Licensing
Funds drawn out of a Modified Endowment Contract are subject to a 10% penalty unless
Distribution is made on or after age 59 and 1/2. Recipient has total disability.
An insurance company declares an overcharge of premiums and returns this overcharge to the policyowner. This is
Dividends
The time between the beginning of a covered disability and the beginning of the benefit payment is called:
Elimination Period
The "deductible" in a long-term care insurance policy is referred to as the __________.
Elimination period - A long-term care insurance policy's elimination period is the number of days that the insured must pay for services out-of-pocket until the insurance coverage begins to pay.
One key policy issue that is NOT associated with NAIC's model contract for Long Term Care insurance is:
Exclusion for Alzheimer's disease.
Tom purchased a permanent life insurance policy with a bonus he received from his employer; his wife is the beneficiary. This is a __________ plan.
Executive Bonus
Social Security disability benefits are available to people who are:
Expected to be disabled for 12 months or longer or the disability will end in death.
Can be found in the buyer's guide
Explanation of Endowment, Term and Whole Life policies.
Rather than declining this category of applicant, the insurance company offers the policy benefits at an increased premium over the standard premium due to the increased occupational or vocational hazard:
Extra
Interest rate is guaranteed. Level benefit payment amount to annuitant for life. Contract must specify a minimum guaranteed interest rate.
FIXED ANNUITIES
Term life insurance should always be used in buy / sell agreements (True/False)
False - Permanent life insurance should be used with buy / sell agreements in order to ensure that the insured will not need to re-qualify for life insurance after a certain amount of time elapses
The medical providers receive a payment that does not exceed their billed charges for each unit of service provided.
Fee-for-service Basis
Agents sales aid and advertising must be pre-approved by the Insurance Department or ALL but ________ could occur.
Fines to the state
Nonrenewable policies provide benefits for a/an __________ amount of time
Fixed
Beneficiary receives a specified amount until there are no more benefits. This option is
Fixed Amount
Guarantees the interest rate paid on the premiums invested and provides payments that do NOT vary from one to another best describes:
Fixed Annuities.
Beneficiary receives a certain amount on a regular basis until there are no more benefits best describes ____________ settlement option.
Fixed-Amount Installments
Principal and interest distributed to beneficiary over a set amount of time, best describes the ____________ settlement option.
Fixed-Period Installments
Purchased with multiple payments. Benefit is not paid out until after more than one year from the annuity purchase date. Owner can utilize different premium payment options. Insurer may have minimum/maximum limits per premium payment. Premium payments and interest accumulate. Payout begins at a chosen Annuity Period date.
Flexible Premium Deferred Annuities (FPDA's)
The annuity where premiums may fluctuate at the owner's choice is called
Flexible Premium Deferred Annuity
The grace period is the time:
Following the premium due date during which coverage remains in full force.
Open Enrollment for Medigap Insurance
For those 65 or older, state and federal laws guarantee that for a period of 6 months from the date you first enroll in Medicare Part B, you have a right to buy the Medigap policy of your choice regardless of your health condition.
A resident license will be void if licensee ceases to be a resident of Louisiana. Licensee must surrender license within how many days by U.S. Postal or in person?
30 days
How many lifetime reserve days does a Medicare beneficiary have for hospitalization?
60
The insurance company has ____ days time to investigate the claim once proof of loss has been received.
60
When hospitalized, Medicare pays all charges for covered hospital services during the first ____ days of a benefit period except for the deductible, which changes annually
60
The monthly disability benefits are generally _____ of monthly earnings
60%
Each person (Medicare Part A) has a lifetime reserve of ____ days which can be used when in the hospital in excess of ____ days, also subject to a coinsurance payment
60, 90
In a contributory plan, what percent of the eligible employees MUST participate in the group coverage plan?
75%
The required proof of loss forms MUST be furnished to the insurance company within ____ days after the date of loss.
90
The Proof of Loss provision states that the insured must provide written proof of loss to the company within:
90 days.
Under the Notice of Claim provision the insured must give written notice of claim to the company within:
90 days.
Rising living costs over a period of years that the disability policy is in force is covered by:
A cost-of-living rider
Recurrent disability refers to
A disability that is the same or related to a previous disability and has the same cause
A Primary Care Physician is
A gatekeeper for the health system.
The underwriting of group dental insurance requires considerations such as:
A probationary period. Limitations on benefits for late enrollees. Usually no conversion privilege.
The owner of a policy can make the beneficiary of policy benefits
A revocable beneficiary or an irrevocable beneficiary
The total transfer of all rights and ownership of a policy to another person or entity best describes _____________ Assignments.
Absolute
A Viatical Settlement is best described as a(an)
Accelerated death benefit
The policy definition which prohibits claims payment if any element of intent or anticipation of possible bodily injury can be shown is:
Accidental injury by accidental means.
The period of time over which premiums are paid into an annuity is known as ___________ Period.
Accumulation
The period of time over which premiums are paid into an annuity. (either in a lump sum or a series of premiums) These payments earn interest, tax deferred, interest usually compounds (interest is paid on interest).
Accumulation Period
The time period in which funds are contributed to an annuity is called
Accumulation Period
Interest earned in an annuity is NOT taxed while in the
Accumulation Phase
Supplemental coverage may be covered with the core benefits of a Medicare supplement policy. These benefits are known as:
Additional benefits
Policyowner may adjust the face amount of the policy. Evidence of insurability may be required to increase death benefits. When premiums paid are more than the cost of the policy, cash value develops.
Adjustable Life
The death benefit cannot be less than the face amount of the policy. The cash value varies on a daily basis.
Adjustable Life
The type of flexible premium policy that can be changed from a term coverage to a permanent coverage without exchanging or lapsing the existing policy is:
Adjustable Life
Individual health insurance, TRUE group insurance covers individuals regardless of:
Age Physical condition
Premiums for annuities depend upon
Age, sex and interest rate expected. Income guaranteed amount and administration cost.
Protects against the outliving one's income.
Annuities are designed to
Designed to protect against the outliving one's income. It is intended to provide income while the person is alive.
Annuity
The period of time over which the accumulated funds in the annuity are paid out in income payments to the annuitant. This may be for a short period of time or for the lifetime of the annuitant depending on the payout method chosen. Taxation occurs at this time
Annuity Period
Annuitant may use an immediate annuity to pay out their IRA benefits. All is taxable if contributed funds werre before tax dollars.
