Insurance Speed Set

A Universal Life Insurance policy is best described as a/an

(ART) Annually Renewable Term policy with a cash value account.

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 Months

The death protection component of Universal Life Insurance is always

Annually Renewable Term (ART)

Which feature on a variable life insurance policy is guaranteed?

Death benefit up to the policy face value

What is considered to be a morale hazard?

Driving recklessly

What is the goal of the HMO?

Early detection through regular checkups

OBRA requires which disease to be covered by an employer for 30 months before Medicare becomes the primary mode of coverage?

End-stage renal failure

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

Is not considered to be an income period

Income Dependency Period.

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity policy

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

In applying for an original certificate of authority, an insurer must submit an application with the appropriate fees and the following information, not requiring

The amount of insurance it intends to write.

The cost of coverage in group life is based on the ratio of

men and women in the group

Who is responsible for the contents of life insurance advertising?

the Insurer

If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must they have earned to receive benefits?

12 credits

The Patient Protection and Affordable Care Act mandates that insurers provide coverage for adult children of the insured up to the age of

26

For a producer to meet the state continuing education requirements, how many CE hours must be completed on the topic of ethics?

3

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Any form of life insurance

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

Is not a Nonforfeiture option

Interest Only option

Policyowner upon their death, wants the life policy to pay a portion of the proceeds annually to their spouse and the principal will be paid to their children when they reach a certain age. Which option is this?

Interest only option

B just bought a new car, which he anticipates will be paid for in 4 years. He also wants to buy a life insurance policy but is financially limited. What Insurance Policy would be best?

Modified Life Policy

Attempting to determine how much insurance a family would require based upon their financial objectives is known as

Needs Approach

An individual buys a flexible premium deferred life annuity with 20 year period certain. What would his beneficiary receive if he died 5 years after beginning the annuity phase?

Payments for 15 years

Which rider would not cause the Death Benefit to increase?

Payor Benefit Rider

What is not one of the goals of a Medicare supplement application?

Presuming the applicant is eligible for Medicaid, based on the nature of the policy

What Policy would be classified as a traditional level premium contract?

Straight Life Policy

Not considered a personal use of life insurance

Survivor Protection

Generally NOT considered when underwriting group insurance?

The insureds' medical history

Regarding Medicare SELECT policies, what are restricted network provisions?

They condition the payment of benefits.

Evaluating information that establishes adverse selection risk is the purpose of which stage of insurance?

Underwriting

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

Universal life

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of premium.

Not a business use of life insurance; funding against

company's general financial loss.

In the event a policy lapses due to nonpayment of premium, within how many days would the policy be reinstated once the outstanding premium is paid?

45 days

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

A producer has become disabled. In order to keep his business going, what may his designee do?

Obtain a temporary license

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating.

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

When an employee is still employed upon reaching age 65 and eligible for Medicare, what is the employee's option?

Remain on the group health insurance plan and defer eligibility for Medicare until retirement

Under the Fair Credit Reporting Act, if the consumer challenges the correctness of the information contained in his/her report, the reporting agency must

Respond to the consumer's complaint.

Minimizing the insured's level of liability in the event of loss, is not a goal of

Risk Retention