Massachusetts Life
Which of these is NOT a true statement of the war exclusion?
Civil insurrections apply
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes?
As a Section 1035 exchange
Who normally pays the premiums for group credit life insurance?
Borrower
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 10% penalty tax on $30,000
Which statement regarding the life insurance premium for a childrens rider is true?
Premium remains the same no matter how many children
How are level term policies able to provide level premiums?
Premiums are averaged over the term of the policy
Which of the following is not covered by a comprehensive long term care policy?
acute care
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of
apparent authority
For purposes of disability income insurance, earned income would include all of the following EXCEPT
dividends
The absolute assignment of a life insurance policy results in
the assignee receives all incidents of ownership
James is covered with health insurance by two different insurers. The "insurance with other insurers" provision in an individual health insurance policy allows an insurer to pay benefits to the insured on a pro-rata basis when
the insurer was not notified prior to the claim that the insured has other health coverage
A business becoming incorpora
transfee
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
Which of the following individuals is eligible to receive a temporary producer license?
A designated employee who is replacing a deceased producer
Cross purchase agreement
A document that allows a company's partners or other shareholders to purchase the interest or shares of a partner who dies, becomes incapacitated, or retires. Used in business continuation planning
Which of the following combinations best describe a universal life insurance policy?
A flexible premium deposit fund and a monthly renewable term insurance policy
An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?
A good health statement
What is a juvenile life insurance policy?
A life policy that covers the life of a minor
Which of the following would NOT be appropriate for an immediate annuity?
A parent saving for a child's college
Which of the following would not be appropriate for an immediate annuity?
A parent saving for a child's college
Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy?
A portion of the payments paid to the beneficiary comes from interest calculated on the proceeds of the policy
coercion
A protective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of
A hold-harmless clause is an example of risk
"transfer". A hold-harmless clause found in a contract shifts liability for loss from one party to another.
Beth is a surgeon who has an own-occupation disability income policy. She was injured six months ago and has been unable to return to her practice. Her monthly benefit from the policy is $15,000. During this time, Beth has been working part-time at a local boutique and receives $2,000 monthly. What is her ongoing monthly benefit while she is unable to perform her surgical duties?
$15,000
A non-participating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value?
$16,000 tax free; $4,000 ordinary income
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value?
$16,000 was received tax-free and $4,000 as ordinary income
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today?
$200,000
An insured has a $25,000 whole life insurance policy with $6,000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured?
$25,000
Who normally pays the premiums for group credit life insurance?
. The borrower typically pays the premiums on any credit life insurance policy.
In Massachusetts, a small employer is comprised of
1-50 employees
What is the accounting measurement of an insurance company's future obligations to its policy owners?
1-50 employees
A premature distribution from a modified endowment contract incurs a penalty tax of
10%
Premature IRA distributions are subject to a penalty tax of
10%
Which of these statements about traditional individual retirement accounts is accurate?
10% penalty is applied to withdrawals prior to age 59 1/2
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%
What minimum percentage of employees must participate in a group life insurance plan if the premiums are completely paid by the employer?
100%
Under HIPAA, medical plan late enrollees may be excluded for pre-existing conditions for a maximum of
18 months
Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of
20%
A notice of information practices must be given to a policyholder at least every
3 years
Which type of life insurance policy is best suited for paying off the outstanding balance of a 30 year mortgage in the event of the insureds death?
30-year decreasing term
A producer has received the first year commission paid on a Medicare Supplement policy. Renewal commissions must then be provided for at least _____ years after the first year
5 years
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?
50%
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy?
6 months
How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision?
6 months
Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?
60 days
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
60 days
What is the actuarial value of a bronze level health plan?
60y
An individual is insured under a major medical plan with a $1,000,000 lifetime benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year, what is the remaining lifetime benefit?
960,000
A life insurance policy provision that has the ability to reduce the death benefit is called the
Accelerated living benefit
Deferred Annuity
Accumulation
The highest mortality rate belongs to which group?
Age 70 males
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
marital deduction
All property left to a surviving spouse passes free of estate tax marital deduction is not allowed for non-citizens but personal estate tax can
Which of the following is NOT a valid contract exchange?
An annuity exchanged for a life insurance policy
Which of the following is not a valid contract exchange?
An annuity exchanged for a life insurance policy
When a large sum of money is used to structure monthly payments, which product is typically used?
An immediate annuity
When a large sum of money is used to structure monthly payments, which product is typically used? A 401(k) plan A 403(b) plan A deferred annuity An immediate annuity
An immediate annuity
Rick is a disabled worker receiving Social Security benefits. What are his wife and dependent children eligible for?
An income benefit which is a percentage of his primary insurance amount
Which of the following is NOT a reason for a business to buy key person life insurance?
An increased pension liability if the key employee dies
Which of the following is not a reason for a business to buy key person life insurance?
An increased pension liability if the key employee dies
Which type of policy can group term life insurance normally be converted to?
An individual permanent life insurance policy
What qualifies as acceptance of an insurance contract offer?