Annuity Phase Benefit Payments
What is required to correct an error on a completed life insurance application form?
Any corrections must have proposed insured's written approval
The insured's inability to perform the duties of any occupation for which he or she is reasonably qualified by education, training or experience is:
Any occupation
In Life & Health insurance insurable interest MUST be established at time of _________; in Property & Casualty insurance it is established at time of __________ .
Application; Loss
Considered tax-free when it constitutes neither gain nor loss. Exchanging an annuity for another annuity. Contracts exchanged must relate to the same insured.
Applies to Section 1035 Exchanges
Single Premium Immediate Annuities
Are purchased with a single lump sum cash payment. Provides income payments that start within one year from date of purchase.
In this type of group policy, a franchise group recognizes the affinity of members of a group in order to provide them with life and health insurance coverage at a lower cost than individual policies:
Associations
Five years after a company denied payment of a health or accident claim, the claimant will probably be:
Barred from bringing legal action against the company.
Routine dental check-ups and x-rays are examples of:
Basic benefits.
Who will have to meet an insurable interest requirement in order for a policy to issue?
Beneficiary
When the age on an application is understated, how are the benefits affected?
Benefits are reduced to the amount premium paid would have bought at the correct age.
The disability policy that covers a fixed period of time and provides funds for outstanding debts if an owner of a business is disabled is
Business Overhead Expense Insurance
Life insurance used for the purpose of contractually establishing the intent to purchase and set a value on a business in the death of its owner, is known as:
Buy-sell agreement
On a health insurance claim form, the exact procedures that were performed for the insured are represented by standard codes that are referred to as __________.
CPT codes - Each CPT also corresponds to one or more International Classification of Diseases (ICD-9) codes. For example, 99214 may be used for a physical and 90658 indicates a flu shot.
Generally most dental plans include limitations on:
Calendar year maximum benefits. Lifetime benefits.
Contributions can continue beyond age 70 and 1/2.
Concerning Roth IRAs
The combination of policy provision and state and federal laws that provide continuation rights to the employee is known as:
Continuation of coverage.
Level premium and face value until age 100 or death of insured with settlement options available to beneficiary upon death of insured would best describe:
Continuous Whole Life.
A level premium and face value until age 100 or death of insured best describes
Continuous life
A contract prepared by one party and accepted as is by the other party best describes a/an
Contract of Adhesion
The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be __________.
Contracts of Adhesion
A group coverage when the employee pays a portion of the premium is a:
Contributory plan
This gives the employee the option to convert group coverage to an individual policy without insurability.
Conversion Privilege
The option to convert term policy to permanent status without proof of insurability is
Convertibility
This provision prevents claim payment by group insurance carriers in excess of the actual amount of the claim (i.e. working couple with two coverages):
Coordination of benefits.
A __________ is the amount that an insured person is expected to pay for a medical expense at the time of the visit.
Copayment
On ________ annuities purchased after February 28, 1986, interest earnings are taxed as earned
Corporate Owned Annuities
On annuities purchased after February 28, 1986, interest earnings are NOT tax deferred, they are taxed as earned applies to
Corporate Owned Annuities
The Interest Adjusted Net Cost (IANC) is a:
Cost comparison method comparing similar permanent life insurance policies.
In the case that a Medigap policy is replaced by another group Medigap policy, the new policy MUST:
Cover all persons covered by the old Medigap policy.
Permanent life insurance policies always have two components. What are they?
Death benefit Cash value
The risk categories NOT issued a policy based on the collected information gathered:
Declined
The Change of Occupation provision provides that if the insured changes to a less hazardous occupation, then the company will:
Decrease the premium.
A home mortgage cancellation term policy is an example of a/an:
Decreasing Term
Adjustments usually made to a Universal Life contract cash value account on a monthly basis are:
Deduction of insurance company investment losses
Adjustments usually made to a Universal Life contract cash value account on a monthly basis are:
Deduction of insurance company investment losses.
The main benefits from participating in group or individual qualified retirement plans:
Deductions on current income. Deferred taxes.
May be purchased with a lump sum. May be purchased with periodic payments. Are Tax Deferred.
Deferred Annuities
may be purchased with either a single lump sum or purchased with periodic payments. Income payments to the annuitant may start sometime after one year from annuity purchase date. Are tax deferred and most often used to accumulate and grow funds for retirement. Principal and interest accumulate. At Annuity Period date, payout to annuitant begins.
Deferred annuities
Moving funds from one qualified retirement plan and directly placed into a new qualified retirement plan is called
Direct Rollover
Buy-sell Policy (Premiums & Taxation)
Disability insurance covering an officer or partner that provides funds for buying the business interest of the disabled officer/partner. Premiums paid are not tax deductible; Benefits received are not taxable.
Key Person Disability Income (Premiums & Taxation)
Disability insurance purchased to cover a key employee if that person should become disabled. Premiums paid are not tax deductible; Benefits received are not taxable.
Business Disability Insurance (Premiums & Taxation)
Disability policies that are bought by the business for business reasons have a general rule: If the business takes a deduction for the premiums paid, they will pay taxes on the benefits.
Corrections of teeth irregularities such as braces fall in the category of:
Orthodontics
An Insurance Department approved _________ MUST be given to the insured at the time that the application is taken.
Outline
Term used to describe situation where policies with different companies cover the same expenses:
Overinsurance
As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefits triggers for the policy holder in terms of benefit receipt if the insured were to break their hand?
Own occupation
A Viator describes the:
Owner of a life insurance policy insuring a person with a life-threatening illness.
Has selection of payment plan. Change of beneficiary may be made. Modifications/amendments to policy may be made.
Ownership Provision
An arrangement by a selected group of hospitals and medical practitioners in a certain area who agree to provide medical services at a prearranged cost. This best describes a/an:
PPO
The jurisdiction where regulations would apply for companies who solicit from out of state is considered to be:
Place of delivery.
A document explaining to the insured the contract being considered is the
Policy Summary
Inflation protection guarantees
Policy benefits will increase to keep the benefits paid out in line with inflation increases. Policy benefits will increase by 2% or 3% per year. Requires an additional premium to be paid.
The risk classification for an applicant who has lower than average risk factors, entitling the applicant to a lower rate for benefits, is:
Preferred
The "consideration" for the benefits of the policy is also known as:
Premium
An owner surrenders a deferred annuity during the accumulation period. The owner would receive their
Premium, plus interest, less a surrender charge.
