Life and Health Insurance

which of the following is incorrect regarding a $100,000 20 year level Term Policy

at the end of 20 years the policies cash value will equal $100,000 period term policies do not develop cash values

an individual has just borrowed $10,000 from his bank on a five-year installment loan requiring monthly payments. What type of life insurance policy would best be suited to this situation

decreasing term as the face amount decreases as the amount of debt is reduced

what is a definition of a unilateral contract?

one sided only one party makes an enforceable promise

when May hiv-related results be provided to the MIB?

only if the individual is not identified

in the event of a loss business overhead insurance will pay for

rent, utilities and employee salaries are covered

level term

is a term policy that is written to provide a level death benefit for 20 years

which of the following entities is considered the principal?

the insurer issuing a policy

an employee is insured by a group major medical plan that is provided through her employer the employer contributes 75% of the premium and the employee contribute the remaining 25% if the insured received a benefit from this policy in the amounts of 1000 how much of this benefit would be taxed as income?

$0. group medical and dental expense benefits are received income tax free by employee

beneficiary / Jake

Dan and Chris buy a life insurance policy on Dan's life to provide for their teenage son Jake who is listed as the beneficiary. Two years later Dan is killed in a car accident, who would collect the death benefit?

a whole life policy is surrendered for a reduced paid-up policy. The cash value in the new policy will

continue to increase

which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends plus interest and the policy cash value to pay the policy up early?

paid-up option

the guaranteed insurability rider allows the owner to purchase additional amount of Life Insurance without of insurability at all of the following except

purchase of a new home

all of the following are true regarding the Federal Fair Credit Reporting Act except

reports may be sent to anyone who requests one

nonforfeiture values guarantee

that the cash value will not be lost

a health insurance policy May limit the number of Home Health Care visits and other services how many in any continuous 12 month period?

90

which of the following is provided by skilled medical personnel to those who need occasional Medical assistance or Rehabilitation care?

Intermediate Care

an insured receives an annual life insurance dividend check what term best describes this arrangement?

cash option

an gent who knowingly misrepresents material information for the purpose of inducing an insurer to lapse, forfeit, change or Surrender a life insurance policy or annuity has committed an illegal act known as?

twisting

which of the following is not a Medicaid qualifier

insurability

according to the life insurance replacement regulations which of the following would be an example of policy replacement?

a policy is issued with a reduction in cash value

an insured pays a $100 premium every month for his insurance coverage yet the insurer promises to pay $10,000 for a covered loss what characteristic of an insurance contract does this describe?

an aleatory contract it's un equal amounts are exchanged between payments and benefits

all of the following could qualify as a group for the purpose of purchasing Group Health Insurance except

an association of 35 people

cash value guarantees in a whole life policy are called

nonforfeiture values

an example of an alien insurer doing business in this state is one formed under the laws of?

Mexico

when term insurance is added to the main policy to enhance the policy or provide added benefit or coverage it is called a

term Rider

requires both the insured and policy owner to meet certain conditions before the contract can be executed unlike other types of policies which put the burden of condition on either the insurer or the policy owner?

conditional

where are premiums from fixed annuities invested?

a general account

when a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option the cash value will be used to purchase term insurance that has a face amount?

equal to the original policy for as long a period of time that the cash values will purchase

when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

extended term

the guaranteed purchase option is also referred to as the

future increase option

which nonforfeiture option provides coverage for the longest period of time?

reduced paid-up

Target Premium

to keep the policy in force

fixed annuities do not provide protection against inflation

which of the following is a correct statement about annuities?

which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insurance death was caused by an accident as defined in the policy

an accidental death rider

an insured has an individual disability income policy with a 30-day elimination. He becomes disabled on June 1st for 15 days. when will he collect on his disability income payments?

he won't collect anything

in which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer?

if there are no authorized insurers for a specific type of coverage in this state

which of the following is not true regarding a deferred annuity

income payments begin within one year from the date of purchase

interest earned on policy dividends is?

taxable

an insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?

the condition must be covered under the insurance plan

interest-only option

the insurance company for the policy proceeds and pays interest on the proceeds to the recipient beneficiary at regular intervals

the patient protection and Affordable Care Act includes all of the following Provisions except?

individual tax deductions for premiums paid

all advertisements regardless of their source of creation are the responsibility of the?

insurer

Riley reads in agreement on the first page of her policy which includes a list of losses that will be covered by her and sure. What is the name of this agreement?

insuring clause

general disability

is not cover losses by War military service intentionally self-inflicted injuries overseas residents or injuries suffered while committing or attempting to commit a felony

what is the benefit of choosing extended term as a nonforfeiture option?

it has the highest amount of insurance protection

which of the following statements is incorrect regarding the definition of total disability

total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education training or experience

an agent tells an insured that if he replaces his current insurance policy with a new one, his dividends will be higher and his premiums will be slightly lower. The policy however comma would not offer either one of these things. What type of misrepresentation is being committed?

twisting

an insurer is offering Medicare supplements two elderly individuals. Which of the following statements may not appear on the application forms?

you may need more than one Medicare supplement policy

in order to reinstate a life insurance policy the insured must do all of the following except

pay next year's premium in advance

the life insurance policy Clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the?

an incontestability clause

what is the purpose of a benefit schedule?

to state what and how much is covered in the plan

an IRA contribution can be made from which of the following

cash

which of the following is not a type of whole life insurance?

increasing term

Corridor deductible

it is applied between basic coverage and the major medical coverage

which of the following would provide an underwriter with information concerning an applicant's health history?

the medical information Bureau

which of the following best describes a major medical expense policy?

it provides catastrophic medical coverage Beyond basic benefits on a unusual, customary and reasonable basis

which of the following is true about nonforfeiture values

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

Medicare is a health insurance program for all of the following individuals except

those with low income and low assets

which of the following is a statement that is guaranteed to be true and if untrue May breach an insurance contract?

warranty

according to the common disaster Clause if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

the primary beneficiary died before the insured

principal sum

on an accidental death and dismemberment policy the death benefit payable is known as

an agent delivers a life policy he explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a statement of good health, relinquishes the policy, and leaves what did he do wrong?

he left the policy with the insured without collecting the premium

what are the two types of flexible spending accounts

Healthcare accounts and dependent care accounts

what three basic coverages for medical expense insurance?

Hospital surgical Medical