Exam 5
49. Term insurance is typically characterized by a. Low premiums and high cash value b. High premiums and high cash value c. High premiums and no cash value d. Low premiums and no cash value
d. Low premiums and no cash value
70. Medicare Part A provides coverage for all of the following, except a. Home health care b. Hospice c. Hospitalization d. Physicians services
d. Physicians services
35. Which of the following statements about the HICAP program is false? HICAP a. Stands for Health Insurance Counseling Advocacy Program b. Serves people needing information about Medicare c. Does not sell or endorse any specific types of insurance d. Provides assistance for a fee based upon ability to pay
d. Provides assistance for a fee based upon ability to pay
17. The guaranteed insurability option provides the ability to: a. Waive premium payments in the event of disability b. Access a portion of the death benefit in the event of serious illness c. Double the amount of the death benefit in the event of accidental death d. Purchase additional insurance regardless of insurability
d. Purchase additional insurance regardless of insurability
18. Which type of insurance guarantees the right to renew the policy each year, regardless of health, but at an increased premium? a. Convertible term b. Level term c. Decreasing term d. Renewable term
d. Renewable term
12. An intentional concealment entitles the injured party to which course of action? a. None, due to the fact that the concealment was unintentional b. $250 fine to be paid to the injured party c. Possible imprisonment to the party who concealed the information d. Rescission of the contract
d. Rescission of the contract
99. Unintentional concealment entitles the injured party to which course of action? a. Possible imprisonment to the party who concealed the information b. $250 fine to be paid to the injured party c. None, given the fact that the concealment was unintentional d. Rescission of the contract
d. Rescission of the contract
83. There is a type of benefit that pays for the cost of relief given to the caregiver of a person who requires constant care and supervision. What is this type of care called? a. Custodial care c. Intermediate relief care b. Hospice care d. Respite care
d. Respite care
23. An individual with a low income and high insurance needs should buy a. Whole life insurance b. Endowment insurance c. Universal life insurance d. Term insurance
d. Term insurance
74. Concerning Part B of Medicare, which of the following is incorrect? a. There is an annual deductible and co-payment b. It is paid entirely by FICA (social security) payroll taxes. c. An individual must sign a form rejecting Part B or they will be enrolled in it. d. It provides some coverage and benefits for most medical expenses not covered by Part A.
b. It is paid entirely by FICA (social security) payroll taxes.
67. During the disability elimination period a. Residual benefits are payable b. No benefits are payable c. Occupational claims are payable d. All claims are payable
b. No benefits are payable
80. Which of the following is not allowed by code in connection with the sale of Medicare supplement policies? a. Offer only core benefits b. Offer only broader plans c. Offer core plans as a stand-alone or offer core plans along with broader plans. d. Both A and B are not allowed
b. Offer only broader plans
15. When are parties to a contract required to communicate information solely based on personal judgment for a matter in question a. Only when asked b. Only when relevant c. Only when the policy terms require it d. Never
b. Only when relevant
33. People commonly purchase an annuity to protect against the risk of a. Dying before their home mortgage is paid off b. Outliving their financial resources c. Becoming uninsurable d. Dying too soon
b. Outliving their financial resources
2. A health maintenance organization (HMO) plan contains costs by promoting: a. After-hours care b. Preventative care c. Generic care d. Fee for service care
b. Preventative care
86. Which of the following categories of benefits are not covered in a long-term care policy? a. Home care benefits b. Acute care coverage in a hospital c. Custodial care benefits d. Community based care benefits
b.Acute care coverage in a hospital
81. Medicare covers which of the following in order to provide long-term care for the elderly: a. Very broad and substantial intermediate care benefits b. A wide range of custodial care coverage. c. Very limited nursing home coverage. d. Medicare provides none of the above.
c Very limited nursing home coverage.
