Mi insurance
Which of these annuities require premium payments that vary from year to year?
Flexible premium deferred annuity
How are annuities given favorable tax treatment
Gains are taxed at distribution
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions EXCEPT?
Require the producer to notify his/her clients will: impose a civil fine revoke a producuers license place producer on probation
Whih of these is not the responsibility of a producer -represet the insured
Responsibilites include: representing the insurer forward applications to the insurer collect iitial premiums
Which of the following protects a policy owner from a misrepresentation caused by an innocent mistake
Incontestable clause
Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake
Incontestable clause
How does one qualify as a fully-insured individual under Social Security disability coverage?
Individual has been credited with the appropriate number of quarters of coverage
all of the following are characteristics of a group life insurance plan except
Individual underwriting
Under which circumstance may a deferred insurance commission be paid to an individual
Individual was a licensed producer at the time of the sale
An insurer is required to offer which of the following to each long-term care applicant at the time of purchase
Inflation protection
Who is responsible for assembling the policy forms for insured
Insurance carriers
Free look - right to examine
Insured may return policy for a full refund typically within 10 days of receipt of policy
The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule?
Long Term Care Insurance premiums
The authority granted to a licensed producer is provided via the
Lot of agency
Small employers who are sponsored by an insurer to provide group benefits to its employees are called
MEWA (multiple employer welfare association)
The election of cobra for continuation of health coverage will
Maintain the same coverage and increase premium
How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes?
Not tax deductible
what makes an insurance policy a unilateral contract
Only the insurer is legally bound
According to the health insurance, portability and accountability act, when can a group health policy renewal be denied
Participation or contribution rules have been violated
Automatic premium lawn provision authorizes and ensure to withdraw from a policies cash value the amount of
Past due premiums I have not been paid by the end of the grace.
Payor Rider
Rider added to policy that a parent buys for child (added premium) ‒ If parent (premium payor) dies or becomes disabled, the insurer waives premium until child reaches the age of 21
Which of these retirement plans do NOT qualify for a federal income tax deduction?
Roth IRA
which of these is not a characteristic of the accelerated death benefit option
The benefit can be offered as a rider at a specific extra cost or may be at no cost
Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?
The contract is not in force without the initial premium being paid
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?
$5,000
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500?
$700
Reasons an insurer might refuse renewal of a small employer group plan
- coverage has been discontinued bby the insurer Number of participants does not meet minimum requirement willful misrepres
typical, long-term care insurance policy is designed to provide a minimum of ___ years of coverage
1
Medicare Part A does not pay for medical benefits provided for treatment in a skilled nursing facility beyond
100 days
Sole proprietors are permitted tax seductions for health costs paid from the earnings in the amount of
100% of health costs paid by sole prop is tax deductible
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?
100% of his health insurance costs can be deducted from his gross income
Closed network plan offers a primary physician co-pay of $25. If a subscriber to the primary care physician outside of the network, the subscriber will likely pay
100% of the billed ammounnt
A closed network plan offers a a primary physician copay of $25. If a subscriber chooses a primary care physician outside of the network, the subscriber will likely pay
100% of the billed amount
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n)
1035 exchange
Individual playing for Michigan residents producer license must have completed the required prelicensing education within ____ months of app
12
written notice of a claim must be given within
20 days after a covered loss starts or as soon as reasonably possible
the open enrollment period for medicare begin
3 months before 65th bday and lasts for 7 months
A lapsed policy may be reinstated within
3 years from the due date upon evidence of insurability and all back premiums are paid with interest
The acceptance of a credit life application requires the submission of a certificate of insurance to the insured within
30 days
free look period for medicare
30 days
jen is a producer who has obtained consumer information reports under false pretenses. under the fair credit reporting act, what is the maximum penalty that may be imposed on ken
5,000
How much does medicare part B pay for physician fees
80% - pays 80 of most doctors services, outpaitnet treatments, and durable medical equipment like o2 or wheelchairs
A producer has allowed his/her license to lapse by failing to complete the required continuing education credits. The license may be reinstated by completing the requirement within _____ days of the renewal date.
90 days
Under the pre existing conditions provision the term group health plan is defined as __
??
Who has the right to the nonforfeiture values in an annuity?
??
If a premium is NOT submitted with a life insurance application producer MUST have the applicant sign which of the following when delivering a policy?
???
what is protected by the gramm leach
???
Once an employee and insured of a group policy reach the age of 65 they
????
the cost associated wiht mortality for a life insurance policy with all other factors being equal would be higher if the insured were
????
what is an action the director might take when a customer complains they suffered finanial harm as a result of insurance licensees actions
????
when underwriting an individual health insurance policy, the underwriter will not consider the applicants __
????
which of the following statements is correct when comparing community rating to experience rating
????
Part A Hospital expense coverage provided under Medicare is automatically made available to each of the following EXCEPT
A 70-year old NOT eligible for Social Security
entire contract
A provision that the policy and the application shall constitute the entire contract between the parties. All statements made by the policyholder are considered representstions
A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called
A self-funded plan
all of the following are examples of a business continuation plan except -deferred compensation
ARE: key person insurance cross purchase agreement stock redemption plan
Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?
Accidental bodily injury provision
Which dividend option would an insurer invest the policy owners money and add any interest earnings as a dividends accrue
Accumulation at Interest Option
Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?
Accumulation at Interest Option
Why are dividends from a mutual insurer, not subject to taxation
Because dividends are considered to be a return of premium
Donald is the primary insured of a life insurance policy and adds a child term rider. What is the advantage of adding this rider
Can be converted to a permanent coverage, without evidence of insurability
Modified endowment contract
Can be described as a life insurance policy that accumulated cash values higher than the IRS allows
which of the following is not part of an insurance contract
Certificate of Authority The Certificate of Authority allows an insurer to conduct business in a state. It is not part of an insurance contract.
