Final Exam

Unfair discrimination is BEST described as

Charging a different rate for someone in the same actuarial class.

What type of employee welfare plans are not subject to ERISA regulations?

Church

G purchase a Family Income Policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

10 years. Family Income Policies pay an income beginning at the insured's death and continues for a period specified from the date of the policy issue.

An example of Life Insurance policy replacement would be which of the following?

Cash surrender an existing life policy and purchasing new life policy

Which of the following permits an insurance company to transact business in Nevada?

Certificate of Authority

Which of the following is an example of defamation?

Circulating of any oral or written statement or any pamphlet, circular, article, or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer.

N is covered by a Term Life Policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take ?

Claim will be denied

Payor provision

Provides that in the event of death or disability of the adult premium payor, the premiums on a juvenile policy will be waived until the insured child reaches a specified age or the maturity date of the contract.

Term Life

Term Life insurance would provide the greatest amount of protection for a limited period of time.

Level Term Insurance

Written to cover a need for a specified period of time at the lowest premium

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0 because T is still alive and the ole primary beneficiary, while the mother is still the contingent beneficiary.

N is covered under an individual disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is?

$1,250 / After the 30-day Elimination period has been satisfied, the total benefit paid on this claim is $1,250. ($500+$500+$250).

What is the required renewability status of all Medicare supplement policies?

All Medicare supplements must be guaranteed renewable.

When must an insurance producer's license MUST be renewed every?

3 years. Every 3 years a producer must complete 30 hours of continuing education (3 hours must cover ethics)

How many hours must a producer complete for continuing education every 3 years?

30 hours (3 of which are of ethics)

Nevada requires that newborn coverage begins "from the moment of birth" and a premium must be paid within

31 days

The Maximum time period that pre-existing conditions can be excluded in long-term care policies is

6 months. Conditions for which medical advice, diagnosis, care or treatment was recommended or received in the six months prior to the effective date of enrollment may be excluded for a maximum of six months

J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a predetermined price. What type of plan does J belong to?

A Health Maintenance Organization (HMO) contracts with doctors and hospitals to provide medical benefits to subscribers at a predetermined price.

Which of the following statements about non contributory employee group life insurance is FALSE ?

A minimum number of employees is required to participate. MUST COVER ALL EMPLOYEES

Noncancellable Policy

A noncancellable policy is one which the insurance company cannot cancel and which premiums cannot be increased.

Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical Policy with a $100 deductible and 80/20 coinsurance. How much will be responsible for paying on this claim? A. $2,100 B. $2,000 C. $100 D. $2,020

A. $2,100 $10,000 x 20% coinsurance + $100 deductible = $2,100.

Additional coverage can be added to a Whole Life Policy by adding a(n): A. Decreasing Term Rider B. Payor Rider C. Automatic Premium Loan Rider D. Accelerated Benefit Rider

A. Decreasing Term Rider

T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years. What type of annuity is this? A. Life annuity with Period Certain B. Joint and Full Survivor C. Installment Refund D. Fixed Certain

A. Life Annuity with Period Certain

Which of the following statements BEST describes dental care indemnity coverage? A. Services are reimburse after the insurer receives the invoice B. Very limited list of providers C. Services are reimbursed before the insurer receives the invoice D. In-network dentists must always be used

A. Services are reimbursed after the insurer receives the invoice.

What type of insurance company is domiciled in England, but conducts business in Nevada?

Alien alien = out of US

Which of the following is correct regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary?

All proceeds are income tax free in the year they are received. If a life insurance policy has a stated beneficiary, all the proceeds are income tax free in the year which they are received.

In a viatical settlement, how much does the policyowner receive for a life insurance policy?

Amount less than the death benefit

What does a certificate of authority allow? A. A resident producer to sell insurance contracts in Nevada B. An insurance company to conduct insurance business in Nevada C. A nonresident producer to conduct insurance business in Nevada D. An insurance company to exceed coverage limits that Guaranty Fund covers.

An insurance company to conduct insurance business in Nevada.

Which premium schedule results in the lower cost to the policy owner ?

Annual. If the policy owner chooses to pay the premium more than once a year ... there will be an additional charge because the company will have additional charges in billing and collecting the premium payments.

Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? A. A tax sheltered annuity is available to employees of non-profit organizations B. The income from the TSA is received income tax-free C. The interest earnings are tax deferred D. The amount contributed is deductible from taxable income

B. Upon retirement, payments received by employees from accumulated savings in tax-sheltered annuities are treated as ordinary income.

