LAS Missed Questions

An insured decides to surrender his Whole Life Insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest. What part of the surrender value would be income taxable?

The difference between the premiums paid and the cash value.

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace Period

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association

Has been active for five years minimum.

To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

Insurable Interest

When is the company responsible for actions of its agents?

Whenever the agent is acting within the conditions of the contract.

Which of the following statements is TRUE regarding an Agent's Report during the policy application process?

It provides the agent's personal observations concerning the proposed insured.

What happens to the copy of the application for health insurance once the policy is issued?

It becomes part of the entire contract.

The entire contract includes all of the following EXCEPT

A buyer's guide.

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

Cash surrender values.

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?

Children's term rider

In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer?

If there are no authorized insurers for a specific type of coverage in this state.

All of the following are advantages of a qualified retirement plan EXCEPT

The income at retirement is tax free.

The guaranteed purchase option is also referred to as the

Future increase option.

What is a specific requirement regarding the number of employees in a SIMPLE plan?

No more than 100 employees.

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums.

According to the Time Limit on Certain Defenses provision, statements or misstatements made in the application at the time of issue cannot be used to deny a claim after the policy has been in force for a minimum of how many years?

2 years

A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy?

Family

Life Insurance creates an immediate estate. Which of the following best explains this statement?

The face value of the policy is payable to the beneficiary upon the death of the insured.

Medicare supplement policies are designed primarily for reimbursement of expenses of persons eligible for Medicare. Which of the following expenses are Medicare supplement policies not designed to cover?

Home care

What happens to the face amount of a whole life policy if the insured reaches the age of 100?

The face amount is paid to the insured.

The Probationary period is

A specified period of time that a person joining a group has to wait before becoming eligible for coverage.

Variable Insurance and variable annuities are regulated by

SEC, FINRA, and Departments of Insurance

A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend?

Payor benefit

All of the following must sign an application for health insurance EXCEPT the

Insurer

Which of the following policies would NOT offer a policy loan option?

Term life

Which of the following best defines the Probationary Period in group health policies?

A specified period of time that a person joining a group has to wait before becoming eligible for coverage.

Which of the following is NOT true regarding a noncancellable policy?

Insurer can increase the premium above what it is stated in the policy if claims experience is greater than expected.

The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the.

Insuring clause.

All of the following are true of annually renewable term insurance EXCEPT

Proof of insurability must be provided at each renewal.

Under the Affordable Care Act, when would pregnancy be considered a pre-existing condition?

Never

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?

Joint and Survivor