Exam (elaborations)
VA LIFE AND HEALTH INSURANCE STATE EXA1
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VA LIFE AND HEALTH INSURANCE STATE EXA1
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VA LIFE AND HEALTH INSURANCE STATE EXAMWhen a disabled dependent child reaches the age limit for coverage, how long does
the policyowner have to provide prrof of dependency in order for the dependent to
remain covered under the policy?
A) 10 days
B) 15 days
C) 31 days
D) 60 days - ANSWER C) 31 days
All other factors being equal, which of the following premium modes would result in
the lowest overall premium?
A) Annual
B) Quarterly
C) Semi-Annual
D) Monthly - ANSWER A) Annual
Paying the premium one time a year would be the least expensive because of fewer
billing and loading charges
Which of the following premium modes would result in the highest annual cost for a
Life Insurance Policy?
A) Monthly
B) Quarterly
C) Semi-annual
D) Annual - ANSWER A) Monthly
If the policyowner chooses to pay the premium more frequently than annually, there
will be an additional charge (loading) because the company will not have the
premium to invest for a full year, and the company will have the additional expenses
in billing the premium.
A family medical expense policy must generally do all of the following EXCEPT
A) Cover any newborn children as long as proper identification has been given.
B) Continue to cover any children after age 19 who are still dependent upon their
parents because of a mental or physical handicap.
C) Continue to cover any children who are remain living at home after they reach the
maximum age stipulated by the policy.
D) Cover any adopted children on the same basis as a newborn. - ANSWER C)
Continue to cover any children who are remain living at home after they reach the
maximum age stipulated by the policy.
Once children turn 19 ( 23 for full-time students), those children cannot remain on
the family plan, but they do have the right to conver to their own individual plan.
A husband and wife are insured under group health insurance plans at their places
of employment. Because their employers pay for their plans, each is covered as a
, dependent under their spouse's coverage. If the husband is hospitalized, how are
medical expenses likely paid?
A) The husband can collect from each plan
B) The husband will have to select a plan from which he wants to collect benefits
C) The benefits will be coordinated.
D) Neither plan would pay. - ANSWER C) The benefits will be coordinated.
Benefits will be coordinated when individuals are covered under two or more health
plans.
If an insured changes his payment plan from monthly to annually, what happens to
the total premium?
A) Increases
B) Decreases
C) Stays the same
D) Doubles. - ANSWER B) Decreases
Because the insurer would have the entire premium to invest for a full year, they
would reduce the premium amount.
Premium payments for personally-owned disability income policies are
A) Tax deductible
B) Tax deductilbe to the extent that they exceed 7.5% of the adjusted gross income
of those itemizing deductions.
C) Not for tax deductible
D) Eligible for tax credits - ANSWER C) Not for tax deductible
A man works for company A and his wife works for Company B. The spouses are
covererd by health plans through their respective companies that also cover the
other spouse. If the husband files a claim,
A) The insurance through his company is primary.
B) The insurance through his wife's company is primary
C) The insurance plans will split the coverage evenly
D) Both plans will pay the full amount of the claim. - ANSWER A) The insurance
through his company is primary.
Medical expense premiums are deductible as medical expenses, provided that when
the premiums are added to all of the other unreimbursed medical expenses, the total
exceeds what percentage of the adjusted gross income?
A) 7.5%
B) 8.5%
C) 9.5%
D) 10.5% - ANSWER A) 7.5%
In an idividual long-term care insurance plan, the insured is able to deduct the
premiums from taxes. What income taxation will be imposed on the benefits
received?
A) Federal income tax
B) State income tax
C) No tax
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