Life insurance
What is the maximum fine for violation of the Insurance Code by a producer in this state?
$2,500
A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
DThe amount of the distribution is reduced by the amount of a 20% withholding tax.
How is the amount of Social Security disability benefits calculated?
It is based upon the worker's Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 35 years
Which of the following is NOT true regarding a nonqualified retirement plan?
It needs IRS approval
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
CDecreases
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the interest accumulated in the annuity NOT be taxable?
CSpouse
Pertaining to insurance, what is the definition of a fiduciary responsibility?
Promptly forwarding premiums to the insurance company
An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued.
The classification Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed
no more than 50 persons
A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called
1035 exchange
When an individual is covered under two health insurance policies that have duplicate benefits which could make a claim for benefits because of an injury or illness profitable, it is called
BOverinsurance
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming future dividends in a life insurance proposal
Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death?
Life insurance proceeds
Powered by ExamFX - Online Training & Assessment Learn As You Go!End Exam Question 7 of 50 Which of the following is excluded in a dental insurance plan?
Lost dentures
A person steps off a street car and trips and breaks his ankle. This type of injury can be described as
Sudden and unforeseen
What is necessary in order to be eligible to receive benefits from a long-term care policy?
The insured must be unable to perform some activities of daily living.
Which of the following is correct about Medicare?
The program is divided into four parts (A-D
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
a fixed amount
Which of the following are responsible for making premium payments in an HMO plan?
subscribers