CT Life & Health Insurance Exam
Speculative risk
A risk that presents both the chance for loss or gain. Not insurable.
Which tax cost is normally associated with death?
Federal estate tax
First-time homebuyers are able to withdraw up to how much from their qualified IRAs without incurring the 10% early withdrawal penalty?
$10,000
After conducting a hearing, the Commissioner is empowered to issue a cease and desist order. A violation of such an order is punishable by a monetary fine not to exceed
$50,000
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
To be classified as a small employer in CT, an employer must employ how many eligible employees?
1 to 50
How long is individual medical expense insurance normally written for?
1 year
The free look period provided in a life insurance policy is usually
10 days
In CT, a producer cannot use his/her license for primarily writing controlled business. In order to conform to this requirement, annual premiums collected on controlled business cannot exceed _______ of total premiums.
10%
Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility?
100 days
John received a one-time distribution of $50,000 from his modified endowment contract (MEC). Prior to that, the contract's cash value was $150,000, the contract investment amount was $100,000, and the death benefit was $500,000. What percentage of the $50,000 distribution was taxable as ordinary income?
100%
After a life insurance policy has been in force for _____ year(s), it becomes incontestable.
2
Mary has a Health Savings Account (HSA). Distributions that she has made for anything other than qualified medical expenses are considered taxable and subject to a penalty of
20%
Nonqualified medical expense distributions from a Health Savings Account (HSA) have a tax penalty of
20%
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
A producer must complete ______ credit hours of continuing education for each licensing period.
24
A licensee whose name or address changes must notify the Commissioner within _______ days.
30
How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?
30
Producers licensed in CT must notify the Insurance Department within ______ days of any change of name or address.
30
Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy?
31
Which of these is NOT an advantage of term life insurance?
A cash benefit will be provided if the insured is alive at the end of the policy period (The greatest amount of coverage can be provided for the initial premium paid, it can be provided as a rider to another policy, temporary insurance needs can be met)
A producer is holding a meeting with a potential client about replacing an existing group health insurance policy. The topic that should be included in the conversation is
A comparison of benefits between the current and proposed plans
Hazard
A condition or situation that creates or increases a chance of loss. (physical, moral, morale)
Which of the following would NOT be appropriate for an immediate annuity?
A parent saving for a child's college (A lottery winner who opted for a lump-sum payment, a beneficiary collecting the face amount of a life insurance policy, someone who just won a large settlement)
Which of the following is an example of defamation?
A producer who publicly and erroneously announces that an insurance company is insolvent
A prepaid dental plan has an agreement in place with a network of dentists which
Accepts an established amount as payment in full for the dental services rendered
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?
Accidental death and dismemberment
Disability income insurance normally excludes coverage for disabilities that arise from
Active military duty
Which of the following is NOT covered by a comprehensive long-term care policy?
Acute care (Custodial care, PT, skilled nursing care)
Which of the following statements accurately describes the "time limit on certain defenses"?
After a stated period of time, claims cannot be denied due to material misrepresentation on the application
Which of the co-annuitants listed below would receive the largest monthly benefit payments in a joint and 100% survivor annuity?
Ages 71 and 73
A(n) _______ insurer operates in the United States but is headquartered outside the United States.
Alien
Peril
An immediate, specific event which causes loss, such as an earthquake or tornado. Can also be referred to as the accident itself.
A television advertisement features a health insurance product that is endorsed by a specific group. In this advertisement,
Any control by the insurer over this group must be disclosed
An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true?
Applicant has a right to receive a copy of the report
In what situation could an insurance policy's coverage be modified?
Applicant is a substandard risk
Accident and health insurance claim handling is made more convenient to the insured by utilizing
Assignment of benefits
Which of the following is NOT the responsibility of an insurer?
Assuming liability for a producer's unauthorized acts (Notifying the Commissioner of the termination of a producer's appointment, providing sales materials to its appointed producers, obtaining a Certificate of Authority prior to conducting insurance business in this state)
When does a family health policy's coverage for a newborn child begin?
