Insurance

A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability?

Business overhead expense policy

All of the following are true about group disability Income insurance EXCEPT

Coverage applies both on and off the job

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed Period

Concerning Medicare Part B, which statement is INCORRECT?

Fully funded by social security taxes(FICA)

As it pertains to group health insurance, COBRA stipulates that

Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.

In life insurance policies, cash value increases

Grow tax deferred

Most LTC plans have which of the following features?

Guaranteed renewability

Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose

HR-10 (Keogh Plan).

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring Clause

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

Premium payments for personally-owned disability income policies are

Not tax deductible

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?

Offer the supplement policy on a guaranteed issue basis

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-Up Option

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up Option

Which of the following is NOT true about a joint and survivor annuity benefit option?

Payments stop after the first death among the annuitants.

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Refund the premiums paid

Which of the following is NOT provided by an HMO?

Reimbursement

Which of the following insurers are owned by stockholders?

Stock

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate

Which of the following is true regarding elimination periods and the cost of coverage?

The longer the elimination period, the lower the cost of coverage

Which of the following definitions would make it easier to qualify for total disability benefits?

The more liberal "own occupation"

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

What is the timeframe for filing relevant Suspicious Activity Reports?

Within 30 days of initial discovery

The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last

24 months

If an insured's cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement?

5 months

An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay?

5,000

An agent is acting ethically in all of the following situations EXCEPT

Always representing the insured