Missed questions
#13. A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then a) The benefit is received tax free. b) The benefit is subject to the exclusionary rule. c) IRS has no jurisdiction. d) The benefit is received as taxable income.
A
#21. Which of the following is NOT a feature of a noncancellable policy? a) The insurer may terminate the contract only at renewal for certain conditions. b) The premiums cannot be increased beyond the amount stated in the policy. c) The guarantee to renew coverage usually applies until the insured reaches certain age. d) The insured has the right to renew the policy for the life of the contract.
A
#32. A Health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective? a) Immediately b) After 14 days c) After 21 days d) After 31 days
A
#45. A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following EXCEPT a) The policyholder. b) A lender. c) A family member. d) The beneficiary.
A
#12. What is the purpose of a free-look period in insurance policies? a) It allows the insurer to cancel coverage if a misrepresentation is discovered. b) It allows the insured to reject the policy with a full refund. c) It allows the insured 10 days to pay the initial premium. d) It allows the insurer to temporarily suspend coverage after an insured's disability.
B
#14. Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called a) Business overhead expense disability insurance. b) Key employee disability insurance. c) Blanket disability insurance. d) Long-term disability.
B
#3. The interest earned on policy dividends is a) 40% taxable, similar to a capital gain. b) Taxable. c) Nontaxable. d) Tax deductible.
B
#41. An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity? a) 5% b) 8% c) 10% d) 12%
C
#11. What happens when a policy is surrendered for its cash value? a) Coverage ends but the policy can be reinstated at any time. b) The policy can be reinstated by paying back all policy loans and premiums. c) The policy can be converted to term coverage. d) Coverage ends and the policy cannot be reinstated.
D
#35. Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? a) Switching b) False advertising c) Rebating d) Twisting
D
#43. At what age are individuals become INELIGIBLE for Florida Healthy Kids coverage? a) 21 b) 15 c) 16 d) 19
D
#33. A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will a) Automatically pay the policy proceeds. b) Pay the policy proceeds only if it would have issued the policy. c) Pay the policy proceeds up to an established limit. d) Not pay the policy proceeds under any circumstances.
B
#5. What are the 2 types of Flexible Spending Accounts? a) Medical Savings Accounts and Health Reimbursement Accounts b) Health Care Accounts and Dependent Care Accounts c) Health Care Accounts and Health Reimbursement Accounts d) Medical Savings Accounts and Dependent Care Accounts
B
#18. The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? a) As of the first of the month after the policy issue b) As of the policy issue date c) As of the application date d) As of the policy delivery date
C