focused part 2
Which of the following is TRUE about a class designation? a)Beneficiaries are not identified by name. b)Beneficiaries must be part of the insured's immediate family. c)It is not allowed. d)It determines the succession of beneficiaries.
A A class of beneficiary is using a designation such as "my children". This can be a vague term if the insured has been married more than once, or has adopted or illegitimate children. Many insurers encourage the insured to name each child specifically and to state the percentage of benefit they are to receive.
The state of Kansas has enacted a plan designed to promote the availability of health insurance to small employers. To be eligible for coverage under this act, which of the following requirements must be met? a)Employers must employ no more than 50 full-time employees. b)Employers must submit their claims experience records to qualify for small employer plans. c)Employees to be covered must meet medical insurability standards. d)Employees must be scheduled to work no more than 20 hours each week.
A Kansas' Small Employers Health Insurance Availability Act was enacted to promote the availability of health insurance coverage to small employers regardless of their health status or claims experience. Eligible employers must employ from 2 to 50 eligible employees on more than 50% of business days in the preceding year.
Which statement is true about the proceeds of a life insurance policy? a)The lawful beneficiary is entitled to all policy benefits free from all claims of creditors or representatives of the insured's estate. b)No proceeds can be paid to the lawful beneficiary unless he/she is at least 18 years old. c)The beneficiary must have an insurable interest in the insured. d)The lawful beneficiary receives the proceeds after all creditors of the estate have been paid.
A There is no requirement that the beneficiary show insurable interest with respect to a life insurance policy. Death benefits are paid to the beneficiary and are not subject to the creditors of the insured's estate, unless there was an assignment of benefits prior to the insured's death.
All of the following statements about Medicare supplement insurance policies are correct EXCEPT a)They cover the cost of extended nursing home care. b)They cover Medicare deductibles and copayments .c)They supplement Medicare benefits. d)They are issued by private insurers.
A edicare supplement policies (Medigap) do not cover the cost of extended nursing home care
If a company has a Simplified Employee Pension plan, what type of plan is it? a)An undefined contribution plan for large businesses b)A qualified plan for a small business c)The same as a 401(k) plan d)The same as an IRA, with the same contribution limits
B A Simplified Employee Pension (SEP) is a type of qualified plan suited for the small employer or for self-employed. A SEP is an employer-sponsored IRA with an expanded contribution rate up to 25% of compensation or a specified maximum contribution amount.
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be? a)Installment refund b)Cash refund c)Installments for a fixed period d)Installments for a fixed amount
C Under the "installments for a fixed period" option, the annuitant selects the time period for the benefits, and the insurer determines how much each payment will be. This option pays for a specific period of time only, and there are no life contingencies.
Under an extended term nonforfeiture option, the policy cash value is converted to a)A lower face amount than the whole life policy. b)A higher face amount than the whole life policy. c)The same face amount as in the whole life policy. d)The face amount equal to the cash value.
C Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy.
What provision is used to reduce over insurance? a)Entire contract b)Controlled business c)Coordination of benefits d)Insuring clause
C When both husband and wife are covered under an employer group plan at their places of employment and also covered as a dependent under their spouses plan, the insurance coverage at their respective place of employment will be the primary payor and their coverage as a dependent under their spouse plan will be considered as excess. This is to reduce over insurance.
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death? a)Capital sum b)Double the amount of the death benefit c)Refund of premiums d)Principal sum
D Accidental Death and Dismemberment coverage only pays for accidental losses and is thus considered a pure form of accident insurance. The principal sum is paid for accidental death. In case of loss of sight or accidental dismemberment, a percentage of that principal sum will be paid by the policy, often referred to as the capital sum.
Which of the following must the patient pay under Medicare Part B? a)80% of covered charges above the deductible b)All reasonable charges above the deductible according to Medicare standards c)A per benefit deductible d)20% of covered charges above the deductible
D As established by Medicare, the patient must pay 20% of covered charges above the deductible.
Who can make a fully deductible contribution to a traditional IRA? a)Anybody; all IRA contributions are fully deductible regardless of income level b)Someone making contributions to an educational IRA c)A person whose contributions are funded by a return on investment d)An individual not covered by an employer-sponsored plan who has earned income
D Individuals who are not covered by an employer-sponsored plan may deduct the amount of their IRA contributions regardless of their income level.