exam 3 review

For how long is an insurance company allowed to defer policy loan requests? a)30 day sb)60 days c)6 months d)1 year

6 months

The benefits for individual disability plans are based on a)A flat amount. b)The employer's net worth. c)The number of employees of the company. d)A percentage of the worker's income.

A flat amount.

Which of the following does the Insuring Clause NOT specify? a)A list of available doctors b)Covered perils c)The insurance company d)The name of the insured

A list of available doctors

An insured receives an annual life insurance dividend check. What term best describes this arrangement? a)Cash option b)Reduction of Premium c)Annual Dividend Provision d)Accumulation at Interest

Cash option

Which of the following is TRUE about credit life insurance? a)Debtor is the policy beneficiary. b)Creditor is the policyowner. c)Debtor is the annuitant. d)Creditor is the insured.

Creditor is the policyowner.

Each HMO enrollee must be provided a)Evidence of coverage. b)Buyer's guide. c)Nondisclosure agreement. d)Certificate of authority.

Evidence of coverage.

Health Savings Accounts (HSAs) are designed to a)Increase individual interest income. b)Insure against catastrophic losses. c)Provide duplicate coverage for health care expenses. d)Help individuals save for qualified health expenses.

Help individuals save for qualified health expenses.

All of the following are Nonforfeiture options EXCEPT a)Extended term b)Reduced paid-up c)Interest only d)Cash surrender

Interest only

If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used? a)Life income b)Fixed period c)Fixed amount d)Lump sum

Lump sum

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report a)Must be advised that a copy of the report is available to anyone who requests it. b)May sue the reporting agency in order to get inaccurate data corrected. c)Must be informed of the source of the report. d)Are entitled to obtain a copy of the report from the party who ordered it.

Must be informed of the source of the report.

Premium payments for personally-owned disability income policies are a)Tax deductible to the extent that they exceed 10% of the adjusted gross income of those itemizing deductions. b)Not tax deductible .c)Eligible for tax credits. d)Tax deductible.

Not tax deductible.

All of the following are covered by Part A of Medicare EXCEPT a)Physician's and surgeon's services. b)In-patient hospital services. c)Post-hospital nursing care. d)Home health services.

Physician's and surgeon's services.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to a)Purchase a single premium policy for a reduced face amount. b)Purchase a term rider to attach to the policy. c)Pay back all premiums owed plus interest. d)Receive payments for a fixed amount.

Purchase a single premium policy for a reduced face amount.

The regulations regarding replacement apply to which of the following? a)Renewable term b)Replacement of existing policy by the same insurer c)Credit life d)Group life

Renewable term

Which health insurance provision describes the insured's right to cancel coverage? a)Insuring clause b)Cancellation provision c)Renewal provision d)Policy duration provision

Renewal provision

When an employee covered under a health reimbursement account changes employers, the HRA a)Follows the employee. b)Returns to the insurer. c)Is split between the employee and employer. d)Stays with the employer.

Stays with the employer.

All of the following would be different between qualified and nonqualified retirement plans EXCEPT a)IRS approval requirements b)Taxation on accumulation c)Taxation of withdrawals d)Taxation of contributions

Taxation on accumulation

Which of the following information will be stated in the consideration clause of a life insurance policy? a)The time period allowed for the payment of premium b)The conditions for insurability c)The amount of premium payment d)The parties to the contract

The amount of premium payment

Who determines the eligibility and contribution limits in a HRA? a)The employer determines eligibility and the insurer determines contribution limits b)The insurer determines eligibility and the employer determines contribution limits c)The insurer determines both d)The employer determines both

The employer determines both

What is the advantage of reinstating a policy instead of applying for a new one? a)Proof of insurability is not required. b)The face amount can be increased. c)The cash values have gained interest while the policy was lapsed. d)The original age is used for premium determination.

The original age is used for premium determination.

All of the following statements apply to temporary licenses EXCEPT a)They are valid for up to 180 days. b)They allow licensees to sell new policies. c)They require 40 hours of license training. d)They may be issued without a written examination.

They allow licensees to sell new policies.

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT a)When used to replace or supplement benefits payable under other social insurance programs. b)When the insured is eligible for Social Security benefits but before the benefits begin. c)If the insured has been denied coverage under Social Security. d)When the amount payable under Social Security is more than the amount payable under the rider.

When the amount payable under Social Security is more than the amount payable under the rider.

The main difference between immediate and deferred annuities is a)The number of insureds. b)The amount of each payment. c)When the income payments begin. d)How the annuity is purchased.

When the income payments begin.