Medical Expense Insurance (Premiums & Taxation)
Premiums are not tax deductible unless the totals of premiums and expenses exceed 7.5% of taxpayer's adjusted gross income. Then the taxpayer can deduct the excess over this threshold. Benefits are not taxable.
Disability Income Insurance (Premiums & Taxation)
Premiums are not tax deductible. Benefit payments from the policy would not be taxable income if premiums are paid by the individual.
Long Term Care Insurance (Premiums & Taxation)
Premiums paid are not deductible unless they are paid after 1996 and are in excess of 7.5% adjusted gross. Again, only the excess is deductible. Benefits not taxed by the government.
Medical and Dental (Premiums & Taxation)
Premiums paid by the employer are a deductible business expense and are not considered taxable income to the employee. Benefits received by employee are not taxable income unless benefits exceed the actual medical expenses.
Disability Income (Premiums & Taxation)
Premiums paid by the employer are a deductible business expense and are not considered taxable income to the employee. Benefits to the employee are fully taxable as income.
Long Term Care Insurance (Premiums & Taxation)
Premiums paid by the employer are a deductible business expense and is not taxable income to the employee. Benefits received by employee are not taxable
Accidental Death and Dismemberment (Premiums & Taxation)
Premiums paid by the employer is a deductible business expense and is not taxable income to the employee. Benefits are received income tax free by the employee.
Used in service type plans where services are guaranteed.
Prepaid Basis
describes designated succession options a policyowner has as to whom and how proceeds will be paid at death
Primary, Contingent and Tertiary
When an insurer cancels a policy, it refunds premiums calculated on what basis?
Pro rate
Which part of the application does the agent express personal observations about the proposed insured?
Producer's report
(Before) The precertification process prior to hospital admittance. Is the hospitalization and surgery really needed, or is there a less expensive way to provide treatment.
Prospective Review
Dentures are an example of:
Prosthodontics
The main purpose of the Fair Credit Reporting Act of 1970 is to
Protect individual's right to privacy
Statements made by the applicant that the applicant believes to be TRUE are:
Representations
Occurs after treatment to identify unnecessary costs that were incurred relating to the diagnosis and treatment received by the insured.
Retrospective Review
If the owner of the policy changes the beneficiaries without their consent, they are considered:
Revocable
The policyowner may change a ____________ designation at any time, without the consent or knowledge of the beneficiary
Revocable
Types of Beneficiaries are
Revocable & Irrevocable
The policy provision that allows policyowners 10 days from receipt to examine policy and still return it for a full premium refund if dissatisfied.
Right to Examine
The 10 day period (also termed "Free Look") which gives the insured the right to review the policy is known as:
Right to examine
In a disability policy, which factor is the underwriter concerned with regarding an applicant's occupation?
Risk of disability
Reinvesting funds from one IRA to another while sheltering those funds is called
Rollover
a basic medical expense policy covering hospital room and board, miscellaneous hospital costs and surgical expense is not as broad in coverage as a major medical plan.
Specified coverage
The clause which prohibits the beneficiary the right to Assign, Commute, Encumber his/her interest in the policy proceeds is
Spendthrift Clause
When the dental plan is separate from the medical and different and separate deductible clauses apply to dental expense claims, the plan is considered:
Stand-alone
The applicant for insurance who qualifies for the company's standard rates based upon the present normal hazards, age, health, and occupation of the insured is considered:
Standard
An explanation of the rights and characteristics of an insurance contract best describes:
Standard Provisions
Employers are responsible for bodily injury and occupational injury medical bills incurred by employees as a result of their employment under the jurisdiction of:
State law
When the insured guarantees that his/her health status has NOT changed between the time of the application and policy issuance, this is known as:
Statement of good health.
A qualified plan for employees of non-profit organizations and employees in public education best describes:
Tax-Sheltered Annuities (TSAs)
Interest accumulated in the accumulation period are tax deferred
Taxation of Non-qualified individually owned Annuities
Carryover hours are allowed for each licensing period
Ten (10)
Type of insurance that: is written for a specific time. provides temporary protection. Gives more protection at the least cost.
Term Insurance
Jack and his wife Lyn just purchased a home with a 15-year mortgage. Wanting to make sure that Lyn would be able to pay off the mortgage balance in the event of Jack's death, Jack had a "temporary" need for life insurance. What type of policy should Jack purchase?
Term Life Insurance
What constitutes an entire insurance contract?
The Policy A Rider The Application
What is the correct standard procedure for replacement of a policy?
The agent must acknowledge, the insured must sign the acknowledgement, and the replacing company whose policy is being replaced must be contacted.
Return of Premium (taxation)
The premium is high and not taxable.
Corporate owned life insurance proceeds may be used for
To find, replace, and train a new employee or executive To fund other corporate debt obligations To redeem the deceased employee's stock
The insured and the primary beneficiary are in the same accident; insured dies first, primary beneficiary dies second, two days later. The proceeds will go
To the contingent beneficiary
The policy covering injuries resulting from travel or common carriers such as planes or buses is called:
Travel accident.
When soliciting prospective buyers of insurance, agents are governed by rules and regulations referred to as:
Unfair Trade Practices
A flexible premium, adjustable life insurance contract that accumulates cash value is called:
Universal Life Policy
Flexible premium. Adjustable benefits with cash values. Pays a death benefit.
Universal Life characteristics
Allows the insurance company to deduct from a claim payment any due or past due premiums as part of settling the claim.
Unpaid premium
The term describing the situation where an insured is NOT able to convert the group coverage to an individual policy upon termination of employment is known as:
Usually no conversion privilege.
This type of life insurance is considered to be more risky based on its investment component
Variable Life Insurance
A securities and an insurance license is required to sell which of the following flexible life policies?
Variable Life.
Market sensitive Life Insurance and Annuities where there is potential for either gain or loss without guarantee of performance best describes:
Variable Products
Under Social Security, the definition of the insured's ability to work at any occupation is:
Very restrictive
A person/company that purchases a Viator's insurance contract is called a:
Viatical Provider
A disabled policyowner is exempt from paying premiums during time of disability with policy still in force is known as:
Waiver of Premium
Concerning Group Standard Provisions, death benefit proceeds are paid to
a designated beneficiary
Master policy is issued to one person. Covered must have some common interest, i.e. same employer. Each state mandates minimum number to be considered group plan.
examples of a group contract
Denial of claim Termination of policy Benefits payable
examples of required notice to insured
A Chief Deputy Commissioner
is appointed by the Commissioner as an assistant who may take over in the Commissioner's absence.
