CA Exam Missed Questions

First Dollar Coverage refers to a type of insurance which

*has no deductible*

Health coverage becomes effective when the

First premium has been paid and the application has been approved

Which of the following is TRUE about credit life insurance?

*Creditor is the policyowner* In credit life insurance, the creditor is the policyowner and the beneficiary; the debtor is the insured.

What is creditable coverage?

*Former health coverage that gives an individual rights when applying for new coverage*

Who will be affected by the share of cost requirement for Medi-Cal?

*Individuals whose income exceed the Medi-Cal limit* If an individual's income exceeds the Medi-Cal limit for his/her family size, that individual will have to pay a certain amount, called share of cost (SOC), in the month when medical expenses occurred.

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant With pure life annuity, income payments cease at the annuitant's death and there is no refund or payments to survivors. This type of annuity is also referred to as Life Only or Straight Life.

When a client replaces an existing LTC or Medicare Supplement insurance policy with another from the same company, California law requires that

The agent must advise the client about HICAP and its services

What is the "elimination period" under a long term care policy?

The amount of time under which no benefits will be paid The elimination period starts on the day that the policy goes into effect. This is the amount of time (usually 0-365 days) that no benefits will be paid. LTC policies typically have a 30-day elimination period.

If an applicant for a health insurance policy is found to be a substandard risk, the insurance company is most likely to

charge an extra premium The premium rate will be adjusted to reflect the insurer's increased risk

How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?

*They are tax deductible*

Tax Treatment of Life Insurance

death benefits are exempt from taxation

What is the minimum fine for acting as an agent for a nonadmitted insurer in the transaction of insurance business?

$500

How many eligible employees must be included in a contributory plan?

*75%* At least 75% percent of eligible employees can be included in a contributory plan. Both the employees and the employer contribute to premium payments.

An insured who signs a fraudulent claim form may be guilty of

*Perjury*

The key factor of representation that allows the injured party to rescind the contract is

If the representation is false in a material point

Which of the following best describes an agent's fiduciary capacity?

Promptly forwarding premiums to the insurer The term fiduciary describes both the responsibility inherent in handling another person's financial affairs, and the individual with such responsibility. Handling premiums for the insurer is the agent's fiduciary capacity.

Which of the following is true regarding the gender of the applicants in disability income insurance?

a) Men, as they age, present a higher health risk and are more prone to disability. b) Gender is not a rating factor in disability income insurance. c) Aging men and women are both prone to disability and therefore are not insurable. d)*Women, as they age, present a higher health risk and are more prone to disability.* An applicant's gender affects his or her eligibility and rating in disability income insurance. While men statistically have shorter life expectancy, women tend to have more health problems as they mature, which makes them a higher health risk, and more prone to disability.

If a Medicare insured uses a non-participating in Medicare physician, he or she may be asked to sign a private contract. Which of the following conditions will NOT apply when the insured signs a private contract with the provider?

a)The provider must tell the insured if he/she has opted out of or been excluded from the Medicare program. b)The insured has to pay all the charges. *c)Claims should be submitted to Medicare.* d)Medicare supplement policy will not pay for the services. When an insured uses services of a non-participating in Medicare physician, the insured and the provider might need to sign a private contract. The insured will have to pay whatever the provider charges for the services; Medicare limiting charges will not apply. Therefore, no claims should be submitted to Medicare, and Medicare will not pay if one is submitted.

Which of the following is NOT true regarding Blue Cross and Blue Shield Organizations?

a)They are usually not-for-profit. b)*They are insurance companies.* c)They are service organizations. d)They establish contractual agreements with physicians and hospitals. Blue Cross and Blue Shield organizations are voluntary not-for-profit health care organizations; they are not insurance companies.

True statement regarding contributory group life insurance

employee will contribute to the premium payments

When an employee covered under a health reimbursement account changes employers, the HRA

stays with the employer HRAs remain with the originating employer and do not follow an employee to new employment.