What would happen if the life insurance applicant is given a conditional receipt from an insurance agent, and then dies the next day?
Claim will be paid if application is approved
Which of the following is not a valid reason for an insurer to refuse renewal of a small employer group plan?
Claims were higher than expected
An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called
Coinsurance
Any change of address by a licensee requires notice within 30 days to which of the following
Comissioner
In an insurance contract the element that shows each party is giving something of value is called
Consideration : is the element of an insurance contract which demonstrates that each party is giving something of value
Which of the following statements is not true regarding a critical illness plan?
Coverage is limited to a single devastating disease True: - pays a lump sum to the insured upon the diagnosis of a critical illness - the insurer may have a list of critical illnesses they will cover - also known as specified disease plans
Tax qualified long-term care premiums are considered a medical expense
The taxpayers medical expenses exceed 7.5% of their adjusted gross income, long-term care premiums are tax deductible
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
All of these statements concerning whole life, insurance are false, except
When a whole life policy is surrendered, income taxes may be owed
An individual can enroll in a Part C Medicare Advantage Plan at what time?
When becoming eligible for Medicare
Under Michigan Law, which of the following would NOT be considered an illegal inducement?
a promotional item with the producers name and address valued at 5$ things taht would be: sharing commision w insured paying premiums for insured 100$ gift to insured
Under which circumstance me a minor purse receive proceeds from a death benefit
The minor must have an appointed guardian
which type of group has a constitution and bylaws, is organized and maintains
association or labor group
a renewable term life policy can be renewed
at a predetermined date or age regardless of their health status
long term care policies must pay for at home care
at the same daily amount paid for a nursing home if the insured meets qualifications for nursing home
insurable interest exists
at the time of application
The purpose of the coordination of benefits provision in group accident, and health plans is to
avoid overpayment of claims
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must
be the same and the premium cannot exceed 102%
a modified endowment contact reciveves different tax treatment on pre death distributions than other life insurance policies
because it tends to be an investment vehicle
Primary difference between pre-certification ad concurrent recview is that pre certification occurs
before the treatmet is provided
a disability income policy can prevent an insured from earning a higher income than if they were working by utilizing
benefit limits
The period in which there are no social security benefits for the surviving spouse is called the
bklackout period
An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before
bringing legal action against the insurer
social security enchances
but does ot replace a sound personal insurance plan SS purpose: provides basic protection against financial probs accompanying death disability and retirement it augments a sound personal insurance plan provides retirement and surivor benefits to a worker and the workers family
Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have?
calender year deductible
Which of the following is not required provision in an accident and health insurance policy
change of occupation required: legal actions grace period reinstatement
Furniture changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates
change of occupation provision
Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium".
comsideration clause
nate's dependent son is physically handicapped, but not eligible for medicare. how long may his son remain on nate's health coverage after the age of 26?
coverage remains with written proof of disability and dependency
medicare provides coverage for each of the following except
custodial care
If an annuitant dies during the accumulation period, what will the beneficiary receive?
either the cash value of the policy or the amount of premiums paid, whichever is the larger amount
a type of life insurance policy which provides for the payment of the face amoiunt at the end of the specified period if the insured is still alive
endowment policy
Level premium permanent insurance accumulates a reserve that will eventually
equal the face amount of the policy
Medigap policy is designed to pay costs associated with
medicare parts a and b
Underwriters can acquire information from all of the following sources
mib consumer reports attending physician statments
The suicide clause of a life insurance policy states that if an insured commits suicide within a stated. From the policies, inception, ensure will only be liable for a return of premium is paid.
minus indebted and without interest
Insurance premium is determined by each of the following factors EXCEPT
mortality (interest, expenses, liquidity)
A beneficiary change can occur
normally at any time during the policy term
A nonparticipating policy will
not pay dividends
The automatic premium loan provision authorizes an insurer to withdraw from the policies, cash value amount of
past due premiums that have not been paid by the end of the grace period
Errors and Omissions
profession liability for which producers can be sued for mistakes of putting a policy into effect
Branch of dentistry much deals with the replacement of missing parts is called
prosthodontics
In an insurance contract, the applicants consderation is teh
statements made in the application adn the premium
a child term rider is level term insurance
that can be added to an existing policy
universal life has a guaranteed interest rate with the possibility to earn an interest rate
that is higher than the guaranteed rate
A whole life insurance policy accumulates cash value that becomes
the policy loan value which the insured may borrow against
adjustable life allows
the policy owner to change 2 deautures: face amount & premium
with a reduced paid up nonforfeiture option
the policy will have a decreased face amount
If an insured dies during the grace period with no premiums paid
the policy would be payable, minus the premium amount
if term life insurance is renewable
the policyowner is purhcasing the right to renew the policy without showing proof of insurability
all advertisements for health insurance shall make clear
the identity of the insurer
When a preferred provider organization (PPO) insured goes out-of-network, which of the following actions occur?
the insurer will pay a reduced amount
Insuring clause states
the insurers obligation to pay a death benefit upon an approved death claim
The type of policy where the insured can send a notice to the insured that the policy has been canceled in the middle of the term is called
cancelable
A doctor who accepts Medicare Assignment agrees to which of the following?
