Exam 4 corrections

Once a mail-order solicitation has been filed, how long may it be used?

2 years

How many eligible employees must be included in a contributory plan?

75%

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT

being age 65

Issue age policy premiums increase in response to which of the following factors?

increased benefits

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

A portion of the benefit up to a limit is tax free; the rest is taxable income.

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

Income tax on distributions and no penalty.

Which of the following entities established the Do-Not-Call Registry?

The federal trade commission

Which of the following statements is NOT true concerning Medicaid?

It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income.

How soon after the due date should the insurer pay the agent appointment fees?

within 30 days

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

Regarding the taxation of Business Overhead policies,

Premiums are deductible and benefits are taxed.

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

one-year-term option

All of the following could own group life insurance EXCEPT

A group needing low-cost life insurance.

Which of the following refers to "own occupation" disability?

Insured is unable to perform duties of the occupation for which he/she was educated and trained.

Who makes up the Medical Information Bureau?

insurers

Annually renewable term policies provide a level death benefit for a premium that

increases annually

A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?

joint and survivor

A participating insurance policy may do which of the following?

pay dividends to the policyowner

Insurance is the transfer of

risk

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

the capital amount in a lump sum