85. Pick from the following choices the features of a long-term care policy that would have the highest premium. 1. Long benefit period 3. Long elimination period 2. Short benefit period 4. Short elimination period a. 1 and 3 b. 2 and 3 c. 1 and 4 d. 2 and 4
c. 1 and 4
88. Long-term care policies that deliver benefits for community based or home care services must include which of the following: 1. Respite care 2. Hospice Care 3. Home health care services a. 1 and 3 b. 1 and 2 c. 1, 2 and 3 d. d. none of the above
c. 1, 2 and 3
65. In California, the minimum participation requirement for a contributory large group health insurance plan is a. 50% of eligible employees c. 75% of eligible employees b. 25% of eligible employees d. 40% of eligible employees
c. 75% of eligible employees
44. Which of the following is a hazard? a. A large number of similar exposure units b. A peril c. A condition that might increase the likelihood of a loss occurring d. A speculative risk
c. A condition that might increase the likelihood of a loss occurring
22. Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness? a. Waiver of premium b. Cost of living c. Accelerated death benefit d. Disability income
c. Accelerated death benefit
38. A measure for rating an individual's need for LTC benefits is called: a. Case management b. The gatekeeper mechanism c. Activities of daily living d. Co-insurance
c. Activities of daily living
92. An agent advertising on the internet must include all of the following in the advertisement, except: a. Agent's license number b. Agent's business address in the state c. Agent's business telephone number d. Agent's true and/or fictitious name
c. Agent's business telephone number
59. Under social security, the definition of disability is the inability to engage in a. An approved occupation c. Any substantial gainful activity b. An activity with a given level of compensation d. The person's chosen career
c. Any substantial gainful activity
84. Long-term care policies can be sold in various ways. Which of the following is one of these ways? a. As part of an auto policy b. As a part of a comprehensive homeowner umbrella policy c. As part of a life insurance policy through the use of an endorsement
c. As part of a life insurance policy through the use of an endorsement
57. All of the following statements about social security disability benefits are true, except a. Benefits are based on the level of a worker's earnings up to the time of the disability b. Benefits will continue only while the worker cannot work at all c. Benefits are designed to replace the entire amount of a worker's earnings d. Workers must be totally and permanently disabled for at least five months to be eligible for benefits
c. Benefits are designed to replace the entire amount of a worker's earnings
62. The insured's policy has a deductible that is applied between the exhaustion of basic plan limits and the commencement of excess coverage. This is called a: a. Family deductible b. Per cause deductible c. Corridor deductible d. Stop-loss limit
c. Corridor deductible
58. Under COBRA, a qualifying event ensures that an employee who loses coverage can a Transfer coverage to another group c. Elect to continue coverage b. Convert to an individual policy d. Request a waiver of premium
c. Elect to continue coverage
16. Which statement is true regarding Medicare Supplement Insurance plans? a. Insurers may offer only broad coverage plans that contain both core benefits and additional benefits b. Insurers may freely offer whatever supplemental coverages they prefer to market c. Insurers may offer policies that contain only the core benefits d. Insurers may create insurance policies for approval by the CA Department of Insurance
c. Insurers may offer policies that contain only the core benefits
73. Which of these statements concerning Medicare is not true? a. Part A provides hospital care. b. Part B provides doctors and physicians services. c. Part C provides long-term care benefits. d. It is part of the Social Security program
c. Part C provides long-term care benefits.
41. A health insurance deductible is: a. The insured's payment for healthcare that is not considered a covered expense b. The cost of a covered expense minus the office co-payment c. The portion of insurance premium paid for coverage by the insured d. The amount of covered expense that the insured pays before the insurer pays
d. The amount of covered expense that the insured pays before the insurer pays
77. In the Medicare system, the services provided by doctors and surgeons are covered by: 1. Part A 3. There is no charge for coverage 2. Part B 4. There is a charge for coverage a. 1 and 3 b. 1 and 4 c. 2 and 3 d. 2 and 4
d. 2 and 4
40. Which of the following are commonly covered by medical expense policies? a. Elective cosmetic surgeries b. Expenses covered by a workers compensation policy c. Pre-existing conditions d. Accidental injuries
d. Accidental injuries
37. The insured, aged 65, owns a $100,000 non-participating whole life policy. The policy is paid-up as of today. When would the cash value reach $100,000? a. Today b. Age 85 c. Never d. Age 100
d. Age 100
71. According to the CA Insurance Code, all insurers must maintain a department to investigate: a. Possible abuses of rating laws b. Possible arson c. Possible fraudulent claims from insureds d. Possible abuses of fiduciary responsibilities
