Part 9

#88. If an insured changes his payment plan from monthly to annually, what happens to the total premium? a) Decreases b) Stays the same c) Doubles d) Increases

a) Decreases

#81. An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day: a)Elimination period. b)Blackout period. c)Probationary period. d)Waiver of benefits period.

a)Elimination period.

L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay? a) $1000 (deductible + 20% of the entire bill) b) $2500 (the entire bill) c) $900 (deductible + 20% of the bill after the deductible [20% of $2000]) d) $500 (amount of deducible)

c) $900 (deductible + 20% of the bill after the deductible [20% of $2000])

#87. The equity in an equity index annuity is linked to a) The annuitant's individual stock portfolio. b) The insurance company's general account investments. c) An index like Standard & Poor's 500. d) The returns from the insurance company's separate account.

c) An index like Standard & Poor's 500.

#90. An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision? a) Survivor Life b) Second-to-Die c) Common Disaster d) Accidental Death

c) Common Disaster

#86. Which of the following would be considered a nonqualified retirement plan? a) Keogh plan b) Roth IRA c) Split-dollar plan d) 401(k)

c) Split-dollar plan

#82. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as: a) Survivorship insurance b) Juvenile protection provision c) Survivor protection d) Life planning

c) Survivor protection

#83. Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option? a)Length of income period b)Amount of interest c)Size of each installment d)Predetermined length of time stated in the contract

c)Size of each installment

Under which of the following organizations are the practicing providers compensated on a free-for-service basis? a) HMO b) Blue Cross/Blue Shield c) Open Panel d) PPO

d) PPO

Which of the following policies would be classified as a traditional level premium contract? a) Adjustable Life b) Universal Life c) Variable Universal Life d) Straight Life

d) Straight Life