ExamFX Simulation Exam
An individual purchased a $100,000 Joint Life policy on himself and his wife eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000
All of the following statements concerning Accidental Death and Dismemberment coverage are correct EXCEPT
Death benefits are paid only if death occurs within 24 hours of an accident.
Stop-Loss Limit
Is a specified dollar amount beyond which the insurer no longer participates in the sharing of expenses.
An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her medical expenses. What term best describes the condition she has met?
Stop-Loss Limit
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
Taxation on accumulation
Fixed Period Settlement Option
The beneficiary receives regular payments of both principal and interest over a fixed period of time, typically up to 30 years. If the beneficiary dies before the time period is over, the remaining balance may pass to a contingent beneficiary.
What is the purpose of a fixed-period settlement option?
To provide guaranteed income for a certain amount of time
