Insurance Note Part 3

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What percentage of individually owned disability income benefits is taxable?

It allows the insured to return to carefully look over the policy before applying for it.

What statement best describes the free look provision?

The insurer may delay the payment of this claim for up to 6 months

When Linda suffered a broken hip, she notified her agent in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled ?

Collect payment at time of delivery

When delivering a policy, which of the following is an agents responsibility?

Third-party ownership

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

Nonforfeiture

Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

An independent examination as often as reasonably required

While a claim is pending, an insurance company may require

Proof of insurability is not required

A couple owns a life insurance policy with a Children's term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to covert to permanent insurance in the near future. Which of the following will she need to provide fir proof of insurability?

Is renewable at the insured's option to a specified age

A guaranteed renewable disability insurance policy

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

All of the following actions can be described as twisting EXCEPT

$102

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?

Foreign

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Limited- pay life

An insured has a life insurance policy that requires him to only pay premiums for a specified number of ears until the policy is paid up. What kind of policy is it?

Elimination period

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written with a 30 day

They are taxed as income

An insured makes regular contributions to his Health Savings Account. How are those contributions treated i regards to taxation?

Reduction of Premium

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next tear's premium, thus reducing it is $900. What option does this describe?

Inspection report

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

Employees

For a retirement plan to be qualified, it must be designed for the benefit of

Adverse selection

Group health insurance is characterized by all of the following EXCEPT

Join the group after the effective date

In a group health policy a probationary period is intended for people who

The customer's associates, friends, and neighbors provide the report's data

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

COBRA

In the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months?

Premiums paid by an employer on a 30,000 group term life insurance plan for employees

In which of the following instances would the premium be tax deductible?

Taxed as a capital gain

Life insurance death proceeds are

Fiduciary responsibility

The requirement that agents not commingle insurance monies with their own funds is known as

At the time of application

To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?

15 months

What is the maximum period of time a temporary license can be in force?

To provide continuation of coverage for terminated

What is the purpose of COBRA ?

Application

What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?

Life income with period certain

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Both the principal and interest will be liquidated over a selected period of time

Which of the following best describes fixed-period settlement option?

They have a guaranteed minimum interest rate

Which of the following is True for both equity indexed annuities and fixed annuities?

The policyowner is entitled to policy loans

Which of the following statements is correct regarding a whole life policy ?

Transacting insurance

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?

Fully insured status

Which one of the following is an eligibility requirement for Social Security disability income benefits ?

Grace period

Which required provision allows an insured to pay overdue premiums within 30 days for a life insurance policy to remain in effect?

The Agent

Whose responsibility is it to determine if all of the questions on an application have been answered?

The employer

If a business wants to buy a disability income policy on a key employee, which of the following is considered the beneficiary ?

Erase the incorrect answer and record the correct answer

If a change needs to be made to the application for insurance, the agent may do all following EXCEPT