According to Nevada Law, when must a producer deliver the Outline of Coverage to a Medicare Supplement applicant? A. Within 14 days of the time of application B. At the time of application C. At the time of policy delivery D. Within 14 days of policy delivery

B. At the time of application

A credit life insurance policy covers the life of the A. creditor B. debtor C. Producer D. Beneficiary

B. Debtor a credit life insurance policy covers the life of the debtor

The reason for a business having a Business Overhead Expense Disability Plan is to cover: A. All business-related expenses and salaries B. Fixed business expenses C. The cost of providing group disability insurance to the employees D. The owner's loss of income

B. Fixed business expenses

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premium waived under which provision? A. Assignment provision B. Payor provision C. Waiver of Premium provision D. Accelerated Benefits provision

B. Payor provision

A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as: A. Adjustable Life B. Variable Life C. Modified Whole Life D. Graded-Premium Life

B. Variable Life

Medicaid was designed to assist individuals who are:

Below a specific income limit. Medicaid was enacted to provide medical assistance to those whose income is below a specific limit.

The free look period for life insurance policies issues in Nevada is ____ days. A. 14 B. 45 C. 10 D. 30

C. 10 days

An incomplete life insurance application submitted to an insurer will result in which of these actions? A. Application will be automatically declined B. Application will be approved with restrictions C. Application will be returned to the writing agent D. Application will be pending until a MIB report is sent to the insurer

C. Application will be returned to the writing agent If the company discovers a mistake or incompletion, it usually return the application to the producer.

T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable? A. Benefits are tax-free to T B. Benefits are partially taxable to T C. Benefits are taxable to T D. Benefits are taxable to T's employer

C. Benefits are taxable to T When a disability income insurance plan is paid for entirely by the employer, the premiums are deductible to the employer. The bene fits, in turn, are taxable to the recipient.

Which of the following is included under newborn child health coverage? A. Delivery expenses B. Mother's short term disability C. Birth abnormalities D. Mother's lost wages

C. Birth abnormalities When the insured gives birth, coverage for eligible newly born children includes injury and sickness (including medical care for diagnosed congenital defects and birth abnormalities).

A policyowner is allowed to pay premiums more than once a year under which provision? A. Consideration B. Insuring C. Mode of premium D. Payor

C. Mode of Premium

Suicide Clause of the Policy

Claims are denied under the suicide clause of the policy. Ex. If an insured commits suicide within the contract's stated contestable period.

Which of the following consists of an offer, acceptance, and consideration?

Contract. Offer, acceptance, and consideration are all elements of a contract.

HMO (Health Maintenance Organization)

Contracts with doctors and hospitals to provide medical benefits to subscribers at a predetermined price.

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

Contributory Group Life

Which of the following features of a group Term Life policy enables an individual to leave a group and continue his or her insurance without providing evidence of insurability?

Conversion Privilege

An example of Life Insurance policy replacement would be which of the following? A. Converting existing term life coverage to an individual whole life policy B. Cancelling existing life policy and purchasing a disability policy C. Cash surrender an existing whole life policy D. Cash surrender an existing life policy and purchasing a new life policy

D. Cash surrender an existing life policy and purchasing a new life policy Purchasing a new life insurance policy after cash surrendering an exisiting life policy is considered a life Insurance policy replacement and is heavily regulated.

Which of these actions by a licensee would NOT likely result in license suspension or revocation? A. Maliciously aligning another insurance company's financial status B. Knowingly accepting insurance business from an unlicensed individual C. Willfully submitting false insurance applications D. Sharing commission with another similarly-licensed producer

D. Sharing commission with another similarly-licensed producer

Which mode of payment is NOT used by health insurance policies? A. Monthly premium B. Annual premium C. Semi-annual premium D. Single premium

D. Single premium

A life insurance policy owner may sell their policy to a(n) in order to received a percentage of the policy's face value. A. Insurer B. Viator Agent C. Broker D. Viatical Settlement Provider

D. Viatical Settlement Provider

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued.

Contributory Group Life

Employees share in the premium costs with contributory plans.

Which of these provisions is NOT required in life insurance policies ?

Extended Term

An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period ?

Full Face Amount. If an insured dies during the Grace Period of a life insurance policy before paying the required premium, the beneficiary will receive the face amount of the policy less than any past due premiums.

In Nevada, a Long-Term Care policy must be ___ renewable.

Guaranteed

What is the required renewability status of all Medicare supplement policies?