An issued policy
Which is an accurate description in a graded premium life insurance policy?
Annual increases in premium for a stated number of years that remains level
Which statement is INCORRECT concerning a tax-sheltered annuity (TSA)?
Annual investment gains are included in participant's gross income
A single-life annuity only has ONE
Annuitant
During the liquidation phase of an annuity contract, to whom are the income benefits normally payable to?
Annuitant
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 as substandard risk
Before an individual is permitted to act as an insurance agent, he/she must hold a valid insurance license and be ___________ by an authorized insurer.
Appointed
How may an insurance company classify an accidental death benefit on a life policy?
As an optional policy rider
Julie is in I'm need of assistance with one or two activities of daily living. She may be eligible for a(n)
Assisted living facility
Which of the following is not the responsibility of an insurer?
Assuming liability for a producer's unauthorized acts
Which of the following is NOT the responsibility of the insurer?
Assuming liability for a producers unauthorized acts
When does the insured stop making payments under a thirty payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
A reciprocal insurer typically has an administrator who manages the premiums collected from the groups members. This administrator is called a(n)
Attorney in fact
In the event of premium default which life insurance provision will use the cash value to keep the policy in force?
Automatic premium loan
The Coordination of Benefits provision is added to a group health plan in order to
Avoid over insurance
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 fully taxable
What is the tax treatment of benefit payments for non-qualified annuity?
Benefit payments are always fully taxable
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
Tim had an on-the-job accident and collects benefits from his individual disability income policy. What factor could possibly reduce these benefits?
Benefits he receives from workers compensation
Tim had an on-the-job accident and collects benefits from his individual disability income policy. Which factor could possibly reduce these benefits?
Benefits he receives from workers compensation
A preferred provider plan and an indemnity plan are similar in what way?
Both pay on a fee-for-service basis
Which of these is not considered a cost connected with an individuals death?
Business expenses
After an applicant reads and signs an insurance application, he/she should be conscious of the fact that
a false statement could lead to loss of coverage
Tax sheltered annuity
a savings plan where pre-tax money is deposited to earn interest over a period of time
Absolute Assignment
all ownership rights in the policy are transferred to a new owner
An individual who purchases a modified life insurance policy expects
an improvement in future income
Automatic Premium Loan Provision
an overdue premium is automatically borrowed from the cash value after the grace period expires
The surrender charge on many deferred annuity contracts are waived when the annuitant becomes unemployed annuitant dies or becomes disabled contract's interest rate falls below a stated percentage contract is canceled within the first year
annuitant dies or becomes disabled
When there is a named beneficiary on a life insurance policy, the death benefits
are paid directly to the beneficiary without interference from the insured's creditors
If a disability income policy contains a cost of living adjustment rider, benefits must typically be increased
at least once per year from when the benefits began
When does the owner's contractual rights begin under an individual annuity contract?
at the time of purchase
What is the tax treatment of benefit payments for a non-qualified annuity?
benefit payments are always taxable
Which of these is not considered to be a cost connected with an individuals death?
business expenses
The guarantee of insurability option provides a long-term care policyowner the ability to
buy additional coverage at a later date
Which of the following types of insurers limits the exposures it writes to those of its owners
Captive insurer
Which of the following is NOT an allowable exclusion for long-term care insurance policies
Care for incurable conditions
Which statement regarding the waiver of premium rider is accurate?
Cash payment is not directly provided to the policyowner
Which statement regarding universal life insurance is correct
Cash value accumulations have a guaranteed minimum interest rate
Which statement regarding universal life insurance is correct?
Cash value accumulations have a guaranteed minimum interest rate
Which of the following is not a condition that must be met for an accidental death benefit to be paid
Cause of death must be from a job-related injury
If the Superintendent has reason to believe a producer has violated Massachusetts insurance law, the Superintendent may issue a(n)
Cease and desist order
Which would be described as a beneficiary designation by class?
Children of the insured
An employee welfare plan exempt from ERISA regulations would be
Church plans
Which of these is not a true statement of the war exclusion?
Civil insurrections apply
All of these are considered to be a violation of the federal fraud and false statement ms act except
Claims Reimbursement
Which of these is NOT a punishment for committing an unfair and deceptive insurance practice?
Community service
The principal source of information concerning an appoints identity, age and marital status is found in the
Completed application
What must be given to a life insurance applicant when the agent receives an application and the initial premium?
Conditional receipt
Which report contains information regarding an individual's general reputation and credit standing?
Consumer report
In regards to the Affordable Care Act, 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
An annuity's accumulation period may
Continue after the purchase payments stop
Which of the following is not an intended use of an annuity?
Create new funds upon the death of a wage-earner
Which of the following disability buy-sell agreement is best suited for businesses with a limited number of partners?
Cross-purchase agreement
Which of the following disability buy-sell agreements is best suited for businesses with a limited number of partner?
Cross-purchase agreement
What effect does interest income have upon insurance premiums?
Decreases premium
In what way is a life insurance policy affected by an accelerated benefit payment?