. Possible arson c. Possible fraudulent claims from insureds
98. A group health plan third party administrator might do any of the following, except: a. Receive employee payments b. Pay policy owner premiums c. Track insured eligibility d. Handle member complaints
.b. Pay policy owner premiums
28. The insured is totally and permanently disabled. The insured's policy continues in force without the payment of a premium because the policy contains a a. Grace period provision b. Reinstatement provision c. Guaranteed insurability provision d. Waiver of premium provision
.d Waiver of premium provision
75. From the list of descriptions below, select the one that is not eligible for Medicare. a. A person who has been entitled to Social Security disability benefits for 24 months. b. A person who has reached 65, is willing to pay a premium but is not eligible for Social Security. c. A person who has reached 65 and is eligible for Social Security. d. All the above are eligible
d. All the above are eligible
3. Renewable term insurance can be best described as: a. A level death benefit with an increase in premium b. A level death benefit with a decrease in premium c. A decreasing death benefit with a level premium d. An increasing death benefit with a level premium
a. A level death benefit with an increase in premium
48. Common life insurance policy riders include all of the following, except: a. Extended term b. Guaranteed insurability c. Accidental death d. Waiver of premium
a. Extended term
30. If an insurer is not able to meet financial obligations when due, the insurer would be considered a. Insolvent b. Unauthorized c. Impaired d. Non-admitted
a. Insolvent
100. When may a representation be withdrawn? a. Only before the insurance is in effect b. At any time as long as both parties agree c. It can never be withdrawn d. Only after the policy is in effect
a. Only before the insurance is in effect
54. The Employee Retirement Income Security Act of 1974 (ERISA) mandates requiring plan sponsor to provide participants with a. Plan descriptions and benefit statements b. Trust and solvency reports c. Reports of tax qualification fulfillment d. Annual financial statements
a. Plan descriptions and benefit statements
4. The basic feature of a managed care indemnity plan is that the participants a. Select a provider and submit claims to the insurance company b. Select a provider at work and claims processor c. Pre-select a physician and third-party claims administrator d. Pre-select a clinic and submit claims to the insurance company
a. Select a provider and submit claims to the insurance company
91 Which of the following covers the costs associated with one stipulated illness? a. Specified Disease b. Critical illness c. Medical expense d. Disability income
a. Specified Disease
24. An example of a third party administrator is: a. An agent's supervisor who takes part of his commission b. An employee who handles self-insurance claims c. An employee who is responsible for evaluating for relative quality of competing group health and welfare benefits offered to his employer by insurers d. An outside organization that processes claims for an employers' self-funded plans
d. An outside organization that processes claims for an employers' self-funded plans
64. Each of the following terms is an important characteristic of a major medical policy, except a. Deductible b. Co-insurance c. Maximum amounts d. Capitation
d. Capitation
56. Under an individual health guaranteed renewal contract, the insurer has the right to a. Discontinue coverage on the basis of employment b. Cancel the policy for health reasons c. Make unilateral benefit changes d. Change premiums for the same class insured
d. Change premiums for the same class insured
47. A provision stating that health insured's and their insurers will share covered losses in an agreed proportion is called a. The stop-loss provision b. Percentage insuring c. Comprehensive insurance d. Co-insurance
d. Co-insurance
72. Which of the following is a type of deductible that charges the insured after basic medical benefits have been paid, and before other medical coverage begins? a. Out-of-pocket limit c. Carry-over provision b. Calendar deductible d. Corridor deductible
d. Corridor deductible
10. What would be the Insurance Commissioner's most likely course of action if an applicant for an insurance license had a previous application for a professional license denied for cause by any licensing authority within five years of the date of the filing? a. Deny the application probably after a hearing b. As long as it was not insurance related, the application will be granted c. Approve only after a review by a panel of insurance professionals d. Deny the application without a hearing
d. Deny the application without a hearing
51. What would we call a representation which fails to correspond with its stipulations or assertions? a. Fatal b. Fraud c. Frivolous d. False
d. False
96. "The seamless delivery of medical and indemnity benefits for both occupational and non-occupational injuries and illnesses" is the definition of: a. Worker's compensation b. 24-hour coverage c. All disability policies
b. 24-hour coverage
97. In California after January 1, 2002, the definition of health insurance includes all of the following types of coverages, except: a. Group medical coverage b. Accidental death and dismemberment coverage c. Individual hospital coverage d. Individual surgical benefits
