Quizlet Life and Health Questions for Exam 2023

gets more and more expensive every time it is renewed

A renewable life insurance policy

is eligible to participate in an employer-sponsored group health plan

A self-employed person may deduct the IRS-approved percentage of premiums paid for health coverage if she

the cash value equals the death benefit

A universal life contract expires when

an appointment

A written agreement in which an insurer authorizes a producer to sell insurance policies for it is called

certificate of authority

An admitted insurer must have which of the following before transacting insurance in the state?

twisting

An agent speaks disparagingly of a competitor while trying to sell an insurance policy. What unfair marketing practice has the agent committed?

noncontributory plan

In noncontributory group health plans, how many eligible employees must be covered by the plan?

Enroll within a specified eligibility period

In order to obtain group health insurance without providing evidence of insurability, what do eligible individuals generally have to do?

The consideration in a life insurance contract

In the insurance industry, human life value refers to which of the following

the frequency of premium payment

In the insurance industry, mode of premium payment refers to

will not be subject to tax

Sherwood has no valid will but has named his estate as the beneficiary of his life insurance policy. As a result, he can expect that the policy proceeds

the preretirement "blackout" period

The income period when a surviving spouse does not qualify for Social Security survivor or retirement benefits is called

the policyonwer

The party normally paying the premiums for the policy and retaining all rights, values, and options is called

applying for a certificate of authority

Transacting insurance includes all of the following EXCEPT

pure life annuity

What type of annuity settlement arrangement stops making payments when the annuitant dies?

The loan value of a policy is equal to the current cash value, less the amount of interest determined by the loan interest rate stated in the policy.

Which of the following statements about life policy loans is NOT correct?

Adopting emergency regulations when necessary

Which of the following would NOT be a primary objective of insurance regulation?

are lower in the first few years

With a modified premium whole life contract, premiums

policy proceeds paid in lump sum

With respect to life policies, all of the following are subject to federal income tax EXCEPT

deducted from the face amount of the policy before the proceeds are paid by the insurer

Zelda dies with the premium still due on her life policy, but before the grace period has expired. Zelda's beneficiary can expect the amount of the past-due premium to be

a defined benefit plan only

a 401(k) plan can be

may be created while the insurer is till alive or after the insurer's death (inter vivos and testamentary)

a life insurance trust

cannot meet its financial obligations

an insolvent insurer is one that

will suffer a premium increase

An insured who signs a fraudulent claim form

aleatory contract

The fact that Elmo could die after paying just one premium on his life insurance policy and still have the entire face amount paid to his beneficiary is an example of

when a policyowner stops paying premiums on a permanent policy, its cash value accumulation or equivalent must be made available to the policyowner

The term nonforfeiture values refers to the fact that:

an optionally renewable policy

A health insurance policy that the insurer may choose not to renew, but only on the premium due date is called

income in respect of a decedent (IRD)

A qualified retirement plan distribution caused by the plan participant's death is considered to be

59½

A qualified retirement plan distribution is considered to be premature if made before the participant is age

2 years

According to the Time Limit on Certain Defenses provision, unless an insured has made fraudulent misstatements, a health policy is incontestable after

issue the policy with a probationary period after which the insurer may continue or cancel the policy

All of the following are alternatives an insurer has when asked to insure a substandard risk EXCEPT

coverage of Alzheimer's Disease

All of the following are characteristics of most long-term care policies EXCEPT

assigning dividends to pay off a mortgage

All of the following are dividend options EXCEPT

the insurer may increase the premium rate after the policy is in effect, provided it does so by classes of insureds

All of the following statements about noncancelable health policies are true EXCEPT

the producer must be knowledgeable about the insurance policies, but need not be concerned with offering how these polices can be used to solve the general public's needs

All of the following statements regarding an insurance producer's fiduciary responsibility are correct EXCEPT

all the state's public school teachers

All of the following would likely be eligible for group health insurance EXCEPT

money held for those policyowners who have claims but have not yet filed them

An insurance company's unpaid claim reserve can be defined as

disability insurance policy

An insurance policy that provides partial replacement of earnings when the insured is unable to work because of a disabling injury or illness is known as

guaranty associations

Associations organized to protect claimants, policyholders, annuitants, and creditors of financially impaired insurers are known as

contracts of adhesion

Bart is interested in purchasing an insurance policy. He has reviewed 5 different policy forms and has found fault with each one. Unfortunately, he is unable to negotiate changes in the basic policy provisions. This is because insurance policies are

immediate and fixed

Ben invests in an annuity that begins making payments of $2,500 a month for as long as Ben lives. Ben's annuity is

the life income, 10 years certain option

Bob wants a life policy that provides his wife Sue payments for life. If Sue dies before 10 years have passed, their daughter Mary will continue to receive the payments until the end of a 10-year period. Bob's choice is

the cash value of the policy itself

Collateral for a life policy loan is

45

Damon purchased a 10-pay life policy at age 35. He can expect it to be paid up by age

will subtract the amount of the outstanding loan and pay $240,000 to the beneficiary