Decreases the death benefit
Which of the following is generally a form of group credit life insurance?
Decreasing
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
An individual, age 45 would like to help pay for his daughters college expenses in 10 years. Which annuity would be appropriate for this individual?
Deferred annuity
Which of these is not an underwriting responsibility of a life insurance agent?
Determining the final rate classification
Which of these noncontributory group plans would a claim likely result in the payment of federal income taxes?
Disability Income
Which type of group plan is excluded from HIPAA rules?
Disability income
Elimination periods typically apply to
Disability policies
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
Which of the following is not guaranteed in a whole life policy?
Dividend scale
Which statement about group life insurance is incorrect?
Each participant requires evidence of insurability
Which of the following is considered an activity of daily living when determining an accelerated life insurance benefit?
Eating
Which of the following would permit an insurer to delay a covered disability policy claim
Elimination period
Which of these is NOT considered a type of limited payment whole life insurance?
Endowment at age 70
Which of these is not considered a type of limited payment whole life insurance?
Endowment at age 70
Death benefits from a life insurance policy are not ally considered to be
Exempt from federal income tax
How are benefit payments from individually-owned medical expense policies treated for tax purposes?
Exempt from income taxes
The "Notice to buyer" on the first page of each long-term care policy delivered in Massachusetts
Explains that some long-term care costs may not be covered
The "Notice to buyer" on the first page of each long term care policy delivered in Massachusetts
Explains that some long-term costs may not be covered
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
Extended term nonforfeiture option
When an applicant applies for a large amount of life insurance coverage, which of the following would likely not be a underwriting requirement?
Eye examination
Which statement concerning a decreasing term life policy is accurate?
Face amount decreases over the policy period
A policy owner 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
A policyowner fell behind on the premium payments of a whole life policy, and it 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
Which benefit supplement added to a life insurance policy insures an entire family?
Family term rider
Which tax cost is normally associated with death?
Federal estate tax
Which tax is normally associated with an individual's death? Excise tax Consumption tax Federal estate tax Ad valorem tax
Federal estate tax
Which of these may not be deducted from premium payments or the cash value of a variable life insurance policy?
Federal premium taxes
When an annuity contract has been fully surrendered, how will the surrender charges affect the final contract settlement?
Final contract settlement will be reduced
An annuitant is paid $495 per month until the contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this?
Fixed amount under the fixed amount option, the annuitant receives a fixed payment until the contract value is exhausted, regardless of when that will be. If the annuitant dies before the contract is depleted, the beneficiary receives the remainder.
Which life insurance settlement option pays a stated all monthly benefit until both principal and interest are exhausted
Fixed amount installment option
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted?
Fixed amount installment option
Tori has an annuity that pays her a $500 per month income benefit for life or for ten years, whichever is longer. What kind of annuity is this?
Fixed life annuity with period certain
What are premiums for group life insurance based on?
Flat rate unrelated to the borrowers age
Which of the following contracts offer deferred taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value?
Flexible premium fixed annuity
Which of the following contracts offers deferred taxation, flexible payments, a guaranteed interest rate and death benefits equal to the cash value?
Flexible premium fixed annuity
An annuity contract may be returned for a full refund during the
Free-look period
Which life insurance policy provision allows a policy owner to cancel the policy and receive a full refund within a limited time period after policy delivery?
Free-look period
How long does one premium payment cover in a single premium whole life policy?
Full life of the policy
Emily is disabled. In order to become eligible for Social Security disability income benefits, she must be
Fully insured, according to social security
What is considered a valid reason for small corporations to insure the lives of its major stockholders?
Fund a buy-sell agreement
A business may purchase an annuity for all of the following reasons EXCEPT Structuring a liability settlement payment Funding a non-qualified deferred compensation plan Accumulating assets on a tax-deferred basis Providing a pension to employees
Funding a non-qualified deferred compensation plan
When the disclosure of an insureds non public information is involved, what is the insurer obligated to do?
Give notice, explain and allow opting out
A large corporation purchases an accumulation annuity contract where all of the participating employees receive certificates of participation. What is this contract called? 403(b) plan Group deferred annuity Group immediate annuity Joint and survivor group plan
Group deferred annuity
The administrator for a corporate pension plan bought an accumulation annuity contract for its 2,000 employees. All 2,000 participating employees received certificates of participation. What kind of contract is this?
Group deferred annuity
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
What is the name of the rider that provides an additional purchase option in a life insurance policy?
Guaranteed insurability rider
Which of the following is NOT true of a preferred provider plan?
Hospitals can only initiate preferred provider plans
Which of the following is not subject to the promise to pay in an insuring clause?
How the premium is calculated
When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?
Identifies the needs of an individual and the individual's dependents
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
A single premium deferred annuity sometimes contains a bailout feature. Which statement regarding this feature is correct?
If the interest rate falls below a specified level, the surrender charge is waived
An annuity which starts paying monthly benefits within a month after issuance is called a(n)
Immediate annuity
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's proceeds
When must insurance interest exist for a life insurance contract to be valid?
