________________ is ONLY the chance of loss.

Human Life Value is the economic valuation of an individual based on the individual’s ____________ both present and future.

Risk Transfer is a way to deal with risk so that the loss is handled by another party.

What is the most common form of risk transfer?

Wearing a helmet when riding a motorcycle may not eliminate the exposure to bodily injury from a motorcycle accident BUT it would minimize any injury that would occur if an accident happened.

What type of risk treatment technique is this?

Geri stores her gasoline next to her matches and dynamite; to most this appears to be a ___________ which could lead to an explosion.

_________________ can provide a consistent flow of income to an insured for his lifetime or an allotted amount of time or until death.

Peggy Sue has accumulated thirty-two credits in the Social Security’s system for determining eligibility for benefits.

Is she eligible for full retirement and survivor benefits?

What percentage of a workers earned income (wages) are taxed for FICA?

All OASDI benefits are calculated from the worker’s:

Social Security defines a disability as one in which the worker is unable to engage in:

The Social Security system provides a basic floor of protection to all working Americans against the financial problems brought on by:

William X of Miami, Florida has accumulated sixteen credits in the last thirteen quarters.

If you have an ACA compliant Health Insurance policy up to what age will your insurance policy and insurance company allow you to keep your graduate student daughter on your policy?

The Affordable Care Act requires employers with 50 or more employees to provide health insurance or pay a fine of $______ per worker for any worker receiving federal subsidies to purchase health insurance.

Kathy wants to purchase an insurance policy that will provide income to her if she becomes disabled and unable to work.

What type of insurance would you recommend for Kathy?

Greg is a single parent with two children; the 2018 Federal Poverty level for a three person household is $20,780.

What is the most Greg could earn to still be ACA “subsidy eligible”?

Lucky Charms has a(n) _________ rating plan which provides either a retroactive discount or future credit on their next renewal based upon the insured’s favorable loss history and expenses.

Employer “Self-Insured Plans” are administered by which of the following?

The right of assignment built into most commercial health policies lets policyowners _______ benefit payments from the insurer directly to the health care provider

Which of the following, if any, are characteristics of Preferred Provider Organizations?

Point-of-Service Plans authorize and _________ subscriber referrals to specialist and hospitals.

Medicare provides programs of health insurance for:

Erik has met the OASDI definition of “disabled for the past eleven months.

Does he qualify for OASDI Disability benefits?

Kara has a “fixed-rate policy” which pays on a scheduled basis. Dolores’ policy pays for actual cost incurred.

What type of payment approach is in Dolores’ policy?

Peggy has a Basic Hospital Expense policy which pays $150 a day up to 30 days. Peggy was in the hospital for 45 days and the cost per day was $125.

How much with the insurance company pay Peggy?

Basic Surgical Expense insurance provides benefits on a:

Which of the following are covered in a Major Medical insurance policy?

What are the lifetime policy limits for ACA compliant Major Medical Expense Insurance Plans?

After a careful review Autumn revealed that she had purchased a Basic Medical Expense plans covering only specific, select, and narrowly defined medical care issues. What she really wanted was a ________________ plan to cover on a more comprehensive basis with coverage on a broader basis.

You have explained to your insured that Disability Income Insurance is very important as part of an overall plan to protect the insured against the financial loss of wages due to an injury, illness, accident or sickness.

What might you say to your proposed insured to encourage her to protect against this exposure to loss of income?

What must happen before an insured can successfully file a Disability Income claim under the DI Social Security rider?

Becky has purchased a DI rider which increases benefits over time to keep up with inflation.

Which of the following occupations are most likely to have a “non-occupational” type Disability Income policy?

Chris Johnson has a Disability Income policy with a sixty day probationary period. Three weeks after the policy went into force Chris breaks his leg playing church softball.

Will Chris be able to make a compensable DI claim?

Which, if any, of the following are considered a presumptive total disability?

Examples of special risk policies might include insuring: (select all that apply)

True or False? Accidental Death and Dismemberment policies pay a lump-sum benefit in the event of an accidental death or injury.

The amount payable for dismemberment of loss of a stipulate body part or function in an AD&D policy is known as the policy’s ___________.

The amount payable for death in an AD&D policy is known as the policy’s _____________.

Which of the following are correct regarding “fraternal benefit societies”? (select all that apply)

Social insurance programs are government programs that are funded with taxpayer dollars and serve national and state purposes. Government programs include all but which of the following?

Dr. Jackie Vizon is an optometrist. Which of the following risk retention groups might Dr. Vizon be insured by?

___________________ Organizations focus on preventive care and treatment.

The two main purposes of industry oversight are to ensure:

Which Federal Act re-established the states as the regulators of insurance?

All of the following are eligible for Medicare coverage EXCEPT?

Jan Bridges was injured in the course and scope of her employment and has incurred medical expenses, lost wages, and non-economic loss due to pain and suffering.

Can Workers Compensation help Jan with any of these expenses/losses? (select all that apply)

Workers Compensation insurance and/or benefits are required by state law and are an __________________ for employees when injured in work related activities.

