Chapter 6 Exam - Markets and Social Security
Under an Industrial or Home Service Contract, what is normally the face amount of the policy?
$1,000 or less
Social Security pay an eligible surviving spouse (or Minor Child) a one-time benefit upon the death of a covered worker. Which of the following is the amount of that benefit?
$255
Generally, children receive Social Security Survivor Benefits until age ____________.
18
If enrolled in an accredited elementary or secondary school, a covered child can continue receiving Survivor Benefits up to what age?
19
The widow or widower's Social Security blackout period lasts until a surviving, non-married spouse reaches age _____________.
60
Social Security Retirement Benefits are available as early as age ___________ but are less if paid at the full retirement age.
62
A Social Security retirement benefit recipient will receive the greatest benefit starting at which of the following ages?
65
Which of the following best describes Third-Party Ownership?
A policy owned by one person insuring the life of another person
All of the following are examples of third-party ownership, except:
An employee voluntary life insurance plan
Which of the following is truly a Key Person (Key Employee)?
An executive Sales manager
Group Life Insurance is usually written as:
Annual Renewable Term
Regarding Social Security survivor benefits, when the youngest child reaches age 16, the widow's/widower's ________ period begins and continues until the surviving (non-remarried) spouse reaches age 60.
Blackout
The Social Security Survivor Benefit is based on the Primary Insurance Amount of the:
Deceased
Credit Life Insurance is usually what type?
Decreasing Term
For those individuals who have health issues, which of the following would be an insurance plan to consider?
Group
In which market are Certificates of Insurance issued to insured individuals?
Group
Which of the following is a requirement in order for a third-party ownership policy to be issued by a life insurance company?
Insurable interest must exist between the policyowner and the insured
Under an Entity Purchase Plan form of a Buy-Sell Agreement, the business is all of the following, except:
Insured
After the blackout period has ended, the widow or widower may receive a Social Security income benefit based on the ____________.
PIA of the deceased spouse
To help protect against experiencing immediate claims, group plans have a(n) ________ period set up by the group sponsor.
Probationary
A mandatory participation rate for noncontributory group plan is designed to:
Reduce adverse selection
Lorraine's position has been terminated, and she is interested in converting her group life coverage to an individual policy. In the process, she will find all of the following to be TRUE, except:
She will be converting her group term benefit to an individual term benefit
Group life insures a group of people under a ____________.
Single contract
All of the following are characteristics of Home Service (Industrial) Insurance, except:
The Grace Period is 10 days
Which of the following statements is FALSE regarding Credit Life Insurance?
The amount of coverage is dependent upon the duration of the loan
All of the following are characteristics of Credit Life Insurance, except:
The debtor generally is both the policyowner and beneficiary
In terms of planning out a company's budget, what must be taken into consideration if a group life insurance plan is in place?
The insurer can increase the premium at renewal
A Credit Life Policy will be canceled if:
The loan is paid off or refinaced
What is the most important thing a buy-sell agreement establishes in the agreement?
The price of the business
Which of the following is a major risk to an employee covered under an employer's group life insurance plan?
The sponsor can elect to discontinue the plan