Life insurance

Of the following dividend options, which of these is taxable?

Accumulation at interest

Which dividend option would an insurer invest the policy owners money and add any interest earnings as the dividends accrue

Accumulation of interest option

People with higher loss exposure have the tendency to purchase insurance more often than those average risk. This is called

Adverse selection

The term which describes the fact that both parties have a contract may not receive the same value is referred to as

Aleatory

Which of the following does coordination of benefits allow

Allows a secondary payer to reduce the benefit payment so no more than 100% of the claim is paid

The difference between a long-term care partnership plan and a non-partnership plan is which of the following

Asset Protection

What is not a characteristic of a universal life insurance policy

Fixed surrender value

All of these characteristics of a universal life insurance policy except

Fixed surrender value. A fixed surrender value is not a characteristic of a universal life insurance policy

If a producer diverts funds from an insurer, here she may be found guilty of

Fraud

An HMO that involves a partnership of positions and other providers to practice out of a central facility is called a

Group HMO

HMO plans are required to provide

Home health care

Who is responsible for assembling the policy forms for insureds

Insurance carriers

What happens to the interest earned if the annuitant dies before the payout start date

It is taxable

Which of these is not considered to be a common life insurance nonforfeiture option

Life income annuity

What is Medicare part B known as

Medical insurance

A provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid up policy of the same type is called

Nonforfeiture provision

A policy owner suffers an injury that runners him in capable of performing one or more important job duties. Any decrease in income resulting from messenger he would make him eligible for benefits under which provision

Partial disability

What kind of life insurance policy issued by a mutual insurance provides a return of divisible surplus

Participating life insurance policy

The automatic premium loan provision authorizes an insurer to withdraw from a policies cash value the amount of

Past due premiums that I'm not been paid by the end of the grace period

Variable life insurance and universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance

Policy owner has the right to select the investment which will provide the greatest return

Which of these is considered to be a document that describes the critical segments of a life insurance policy

Policy summary

Coordination of benefits regulation applies to all of the following plans except

Preferred provider organization plan

How are survivorship life insurance policies helpful and estate planning

Provide funds to help pay taxes

Dana is an employee who deposits a percentage of her income into her individual annuity. Her company is also contributes a percentage into a separate company pension plan. What kind of annuity is this considered

Qualified retirement annuity

What is the primary feature of a viatical settlement

Reduce death benefit prepayment

A policy owner may exercise which of these dividend options that uses the dividend pay all or part of the next premium due

Reduction of premium dividend option

What three levels of care or long-term care policies provided with

Skilled nursing, intermediate, and custodial

A non-participating company is sometimes called

Stock insurer

And ensure has the right to recover payment made to the insured for the negligent party these rights are called

Subrogation

Which of these is not a characteristic of the accelerated death benefit option

The benefit can be offered as a rider at a specific extra cost or may be at no cost

What does the word level in level term describes

The face amount

A non-contributory health insurance plan helps the insurer avoid

adverse selection

Group dental plans will frequently place a limit on annual benefits in order to minimize

adverse selection

In an insurance contract, the element that shows each party is giving something of value is called

consideration

Level premium permanent insurance accumulates a reserve that will eventually

equal the face amount of the policy

The waiting period for a disability insurance policy

excludes payments for a short-term illness or injury

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contracts

income period

Pierre is covered by his employers group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable income under this plan

$0. Benefits that fall under a major medical plan are considered to be a reimbursement for a lost and it's not taxable income

Lorenzo is self-employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?

100% of his health insurance costs can be deducted from his gross income

The acceptance of a credit life application requires the submission of a certificate of insurance to the insured within how many days

30

Within how many days most a rollover be completed in order to avoid paying taxes current income

60

What percentage of our participants income our group long-term disability benefit amounts typically limited to

60%

A type of ensure that is owned by its policy owner is called

A mutual insurer

What is not an example of a business continuation plan

Deferred compensation

What is created after policy proceeds are obtained in a lump sum and then immediately invested

Estate

When calculating the amount of life insurance needed for an income earner, what has to be determined when using the needs approach?

The family's financial objectives of the income earner were to die or become disabled

The illumination. Under hospital indemnity plan is

The specified number of days and insured must wait before becoming eligible to receive benefits for each hospitalization

What is the elimination period of an individual disability policy

Time period a disabled person must wait before benefits are paid

A life insurance policy sold the Michigan may be contested by the insurer only during the first how many years of the contract

Two

A life insurance policy which contains cash values that vary according to his investment performance of stocks

Variable whole life

A PPO subscriber receives care from an out of network provider. Is the care covered?

Yes