At the moment of birth
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?
Beneficiary receives $50,000 income tax-free
What is the tax treatment of benefit payments for a non-qualified annuity?
Benefit payments are always taxable
In long-term care insurance, what is the length of time for which claims will be paid?
Benefit period
Which of the following statements BEST describes a double indemnity provision in travel accident insurance?
Benefits are doubled under certain circumstances stated in the policy
An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before
Bringing legal action against the insurer
A life settlement _______ negotiates a life settlement between a policyowner and a life settlement provider.
Broker
In a disability buy-sell agreement, the policies funding the agreement are owned by the
Business entity
Federally qualified HMO's must offer
Family planning services
A group health plan covers employees in CT, MA, and RI. The state regulatory jurisdiction established for this plan does NOT affect which plan aspect?
COBRA continuation of coverage (Required contract provisions, qualifications for eligibility, minimum enrollment percentages)
For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter
COBRA laws
Taking a sum of money and decreasing it in size is called
Capital liquidation
Nonforfeiture Options
Cash surrender (delayed payment), extended term, reduced paid-up
Which statement regarding universal life insurance is correct?
Cash value accumulations have a guaranteed minimum interest rate
A comprehensive group policy also covers expenses related to vision care. Which of the following is not typically covered under a vision plan?
Cataract surgery (Routine eye exam, corrective vision glasses, corrective contact lenses)
Medical costs in birthing centers are lowered by using
Certified nurse midwives
What is the Pap test designed to detect?
Cervical cancer
An employee welfare plan exempt from ERISA regulations would be
Church plans
All of these are considered to be a violation of the Federal Fraud and False Statements Act EXCEPT
Claims reimbursement (Overvaluing land, abstracting funds, false entries on reports)
Prepaid dental plans differ from most other types of dental plans in what way?
Closed panel of dentists can only be used
In Connecticut, continuing education courses must be approved by the
Commissioner
The _______ has the ability to examine the records of authorized insurers because of the powers granted through state statutes.
Commissioners
When evaluating an insurer's financial status, the Commissioner may consider each of the following EXECPT
Comparing an insurer's agency agreements to determine maximum-paid commissions (Comparing the premiums received with the surplus for each year, underwriting profits, monitoring general account investments)
What must be given to a life insurance applicant when the agent receives an application and the initial premium?
Conditional receipt
A(n) __________ is a licensee who charges a fee for contracted insurance advisory services.
Consultant
In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange?
Contact the employer if an employee stops coverage under a plan offered in the exchange (Offer individual, unique formats for consumers to evaluate different health plan options, certify that a health plan is qualified to be offered on the exchange, resolve and verify an applicant's inconsistent or incomplete information)
Interest is credited to a fixed annuity no lower than the
Contract guaranteed rate
Which of the following does NOT involve a life settlement transaction?
Converting term life coverage to whole life insurance (Inducing life settlement contracts, monitoring life settlement contracts, securing life settlement contracts)
Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans
Cover preventative care once every six months
Any employee insured under a group life insurance plan is normally
Covered with term life insurance
Life settlement proceeds may be subject to the claims of
Creditors
What type of doctor-ordered care assists an individual with performing basic daily activities such as bathing. dressing, and eating?
Custodial care
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective?
Date of issuance of the conditional receipt
All of these are used to prevent adverse selection in a group dental plan EXCEPT
Decreased employee participation (Provide evidence of insurability, probationary periods, waiting periods)
What effect does interest income have upon insurance premiums?
Decreases premium
What kind of life policy typically offers mortgage protection?
Decreasing term
Which of the following is generally a form of group credit life insurance?
