Competency 14 Section 3

Question 1

1. Medigap policies are regulated by the federal government

Answer 1

True. (LO 14-3-1)

Question 2

2. Medigap policies are always guaranteed issue, which means you can never be underwritten for a policy

Answer 2

False. Medicare rules require certain guarantee issue periods, but it is not always guarantee issue. (LO 14-3-1)

Question 3

3. Medigap policies can be a good selling platform and lead to other business for planners.

Answer 3

True. (LO 14-3-1)

Question 4

4. Medigap open enrollment is the same as Parts A and B.

Answer 4

False. Medigap open enrollment begins on the first day of the month in which the applicant is age 65 or older and enrolled in Medicare Part B and lasts for 6 months. (LO 14-3-1)

Question 5

5. There are 10 standard Medigap policies that have uniform requirements; however providers may assign unique names to the policies.

Answer 5

True. (LO 14-3-2)

Question 6

6. The Medicare Part A copayment for days 61-90 of a hospital stay is a core benefit in all Medigap policies

Answer 6

True. (LO 14-3-2)

Question 7

7. The Medicare Part A lifetime reserve copayment for days 91-150 is a core benefit in all Medigap policies

Answer 7

True. (LO 14-3-2)

Question 8

8. The Medicare Part B coinsurance requirement is a core benefit in all Medigap policies.

Answer 8

True. (LO 14-3-2)

Question 9

9. Skilled nursing facility care copayments for days 21-100 are a core benefit of all Medigap policies.

Answer 9

False. This is an additional benefit that can be found in some Medigap policies but is not a core benefit. (LO 14-3-2)

Question 10

10.Medicare Part B excess charges are a core benefit of all Medigap policies

Answer 10

False. This is an additional benefit that can be found in some Medigap policies but is not a core benefit. (LO 14-3-2)

Question 11

11.Pricing of Medigap policies can vary greatly depending on the rating practice that the company is applying to the plan.

Answer 11

True. (LO 14-3-3)

Question 12

12.Community rating is charging the same price for all policyholders regardless of their age.

Answer 12

True. (LO 14-3-3)

Question 13

13.Issue age rating bases the premium on the age of the policyholder when the policy is purchased.

Answer 13

True. (LO 14-3-3)

Question 14

75. All of the following are core benefits covered in all Medigap policies EXCEPT (LO 14-3-2)
    A. Medicare Part A copayments for days 61-90 of hospital stay
    B. Medicare Part A lifetime reserve copayment days 91-150
    C. Medicare Part B coinsurance
    D. Medicare Part A hospital deductible

Answer 14

75. The answer is D. The Part A deductible is not one of the covered core benefits.

Question 15

76. All of the following are rating methodologies for Medigap policies EXCEPT (LO 14-3-3)
A. Community rating
B. Issue age rating
C. Gender rating
D. Attained age rating

Answer 15

76. The answer is C. Gender rating is not one of the pricing methodologies for Medigap policies.