medical expenses would be
subject to income tax but not to the 10% tax penalty.
Richard wants to have an annual retirement income of $100,000 (payable at the
beginning of each year) protected against 3% inflation.
Assuming a 7% after-tax rate of return and a retirement period of 30 years, how much
money does Richard need in order to meet his goal?
Explain how you need to input this on the calculator and why. - Answer-Step One - Set
the calculator to BEGIN.
Step Two - Calculate the inflation adjusted rate of return (One plus the Rate of Return
divided by One plus the interest rate, minus one, multiplied by 100 = the inflation
adjusted rate of return) Put this number in the I/YR
Step Three - 100,000 goes in as a PMT
Step Four - 30 goes in as N
Step Five -Press PV
Richard needs $1,822,042.88 in today's dollars to meet his needs.
How do you calculate the inflation-adjusted rate of return? - Answer-1 plus the Rate of
Return
Divided by
1 plus the interest rate
minus one
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
