life ins 2

what percent of eligible employees must participate in a noncontributory plan before is can become effective?

100%

how often do universal life policies receive reports?

12 months

What is the minimum number of employees required to constitute a large group according to COBRA?

100

Combination plans are comprised of two types of plan features: basic and

comprehensive

What is the maximum period that an insurer would pay benefits in accordance with an additional monthly benefit rider?

1 year

In group underwriting, little or no medical information is needed for plan participants in groups of...

50 or more

If an employer provides long-term disability insurance, what percentage of monthly wages are lower-paid employees eligible for?

66 and 2/3%

What organization best produces evaluations of insurer's financial status often used by state departments of insurance?

AM Best

If an employee terminate her employment, what provision allows her to continue health coverage if requested within a specific time?

conversion

Who can make a fully deductible contribution into a traditional IRA?

an individual not covered by an employer sponsored plan who has earned income

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

common disaster clause

what type of insurance is most commonly used in credit life?

decreasing term

Circulating deceptive sales materials to the public is what type of unfair trade practice?

false advertising

What option ensures that additional coverage will be available in the future?

guaranteed insurability option

What is franchise health insurance?

health coverage for small groups whose numbers are too small to qualify for true group insurance

Who is responsible for providing claims forms and to which party?

insurer to the insured

a policy owner wants to make sure his wife would be paid annually after his death and his kids would be paid the principal when they reach a certain age. What policy is best?

interest only

what entity protects policy owners, insureds, and beneficiaries under insurance contract when insurers fail to perform contractual obligations due to financial impairment?

life and health guaranty association

Your client wants both protection and savings from the insurance, and it willing to pay until 65. What policy is best?

limited whole life

Per capita administrative cost in group health insurance is

lower

In what annuity is the owner guaranteed a fixed interest rate for a specific period of time?

market value adjusted annuity

Do HMOs contract with insurances?

no

Does an insurer have the ability to increase the policy premium on an individual basis?

no

Does medicare cover the cost of extended nursing home care?

no

An applicant wants to buy a policy that has a cash value element. What should they buy?

permanent

If a client pays $1000 in premiums but has $200 in accumulated dividend to pay toward next years premium, what is this called?

reduction of premium

If an immediate annuity is purchases with the face amount at death or with the cash value at surrender, this is considered what option?

settlement

An annuity is surrendered. All premium payments are returned except for a predetermined percentage. What is this percentage called?

surrender charge

what is true about HIV exams in the underwriting process?

the applicant must give prior written consent

What accurately describes group disability income insurance?

the extent of the benefit is determine by

What is the annuity period?

the time during which money is converted into income payments

In an accidental death policy, if the insured dies as a result stipulated in the policy, how will these benefits be taxed?

they will be income tax free

Do PPOs contract with insurances?

yes