A policy with a 31-day grace period implies

the policy will not lapse for 31 days if the premium is not paid when due A mandatory provision of life insurance policies requires that a grace period be provided. The grace period is the period of time after the premium due date in which premiums may still be paid before the policy lapses for nonpayment of the premium.

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?

$102 The employer is permitted to collect a premium from the terminated employee at a rate of no more than 102% of the individual's group premium rate (in this scenario, 102% of $100 total premium is $102). The 2% charge is to cover the employer's administrative costs.

If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits?

*12 credits* Persons disable between ages 24 and 31 can qualify for benefits if they have credit for having worked half of the time between age 21 and the start of the disability. For example, if Joe becomes disabled at age 27, he would need 12 credits (or 3 years' worth) out of the prior 6 years (between ages 21 and 27).

An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?

*2 years* Under an Own Occupation plan, if the insured cannot perform his/her current job for a period of up to two years, disability benefits will be issued, even if the insured would be capable of performing a similar job during that two-year period. After that, if the insured is capable of performing another job utilizing similar skills, benefits will not be paid.

How many long-term care policies can be sold to an insured within a 12-month period before the number of policies is considered to be unnecessary?

*2* If the insured buys any more than 2 policies within 12 months, this is considered to be unnecessary and excessive. The exception to this rule is when a person buys a policy that allows him or her to consolidate coverage.

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 2.5%. During an economic downswing, the investments only drew 2%. What interest rate will the insurer pay to its policyholders?

*2.5%* Insurance companies promise guaranteed minimums on the fixed annuities (2.5% in this scenario). This means that if the investments draw less than that, the company will have to pay 2.5% anyway. If the investments earn over 2.5%, the company will pay that excess.

As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?

*8* For licensees issued a license after January 1, 1992, 8 hours of continuing education specific to long-term care insurance are required for each license period.

According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage premium that must be applied to actual medical care in a large group health plan?

*85%* MLR requires insurance companies to spend at least 80% (for individual and small group markets) or 85% (for large group markets) of premium dollars on medical care and health care quality improvement, rather than on administrative costs.

An insurer may discriminate against a person through underwriting if that person has

*A physical handicap that could result in an actuarially predictable loss.* Physical or mental impairments may not be used to discriminate against a person in the underwriting of insurance unless it can be shown actuarially or on the basis of "actual and reasonably anticipated experience" that such persons represent extraordinary risk to the insurer. (CIC 10144)

Insurance policy is

*A written instrument in which a contract of insurance is set forth.*

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean?

*All providers will have the same coverage options and conditions for each plan.* In reference to the standard Medicare Supplement benefits plans, the term "standard" implies that all providers will have the same coverage options and conditions for each plan.

Which concept is associated with "exclusion ratio"?

*Annuities payments* Some parts of an annuities payment are taxable, while others are not. The return of the principal paid in is nontaxable. The portion that is taxable is the actual amount of payment, less the expected return of the principal paid in. This relationship is called the "exclusion ratio".

In general terms, IRA contributions

*Are tax deductible* Individuals who are not covered by an employer-sponsored plan may deduct the full amount of their IRA contributions regardless of their income level.

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?

*As of the application date* If the full premium was submitted with the application and the policy was issued as requested, the policy coverage effective date would generally coincide with the date of application.

Any insurer who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation

*Be fined a sum of $10,000* An insurance company that violates the replacement provision of the Code will be fined $10,000 for the first offense.

What are the 2 types of Flexible Spending Accounts?

*Health Care Accounts and Dependent Care Accounts* There are 2 types of Flexible Spending Accounts: a Health Care Account for out-of-pocket health care expenses, and a Dependent Care Account to help pay for dependent care expenses which make it possible for an employee and his or her spouse, if applicable, to work.

The key factor of representation that allows the injured party to rescind the contract is

*If the representation is false in a material point.* If a representation is false in a material point the injured party is entitled to rescind the contract from the time the representation becomes false.