If Desdemona is insured by a life policy with a face amount of $250,000, but which has an outstanding policy loan of $10,000 at her death, the insurer

45

If an application for reinstatement of a policy is filed by a policyholder, but the company takes no action on the reinstatement, the policy is automatically reinstated after how many days?

tax-deductible to the employer

Premiums fully paid by an employer for employee group health insurance are generally

exclusions

Riders that modify the life insurance protection that is offered and that permit a company to accept an otherwise unacceptable risk are called

case management

Second surgical opinions, precertification, concurrent and retrospective reviews, and outpatient/ambulatory services are all elements of a cost-containment system commonly known as

a payroll tax paid by employers and employees equally

Social Security disability benefits are financed by

an insurance counsultant

Someone who advises an insured, beneficiary, or anyone with an interest in a life or disability policy and charges a fee for this advice is

6 months

Susan is receiving continuing disability benefits and will for years to come. Her insurer, according to the Notice of Claims provision, can require her to give notice that the claim is continuing as often as every

enabling the Commissioner to make necessary changes in the Code

The Insurance Code is composed of provisions allowing all of the following EXCEPT

no medical exam is required

The advantage of enrolling in a group health insurance program during the eligibility period is that

the agent's report

The applicant for an insurance policy must sign all of the following EXCEPT

the amount paid to the insured for dismemberment or loss of sight

The capital sum in an accident policy is

dividends

The cash value of a permanent life insurance policy may be used for all of the following EXCEPT

refund life annuity

The type of annuity that guarantees to pay total income at least equal to the purchase price of the contract is a

the level premium and it's used for level and decreasing term policies

The type of premium for term life insurance that remains the same throughout the policy period is

a fee for each service

The usual payment arrangement under a Preferred Provider Organization contract is

Restoration may occur automatically after a specified dollar amount of benefits has been exhausted.

Under what circumstances do major medical policies usually provide for restoration of benefits?

If the policyowner dies or becomes disabled prior to the insured reaching either age 21 or 25

Under which of the following circumstances will the payor rider waive premiums and allow a life policy to remain in force?

per stirpes

Vanessa's policy on her life names her 3 brothers as beneficiaries to share equally in the proceeds. If any of the brothers predeceases Vanessa, that brother's share will be passed on to his child. Vanessa's beneficiary designation is known as

Interest paid to the policyowner on the cash value accumulation of a permanent insurance policy

What is a life insurance policy dividend?

It gives consumers the right to question reports made about them by investigative agencies and get false information corrected.

What is the purpose of the Fair Credit Reporting Act?

no deductible applies

When a major medical policy provides first dollar coverage it means

fiduciary

When an agent promptly forwards the client's premium to the insurer, the agent is acting in what capacity?

by insuring the excess with other companies through a reinsurance agreement or treaty

A company may write insurance in excess of its retention limits

corridor deductible

Some major medical policies begin with basic first dollar coverage that pays up to its limits, then the insured must pay a certain dollar amount of expenses before the major medical portion steps. What term applies to the dollar amount the insured must pay between the basic policy and the major medical coverage?

protect policyholders against the insurers inability to pay claims

The purpose of the Guaranty Association is to

the total amount paid over the years will be greater than the face amount of the policy (due to interest earned)

When either the fixed period or fixed amount option is selected for a life policy,

payment of claims

Which health insurance policy provision allows the insurer to pay accrued indemnities that remain unpaid at the insured's death to either a beneficiary or to the insured's estate?

lump-sum cash

Which life insurance settlement option is considered the default option if no other option is elected?

The time during which payments are made to the annuitant

Which of the following best defines the annuity period?

minimum number of patients

Which of the following is NOT a federal requirement that must be satisfied by a Health Maintenance Organization (HMO)?

more policyowners

Which of the following is NOT a source of life insurance policy dividends?