If Part B Medicare is not put in force at age 65...
it can be put in force during the Part B general enrollment period that runs from January 1 to March 31. During this period, Medigap coverage would also become available for enrollment.
Prior to the use of or changes to any trade name or names, an insurance producer or surplus lines broker shall
provide written certification to the Commissioner
The ____________ clause excludes all cases of death while the insured is on active duty in the military.
status
If a nonapproved trade name is utilized for 10 or more days after being notified by the Commissioner to cease
the producer will be subject to an additional fine not to exceed $5,000
A business client is looking for ways to decrease its monthly premiums. To get down to the premium level sought after by the company, the agent realizes they have to go to a high deductible health plan. As part of your advice to the business, what should you include in your discussion?
HSA
The Reinstatement provision gives the insured the opportunity to:
Have a lapsed policy reinstated if the company chooses to do so.
Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors can include:
Health history Occupation Hobbies
Skilled Nursing Facility
Helps to cover post-hospital fees in a participating skilled nursing care facility
A public or private agency that provides skilled or therapeutic services in the home usually on a part time basis is called:
Home health care
Medicare Part A offers four different coverages:
Hospitalization Skilled Nursing Facility Care Home Health Care Hospice Care
A contract under which one party undertakes to pay another against loss of a specified contingency or peril
Insurance
When agents break guidelines published by the Louisiana Insurance Department on advertising, who is held responsible?
Insurance company
When an agent is in non-compliance with state insurance regulations, who is held responsible to the Insurance Department?
Insurance company
The purpose of the Time Limit on Certain Defenses (Incontestable) provision is to limit the time during which the:
Insurance company can challenge the policy based on misrepresentation or concealment on the application.
Usual, Reasonable and Customary Charges (URC)
Insurance policy pays surgical costs on the basis of what is usual, reasonable, and customary in a geographic area. Insurance company reserves the right to agree or disagree as to what is URC. Usually found in major medical policies.
According to other insurance in this insurer, the excess premium being paid by the insured for the excess coverage would be refunded to the:
Insured
The role of the annuitant/owner in an annuity contract is similar to the role of the ____________ in a life insurance policy.
Insured
Parties to a life insurance contract
Insured Beneficiary Underwriter
Life insurance policy proceeds would be included in insured taxable estate when
Insured is owner of the policy. Insured's estate is the beneficiary of the policy. Insured transferred ownership of the policy within three years prior to insured's death.
Payment of claims provision allows the insurer to pay policy benefits to whom, unless the insured directs otherwise?
Insured's estate
A(n) __________ in an insurance contract is a statement by the issuing insurance company that sets out the essential element of insurance - to pay for losses covered in the policy.
Insuring clause
The insurer's general agreement to provide coverage is known as:
Insuring clause.
Taxation of Non-qualified individually owned Annuities
Interest accumulated in the accumulation period are tax deferred
A beneficiary receives benefits in payments of principal and interest (what's taxable?)
Interest only is taxable
Of the following, which is TRUE concerning beneficiary installment payments of principal and interest from death benefits?
Interest portion of payment is taxable
The report in which the applicant gives the insurance company the right to request information from a credit bureau or other type of agency for the purpose of developing financial and/or lifestyle information about the applicant is:
Investigative Consumer report
According to the NAIC model, the ____ plan would be the MOST expensive Medigap plan
J
Which specialized policy pays, upon the death of the first person, the face amount of the policy?
Joint Life Policy.
The first annuitant dies, then the survivor continues to receive the same benefit amount as original payments. This is
Joint and Full Survivor
Designed to protect against financial loss of an insured dying prematurely, providing survivors with a "cash estate". It is intended to provide income for a person's survivors (beneficiaries).
LIFE INSURANCE
Deals with a set of relationships where one person is authorized to act on behalf of another in order to create a legal relationship with a third party
Law of agency
If an insured is receiving disability income, the amount is generally:
Less than regular salary
A term policy that provides a level premium and a level death benefit during the entire term of the policy best describes
Level Premium Term
Two types of death benefits under a universal life policy are:
Level death & Increasing death benefit.
Conserve an estate. Create an estate.
Life insurance
The term defining the encouragement of early enrollment and the beginning of premium payments that provide the resources to pay claims is:
Limitations on benefits for late enrollees.
Medigap policies may NOT contain:
Limitations or exclusions on coverage which are more restrictive than those of Medicare.
Travel Accident Insurance is an example of a _________ policy.
Limited
The shorter the premium-paying period the higher the annual premium payment would best describe:
Limited Payment Whole Life.
Policy language that limits the payment of claims to perils normally "named" in the policy is:
Limited Perils and amounts
A rider that allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?
Living benefit - The death benefit proceeds on the policy will be reduced by the amount that is accessed by the insured.
Basic dental services include
Local anesthetics Protective fluoride treatments. Diagnostic x-rays
Policy will have a specific waiting period before payment begins. Policy will have a defined benefit period for payment of benefits. Policy provides weekly or monthly income benefits.
Loss of Income from Disability
All of the following factor(s) determine policy premiums EXCEPT a.Mortality b. Interest c. Expense d. Marital status
Marital status
Dividends on personal life insurance
May be left with insurer to accumulate interest. Collecting interest subject to taxation each year interest is earned.
Tom retires and starts receiving income from a variable annuity. The value of the annuity units assigned to his account:
May fluctuate from payment to payment.
Concurrent review Prospective review Retrospective review
Medical Case Management Types
The insurance company can ask for current medical information by means of a current medical examination by one of their appointed medical examiners by use of:
Medical questionnaires and examinations.
The Federal Government's health insurance coverage which provides benefits for hospital and physicians charges to those over 65 is:
Medicare
federally administered insurance program and is part of the Social Security program.
Medicare
provides hospital and medical expense insurance protection to those aged 65 and older, or suffer from chronic kidney disease, or have become entitled to disability benefits under Social Security
Medicare
Medicare Plans that offers extra coverage, such as vision, hearing, dental, and/or health and wellness programs.
Medicare Advantage Plan
The plan provides all of Part A (Hospital Insurance) and Part B (Medical Insurance) coverage
Medicare Advantage Plan
prescription drug coverage is insurance run by an insurance company or other private company approved by Medicare. Plans vary in cost and drugs covered.