Inception of the contract
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
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
Which statement regarding the certificate of insurance is accurate?
Indicates evidence of an employee's insurance coverage
All of these are considered features of whole life insurance except
Initial premium is lower than for an equivalent amount of term insurance
Which statement regarding whole life insurance is accurate?
Insurance coverage can continue for life
A life insurance policy that contains an accelerated (living) benefit rider will provide funds if the
Insured is expected to be confined to 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 health policy clause specifies the amount of benefits to be paid?
Insuring
Which statement is incorrect about the interest only settlement option in a life insurance policy?
Interest on proceeds must be paid by the beneficiary
Which of these statements is not true regarding a cash value loan against a life insurance policy?
Interest payments made by policyowner are deductible
When compared to a fixed annuity, a variable annuity has what distinguishing feature?
Investment risk is assumed by the purchaser
When a policy loan is requested by a policyowner and it requires the consent of the beneficiary, what kind of beneficiary designation is this?
Irrevocable beneficiary
Which of these would not be a valid reason to add the waiver of premium rider to a life insurance policy?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
Which life insurance settlement option pays lifetime benefits to two or more people?
Joint and survivor
A retired couple would like to maximize the income derived from their life savings and have it payable until they both die. Which annuity would be their best choice? Fixed annuity Survivorship annuity Joint life annuity Joint and survivor annuity
Joint and survivor annuity
Which of these pays an income to two or more annuitants until the death of the last annuitant? Joint life annuity Deferred survivor annuity Joint and survivor annuity Survivorship annuity
Joint and survivor annuity
What type of life insurance policy covers tel or more persons and pays the face amount upon the death of the first insured?
Joint life
A life insurance beneficiary died after receiving only six payments under the policy's life income settlement option. What happen with the remaining balance of the death proceeds?
Kept by the insurance companh
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
Which of the following is associated with an immediate annuity?
Lack of an accumulation period
An arrangement where an individual is authorized to act on behalf of another persons or company is established through
Law of Agency
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT
Leave a conditional receipt with client
All of these are duties that a producer may be required to perform when delivering an insurance policy except
Leave a conditional receipt with client
The death proceeds of a credit life insurance policy are typically paid to the
Lender
How much is normally paid to a policyowner in a life (viatical) settlement?
Less than the death benefit
How much is normally paid to a policyowner in a life (viatical) settlement? Total premiums paid plus interest Full face amount More than the face amount Less than the death benefit
Less than the death benefit
A policyowner has a life insurance policy where she had listed her age on the application as 5 years younger than her actual age. If she dies and the insurer discovers the misstatement of age, how much will the insurance company pay?
Less than the face amount
What is the guaranteed cash value of a whole life insurance policy when the insured turns 66 years old?
Less than the policy's face amount
During the early years of a whole life insurance policy, the cash value will normally be
Less than the total premiums paid
Laura added a children's rider to her life insurance policy. What type of coverage was added?
Level term
Which of the following is a potential punishment given to a producer found guilty of an unfair method of competition?
License suspension or revocation
What is another term used for "pure" life annuity?
Life income
Which of these is not a common life insurance nonforfeiture option?
Life income annuity
How can a group dental insurer discourage adverse selection?
Limit the duration of coverage
Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment?
Loan amount is increased to reflect the amount of interest due
Which of these is not relevant when determining the amount of personal life insurance needed?
Local unemployment rate
Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense?
Long-term care benefit rider
Which of these would NOT likely qualify as a presumptive disability?
Loss of sight in one eye
A life policy's spendthrift clause would have no effect if the beneficiary is paid the proceeds as
Lump sum payment
A life policy's spendthrift clause would have no effect if the beneficiary is paid the proceeds as a
Lump sum payment
The owner of a single premium deferred annuity is entitled to do all of these EXCEPT
Make multiple premium payments
The owner of a single premium deferred annuity is entitled to do all of these EXCEPT
Make multiple premium paymentsI
The annuitant in a single premium deferred annuity(SPDA)
Makes only one premium paymebt
Which of the following situations would an insurance agent need to guard against liability for professional errors and omissions
Making a recommendation to a potential insured to replace existing coverage
Which of the following situations would an insurance agent need to guard against liability for professional errors and omissions?
Making a recommendation to a potential insured to replace existing coverage
According to the federal fraud and false statements act, which of these is considered to be an intentional violation?
Making false entries in a company's books
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual?
Management of proceeds would be provided
John bought a deferred annuity on Mary. John amends the contract years later to name Tom as the recipient of the proceeds of Mary dies. Who is the annuitant for this contract?
Mary
Karen is considering replacing her individual accident and health insurance policy with another individual policy. She has had issues in the past with her gall bladder that would be considered a pre-existing condition. How will a pre-existing conditions exclusion affect Karen's new insurance contract?
May reduce her benefits
Medicare Part A coinsurance payments are covered by
Medicare Supplement Plan A
Medicare part a coinsurance payments are covered by
Medicare Supplement Plan A
Why do insurers require a minimum number of employees participate in a group insurance plan?
