Life & Health Practice Exam

Continuing Education Courses must be taken every __ year/s. a. 1 year b. 2 years c. 3 years d. 5 years

B) 2 years

MIB is a nonprofit association that maintains medical information on applicants for life or health insurance. What does MIB stand for? a. Men in Black b. Medical Information Branch c. Medical Information Bureau d. Medicinal International Bureau

c. Medical Information Bureau

If an insured is unable to make a premium payment on the due date, which provision will prevent the policy from being cancelled immediately? a. Elimination period b. Probationary period c. Waiting period d. Grace period

d. Grace period

Which of the following is not one of the 4 elements of valid legal contract? a. Agreement b. Consideration c. Incompetent Parties d. Legal Purpose

c. Incompetent Parties

Form of coverage written on the lives of minors. a. Minor's insurance b. Dependent Rider c. Juvenile Life Insurance d. Age 26

c. Juvenile Life Insurance

If taken as a lump sum, life insurance proceeds to beneficiaries are passed? a. Without interest b. Free of federal income taxation c. Tax-deductible d. Part tax-free and part taxable

b. Free of federal income taxation

All of the following are considered a qualifying life event regarding termination of group coverage and continuation, except: a. Eligibility for Medicare b. Divorce of covered employee from a spouse c. Termination due to gross misconduct d. Reduction of hours

c. Termination due to gross misconduct

All of the following employees may use a 403(b) plan for their retirement EXCEPT? a. The vice president of a charitable organization. b. A part-time classroom aide. c. The CEO of a private corporation. d. A school bus driver.

c. The CEO of a private corporation. (Not all public employees are eligible for 403(b) plans, or tax-sheltered annuities, only employees of public education (local, state, or federal), as well as employees of charitable organizations.)

For a retirement plan to be qualified, it must be designated for the benefit of? a. IRS b. Employees c. Key Employee d. Employer

b. Employees (Qualified plans are designed for the exclusive benefit of the employees and their beneficiaries.)

Mortality rate is which of the following: a. The 1,000 deaths caused by the applicant. b. Applicant's score in Mortal Kombat. c. The number of deaths per 1,000 people. d. Applicant's average compared to 10,000 people.

c. The number of deaths per 1,000 people.

The settlement option under which payments totaling the death benefit are guaranteed for a specified number of years is referred to as: a. Fixed amount b. Life income only c. Interest only d. Fixed period

d. Fixed period

Evidence of group life insurance coverage provided to an employee is the: a. Master policy b. Certificate of insurance c. Premium receipt d. Summary of benefits

b. Certificate of insurance

The insuring clause found in a life insurance contract states the: a. Effective date of the coverage b. Insurers' promise to pay death benefits as long as all conditions are met c. Nonforfeiture options of a cash value policy d. Amount and frequency of the premium

b. Insurers' promise to pay death benefits as long as all conditions are met

All of the following are TRUE of group life insurance except: A) The insureds each own their own contract B) Evidence of insurability is usually not required. C) Premium rates are based upon the average age, gender and purpose of the group. D) when the insured terminates membership in the group the coverage can be converted to whole life.

A - The insureds each own their own contracts Group contracts are owned by the group, not the insureds

Minimum Age requirement to get an insurance license: A) 18 B) 19 C) 21 D) 24

A) 18

How many hours of CE must be in Ethics? a. 3 hours b. 6 hours c. 12 hours d. 24 hours

A) 3 hours

Which of the following is true regarding a joint life annuity? A) the payments go to the surviving annuitant after the first death. B) the payments stop at the first death. C) the payments stop at the last death. D) the payments go to a beneficiary upon the last death.

B - The payments stop at the first death. joint life is a settlement option where two or more annuitants receive payments until the first death among annuitants; then the payments stop.