In a group health policy, a probationary period is intended for people who

*Join the group after the effective date* The probationary period is the waiting period new employees must satisfy before becoming eligible for benefits.

The classification Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed

*No more than 50 employees* Classification rules established by the Insurance Code state that Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed not more than 50 eligible employees.

A guaranteed renewable health insurance policy allows the

*Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.* Coverage is guaranteed, but rates can be adjusted for the entire class.

Who does HICAP serve?

*Seniors receiving Social Security* HICAP exists to assist seniors who are already receiving or are about to receive Social Security or Medicare, and provides consumer counseling related to the purchase of health insurance, long term care insurance, and Medicare supplement insurance.

The limits of a health reimbursement account are set by

*The employer* Health Reimbursement Accounts have no statutory limit. Limits may be set by employer, and rollover at the end of the year based on employer discretion.

Bob applies for an insurance policy and, because of his medical history, is required to submit an attending physician's statement. He receives the evaluation, and the report is submitted. The underwriting department still has further questions but is unable to get further information from the physician. What will the insurer most likely do?

*The insurer can require the insured to visit a different physician at the insurer's expense.* When attending physician statements do not provide all of the information that an insurer needs, the insurer can require the applicant to be examined by a different physician. The insurance company must pay for this evaluation.

Which of the following is true regarding elimination periods and the cost of coverage?

*The longer the elimination period, the lower the cost of coverage* The "elimination period" is a period of days which must expire after the onset of an illness or occurrence of an accident before benefits will be payable. The longer the elimination period is, the lower the cost of coverage will be.

When an employee or dependent who is currently receiving benefits qualifies for an extension of benefits due to a discontinuance which was followed by a replacement, which of the following is responsible for that disabled person's continuance of benefits?

*The old insurer* If a group policy is being replaced by a new policy, the new policy is required to accept all persons who were covered under the previous policy, but they are not required to take over existing claims. It is possible for a replacing insurer to agree to accept all covered persons and existing claims.

An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?

*The policy will terminate when the loan amount with interest equals or exceeds the cash value.* In most policies, failure to pay back a loan will result in termination of the policy if the total amount of the loan and accrued interest equals the cash value.

Medi-Cal may be available to persons over age 65 if

*They have medical or long term car claims not paid by Medicare* Unpaid Medicare claims and long term care benefits are payable under Medi-Cal provided the individual and his/her spouse meet the required asset tests.

How can insurers obtain information on an applicant's avocations and the way they will affect a risk?

*Through the use of a questionnaire* To determine a person's avocations, the insurer will have an applicant fill out a questionnaire to obtain information regarding hobbies and personal interests.

When is the insurability conditional receipt given?

*When the premium is paid at the time of the application* Under the terms of the insurability conditional receipt, the insurance coverage becomes effective as of the date of the receipt, provided the application is approved. This receipt is generally provided to the applicant when the initial premium is paid at the time of application.

Harry has a disability that prevents him from doing certain kinds of work. Because of his qualifications, he responds to a recruitment ad and is hired for the position. What federal act allows him to apply for the job?

*a)Americans with Disabilities Act* b)There is no federal law; he can apply for any job. c)Social Security Act d)Equal Opportunity Employment Act The existence or consequence of Harry's disability cannot be excluded from recruitment, selection, compensation, training, and all terms and conditions and privileges of employment.

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an

*a)Interest-sensitive Whole Life.* b)Credit Life. c)Annual Renewable Term. d)Adjustable Life. Because the cash values are generated by investments, interest rates will affect the amount of the cash value.

Medicare Part A services do NOT include which of the following?

*a)Outpatient Hospital Treatment* b)Post hospital Skilled Nursing Facility Care c)Hospitalization d)Hospice Care Outpatient treatment is covered under Part B.

Which of the following statements is false regarding the taxation of life insurance?

*annuity death benefits are totally exempt from taxation* businesses that buy group term life insurance for its employees can generally deduct the premiums because they are considered a business expense individuals making premium payments on life insurance can not deduct those premiums

What do living benefit riders do?

