ExamFX Guaranteed Exam Missed/Wrong part 2
An agents first year commission CANNOT exceed what percentage of renewal commission for servicing a Medicare Supplement policy in its second year? -10% -50% -100% -200%
200%
Which of the following would not be eligible for coverage under key person? -the manager of a small store -the owner of a shop -the executive officer of a company -the pharmacist in a drug store
-the owner of a shop the owner is the principal not a key person
Regarding health insurance all of the following are tax deductible EXCEPT: -Employer paid group accidental death and dismemberment -Employee paid group disability income -employer paid group health insurance -employer paid group long term care
Employee paid group disability income READ CAREFULLY
In Whole Life insurance, when is the policy cash value scheduled to equal the face amount? -by the policy's 10th year -when the insured paid up all policy loans -it depends on the type of whole life purchased -at the insured's age 100
at the insured's age 100
How long is a newborn covered without notification to the insurer? -for the first 30 days after birth only - a newborn is not covered without notification to the insurer -from the moment of birth to the first 60 days
from the moment of birth to the first 60 days
under the affordable care act, when could pregnancy be considered a pre existing condition? -always -never -only if specifically excluded by the insurer -if it begins before the coverage takes effect
never
if the insurance premiums were not tax deductible what other taxation will this affect? -taxation of interest -taxation of the policy's cash value -federal income tax -taxation of benefits
taxation of benefits
who is required to pay the fee for an insurance agents appointment -the commissioner -the appointing insurer -there is no appointment fee -the insurance producer
the appointing insurer
Who does the spendthrift clause in a life insurance policy protect? -the insured -the policyowner -the creditors -the beneficiary
the beneficiary
An insured's hospital policy states that it will pay him a flat fee of $75 per day for each day that he is hospitalized. The policy pays benefits on what basis? -indemnity -reimbursement -expense -service
indemnity
An insurance agent who represents multiple companies on a non exclusive basis and earns commissions on personal sales is working in what kind of marketing system? -exclusive agency system -general agency system -managerial system -independent agency system
independent agency system
Once the initial benefit limit in Medicare part D is reached how is the beneficiary affected -the beneficiary is then responsible for 75% of prescription drug costs -the beneficiary is no longer responsible for prescription drug costs -the beneficiary is then responsible for a portion of the prescription drug costs
the beneficiary is then responsible for a portion of the prescription drug costs
which distributions from a modified endowment contract would be taxable as income at the time received to the extent that the cash value of the contract immediately before the payment exceeds the investments in the contract -both partial cash surrender and policy loan -neither partial cash surrender nor policy loan -partial cash surrender -policy loan
both partial cash surrender and policy loan
All of the following statements about indexed whole life insurance policies are correct except: -the premium is fixed -there is a guaranteed minimum interest rate - the cash value depends on the performance of the equity index -the death benefit is not guaranteed
the death benefit is not guaranteed
An employee is covered under COBRA. His previous payment was $100 per month. His employer now collects $102 each month. Why does the employer collect an extra $2? -premiums go up every year regardless of health conditions -to cover other employees who qualify to bypass premium payment -to cover the employers administrative costs -penalty for termination
to cover the employers administrative costs