Exam #5

A brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses? (Choose from the following options)1. "Any occupation" - less restrictive than other definitions2. "Any occupation" - more restrictive than other definitions3. "Own occupation" - less restrictive than other definitions4. "Own occupation" - more restrictive than other definitions

"Own occupation" - less restrictive than other definitions

An employer employs 500 workers and contributes to their Health Savings Accounts (HSAs). To reduce turnover, the employer wants to tell employees that they will lose their HSAs if they leave the company. Which of the following is true? (Choose from the following options) 1. The employees own the accounts and may take them with them when they leave. The employer will have to find another way to improve retention. 2. The employer is permitted to retain ownership of the accounts provided they give the employees at least 30 days' notice. 3. The employer owns the accounts but may sell them to the employees upon request. 4. Employees may retain their accounts when they leave provided that they reimburse the employer for the monies it contributed.

1. The employees own the accounts and may take them with them when they leave. The employer will have to find another way to improve retention

In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective? (Choose from the following options)1. 100%2. 75%3. 50%4. 25%

100%

Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing? 1. 25% 2. 50% 3. 80% 4. 100%

100%

What is the number of credits required for fully insured status for Social Security disability benefits? (Choose from the following options) 1. 4 2. 10 3. 30 4. 40

40

Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray? (Choose from the following options) 1. 75/25 2. 80/20 3. 90/10 4. 50/50

50/50

What is the penalty for excessive contributions to an IRA? (Choose from the following options) 1. 4% 2. 6% 3. 10% 4. 15%

6%

According to the PPACA rules, what percentage of health care costs will be covered under a bronze plan? (Choose from the following options) 1. 10% 2. 30% 3. 40% 4. 60%

60%

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? (Choose from the following options) 1. Subrogation 2. Warranty 3. Aleatory 4. Adhesion

Aleatory

Which of the following is a term for a person who seeks insurance from an insurer? (Choose from the following options) 1. Insured 2. Beneficiary 3. Applicant 4. Agent

Applicant

When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information? (Choose from the following options) 1. State records 2. Medical records 3. Application 4. Interviews

Application

When must insurable interest exist in a life insurance policy? (Choose from the following options) 1. When there is a change of the beneficiary 2. At the time of loss 3. At the time of application 4. At the time of policy delivery

At the time of application

Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount? (Choose from the following options) 1. Key person agreement 2. Split dollar agreement 3. Buy-sell agreement 4. Profit and loss agreement

Buy-sell agreement

Which of the following components must a life insurance policy have to allow policy loans? (Choose from the following options) 1. Dividends 2. Flexible premiums 3. Face amount 4. Cash value

Cash value

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is (Choose from the following options) 1. Personal. 2. Unilateral. 3. Conditional. 4. Aleatory.

Conditional

Which of the following is NOT a characteristic or a service of an HMO plan? (Choose from the following options) 1. Providing care on an outpatient basis 2. Contracting with insurance companies 3. Providing free annual checkups 4. Encouraging early treatment

Contracting with insurance companies

The gatekeeper of an HMO helps to (Choose from the following options) 1. Determine which doctors can participate in an HMO plan. 2. Control specialist costs. 3. Determine who will be allowed to enroll in an HMO program. 4. Prevent double-coverage.

Control specialist costs.

According to the entire contract provision, what document must be made part of the insurance policy? (Choose from the following options) 1. Buyer's Guide 2. Agent's report 3. Outline of coverage 4. Copy of the original application

Copy of the original application

Which of the following is NOT covered by Medicare? (Choose from the following options) 1. Surgery 2. Doctor bills 3. Cosmetic surgery 4. Outpatient expenses

Cosmetic surgery

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called (Choose from the following options) 1. Multiple Protection insurance. 2. Credit life. 3. Credit health. 4. Decreasing whole life.

Credit life.

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day (Choose from the following options)1. Blackout period.2. Probationary period.3. Waiver of benefits period.4. Elimination period.

Elimination period.

The insurance policy, together with the policy application and any added riders form what is known as (Choose from the following options) 1. Contract of adhesion. 2. Whole life policy. 3. Entire contract. 4. Certificate of coverage.

Entire contract.

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n) (Choose from the following options) 1. Flexible Annuity. 2. Immediate Annuity. 3. Equity Indexed Annuity. 4. Variable Annuity.

Equity Indexed Annuity.