Pay part of the policy death benefit to insureds in order to help fund long-term care or nursing home care

The Health Insurance Counseling and Advocacy Program is administered by

The California Department of Aging

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy The dividends are used to purchase a single premium policy in addition to the face amount of the permanent policy.

A tornado that destroys property would be an example of which of the following?

a)A loss b)A physical hazard *c)A peril* d)A pure risk A peril is the cause of loss insured against in an insurance policy.

Which of the following are NOT fundable by annuities?

a)A person's retirement b)Estate liquidation *c)Death benefits* d)Cash accumulation for any reason Annuities are most commonly used to fund a person's retirement, but they can technically be used to accumulate cash for any reason. Annuities can also be used to liquidate an estate. Annuities do not provide death benefits; those are provided by life insurance.

Which of the following statements is INCORRECT regarding IRAs?

a)Accumulated contributions grow tax deferred. *b)Married couples are required to purchase a jointly owned IRA.* c)A nonworking spouse is eligible to contribute to a separate IRA account. d)Anyone with earned income under the age of 70 ½ may open a traditional IRA. Anyone with earned income who has not attained age 70 1/2 can have an IRA. A married couple could currently contribute up to $11,000 per year to two separate accounts.

Which of the following is NOT true regarding policy loans?

a)An insurer can charge interest on outstanding policy loans. b)A policy loan may be repaid after the policy is surrendered. *c)Money borrowed from the cash value is taxable.* d)Policy loans can be repaid at death. Money borrowed from the cash value is not taxable. Policy loans can be repaid at any time, including surrender and death. An insurer can charge interest on outstanding policy loans.

Three time periods are common in medical expense policies. Which of the following is the normal chronological order of their occurrence?

a)Benefit Period - Waiting Period - Probationary Period b)It depends on the situation. c)Waiting Period - Probationary Period - Benefit Period *d)Probationary period - Waiting Period - Benefit Period* The "probationary period" is prior to the beginning of coverage; the "waiting period" is after the policy is issued but prior to the beginning of claim payments; "benefit period" is the claim payment period.

The continuing education requirement for the California Partnership for Long-Term Care policies

a)Does not apply to agents who hold a life license. b)Only needs to be completed if an actual sale occurs during that licensing period. c)Must be completed in addition to an agent's regular continuing education requirements *d)Is part of an agent's regular continuing education requirements.* The continuing education requirements for the California Partnership for Long-Term Care policies are part of, NOT in addition to, an agent's regular continuing education requirement.

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe?

a)Flexible Premium b)*Reduction of Premium* c)Accumulation at Interest d)Cash option The Reduction of Premium option allows the policyholder to apply policy dividends toward the next year's premium. The dividend is subtracted from the premium amount, yielding the new premium due for the next year.

Naming a trust as the beneficiary of a life insurance policy can accomplish all of the following for the policyowner EXCEPT

a)Give the policyowner flexibility in disbursing the proceeds of a death benefit. b)Receive death benefits on behalf of beneficiaries who are minor children. *c)Allow the trustee to transfer the assets of the trust to their personal account.* d)Establish an account to fund the insured's children's education. A trustee is paid a fee to administer the trust; however, he or she cannot access the funds personally.

Which of the following is available to employers of all sizes?

a)HSAs b)*HRAs* c)MSAs d)LPAs Health Reimbursement Accounts (HRAs) consist of funds set aside by employers to reimburse employees for qualified medical expenses; they are available to all sizes of employers.

Harry has just received his life insurance policy. In reviewing the title page, Harry was able to ascertain the following information EXCEPT

a)His children have been covered by a child rider. b)He had purchased a 20 year renewable term insurance policy in the face amount of $150,000. c)His total annual premium amount. *d)His spouse had been assigned the primary beneficiary.* Harry would not be able to ascertain from the title page who is the primary beneficiary of his life insurance policy.

