Additional health and Life insurance terms and questions

Annually renewable term is considered the _______ form of term insurance?

Purest

What does level refer to in level term insurance?

The Face Amount

What allows the policyowner the right to change beneficiaries, choose options and receive proceeds of a policy?

The Owners Rights

The commissioner of Insurance is

The chief officer of Insurance

annually renewable term characteristics

The death benefit stays level but the premium increases each year with the insured's attained age

With coinsurance the larger the percentage that is paid by who will lower the required premium?

The larger the percentage that is paid by the insured, the lower the required premium will be

Considerations is

something of value that is transferred between the two parties to form a legal contract Ex: The promise to pay covered loss, The premium amount paid at the time of application

Employer contributions made to a qualified plan are

subject to vesting requirements

Major medical health insurance

usually has deductibles and a copayment requirement.

What can you not do when continuing education requirements at the licensing period?

you may not repeat the same courses to meet the required CE Hours for the licensing period

What is the typical deductible for basic surgical expense insurance?

$0

The least expensive first year premium is found in which policy?

Annually Renewable Term

What provides coverage on a first dollar basis

Basic Expense

What coverage, Written in conjunction with hospital expense policies , covers expenses such as Surgeon fees, anesthesia, and the operating room?

Basic Surgical Expense

Term insurance does not build

Cash Value

Straight Life Policies

Charge a level annual premium throughout the insured's lifetime and provide a level, guaranteed death benefit.

Which rider when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

Universal life insurance is also known as

Flexible premium adjustable life

Which rider would not increase the premium for a policyowner?

Impairment rider, the insurance company will not charge extra for a rider that reduces benefits.

Who has the authority to make changes to the insurance policies?

Insurer's executive officer

A Guaranteed renewable disability insurance policy

Is renewable at the insured's options to a specified age

If an accident happens during the grace period, what will happen with the claim?

It will be paid

What term means a result of calculation bases on the average number of months the insured is projected to live due to medical history and mortality factor?

Life Expectancy

Partial disability benefit is typically 50% of the total benefit and is

Limited to a certain period of time

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium

Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?

Notice of claim

if an applicant is 65 years old and has enrolled in Medicare part A & B what is the insurance company obligated to do?

Offer the supplement policy on a guaranteed issue basis

What provision is mandatory and required by law for a heath insurance policy?

Physical examination and Autopsy

What term will be permissible in describing a life insurance policy in company advertisements?

Variable Plan, any term that implies that life insurance is an investment plan

What rider in a whole life policy allows the company to forgo collecting the premium is the insured is disabled

Waiver of premium

Qualified plans must have

a vesting requirement

Who is a foreign insurer?

an insurer with a home office in another state

viator is

an owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract

The policy owner for a universal life policy has the right to

increase the amount of premium paid and to later decrease it if deemed necessary

Presumtive Disability

is a provision found in most disability income policies that specifies conditions that will automatically qualify the insured for full disability benefits

What is target premium for?

it is a reccomended amount to be paid in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime