GA LIFE ACCIDENT AND SICKNESS

Credit life insurance is typically issued with which of the following types of coverage

"Decreasing Term". The type of insurance used for Credit life is typically decreasing term, with the term matched to the length of the loan period

An individual who purchases a life annuity is given protection against

"the risk of living longer than expected". A Life annuity offers protection against the risk of living longer than anticipated.

Jay's major medical policy has a $2000 deductible and an 8020 coinsurance clause. If Jay is hospitalized and receives a bill for $10,000 Jay would pay

$10,000 -$2000 = $8000 x 20% = $3600

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a

$25,000 individual whole life policy

C was injured while deep sea diving and requires a hospital stay. C has major medical policy with an 80/20 coinsurance clause and a $400 deductible. What is the maximum C will pay if the covered medical expenses are $2000

$400 +20% of the remaining medical bill = $720

_____ of personal life insurance premiums is usually deductible for federal income tax purposes.

0%

Generally, how long is a benefit period for a Major Medical Expense Plan?

1 year

G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

10 years

Premature IRA distributions are assessed a penalty tax of

10%

What is the maximum Social Security disability benefit amount and insured can receive?

100% of the insured's Primary Insurance Amount (PIA)

What is the minimum number of activities of daily living a deal and insured must be unable to perform to qualify for long-term care benefits

2

And insured must notify an insurer of a medical claim within how many days after an accident

20 days

Insurers may request a hearing within how many days if their policies rejected

20 days

Jay is 35 years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?

20-pay Life

According to the mandatory uniform policy provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?

31 days

V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable?

4 months

Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.

6 months

How long does an individual have two rollover funds from an IRA or qualified plan

60 days

The individual most likely to buy a Medicare supplement policy would be a

68-year old male covered by Medicare

How does a typical Variable Life Policy investment account grow?

A Variable Life Policy has investment values based instruments such as mutual funds, stocks, and bonds.

Which of the following reimburses it's insureds for covered medical expenses?

Commercial insurers

Which of the following correctly explains the actions and agent should take if a customer wants to apply for an insurance policy

Complete the application and review the information with the customer prior to obtaining the customer signature, then send the application off to the insurance company

Insurance contracts are known as___because certain future conditions or ask must occur before any claims can be paid

Conditional

K a place for a life insurance policy on herself and submits the initial premium with the application she's giving a receipt by the agent sitting at the coverage begins immediately if the application is approved what kind of receipt was used?

Conditional

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?

Conditional receipt

Which of these require an offer, acceptance, and consideration?

Contract Offer, acceptance, and consideration are all elements of a contract.

Insurance policies are offered on a take it or leave it bases, which make them

Contracts of adhesion

If its employees share the cost of insurance what type of group life insurance plan with a corporation have?

Contributory

When an employee is required to pay a portion of the premium for an employer/employee health group plan, the employee is covered under which of the following plans

Contributory

Which provision allows the policy owner to change the life term policy to a permanent one without providing proof of good health?

Conversion

When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply

Conversion provision

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges, and the

Cost of insurance

Which statement regarding the missed statement of age provision is considered to be true

Coverage will be adjusted to reflect the insurance true age if a misstatement of age is discovered

K has an accidental death and dismemberment (AD&D) Insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the common disaster clause, if K and her husband are both killed in an automobile accident, where are the death proceeds be directed

Daughter

Which of these types of policies may not have the automatic premium loan provision attached to it?

Decreasing term

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

Deferred In this situation, the type of annuity purchased is best described as deferred.

S is the policy owner of a major medical policy. Their premiums are paid monthly and due on the first of each month. S fails to make Septembers payments and is hospitalized on October 15. When S files a claim for this hospitalization the insurer will likely

Deny the claim, because S failed to pay the premium within the policies 10 day grace period

Which contract permits the remaining partners to buy-out the interest of a disabled business partner?

Disability Buy-Sell

C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?

ABC is the policyowner, C is the insured, and ABC is the beneficiary

Which of the following types of policies pays a benefit if the insured goes blind?