Minimize adverse selection
What is considered a valid reason for an insurers refusal to pay policy proceeds directly to a minor
Minors are normally not capable of handling money in a reasonable manner
Which of the following is considered to be an unfair claims settlement practice?
Misrepresenting pertinent policy provisions relating to coverage after a loss
A life policy that has premiums that are lower than normal during the early years is called
Modified life
Life insurance premiums are computed on what three factors?
Mortality Interest Expenses
If the Commissioner requests access to a producers business records, the producer
Must provide access to the records upon request
If the commissioner requests access to a producers business records, the producer
Must provide access to the records upon request
Which of these is not used as a selection criteria in the underwriting process of a life insurance applicstiom
National origin
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
Term Life Insurance
No cash value
The contractural rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called
No forfeiture options
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
Which of the following is not an example of risk retention?
Not doing a business deal after deciding it would be too risky
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.
Insurable interest involves what assumption?
One person benefits from another person's continued life
All of these statements correctly describe an aleatory contract EXCEPT
Only one party makes any kind of legally enforceable offer
Which statement is NOT true regarding health insurance policies that provide limited benefits?
Only persons under the age of 65 are eligible
Who typically makes the purchase payments in an individual annuity?
Owner
Which statement best describes a single premium whole life policy?
Paid-up policy that offers lifetime protection
Which of the following is not true of participants in multiple-employer trusts?
Participants must purchase all coverages the trust offers
Employers often purchase life insurance on a key employee in order to
Pat for finding and training a replacement if the employee dies prematurely
A life insurance policy's contingent beneficiary is the
Person who receives the death benefits if the primary beneficiary dies before the insured
Which would NOT be a location where skilled nursing care is provided?
Personal residence
Which of these is NOT a factor that influences group health insurance underwriting?
Physical exams of group members
A signed good health statement may be requested by a life producer at the time of
Policy delivery
If the insured dies during the grace period without having paid the premium , how much will the insurer pay?
Policy face amount minus premium the premiums die
These are all accurate statements regarding universal life insurance EXCEPT
Policy loans are not permitted
These are all accurate statements regarding universal life insurance except
Policy loans are not permitted
Which of the following statements best describes disability buy sell insurance policy?
Policy proceeds are typically received income tax ftee
Straight whole life insurance can be accurately described in all of these statements EXCEPT
Policy protection normally expires at age 65
What happens to a life insurance policy when the policy loan balance exceeds the cash value?
Policy will no longer be in force
The standard provisions of an accident and health insurance policy require that the
Policy, endorsements and attached papers constitute the "entire contract"
The beneficiary of a life insurance policy is normally selected by whom
Policyowner
A disability income insurance policy was recently issued with a rating. What does this mean?
Policyowner will be charged an additional premium
The law of large numbers enables an insurer to
Predict lpsses
The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is
Preferred Provider Organization (PPO)
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 pay or dies or becomes disabled
A life insurance policy's contingent beneficiary is the
Primary person who receives the death benefits of the insured dies
When must a producer provide disclosure about information practices to an applicant?
Prior to or at the time of signing the application
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
Producer
Which of the following outlines the authority given to the producer on behalf of the insurer?
Producer contract
A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called
Profit sharing plan
Which benefit can be found in an equity indexed annuity, but not in a fixed annuity? Protection against living too long Equity loans A fixed rate of return Protection against long-term inflation
Protection against long-term inflation
Which of the following would not be a reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
Which of the following actions does NOT need to be taken by a policyowner to continue a newborns health coverage beyond the initial coverage period?
Provide evidence of insurability
Nonforfeiture Options
Provisions in a life insurance policy that give the policyowner a choice of ways to use the cash value if the policy is terminated and that protect the policyowner from forfeiting the cash value.
Which of these occurrences could improve an insurers ability to reduce premiums?
Rate of earnings on investments increase
Which of these characteristics is NOT a characteristic of the law of large numbers?
Rates can be calculated to compensate for losses
During an annuity's liquidation phase, the annuitant normally
Received benefit payments at regular intervals
How are qualified Roth IRA distributions normally treated for tax purposes?
Received income tax free
Which of the following is not a dividend option for a life insurance policy?
Receiving the entire policy cash value
Jim is covered under a disability income policy. He is hurt while engaged in an occupation that is more hazardous than the occupation he specified in the policy. What action will the insurer likely take?
Reduce the benefit level
The automatic premium loan provision can be accurately described as
Reduced
What effect can a long term care benefit rider have on a life insurance policy?
Reduced death benefit
What effect can long-term care benefit rider have on a life insurance policy?
Reduced death benefit
Which of the following statements BEST describes the HIPAA portability rules for an individual who changes from one group medical plan to another?
Reduces or eliminates any pre-existing conditions excluded under the new plan
What could be the potential result of taking out a cash value loan under a life insurance policy?