Guaranteed renewable

In Nevada, a Long-Term Care policy must be _______ renewable.

Guaranteed. In a Nevada, a Long-Term Care policy must be Guaranteed renewable.

Guaranteed Insurability Rider

Guarantees the insured the option of purchasing additional amounts of disability income coverage at predetermined times without requiring the insured to provide evidence of insurability.

Quarterly premium payments increase the annual coast of insurance because

Interest to the insurer is decreased while the administrative costs are increased.

The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured:

Is blinded in an accident

The Nevada Life and Health Insurance Guaranty Association

Is funded by insurance companies through assessments and will pay claims if an insurance company becomes insolvent.

Free Look Period (NEVADA)

Life insurance policies must provide a minimum free look period of 10 days policy delivery. This allows the policyowner time to decide wether or not to keep it. If the policy owner decides not to keep the policy within the 10 days allowed, a full refund will be given.

Which of the following provides funding for the Nevada Life and Health Guaranty Association?

Member Company Assessments

Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?

Misrepresentation

If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best describes this policy is called:

Noncancellable. A noncancellable policy is one which the insurance company cannot cancel and which premiums cannot be increased.

What must be signed by both the producer and applicant when an existing life insurance policy is being reissued with a reduction in cash value?

Notice Regarding Replacement

Member Company Assessments

Provides funding for the Nevada Life and Health Guaranty Association.

When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits ?

Recurrent Disability

Which of these statements accurately describe the Waiver of Premium provision in an Accident and Health Policy ?

The Waiver of Premium provision waves the payment of premiums after the insured has been totally disabled for a specified period of time

Conversion Privilege

The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.

Which of the following statements is correct regarding an employer/employee group health plan?

The employer receives a master policy and the employees receive certificates

Which of the following characteristics is correct about interest sensitive whole life ?

There is a flexible premium payment. It is characterized by premiums that vary to reflect the insurer's changing assumptions regarding its death, investment, and expense factors.

How does a typical Variable Life Policy investment account grow?

Through mutual funds, stocks, bonds.

Fixed Business Expenses

To cover fixed business costs in the event the owner becomes disabled.

Viatical Settlement Provider

To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.

The waiting period for pre-existing condition under a Medicare Supplement policy may not be go beyond.

Under Medicare Supplement policy, the waiting period for pre-existing conditions may not exceed 6 months.

Notice Regarding Replacement

When a policy has been reissued with any reduction in cash value, that is considered a replacement. A Notice Regarding Replacement must be signed by both the producer and applicant.

If a producer determines that the sales of the Medicare Supplement policy involves replacement, the producer must takes all of the following actions, EXCEPT:

Notify the replaced insurance company

An insurance producer has a fiduciary responsibility to all of the following EXCEPT

Other producers because the producer handles money of the insured and insurer, he/she has a fiduciary responsibility.

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to disability?

P will still receive declared dividends.

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?

Payor Provision

Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against?

People that smokes

The premiums paid by an employer for his employee's group life insurance are usually considered to be:

Tax deductible to the employer.

What type of life insurance gives the greatest amount of coverage for a limited period of time?

Term Life

Is a circumstance under which group life insurance policy can be converted to an individual policy.

Termination of Employment

What does a guaranteed insurability rider provide a disability income policyowner?

The ability to periodically increase the amount of coverage without evidence of insurability.

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

The agent should complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company.

In a viatical settlement, how much does the policyowner receive for a life insurance policy?

The amount less than the death benefit

In an Accident & Health policy, the insuring clause states ?

The amount of benefits to be paid

Viatical Statement

The amount received for a life insurance policy in a viatical settlement is less than the death benefit.

ERISA (Employment Retirement Income Security Act)

The primary purpose of ERISA is to regulate and protect those enrolled in retirement and group health plans.

K pays on a $20,000 20-Year Endowment policy for 10 years dies from an automobile Accident.How much will the insurance company pay the beneficiary?

$20,000 death benefit. If the insured dies before the endowment's maturity, the policy's face value — also known as the "death benefit" — is paid in a lump sum to any beneficiaries.

An employee with $25,000 group terms life coverage was recently fired. This employees group coverage may be converted to a ?

$25,000 individual whole life policy (temp to perm)

What is the maximum fine that can be imposed by the commissioner to a producer who violate an insurance law?

$500 per violation.

The required grace period for premium payments on group life policies sold in Nevada is ____ days.