Which of the following is NOT correct concerning a medical savings account (MSA)?

a)If there is a balance at the end of the year, the employee can allow it to earn interest or withdraw it as taxable income. *b)MSAs are only available to groups with at least 100 employees.* c)The employee can use the funds from the MSA to cover health insurance deductibles during the year. d)It is an employer-funded account linked to a high-deductible medical insurance plan. Medical savings accounts are only available to groups of 50 or fewer employees. All other statements are true.

Which of the following statements about occupational vs. nonoccupational coverage is TRUE?

a)Individual disability policies never cover nonoccupational injuries. b)Only group disability income policies can be written on an occupational basis. *c)Disability insurance can be written as occupational or nonoccupational.* d)Group medical expense policies and individual medical expense policies always cover both occupational and nonoccupational injuries. All disability insurance can be written on either an occupational or nonoccupational basis.

In determining how material a piece of information is to each party of a contract, the value is not determined by the event itself, but solely by which of the following?

a)Interpretation that the seller places on such information in the agreement. b)Amount of information that has been previously disclosed through the inquiry process. c)Truthfulness of such statements being made. d)*Influence this information would have in forming an estimate of the advantages or the disadvantages of the contract.* Materiality is to be determined not by the event, but solely by the influence of the facts upon the party to whom the communication is due, in forming his/her estimate of the disadvantages of the contract.

If a retirement plan or annuity is "qualified," this means

a)It has a penalty for early withdrawal. b)It accepts after-tax contributions. c)It is noncancellable. d)*It is approved by the IRS.* A qualified retirement plan is approved by the IRS, which then gives both the employer and employee benefits such as deductible contributions and tax-deferred growth.

Which of the below statements does NOT describe a Blue Cross and Blue Shield Plan?

a)Most of the organizations are voluntary and not-for-profit. b)Benefits are paid to the hospitals and physicians, not the insureds. *c)Services are paid for at the time of use.* d)The physicians and hospitals are considered to be the producers. Blue Cross and Blue Shield Plans have a contractual relationship between physicians/hospitals and Blue Cross and Blue Shield; the physicians and hospitals are the producers in the arrangement. Benefits are paid to the hospitals and physicians, not the insureds, an arrangement which is called a "service plan". These plans are also prepaid by the subscriber, usually on a monthly basis.

All of the following benefits are available under Social Security EXCEPT

a)Old-age and retirement benefits. b)Disability benefits. c)Death benefits. *d)Welfare benefits.* Social Security is an entitlement program, not a welfare program.

Which of the following can surrender a deferred annuity contract?

a)Only the insurance company for nonpayment of premiums b)The beneficiary after the owner's death c)A deferred annuity cannot be surrendered. *d)Only the annuity owner* If the need arises, a deferred annuity contract may be surrendered only by the annuity owner. At surrender the owner receives the value of the annuity minus a surrender charge.

A woman obtains health coverage through the Marketplace on October 1. Two weeks later she finds out that she is 3 months pregnant. Which of the following is true about coverage for pregnancy?

a)Pregnancy will only be covered if additional premium is paid. b)Pregnancy will not be covered as a pre-existing condition. c)Pregnancy may be covered with the insurer's special approval. *d)Pregnancy will be covered immediately.* All health insurance Marketplace plans must cover pregnancy and childbirth, even if pregnancy begins before the coverage takes effect.

Which of the following elements in an Indexed Universal Life policy is tied to an index?

a)Premiums b)*Cash values* c)Death benefit d)Face amount Under the Indexed Universal Policy, the policy's cash value is dependent upon the performance of the equity index.

In which of the following instances would the premium be tax deductible?

a)Premiums paid by an employer on the life of a key person *b)Premiums paid by an employer on a $30,000 group term life insurance plan for employees* c)Premiums paid by an individual on his/her own life insurance d)Premiums paid by a mother on her son's policy As a general rule, premiums paid for life insurance are not tax deductible. The exception to this rule is when an employer buys group term life insurance for his employees since it is considered a business expense.