Reduces the amount receivable upon surrender of the contract
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? Benefit payments stay fixed Reflects changes in the market value of assets in a separate account Annuitant controls any benefit payment changes Any benefit payment fluctuations have to be approved in writing by the owner
Reflects changes in the market value of assets in a separate account
Which of the following is not an objective of the National Association of Insurance Commissioners
Regulate state insurance commissioners
When a lapsed policy's premium has been paid current it has the potential of being
Reinstated
How can an insurance company minimize exposure to loss
Reinsuring risks
How can an insurance company minimize exposure to loss?.
Reinsuring risks
A life insurance policy's waiver of premium rider has the ability to pay
Relieve the insured of premium payments following an initial waiting period after the insured becomes totally disabled
Which of the following is NOT a basic underwriting action for accident and health insurance?
Removing uniform policy provisions
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
What is an accounting measurement of an insurance company's future obligations to its policy owners
Reservez
Which of the following would most likely purchase an immediate annuity?
Retiree having a lump sum to invest
What kind of arrangement gives the policyowner the right to change the beneficiary? Contestable designation Incontestable designation Irrevocable designation Revocable designation
Revocable designation
Which of the following can be defined as "the potential for loss"
Risk
What does a fixed life annuity offer protection against?
Savings depletion because of longevity
what does a fixed life annuity offer protection against?
Savings depletion due to longevity
Switching Life insurance policies without tax consequence is permitted under
Section 1035 rules
Which of these is not considered the responsibility of a producer during the underwriting process?
Selecting the final approval date
Assets that back the non-guaranteed values of variable life insurance products are held in which account?
Separate account set up by the insurer
Assets that back the non-guaranteed values life insurance products are held in which account?
Separate account set up by the insurwr
When an annuity contract has been surrendered, how will the surrender charges affect the final contract settlement?
Settlement will be reduced
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
Which of the following does a Medicare advantage enrollee typically pay for?
Small co-pay per visit or per service
Kelly purchased a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for
Specific reasons stated in the contract
Which one of these is NOT considered to be an element of an insurance risk?
Speculative risk
Which life insurance policy provision prohibits a beneficiary from commuting, encumbering, withdrawing or assigning any portion of the proceeds prior to actual receipt from the company?
Spendthrift Clause
Which life insurance policy provision prohibits a beneficiary from "commuting, encumbering, withdrawing, or assigning" any portion of the proceeds prior to actual receipt from the company?
Spendthrift clause
XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this?
Split-dollar
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 adjustmenf
Individuals who participate in an HMO are called Subscribers
Subscribers
Which of the following incidents would NOT be covered by an Accidental Death and Dismemberment policy?
Suicide
The _________ has the ability to examine the records of authorized insurers because of the powers granted through state statutes.
Superintendent
Which of these annuity contract features is meant to discourage withdrawals and exchanges?
Surrender charges
How does the cost of a survivorship life policy compare to the cost of combining two desperate individual live insurance policies?
Survivorship life is lower
How does the cost for a survivorship life policy compare to the cost of combining two separate life insurance policies? Survivorship life policy is lower Survivorship life policy is higher Depends on the investment performance of the underlying accounts Both have the same actuarial costs
Survivorship life policy is lower
How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)?
Taxed as ordinary income in the year received
When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium rate will be the current rate for
Ten year term insurance for a person aged 55
Which statement concerning the Entire Contract provision in an individual accident and health insurance policy is TRUE?
The agent doesn't have the authority to change the policy or waive its provisions
Which statement concerning the entire contract provision in an individual accident and health insurance policy is true?
The agent doesn't have the authority to change the policy or waive its provisions
Which statement regarding the joint and survivor life insurance settlement option is not true?
The amount of each installment is larger than the single life income option
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
When would evidence of insurability be required for a person already covered with a variable universal life policy?
The death benefit is increased
All of these statements concerning credit life insurance are false except
The face amount is based on the outstanding loan balance
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 statement regarding a fixed period settlement option is correct
The installment payment amount is determined by the total number of installments
Which statement regarding a fixed period settlement option is correct?
The installment payment amount is determined by the total number of installments
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
An insured, age 67, is covered under a disability income policy. What will the insurer require in order for the insured to continue coverage?
The insured must work for a stated number of hours per week
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the insured?
The insured's estate
What determines how much an annuitant is paid for a variable annuity?
The market value variations of the securities backing it
Which statement concerning a deferred annuity contract is correct?
The owner can be the beneficiary, annuitant, or neither
Which of the following statements about the installments for a fixed period settlement option in life insurance policies is not true?
The periodic payment amount is determined by the beneficiary's age
Under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting?
The person insured
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
An advantage of owning a flexible premium life insurance policy would be
The policyowner can make policy changes without difficulty
Which of these statements regarding the extended term insurance non forfeiture option in a life policy is accurate?
The premium to purchase the coverage comes from the policy's cash value
Which of these statements regarding the extended term insurance nonforfeiture option in a Loc'd policy is accurate?
The premium to purchase the coverage comes from the policy's cash value
How is a community rating used for underwriting purposes?
The same rates are charged for individual and group plans in the same geographical area
Who is the beneficiary in a life insurance policy?