31. A group life insurance policy issued in Nevada MUST have a grace period for premium payment of 31 days.

A is severely injured in an automobile accident and becomes totally disabled.How many months must Q be disabled before being able to apply for Social Security disability benefits?

5. You are eligible to file for Social Security benefits after being totally disabled for 5 months.

A non disabled individual is first eligible for a Medicare Supplement policy at age

65.

All students attending a large university could be covered by:

A blanket policy

Modified Whole Life

Are distinguished by premiums that are lower than typical whole life premiums during the first few years (usually five) then higher than typical thereafter.

Hospital Room and Board

Basic Medical Expense policy pays for ?

Producer

A person required to be license pursuant to the laws of this state to sell, solicit, or negotiate insurance.

Which of the following is the requirement for an individual to perform the duties of an insurance producer ?

Be dully licensed In order to act as an insurance producer, a person must be dully licensed.

T is receiving $3,000/month from a disability income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?

Benefits are taxable to T.

Incontestable Period

After a policy has been in force for 2 (sometimes 3 years), it enters the incontestable period, in which the insurer may not deny a claim based on information not disclosed at the time of application.

A Long-Term Care policy may exclude coverage for which of the following conditions ?

Alcoholism and Drug addiction

What type of insurance company is domiciled in England, but conducts business in Nevada ?

Alien domiciled in another country

Conversion Privilege

Allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.

Provide an example of twisting

An insurance producer is guilty of twisting if the agent misrepresents a policy to induce a policy owner to surrender an existing policy. (MIS-REPRESENTATION)

An insurance company MUST clearly specify questions designed to obtain information solely for marketing research in ?

Any insurance transaction

When can a policy owner change a revocable beneficiary ?

Anytime

Before a life insurance policy is issued, which of these components of the contract is required?

Applicants signature on the application

A Disability Income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim?

Claim will be paid and coverage will remain in force.

Which of the following reimburses its insureds for covered medical expenses?

Commercial Insurers

Insurance contracts are known as _________ because certain future conditions or acts must occur before any claims can be paid.

Conditional.

What is the consideration given by an insurer in the Consideration clause of a life policy ?

Consideration is given by the insurer by promising to pay a death benefit to a named beneficiary

An insurance ______ is a person who, for a fee, offers advice to the public on the benefits and drawbacks of any insurance policy that can be issued in Nevada.

Consultant.

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion Privilege

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?

Convertible Term

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

Coverage become effective on the date of the policy was delivered and first premium collected. Policy becomes effective once the first premium is made.

Variable Life Policy has investment values based on ?

Has investment values based on instruments such as mutual funds, stocks, and bonds.

With Basic Medical Expense policy, what does the hospitalization expense cover?

Hospital room and board

K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the common disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

Daughter A policyowner can be sure that if both the insured and the primary beneficiary die within a sort period of time, the death benefits will be paid to the contingent beneficiary.

A credit life insurance policy covers the life of the

Debtor

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it ?

Decreasing Term

Non-occupational disability coverage is designed for:

Employees who suffer non-work related disabilities, since work-related disabilities are covered by Workman's Compensation.

A group life insurance policy can be converted to an individual whole life policy under the circumstance?

Employment termination

A correct statement about the regulatory authority of the Commissioner with respect to the insurance producers is that the Commissioner may:

Establish guidelines for continuing education as a part of the producer license renewal procedure.

Which of the following is an important underwriting principle of group life insurance?

Everyone must be covered in the group

Which of these provisions is NOT required in life insurance policies?

Extended Term Included: - Free look - Grace Period - Entire Contract

Major Medical Policy

Frequently uses a deductible and coinsurance with a lifetime limit on health insurance.

While in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

Full benefits are payable under the Master Contract (the original contract)

Commercial Insurers

Function on the reimbursement approach. Policy owners obtain medical treatment from whatever source they feel is most appropriate and submit their charges to their insurer for reimbursement.

Reinstatement

In Reinstating a lapsed policy, most insurers require evidence of insurability be provided upon reinstatement of a lapsed policy.

Double Coverage

In double coverage situations, the insurer covering the employee who has the claim is called the primary insurance company. The primary company must pay as much of the claim as the policy limits permit.

A 55 year old recently received a $30,000 distribution from a previous employer's 401 k plan, minus $6,000 withholding. Which federal taxes apply if one of the funds were rolled over ?

Income taxes plus a 10% penalty tax on $30,000 All withdrawals from a qualified retirement plan are taxable as current income. In addition, any withdrawals made before the age 59 1/2 is subject to an additional tax penalty of 10% of the amount withdrawn.