Medicare Part D
Sometimes called "PDPs") add drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private Fee-for-Service (PFFS) Plans, and Medicare Medical Savings Account (MSA) Plans.
Medicare Prescription Drug Plans
Two ways to get Medicare prescription drug coverage
Medicare Prescription Drug Plans Medicare Advantage Plans (Part C)
Life insurance contracts which do NOT pass the 7-Pay Test are:
Modified Endowment Contracts
A special class of life insurance policies defined by the tax act of 1988 - TAMRA refers to:
Modified Endowment Contracts (MECs)
There MUST be a _________ of Long Term Care insurance coverage if it is recommended to a person.
Need for coverage
In calculating the amount of life insurance, the money needed to generate sufficient income for a family's normal standard of living is called:
Needs approach
A premium based on mortality rates and assumed interest best describes:
Net Single Premium
A premium calculated on the basis of a given mortality table and a given interest rate, without any allowance for loading is
Net single premium.
In Pure Life Annuity, after the annuitant dies further payments go to
No future payments are paid.
A person having an employer provided group health coverage continued past age 65, whether working or retired, has the advantage of:
No waiting periods. Usually lower group premium rates.
This provision in the replacing policy that an insured member's existing claim would be paid by the new company without loss and without gain as compared to the replaced coverage is known as:
No-loss and No-gain.
As a marketing tool, Ted, a health insurance agent, offered to send an applicant and his wife on a weekend vacation to a local resort to induce the applicant to purchase a policy. Is this practice permitted and, if not, what is it called?
No; Rebating Rebating is the act of offering an applicant an inducement to purchase insurance. It is prohibited as an unfair trade practice. Another example would be returning a portion of the applicant's policy premium from the agent's commission.
An agent is in need of generating business. He gets an idea of asking his client to let his policy lapse so that the agent can sell him a new similar policy. Is this permissible and, if not, what is this action called?
No; Twisting Twisting involves an agent suggesting that an individual let their current insurance coverage lapse in order to purchase a new policy, typically with similar benefits. It is a prohibited activity. In this case, the new policy does not necessarily benefit the client, however, the agent will likely receive a commission on the sale of the new policy.
An owner is entitled to the cash surrender value whether policy is lapsed or surrendered. This is known as
Nonforfeiture
Guaranteed surrender cash value. Occurs when surrender of annuity is prior to annuitization.
Nonforfeiture and Deferred annuities
A plan of insurance under which the insured is NOT entitled to share in the divisible surplus of the company is
Nonparticipating
The three major risk types involved in underwriting criteria
Occupational risk, moral risk, physical risk
Income payments to the annuitant from an immediate single payment annuity generally begin
One month from purchase date.
Louisiana Health Insurance Association pays a MAXIMUM of ________ per participating person per year, with a MAXIMUM lifetime benefit of ________ per participating person.
$100,000; $500,000
The funds that are taxed on a contract's equity when the policy is surrendered is known as
Cash Value
At what point MUST a limb be severed to qualify as dismemberment?
At or above the main joint where it is attached to the body.
Also known as scheduled plans, benefits in this type of plan are limited to specified MAXIMUMS per procedure with first dollar coverage:
Basic plans
An outline of coverage MUST be presented to the applicant:
At the time that the application for the policy is presented
A free-look policy ensures that the policy can:
Be returned and receive full return of any monies paid in premium for a set length of time.
Considered "personal interest" and is subject to taxation
Dividends
Has to have an insurable interest for an underwriter to issue an insurance policy
Beneficiary
An exclusion of loss payment is utilized if insured is injured while:
Under influence of alcohol.
Nursing home care Home health care Intermediate/custodial needs
Long Term Care
If a patient wants to go outside of the network for services when enrolled in a PPO, what happens?
Patient pays the difference between the two prices.
When the insurance company receives the required Notice of Claim, the insurer MUST provide proof of loss forms within:
15 days
Beyond ____ days, there is no coverage for hospital charges in Medicare.
150
Under COBRA, companies that regularly employ more than 20 employees MUST offer a continuation of the group health coverage at group rates for up to:
18 months
Home health - Medicare pays _____ of approved amount; _____ of approved medical equipment like hospital beds and wheelchairs.
100%, 80%
A patient must pay the full cost of Skilled Nursing Facility care after how many days of such care?
100
Every insurance licensee must notify the Commissioner of any alteration in his or her residence or business address within
10 days (Failure to file will result in a $50 penalty per violation. Due notice will be given and the licensee may apply for an entitled hearing)
Grace Period provision provides
10 days for a policy with a monthly premium mode 7 days for a policy with a weekly premium mode. 31 days for policy with an annual premium mode.
The person(s) named to have received benefits from an insurance policy upon death of insured is known as the
Beneficiary
The policy becomes incontestable after ____ years from the date the policy is issued.
2
A license is issued for a period of
2 years
Medicare Part A automatically covers the first _____ days while in a skilled nursing facility
20
Under COBRA, companies that regularly employ more than _____ employees MUST offer a continuation of the group health coverage at group rates for up to 18 months
20
The Employee Group Health Plan (EGHP) would be the primary payor for up to _____ months in the case of an employee with kidney failure.
21
continuing education needed to renew a producers license
24 hours
How many hours needed to renew a producers license
24 hours of continuing education
Skilled Nursing Facility Care requires prior hospitalization of _____ consecutive days; subject to a deductible; enter a Medicare approved facility within ______ days
3, 30
Medicare policies contain a _____ day free-look provision.
30
Medicare supplement policies must contain ____ day free-look provision
30
The Commissioner of Insurance is elected statewide every
4 years
Under the Reinstatement provision, the insurer has ____ days to notify the applicant of a denial or the policy is automatically reinstated.
45
Social Security disability benefits are available to people who are totally and permanently disabled for at least ___ months.
6
The waiting period for social security disability is:
6 months
Offered by private companies approved by Medicare
A Medicare Advantage Plan
Life insurance policy proceeds would be taxable if
A beneficiary is paid a lump-sum
basic medical expense policy covers
All out of hospital expenses.
The National Association of Insurance Commissioners (NAIC) has published a model regulation Medicare Supplement Policy that requires:
All policies have a set of basic core benefits.
Purpose of Medigap Policies
Although Medicare provides extensive coverage for hospital and doctor services, the patient could still be left with large medical bills to pay due to deductibles, coinsurance, non-covered expenses or excess physician charges for services.
An applicant MUST be given ___________ when the application is taken.