The stated person or entity who is designated to receive the death proceeds
How does a continuous premium whole life policy differ from a limited payment whole life policy?
The time period in which premiums will be paid
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
The owners cost basis for a non-qualified deferred annuity is typically the same as the
Total premiums paid
A life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insureds death?
Total premiums paid plus the policy face amount
What is the effect of the market value adjustment in a market value adjustment annuity?
Transfers some of the investment risk to the policyowner
Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
Treaty reinsurance
What would be the disadvantage of naming a trust as beneficiary of a life insurance policy?
Trust administration fees would reduce policy proceeds
Insurance crimes which affect interstate commerce are prosecuted by the
US Attorney General
Which of the following best describes a partial disability?
Unable to perform one or more job duties
Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses
Which of the following is not considered to be an expense for surviving family members of a deceased wage earner?
Unemployment tax expenses
How long does protection normally extend to under a limited pay whole life policy?
Until age 100
When does interest income for a flexible premium deferred annuity get reported for federal income taxes?
Upon receiving distributions from the contract
How do birthing centers reduce medical costs?
Using certified nurse midwives
An insurance policy that can also be classified as a securities product is called
Variable Life
Which type of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?
Variable Universal Life
A terminally ill policyholder decides to sell his life insurance policy at a discount to help support his family. This sale is called a
Viatical settlement
A policyowner with a terminal illness who sells his life insurance policy to a third party is called a
Viator
Under what circumstances does an accident and health insurer have the right to request an autopsy?
When not prohibited by state law
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
Under which circumstances is the interest rate guaranteed within a market value adjusted annuity?
When the contract has been in force for a stated time period
Which event triggers a deferred annuity to start making benefit payments to the annuitant?
When the contract is annuitized
When would evidence of insurability be required for a person already covered with a variable universal life policy?
When the death benefit is increased
At what point are death proceeds paid in a joint life insurance policy?
When the first insured dies
When does the producer give a premium receipt for a life insurance application?
When the initial premium has been paid with the application
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has a cash value
According to federal fraud and false statement regulation, what is required for a prohibited person to transact insurance business in the state?
Written consent from the state insurance regulatory agency
Taking a sum of money and decreasing it in size is called
capital liquidation
A source of supplemental income for a life insurance policyowner can be derived from the
cash value
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
cash value
The principal source of information concerning an applicants identity, age, and marital status is found in the
completed application
The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a(n)
conditional contract
Interest is credited to a fixed annuity no lower than the
contract guaranteed rate
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the
cost basis
Merry has an indemnity plan which covers dental expenses. Typically, these types of plans
cover preventative care roe once ever 6 months
According to the needs approach, an emergency reserve fund's primary purpose is to
cover the cost of unexpected expenses
Any employee insured under a group life insurance plan is normally
covered with term life insurance
The main purpose of an annuity is to
create a stream of income
What type of doctor ordered care assists an individual with performing basic daily activities such as bathing, dressing and eating?
custodial care
When a sum of money undergoes capital liquidation, that sum will increase in value remain the same indefinitely decrease in size create tax deductions
decrease in size
What happens to the purchasing power of benefit payments from a fixed life annuity when the cost of living goes up?
decreases
Which annuity allows contributions to an IRA?
deferred
Group life plans sold in Massachusetts typically contain a conversion option. If the insured elects this option, the new policy
does NOT require evidence of insurability
When using the needs approach for life insurance planning, a lump sum may be created to provide for all of the following except
employee benefits
Group deferred annuity
employer holds a master contract and certificates of participation are given to the persons covered by the plan
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
Notice of information practices must be given to a policyholder at least
every three years
When determining the accumulation value of a deferred annuity, the total is calculated by taking the premiums paid plus interest earned minus
expenses and withdrawals
An appointed producer's implied authority is derived from
express authority
When a "ceding" insurer picks and chooses which risks to reinsure and the reinsurer picks and chooses which risks to accept, it is known as
facultative reinsurance
Which settlement option makes minimum guaranteed dollar payments over a stated number of years?
fixed period
Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate
for federal income tax reasons
Death proceeds from a life insurance policy are typically included in a deceased insureds gross estate
for federal income tax reasons
Non-Qualified Annuity
funded with after-tax dollars, meaning taxes on the money were paid before it goes into the annuity. Upon distribution, only the earnings are taxable as ordinary income.