Decreasing term insurance
Individuals covered with employer-paid group health plans will normally receive tax-free benefits under all of these plans EXCEPT
Disability income (HMO, vision, major medical)
If a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST
Disclose that premium payments may need to be resumed depending on actual results
For purposes of disability income insurance, earned income would include all of the following EXCEPT
Dividends (Salary, commissions, bonus)
A(n) _______ insurer is incorporated and formed in CT.
Domestic
An employer has a group life coverage for his employees. How would an employee in poor health be treated in this situation?
Eligible for the same type of coverage as the other employees
Non-occupational disability coverage is designed for
Employees who suffer non-work related disabilities are covered by Workers' Compensation
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends
Equal the net single premium for the same face amount at the insured's attained age
An officer for a corporation takes out numerous unsecured loans from the company's qualified retirement plan. Which of these rules is the plan in violation of?
Exclusive benefit rule
A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered EXCEPT for
Experimental and investigative services (Hospital charges, physician fees, nursing services)
A policyowner fell behind on the premium payments of a whole life policy and is now in the grace period. How much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan?
Face amount minus the loan balance and past-due premium
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as
Facultative reinsurance
An example of an Unfair Claims Settlement Practice is
Failing to promptly investigate and settle legitimate claims
Which of the following would be considered a violation of Connecticut insurance law?
Failure to remit premium in a timely manner
A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from?
Fair Credit Reporting Act
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted?
Fixed amount installment option
Rick owns a variable universal life policy and chooses a variable death death benefit option. What will typically happen to the death benefit as a result of this selection?
Fluctuate with changes in the cash account
An annuity contract may be returned for a full refund during the
Free look period
How long does one premium payment cover a single premium whole life policy?
Full life of the policy
What is considered a valid reason for small corporations to insure the lives of its major stockholders?
Fund a buy-sell agreement
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?
Given written consent by the state insurance regulatory agency
Which of the following statements is NOT true concerning the relationship between group health insurance plans and Medicare? (assuming the business has more than 20 employees)
Group health coverage is NOT available for workers over the age of 65 (Group health coverage is available for workers over the age of 65, An active employee's group health plan is primary and Medicare is secondary, unless the employee chooses otherwise, Group health coverage is available to an employee's spouse that also happens to be Medicare-eligible)
A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the
Highest amount payable
Terry receives long-term physical therapy at her residence. What type of insurance would cover this service?
Home health care
For insurance purposes, similar objects which are exposed to the same group of perils are referred to as
Homogeneous exposure units
Some standard Medicare Supplement policies include which benefit?
Hospice care
With life insurance, the needs approach is used primarily in determining
How much life insurance a client should apply for
A characteristic of preferred provider organizations (PPO) is
If service is obtained outside the PPO, benefits are reduced and costs increase
A policyowner has just borrowed from a life insurance policy's cash value. Which of these statements is true?
In the event of death, the loan amount is deducted from the policy proceeds
Under the Pregnancy Discrimination Act of 1978, employers MUST treat pregnancy
In the same manner as any other covered disability
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
Which of the following does NOT help determine group health insurance premiums?
Income level of group members (Average age of group, claims experience of the group, the group's size)
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 10% penalty tax on $30,000
Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?
Incontestable clause
Who is protected with the "other insurance with this insurer" provision?
Insurance company
Which statement regarding whole life insurance is accurate?
Insurance coverage can continue for life
Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider?
Insured is expected to remain in a nursing home for life
Which of these statements reflects an accurate portrayal of Medicare SELECT?
Insured uses preferred providers in exchange for paying lower premiums
Which of the following causes of disability is NOT covered under CT workers compensation laws?
Intentional, self-inflicted injuries that occur at the worksite (Falling down on the job, illness caused by job conditions, strokes that occur on the job)
Andy is in need of health care performed by skilled medical practitioners, but only on an intermittent basis. What level of care will his doctor likely prescribe?
Intermediate care
Which statement regarding the certificate of insurance is accurate?
It indicates evidence of an employee's insurance coverage
The initial premium for a life insurance policy is typically paid in what way?