Which of the following is true concerning an Exclusive Provider Organization (EPO)?

a)Providers are EPO's salaried employees. b)EPO members choose health care providers. c)*It has a very limited number of providers.* d)It's a type of HMO. EPO is a type of PPO, in which the members do not choose health care providers. Instead, they use specific providers who are paid on a fee-for-service basis. Number of providers is very limited; however, they offer deeper discounts on their rates.

Which of the following levels of care in long-term care policies specifically includes assistance with activities of daily living?

a)Respite care b)Hospice care c)Intermediate care *d)Personal care* Personal Care includes hands-on services to assist an individual with activities of daily living, and can be provided by a skilled or unskilled person.

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT

a)Respite care. b)Home health care. c)*Skilled care.* d)Custodial care in insured's house. Custodial care, respite care, home health care, and adult day care are all coverages used to reduce the necessity of admission into a care facility. Skilled care is almost always provided in an institutional setting.

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?

a)Risk classification *b)Metal level classification* c)Guaranteed and nonguaranteed d)Grandfathered and nongrandfathered Plans other than self-insured plans will be classified into four levels determined by how much of one's expected health care costs are covered. The four plans are bronze, silver, gold, and platinum. This is called metal level classification.

Regarding health insurance premiums, all of the following statements are true EXCEPT

a)Standard risks pay the regular premium for their classification. *b)Substandard risks are not insurable and are always rejected.* c)Rated policies can be issued by standard insurers. d)Preferred risks may be given a discounted rate for being a non-smoker or a non-drinker. Substandard risks may be insured and charged an additional rate for the extra risk they pose for the insurer.

All of the following are true regarding key person disability income insurance EXCEPT

a)The employee is the insured. *b)Premiums are tax deductible as a business expense.* c)The employer receives the benefits if the key person is disabled. d)The employer pays the premiums. In key person disability insurance, the contract is owned by the business, the premium is paid by the business, and the business is the beneficiary. The key person is the insured, and the business must have the key person's consent to be insured in writing.

All of the following are true of key person insurance EXCEPT

a)The key employee is the insured. *b)The plan is funded by permanent insurance only.* c)There is no limitation on the number of key employee plans in force at any one time. d)The employer is the owner, payor and beneficiary of the policy. Key Person coverage may be funded by any type of life insurance.

All the factors are FALSE when used to provide data and statistics to an insurer in order to project losses and the subsequent cost of insuring risks in a group disability policy, EXCEPT

a)The number of group carriers. *b)Stability, Price, Longevity with a particular carrier.* c)Experience, Expenses and Interest of a particular carrier's premiums. d)The number of eligible participants in the group. Stability, Price and Longevity are all factors used to determine losses and cost of insuring risks in a group (or individual) policy.

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

a)The principal amount in monthly installments *b)The capital amount in a lump sum* c)The principal amount in a lump sum d)The capital amount in monthly installments Accidental Death and Dismemberment policies pay a capital amount (a percentage of the principal amount) for the loss of one limb or loss of sight in one eye. The principal amount is paid for death or often for the loss of 2 limbs or loss of sight in both eyes. Benefits are paid in a lump sum.

If a Medicare insured uses a health care provider who does not accept Medicare payments, which of the following will be true?

a)The provider might need to sign a private contract with Medicare. b)The insured needs to inform his Medicare agency. *c)The insured might need to sign a private contract with the provider.* d)Medicare insured cannot use non-participating providers. If a Medicare insured uses a health care provider who does not accept Medicare payments, the insured may be asked to sign a private contract with the provider. The private contract will only apply to the services that the insured receives from that provider.

Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?

a. SEPs offer ease of plan administration with minimal reporting requirements. *b. SEPs limit participation to members of closely held corporations.* c. SEPs allow the employer to make annual tax deductible contributions up to 25% of an employee's earned income, not to exceed $49,000. d. SEPs have a higher tax deductible contribution limit than an IRA.

What type of life insurance policy allows the insured to gain from dividends or profits gained by the insurance company?

participating policy