cannot charge more than medicares scheduled coverage
All of the following are elements of an insurance policy, except
claim forms
ownership of a life insurance policy may be temporarily transferred with an
collateral assignment
before operating under an assumed name a producer must notify the
commissioner
endodonics
commonly excluded for a dental policy
Waiver of premium rider allows an insurer to wave premium payments if the insured is
completely and permanently disabled
Field underwriting performed by the producer involves
completing the application and collecting inital premium
Deliver, it was holding of material facts that would affect the validity of an insurance policy or claim is known as
concealment
Pre existing conditions
conditions for which the insured has received diagnosis, advice, care, or treatment during in the 12 months prior to the effective date of enrollment , may be excluded for 12 months from enrollment
Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n)
conversion
Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination which of these describes a change that will take place
conversion
things that dan increase death benefit
cost of living accidental death ride gaursenteed insurability
In Michigan, a person providing insurance advice to a person or business for a fee is required to hold which license?
counselor
prepaid dental plans
coverage is limited to a closed panel of dentists
You are eligible to recieve medicare part A benefits at age 65 or older if you are
eligible to recieve social security benefits ALSO IF: you are a 50 yr old individual who has qualified for SSDI in the last 24 months - A 55year old suffering from kidney failure - a 65 year old retiree
a person who acts on behalf of another
an agent
Which of these riders will pay a death benefit if the insured's spouse dies?
Family term insurance rider
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this plan?
$0- Benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is not taxable as income.
Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?
$10,000
if an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a 1,000 monthly disability benefit
500
an insured has a stop-loss limit of 5000 and deductible of 500 and an 80/20 coinsurance. the insured incurs 25000 in covered losses. how much will the insured have to pay
5000
Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty?
59 1/2
In Michigan, legal action may be taken against an insurer for up to __ years for failing to pay a life insurance claim after proof of loss was submitted
6
A rollover from a traditional IRA to another IRA must be done within ____ days to avoid tax consequences
60
How many days most to traditional IRA be rolled over to another IRA in order to avoid tax consequences
60
In determining whether a pre-existing condition applies, the enrollee CANNOT have more than how many days gap in health insurance
63
at what age will a person normally enroll with an insurance carrier under a Medicare part C advantage plan
65
Maximum fixed interest rate for policy loans charged by insurers
8%
How much does Medicare Part B pay for physician fees?
80%
Guaranteed Insurability
Allows insured to purchase additional amounts of life insurance, at future dates, without needing to take a physical exam or prove insurability ‒ Future dates are typically policy anniversary dates ‒ Limited to specific age ‒ Additional insurance based on attained (actual) age
Return of Premium Rider
An Increasing Term Rider is added to a term or permanent policy, which increases death benefit in proportion to premiums paid
Return of Cash Value
An Increasing Term rider is added to a permanent (WL) policy, which increases the death benefit equal to the Cash Value accumulation increase each year
XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence?
Benefits are fully taxable
With a scheduled dental policy, how are covered expenses paid?
Benefits are limited to a specific maximum dollar amount per procedureT
Which of the following statements is true about an insurers right to screen for HIV
Blood test for HIV
Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?
Business overhead expense policy
All of the following riders can increase the death benefit amount EXCEPT - waiver of premium
CAN: cost of living accidental death rider guaranteed insurability
A producer's insurance license may ONLY be revoked by the
Department of Insurance and Financial Services (DIFS)
Under hip of the employees new group health plan will verify credible covered so that the
Employees waiting period for coverage of a pre-existing condition can be reduced under the new employers health plan
All of the following are qualifications for establishing a health savings account, except
Enrolled in a health plan with a prescription drug benefit
which of the following is an annuity that is linked to a market related index
Equity indexed annuity
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?
Estate conservation
All of the following are exempt from the 10% tax penalty for early qualified plan withdrawls except - stock purchase
Excempt are: Qualified college expenses first time home purhcase death of participant
The waiting period for a disability insurance policy
Excludes payments for a short term injury or illness
all of the following plans allow for employee contributions to be taken on a pre tax basis except
Health Reimbursement Arrangement Plan
Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?
Hospital indemnity
which of the following is not included under a health benefit plan
Hospital indemnity plan is: major med basic hosp surgical expense
which approach predicts a persons earning potential and determines how much of that amount would be devoted to dependents
Human life value approach
what does COBRA of 1985 allow an employee to do
In the event of employment termination, group health insurance can be kept if the employee pays the premiums ????
Applicants character in personal habits can be obtained for underwriting purposes, from which source
Investigative consumer report - detailed report that contains information on the Consumers character, general reputation, personal characteristics, or motive, living in his obtained through personal interviews with neighbors, friends, or Associates of the consumer
The writer which pays a life insurance policy owner of monthly amount, in the event of total and permanent disability
Is called a disability income rider
Major medical expense plans provide coverage for each of the following except: work related injuries
It does cover: medically necessary, surgery, diagnostic test, blood and urine lab screens
what happens to interest earned if the annuitant dies before the payout start date
It is taxable
A Medicare supplement policy issued in the state of Michigan is required to provide each of the following, except
It must include outpatient prescription drug coverage
Which of the following statements regarding group disability income insurance is true
It provides benefits for nonoccupational illnesses and injuries
the open enrollment period for medicare part b is
January 1 through March 31
Donna and Mary were racing bicycles in a store parking lot while being cheered on by fellow employees. Mary ran into John, another employee, who happened to be taking out the garbage. Both Mary and John are injured. Who would most likely be covered under Workers' Compensation?