It is typically obtained by the producer and forwarded to the insurer
A life insurance beneficiary died after receiving only six payments under the policy's life income settlement option. What happens with the remaining balance of the death proceeds?
Kept by the insurance company
What type of premiums are associated with individual mortgage protection life insurance policies?
Level premiums
Laura added a children's rider to her life insurance policy. What type of coverage was added?
Level term
After the extended term life nonforfeiture option is chosen, the available insurance will be
Level term for a stated period of time
The _______ is responsible for reporting the Commissioner any name or address change of the licensee.
Licensee
Which of these is NOT a common life insurance nonforfeiture option?
Life income annuity (Reduced paid-up insurance, extended term option, cash surrender option)
Someone who is licensed to negotiate a life settlement contract is called a(n)
Life settlement broker
Which of these is NOT relevant when determining the amount of personal life insurance needed?
Local unemployment rates (Existing life insurance coverage, household income, household debt)
Respite Care coverage is typically found in a(n)
Long Term Care policy
Custodial care is normally covered under
Long-term care insurance
Which of these would NOT likely qualify as a presumptive disability?
Loss of sight in one eye (Loss of both hands, loss of hearing, loss of speech)
The Commissioner is empowered to perform each of the following acts EXCEPT
Makes rules that are consistent with those of neighboring states (Monitor insurer solvency, make rules and regulations that are consistent with the laws of CT, monitor insurer premium rates)
Bert's spouse passed away recently. Bert was covered under his spouse's group family health insurance plan but now is covered under COBRA. How much of the active-employee cost may be passed on to Bert for continued coverage?
Maximum of 102%
Skilled nursing facility expenses are sometimes covered by _______, but ONLY if the insured was hospitalized prior to entering the facility.
Medicare
Which of these is a type of private insurance that covers the cost-sharing amounts under Medicare?
Medicare Supplement
Medicare Part B excess charges are covered by
Medicare Supplemental insurance
Which individual would be best suited for Medicare Supplement insurance?
Medicare enrollee
In CT, false advertising is an example of
Misrepresentation
Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existance?
Misstatement of age (Fraud, material representation, material concealment)
James the producer has sold a life insurance contract to a client without using an illustration, even though his insurer offers one. For this particular transaction, the applicant
Must sign a statement that no illustration was provided
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons?
Net payment cost index
Specialty care is provided by which of the following health maintenance organization (HMO) providers?
Neurologist
During the sale of a life insurance policy, a producer may provide an incomplete illustration
Never
Beginning January 1, 2014, the restricted annual limit for plans under the Affordable Care Act will be
No limit
Medicare Supplement insurance requires an individual to be at least how old for open enrollment?
No minimum age
Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this?
Noncancelable
Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?
Nonoccupational coverage
An agent whose actions exceed the authority granted by contract is
Not backed by the insurer
How are the premiums for an individually-owned disability income policy treated for tax purposes?
Not tax-deductible at all
A life insurance company just paid a $100,000 death benefit to a beneficiary. When the insured died, the cash value was $15,000 and the total premiums-paid equaled $10,000. How much of the proceeds will be added to the beneficiary's gross income for federal income tax purposes?
Nothing
When a deferred annuity is surrendered, who must sign the authorization to do so?
Owner
Who typically makes the purchase payments in an individual annuity?
Owner
A major medical expense policy typically does NOT
Pay surgeon fees on a first-dollar basis (Contain a deductible, have a high limit of coverage, contain a coinsurance provision)
Which of these is NOT a factor that influences group health insurance underwriting?
Physical exams of group members (Number of individuals in the group, group's claims experience, type of occupation group is involved in)
A signed good health statement may be requested by a life producer at the time of
Policy delivery
These are all accurate statements regarding universal life insurance EXECPT
Policy loans are not permitted (Mortality charge is deducted from the policy's cash value each month, flexible premiums as long as the cost of insurance protection is covered, policy states what percentage of the premium is contributed to the cash value and which pays for the cost of insurance)
The standard provisions of an accident and health insurance policy require that the
Policy, endorsements, and attached papers constitute the "entire contract"
Dividends from a mutual insurance company are paid to whom?
