COURSE 8.0

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? a)20 credits b)6 credits c)40 credits d)12 credits

12 credits

An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying? a)15% b)16% c)23% d)25%

25%

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? a)Fixed period b)Life with period certain c)Fixed amount d)Interest only

Fixed period

Issue age policy premiums increase in response to which of the following factors? a)Increased benefits b)Increased deductible c)Inflation d)Age

Increased benefits

A guaranteed renewable disability insurance policy a)Is renewable at the option of the insurer to a specified age of the insured. b)Is guaranteed to have a level premium for the life of the policy. c)Cannot be cancelled by the insured before age 65. d)Is renewable at the insured's option to a specified age.

Is renewable at the insured's 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? a)Risk exposure b)Morbidity c)Life expectancy d)Mortality rate

Life expectancy

A guaranteed renewable health insurance policy allows the a)Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class. b)Policyholder to renew the policy to a stated age and guarantees the premium for the same period. c)Policy to be renewed at time of expiration, but the policy can be canceled for cause during the policy term. d)Insurer to renew the policy to a specified age.

Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.

The Federal Fair Credit Reporting Act a)Regulates telemarketing. b)Prevents money laundering. c)Regulates consumer reports. d)Protects customer privacy.

Regulates consumer reports.

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called a)Single premium whole life. b)Modified Endowment Contract (MEC). c)Level term life. d)Graded premium whole life.

Single premium whole life.

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT a)Projected interest rates. b)Face amount of the policy. c)The insured's age at death. d)The beneficiary's life expectancy.

The insured's age at death.