If a retirement plan or annuity is qualified, this means: A) dividends will be paid until payments are distributed. B) it is not permitted by the IRS C) it satisfies IRS requirements for favorable ta treatment. D) It has unlimited uses

C - it satisfies IRS requirements for favorable ta treatment. a qualified annuity permits the employer or individual the opportunity to use contributions to the plan as a tax deduction. In addition, while in the plan, the income earned by the contribution accumulates income tax-free. the money is not taxed until withdrawn from the plan, and then it is taxed at the current taxing rate.

Which of the following is not covered by Medicare Part A? a. Skilled Nursing b. Doctors' services c. Hospice care d. Home health care

b. Doctors' services

Variable whole life includes all of the following features, except: a. A guaranteed minimum death benefit b. A fixed level premium c. Annual renewable term insurance d. Cash value that varies based on the market

c. Annual renewable term insurance

Which of the following is the responsibility of an agent? a. Provide a copy of a credit report to the applicant if requested b. Request necessary medical exams c. Classify the risk and calculate premiums d. Explain the policy, provisions, riders and exclusions upon policy delivery

d. Explain the policy, provisions, riders and exclusions upon policy delivery

Which document is used to assess risk associated with an applicant's lifestyle and character? a. Character Assessment. b. Non-medical Risk Assessment. c. Applicant Lifestyle Assessment. d. Investigative Consumer Report.

d. Investigative Consumer Report. (An Investigative Consumer Report is considered to be a part of an insurance application. This report is used in the underwriting process in order to assess non-medical risk factors related to moral standing and avocations. Friends and colleagues are interviewed in order to evaluate the applicant's character, reputation, and habits. The applicant must be informed in writing if the insurer decides to conduct the investigation.)

An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss? a. Incontestability b. Physical Exam and Autopsy c. Legal Actions d. Time of Payment of Claims

Time of Payment of Claims (The Time of Payment of Claims provision specifies that claims are to be paid immediately upon written proof of loss.)

Which of the following will meet the use of life insurance for a business' loss of an expert? a. Key person life insurance b. Buy-Sell agreement c. Executive bonus plan d. Annuity

a. Key person life insurance

An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping on a trampoline and breaks an ankle. What coverage will apply? a. No coverage will apply, since the injury could have been foreseen. b. No coverage will apply, since disability income policies cover sickness only. c. Coverage will apply since the break was accidental. d. Coverage will apply, but will be reduced by 50%.

a. No coverage will apply, since the injury could have been foreseen.

A disability that is presumed to result from the same cause as an immediate prior disability within 6 months of recovery is a: a. Recurrent disability b. Delayed disability c. Residual disability d. Presumptive disability

a. Recurrent disability

Which type of retirement account allows contributions to continue beyond age 70 1/2 and does not force distributions to start at age 70 1/2? a. Roth IRA b. Flexible IRA c. Standard IRA d. Traditional IRA

a. Roth IRA (A Roth IRA allows contributions to continue beyond age 70½ and does not force distributions to start at age 70½.)

A lump sum of money is placed into an account from which the annuitant will draw periodic benefits the following month. This describes a: a. Single Premium Immediate Annuity b. Single Premium Deferred Annuity c. Flexible Premium Immediate Annuity d. Flexible Premium Deferred Annuity

a. Single Premium Immediate Annuity

Which of the following is NOT a feature of a guaranteed renewable provision? a. The insurer can increase the policy premium on an individual basis. b. The insured's benefits cannot be reduced. c. Coverage is not renewable beyond the insured's age 65. d. The insured has a unilateral right to renew the policy for the life of the contract.

a. The insurer can increase the policy premium on an individual basis. (Guaranteed renewable provision has all the same features that the noncancellable provision does, with the exception that the insurer can increase the policy premium on the policy anniversary date. However, the premiums can only be increased on a class basis, not on an individual policy.)