Policyholders
Which of the following accurately describes a participating insurance policy?
Policyowners may be entitled to receive dividends
Tim is in need of surgery, Before being hospitalized, he is referred to an outpatient clinic for diagnostic tests. What is this an example of?
Pre-admission testing
Where is the difference between a standard risk and a substandard risk reflected?
Premium charges
How is the insured protected if a payor benefit rider is attached to the life insurance policy?
Premium payments are waived in the event the premium payor dies or becomes disabled
A Guaranteed Renewable provision allows
Premiums which can only be increased per rate class
Which of these is NOT a standard provision in qualified long-term care policies sold in Connecticut?
Prior hospitalization (30-day free look period, guaranteed renewability, provide minimum coverage for 12 consecutive months)
A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured
Prior to or at the time of signing the application
When must a producer provide disclosure about information practices to an applicant?
Prior to or at the time of signing the application
At what point must a producer give notification to the Commissioner about using an assumed name?
Prior to using the assumed name
What is the name of the period of time during which a new employee is ineligible for group health insurance coverage?
Probationary period
Which of these factors does NOT affect life insurance premium rates?
Producer Certification (Expense factor, interest factor, mortality factor)
A certificate of coverage for a group health policy is best described as
Proof of coverage for the employee
A handicapped child is covered under an individual health policy. If continuation of coverage is needed beyond the policy's age limit, which of the following is required?
Proof of incapacity and dependency upon reaching the age limit
The dental specialty which deals with the replacement of missing teeth is called
Prosthodontics
The main role of accident and health and disability insurance is to
Protect against medical care costs and the loss of earning power
Which of the following actions may result in a producer's license being suspended by the Commissioner?
Rebating part of a commission to the applicant
Insurance producer Kelly offers insured a $500 shopping card if they purchase an insurance product through her. What is this an example of?
Rebating, which is an unfair trade practice
How are qualified Roth IRA distributions normally treated for tax purposes?
Received income tax free
A life insurance policyowner sells her policy to a third party in a life settlement. Under this transaction, the policyowner
Receives an amount less than the policy's death benefit
Which of the following facilitates nonresident licensing in the state of Connecticut?
Reciprocity agreement
An insured covered under a Disability Income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following?
Recurrent disability
What effect can a long-term care benefit rider have on a life insurance policy?
Reduced death benefit
ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk
Reduction
A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen?
Reduction of premium payment
How do benefit payments fluctuate over time in a variable life annuity?
Reflects changes in the market value of assets in a separate account
Statements made by an insured on an accident and health insurance application are considered to be
Representations
What kind of arrangement gives the policyowner the right to change the beneficiary?
Revocable designation
Which of the following describes the act of insuring a risk against possible loss?
Risk transfer
A life insurance producer's underwriting duties may include
Seeking additional information requested by the insurance company
Which of these is NOT considered the responsibility of a producer during the underwriting process?
Selecting the final approval date (Collecting additional medical information if needed, promptly sending the completed application to the insurance company, forwarding any material personal observations to the insurer)
Which of these factors does NOT influence an individual's need for life insurance?
Self-maintenance expenses (Lifestyle of the applicant, number of dependents, future educational costs of the dependents)
Long-term care policies sold in CT may NOT exclude coverage for
Senile dementia
Dividends from a stock insurance company are normally sent to
Shareholders
When issuing disability income coverage on a substandard risk, an insurance company may
Shorten the benefit period
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further payments are permitted and the income stream begins in 15 years. This contract is a(n)
Single premium deferred annuity
Which of these policies is considered a whole life policy?
Single premium life (Credit life, renewable life, convertible life)
What type of risk involves the potential for loss AND the possibility for gain?