John
Insurance companies determine risk exposure by which of the following
Law of large numbers and risk pooling
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life Income
An employer is issued a group medical insurance policy, this single contract is known as an
Master policy
An insurance contract is conditional
Means that the insurance promise to pay benefits depends on the occurrence of an event covered by the contract
Which of these statements about medicaid is correct? -funded by federal, state, and local taxes
Medicaid does not: Pay for medicare charges exceeding the approvded amount intended for senior citizens administered by teh federal govt
Which of these is likely to occur when life for health insurance is being applied for
Medical history from the insured may be reviewed and reported
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies?
Payor benefit
The following does coordination of benefits allow
Plaza secondary pair traducer benefit parrot payments so no more than 100% of the claim is paid
Which situation accurately describes a reduced paid up nonforfeiture option
Policy has a decreased face amount
Weather in insurer has the right to terminate a health insurance policy for specific reasons other than the insured's health
Policy is described as conditionally renewable
These describes a result of a modified endowment contract that failed to meet the seven pay test
Pre-death distributions are typically taxable
which of the following provides medicare supplement policies
Private insurance companies
Part D
Program the offer is a prescription drug benefit to help Medicare beneficiaries pay for the drugs I need. The drug benefit is optional and is available to anyone who is entitled to Medicare, part a or enroll in part B. This benefit is available through private prescription, drug plans, or Medicare advantage plans
a reinstatement condition
Proof of insurability
which of the following is a reinstatement condition
Proof of insurability
What is the primary reason for buying an annuity
Provide future economic security
Accidental Death Rider
Provides an additional death benefit if cause of death is accidental ‒ Multiple indemnity - for example, 2x or 3x (Double or Triple Indemnity) ‒ Death must occur within 90 days after accident ‒ Death Benefit (referred to as Principal Sum) ‒ Inexpensive
premiums paid that exceeds 7.5% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans?
Qualified Long-Term Care plan
An insurance claims settlement practices are regulated by the
State insurance departments
which of the following actions is required by a producer who is replacing an existing life insurance policy
Submit to the replacing insurer a list of the policies to be replaced
Which of the following actions is required by a producer who is replacing an existing life insurance policy
Submit to the replacing insurer list of the policies to be replaced
Which of the following describes a person who is not acceptable by an insurer at standard rates, because of health, history, occupation, or hobbies
Substandard risk
Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity?
Temporary annuity certain
Part B
Voluntary program designed to provide supplementary medical insurance to cover physician services, medical services, and supplies, not covered under Medicare part a
Chris is an insured bricklayer who suffered his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher he collects a full disability income check every month. How does his policy define total disability
The correct answer is on occupation. The owner occupation, definition of total disability requires that the insured be unable to perform the insurance current occupation as a result of an accident or sickness.
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
The policy may be paid up early by using policy dividends
An example of naming beneficiaries by class would be
To the children born of my union with Ned jackson
Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?
Universal Life
Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this?
Universal Life policy
A partial surrender is allowed in
Universal life
Continued coverage under COBRA would be provided to all of the following EXCEPT:
a covered employee is terminated for gross misconduct would be: former dependent of employee no longer of dependent status terminated employee divorced spouse of employee
what is the period of time referred to that must lapse before monthly disability
a disability insurance elimination period ???
a permanent life insurance policy where the policyowner pays premiums for a specified number of years is called
a limited pay policy
Which of the following employers is required to follow erisa regulations
a local electrical supply compay with 12 employees
the extended term option is
a nonforfeiture option, not a settlement option
A decreasing term policy
a term insurance policy that maintains a level premium throughout all periods of coverage while death benefit decreases
inome taxes may be due when
a whole life policy is surrendered
A medical provider that accepts Medicare Assignment must
accept payment based upon a defined Medicare schedule as payment in full
All of these are valid policy dividend options for a life insurance policyowner EXCEPT
accumulate without interest options: cash outlay to the policyowner reduction in policy premium buy additional insurance coverGe
A policyowner may change two policy features on what type of life insurance?
adjustable life
A person who acts on behalf of the insurer to solicit an insurance
agent
The securities component of index whole life insurance is considered
an effective hedge against inflation
Loss of income insurance provides
an individual the means to replace wages
medical expense insurance would cover
an injury occurring at the insured's residence
a gaurenteed issue policy refers to
an insurance policy with no medical underwriting
Rob has a benefit at work, which enables him to defer his current receipt of income, and haven't paid at a later date, when he will probably be in the lower tax bracket. Which benefit fits this description.
deferred compensation option
An example of a tax-qualified retirement plan would be a(n)
defined contribution plan
An example of a tax-qualified retirement plan would be a(n)
defined contribution plan NOT: 1035 exhcange equity compensation executive index
A producers insurance license may only be revoked by the
difs
a fee for service health insurance plan will normally cover
disease
term life insurance
does not build cash value
Pharmacy benefit covers prescription drugs drive from a list
drug formulary
a pharmacy benefit covers prescription drugs derived from a list called
drug formulary
which of these statements concerning traditional it's is correct
earnings and taxable when withdrawn
Which of these would live in a companies liability to provide insurance coverage
exlcusion
Nonforfeiture Options available to policyowner
extended term insurance cash surrender reduced paid up isnruande
a health care provider claim may be settled using which of the following payment methods
fee for service
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following EXCEPT - additional premiums
financial loss: - loss of earnings - out of pocket expenses - repair and replacement costs
And ensure his ability to make unpredictable payouts to policy owners is called
liquidy
Which policy feature makes a universal life policy different from a whole life policy
flexible premium schedule
A variable universal life policy has three key elements
flexible premium, death benefit, and the choice of how the cash value will be invested
an insurer may exclude coverage for pre existing medicare
for up to 6 months
Premium mode is a term used to describe the
frequency of the premium payment
all health plans that provide coverage to family members must provide coverage for newborns
from the moment of birth to 31 days adter
A group disability income plan that pays tax free benefits to cover employees is considered
fully contributory
An insured status under SS can be described as
fully insured
When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?