Medicare is funded by employee and employer FICA contributions. Employees contribute 1.45% of all earned wages for Medicare. What amount if any is contributed by the employer?

Ralph Keith’s LTC policy pays up to $125 per day in a nursing home and up to $75 per day for at-home care.
Keith has been at the Mountain State Elder Care facility for eight weeks and he has racked up a bill of $5,000.

How much will Ralph’s LTC policy pay towards his bill?

Juliana Clifford has a 60 day elimination period and LTC daily benefits of $250 per day. If she has been in long term care for 100 days will she incur any taxation on any benefits received?

Long-Term Care services include services required by the chronically ill and/or cognitively impaired including all but which of the following?

Cassidy Jones has purchased a Medigap policy which her agent delivered to her ten days ago. Mrs. Jones has decided she does not want the policy.

The NAIC provision “Legal Actions” provision requires an insured to wait until 60 days after filing a proof of loss with the insurance company before any formal ______ action can be taken against the insurer.

Kevin has had a change in his occupation; which policy type is most affected by this change in occupation?

Kara got hurt rollerblading January 1st; and filed her Proof of Loss on April 1st. By what date must the insurance company pay Kara’s claim?

Justyn owns a life insurance policy on himself and wants to change the beneficiary on the policy; he can change the policy beneficiary at any time unless the beneficiary is __________.

All of the following are risk factors in Health Insurance underwriting EXCEPT?

Which of the following are insurance company/insurance policy expenses?

True or False? Health care claims increase across all ages; the older an insured the higher the insurance premium.

Yuhong Song’s HMO is using which “medical cost management” approach when asking her to get a “required” second opinion before having a procedure?

Which of the following is an example of “adverse selection”?

True or False? The cost for a group plan health insurance is more expensive than individually underwritten health insurance.

Ericka Little’s employment with the FunCoToy Company has ended. FunCoToy is moving their current distribution center to McLean, Virigina and Ericka cannot make the move due to her husband’s employment.

Ericka’s family has depended on the health insurance provided by FunCoToy.

The Coordination of Benefits (COB) provision in group health plans is in place to remove the______________ hazards of “over-insurance”.

AppleSnacks is a small, minority based business which makes apple fruit pies for sale on consignment. AppleSnaks has ten full time employees.

Does AppleSnacks have the minimum number of employees to be eligible for a group health insurance policy in Florida?

What are the tax implications if key person disability insurance (choose all that apply)?

If OkayTire Shop decides to purchase key person disability insurance to offset any loss of income and increased expenses if, Kenny, the top salesman, were to become disabled. How much key person DI should Okay Tire purchase if:

Kenny’s Salary $110,000
Loss of income to the shop $90,000
Extra expense of new hire, training, loss of accounts $35,000

Which type of insurance would a business purchase for their exposure to a disabled owner but not for a disabled key person?

Cameron gave Kenisha Kent a $25 gift certificate to Kenisha’s favorite restaurant as part of his schomoozing to sell her company, All Kinds of Kupcakes, Inc., a pension plan. Is Cameron guilty of unfair practice?

Mr. Rogers sold Misty a Health Insurance policy and was able to add an Accidental Death & Dismemberment policy for only $15 extra dollars a month. Misty asked if the AD&D was part of the Health policy and Mr. Rogers told her it was already included in the monthly premium she quoted her. Is Mr. Rogers guilty of sliding?

True or False? False advertising is knowingly making, publishing, disseminating, circulating, or placing before the public untrue, deceptive, or misleading information with respect to any business of insurance.

___ years of record retention are required by the department.

Insurance contracts are considered aleatory contracts because (choose all that apply):

Which, if any, of the following statements are correct?

Statement I. Valued Contracts pay a stipulated amount listed specifically in the policy.

Statement II. Indemnity Contracts pay the value of a loss subject to the policy limits.

James has convinced his neighbor, a senior citizen, to allow James to take out life insurance on the life of the neighbor with James named as the beneficiary. James has advised he will pay all of the premiums and James has offered the neighbor $2,500 for participating in the transaction. This is an example of:

_______ Law governs the relationship between an agent and insurer and that being that an act by the agent is an act by the principal.

Which of the following are required for a contract to be legal?

Life insurance ___ a personal contract between insurer and insured.

Sharon is replacing Mrs. North’s insurance policy; all but which of the following are appropriate in the replacement?

When using illustrations, agents are required to obtain a signed statement from the proposed insured acknowledging that non-guaranteed elements are subject to changes either higher or lower and that they are not ___________.

Misrepresentation is any written or oral statements that do not accurately describe policy benefits or coverages AND misrepresentation is ________. Defamation is the false, malicious, or derogatory communication (oral or written) that injures another’s reputation or character AND defamation is ________.

Policy replacement includes which of the following?

____________ selling is presenting products that meet specific needs of clients so the client can make their own decisions about what products are best for them.

Unfair discrimination takes place in the sales or underwriting process when adverse decisions are made based on characteristics such as: