Final exam attempt three

Under a non-qualified annuity, interest is taxed after the

exclusion ratio has been calculated

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds

will no longer provide insurance protection

An application for individual health insurance must be:

In writing, and normally becomes part of the contract

Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of

100% of costs

Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?

Accidental bodily injury provision

According to life insurance contract law, insurable interest exists

At the time of application

How are annuities given favorable tax treatment?

Gains are taxed at distribution

A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n)

Guaranteed insurability rider, not Guaranteed term rider

Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit?

Increase the premiums on an individual basis

Which of the following statements about long-term care insurance is CORRECT?

Individual long-term care policies must contain a renewability provision on the first page of the policy

What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?

No tax payment needed

Joe is a Medicare participant who receives his benefits through a Managed Health Care Plan. Which Medicare plan does he have?

Part C

Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?

Period certain

Which of the following provides Medicare supplement policies?

Private insurance companies

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

The benefit can be offered as a rider at a specific extra cost or may be at no cost

When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT

obtain the beneficiary's signature on a summary of all policies to be replaced

An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if

the insured outlived the beneficiary