Life and health insurance - exam fx part 6
What policy would have an IRS required corridor or gap between the cash value and the death benefit?
Universal life - option A
How long are insurers required to maintain records pertaining life insurance solicitation?
3 years
If an insured's cognitive impairment results in the lapse of a long term care policy, how long from the policy lapse may they request reinstatement?
5 months
What is another term for an authorized insurer?
Admitted
The least expensive first year premium is found in what policy?
Annually renewable term
In an annuity, the accumulated money is converted into a stream of income during which time period?
Annuitization period
What best describes the fixed period settlement option?
Both the principal and interest will be liquidated over a selected period of time
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy, this is an example of?
False advertising
When the policyowner specifies a dollar amount in which installments are to be paid, they have chosen which option?
Fixed amount
Most LTC plans have what features?
Guaranteed renewability
A return of premium term life policy is written as what type of term coverage?
Increasing
What is not a nonforfeiture option?
Interest only
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate
What best describes annually renewable term insurance?
It is level term insurance
What best describes the annually renewable term insurance?
It is level term insurance
What is not true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity
What is an example of a limited pay life policy?
Life Paid-up at Age 65
What settlement option in life insurance is known as straight life?
Life income
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
An insured purchased a disability income policy with a 10 year benefit period. The policy stated a 20 day probationary period for illness. If the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay?
Nothing, illness is not covered during the first 20 days of the contract
What applies to partial disability benefits?
Payment is limited to a certain period of time
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time and proof of insurability is provided, which provision allows this?
Reinstatement provision
What types of annuities will generally provide the highest monthly income?
Straight life
Your client is planning to retire. She has accumulated 100,000 in retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. An agent should recommend?
Straight life
What is true about requirements regarding HIV exams?
The applicant must give prior informed written consent
What is not true of annuity owner?
The owner must be the party to receive benefits
What is not true concerning the use of life insurance as an executive bonus?
The policy is owned by the company
What is correct regarding a whole life policy?
The policyowner is entitled to policy loans
What is correct regarding whole life policy?
The policyowner is entitled to policy loans
In an adjustable life policy all can be changed by the policy owner except?
The type of investment
What is not true regarding the guaranteed insurability rider?
This rider is available to all insureds with no additional premium
What kind of policy allows withdrawals or partial surrenders?
Universal life
What policy allows withdrawls or partial surrenders?
Universal life
When would a 20 pay whole life policy endow?
When the insured reaches age 100
A willful violation of an agent's fiduciary responsibility that involved funds exceeding 1,000 will be considered:
a felony
Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report must be:
informed of the source of the report
What is correct concerning medicare part B?
it pays for physician services, diagnostic tests, and physical therapy
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called:
joint and survivor
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a:
premium receipt
The interest earned on policy dividends is:
taxable
What is not true about variable products:
the premiums are invested in the insurer's general account
What product requires a securities license?
Variable annuity
An insured purchased a variable life insurance policy with a face amount of 50,000. Over the life of the policy, stock performance declined and the cash value fell to 10,000. If the insured dies how much will they be paid out?
50,000
If a dental plan is integrated, it is combined with what type of plan?
Medical
What is not a characteristic of group life insurance?
Premiums are determined by the age, sex, and occupation of each individual certificate holder
Under the AD&D coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal sum
The paid up addition option uses the dividend to do what?
Purchase a smaller amount of the same type of insurance as the original policy
What is not true concerning an employer sponsored nonqualified retirement plan?
The employer can receive a current tax deduction for any contributions made to the plan
If an applicant intends to replace any existing accident and sickness policy with a medicare supplement policy, what must the agent furnish ?
a notice regarding replacement
The automatic premium loan provision is activated at the end of the :
grace period