gains
An annuitant is guardanteed to NOT outlive their benefits with an
guarenteed lifetime withdrawl benefit
A group policy
has a master contract and certificate of coverage
Group life insurance - in the event of an employee termination the employee
has the right to convert coverage into an individual policy within 31 days (the conversion period)
when a child reaches a certain specified age under a childrens term rider
he or she is eliminated from coverage
credit accident and health plans are designed to
help pay off existing loans during periods of disability
Huamn life value calculator
helps you assess the financial loss your family would incur if you were to die today - a method of determiningt the level of funds required for ongoing support int the event of the breadwinners death
HMO plans are required to provide
home health care
abc insurance company is entering each applicant who purchases insurance through their agency into a drawing to win a free trip. this is an unlawful insurance practice known as
illegal inducement
Mortality costs are considered an expense factor
in an insurance program
A payer benefit rider waves of premium only
in connection with juvinielle insurance
Backdating
in order to save on premiums, a policy can legally be backdated up to 6 months
policy benefits are found
in the declarations
which of the following is not taken into consideration when determining eligibility for medicare benefits
income
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's
income period
How is the cost of a policy affected when a policyowner pays premiums more frequently?
increases
Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid?
individual
a partial surrender allows the policy owner to withdraw the policy's cash value
interest free
the settlement option that allows proceeds to remain with the insurer and earnings to be [aid to the beneficiary on a monthly basis is called
interest only
the settlement option that allows proceeds to remain with the insurer and earnings to be paid to the beneficiary on a monthly basis is caleld
interest only
an example of a primary care physician would be a
internist
A life insurance policy most often becomes effective when the
intial premium is collected and policy is issued
The maximum length of time an insurer can defer payment of a cash surrender value of a life insurance policy or annuity
is 6 months
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan
is called collateral assignment
According to HIPAA, one of the insured individual leaves an employer, and immediately starts working for a new company that offers group health insurance the individual
is eligible for coverage upon hire
the policy feature that makes unviersal life different from whole life insurance policies
is its flexible premium schedule
Covering entry level employees with life insurance to protect the business
is not an approproate buisess use
the provision that the policy and a copy of an application is endorsed upon or attached to the policy when issued
is the entire contract provision
which of the following would disqualify a company's retirement plan from recovering favorable tax treatment
it is temporary
Which type of life insurance is normally associated with the payer benefit rider
juvenile insurance
The time limit for filing a claim disputes address in which provision of an accident and health health
legal actions
Which contract element is insurable interest a component of
legal purpose
insurance interest is a component of
legal purpose
Producer commissions may NOT be paid to
licensed producers not appointed by an insurer
Which of these characteristics of an applicant is not taken into consideration when assessing risk for disability coverage
number of children are considered: - health - gender -occupation
caught a disease unique to the trade in which he was exposed to
occupational disease
if an insurer does not pay on a disability claim, how many days after the written proof of loss
paid within 60 days after reciept of proof of loss by the insurer
a nonforfeiture provision in a cash value life insurance policy allows a policy owner to terminate the policy in return for a
reduced paid up policy of the v same type
An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made?
refund annuity
the life & health guarantee association is used to
rehabilitate insolvent (financially incapacitated) insurers
In the state of MI, a licensed producer
represents the insurer
Under the subrogation clause, legal action can be taken by the insurer against the
responsible third party
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?
results
an annuity is primarily used to provide
retirement income
A life insurance policy owner does not have the right to
revoke an absolute assignment
a life insurance policyowner does MOT have the right to
revoke an absolute assignment
an endorsement found in an insurance plan which modifies the provisions of the policy is called
rider
Who were Keogh plans designed to provide pension benefits for?
self-employed
a nonparticipating company is sometimes called an
stock insurer
An insurer has the right to recover payment made to the insured from the negligent party. These rights are called
subrogation
pays on the death of the last person in a multiple protection policy
survivorship
Distributions from a Health Savings Account (HSA) for qualified medical expenses are
tax free
Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?
taxable income
term insurance is appropriate for individuals seeking
temporary protection and lower premiums
respite care is able to provide
temporary relief to the patient's primary caregiver
aleatory
term that describes the fact that both parties of a contract may not receive the same value
the types of life insurance generally used to cover key employee indemnification are
term, whole, and universal life insurance
When an immiediate annuity is funded with a single premium
the annuitant may begin recieving payments after 1 month
when offering s health benefit plan to small employers
the carrier must offer at least the standard plan
Converting a group plan to permanent life insurance requires
the conversion being applied for within 31 days of termination
pretreatment estimate
the cost of dental services may be required whenever the patient requires dental treatment
a whole lifei nsurance policy where the premiums are paid up after 20 years
would be considered a limited pay lifeinsurance policy
a family term rider allows both spouse and child to be added
to the pirmary insureds coverage
According to the Taft-Hartley Act, group insurance premium payments made by an employer MUST be paid to the
to trust
A partial surrender allows the interest sensitive life policyholder
to withdrawal the policy's cash value interest free
a life insurance policy sold in michigan may be contested by the insurer only during the first —- yrs if the contract
two
A life insurance policy that is subject to a contract interest rate is referred to
universal life
Under a Traditional IRA, interest earned is taxed
upon distribution
"Maximum benefits" refers to the
upper limit of the total lifetime benefits the insurance company will pay
Disability income policy with the lowest waiting period and lognest benefit period
would have highest premium
an advantage of a children's term rider is the ability to convert to permenandt insurance without evidence of insurability
ya
10 year level term life
the premiums and the face amount will remain constantt for the 1-0 year period
resorative dental
the procedure for restoring the function and integrity of a missing tooth structure ie crowns fillings and bridges
The marketing of Medicare Supplements is regulated to prevent the sales of excessive insurance inaccurate policy comparisons and failure to display notice of limitations to the buyer
the producer who solicits the application is primarily responsible for determining the appropriateness of a medicare supplement policy
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires,
the protection ends
when the structure and flexibility of a universal health policy are combined with investment choices
the result is a variable universal life policy
with a whole life policy
the shroter the payment period, the higher the annual premium
survivorship life insuance polcieis are useful in estate planning because
they can provide money to pay taxes on assets
there is no federal income tax on life insurance proceeds if you recieve the proceeds under a life insurance contract
as a beneficiary
The insurance carrier has become responsible for
assesbling the policy forms for the insured persons
open enrollment for medicare supplements
begin at age 65
the results clause states the insurer is excused from paying the amount only if the death is a result of war
- killed in an accident while on leave from military
grace period
1 month in michigan. a time in which the policy remains in force after a premium is due, but not paid IF AN INSURED DIES DURING GRACE PERIOD, DEATH PROCEEDS WILL STILL BE MADE MINUS THE PREMIUM DUE
Kathy pays a monthly premium on her health insurance policy. How long is her grace? Period.