An outline of coverage.
The individual who receives the benefits from the annuity and whose life the annuity contract is issued is called the
Annuitant
The amount contributed by an individual to a traditional IRA:
Can be deducted from their annual gross income.
State Law as well as the NAIC Model Life Insurance Solicitation Regulations, requires producer to provide all prospective buyers a _____________ before accepting a premium or deposit.
Both Policy Summary and Buyer's Guide
Whole Life Insurance
Builds cash value; lifetime protection; endows at age 100
(During) Occurs during and concurrent with the hospital confinement of the insured. The type and level of care are monitored in order to keep cost down.
Concurrent Review
The amount contributed by an individual (not covered by an employer-sponsored retirement plan) to a traditional IRA
Can be deducted from their annual gross income. Will lessen their taxable income.
Concerning Group Standard Provisions, insurer gives policyholder an individual ____________ for each insured employee.
Certificate
Permanent protection. Builds cash value. Provides life time protection.
Characteristics of Whole life
When the insured changes to a more hazardous occupation after the policy is in force, what happens when a claim is made?
Claim is paid on a reduced basis calculated from the amount of coverage the premium would have paid for considering the greater hazard.
MINIMUM standards and advertising campaigns are set and regulated by the:
Commissioner of Insurance
A form of premium determination based on pooling the loss experience of ALL the groups/individuals in a defined geographic area is known as:
Community rating
A receipt where coverage is effective the latter of date application was signed or date of medical exam, conditioned upon insurability of applicant.
Conditional Insurability
When the premium accompanies the application, the coverage is in force from date of application, provided the insurer would have issued the coverage on the basis of facts stated in the application. This is called:
Conditional receipt
A provision stating that any part of a policy conflicting with state of insured's residence statutes is automatically amended to agree with that state's MINIMUM requirements is called:
Conformity with state statutes provision
An exchange of something of value on which a contract is based is:
Consideration clause.
A type of income disability policy used by lenders of money is called
Credit Disability
Premiums on this type of group coverage are often paid as part of a tuition fee, loan payment, credit card payment and are often determined by the number in the group:
Customer groups
Withdrawals from the IRA prior to age 59 and 1/2 years is considered a premature distribution, EXCEPT in cases of
Death Disability Results of a divorce decree
A beneficiary on a life insurance policy will receive what value upon the death of the insured?
Death Benefit - The death benefit is the amount that is paid to the policy beneficiary upon the death of the insured. Should a permanent life insurance policy holder decide to cancel the policy prior to the insured's death, they will receive the amount of the cash surrender value.
What is the most common component in all life insurance policies?
Death Benefit - all policies possess a death benefit
What is the type of loss that pays only for dental work?
Dental Expense
Part B provides five kinds of medical services:
Doctors Services/Medical Expenses Clinical Laboratory Services Home Health Care Outpatient Hospital Treatment Blood (except for the first three pints)
A death benefit is twice the face amount. This rider is known as
Double Indemnity
Coverage provided for "named" diseases such as cancer, polio, etc, is called:
Dreaded disease
A root canal is an example of:
Endodontic
In Health Insurance, the Reinstatement provision specifies the procedures to be followed after the:
Grace period has ended.
Premiums are paid or shared by employer. Employee may convert to an individual policy upon termination of employment. Average age determines cost of premiums.
Group Life
In regards to the purchasing of such Medicare supplements, it is the general policy of state and federal laws to:
Guarantee that for a periiod of 6 months after the date first enrolled in Medicare Part B you have a right to buy the Medigap policy of your choice regardless of previous medical conditions.
Current rate of interest credited to a universal life policy consists of:
Guaranteed rate plus excess interest.
Emphasizes preventive care. Provides financial costs and medical care. Can be for-profit or not-for-profit
HMO Characteristics
Member uses a primary care physician. Choice of physician limited to HMO approved member physician. Member must be referred by their primary care physician to see a specialist.
HMO Characteristics
A group policy provision that prevents an insurer form denying a claim due to statements in an application after the policy has been in force for two years, EXCEPT for non-payment of premiums, best describes
Incontestability
Return of Premium
Increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid.
Evidence of insurability is required. Cost of the plan is determined by the individual's age. Has a 30 day grace period.
Individual life insurance
Dick has an insurance plan where the cost was determined by his age, he received a personal policy, and had to have a medical exam. He purchased a(an)
Individual policy
A debit agent sells a $1000 policy; no medical exam is required, premiums are collected weeklyl This best describes
Industrial policy
The Louisiana Life and Health Insurance Guaranty Association is an entity created by the Louisiana Legislature to handle:
Insolvency
When the original annuitant dies, the same income will continue to the beneficiary until the annuity fund is paid out. This is known as a(an)
Installment Refund Option
To purchase life insurance, the buyer MUST establish __________ in the life being insured
Insurable interest
Why would an employer purchase a long term policy for a key employee?
It is too expensive for the business to pay out of pocket.
Minor may take over policy at age 21. Policy face amount jumps in value when insured reaches age 21. Proof of insurability is not needed.
Jumping Juvenile Policy
A pension plan for business that consists of self-employed, sole proprietorships or partnerships with or without employees best describes a
Keogh Plan
Life insurance used to insure an executive with the business as the beneficiary of the policy is known as:
Key person
A business is the policy owner and the beneficiary would best describe what type of insurance policy?
Keyperson
At the end of the grace period, a health policy:
Lapses.
What type of notice is used to show all of the services or supplies that were billed to Medicare during a 3-month period, what Medicare paid, and what the patient may owe the provider?
MSN
Policyholders receives a dividend which is legally defined as a refund of overcharge on premiums. This would describe which of the following
Participating Policy
Formula for Gross Premium
Mortality - Interest + Loading = Gross Premium
Formula for Net Premium
Mortality - Interest = Net Premium
Small employers who do NOT have enough employees to qualify for an individual group plan may obtain this type of policy through some type of business association membership:
Multiple-Employer Trusts (METS)
If a group Medigap policy is terminated and NOT replaced with another group policy, the insured:
Must be offered an individual policy.
One of the functions of the agent is to assist the applicant in filling out the insurance application. This is known as:
Nature and purpose
Jake, after 2 1/2 years of being disabled, is able to work part-time earning 1/3 of his annual salary when he was fully employed. Jake is classified as __________ disabled.
Partially
When benefits are paid out to the beneficiary in a lump sum (taxable or not taxable?)
