Life health

R, a self-employed stockbroker becomes totally disabled on January 1 and receives $1500 for the next 12 ????? Paid the premium. How much of this income is subject to federal income tax

$0

A $100,000 group Accident Death and Dismemberment policy will pay double indemnity if the insured dies in a commercial airplane crash. If the insured is killed when flying to a business meeting on a commercial flight, the policy will pay a MAXIMUM of:

$200,000

What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?

100%

Which of the following situation describes a representation

A prospects statement on an application that is held to be substantially true

An insurance company may charge a higher total premium to an insured who pays a policy quarterly rather than annually???????

A reduction in the company's interest earnings and increase in administrative expenses

An immediate annuity would have

A single premium

Under an individual major medical policy, a married policy owner has the right to take which of the following actions

Add a newborn child to the policy without providing proof of insurability

An individual health insurance policy contains a change of occupation provision. If the insured experiences a loss in ???? the company may

Adjust benefits to the amount the premium provides for the new occupation

The misstatement of age in an accident and health policy allows an insurance company to take which??????? Application

Adjust the benefits

A life insurance policy owner has paid $1200 in premiums in six months for a $250,000 policy. The owner dies ?????? unequal value reflects which of the following contract features

Aleatory

Which of the following characteristics is typical of group insurance?

All full-time employees are eligible for coverage

A student airplane pilot may buy life insurance at a regular price if the policy that purchased contains:

An Aviation Exclusion

A producer received a phone call from an insured who already has health insurance and wants to buy an accidental death and dismemberment policy, the producer Should take which of the following actions?

Answer the routine application questions, meet with the prospect to obtain any additional information, and have the prospect sign the application

In a life policy, insurable interest MUST exist at which of the following times?

At the time the application is signed

Which of the following kinds of policies typically contain a limited daily room and board benefit, and provides coverage on a ???

Basic hospital

Which of the following is a contract and which one or both parties is contingent upon the occurrence ??????

Conditions

Because life insurance policy are offered on a "take it or leave it " basis, they are referred to which of the following types of contract

Contracts of adhesion

Under federal law, a tax exempt health savings account can only be opened for an individual who is

Covered by a qualified high deductible health plan

The purpose of the US patriot act is to

Detect criminal activity

Which of the following policies provides a specified income benefit when the insured person becomes unable to work, because ???????

Disability income

Two equal business partners in a business worth $100,000 enter into a buy and sell agreement to ensure continuation of??????? Funding arrangements best meets their needs

Each partner purchases a $50,000 policy on the other

Which of the following statements is correct about the federal income tax law in relation to $100,000 worth of coverage

Employees must pay tax on the premiums for the first $50,000 of group term life coverage

The policy provision the prevents an insurance company from altering its agreement with the policy owner by referring to documents or other items not contained in the policy is called the

Entire contract provision

Which of the following items requires that an insurance application that an investigative consumer report ??

Fair Credit Reporting act

A policy owner returned a newly issued policy one week after the policy was delivered by the producer and received ???? Situation described?

Free look provision

An insured who wants to guarantee that an accident and health policy will remain in force even in the event of being disabled should purchase which of the following riders

Guaranteed insurability

Which of the following statements is correct about conversion of group term life insurance on termination of ?????

If a death occurs during the conversion period, the death benefit must be paid

Which of the following statements about a five-year-old whole life policy is correct

If a policyowner stops paying premiums, the policyowner may elect a Nonforfeiture option

A retirement plan that may be established by an employee regardless of any other retirement plan is called an

Individual retirement account (IRA)

The waiver of premium provision in a life policy guarantees that the

Insurance company will waive premiums whenever policy's cash values

The Coinsurance clause in an individual medical expense policy refers to the

Insurances company's right to require the insured to share a certain percentage of cost of each claim

Employee who owns an individual disability income policy is injured in an automobile accident and ?????? policy, the company will likely pay the policy benefits to the

Insured

The primary purpose of a limited pay life is to allow an

Insured to pay premium for a predetermined period of time

In an insurance policy, the promise by the insurer to pay certain benefits is the

Insuring clause

Which of the following statements is correct about the death benefit of a life insurance policy

It can be assigned by the policyowner

Which of the following conditions is typical of a major medical policy

It contains a deductible and coinsurance

Which of the following statements is correct about Medicare?

It is a hospital and medical expense insurance program

Which of the following statements is correct about the coordination of benefits provision

It prevents an insured covered by two health plans from making a profit on a covered loss.

Which of the following annuities ensures level income for the lifetime of two annuitants

Joint and survivor life annuity

For which of the following losses would an insurance company most likely pay the benefits under an accidental death and dismemberment policy

Loss of eyesight due to an accidental injury

A full-time employee who is suffering from chronic kidney failure, a requires dialysis is eligible for medical coverage, under which of the following plans

Medicare

Which of the following types of group term life insurance plans does a corporation offer,????

Noncontributory

In general, what amount of personal life insurance premiums deductible for federal income tax purposes

None

Which of the following is true of life settlements

Only terminally ill insureds can consider one

A major medical policy insured is injured in an auto collision during a police chase. The occupants in the police car are killed. The insured is convicted of reckless driving and manslaughter. The insured files a claim, The insurance company will most likely take which of the following actions.

Pay full benefits

An insured who owns a disability income policy, forgot to pay the premium due on July 1. If the insured files a disability claim on July 31st the insurance company will most likely

Pay the claim but deduct the unpaid premium

In an insurance policy, the consideration clause states that the policy owners consideration consists of completed application and ..