10 days
for individual health insurance, coverage for pre existing conditions may be excluded for up to ___ months after issuance of the policy
12
How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability?
12 months
How long was an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security total disability
12 months
XYZ insurance company recieves satisfactory proof of loss for a claim. If XYZ does not pay the cliam within 60 days of reciept, the isurer must pay simple interest of ___ per annum
12%
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium?
14 day waiting period / 10 year benefit period
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim.
15
a producer is hired to sell insurance for an insurer. Upon submission of agency contract application, a producer must be appointed by the insurer within ____ days
15
what is the period of time referred to as the great inflation
1965-1982
A life insurance policy sold in michigan may be contested by the insurer only durig the first
2 yeras of contract
Michigan legal action can be taken for up to blank years against insure for failure to pay health insurance claims after proof of loss was submitted
3
If an insured has multiple policies with one insurer that gives the insured benefits that exceed the companies allowable maximum how much will the policies pay?
???
Whcih of the following is a provision in an interest sensitive life policy which allows the policyowner to withdraw the policys cash value interest free
???
When managing a health insurance plan for a group, insureres administrative cost of each insured person
???
when underwriting an individual health insurance policy
???
which of the following is described when a selected group of practitioners in a certain area agrees to provifr services at a pre arranged cost
???
An early withdrawl before age 59.5 fromo a qualified plan
???? early/premature distributions individuals must pay an additional 10% early withdrawl tax unless an exception applies
Of the following dividend options, which of these is taxable?
Accumulation at interest
Of the following dividend options, which of these is taxable?
Accumulation at interest not - reduction of premium, one year term, paid up additions
which of these is not a qualifying event for medicare
Falling below the federal poverty level
which of the following is considered to be the period when the accumulated value in an annuity is paid out
Annuitization phase
Cost of Living Adjustment Rider (COLA)
Automatically increase death benefit (based on Consumer Price Index, or CPI)
Purpose of the coordination of benefits provision in group accident and health plans is to
Avoid overpayment of claims
Maria 👸 has a PPO and receive care of him an out of network provider which of the following is a likely result
Care is covered
The coverage, conditions, and limtations in the amster plicy of a group contract can be found in which document
Certificate of coverage and benefits
The following is a requirement for any change in an insurance application
Change must be initialed by the applicant
Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?
Child term rider
one of the most important considerations when replacing health insurance would be the
Exclusions on a new policy
XYZ Company has applied for group health insurance for its employees. What information would the insurer's underwriters likely use to determine the appropriate coverage and final premium rate given to the group?
Experience rating - system used to estimate how much a specific group with have to spend on medical care
How is Medicare Part B funded?
General tax revenue and user premiums
Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability
Guaranteed insurability rider
what medical plan requires the subscriber to chose a PCP who authorizes referrals (gatekeep)
HMO
health insurance will typically cover which of the following perils
Injury due to accident
The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?
Insurable interest can be based on the love and affection of individuals related by blood or law
Employer pays 75, insured pays 25
Insured must pay taxes on the 75 % of the benefits recieved
What is the purpose for having an accelerated death benefit on the life insurance policy?
It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill
which of these is not considered to be a common life insurance nonforfeiture option
Life income annuity
Low frequency diseases can be exclusively covered by what kind of health insurance policies?
Limited policies
Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to its participants
MEWA - multiple employer welfare arrangment
What is involved when a life insurance policy has been backdated
Making the policy effective on an earlier date than the present
which type of plan would be most appropriate for an individual on medicare and is concerned that medicare will not pay for charges exceeding the approved amount
Medicare supplement Plan F
Group health plans may deny participation based upon
Members part-time employment status
When are group disability benefits considered to be tax-free to the insured?
When the recipient pays the premiums
How does one become eligible for part D
Must have Medicare coverage
in a whole life policy nonforfeiture options are: reduced paid up insurance extended term insurance cash surrender
NOT interest only
Joanne has 100,000 whole life policy with an accumulated 25,000 of cash value she would like to borrow 15,000 against the cash value which of the following statements is TRUE?
Net death benefit will be reduced if the loan is not repaid
When an insured has a major medical plan with first dollar coverage how does this imapct the benefits paid
No deductible payment is requried
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?