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary? a. Capital gains tax on distributions plus 10% penalty. b. Income tax on distributions and no penalty. c. Income tax on distributions plus 10% penalty. d. Capital gains tax on distributions and no penalty.

b. Income tax on distributions and no penalty. (If the beneficiary chooses to leave the money in the tax-deferred account until the calendar year in which the owner would have attained age 70½, the distributions would be subject to income taxation at the rate at the time of withdrawal.)

Consumer report contains which of the following? a. Information on a person's medical history b. Information on a person's credit, character, reputation or habits c. Information on a person's love life d. Information on a person's grocery list

b. Information on a person's credit, character, reputation or habits

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. Installments and fixed amount b. Installments for a fixed period c. Installment refund d. Cash refund

b. Installments for a fixed period

The waiver of premium rider will waive the premium after a specified waiting period if the: a. Insured becomes unemployed b. Insured becomes disabled c. Cash value exceeds the face amount d. Policyowner retires

b. Insured becomes disabled

The insured cannot borrow against the loan value of the policy without the permission and consent of which of the following, if named? a. Revocable beneficiary b. Irrevocable beneficiary c. Primary beneficiary d. Tertiary beneficiary

b. Irrevocable beneficiary

PPO providers are paid based on which of the following? a. Flat fee b. Capitation fee c. Discounted fee-for-service, negotiated in advance by the insurer d. Discounted fee-for-service, negotiated in advance by the insured

c. Discounted fee-for-service, negotiated in advance by the insurer

Which of the following is true regarding taxation of dividends in participating policies? a. Dividends are taxable in some life insurance policies and nontaxable in others. b. Dividends are considered income for tax purposes. c. Dividends are not taxable. d. Dividends are taxable only after a certain amount is accumulated annually.

c. Dividends are not taxable. (Dividends are not considered to be income for tax purposes, since they are the return of unused premiums. The interest earned on the dividends, however, is subject to taxation as ordinary income.)

If the owner prematurely surrenders his deferred annuity before the annuitization period begins, which of the following is most likely to occur? a. A surrender charge will not be imposed because the account has been open for at least a year. b. The owner will forfeit any premiums he has paid into the account, but will receive any interest earned on the account. c. The owner will receive the premium payments that have been paid into the annuity, plus any interest, minus a surrender charge d. Surrender charge will be imposed that is equal to 3 of the owner's monthly annuity payment

c. The owner will receive the premium payments that have been paid into the annuity, plus any interest, minus a surrender charge

A Producer cannot share commissions with which of the following? a. Insurance Company b. Fellow insurance agent c. Agency d. A non-licensed person

d. A non-licensed person

Choose the right way to make changes in a completed application: a. Agent changes it without notice to applicant. b. Agent lets applicant change the consumer report. c. Applicant lets the agent forge his signature. d. Applicant initials any change in the application.

d. Applicant initials any change in the application.

60. The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have? a. Restrictive b. Accidental Death c. Comprehensive d. Accident only

d. Accident only (Accident-only policies cover medical benefits related to an accident. Medical conditions related to sickness are not covered.)

If the owner of a business becomes disabled, a BUsineess Overhead Expense plan will cover all of the following, except: a. Rent b. Utility Bills c. Employees' salaries d. Owner's salary

d. Owner's salary

The right to examine or free look provision allows the insured, upon delivery of the policy, a specified number of days to look over the policy and if dissatisfied, return it for a full refund. It is usually ___ days; however, it may vary from state to state. A) 30 B) 10 C) 15 D) 20

B) 10 days

Which of the following statements is TRUE regarding an Agent's Report during a policy application process? A) it becomes part of the entire contract after the policy is issued. B) it is a required element of the contract. C) it provides the agent's personal observations concerning the proposed insured. D) It is only used when the initial premium is not paid with the application.

C - it provides the agent's personal observations concerning the proposed insured. the agent's report provides the agent's personal observations concerning the proposed insured. The agent's report does not become a part of the entire contract, although it is a part of the application process.

