last chance to get it right before the big day
What percentage of individually owned disability income benefits is taxable?
0%
Insurers must screen all marketing plans to ensure that an advertisement does NOT use as the name of any kind of an annuity contract any phrase that
Does not include the word annuity unless accompanied by other clear language indicating it is an annuity
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 employee's expense
The MIB was created to protect
Insurance companies from adverse selection by high risk persons.
Variable insurance and variable annuities are regulated by
SEC, FINRA and Dpartments of insurance
Basic Medical Expense does not cover
Surgeon's Services
In adjustable life policy, the policyowner can not change
The type of investment
what happens when a policy is surrendered for its cash value
coverage ends and the policy can not be reinstated
with Equity index annuities , the annuitant
does not receive a fixed amount of return
Contract of Adhesion
policies are submitted to the insurer on a take it or leave it basis
The longer the elimination period
the lower the cost of coverage.
For how long are insurers required to maintain records pertaining to life insurance solicitation?
3 Years
If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?
A full death benefit
Which of the following would have an IRS required corridor or gap between the cash value and the death benefit
Universal life- option A
is it true that equity indexed annuities
earn lower interest rates than fixed annuities
An adjustable life policy can assume the form of
either term insurance or permanent insurance
Under which of the following conditions would life insurance proceeds be taxable by the federal government?
if there is a transfer for value
Define twisting
is when the producer makes an unfair policy comparison in order to get the insured to lapse 1 policy and purchase a new policy with another insurer
Why is an equity indexed annuity considered to be a fixed annuity?
it has a guaranteed minimum interest rate
An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?
no benefits
What is the best reason to purchase life insurance rather than an annuity?
To Create an Estate
what is incorrect about the required provisions of a health insurance policy?
A Reinstated policy provides immediate coverage for an illness
If an applicant intends to replace any existing accident and sickness policy with a Medicare supplement policy, what must the agent furnish to the applicant?
A notice regarding replacement
When an insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase
Aleatory
Exchange of unequal value
a policy will pay the death benefit if the insured dies during the 20 year premium paying period, and nothing if death occurs after the 20 year period. what type of policy is this?
Level Term
Which of the following settlement options in life insurance is known as straight life?
Life Income
The interest credited under accumulation at interest is
TAXABLE
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
The Insurer
The annuitant dies while the annuity is still in the accumulation stage. what is going to be true?
The beneficiary will revive the greater of the money paid into the annuity or the cash value
Tax advantage of qualified retirement plan
The earnings in the plan accumulate tax deferred
What is not a feature of a noncancelable policy
The insurer may terminate the contract only at renewal for certain conditions
Under a Key Person disability income policy, premium payments
are made by the business and are not tax deductible
The payment of premium is considered what of the applicant
payment of premium is considered the consideration given from the applicant
What best details the underwriting process for life insurance?
select, classification and rating of risk
The Term " Illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
Under workers compensation, which of the following benefits are NOT included? -legal benefits , medical and rehabilitation benefits, income benefits, death benefits
Legal Benefits
What is the key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit
Medicaid is funded by
federal and state governments
cash surrender nonforfeiture option
funds exceeding the premium paid are taxable as ordinary income
What is the purpose of requiring licenses for persons who transact insurance
Protect the general public
Standard risk is representative of the majority of people.
The yare the average risk
Unilateral Contract
only one party being legally bound by the contract
the annuitant dies while the annuity is still in the accumulation stage
the beneficiary will receive the greater of the money paid into the annuity or the cash value
Group accident and sickness policies in Georgia have a grace period of
31 days
What happens to the face amount of a whole life policy if the insured reaches the age of 100
The face amount is paid to the insured
Corridor of Insurance
protection to keep the policy from endowing
Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?
they are tax tree to terminally ill
Which health insurance provision describes the insured's right to cancel coverage?
Renewal provision
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
must be informed of the course of the report
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
an insured recently discovered that the interest rate on his policy loan once again increased. what is the shortest amount of time that could have passed since the last change in the insured's interest rate?
3 months
what is not a requirement for life insurance illustrations
They must be part of the contract
If the proposed insured makes the premium payment on a new insurance policy.. and the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. this is an example of what kind of contract?
Conditional
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
Death Benefit
to be eligible for a health savings account, an individual must be covered be a
High Deductible health plan
Basic Medical expense coverage offers a wide range of limited benefits that
result in high out of pocket costs
HMOs are known as what type of plans?
service
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
In order to maintain coverage under cobra, how soon from termination of employment must an employee exercise extension of benefits?
60 days
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which of the following terms will be permissible in describing a life insurance policy in company advertisements?
Variable Plan
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
immediately
The life income option, also known as straight life, provides the recipient with an
income that he or she can not outlive
what is not a Medicaid qualifier
insurability