No tax payment needed
All of the following plans allow for employee contributions to be taken on a pretax basis except: - health reimbursement arrangement plan - employers contribute to HRAs, not employees
Ones that do allow: section 125 cafeteria premium only plan
which of the following is an example of a producers fiduciary duty
Recording receipt and remittance of premiums due to the insurance company
A policy owner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
Reduction of premium dividend option
A policy owner may exercise which of these different options that uses the dividend, pay all or part of the next premium due
Reduction of premium dividends option
Statements by an applicant concerning personal health, history, family, health, history, occupation, and hobbies are referred to as
Representations
Under a contract of adhesion
The contract has been prepared by one party, parentheses insurance company, parentheses with no negotiation between the applicant and insure. The applicant adheres to the terms of the contract on a take it, or leave it bases when accepted
When calculating the amount of life insurance needed for an income earner, what Hass to be determined when using the needs approach
The families, financial objectives of third income earner were to die, or become disabled
When a preferred provider organization (PPO) insured goes out-of-network, which of the following actions occur?
The insurer will pay a reduced amount
Common disaster, provision states that it's a beneficiary dies from the same accident as the insured individual
The insurer will proceed as if the insured outlived the beneficiary, this allows the proceeds to go to the contingent beneficiary
Which of the following typically does not provide a form of managed care? -Major medical indemnity plan
The ones that do provide a form of managed care: PPO Point of service plan HMO
Which of these would be the best example of a limited pay life insurance policy
Whole life policy with premiums paid up after 20 years
A 70-year old insured individual has suffered from kidney failure for the past 24 months. She is covered by her spouse's large-group employer plan. How will Medicare be utilized in this situation?
Will be the secondary insurer and pay for claims not fully covered by the group plan
How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company?
With a usual, customary, and reasonable fee
Loans obtained by a policy owner against the cash value of a life insurance policy
Would not be treated as taxable income
Events or conditions that increase the likelihood of a loss occurring are referred to as
a
exclusion
a condition which limits the company's liability to provide coverage
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in?
accumulation period
Group dental plans will frequently place a limit on annual benefits in order to minimize
adverse selection
What does the group life underwriting risk selection process, help protect insurance companies from
adverse selection
a noncontributory health insurance plan helps the insurer avoid
adverse selection
The Reduction of Premium Dividend Option
allows a policyowner to use the dividend to pay all or part of the next premium due on the policy
an alternative to a life settlement is
an accelerated rate benefit rider
Conversion is when
an insured idividaul changes his or her gorup insurance to an individual policy with the same isurer at the termination of employment
After an initial notice regarding privacy policies and practices is provided..
an insured must recieve these notices on an annual basis
who may terminate a producers appointment
an insurer
which of the following clauses allows the insurer the unrestricted right
an optional renewability clause allows an insurer the unrestricted right to terminate coverage at any anniversary or at any premium due date
The factor used most often when underwriting a disability income policy is
annual earnings
Fixed period settlement options are considered to be a form of a(n)
annuity
If a buisness pays the premium as a tax deductible expense
any benefits paid will be fully taxable
which of the following is included in the entire contract, according to the entire contract provision
application
which of the following is included in the entire contract according to the entire contract provision
application & policy are what the entire contract consists of
all of these are characteristics of major medical policy, except -Elimination period
are: Large, benefit, maximums, deductibles, coinsurance
Which of the following is ineligible to participate in a section 125 - an s-corp owner with a greater than 2% share - Shareholders with greater than 2% of an s corp, llc, parternship, or sole proprietorship are not eligible to participate in any aspect of a section 125 plan. Owners of a c corp are eligible, but they must hold up to the non discrimination rules
eligible: key employee in a c corp highly compensated employee in an s corp a c corp owner with a greater than 2% share
in an employer-sponsored group accident and health plan( a master contract is issued to the
employer
the ____ reserves the right to renew a small employer health pla
employer
which of the following would be considered a possible applicant and contract policyholder for group health benefits
employer
group policies are most common for
employers
small employer
employes between 2-50 ppl or at least 50% of its working days during the preceding calendar year. an employee is to work at least 17.5 hours in a normal week to be eligble
The limited period of time given to all members to sign up for a group health plan is called the
enrollment period
The type of policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index
equity index whole life
a common use for decreasing term life insurance
house mortgage
the death benefit would NOT be subject to
income tax under a modified endowment contract
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn.
income. when a beneficary inherits a taditional IRA, an income tax is paid when money is withdrawn
The conversion privilege under a group life plan allows an employee to convert to a(n)
individual plan upon termination
coverage for newborns includes
injury and sickness, including birth defects
When an insurance appointment with an agent is terminated the party that must notify the agent of the termination is the
insurer
All the following are considered to be nonforfeiture options available to a policy owner except reduction of premium
options: extended term insurance cash surredner reduced paid up insurance
apparent authority
is the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Upon receiving a producer complaint, the Commissioner may immediately
issue a cease and desist order
Someone needing custodial care at home would require which type of coverage?
long term care coverage
which of these would NOT be considered a presumptive disbaility
loss of a leg or arm WOULD BE: loss of vision and speech loss of hearing loss of leg AND arm
Under Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as
loss of income
The election of cobra for continuation of health coverage will
maintain the same coverage and increase premium
Backdating on an insurance policy is the practice of
making the policy effective on an earlier date than the present
In contrast to a guaranteed renewable policy, a noncancellable policy
may never raise premiums
Index whole life insurance contains a securities component that acts as a(n)
means to lowering taxes on earnings
The focus of a major medical insurance is
medical and hospitalization expenses
Which of the following is Medicare part B also known as
medical insurance
a guarenteed issue insurance policy has o
medical underwriting
Part C
medicare advantage, offers a variety of managed care, plans, a private fee for service plan, and Medicare specialty plans. The specialty plans provide services that focus on the management of a specific disease or condition.