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is considered a(n)? a. A Modified Endowment Contract b. An Accelerated policy c. An endowment d. A Multiplicative Policy

a. A Modified Endowment Contract

TRUE OR FALSE: An insured is involved in a car accident, rendering him in a wheelchair and partially blind. The blindness improves a month later. Will he receive the full benefits? a. True b. False c. Tralse d. Frue

b. False

What is the main purpose of the Seven-pay Test? a. It guarantees interest minimum. b. It determines if the insurance policy is an MEC. c. It requires level premium payments for 7 years. d. It ensures that the policy benefits are paid out in 7 years.

b. It determines if the insurance policy is an MEC.

_______ is not an "activity of daily living" associated with triggering events for Long-Term Care policies. a. Mobility b. Talking c. Bathing d. Eating

b. Talking

Which of the following is not considered a form of health insurance? a. Medical expense b. Workers' compensation c. Long-term care d. Disability income

b. Workers' compensation

Federal law required hospital, medical, and surgical plans providing dependent coverage must extend the coverage for dependent children up to age: a. 18 b. 21 c. 26 d. 29

c. 26

If the primary beneficiary predeaces the insured, the death benefit is next payable to the ________ beneficiary. a. Policyowner b. Successor c. Contingent d. Conditional

c. Contingent

An Ordinary Straight Whole Life policy provides for: a. A single premium, level face amount, and cash accumulation to age 65 b. An increasing premium based on annual renewable term and a level face amount c. A level premium, increasing face amount, and temporary insurance d. A level premium, level face amount, and cash accumulation until the policy matures

d. A level premium, level face amount, and cash accumulation until the policy matures

If an inusred commits suicide while the suicide clause is in effect, the insurance company will: a. Deny the claim b. Pay the claim c. Pay face amount d. Refund the amount of premiums paid

d. Refund the amount of premiums paid

How many Continuing Education hours are needed? a. 3 hours b. 8 hours c. 16 hours d. 24 hours

D) 24 Hours

All of the following persons are restricted from entering into a legally binding contract except: A) An insane person B) A retired person C) An intoxicated person D)A minor age person

D) A minor child

All of the following persons are restricted from entering into a legally binding contract except: A) An insane person B) A retired person C) An intoxicated person D) A minor age person

D) a minor age person

In health underwriting it would be inappropriate to decline a risk using any of the following EXCEPT? a. Mental illness. b. Genetic characteristics. c. Marital status. d. Blindness.

a. Mental illness.

Health plan issuers are prevented from collecting genetic information for underwriting purposes or limited in their requests for generic tests by? a. Individual insurers' underwriting standards. b. The Genetic Information and Nondiscrimination Act. c. Underwriters' risk classification standards. d. The Genetic Anti-Discrimination Act.

b. The Genetic Information and Nondiscrimination Act. (The Genetic Information and Nondiscrimination Act of 2008 (GINA) limits what requests a health plan issuer can make regarding genetic testing, and prohibits the collection of genetic information for underwriting purposes.)

All of the following are correct regarding annual Renewable Term, except: a. The premium increases each year based on attained age b. It is pure insurance protection c. It matures at age 100 d. Most group life insurance is annual renewable term

c. It matures at age 100

Which of the following factors does an insurer use the most to determine the extent of disability benefits that it will promise in a contract? a. The insured's moral history b. The insured's hobbies c.The insured's income. d. The insured's marital status

c.The insured's income.

Which of the following is LEGAL? a. Fraud b. Bundling c. Rebating d. Advertising

d. Advertising

At what point must an outline of coverage be delivered? a. At any point up to 30 days after policy delivery. b. At the time of application only. c. Upon delivery of the policy only. d. At the time of application or upon delivery of the policy.

d. At the time of application or upon delivery of the policy.