Which policy component decreases in decreasing term insurance? (Choose from the following options) 1. Cash value 2. Dividend 3. Premium 4. Face amount

Face amount

Which of the following types of insurance covers the whole family in a single contract? (Choose from the following options) 1. Survivorship Policy 2. Whole Life Policy 3. Family Policy 4. Family Income Policy

Family Policy

A producer is acting in what capacity when he or she is trying to obtain credible information about an applicant for health insurance? 1. General agent 2. Consumer report investigator 3. Field underwriter 4. Office underwriter

Field underwriter

If an insured is not required to pay a deductible, what kind of coverage does he/she have? (Choose from the following options) 1. Corridor 2. Major medical 3. Comprehensive 4. First dollar

First dollar

In disability income insurance, the own occupation definition of disability applies (Choose from the following options) 1. As long as an individual is unable to work. 2. For the first 2 years of a disability. 3. During the waiting period. 4. During the elimination period.

For the first 2 years of a disability.

Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as (Choose from the following options)1. Misrepresentation.2. Concealment.3. Fraud.4. Avoidance.

Fraud.

Which of the following annuity riders ensures investors will receive a set amount of income annually? (Choose from the following options) 1. Guaranteed Minimum Accumulation Benefit 2. Guaranteed Lifetime Earnings 3. Guaranteed Lifetime Withdrawal 4. Guaranteed Minimum Income Benefit

Guaranteed Minimum Income Benefit

Mrs. Thomas cannot decide whether to choose independent coverage under Medicare Parts A & B or enroll in a local Senior HMO for her health care. Which of the following agencies would give her the information she needs to make a decision? (Choose from the following options)1. PPO2. HICAP3. NAIC4. NASD

HICAP

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost? 1. Stop-loss 2. Consideration 3. Reasonable expectations 4. Indemnity

Indemnity

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital? (Choose from the following options) 1. Indemnity 2. Surgical 3. Blanket 4. Medigap

Indemnity

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose? (Choose from the following options) 1. Interest only option 2. Life income with period certain 3. Joint and survivor 4. Fixed amount option

Interest only option

Which of the following is NOT true regarding a flexible spending account? (Choose from the following options) 1. It does not have limits on contributions. 2. It operates on "use-or-lose" basis. 3. It provides an opportunity to receive benefits on a pretax basis. 4. It is a cafeteria plan.

It does not have limits on contributions.

Which of the following is true concerning an Exclusive Provider Organization (EPO)? (Choose from the following options) 1. Providers are EPO's salaried employees. 2. EPO members choose health care providers. 3. It has a very limited number of providers. 4. It's a type of HMO.

It has a very limited number of providers

All of the following statements about Medicare Part B are correct EXCEPT (Choose from the following options) 1. It covers services and supplies not covered by Part A. 2. It is financed by monthly premium 3. It is financed by tax revenues. 4. It is a compulsory program.

It is a compulsory program.

Which of the following statements is NOT correct concerning the COBRA Act of 1985? (Choose from the following options) 1. It applies only to employers with 20 or more employees that maintain group health insurance plans for employees. 2. COBRA stands for Consolidated Omnibus Budget Reconciliation Act. 3. It requires all employers, regardless of the number or age of employees, to provide extended group health coverage. 4. It covers terminated employees and/or their dependents for up to 36 months after a qualifying event.

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.

For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become (Choose from the following options) 1. More active. 2. Larger. 3. Smaller. 4. Older.

Larger

Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated? (Choose from the following options) 1. Law of large numbers 2. Law of masses 3. Law of averages 4. Law of group evaluation

Law of large numbers

A set of legal or regulatory conditions that affect an insurer's ability to collect premiums commensurate with the level of risk incurred would be considered a(n): (Choose from the following options) 1. Underwriting gamble. 2. Legal peril. 3. Fiduciary risk. 4. Legal hazard.

Legal hazard

What is the term used when a person sells his assets as a way to gain money? (Choose from the following options) 1. Transfer 2. Liquidation 3. Buy-Sell 4. Commerce

Liquidation

Which of the following terms most precisely fits the definition of "the incidence or probability of sicknesses or accidents within a given group of people?" (Choose from the following options) 1. Loss 2. Risk 3. Morbidity 4. Mortality

Morbidity

What other term is used to refer to unintentional torts? (Choose from the following options) 1. Peril 2. Breach of contract 3. Negligence 4. Hazard

Negligence

What is the official name for the Social Security program? (Choose from the following options) 1. Social Insurance Program 2. Defined Benefit Retirement Insurance 3. Qualified Pension Plan 4. Old Age Survivors Disability Insurance