T owns an Accident & Health policy and notifies her insurance company that she has chosen less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?

Increase her policy's coverage amount.

When engaged in an insurance transaction in Nevada, the producer represents the ?

Insurer

Which health policy clause specifies the amount of benefits to be paid ?

Insuring

Twisting

Involves an agent using misrepresentation to convince a policy owner to cancel their current policy so that they can purchase a new life insurance policy with another company.

What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a charge of beneficiary is made ?

Irrevocable beneficiary

Blanket Policy

Issued to cover a group who may be exposed to the same risks, but the composition of the group are constantly changing.

Misrepresentation

It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the payment of dividends, etc. This also refers to oral statements.

L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a Family Policy that covers L's spouse to age 65. A death benefit will NOT be paid in which of the following circumstances?

L's spouse dies at age 66 (the coverage is up to age 65)

Companies in North Carolina may transact solicitations for insurance ONLY through:

Licensed producers

Convincing a prospective insured to buy an insurance policy based on exaggeration is called ?

Misrepresentation.

M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount with remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is:

Modified Premium Life

According to Nevada's rules on disclosure, a life insurance applicant is expected to be provided with

Nevada's rules on disclosure require an insurance company provide a purchaser of life insurance guide and a policy summary.

J has a disability Income policy that does not NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?

Non occupation coverage

T is covered by two health insurance plans: a group plan through his employer and is spouse's plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the:

Primary Carrier

Payor Provision

Provides that in the event of death or disability of the adult premium payor, the premiums on a juvenile policy will be waived until the insured child reaches a specified age or the maturity date of the contract.

Common Disaster Clause

Provides that in the event of simultaneous death, the beneficiary is presumed to die first and therefore the continent beneficiary would be next in line for the proceeds. If no contingent beneficiary, then the proceeds would be paid to the insured's estate.

Change of Occupation

Provision in an Accident & Health Policy, if the insured notifies the insurance company of less hazardous occupation, the insurance company may increase the policy's coverage.

Entire Contract Provision

Provision in life insurance policy states that the application is considered part of the contract.

A Disability Income policy owner suffered a disability which was due to the same cause as previous disability. Both disabilities occurred within a five-month period. The insurer may cover the second disability without a new elimination period under the:

Recurrent Disability Provision

Which of these provisions require proof of insurability after a policy has lapsed?

Reinstatement

Misstatement of Age

Requires that if the age of the insured is misstated, then any amount payable is an amount that the premiums paid would have purchased at the current age or ages.

Revocable Beneficiary v. Irrevocable Beneficiary

Revocable: A beneficiary named by the policy owner that can be changed by the policyowner at his/her discretion. Irrevocable: A beneficiary named by the policy owner that can not be changed by the policyowner at his/her discretion. Changing this beneficiary requires the permission of the beneficiary.

Which of the following services is NOT covered under a hospitalization expense policy?

Surgeon's fees.

Which of the following costs would a Basic Hospital/Surgical policy likely cover?

Surgically removing a facial birthmark

Non occupational coverage

The coverage provided by a Disability Income policy that does not provide benefits for losses occurring as the result of the insured's employment benefits

Which statement is TRUE regarding a group accident & health policy issued to an employer?

The employer receives the policy and each employee is issued a certificate. A master policy is issued to the employer

The Common Disaster Clause provides that if both the insured and the sole named beneficiary were to die in a common accident, which of the following is true?

This clause provides the payment of proceeds to the insured's estate

B the producer sold an insurance contract to a client. B has engaged in ?

Transacting Insurance

Which of the following is considered an accurate statement of an unfair trader practice ?

Twisting involves an agent using misrepresentation to convince a policy owner to cancel their current policy so that they can purchase a new life insurance policy with another company.

Which of the following phrases refers to the fees charged by a healthcare professional ?

Usual, customary, and reasonable expenses. PHRASES

Which of these types of life insurance allows the policy owner to have level premiums and to also choose from a selection of investment options?

Variable Life

A written agreement to provide Life insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a?

Viatical Settlement "Cash for the sale and transfer"

What is the primary factor that determines the benefits paid under a disability income policy?

Wages. Factor determining the benefit amount paid under a disability income policy is wages.

Basic Hospital /Surgical policy likely cover ?

Would most likely cover cosmetic surgery to remove a facial birthmark.

Who benefits in Investor Originated Life Insurance (IOLI) when the insured dies?

policyowner (investor)