The owner's rights include all of teh following, except: a. Select a settlement option b. Take a policy loan c. Designate the beneficiary d. Choose the mortality rate

d. Choose the mortality rate

A receipt issued at the time of application upon the payment of premium that provides coverage effective as of the date of the application or medical exam, as long as the policy is issued as applied, is referred to as a: a. Statement of good health b. Trial of application c. Binding receipt d. Conditional receipt

d. Conditional receipt

Premium Mode refers to which of the following? a. Dollar amount b. Premium of riders c. Frequency of application d. Payment frequency

d. Payment frequency

If a company has a Simplified Employee Pension plan, what type of plan is it? a. A qualified plan for a small business b. The same as a 401(k) plan c. The same as an IRA, with the same contribution limits d. An undefined contribution plan for large businesses

a. A qualified plan for a small business (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.)

Which of the following best describes the difference between Pure Life and Life with Guaranteed Minimum settlement options? a. Life with Guaranteed Minimum will pay the remaining principal to the beneficiary b. In Life with Guaranteed Minimum, payments can be made in installments c. Pure Life guarantees to pay out all the proceeds. d. Pure Life is not a life contingency option.

a. Life with Guaranteed Minimum will pay the remaining principal to the beneficiary

Social Security disability income benefits are payable as long as all of the following conditions are met, except: a. The disability is expected to last at least 5 years b. The recepient is at least currently insured c. The injured worker is unable to engage in any kind of gainful employment d. The worker is totally and permanenyly disabled for a 5-month waiting period

a. The disability is expected to last at least 5 years

TRUE OR FALSE: All producers must be appointed by at least one insurer. a. True b. False c. Tralse d. Frue

a. True

Which of the following is not one of the principal objectives of an HMO? a. Using emergency room for routine care b. Stress preventative medicine c. Saving on administrative costs d. Reducing the number of days per hospital visit

a. Using emergency room for routine care

Juvenile life insurance is also called the Jumping Juvenile because it automatically increases in the face amount at a given age, usually 21, but the premium remains _____. a. level b. increasing c. decreasing d. jumping

a. level

Which of teh following policies will provide for a flexible premium, adjustable death benefit, and a guaranteed minimum interest to be credited to the general account if the current rate falls to the minimum rate? a. Adjustable Life b. Variable Life c. Universal Life d. Variable Universal Life

c. Universal Life

The method of determining benefits considers the average fee charged by all doctors in a given geographical area. a. Fee-for-service b. Community Rating c. Usual, Customary and Reasonable d. Usual, Customers and Ransom

c. Usual, Customary and Reasonable

The time period an insured must wait after the onset of a disability before any benefits from a disability income policy become payable is the: a. Enrollment period b. Policy Period c. Benefit Period d. Elimination period

d. Elimination period

Which of the following statements regarding insurable interest is not correct? a. An individual has an unlimited insurable interest on himself. b. Insurable interest is the possibility of eonomic loss due to sickness or death. c. Insurable interest must exist between the policyowner and insured at the time of application. d. Insurable interest only applies to individuals related by blood.

d. Insurable interest only applies to individuals related by blood.

COBRA applies to employers with ___ or more employees. A) 20 B) 50 C) 10 D) 100

D) 100 Employees

In an annuity, the accumulated money is converted into a stream of income during which time period? a. Payment period b. Amortization period c. Conversion period d. Annuitization period

d. Annuitization period

Which of the following is a cost containment measure for a managed care plan? a. Coinsurance b. Deductible c. Probationary period d. Second surgical opinion

d. Second surgical opinion

The coverage is not effective until... a. The policy is delivered and the initial premium is paid. b. The policy is delivered. c. The initial premium is paid. d. The initial premium is delivered.

a. The policy is delivered and the initial premium is paid.

