InsuranceWhich of the following best describes the aleatory nature of an insurance contract?

All of the following are true about the Insurance Frauds Prevention Act EXCEPT

Every insurer must file a fraud prevention plan within 150 days.

Which of the following will be included in a policy summary?

Premium amounts and surrender values

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

What option allows the insured to periodically increase benefit levels without providing evidence of insurability?

Guarantee of insurability

An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pays the insured the difference. What provision allows for this?

Unpaid Premium

Which of the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee.

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individual insured's taxable income.

Which of the following statements concerning group health insurance is CORRECT?

The employer is the policyholder.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy.

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 of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit

Which of the following is another name for a primary care physician in an HMO?

Gatekeeper

Which of the following entities has the authority to make changes to an insurance policy?

Insurer's executive officer

All of the following statements about Medicare supplement insurance policies are correct EXCEPT

They cover the cost of extended nursing home care

All of the following are essential benefits required to be included in all health plans purchased in the Marketplace EXCEPT

Adult dental care.

Your client plans to retire at age 50. He would like to purchase an annuity that would provide income from the time he retires to the age when social security and other pension funds become available. What settlement option should he consider?

Annuity Certain

Which of the following will NOT be an appropriate use of a deferred annuity?

Creating an estate

Which of the following expenses is NOT covered by a health insurance policy?

Funeral

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Nothing; the payments will cease.

An insurer is preparing to pay disability income benefits to an insured. In order to prevent overinsurance, the insurer monitors the income of the insured before submitting payment. Which rule corresponds to this behavior?

Relation of earnings to insurance

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

prepaid plan