Accidental Death and Dismemberment provision (AD&D)

This option provides an additional death benefit for a limited amount of time at the lowest possible cost is called an

Accidental death and Dismemberment rider (AD&D)

A contract where one party either except or reject the terms of a contract written by another party is called a contract of

Adhesion

Which of the following statements describes what an accidental and health policy owner may not do

Adjust the premium payments

All statements regarding the underwriting process are true except

Aids and HIV testing can be conducted in a discriminatory fashion

Under which of the following circumstances will the benefits under COBRA continuation coverage end

All group health plans are terminated by the employer

T is receiving $3000 per month From a disability income policy in which T's employer head pay the premiums. How are the $3000 benefit payments taxable

Benefits are taxable to T

Which of these is not considered to be a cost connected with an individuals death?

Business expenses

G is an accountant who has 10 employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is

Business overhead expense

Which of these circumstances is a business disability buy sell policy designed to help in the sale of a business

Business owner becoming disabled

A company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT

Change the policy's interest rate

Which rider provides coverage for a child under a parents life insurance policy?

Child term rider

S is covered by a whole life policy. Which insurance product can cover his children?

Child term rider- The means of providing life insurance on the children of a person who is covered by a life insurance policy is by a child term rider.

How are Roth IRA distributions normally taxed?

Distributions are received tax-free

P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?

Endowment at age 70

Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract?

Entire Contract

Which of the following policy provisions Prohibits an insurance company from incorporating external documents into an insurance policy

Entire Contract

Which provision in a life insurance policy states that the application is considered part of the contract?

Entire contract provision

Which of the following is an important underwriting principle of group life insurance?

Everyone must be covered in the groups

Which of these statements about a guaranteed insurability option rider is not true?

Evidence of insurability is required when the option is exercised

And a life insurance policy which future states that the policy will not cover certain risks?

Exclusion

Which of the following is not included in the policy face

Exclusions

An underwriter determines that a life insurance applicants risk should be reclassified due to a health issue. This policy may be issued with an

Extra premium

What does a face amount plus cash value policy pay upon the insurance stuff?

Face amount plus the policies cash value

This type of deductible provision waives the deductible for all family members after some of them have satisfied individual deductibles within the same year:

Family maximum deductible

What action should a producer take if the initial premium is not submitted within the application?

Forward the application to the insurer without the initial premium, The policy will not become valid until the premium is paid

Ass, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

Full benefits are payable under the master contract

And insured is past due on his life insurance premium, but is still within the grace period. What will the beneficiary receive if the insured dies during the his grace period?

Full face amount minus any past due premiums

X is insured with a disability income policy that provides coverage until age 65. This policy allows the insured to change the premium rate for overall risk class assignment. Which of these renewability features does this policy contain

Guaranteed renewable

Hey 66 year old is covered under the group health plan while employed with a business that has 40 employees. If she enjoyed herself while walking in the park, what coverage would be considered primary

Her group health plan, If the employer has more than 20 employees the group health plan generally pays first

S wants to open a tax exempt health savings account. To qualify for this type of account, federal law dictates that S must be in rolled in a

High deductible health plan

Which of the following with a long term care plan typically provide benefits for

Home healthcare

In regards to representations or warranties, which of these statements is TRUE?

If material to the risk, false representations will void a policy

Which is the following statements about health reimbursement arrangements HRA is correct

If the employee paid for qualified medical expenses the reimbursements may be tax-free

How would a contingent beneficiary receive the policy proceeds in an accidental death and dismemberment (AD&D) policy?

If the primary beneficiary dies before the insured

T applied for a disability income policy and has a history of back injuries. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called

Impairment rider

M has a Major Medical insurance policy with a $200 flat deductible and an 80% Coinsurance clause. If M incurs a $2,200 claim for an eligible medical expense, how much will M receive in payment for this claim?

In this situation, $2,200 - $200 deductible x 80% = $1,600.

All of the following statements regarding a tax sheltered annuity (TSA) are true except

Income derived from the TSA is received income tax-free

A 55-year-old recently received a $30,000 distribution from a previous employers 401(k) plan, minus $6000 withholding. Which federal taxes apply if none of the funds were rolled over

Income taxes plus a 10% penalty tax on $30,000

How does an indexed annuity differ from a fixed annuity?