The proof of loss provision limits the amount of time the insured has to submit proof of loss to the insurer to within: a. 30 days after receiving claim form b. 90 days of the loss c. 6 months of recovery d. 15 days of the loss

b. 90 days of the loss

The permanent transfer of ownership in a policy is called: a. Collateral ownership b. Absolute assignment c. Reinstatement d. Facility of payment

b. Absolute assignment

All of the following are required to sign an application for insurance, except: a. Applicant b. Beneficiary c. Producer or agent d. Policyowner

b. Beneficiary

Statements made by the applicant on a life or health insurance application are true to the best of one's knowledge are considered to be: a. Warrantees b. Concealments c. Representations d. Misstatements

c. Representations

A transaction in which a life policy is purchased when an existing policy is surrendered is called: a. Conversion b. Continuation c. Replacement d. Solicitation

c. Replacement

A guaranteed renewable health insurance policy allows the... a. Policyholder to renew the policy to a stated age and guarantees the premium for the same period. b. Policy to be renewed at time of expiration, but the policy can be canceled for cause during the policy term. c. Insurer to renew the policy to a specified age. d. Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class

d. Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class (Dividend interest is taxable; policy loans are not tax deductible, and premiums are not tax deductible.)

Which of the following provides automatic increases in monthly benefits after the onset of a disability and is based on increases of the Consumer Price Index disability? a. Future increase option b. Impairment provision c. Guaranteed insurability rider d. Cost-of-living adjustment rider

d.Cost-of-living adjustment rider

Which of the following is NOT a licensed agent: a. Producer b. Gatekeeper c. Benefits Advisor d. Underwriter

b. Gatekeeper

Which of the following statements is true regarding coinsurance? a. The smaller the percentage that is paid by the insured, the lower the required premium will be. b. The smaller the percentage that is paid by the insured, the more consistent the required premium will be. c. The larger the percentage that is paid by the insured, the lower the required premium will be. d. The larger the percentage that is paid by the insured, the higher the required premium will be.

c. The larger the percentage that is paid by the insured, the lower the required premium will be. (After the insured satisfies the policy deductible, the insurance company will usually pay the majority of the expenses--typically 80%--with the insured paying the remaining 20%. Other coinsurance arrangements exist, such as 90%/10%; 75%/25%; or 50%/50%. When the insured retains a larger share of the risk, they will pay a lower premium.)

Which of the following statements is TRUE concerning whole life insurance? a. Policy loans are tax deductible. b. Premiums are tax deductible. c. Dividend interest is not taxable. d. Lump sum death benefits are not taxable.

d. Lump sum death benefits are not taxable. (Dividend interest is taxable; policy loans are not tax deductible, and premiums are not tax deductible.)

All of the following are correct regarding taxation of individual life insurance, except: a. Individual life insurance premiums are not tax deductible b. Lump sum death benefits are not taxable income c. Interest paid from a settlement option is taxed as ordinary income d. Policy loans are considered an investment and are always taxable

d. Policy loans are considered an investment and are always taxable

A substandard risk may be issued based on any of the following, except: a. A prefereed rate b. Graded c. Flat rate d. Rated-up

a. A prefereed rate

Which provision will assure that the life insurance policy premiums are deducted from the cash value if the premiums are not paid directly by the owner at the end of the grace period? a. Automatic Premium Loan b. Collateral Assignment c. Suicide Clause d. Consideration Clause

a. Automatic Premium Loan

According to teh Entire Contract clause, which of the following constitutes the entire contract of insurance in a health policy? a. The policy including provisions, copy of the application, amendments and riders b. The policy and original application only c. The policy, medical records and agent's report d. The policy, application, and credit report

a. The policy including provisions, copy of the application, amendments and riders

When would life insurance policy proceeds be included in the insured's taxable estate? a. When there are any incidents of ownership at the time of death. b. If the insured's spouse is the policyowner. c. If the insured transfers ownership of the policy or makes a gift of the policy 5 years prior to his or her death. d. When the beneficiary is named in the policy.

a. When there are any incidents of ownership at the time of death. (If the insured were the owner of the policy at the time of death or possessed any incidents of ownership at the time of death, the value of the policy will be included in the insured's taxable estate. If the insured, as policyowner, assigns or transfers ownership of the policy or makes a gift of the policy within 3 years prior to his or her death, the entire face amount of the policy will be included in his or her taxable estate.)

