Exam 2

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer.

In health underwriting, it would be inappropriate to decline a risk using any of the following factors EXCEPT

Mental illness

Which of the following is true regarding a term health policy?

It is nonrewable

An insurer invests the money it receives from premiums paid by its insureds. Which of the following is true regarding the interest earned on these investments?

It is used to lower premiums

A Louisiana insurance company ran advertisement in June 2008. When could the company discard the file on this advertisement?

June 2012

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the

Notice Regarding Replacement

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are

Tax Deductible

Which of the following may NOT be included in an insurance company's advertisement?

That its policies covered by a state Guaranty Association

Which is true about a spouse term rider?

The rider is usually level term insurance

Variable life insurance is based on what kind of premium?

Level fixed

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

joint and survivor

In reference to the Standard Medicare Supplement benefits plans, what does the term standard mean?

All providers will have the same coverage options and conditions for each plan.

Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?

Amanda is 67 and is covered by a basic medical expense policy .

Which settlement option provides a single beneficiary with income for the rest of his/her life?

Single Life

Which type of life insurance policy generates immediate cash value?

Single Premium

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days late the applicant had to submit to a medical exam. If the policy is issued, what would the policy's effective date?

The date of medical exam

Which renewability provision allows an insurer to terminate a policy for any reason, and to increase for any class of insureds?

optionally renewable

Which of the following riders would NOT increase the premium for a policyowner?

Impairment rider

Are insurance company underwriters allowed to discriminate?

Yes, but not unfairly