Indexed annuity owners receive credited interest tied to the fluctuations of the linked index

Which of these actions should a producer take when submitting an insurance application to an insurer?

Inform insurer of relevant information not included on the application

Information obtained from a phone conversation to the proposed insured can be found in which of these reports

Inspection report

K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n)

Installment refund annuity

When third-party ownership is involved, applicants who also happens to be the stated primary beneficiary are required to have

Insurable interest in the proposed insured

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

Insured's contingent beneficiary

Which of these needs is satisfied by Adjustable Life insurance?

Insured's need for flexible premiums

Variable annuities may invest premiums in each of the following, EXCEPT:

Insurer's corporate business account

Which health policy clause specifies the amount of benefits to be paid

Insuring

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a

Insuring agreement

A life insurance agreement which circumvents insurable interest statutes is called

Investor - originated life insurance

Which of these arrangements allows one to bypass insurable interest laws?

Investor-originated life insurance (or IOLI), sometimes called stranger-originated life insurance (or STOLI) is used to circumvent state insurable interest statutes. This is done when an investor (or stranger) persuades an individual to take out life insurance specifically for the purpose of selling the policy to the investor. The investor compensates the insured and makes the premiums, then collects the death benefit when the insured dies.

Which of the following actions will an insurance company most likely not take if an applicant, who has diabetes, applies for a disability income policy

Issue the policy with an altered Time of Payment of Claims provision

K is an insured under a life insurance policy owned by a third party. Which of these statements is true?

K has no ownership rights

And architecture firm with stand to lose a lot of money in the event of the death of his project manager. Which type of policy should the firm purchase on his property manager

Key person life policy

T has disability income that pays a monthly benefit of $5000 if T becomes partially disabled, what can he likely expect?

Less than $5000 per month benefit regardless of the cause

Q is looking to purchase renewable term insurance. Which of these types of term insurance may be renewable?

Level

And employer that offers a qualified retirement plan to its employees is eligible to

Make tax deductible contributions to the plan

Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on

March 1st after a 30 day elimination period.

The health insurance program which is administered by each state in funded by both the federal and state governments is called

Medicaid

Which of the following are not managed care organizations

Medical Information Bureau (MIB)

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Modified Whole Life

K by the policy where the premium stays fixed for the first five years. The premium that increases in 6 And stays level there after, all the while the death benefit remains the same. What kind of policy is this

Modified whole life

Periodic health claims must be made at least

Monthly

Which of the following best describes how a preferred provider organization PPO is less restrictive than a health maintenance organization HMO?

More physicians to choose from

Which of the following is true about a qualified retirement that is top-heavy

More than 60% of plan assets are in key employee accounts

A disability income policy that only the policy owner can terminate and which rates never go up is considered to be

Noncancelable

Which statement is true regarding a minor beneficiary

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured

PPO

K own a whole life policy. If K Wants an increasing death benefit to protect against inflation, which dividend option should she choose

Paid up additional insurance

All of the following statements are true regarding a policies grace period, except

Past due premiums are waived

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. Which action will the insurer take?

Pay face amount minus the past due premium

The insured and insurance company will share the cost of covered loss is under which health policy future

Payment of claims provision

Which of these statements concerning an individual straight life annuity is accurate?

Payments are made to an annuitant for life

Which of the following best describes a contingent beneficiary?

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured

The underwriting process involves all of these, except for

Policy loan

Which of these describes a participating insurance policy?

Policy owners are entitled to receive dividends

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

Which of the following information is not required to be included in a whole life policy?

Policy's guaranteed dividend table

Who elects the governing body of a mutual insurance company

Policyholders

Who has the right to change a revocable beneficiary

Policyowner

Which of these statements accurately describes the waiver of premium provision in an accident and health policy

Premiums are waived after the insured has been totally disabled for a specified time period

What benefit does the payor clause on a juvenile life policy provide?

Premiums are waived if payor becomes disabled

Which of the following actions is not possible with a universal life policy?

Premiums may be applied as a credit against income tax

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?

Primary Insurance Amount (PIA)

A medical information report may disclose which of the following

Prior use of marijuana

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the common disaster provision, which of these statements is true?