b. Accidental death and dismemberment coverage
5. How do rights of an irrevocable beneficiary differ from those of a revocable beneficiary? a. An irrevocable beneficiary may be changed by the policy owner without the beneficiary's consent b. An irrevocable beneficiary has a vested right that neither the policy owner nor his creditors can impair without the beneficiary's consent c. A revocable beneficiary can become the policy owner at any time by paying the premiums d. An irrevocable beneficiary has the right to name a contingent beneficiary for the policy
b. An irrevocable beneficiary has a vested right that neither the policy owner nor his creditors can impair without the beneficiary's consent
19. What is required when an applicant reveals conditions that require more information? a. Physical Examination b. Attending physician's statement c. Investigative consumer report d. Agent's report
b. Attending physician's statement
68. A provision stating that the insured and the insurer will share covered losses in an agreed proportion is called a. Percentage sharing b. Co-insurance c. Stop-loss provision d. Comprehensive insurance
b. Co-insurance
78. A person reaches the age of 65 and is currently covered under her employer's health plan. She elects to take Medicare coverage by rejecting her employer's plan. This still keeps the company plan primary. a. True b. False
b. False
90. The Health Insurance Counseling Advocacy Program (HICAP) provides assistance to the public on a fee basis if the person requiring assistance is financially able to pay. a. True b. False
b. False
43. Which of the following expenses is never covered by a LTC insurance policy? a. Home health care b. Hospital acute care unit c. Adult day care d. Alzheimer's disease
b. Hospital acute care unit
34. In the event of an accidental death, the principal sum in a disability policy will be paid a. Over the course of a set period b. In one lump sum c. On a sliding schedule d. As a monthly indemnity
b. In one lump sum
7. Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks? a. Guaranteed b. Insolvent c. Solvent d. Non-participating
b. Insolvent
87. Any long-term care policy sold in California must provide for certain benefits. Select the most correct answer describing these benefits from the choices below. a. Home care only c. Institutional care only b. Medicare supplement d. Institutional care and home care
d. Institutional care and home care
95. FMLA provides how many paid weeks for time off? a. 0 weeks b. 2 weeks c. 6 weeks d. 12 weeks
a. 0 weeks
93. The Family Medical Leave Act (FMLA) covers all of the following except: a. Expenses incurred due to travelling with a partner that has been transferred abroad b. The adoption of a child c. Caring for a disabled parent d. Personal medical needs
a,Expenses incurred due to travelling with a partner that has been transferred abroad
11. An insured bought a $150,000 non-participating whole life policy many years ago. He is 100 years old today. He has never borrowed from the policy's cash value and has faithfully made all payments when due. The policy's cash value is a. $150,000 b. $100,000 c. $0 d. $50,000
a. $150,000
d. More than one contingent beneficiary may be named 27. The payor rider on a juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the age specified on the policy a. The insurer will make the payments until the insured juvenile reaches the specified age b. The insurer will lend money to keep the policy in force c. The insured's estate will make the premium payments d. The insurer will make all of the policy payments
a. The insurer will make the payments until the insured juvenile reaches the specified age
63. What makes up the entire contract in a life insurance policy? a. The policy, and when attached, the application b. The policy, and any sales literature presented by the agent of the policy holder c. The policy, the application, and any verbal understandings d. The policy by itself, but never the application
a. The policy, and when attached, the application
13. Loss retention is an effective risk management technique when all of the following conditions exist, except: a. The probability of loss is unknown b. The insured chooses to assume the losses involved c. The losses are highly predictable . d. The worst possible loss is not serious
a. The probability of loss is unknown
61. Which of the following is a true statement regarding the social security (OASDHI) program? a. The program provides only a minimum floor of income. Individuals are expected to supplement this with their own personal programs. b. The actuarial value of each person's contributions are closely related to the actuarial value of each person's benefits c. With only a few exceptions, this is a voluntary program d. The program is fully funded
a. The program provides only a minimum floor of income. Individuals are expected to supplement this with their own personal programs.
82. Choose the correct statement about long-term care (LTC) insurance. a. Those who are very rich or very poor probably are not in need of long term care coverage. b. The annual cost of nursing home care was about $10,000 in 1990. c. One of the best-structured plans for long term care for those in the middle class is Medi-Cal. d. The need for long term care insurance begins only at middle age.
a. Those who are very rich or very poor probably are not in need of long term care coverage.