Not Taxable.
If engaging in an illegal occupation that causes loss, the insurer is _________ for a claim payment.
Not liable
The health insurance provision that specifies a time limit for the insured to tell the company of a claim.
Notice of Claim
Upon the death of the insured, an accidental misstatement of insured's age was revealed on the application. The insurer:
Pay the claim based on what the premiums paid would have purchased at the corrected age of insured.
A lapsed policy may be reinstated if the insured:
Pays past due premiums.
While the insured is alive, the insurance company can require:
Physical examinations
The instances which are precluded from reimbursement due to medical conditions that the insured had incurred prior to date of coverage are known as:
Pre-existing conditions.
Concerning Classification of Risks, individuals considered exceptionally good risks would be classified as:
Preferred
Medicare Select operates on a _________ basis.
Preferred provider basis.
Plans that meet specific requirements determined by the federal government making these plans eligible for favorable tax treatment are known as:
Qualified Retirement Plans
Concerning a group policy for employees, the employer:
Receives and holds the policy. Remits premiums. Advise insurance company of terminated employees.
What step MUST be taken for an insurer to cancel a cancellable policy?
Refund pro rata unearned protion of premium paid.
The dollar amount of payments an annuitant receives from a fixed annuity is liable to
Remain the same.
The option to renew a term guaranteed policy on the renewal date without proof of insurability is
Renewability
It contains an option to renew the policy on the renewal date; Death benefit remains level; Premium increases.
Renewal Term
The legal act of substituting one life insurance policy with another is:
Replacement
When an agent collects an initial premium and gives a receipt with immediate coverage (until or unless the insurer rejects an application). This type of receipt is a(an):
Unconditional Binding Receipt
A disability benefit that pays the difference in a worker's pre-injury wage and decreased wage is called
Residual Disability Benefit
Mr. Jones normally earns $70,000 annually. After returning to work following a period of disability he can only earn $25,000. The type of disability he would need to cover the difference is:
Residual disability
This is known as a service that replaces the person providing the main caretaker role:
Respite care
Repairing or restoring of dental work that has been damaged in some way is called:
Restorative
The application is signed by
The applicant and producer ONLY
Sam owns a life with 20-year certain annuity and dies after receiving a monthly annuity income for 12 years. Sam's spouse, as beneficiary, will receive monthly annuity income for
Same annuity income for 8 years.
What type of medical expense lists the specified amount payable, usually for surgical procedures?
Scheduled
Martha is on disability. Her policy has a waiver of premium rider. What happens when she returns to work?
She begins to pay her regular premium
Can place the policy into effect between insurance company and applicant:
Signature
When the initial premium is paid at time of policy delivery, an insurance company may require:
Signed statement of insured to his/her good health
Purchased with a single payment. Benefit is not paid out until after more than one year from the annuity purchase date. Earns interest over time, accumulates. Payout begins at a chosen Annuity Period date.
Single Premium Deferred Annuities (SPDA's)
single lump sum cash payment is used to purchase the annuity in return for immediate income payments. Income payments to the annuitant start at a specific time within 12 months from the annuity purchase date such as 1 month, 3 months, 1 year. No accumulation period.
Single Premium Immediate Annuities (SPIA's)
The premium is paid at inception of policy and has immediate cash value would be a characteristic of this policy.
Single Premium Whole Life.
A health insurance policy goes into effect when:
The initial premium has been paid and the policy has been approved by the company
Policies providing disability benefits payable for at least two years require the insured to give notice of continuation every:
Six months
Insurance companies CANNOT non-renew or cancel a policy based on:
Solely on the ground of the insured's health status.
The substandard rating table involved in classifying persons with certain impaired health conditions is
Tabular
Concerning Substandard Risks, mortality tables indicating the percentage amount increase of premium for certain impaired health conditions best describes:
Tabular Rating
If a group policy is issued in another state, Louisiana state laws:
Take precedence over that state.
A tax deferred retirement plan provided by sole proprietors or small businesses, fewer than 100 employees who do NOT maintain or contribute to any other retirement plan. Employee and employer make contributions. This best describes:
The SIMPLE Plan (Savings Incentive Match Plan for Employees)
The insurance business is very closely regulated by
The State
Mr. Johnson, an insurance agent, purchases a Major Medical policy to cover himself and his family. He subsequently leaves his insurance career to run a farm he inherited. His insurance company is not notified of his change to a higher risk career. Mr. Johnson is injured in a tractor accident. Which of the following will probably occur?
The insurance company will pay reduced benefits.
A company may be permitted to alter the wording of a required provision in a health policy under which of the following circumstances?
The new wording is at least as favorable to the policyowner as the language used in the law.
Under the coverage of a Large Group Health Plan (LGHP), disabled employees become covered by Medicare if:
They choose to reject LGHP.
Medicare provides insurance protection to:
Those 65 or older and qualify for Social Security benefits, have been receiving Social Security benefits for two years, has kidney disease where dialysis is needed, or a surviving spouse was eligible for Social Security at the time of death.
What does the I A N C method of policy comparison take into consideration?
Time value of money
What does the I A N C method of policy comparison take into consideration?
Time value of money.
Increasing Level Decreasing
Types of Term Insurance
Endows at age 100.
Whole Life
The purpose of Medicare/Medigap policies is to help:
With any large bills that the patient might be left with due to deductibles, coinsurance, noncovered expenses, and excess physician charges.
How can changes be made to a policy?
With the signature of an executive officer of the insurer.
John, who had a life insurance policy with a death benefit, died on August 31st, after a long bought with cancer. He had been hospitalized for a month before his death. His wife contacted the insurance company to file her claim for the death benefit on September 5th, after John's burial, and after she had time to collect her emotions to deal with her personal loss. The insurance agent filed the papers to process the claim with his supervisor, and the death benefit was settled on October 30th. Were any laws violated in this scenario?
Yes, the claim was not settled within 30 days of the claim. - Although it typically takes approximately two weeks to settle death benefit claims, insurance companies are required to settle such claims within 30 days. Some claims may require additional time if they require additional investigation. Here, there is nothing suspicious about John's death.
During the _________________, if the annuitant dies, the beneficiary would receive either the premiums paid or current cash value of the contract at that time, whichever is the greater.
accumulation period
An insurance producer must report to the Commissioner
any administrative action or any conviction in district court taken against the producer.
