The difference between a Long-Term Care Partnership Plan and a Non-Partnership Plan is which 

of the following?

Asset Protection

All of the following are considered appropriate uses of life insurance for business purposes 

EXCEPT

Protecting the business by covering entry level employees with life insurance

Susan is insured through her Group Health Insurance plan and changed her coverage to an 

individual plan with the same insurer after her employment was terminated. This change is called 

a(n)

conversion

Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-ofnetwork provider. Which of the following is the likely result?

Care is covered

Which of these statements concerning Traditional IRAs is CORRECT?

Earnings are taxable when withdrawn

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's 

benefits must

be the same and the premium cannot exceed 102%

A life insurance policy normally contains a provision that restricts coverage in the event of death 

under all of the following situations EXCEPT

fare-paying passenger

According to the Health Insurance Portability and Accountability Act (HIPAA), when can a 

group health policy renewal be denied?

Participation or contribution rules have been violated

Who regulates the quality of care provided by a health maintenance organization (HMO)?

Secretary of the Department of Health and Mental Hygiene

Under a disability income policy, which provision would be payable if the cause of an injury is 

unexpected and accidental?

Accidental bodily injury provision

Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after 

the policy's inception date, how much will her beneficiary receive?

Nothing

Tom has a rider on his disability income policy that guarantees the right to increase his benefits 

without a medical exam. What kind of rider is this?

Guaranteed insurability rider

The deeds and actions of a producer indicate what kind of authority?

Apparent

Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her 

health policy most likely contains a(n)

deductible

An individual most likely will have an insurable interest in insuring a person's life if

an economic interest exists for the continuance of the insured's life

According to life insurance contract law, insurable interest exists

at the time of application

In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of 

the premium and each employee pays 40% of the premium. Any income benefits paid are taxed 

to the employee at

60% of the benefit

Which of the following is considered to be an alternative to a life settlement?

Accelerated death benefit rider