Insurable interest in ones own life is legally considered as
generally unlimited
What is an insurance contract that identifies individuals by relationship to a specific organization?
group insurance
A life annuity with period certain is characterized as
guaranteeing benefit payments for a stated minimum number of years
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
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
When group benefits under COBRA have expired, a fully insured group policy can be converted to a(n)
individual health policy
Which of these procedures is NOT designed for ambulatory care centers?
inpatient surgery
The Medical Information Bureau consists of members from which group?
insurance companies
The medical information bureau consists of members from which group?
insurance companies
When premiums are determined, one factor would be the expenses of the
insurer
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
Accumulation Value of Deferred Annuity
is equal to the sum of premium paid plus interest earned minus expenses and withdrawals
After an insurance application has been originated, the producer normally
is the major personal contact to the insured
The insurance coverage in a variable life insurance policy may vary based on the value of
its underlying investments
During the early years of a whole life insurance policy, the cash value will normally be
less than the total premiums paid
What type of premiums are associated with individual mortgage protection life insurance policies?
level premiums
What type of premiums are associated with individual mortgage protection life insurance policies? Level premiums Flexible premiums Modified premiums Decreasing premiums
level premiums
After the extended term life nonforfeiture option is chosen, the available insurance will be
level term for a stated period of time
Group life insurance is typically issued as
level term insurance
An insurance policy may be issued with a preferred insurance premium in all of these situations except
living in a rural area
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the
marital deduction
A producer is proposing that a policy-owner replace an existing individual health insurance policy with a new one. Under the new contract, a pre-existing conditions exclusion
may reduce the insureds benefits
Field underwriting by a producer
may result in the disclosure of hazardous activities of the applicant
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
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were obtained from the state's Guaranty Association accumulated from the invested principal given up by the annuitant's refund beneficiary not distributed to life annuitants who died before life expectancy
not distributed to life annuitants who died before life expectancy
The authority to change the beneficiary in an individual annuity lies with the
owner
When a deferred annuity is surrendered, who must sign the authorization to do so? Owner Annuitant and beneficiary Annuitant All parties involved
owner
Who typically makes the purchase payments in an individual annuity?
owner
A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
partial disability
Which of the following can be defined as a cause of a loss?
peril
Under a long-term care inflation rider, the benefit levels
periodically increase without proof of insurability
A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to
periodically purchase additional insurancw
What typically changes at the re-entry option date found in some term life policies?
premium
Where is the difference between a standard risk and a substandard risk reflected?
premium charges
Home health care benefits typically do NOT include coverage for
prescription medication
A life insurance producer is required to give a disclosure notice about Information practices to an applicant
prior to or at the time of signing the application
The __________ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant
producer
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
producer
Which of these factors does NOT affect life insurance premium rates?
producer certification
Group accident and health insurance may be offered by an insurer when the sponsoring group
provides an employer-employee relationship
Ron recently purchased an immediate, straight life fixed annuity. His benefit payments will discontinue after a stated number of years remain a constant dollar amount for the duration of the annuity period pay a lump sum if the annuitant dies vary according to the underlying investment performance
remain a constant dollar amount for the duration of the annuity period
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a
risk retention group
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
Rick provides a notice of claim to his health insurer. If he does not receive a claim form within 15 days, he may comply with the proof of loss provision by
submitting written proof of loss
Individuals who participate in an HMO plan are called
subscribers
An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the early contract years. What is this back-end load referred to as?
surrender charge
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally
tax deductible to the business
The premiums paid by an employee for his employees group life insurance are usually considered to be
tax deductible to the enployee
The interest credited to the cash values of personally-owned non-qualified annuities is considered
tax deferred
The interest credited to the cash values of personally-owned non-qualified annuities is considered a tax credit tax-deferred tax-deductible tax-exempt
tax deferred
Qualified long term care premiums are treated for tax purposes as
tax-deductible to the extent they exceed 7 1/2% AGI
Under a key person disability income policy, benefits will be received as
tax-free income to the business
The interest paid during an annuity's payout is considered
taxable as ordinary income
The interest paid during an annuity's payout period is considered nontaxable taxable as ordinary income taxable as capital gains tax-deductible
taxable as ordinary income
The exclusion ratio determines
the amount of an annuity payment subject to income tax
A material change in a modified endowment contract (MEC) results in
the seven pay test, adjusted for cash value, being applied again
The major medical deductible carryover period normally applies to expenses incurred during the last ___ months of the plan year.
three
The powers directly given to a producer in an agency contract are called
to express
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
An insurance policy that can be classified as a securities product is called
variable life
A terminally ill policyowner decides to sell his life insurance policy at a discount to help support his family. This sale is called a(n)
viatical settlement
A policyowner with a terminal illness who sells his life insurance policy to a third party is called a
viator
Laura has an employer-based preventative health care plan that focuses on an enrollee's problems, such as drug abuse or stress. These plans are called
wellness programs
Which life insurance policy would be eligible to include an automatic premium loan provision?
whole life
Which life insurance policy would be eligible to include an automatic premium loan provision? -cash value
whole life
A health insurer MUST provide a proof of loss form
within 15 days of receipt of the notice of loss
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employment
The conversion option for group term insurance may be exercised by an rmployee
within 32 days of terminated employment
The following are all elements of a valid contract EXCEPT
written evidence
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
Which statement regarding the certificate of insurance is accurate?
It indicates evidence of an employee's insurance coverage
Ken is age 65 and has 2 years until he receives Social Security retirement income benefits. At his current age, which is true about Medicare Part A Hospital Insurance coverage?
It is available through application to Social Security
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
The insurance coverage in a variable life insurance policy may vary based on the value of
It's underlying investments
