Guarantee Exam 1 - Missed Questions

Conrad receives $50,000 from a $100,000 accidental death and dismemberment policy as a result of the loss of his left arm in an accident. Conrad has received the a. Principal amount b. Capital amount c. Contributory amount d. Primary amount

b. Capital amount

If an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will a. adjust the death benefit to what the premium would have purchased at the actual age or gender. b. Pay the face amount specified at the time of the policy issue. c. deny all claims because of the misrepresentation. d. Adjust the back premiums for the proper age or gender.

a. adjust the death benefit to what the premium would have purchased at the actual age or gender.

If an applicant submits the initial premium with an application, which action constitutes acceptance? a. The underwriter approves the application. b. the applicant submits a statement of good health. c. The producer delivers the policy. d. The insurance company receives the application and initial premium.

a. The underwriter approves the application.

All of the following are advantages of a qualified retirement plan EXCEPT a. The income at retirement is tax free. b. The contribution is deductible to the employer. c. The contribution is not taxable to the employee when made. d. The funds grow tax deferred.

a. the income at retirement is tax free.

Under the common accident provision, how many deductibles would be paid if five family members covered under the same major medical policy are injured in the same accident? a. 1 b. 2 c. 3 d. 5

a. 1

The probationary period is a. A specified period of time that a person joining a group has to wait before becoming eligible for coverage. b. The number of days the insured has to determine if he/she will accept the policy as received. c. The stated amount of time when benefits may be reduced under certain conditions. d. The period of days that must expire after the onset of an illness before benefits will be earned.

a. A specified period of time that a person joining a group has to wait before becoming eligible for coverage.

Decreasing term insurance is often used to a. Cover a mortgage. b. Liquidate an estate. c. Build up cash value for retirement. d. Pay estate taxes.

a. Cover a mortgage.

Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an a. Limited health plan. b. Preferred provider plan. c. coordinated plan. d. HMO group plan.

b. Preferred Provider plan.

Who can request changes in premium payments, face value, loans, and policy loans? a. Producer b. Policyowner c. Beneficiary d. Contingent beneficiary

b. policyowner

A dentist is off work for 4 months due to a disability. His dental assistant's salary would be covered by a. Key employee disability. b. Partnership disability. c. Business Overhead Insurance. d. Disability Income.

c. Business Overhead Insurance.

Variable insurance and variable annuities are regulated by a. NAIC b. SEC and FINRA only c. SEC, FINRA and Department of Insurance d. Departments of Insurance only

c. SEC, FINRA and Department of Insurance

Which of the following is a correct statement about annuities? a. Variable annuities provide minimum guaranteed rate of interest. b. variable annuities place the funds into a company's general account. c. Fixed annuities have the annuitant assume the risks of investment. d. Fixed annuities do not provide protection against inflation.

d. fixed annuities do not provide protection against inflation.