LAH Exam 6

A disability policy where the premiums are due monthly are required a grace period of

10 days

How many employees must employer have for a terminated employee to be eligible for COBRA

20

The superintendent serves a term of ____ years

4 years

How soon can the benefit payments begin with a deferred annuity?

A minimum of 12 months after date of purchase

Which of the following is ineligible to participate in a section 125 plan?

And S Corp. owner with greater than 2% share

Which of these is affected by the frequency of an insurance policy's premium payments?

Cost

Medicare part B covers what?

Dr. charges

Key person disability insurance pays benefits to the

Employer

All of these are responsibilities of the superintendent except

Endorsing insurers

The principle of Insurable interest, in regards to a life insurance contract, is accurately described in which statement?

Insurable interest can be based on the love and affection of individuals related by blood or law

Which of the following statements regarding group disability income insurance is true?

It provides benefits for non-occupational illnesses and injuries

Joanne has $100,000 of whole life policy with an accumulated 25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is true?

Net death benefit will be reduced if the loan is not repaid

How are contributions made to a Roth IRA handled for tax purposes?

Not tax-deductible

The monthly benefit for individual disability income policy is usually limited to a percentage of the insured's income in order to avoid

Over insurance

Which of these factors is not taken into consideration when determining the cost of a long-term care policy?

Personal income

An insurance applicant with a below-average likelihood of a loss is typically considered to be a

Preferred risk

All the following are considered appropriate uses of life insurance for business purposes except

Protecting the business by covering entry-level employees with life insurance

an example of endodontic treatment is a

Root canal

Which of the following is not a type of Medicare advantage plan?

Social Security disability income

Which of these is not a characteristic of the accelerated death benefit option?

The benefit can be offered as a rider not a specific extra cost or may be at no cost

What is a corridor in relation to a universal life insurance policy?

The gap between the total death benefit and the policy's cash value

Which of the following signatures is not required on an individual insurance application?

The insurer

All the following are typically included in a life insurance policy illustration except

The names of the beneficiaries

If the annuitant dies before the annuity start date,

The premiums paid plus interest earned will be given to the beneficiary

When our group disability benefits considered to be tax free to the insured?

When the recipient pays the premiums

Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called

annuity certain

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called

coinsurance

Group health plans may deny participation based upon the

member's part time employment status

A beneficiary change can occur

normally at any time during the policy term

Decreasing term life insurance is often used to

provide coverage for a home mortgage