Proceeds will be payable to K's estate if P dies within a specified time

A primary beneficiary has died before the insured and a life insurance policy a contingent beneficiary is also named in the policy which of the following will occur when the insured dies

Proceeds will go to the contingent beneficiary

And insured covered by life insurance has just died. What will happen if the primary beneficiary had already died for the insured and contingent beneficiary?

Proceeds will go to the contingent beneficiary

The legal action provision of an insurance contract is designed to do all of the following except

Protect the producer

All of these are considered sources of underwriting information about an applicant EXCEPT

Rating Services

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits?

Residual Benefit clause

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

A Group owned insurance company that is formed to assume and spread the liability risks of its members is known as a:

Risk retention group

What does a 401(k) plan generally provide its participants?

Salary-deferral contributions

A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?

Send a notice to the MIB that the applicant was declined

Upon delivery of a rated life insurance policy the producer must obtain each of the following, except

Signed HIPAA disclosure

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

Single Premium

Which mode of payment is NOT used by health insurance policies?

Single Premium

K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments on August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did Kay purchase?

Single premium immediate joint with survivor annuity

Why must an insurance applicant answer all questions on the application?

Statements and representations on the application are part of the consideration for issuing a policy

Which of the following is the reimbursement of benefits for the treatment of a beneficiaries injuries caused by a third-party

Subrogation

Which is the following statements about the classification of applicants is incorrect

Substandard applicants are never declined by underwriters

What kind of life insurance product covers children under their parent's policy?

Term rider

What does a guaranteed insurability rider provider disability income policy owner

The ability to periodically increase the amount of coverage without evidence of insurability

The amount of monthly disability benefits payable under Social Security is affected by which of the following factors?

The amount of the benefits available from other sources

The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is

The cost

K is an agent who takes an application for individual life insurance and excepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective.

The date the agent delivered the policy, collected the initial premium, and obtain a good health statement from the insured

At what point must a life insurance applicant be informed of their right that fall under the fair credit reporting act?

Upon the completion of the application

Which of the following phrases refers to the fees charged by a healthcare professional?

Usual, customary, and reasonable expenses

A business overhead expense policy would cover which of the following as a business owner becomes disabled

Utilities an office rent

In order to sell an ___ Life policy, a producer is required to register with the financial industry regulatory authority (FINRA)

Variable

A life policy with a death benefit in cash value that can fluctuate according to the performance of its underlying investment portfolio is referred to as

Variable Life

Which policy requires an agent to register with the national Association of security dealers (NASD) before selling

Variable life

A(n) __ __ Life policy combines investment choices with a form of Term converges

Variable universal

Term life policies that have the ability to be permanent coverage may do so during a specific time period. This conversation period

Varies according to the contract

At what point does an informal agreement become a binding contract?

When consideration is provided by one of the parties to the contract

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met

All students attending a large university could be covered by

a blanket policy

Group life insurance policies are generally written as

annually renewable term

To be eligible for Social Security disability benefits, an employee must be unable to perform

any occupation

Which of the following medical expenses does cancer insurance not cover

arthritis

A whole life insurance policy owner does not have the right to

change the grace period

What type of group insurance plan involves employees sharing the cost

contributory plan

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

conversion

The Combination of Whole Life and _____ Term insurance is referred to as a Family Income Policy

decreasing

Additional coverage can be added to a whole life policy by adding a

decreasing term rider

Which of the following does Social Security not provide benefits for

dismemberment

Which of the following to Social Security not provide benefits for

dismemberment

Under a trustee group life policy, who would be eligible for a certificate of coverage?

employee

All of these are characteristics of an adjustable life policy, except

face amount can be adjusted using policy dividends

Which of these is not a source of funding for Social Security benefits

federal government

Under an individual health insurance policy, the time limit of certain defenses provision states that non-fraudulent misstatements first become incontestable two years

from the date that the policy was issued

A nonforfeiture clause gives the policy owner

guaranteed values even if the policy has lapsed

Basic Medical Expense Insurance

has lower benefit limits than Major Medical insurance

Which of the following actions require a policy owner to provide proof of insurability in an adjustable life policy?

increase face amount

The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the

initial deductible

Medicare part B does not cover

inpatient hospital services

Quarterly premium payments increase the annual cost of insurance because

interest to the insurer is decreased while the administrative costs are increased