21. The probationary period in a group health policy is intended for people: a. Who joined the group after the policy effective date b. Without health coverage after a qualifying event c. Who declined to join the group at the time of eligibility d. With a pre-existing condition when they joined the group
a. Who joined the group after the policy effective date
39. In order to receive the principal sum benefit for death from a disability policy, the death must occur a. Within a specified number of days after injury b. Any time during a rehabilitation period c. Any time during a total dismemberment period d. Within the policy period from any cause
a. Within a specified number of days after injury
94. All of the following are classed by the Americans with Disabilities Act (ADA) as life activities except: a. running b. walking c. seeing d. hearing
a. running
52. In the state of California: a. Twisting is an approved practice b. Providing free insurance coverage in connection with the sale of services as an inducement for completing the transaction is not legal c. Life and health ratings may not be related to the age of the insured d. A life solicitor's license has the same licensing requirements as a life agent's license
b. Providing free insurance coverage in connection with the sale of services as an inducement for completing the transaction is not legal
20. RW and Associates is an agency which represents BLG Insurance Corporation. RW and Associates may leave the name BLG Insurance Corporation in its advertisements by clearly stating the relationship between the two businesses in any of the following ways, except: a. RW and Associates who represent BLG Insurance Corporation b. RW and Associates underwriting for BLG Insurance Corporation c. RW and Associates placing business through BLG Insurance Corporation d. RW and Associates using the services of BLG Insurance Corporation
b. RW and Associates underwriting for BLG Insurance Corporation
31. What does the Insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage? a. Fine the insurance company for non-compliance b. Suspend or revoke the license of the agent c. Authorize the agent with a certificate of convenience d. Request a certificate of authority be issued immediately
b. Suspend or revoke the license of the agent
76. Hospice care provides services to patients who are: a. In a hospital and expected to recover c. Receiving respite care through Medicare b. Terminally ill d. None of the above
b. Terminally ill
46. When a licensed agent submits a renewal application with applicable fee on or before the expiration date a. The agent will be able to operate if a receipt for payment is returned prior to the license expiration date. b. The agent will be able to operate for up to 60 days after the specified expiration date. c. The agent will be able to operate if the agent goes in person to the insurance department to receive a temporary extension of the license d. The agent will be able to continue to operate after a 30 day extension to operate without receipt if requested and approved
b. The agent will be able to operate for up to 60 days after the specified expiration date.
26. All of the following statements about contingent beneficiaries are true, except a. They receive remaining payments to be made under a settlement agreement upon the primary beneficiary's death b. The contingent beneficiary shares death proceeds equally with the primary beneficiary c. They receive the death proceeds if the primary beneficiary is deceased at the time of the insured's death
b. The contingent beneficiary shares death proceeds equally with the primary beneficiary
45. A hospital confinement indemnity insurance policy pays a. An indemnity to the insured for all expenses incurred when the insured is confined to a hospital b. The daily benefit coverage amount stated in the policy for each day the insured is confined in the hospital c. 100% of the covered medical expenses less the deductible and co-insurance percentage d. The amount of the actual hospital expenses
b. The daily benefit coverage amount stated in the policy for each day the insured is confined in the hospital
66. Which of the following is a correct statement about life insurance policy types? a. Group life insurance is offered only to employees who provide evidence of insurability b. The initial premium for term insurance is lower than the initial premium for whole life insurance c. Limited payment whole life policies stay in effect only for as long as the premium is paid d. Universal life policies have a structured premium payment schedule that must be followed during the entire contract period
b. The initial premium for term insurance is lower than the initial premium for whole life insurance
29. All of the following statements about survivorship life insurance are true, except a. The policy face amounts are usually more than $1,000,000 b. The policy face amount is paid out only upon the death of the first insured to die c. It offers premiums that are quite low compared to what is charged on separate policies d. It is particularly well suited to meet the needs of estate taxes
b. The policy face amount is paid out only upon the death of the first insured to die
89. Which of the following is false about the marketing of long-term care insurance according to the code? a. They can exclude degenerative conditions like Alzheimer's. b. They may require hospital stays of certain lengths be satisfied before benefits are provided. c. "Inflation guard" is a non-legal provision in LTC policies d. All the above are false
b. They may require hospital stays of certain lengths be satisfied before benefits are provided.
