✨Wrong answered for life test!✨
A Whole Life Policy with an Accidental Death Benefit (ADB) Rider (which is also known as a Double Indemnity Rider) provides $250,000 coverage. The insured died of an accidental drug overdose. The policy will pay:
500000
In order to qualify for AD&D coverage, the accident must directly cause death within how many days?
90 Days
Zela is 30 and wants to buy a $200,000 Life policy. Which of the following will have the highest annual premium?
A 30-Year Endowment Policy
Which of the following provides lifetime income benefits?
A Straight Life Annuity
Which of the following statements regarding AD&D Insurance is CORRECT?
AD&D policies cover accidents only, NOT sickness
Which of the following statements is true concerning the agency relationship?
An insurance broker owes a fiduciary duty to the client.
The time period one must be employed before becoming eligible for group Disability Income or Health Insurance is known as the:
Probationary period
Key Person Life Insurance is designed to do which of the following?
Protect the company in case an insured employee dies prematurely.
Each of the following statements regarding Social Security Retirement benefits is correct EXCEPT:
Retirement benefits will be reduced if the worker has retirement income from a company-sponsored retirement plan.
Each of the following is true regarding a Stranger Originated Life Insurance (STOLI or IOLI) transaction EXCEPT:
they are used to prevent money laundering by criminals and terrorists.
Which of the following does NOT constitute third party ownership?
A business owner purchases a Life policy to protect her family in case she dies.
Under AD&D Insurance, what does the capital sum represent?
A lump sum, half of the face value, paid for accidental dismemberment of a primary body part.
Each of the following is a factor in calculating gross premium EXCEPT:
Dividends
Kobi purchased a Whole Life policy at age 23. At age 45, she is tired of paying the premium each month. If she discontinues the payments, which nonforfeiture option will automatically be used?
Extended Term Insurance
Each of the following statements regarding the Fair Credit Reporting Act is true EXCEPT?
FCRA requires Insurers to share credit report information with the applicant.
The amount that the beneficiary will receive if the Insured dies is called the:
Face value.
A conditional receipt accomplishes each of the following EXCEPT?
Guarantees that the permanent policy will be issued.
Which of the following statements regarding an AD&D policy is CORRECT?
It provides a death benefit, so the Insured should name a beneficiary.
Another name for a retirement plan for an unincorporated small business is?
Keogh Plan
The Entire Contract Provision:
States that both the policy and the application are part of the contract.
Annuity premiums are based on:
mortality tables
Each of the following statements regarding MIB (Medical Information Bureau) is correct EXCEPT?
An applicant's MIB report may show the amount of insurance for which the applicant previously applied.
What is decreasing with a Decreasing Term Life policy?
Face value
To reinstate a policy, the policy owner must do each of the following EXCEPT:
Go through another contestable period on the original application.
Chad owns a $100,000 Life policy with a Double Indemnity Rider. He accidentally runs into a boat and is killed instantly. How much will the Insurer pay?
$200,000
Which provides a death benefit that may be changed to Whole Life without proof of insurability?
Convertible Term
Under Social Security, a worker that is fully insured would be eligible for each of the following benefits EXCEPT:
Hospital benefits
An applicant submits an application without the first premium payment. This constitutes a/an?
Invitation.
When does a Term Life policy mature?
Upon the Insured's death within the policy term.
Which of the following best describes an Adjustable Life policy?
A policy with a unique two-way conversion feature.
Which of the following statements regarding MIB is CORRECT?
Medical information is supplied to MIB by the member insurance companies.
Which of the following policies would have the lowest premium in the first year for a 40 year old?
Straight Life
Which Annuity's payments will always cease upon the annuitant's death?
Straight Life Annuity
Each of the following statements regarding the Fair Credit Reporting Act is correct EXCEPT?
The applicant must give consent before an Insurer can access any consumer reports.
A 20-Year Endowment policy's cash value is equal to which of the following after 20 years?
The face value.
Which of the following statements regarding conversion of a Term Life policy from a Group plan to an individual policy is correct
The new converted policy will likely be Whole Life
Which of the following is required for a worker to be eligible for disability benefits under Social Security?
The worker must have fully insured status.
The fact that the Insurer makes a promise but the Insured does not make a promise relates to the concept of?
Unilateral
If only 5% of a company's employees choose insurance coverage, this presents what type of issue?
an adverse selection issue