A policy owner's rights are limited under which beneficiary designation?

irrevocable

Credit Life Insurance is

issued in an amount not to exceed the amount of the loan

Which of the following is not a limited benefit plan

life insurance policies

The individual health insurance policy that offers the broadest protection is a

major medical policy

Pre-hospitalization authorization is considered an example of

managed care

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

mandatory income tax withholding on the transfer amount

Which of these is not an element of life insurance premiums?

morbidity rate

Which of these is not considered to be an element of an insurance contract?

negotiating

In an individual retirement account (IRA), rollover contributions are

not limited by dollar amount

An accident policy will most likely pay a benefit for a(n)

off-the-job accident

Insurance policies are considered aleatory contracts because

performance is conditioned upon a future occurrence

A Limited-Pay Life policy has

premium payments limited to a specified number of years

An individual disability income insurance applicant may be required to submit all of the following information, except

spouse's occupation

Which of the following services is not included under hospitalization expense coverage

surgical fees

The premiums paid by an employer for his employee's group life insurance are usually considered to be

tax-deductible to the employer

Which of the following statements about on accumulated interest earned on dividends from an insurance policy is true?

taxed as ordinary income

A level premium indicates

the premium is fixed for the entire duration of the contract

A disability elimination period is best described as a

time deductible

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

to cost

Which of the following is considered an element of variable life policy?

underlying equity investment

When is the face amount paid under a joint life and survivor policy?

upon death of the last insured

A term life policy matures

upon the insured's death during the term of the policy

A(n) _____ Life Policy offers the owner investment and products such as money market funds, long-term bonds in equities

variable

What type of annuity has a cash value that is based upon the performance of its underlying investment funds?

variable

What is issued to each employee of an employer health plan

certificate

Which of the following statements is correct regarding the tax treatment of a lump sum payment paid to a life insurance policy primary beneficiary

All proceeds are income tax free in the year they are received

The consideration clause in a life Insurance contract contains what pertinent information

Amount of premium payments and when they are due

When an insurance application is taken by a producer, which of these statements is true?

Any changes made on the application require the applicant's initials

Which of the following policy features allows an insurer to defer current health charges to the following years deductible instead of the current years deductible

Carryover provision

Whole life insurance is sometimes referred to as straight life. What does the word straight indicate when using this phrase?

The duration of premium payments

What is the underlying concept regarding level premiums?

The early years are charged more than what is needed

The consideration clause in a life insurance policy indicates that a policy owners consideration consists of a complete application and

The initial premium

A policy of adhesion can only be modified by whom?

The insurance company. (A policy of adhesion is best described as a policy which only the insurance company can modify.)

R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits?

Upon satisfying the elimination period requirement

J, an accidental death and dismemberment (AD&D) policy holder, dies after injury sustained in an accident. J's age as stated on the application five years ago was found to be understated by 10 years. Which of the following actions with the insurance company take

The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age

T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take?

The insurer will rescind the policy, deny the claim, and recover all payments made

Which statement regarding the change of beneficiary provision is true?

The policyowner can change the beneficiary

The advantage of reinstating an original life policy is

The premiums are based on a younger age

Which of the following statements is True about most Blue Cross/Blue Shield organizations

They are nonprofit organizations

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is

Time Limit on Certain Defenses

With accidental death and dismemberment policys, what is the purpose of the grace period

To give the policy owner additional time to pay overdue premiums

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

Unilateral Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of enforceable promise.

What type of insurance incorporates flexible premiums and an adjustable death benefit?

Universal Life

Which of the following life insurance policies combined term Insurance with an investment element?

Universal life

Which provision is NOT a requirement in a group life policy?

accidental

A qualified profit-sharing plan is designed to

allow employees to participate in the profits of the company

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policy holders is called:

reserves

Medicaid was designed to assist individuals who are

below a specific income limit

Who is not required to sign a life insurance application

beneficiary

The individual who provides general medical care for a patient as well as the referral for specialized care is known as

primary care physician

Which of these is not a type of agent authority?

principal

Statements made on insurance application that are believed to be true to the best of the applicants knowledge are called

representations