Simulation Exam GA L&H Insurance

Deferred annuities may be purchased with either a lump sum or periodic payments, but they do not begin the income payments until

sometime after 1 year from the date of purchase

Medicare supplements specifically exclude all of the following EXCEPT

surgical expenses of persons eligible for Medicare

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

taxation on accumulation

All of the following statements about equity index annuities are correct EXCEPT

the annuitant receives a fixed amount of return

A qualified LTC insurance policy must provide compound annual inflation protection to which of the following insureds?

the insured who is 60 years old

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

the policy is owned by the company

Which of the following is TRUE about nonforfeiture values?

they are required by state law to be included in the policy

Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?

5 years

A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?

60

What license or licenses are required to sell variable annuities?

Both a life insurance license and a securities license

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deferred

All of the following are dividend options EXCEPT

Fixed period installments

Equity indexed annuities

Seek higher returns

Which is NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured.

Can an individual who belongs to a POS plan use an out of network physician?

Yes and they may use any preferred physician even if not part of the HMO

An agent is acting ethically in all of the following situations EXCEPT

always representing the insured

LTC coverage may be available as any of the following EXCEPT

endorsement to a health policy

All of the following actions can be described as twisting EXCEPT

explaining to client the advantages of permanent insurance over term and suggesting changing policies

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured has misstated information during the application process. What can they do?

pay the death benefit

Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization?

provide medical services only from physicians in the network