8. All of the following statements about the election of a life insurance policy's settlement options are true, except: a. The election is made by the policy owner at the time the application is submitted b. When no settlement option is chosen, the proceeds are automatically paid to the policy owner's estate c. The policy owner may change the settlement option after it has been chosen d. The election may be made by the beneficiary if no settlement option is in force at the time of death of the insured.
b. When no settlement option is chosen, the proceeds are automatically paid to the policy owner's estate
1. A disability income policy social insurance supplement (SIS) benefit rider: a. Pays benefits only if it turns out the insured is eligible for benefits from social insurance b. Pays a benefit if the insured is injured on the job and qualifies for workers compensation benefits c. Provides a payment only when the insured is totally disabled, but not receiving any social insurance benefit plans d. Provides for a bonus payment that will match social security disability income benefits, if they are paid
c. Provides a payment only when the insured is totally disabled, but not receiving any social insurance benefit plans
6. What recourse does an insurer have if a violation of a material warranty on the part of the insured is discovered? a. A hearing by the Insurance Commissioner to determine the severity of the misrepresentation, and to determine an appropriate course of action b. None, if the policy has been in force for over 12 months c. Rescission of the policy d. A hearing by a court of law to determine an appropriate course of action an insurer may take
c. Rescission of the policy
14. A disability policy, described as "guaranteed renewable" is one where the insurance company a. Surrenders the right to change the premiums b. Reserves the right to change any of its terms c. Reserves the right to change the premiums, but may not change any of its terms d. May not renew the policy if the insured ceases to comply with certain conditions such as continued employment
c. Reserves the right to change the premiums, but may not change any of its terms
25. A form of rest or relief offered to family members who are caring for a person who requires continual care is: a. Hospice care b. Hospital care c. Respite care d. Intermediate care
c. Respite care
53. The adjustments that an insurer makes in a cash value account in a universal life policy each time a payment is made includes all of the following, except a. Subtract from mortality and general expense charges b. Add the current interest c. Subtract the policy surrender charges d. Add the current premium paid
c. Subtract the policy surrender charges
42. According to the CA Insurance Code, an insured's policy must specify all of the following, except: a. The risks insured against b. The property or life being insured c. The financial rating of the insurer d. The policy period
c. The financial rating of the insurer
79. Which of these statements is not true with regard to insurers and policies that provide Medicare supplement coverage? a. They are required to issue all policies on either a guaranteed renewable or non-cancelable basis. b. If the policy has been in force for at least 6 months, the insurer is prohibited from excluding any preexisting conditions. c. The insurers are prohibited from any exclusion for all preexisting conditions.
c. The insurers are prohibited from any exclusion for all preexisting conditions.
32. Which definition of disability is the most difficult for an injured worker to satisfy? a. The own-occupation definition used by the Social Security Administration b. The typical definition of partial disability used by disability income policies c. The total disability definition used by the Social Security Administration d. The typical definition of temporary disability used by disability income policies
c. The total disability definition used by the Social Security Administration
55. Which of the following requires a reporting company to respond to a consumer's complaint that his file contains inaccurate information about them a. Unfair Practices Act b. COBRA c. Fair Credit Reporting Act d. Medical Information Act
c.Fair Credit Reporting Act
50. A $50,000 whole life policy with a cash value of $10,000 has been in force for 11 years. The policy owner is unable to continue the premium payments. Which of the following describes the reduced paid-up non-forfeiture option? a. The policy owner begins to receive $200 monthly payments from the insurer that will continue for life b. The policy is surrendered and the policy owner is paid $10,000 by the insurer c. The cash value is used to purchase a $50,000 term policy that is paid-up for 10 years d. The cash value is used to purchase a $20,000 paid-up policy
d. The cash value is used to purchase a $20,000 paid-up policy
36. Why is having a large number of similar exposure units important to insurers? a. The greater the number insured, the more premium is collected to offset fixed costs b. The insurer increases its market share with every insured c. The greater the number insured, the greater the amount of premiums collected to help cover losses d. The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums
d. The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums
69. While an insurer is paying the premium for a life insurance policy under the waiver of premium rider a. The insurer is named as the primary beneficiary b. The cash value does not increase c. The dividend payments cease d. The policy remains in full force in every respect
d. The policy remains in full force in every respect
60. Which of the following statements about LTC is correct: a. In 1990, the average annual cost for a nursing care home was approximately $10,000 per year b. The need for LTC coverage can arise only after age 50 c. Medi-Cal is one of the most commonly sold LTC policies. It is designed to protect the assets of middle-class Californians d. The very poor and the very rich probably do not need LTC coverage
d. The very poor and the very rich probably do not need LTC coverage
9. What is the purpose of "key person" insurance? a. To provide health insurance benefits to key employees b. To give a key employee the ability to purchase the business c. To give retirement benefits to key employees d. To cover decreased business earnings due to the death of a key employee
d. To cover decreased business earnings due to the death of a key employee