9/3/22
an insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
what is a penalty for nonqualified distributions from a health savings account?
20%
which of the following explains the policyowners right to change beneficiaries, choose options, and receive proceeds of a policy?
Owners rights
a deductible is
a specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits
All of the following are examples of third-party ownership of a life insurance policy except
an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
the death protection component of universal life insurance is always
annually renewable term
an agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. who must then initial that change?
applicant
which of the following is true regarding inpatient hospital core for HMO members
care can be provided outside of the service area
the provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the
entire contract clause
if an insured is not required to pay a deductible, what kind of coverage does he/she have?
first dollar
as it pertains to group health insurance, COBRA stipulates that
group coverage must be extended for terminated employees up to a certain period of time at the former employers expense
a typical accidental death and dismemberment policy covers all of the following except
income
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
incontestability clause
which of the following entities can legally bind coverage
insurer
the mode of premium payment
is defines as the frequency and the amount of the premium payment
a guaranteed renewable disability insurance policy
is renewable at the insureds option to a specified age
which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors
life expectancy
which of the following settlement options in life insurance is known as straight life?
life income
traditional IRA contributions are tax deductible based on which of the following?
owners limit
which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?
payment of claims
which of the following allows the insurer to relieve a minor insured from premium payments if the minors parent have died or become disabled?
payor benefit
which of the following riders would not cause the death benefit to increase?
payor benefit rider
which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
premiums are not tax deductible as a business expense
Which nonforfeiture option provides coverage for the longest period of time?
reduced paid - up
Which type of life insurance policy generates immediate cash value?
single premium
an insured has endured multiple surgeries and hospitalizations for an illness during the last few months. Her insurer no longer bills her for medical expenses. Which of the following allows for that?
stop-loss limit
which of the following terms describes the specified dollar amount beyond which the insured no longer participates int he sharing of expenses?
stop-loss limit
if the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary
all of the following are true of key person insurance except
the plan is funded by permanent insurance only
which of the following statements about the change of beneficiaries provisions is false?
the policyowner has the right to change beneficiaries in any case.