Old Age Survivors Disability Insurance

What term is used to describe when a medical caregiver contracts with a health organization to provide services to its members or subscribers, but retains the right to treat patients who are not members or subscribers? (Choose from the following options) 1. Restrictive rights 2. Indemnity contract 3. Open panel 4. Closed panel

Open panel

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? (Choose from the following options) 1. Option B 2. Corridor option 3. Variable option 4. Option A

Option B

Installing deadbolt locks on the doors of a home is an example of which method of handling risk? (Choose from the following options) 1. Avoidance 2. Transfer 3. Self-insurance 4. Reduction

Reduction

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? (Choose from the following options) 1. Reduction of Premium 2. Accumulation at Interest 3. Cash option 4. Flexible Premium

Reduction of Premium

If the annuitant dies during the accumulation period, who will receive the annuity benefits? (Choose from the following options) 1. The annuity owner 2. The insurance company 3. The annuitant's estate 4. The beneficiary

The beneficiary

The limits of a health reimbursement account are set by (Choose from the following options) 1. Federal regulation. 2. The employer. 3. State statutes. 4. The insurer.

The employer

Which statement accurately describes group disability income insurance? (Choose from the following options) 1. Short-term plans provide benefits for up to 1 year. 2. The extent of benefits is determined by the insured's income. 3. In long-term plans, monthly benefits are limited to 75% of the insured's income. 4. There are no participation requirements for employees.

The extent of benefits is determined by the insured's income.

When a fixed annuity owner pays pays a monthly annuity premium to the insurance company, where is this money placed? (Choose from the following options) 1. Each contract's separate account 2. The annuity owner's account 3. The insurance company's general account 4. Forwarded to an investor

The insurance company's general account

Under an extended term nonforfeiture option, the policy cash value is converted to (Choose from the following options) 1. A higher face amount than the whole life policy. 2. The same face amount as in the whole life policy. 3. The face amount equal to the cash value. 4. A lower face amount than the whole life policy.

The same face amount as in the whole life policy

Which characteristic does NOT describe managed care? (Choose from the following options) 1. Unlimited access to providers 2. High-quality care 3. Shared risk 4. Preventive care

Unlimited access to providers

Within how many days after the application was submitted must an insurer file a notice of agent appointment with the Commissioner if the insurer issues a policy written by the agent who is not specifically appointed by that insurer? (Choose from the following options) 1. 10 days 2. 14 days 3. 15 days 4. 30 days

14 days

COBRA applies to employers with at least (Choose from the following options)1. 20 employees.2. 80 employees.3. 60 employees.4. 50 employees.

20 employees.

What is a penalty tax for nonqualified distributions from a medical savings account? (Choose from the following options) 1. 8% 2. 10% 3. 16% 4. 20%

20%

The Department of Insurance contacts an agent about a claim that was settled two months ago. Within what timeframe must the agent issue a complete response? (Choose from the following options) 1. 10 days 2. 15 days 3. 21 days 4. 31 days

21 days

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? (Choose from the following options) 1. 15% 2. 16% 3. 23% 4. 25%

25%

What type of annuity activity will cause immediate taxation of the interest earned? (Choose from the following options) 1. Failing to make a planned contribution 2. Surrendering the annuity for cash 3. Using the contract as collateral for a loan 4. Changing a settlement option

Surrendering the annuity for cash

What is the waiting period on a Waiver of Premium rider in life insurance policies? (Choose from the following options) 1. 30 days 2. 3 months 3. 5 months 4. 6 months

6 months

If a Medicare insured uses a health care provider who does not accept Medicare payments, which of the following will be true? (Choose from the following options) 1. The insured needs to inform his Medicare agency. 2. The insured might need to sign a private contract with the provider. 3. Medicare insured cannot use non-participating providers. 4. The provider might need to sign a private contract with Medicare.

The insured might need to sign a private contract with the provider.

Which of the following is NOT a feature of a guaranteed renewable provision? (Choose from the following options) 1. The insured has a unilateral right to renew the policy for the life of the contract. 2. Coverage is not renewable beyond the insured's age 65. 3. The insured's benefits cannot be reduced. 4. The insurer can increase the policy premium on an individual basis.

The insurer can increase the policy premium on an individual basis.

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within 1. 30 days. 2. 60 days. 3. 90 days. 4. 120 days.

90 days

A hospital indemnity policy will pay (Choose from the following options) 1. A benefit for each day the insured is in a hospital. 2. Income lost while the insured is in the hospital. 3. All expenses incurred by the stay in the hospital. 4. Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles.

A benefit for each day the insured is in a hospital.

