MLAHP - Minnesota Life Accident and Health Producer Exam

Question 21: An insured returns to his trade after an injury but can handle only some of the essential duties of his job. His contract pays him half of the total disability benefit for a limited span of three to six months. Which benefit is this?

Partial disability benefit

Residual disability benefit

Presumptive disability benefit

Recurrent disability benefit

Question 22: While an insured is still in the hospital, the insurer's nurse reviewer monitors the stay to confirm treatment is on schedule and that discharge will happen as planned. Which of the following stages of utilization review is taking place?

Prospective review

Concurrent review

Retrospective review

Predetermination review

Question 23: A health plan pays hospital bills for an insured hurt by a careless driver. The plan then pursues the driver's liability insurer to recover what it paid on the insured's behalf. Which of the following describes the plan's right to do so?

Coordination of benefits

Utilization review

Subrogation

Predetermination of benefits

Question 24: The owner of an individual health policy wants to replace the named beneficiary. The current designation was made irrevocable at issue. Her producer explains what must happen before the change can be recorded. Which statement describes the requirement she faces?

The insurer alone may approve it

No change is ever possible now

A court order must be obtained

The current beneficiary must consent

Question 25: After a back injury an insured returns to work part time and his earnings drop by forty percent of what he made before. His policy pays him forty percent of the total disability benefit each month. Which type of benefit is being paid?

Residual disability benefit

Total disability benefit

Presumptive disability benefit

Recurrent disability benefit

Question 26: An employer pays the entire premium for a group disability income plan and deducts the cost as a business expense. One covered worker becomes disabled and begins drawing monthly checks. How are those checks treated for income tax purposes?

Entirely free of income tax

Half taxable and half exempt

Fully taxable as income to the employee

Taxable only after five years

Question 27: A married man is enrolled in his employer's group medical plan and is also covered as a dependent under his wife's employer plan. He submits a claim for his own outpatient surgery and both insurers acknowledge coverage. Which of the following plans pays first?

His own employer plan pays first

His wife's plan pays first

Both plans split the charges evenly

The older plan pays first

Question 28: Two working parents each cover their daughter as a dependent under separate group health plans. The father was born in March and is forty-two; the mother was born in January and is thirty-eight. Which of the following plans is primary for the child?

The father's plan, because he is older

Whichever plan has richer benefits

The mother's plan, under the birthday rule

The plan chosen by the parents

Question 29: An insured suffers a severe brain injury requiring months of treatment from several providers. The insurer assigns a nurse to design and coordinate a cost-effective plan of care with the family. Which of the following cost control measures does this describe?

Case management

Second surgical opinion

Preventive care

Capitation

Question 30: A woman applies for and pays for a life insurance policy on the life of her business partner, naming herself as owner and beneficiary while her partner is the insured. Which of the following describes the ownership arrangement created by this policy?

A two-party contract

Third-party ownership

An assignment of ownership rights

A group life certificate

Question 31: An employer with fewer than one hundred employees and no other retirement program lets workers defer part of their pay, and the law requires the employer to match those deferrals dollar for dollar within a stated range. Which plan is described?

A savings incentive match plan

A simplified employee pension plan

A profit-sharing plan

A Keogh plan

Question 32: A universal life contract has already been classified as a modified endowment contract. The owner, who is fifty-five, takes a policy loan from the insurer against the cash value. Which of the following describes how federal tax law treats that loan?

Loans from any life policy are tax-free

Gain comes out first and is taxable

Only amounts above cost basis are taxed

The loan is taxed as capital gain

Question 33: An insured dies and the insurer pays the entire face amount in one payment to the son named as beneficiary on the policy. Which of the following describes how that lump-sum payment is treated for federal income tax purposes?

Taxed as ordinary income to him

Taxed only above the cost basis

Taxed as a long-term capital gain

Received free of federal income tax

Question 34: A company sets up a retirement arrangement in which it decides each year whether to put money in and how much, basing the decision on whether the business earned a profit. No deposit is promised in a lean year. Which plan is this?

A pension plan

A savings incentive match plan

A profit-sharing plan

A tax-sheltered annuity

Question 35: A teacher employed by a public school district wants to defer part of her salary into a retirement plan offered by her employer, and the plan is described in the enrollment booklet as a tax-sheltered annuity. Which employers may offer this type of plan?

Any corporation with employees

Nonprofit groups such as schools and hospitals

Only self-employed sole proprietors

Any employer with union workers

Question 36: Four partners want their buy-sell agreement funded so that the surviving partners personally acquire a deceased partner's share. Their accountant warns about the number of contracts this structure requires compared with the alternative. Which statement describes that drawback correctly?

Cross-purchase needs fewer policies than entity

Both structures always require identical policy counts

Only one policy is needed altogether

Cross-purchase needs many more policies than entity

Question 37: An owner wants to move the accumulated value of a deferred annuity into a new life insurance policy without paying tax on the gain, and asks the producer whether the swap qualifies. Which of the following statements about section 1035 exchanges is accurate?

Any insurance contract may be exchanged tax-free

Annuity into life insurance does not qualify

Life insurance cannot become an annuity

The owner and annuitant may change

Question 38: An employee leaves her job and loses the group life coverage she held under the employer's master policy. She wants to keep protection in force individually without answering medical questions. Which description states what the group conversion privilege gives her?

A term policy at her original age

Continued group coverage for one full year

A permanent policy without evidence of insurability

An automatic refund of her past premiums

Question 39: A retired man has left his traditional individual retirement account untouched for years because he does not need the money yet. His tax adviser warns that federal law will soon force him to start taking withdrawals. At what age must those withdrawals begin?

Age fifty-nine and one-half

Age seventy-three

Age sixty-five

Age eighty

Question 40: Under the needs approach a producer separates the survivors' requirements into a lump sum group and an ongoing group. Funeral bills, the mortgage balance, a college fund and an emergency reserve fall into the first group. Which label covers those four items?

Income needs

Blackout needs

Cash needs

Estate creation needs

MLAHP Minnesota Life Accident and Health Producer Exam - Set 5 - Part 2