Training personal information about a client without having a legitimate reason to do so
minimum penalty is 10,000
Tara the producer is delivering a specified disease insurance policy to a new policyowner. Upon delivery, she may be expected to collect all of the following EXCEPT a(n)
modified application with a new signature may be collected: initial premium sighed impairment rider acknowledgement good health statement
Duties of replacing insurance companies
must allow the owner to return the policy within 30 days after delivery for a full refund
a notice to buyer
must be on the first page of each long-term care policy delivered in. It explains that some long-term care costs may not be covered.
fraternal benefit society
non for profit -without capital stock -exist for the benefit of its members -incorporated
disability income plans, which requires that the insurer can never change or alter Premium rates are usually considered.
noncancellable
a whole life policy option where extended term insurance is selected is called
nonforfeiture option
increasing teh death benefit by using one of the nonforfeiture options is
not an option in an adjustable life policy
exclusions & limitations
on the basis of alzheimer's is not permitted. limits and exclusions may be placed upon: preexisting conditions alcoholism / drug addiction war or acts of war participation in felony, riot or insurrection suicide of self inflicted aviation
which of the following is not an example of utilization review
ongoing inspection of accident prone individuals is: monitoring length of stay, monitoring appropriate of care, setting a hospital release date for a patient
Which of these is not considered to be a nonforfeiture option in a whole life insurance policy - interest only
options included: reduced paid up insruance extended term insurance cash surredner
A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
partial disability
a provision that allows a policyowner to withdraw a policy's cash value interest free is an
partial surrender
decreasing term insurance is normally used to
pay off a mortgage balance in the event of death of the insured
if a premium is required to cover the newborn
payment is needed within 31 days
mortality is calculated by using a large risk pool of
people and time
The cause of loss
peril
Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?
period certain
in what form do disability income polciies typically pay benefits
periodic income
to prevent adverse selection in a group dental expense plan
plan may require: probationary periods, waiting p, evidence of insurability, or limits on annual benefits
The accumulated cash value of a whole life insurance policy becomes the
policy loan value upon which the insured may borroe
a double indemnity rider
policy requiring insurer to pay twice ordinary face amount if death is accidental.
Medicaid is a government funded program designed to provide healthcare to
poor people
Coronation of benefits regulation, applies to all of the following plans, except
ppo
failing to meet the seven pay test results in
pre death distributions likely to become taxable
the tax consequence of a modified endowment contracts is
pre death distributionsa re likely to become taxable
Andee, the annuitant dies before the annuity start day, which of the following is a true statement
premiums paid plus interest earned is returned to the beneficiary
modified whole life premiums are distinguished by
premiums that are loweer than typical whole life premiums during the first few years and then higher than tyical thereafter
I rehabilitation benefit is intended to
prepare the insured to return to employment
claims payable to a disability income insured, even when the insured can continue to work, are the results of a
presumptive disability
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
provide evidence of insurability
The two major actions required for policyholder to comply with the reinstatement clause are
provide evidence of insurability, pay past due premiums
Medicare part A
provide specified in hospital, benefits, and related benefits. All workers covered by social security, finance its operation through a portion of their tax.
A family term insurance rider
provides a death benefit if the spouse of the insured dies
When comparing an HMO to a PPO, the PPO
provides a greater choice of providers PPO service may be covered out of netowkr
an indemnity plan
provides the insured a specific dollar amount for services
which of these is not considered to be a purpose of an annuity - annuties are intended to create an estate
purposes: -intended to liquidate an estate - intended for the tax free growth of principal - annuities are intended to distribute accumulated principal
which statement is correct concerning classification of risks
r
The role of the federal government was expanded when Medicaid was established by allowing the state to
receive matching funds to expand public assistance programs
premium payments for universal life policy are mot used for
separate account investments
health insurance involves two perils, accident and
sickness
This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes
the entire insurance contract between the parties
the word level in level term describes
the face amount
A Medicare supplement basic benefit is
the first 3 pints of blood per year
per capita is a method of life insurance distribution using total number of individuals.
this means that all living members that are identified in the life insurance policy will recieve an equal amount of the life insurance proceeds. using per capita distribution means that if one of the beneficiaries becomes decreased before the insured, then the other beneficiaries will simply have their share increased accordingly
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty
this transcation is called a 1035 exhcange -allows for rollover of a non qualified annuity to a new annuity or life policy of equal or greater value
Funding for Medicare Part B is partially provided by
user premiums
A securities license is required for a life insurance producer to sell
variable life insurance
variable whole life policy has cash values that
vary according to the investment performance of common stocks
what is the primary factor that determines the benefits paid under disability income policy
wages
Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an example of which of the following?
which
policy owner dividends normally accumulate
with interest
written proof of any loss must be given to the insurance company
within 90 days
Limited pyament insurance is characterized by premiums that are fully paid up
within a stated period, after which no further premiums are required
A joint life insurance policy covers the lives of two people and is payable upon the first death
yea
a universal life policyowner must receive a notice of cash surrender value at least every
year
After proof of loss, no imitation of of legal action can be taken before 60 days or after 3 yesrs
yes
The right to select the investment which will provide the greatest return pertains only to variable universal life insurance.
yes
a group health policy must be continued for an employee for at least 6 months after the insurance has been cancelled
yes
the corridor is the gap between a universsal life policys total death benefit and the policys cash value
yes
