Guarantee Exam

Which of the following best describes a rebate?

A producer returning part of her commission to her client, as an inducement to buy

All of the following information needs to be included on an application for life insurance EXCEPT

Health insurance policies in force

An annuity would normally be purchased by an individual who wants to

Provide income for retirement

There is a 10% penalty on the taxable portion of a deferred annuity when it is surrendered prior to what age?

59.5

If both the primary and contingent beneficiaries of a life insurance policy have died before the insured's death, who will receive the death benefit?

Tertiary beneficiary

The risk selection and classification process is known as

Underwriting

Dennis has a cavity filled. His insurer covers his claim up to a predetermined amount, which is indicated by a fee schedule. Which type of plan does he have?

Scheduled

All of the following are true of credit life EXCEPT

The insured names the beneficiary

Which of the following is required in order for a plan to be qualified?

The plan must be formally written and communicated to the employees

Slippery floors, reckless driving, or providing false information are examples of

Hazards

Regarding major medical plans

Higher stop-loss means lower premium

Insurers CANNOT transact insurance in this state without a

Certificate of Authority

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sound worse that it is. This is an example of?

Defamation

An insurer incorporated under the laws of another state but doing business in this state is considered

Domestic

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

Paid-up additions

If an agent follows the rules and terms of his agent contract, he is exercising his

Express authority

An agent is hand delivering an insurance policy to a policyowner. What must the agent obtain to complete the transaction?

A signed delivery receipt

Every Medicare supplement policy must have a notice to buyer on the front page that states which of the following?

This policy may not cover all of your medical expenses

Partners in a business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. What life insurance arrangement would be most suited for transitioning the business?

Buy-Sell Agreement

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured.

Who would be allowed catch-up contributions?

Individuals age 50 or older

Compared to the cost of individual insurance, the cost of group insurance is generally

Lower

What is a specific requirement regarding the number of employees in a simple plan

No more than 100 employees

What is the tax penalty for withdrawing money from an annuity prior to age 59.5

10%

An employee is on an extended leave of absence when the employer group health plan changes from one carrier to another. before the employee returns to work, what might the employee most likely notice?

Limited Coverage

In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity, annuity benefits would be paid to the

Named beneficiary

How long is a newborn covered without notification to the insurer?

From the moment of birth, and the insurer must be notified within 31 days

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

Intermediate care

Who determines if a particular group of employees can be excluded from group health coverage

The employers

If an annuity has a guarantee minimum interest rate, this means

The interest rate will never drop below the guaranteed minimum

In group health insurance, what is experience rating?

When an insurer uses the experience of the group as a whole to determine the premiums

All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT

An association of 35 people

An employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continues to receive coverage under the plan. Which of the following explains the reason for the continued coverage?

The employee is totally disabled

Which of the following is true regarding a level term insurance policy?

It provides temporary protection

Which of the following best describes pure life annuity?

It provides the highest monthly benefits

An insured purchases a non-participating whole life policy. This policy includes all of the following EXCEPT

Dividends

When agents, brokers, or solicitors handle premiums for an insurer, they are acting in which capacity?

As a fiduciary

If an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will

Adjust the death benefit to what the premium would have purchased at the actual age or gender