Which of the following corectly describes Medicaid? a. Available to seniors age 65 and older b. Available to qualified low-income individuals c. Provides supplement Medicare d. Provides long-term care to everyone

b. Available to qualified low-income individuals

TRUE OR FALSE: Applicants approved coverage due to information in an MIB report must be given explanation and an opportunity to challenge information about their medical history that may be inaccurate. a. True b. False c. Tralse d. Frue

b. False

The stipulation in a health policy that allows the insured to examine a policy for a specific number of days after delivery and return for a premium refund if desired is called the: a. Insuring clause b. Free look provision c. Assignment clause d. Consideration clause

b. Free look provision

Which of the following is offered on a long-term care policy that locks in guaranteed benefit increases each year the policy is in force? a. Non-forfeiture benefit b. Inflation protection benefit c. Respite care benefit d. Waiver of premium

b. Inflation protection benefit

Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss? a. Consideration b. Notice of Claim c. Loss Notification d. Claims Initiation

b. Notice of Claim (The Notice of Claim Provision spells out the insured's duty to provide the insurer with reasonable notice in the event of a loss.)

Which of the following can surrender a deferred annuity contract? a. Deferred annuity cannot be surrendered b. Only the annuity owner c. The beneficiary after the owner's death d. Only the insurance company for nonpayment of premiums

b. Only the annuity owner (If the need arises, a deferred annuity contract may be surrendered only by the annuity owner. At surrender the owner receives the value of the annuity minus a surrender charge.)

Minimum requirements for the Core MEdicare Supplement Plan A include all of the following, except: a. The cost of teh first 3 pints of blood b. Outpatient prescription drugs c. Medicare Part A hospital copayment for days 61-90 per benefit period d. 20% coinsurance for covered medical expenses under Medicare Part B

b. Outpatient prescription drugs

If in coinsurance the insured and insurer share in the percentage of the covered expenses, in copayment the insured ______. a. Pays half b. Pays a flat fee c. Pays all d. Pays utility fee

b. Pays a flat fee

If a change or correction must be made on the aplication for insurance, whic of the following applies? a. The change must be made in red ink b. The producer can make the change and the applicant must initial the change c. A change cannot be made once the application is signed d. The producer can make and initial the change at any time prior to submitting the application

b. The producer can make the change and the applicant must initial the change

All of the following statements are true regarding tax-qualified annuities EXCEPT? a. Tax accumulation is deferred. b. They must be approved by the IRS. c. Withdrawals are taxed. d. Employer contributions are not tax deductible.

b. They must be approved by the IRS. (Tax qualified annuities are required to be approved by the IRS. Tax qualified annuities provide tax deductible employer contributions and all tax accumulation is deferred.)

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

c. A list of available doctors (The Insuring Clause lists the insured, the insurance company, what kind of losses are covered, and for how much the losses would be compensated.)

Select what is NOT an example of third-party ownership in insurance: a. Parents buying insurance for their kids. b. Businesses that own policies on key employees. c. A single man buying insurance for himself. d. Business partners that own policies on each other.

c. A single man buying insurance for himself.

The principal sum in an Accidental Death and Dismemberment policy is the: a. Benefit payable to the insured for a single dismemberment b. Benefit designated to cover hospital and doctor expenses c. Death benefit paid to the insured's beneficiary d. Loss of income benefit

c. Death benefit paid to the insured's beneficiary

The initial dollar amount an insured is required to pay annually in a medical expense plan before benefits are payable by the insurer is called the: a. Premium b. Stop-oss c. Deductible d. Coinsurance

c. Deductible

Which of the following is NOT TRUE regarding Privacy Notices? a. Explains what information the company gathers about the customer. b. Explains where the information is shared. c. Explains the dictionary definition of Privacy and how it notes. d. Explains how the company safeguards the information.

c. Explains the dictionary definition of Privacy and how it notes.