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? (Choose from the following options) 1. Coverage options and conditions are developed for average individuals. 2. All providers will have the same coverage options and conditions for each plan. 3. Coverage options and conditions comply with the law, but will vary from provider to provider. 4. All plans must include basic benefits A-N.

All providers will have the same coverage options and conditions for each plan.

.What is another term for the general enrollment period for Medicare Part B? (Choose from the following options) 1. Initial enrollment period 2. Eligible enrollment period 3. Special enrollment period 4. Annual enrollment period

Annual enrollment period

When an insured incurs medical expenses during the last 90 days of a calendar year, the Carry-Over Provision allows them to (Choose from the following options) 1. Waive premium payments for the new year. 2. Apply such expenses to the new year's deductible. 3. Reduce their premium for the new year if the claim is finalized prior to December 31. 4. Transfer their expenses to the credit of a covered relative if the claim is ongoing January 1.

Apply such expenses to the new year's deductible

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care? (Choose from the following options) 1. Attending physician 2. Registered nurses 3. Licensed practical nurses 4. Community-based organization professionals

Attending physician

What coverage, written in conjunction with hospital expense policies, covers surgeons' fees, anesthesiologist, and the operating room? (Choose from the following options) 1. Stop Loss 2. Basic Surgical Expense 3. Basic Medical Expense 4. Major Medical Expense

Basic Surgical Expense

If a loss occurs, insurance policies pay the proceeds to (Choose from the following options) 1. Beneficiary 2. Applicant 3. Insurer 4. Agent

Beneficiary

The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an (Choose from the following options) 1. Blanket. 2. Limited Sickness. 3. Accidental Death and Dismemberment. 4. Limited Accident.

Blanket.

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as (Choose from the following options) 1. Contracts of adhesion. 2. Unilateral contracts. 3. Aleatory contracts. 4. Binding contracts.

Contracts of adhesion

After a year of receiving disability income benefits, the insured notices that her monthly benefit has increased slightly. What rider does the policy most likely have that would cause this? (Choose from the following options) 1. Social Security Rider 2. Additional Monthly Benefit Rider 3. Cost of Living Adjustment Rider (COLA) 4. Annual Renewable Term Rider

Cost of Living Adjustment Rider (COLA)

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change? (Choose from the following options) 1. Cost of Living Rider 2. Value Adjustment Rider 3. Return of Premium Rider 4. Inflation Rider

Cost of Living Rider

Life insurance death proceeds are (Choose from the following options) 1. Taxable to the extent that they exceed 7.5% of the beneficiary's adjusted gross income. 2. Taxed as a capital gain. 3. Taxed as ordinary income. 4. Generally not taxed as income.

Generally not taxed as income.

How are HMO territories typically divided? (Choose from the following options) 1. By where the HMO can find the least expensive physicians 2. Geographic areas 3. Type of physician services available 4. Community rating system

Geographic areas

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? (Choose from the following options) 1. Guaranteed Lifetime Earning 2. Guaranteed Lifetime Withdrawal 3. Guaranteed Minimum Income 4. Guaranteed Minimum Accumulation

Guaranteed Lifetime Withdrawal

Which of the following persons represents several insurance companies but owns the records of the policies sold? (Choose from the following options) 1. Direct writing agent 2. Independent agent 3. Exclusive agent 4. General agent

Independent agent

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income? (Choose from the following options) 1. Neither principal nor interest 2. Principal only 3. Interest only 4. Both principal and interest

Interest only

Which of the following insurance coverages would be allowed with an MSA? (Choose from the following options) 1. Medicare 2. Individual health insurance 3. Long-term care 4. Medicaid

Long-term care

Which of the following information about the applicant is NOT included in the General Information section of the application for insurance? (Choose from the following options) 1. Occupation 2. Marital status 3. Medical background 4. Gender

Medical background

In a situation when a Medicare insured uses the services of a non-participating provider, which of the following is NOT true? (Choose from the following options) 1. The insured must pay his/her portion at the time service is rendered. 2. Medicare pays its share of the bill directly to the provider. 3. The insured may have to pay most of or the entire bill. 4. The provider must file a Medicare claim on the insured's behalf.

Medicare pays its share of the bill directly to the provider

In health underwriting, it would be inappropriate to decline a risk using any of the following factors EXCEPT (Choose from the following options) 1. Marital status. 2. Blindness. 3. Mental illness. 4. Genetic characteristics.

Mental illness

An individual's tendency to be dishonest would be indicative of a (Choose from the following options)1. Moral hazard.2. Morale hazard.3. Pure hazard.4. Physical hazard.