Speculative
Contributions made by an employee to a qualified retirement plan are required to be
Subject to a vesting schedule
What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period?
Subject to market value adjustment
A group health certificate for coverage issued in Connecticut MUST contain a(n)
Summary of policy features and benefits
Which of these is a true statement regarding survivor benefits under a qualified retirement plan?
Survivor benefits can only be waived with the written consent of a married employee's spouse
Qualified long-term care premiums are treated for tax purposes as
Tax-deductible to the extent they exceed 7 1/2% AGI
The interest credited to the cash values of personally-owned non-qualified annuities is considered
Tax-exempt
Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan?
Taxes must be paid on 75% of the benefits received
All parts of the Medicare program (except for public information and enrollment) are administered by which federal agency?
The Centers for Medicare and Medicaid Services
To secure authority for soliciting insurance products in the State of Connecticut, an insurance company must secure a certificate of authority from
The Connecticut Insurance Commissioner
Why might it be beneficial for an employee to purchase private disability income insurance for workplace injuries when he/she is already covered by worker's compensation?
The benefit arising from a worker's compensation claim could be inadequate to replace the loss of income
If one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission?
The commission will likely be shared between the two producers
The insured's consideration given for a health insurance policy is
The first premium payment and the application
Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes?
The gain is treated as taxable income and a penalty tax is imposed on the gain
Which of the following is true regarding a person receiving a waiver of premium benefit?
The insured must be disabled for a period of time (The insured must expect a total recovery within 2 years, the insured will not qualify for short-term disability, the insured will not qualify for workers compensation)
When a producer acts within the scope of his/her contractual authority, which of the following is legally responsible for these actions?
The insurer
Which of the following must be clearly illustrated in ALL sales material for market value adjusted annuities?
The market value adjustment can be either upward or downward
What determines how much an annuitant is paid for a variable annuity?
The market value variations of the securities backing it
Pure risk
The only insurable risk and present a potential for loss only, such as injury, illness, and death.
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
The participating employee
Under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting?
The person insured (The period of coverage, the payment period, the plan of coverage)
What happens when a policyowner borrows against the cash value of his life insurance policy?
The policy proceeds would be reduced by the outstanding loan balance
What is considered the collateral on a life insurance policy loan?
The policy's cash value
Which of these must be disclosed in a universal life policy?
The policy's surrender charges
Risk
The potential for loss.
How is a community rating used for underwriting purposes?
The same rates are charged for individual and group plans in the same risk category
Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?
The specified benefit amount is a percentage of his wages
Loss
The unintentional decrease in the value of an asset due to a peril.
Why does Connecticut require insurers to maintain a minimum level of assets?
To demonstrate insurer solvency
The reason for backdating a policy is
To obtain a premium rate based on an earlier age
Purchasing insurance is an example of risk
Transference
Which reinsurance contract between two insurers involves an automatic sharing of the risk assumed ?
Treaty reinsurance
Insurance crimes which affect interstate commerce are prosecuted by the
US Attorney General
In an individual retirement account (IRA), rollover contributions are
Unlimited by dollar amount
Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy
Until they become self-supporting
Which type of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?
Variable universal life
Which of the following best describes the presumptive disability provision?
Waives the typical total disability requirements
Laura has an employer-based preventative health care plan that focuses in an enrollee's problems, such as drug abuse or stress. These plans are called
Wellness programs
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When the conditions of the receipt are met
Which event triggers a deferred annuity to start making benefit payments to the annuitant?
When the contract is annuitized
At what point are death proceeds paid in a joint life insurance policy?
When the first insured dies
The conversion option for group term insurance may be exercised by an employee
Within 31 days of terminated employment
Medicare supplement insurance that provides a preventative medical care benefit will often cover
Yearly physical examinations
Dividend options
cash, reduced premiums, accumulate interest, paid-up additions, one-year term
In order to contribute to a Health Savings Account (HSA),
the applicant must be enrolled in a High Deductible Health Plan (HDHP)