Paying the initial premium

An immediate annuity can be recognized by which of the following features

Payout begins one payment period after purchase

Basic cancer plans pay for all the following except

Physical therapy

The statement that an insured must give an insurance company to show that a loss actually occurred is a

Proof of Loss

A life insurance policy holder dies of heart failure shortly after the 10th posse anniversary. The insured failed to disclose the ????? situation the, insurer will most likely

Refuse to make any payment

Most insurance companies use the usual, customary, and reasonable charges to(UCR)

Reimburse the employee for expenses charged by the medical facilities

Which of the following is correct about business overhead expense insurance

Reimburses policy-owner for loss of income

Which of the following provisions establishes a procedure for restoring a policy after it has lapsed because of nonpayment of premium

Reinstatement

Which of the following term policies guarantees the insured the right to continue coverage after????

Renewable

A doctor who is receiving Disability Income benefits is unable to return to work full-time, but continues her practice on a part-time basis. Which of the following would allow the doctor to continue to receive benefits?

Residual Benefit clause

An underwriter's evaluation of information on a life insurance application is also known as

Risk classification

Which of the following information is included in a consideration clause in an accident and health policy

Schedule and amount of premium payments

A producer who discovers that answers to a series of questions on a life insurance application were omitted should take which of the following actions?

Schedule another appointment with the applicant to complete the unanswered questions

Which of the following annuities provide the highest monthly payout

Straight life annuity

Which of the following policy provisions is designed to check the insurance company from adverse selection by certain high risk ????????

Suicide clause

A prospect, with limited financial resources, wants to purchase a policy with the highest amount of protection for a temporary period. The producer should advise the prospect to purchase which of the following type of policies?

Term life

After the expiration of cobra or state continuation laws, which of the following statements is correct about an employee who quits the job and wants to convert to group accidental and health Coverage to an individual policy

The employee has a maximum of six months to convert

A producer has taken an application for an individual Disability income policy, collected a premium, and given the applicant a conditional receipt. Which of the following statements is CORRECT about this situation?

The insurance company will complete standard underwriting procedures before making a decision about whether to insure the applicant

A Convertible term policy offers which of the following advantages?

The insured does not have to provide evidence of insurability when requesting a conversion

Which of the following statements is correct about a disability income policy with a guaranteed insurability rider

The insured may periodically increase the amount of benefits payable under the policy.

A prospect submits an Accident and Health application with the premium and receives a conditional receipt to the insurance company issues a policy and mails it to the insured, but the insured never receives it. Which of the following statements is CORRECT about this situation?

The policy is in force

Which of the following statements is correct about limited pay whole life policy

The premium payment is shorter than a straight life policy, and more of each premium

Which of the following statements about policy delivery is correct

The producer should deliver the policy before the Free Look period expires

A producer submits an application to an insurance company without the initial premium. If the company issues a policy, the producer should promptly deliver the policy and collect the initial premium for which of the following reasons?

The prospect does not have coverage until the policy is delivered and the premium paid.

Which of the following statements is correct about a renewable term policy

The renewal premium is calculated on the basis of the insureds attained age

an application for an individual disability income policy may require all of the following information about the proposed ???

The spouses occupation

Which of the following statements is about the benefits of a group short term disability income policy

There are not payable for accidents covered by workers compensation

A policy becomes a modified endowment contract when

Too much premium paid in the initial policy years

Which of the following policies allows the policy owner to select where the cash values are invested

Variable Life

Y wants to purchase a policy that allows Y to increase or decrease the premium payment, the premium payment period, and the death benefits of the policy. Which of the following policies offers the flexibility that Y wants?

Variable Universal Life

Which of the following annuities pays benefits based on units rather than specific dollar amounts

Variable annuity

A producer must deliver an Outline of Coverage to a prospective insured who is eligible for Medicare at which of the following times?

When the policy is delivered

Which of the following features of life policy is used to restrict coverage

an endorsement

A customer surrenders a recently issued whole life policy and requests proceeds be made payable to an unrelated third party, This would be a red flag potential violation of the :

anti-money laundering rules

The fair credit reporting act requires that

applicants be advised that a consumer report may be requested.

A life insurer that accepts an incomplete application and issues a policy is obligated to:

charge a lower premium for the initial period of coverage

A Payor Benefit clause is generally added to a life policy that insures the life of a:

child

W applies for life insurance on W's five year old child and submits the initial annual premium. The producer issues W a receipt and says that coverage will be effective immediately if the application is approved, because no meeting examination is required. Which of the following types of receipts did the producer issue?

conditional

Changing a beneficiary is a right reserved for the

contract owner

Group vision insurance plans typically provide insurance benefits that cover the cost of

eye exams, lenses, frames, and contact lenses.

A policy summary

highlights the critical parts of the policy issued and describes the coverages, riders, and exclusions.

Which of the following beneficiary designations may limit a policy owner's rights

irrevocable

Which of the following statements is generally correct about major medical policy?

it provides benefits for reasonable and necessary medical expense, subject to policy limits.

Which of the following statements about dismemberment provision in a health insurance policy is correct

it provides benefits for the loss of a specific part of the body

Which of the following statements is correct about the Medicaid program?

it provides medical assistance for participants who are blind.

P is both the policyowner and the insured under a $100,000 Whole Life policy. The beneficiary is P's mother. When P marries, ownership of the policy is transferred to P's spouse. If P dies without making any other changes, the policy proceeds will be payable to P's

mother only

If an initial premium is not collected when a life insurance application is written, the insurance becomes effective

on delivery of the policy to the insured and payment of the initial premium to the producer

The time of payment of claims provision states that the intervals between disability income benefit payments may not exceed

one month

One of the primary reasons for using deductibles in health policies is to reduce

over-utilization of medical services

Under disability policy, the elimination period is

similar to deductible, but expressed in terms of time, rather than dollars

The purpose of the insuring clause in an Accident and Health policy is to:

specify the conditions under which benefits are payable

Which of the following types of policies provides permanent protection at the lowest annual premium

whole life