Living benefits on a life insurance policy can be typically be accessed via:
can typically be taken out either in one lump sum amount or they could be received via regular installments. With the installment method, the insured may wish to use these funds to pay his or her ongoing monthly bills.
Can limit hospital daily room and board payments. Can limit coverage to one form of sickness. Can limit the length of hospital stay.
characteristic of a limited policy
Sets a time period for a maximum number of days. Limits on daily room and board.
characteristics of hospital indemnity
Involves coinsurance. Formal relationship involved. Deductibles involved.
common characteristics of group policies
Intentionally self-inflicted injuries. Elective/cosmetic surgery War/Act of War.
common exclusions from coverage
Interest portion of payment is taxable.
concerning the beneficiary receiving installment payments of principal and interest from death benefits
Pre-existing conditions. No-loss, no-gain provisions. Agent's liabilities for Errors and Omissions.
considerations in replacing health insurance
Medigap policies CANNOT:
duplicate benefits provided by Medicare.
When license has lapsed within 5 years
fulfill the continuing education requirements and pay fee to renew
When a license has lapsed for more than 2 years
license will be renewed only by fulfilling all requirements for issuance of a new license
A Non-participating policy pays dividends to
stockholders
Individuals in the group may have different coverage
means of reducing adverse selection
Licenses are issued to an applicant if he/she maintains a similar license in the U.S., Canada or another country.
nonresident producer
The major medical plan - which is considered comprehensive
normally provides out of hospital coverage for physician's care, medication expense and other medical expenses that can be rendered out of hospital over a period of time.
The use of nonapproved trade names will result in a fine
not to exceed $250
The Commissioner of Insurance may issue a temporary license for period
not to exceed 180 days
P & C license renewed every
odd numbered year. (2011, 2013, 2015)
When a license has lapsed for more than 2 years, license will be renewed
only by fulfilling all requirements for issuance of a new license
continuing education requirement for license renewal does not apply
persons(s) 65 years of age and older and who has at least 15 years of experience as a licensed producer
Guaranteed renewable. Renewable at option of insurer. Conditionally renewable.
renewability clause
The insured and the primary beneficiary are in the same accident; insured dies first, primary beneficiary dies second, two days later. The proceeds will go
the contingent beneficiary
License is renewed at
the end of the birthday month.
Premiums paid during the elimination period are refunded and future premiums are waived as well.
waiver of premium provision in a disability policy
Receipt for premium payment. Standard coverage unless company investigation determines otherwise. Proof of premium payment.
what the "conditional receipt" issued with application submission upon premium payment provides
Concerning Group Standard Provisions, policyholder has a grace period of _____ days
30
Pays until an amount is liquidated.
A Period Certain Option for a Fixed Amount:
Transfer of rights in a policy to another party through writing filed with the insurer is known as:
Assignment
Any business entity required to be licensed under Louisiana law to solicit, sell, negotiate, bind, procure or renew insurance. A business entity includes a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
Business Entity Producer
When an annuitant dies, the beneficiary receives the annuity's original amount less payments already paid with no guarantee to pay any interest, this best describes:
Cash Refund
Coverage effective date application is approved to the insurer, using the application date or the approval date as inception date of the policy.
Conditional Approval
The annuity benefit paid is a level, guaranteed amount.
Equity Indexed Annuities
Accumulated cash value used as a single-premium to buy paid-up insurance which is the same face amount as the policy producing the cash value best describes:
Extended Term
An annuity that guarantees the interest rate paid on the premiums invested and provides payments that do NOT vary from one to another best describes:
Fixed Annuities
Any individual who is required to be licensed under Louisiana law to solicit, sell, negotiate, bind, procure or renew insurance
Individual Producer
When an annuitant dies before receiving the sum of the premium payments plus the accumulated interest, the beneficiary would continue to receive guaranteed installments until entire accumulated amount is paid out, this best describes:
Installment Refund
To provide general information of applicant's character, habits, finances best describes:
Investigative Consumer (Inspection) Report
Unless there are grounds for denying a license, a nonresident person will receive a nonresident producer license if the person
Is currently licensed as a resident and in good standing in their home state. Has submitted the proper request for licensure and paid the required fees. Has submitted the application to the Commissioner for licensure that the person submitted to their home state, or submitted a completed Uniform Application. The person's home state awards nonresident producer licenses to residents of Louisiana on the same basis. (Reciprocity).
Two or more annuitants receive payments until the death of one of the annuitants, then the payout stops, this best describes:
Joint Life Annuity
The survivor's annuity payments remains the same upon death of the first, this best describes:
Joint and Full Survivor Annuity
If a parent/policyowner of a minor dies or becomes disabled, the minor policy will be in force until the insured reaches specified age best describes ____________ rider.
Payor Benefit Life/Disability
To designate several primary beneficiaries so that each one will receive an equal share of the proceeds would be described as:
Per Capita
The frequency in which the policyowner pays the premium refers to:
Premium Payment Mode
In the event of a premature death, a portion of the principal and interest is guaranteed to a beneficiary.
Pure Life Annuity
one who resides in Louisiana or maintains a principal place of business in Louisiana
Resident Producer
An annuity that is purchased with a single payment and benefit is NOT paid out until after more than one year from annuity purchase date best describes _____________ Annuities
Single Premium Deferred
Type of whole life policy provides immediate cash value
Single Premium Whole Life
If an annuitant dies during the accumulation period, the beneficiary would receive:
The greater of the premium paid or current cash value of the contract
A license is issued for a period of
Two years
Immediate coverage for a specified time period until insurer formally rejects the application best describes a ________________ Receipt.
Unconditional binding
The selling of a life insurance policy for less than face value allowing insured with a life-threating illness to obtain funds before death occurs best describes:
a viatical settlement
An employer has an arrangement with an employee for a wage increase in the amount of the premium on a new life insurance policy on the employee, this example would best describe:
an executive bonus
A portion of the death benefit is transferred by the owner to another party in conjunction with a loan commitment. This is a/an ________ assignment.
collateral
L & H license renewed every
even numbered year. (2012, 2014, 2016)
Premiums paid for a specified number of years or to age set in policy best describes what type of whole life policy?
limited payment
Employee must begin drawing benefits by age 70 & 1/2 or be subject to an excise tax of 50%
taxation of distribution (age-related) of Qualified Pension Plans
An insurance producer must report to the Commissioner - Law enforcement conviction
within 30 days of a conviction
An insurance producer must report to the Commissioner - Administrative action
within 30 days of the final disposition