Moral hazard

What is the "elimination period" under a long term care policy? (Choose from the following options) 1. The amount of consecutive days during which the benefits will be paid. 2. The amount of time that benefits can be received tax-free. 3. The amount of time during which no benefits will be paid. 4. The amount of time that the insured will have to review the policy and return it for a full refund.

The amount of time during which no benefits will be paid.

Which of the following is NOT true regarding the annuitant? (Choose from the following options) 1. The annuitant receives the annuity benefits. 2. The annuitant must be a natural person. 3. The annuitant cannot be the same person as the annuity owner. 4. The annuitant's life expectancy is taken into consideration for the annuity.

The annuitant cannot be the same person as the annuity owner.

Which of the following is NOT a characteristic of a group long-term disability plan? (Choose from the following options) 1. The benefit can be up to 66 and 2/3% of one's monthly income. 2. The benefit can be up to 50% of one's yearly income. 3. The elimination period is the same as in the short-term plan's benefit period. 4. The benefit period may be to age 65.

The benefit can be up to 50% of one's yearly income.

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? (Choose from the following options) 1. The death benefit can be increased by providing evidence of insurability. 2. The death benefit cannot be increased. 3. The death benefit can be increased only when the policy has developed a cash value. 4. The death benefit can be increased only by exchanging the existing policy for a new one.

The death benefit can be increased by providing evidence of insurability.

Which of the following is true if the policyowner exercises his/her right to surrender his/her life insurance policy for its current cash value? Assume that the policyowner and insured are the same person. (Choose from the following options) 1. The beneficiary can sue the policyowner for the cash value of the surrendered policy. 2. The beneficiary automatically receives the cash value of the policy. 3. The insured is no longer covered under the surrendered policy. 4. The insured is still covered under the policy, but the death benefit is reduced.

The insured is no longer covered under the surrendered policy

In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met? (Choose from the following options) 1. The insured must have a Medicare supplement insurance policy. 2. There is no benefit provided under Medicare Part A for skilled nursing care. 3. The insured must cover daily copayments. 4. The insured must have first been hospitalized for 3 consecutive days.

The insured must have first been hospitalized for 3 consecutive days.

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? (Choose from the following options) 1. The insurer can take the attending physician to court for his or her lack of willingness to conduct further examinations. 2. The insurer is out of options. It must do its best to make a decision based on the information that it currently has. 3. The insurer can require the insured to visit a different physician at the applicant's expense. 4. The insurer can require the insured to visit a different physician at the insurer's expense.

The insurer can require the insured to visit a different physician at the insurer's expense.

Which of the following is true regarding an application for a large amount of insurance? (Choose from the following options) 1. The insurer will accept a non-medical application. 2. The applicant must submit a statement of good health. 3. The agent, and not the applicant, will complete all of the medical information. 4. The insurer might require a medical examination by a professional.

The insurer might require a medical examination by a professional.

Which of the following does NOT need to be identified in an insurance policy? (Choose from the following options) 1. The first named insured 2. The insurer's financial rating 3. The stated periodic premium 4. A statement of insurable interest

The insurer's financial rating

All of the following are true of key person insurance EXCEPT (Choose from the following options) 1. The plan is funded by permanent insurance only. 2. There is no limitation on the number of key employee plans in force at any one time. 3. The employer is the owner, payor and beneficiary of the policy. 4. The key employee is the insured.

The plan is funded by permanent insurance only.

If an insured continually uses the automatic premium loan option to pay the policy premium, (Choose from the following options) 1. The insurer will increase the premium amount. 2. The policy will terminate when the cash value is reduced to nothing. 3. The face amount of the policy will be reduced by the automatic premium loan amount. 4. The cash value will continue to increase.

The policy will terminate when the cash value is reduced to nothing.

Which of the following is NOT a goal of risk retention? (Choose from the following options) 1. To fund losses that cannot be insured 2. To minimize the insured's level of liability in the event of loss 3. To reduce expenses and improve cash flow 4. To increase control of claim reserving and claims settlements

To minimize the insured's level of liability in the event of loss

During the free-look period, the premium for a variable annuity may be invested in all of the following EXCEPT (Choose from the following options) 1. Mutual funds (only upon the investor's request). 2. Value funds. 3. Fixed-income investments. 4. Money-market funds.

Value funds.

When is the insurability conditional receipt given? (Choose from the following options) 1. After the application has been approved and the premium has been paid 2. When an insured individual needs to obtain an insurability receipt for tax purposes. 3. If the application is approved before the premium is paid 4. When the premium is paid at the time of application

When the premium is paid at the time of application