Missed Exam questions

All of the following are true regarding closed panel HMO's EXCEPT

The physicians work from their respective offices

All of the following are true of key person insurance EXCEPT

The plan is funded by permanent insurance only

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?

10%

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?

100% participation of members is required in noncontributory plans

What is the elimination period for Social Security disability benefits?

5 months

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

The maximum amount that can be contributed to an MSA is what percentage of the family deductible for those with family coverage?

75%

Insurance companies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?

Adhesion

Which of the following is the most precise synonym for an authorized insurer

Admitted

The Omnibus Budget Reconciliation Act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under

Age 65 who are not retired

What documentation grants express authority to an agent?

Agent's contract with the principal

Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?

Amanda is 67 and is covered by a basic medical expense policy

An individual just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this istuation?

Decreasing term

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

Medicaid provides all of the following benefits EXCEPT

Income assistance for work-related injury

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an

Interest-sensitive Whole Life

What type of license is needed to transact non-major lines of insurance like baggage and accident only insurance?

Limited

An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a

Lloyd's association

All of the following are characteristics of a Major Medical Expense policy EXCEPT

Low maximum limits

Which of the following statements is TRUE concerning whole life insurance?

Lump-sum death benefits are not taxable

B just bought a new car, which he anticipates will be paid for 4 years from now. He also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best for B?

Modified Life

An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to renew the policy an

Pay a lower renewal premium by proving insurability

Which of the following provisions is mandatory for health insurance policies?

Physical examination and autopsy

When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called

Preferred Provider Organization (PPO)

Which of the following will be included in a policy summary?

Premium amounts and surrender values

All of the following are examples of risk retention EXCEPT

Premiums

A couple owns a life insurance policy with a children's term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required

What would a physician utilize if he/she wanted to know if a treatment is covered under an insured's plan and at what rate it will be paid?

Prospective review

Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earning after recovery from a disability?

Residual disability

Agent D submitted an application for life insurance on Client A. No money was sent with the application. When agent D attempted to deliver the policy, he discovered that A had suffered a heart attack since the application was taken. The agent should

Return the policy to the insurer

Which of the following is NOT covered under Part B of a Medicare policy?

Routine dental care

Which of the following is an example of a peril covered in an accident and health insurance policy?

Sickness

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Spendthrift clause

Which of the following statements about a suicide clause in a life insurance policy is TRUE?

Suicide is excluded for a specific period of years and covered thereafter

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation on accumulation

Which of the following, when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?

Term rider

Which of the following is INCORRECT concerning a noncontributory group plan

The employees receive individual policies

Who chooses a primary care physician in an HMO?

The individual member

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage.

An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?

The insured will need a written consent of the insurer

Which of the following is NOT covered under Plan A in Medigap insurance?

The medicare part A deductible

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

The policy will not be affected

The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

The policyowner can specify the way proceeds are split in the policy

Which of the following is NOT the purpose of HIPAA

To provide immediate coverage to new employees who had been previously covered for 18 months

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Twisting

Which of the following Life insurance policies would be considered interest-sensitive?

Universal Life

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

In a survivorship life policy, when does the insurer pay the death ebnefit?

Upon the last death

Which of the following is true regarding a risk retention group?

it is a liability insurance company owned by its members

Medicare Part A services do not include which of the following?

Private Duty Nursing

Another name for substandard risk classification is

rated

All of the following are features and requirements of the Living Needs Rider EXCEPT

Diagnosis must indicate that death is expected within 3 years

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventive care

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount

Equal to the original policy for as long as the cash values will purchase

When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as

Estate conservation

How often must insurers send policyowners status reports on policies that use illustrations?

Every year

Which of the following are the authorities that an agent can hold?

Express and Implied

The authority granted to an agent through the agent's contract is referred to as

Express authority

Which of the following regulatory authorities participated in creating the National Do Not Call Registry?

FTC

Which of the following could reduce the amount of the death benefit?

Failure to repay a policy loan

Both Universal Life and Variable Universal Life have a

Flexible Premium

What is the main purpose of the Seven-pay test?

It determines if the insurance policy is an MEC.

Which of the following statements are true regarding an Ordinary (straight) life policy EXCEPT

It does not have a guaranteed death benefit

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection

Under a group medical policy, prescription drug plans are

Optional benefits

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

What is the major difference between a stock company and a mutual company?

Ownership

Which of the following refers to the amount of retirement benefits a worker receives under Social Security based on the worker's earnings and retirement age?

PIA

Under which of the following organizations are the practicing providers compensated on a fee-for-service basis?

PPO

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit rider

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor benefit

Which of the following would be least likely to be considered a legitimate need that would be paid by insurance proceeds?

Vacation travel expenses

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?

Viatical settlement

Which of the following meets the insured's personal needs, and is provided by nonmedical personnel?

Custodial Care

An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Aleatory ( unequal amounts are exchanged)

Which of the following statements is NOT true regarding health insurance policy provisions?

All additional provisions written by insurers are cataloged by their respective states

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

Authorized

Which describes the features of a comprehensive major medical policy?

Basic medical expense benefits are provided in a single package

In which of the following scenarios will repayment of funds take place per the Medicaid Estate Recovery Act?

Before her death, a 23 year old was living in a long-term nursing facility paid for with Medicaid funds

Which of the following would NOT be considered an exception to the National Do Not Call List?

Calls based from outside of the United States

When filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available, what could the applicant do to properly correct the mistake?

Cross the incorrect answer out, write the correct one beside it, and initial the answer

Which component increases in the increasing term insurance?

Death benefit

Under which of the following conditions would life insurance proceeds be taxable by the federal government?

If there is a transfer for value

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

Which of the following is true of a PPO?

Its goal is to channel patients to providers that discount services.

What is the most common name for a single policy that is designed to insure two or more lives with a standard premium and that pays the death benefit upon the first death?

Joint Life

Which of the following settlement options in life insurance is known as straight life?

Life income

Which dividend option will increase the death benefit?

Paid-up additions

Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT

Premiums always stay the same.

Utilization management consists of an evaluation of the appropriateness, necessity and quality of health care and may include

Prospective and concurrent review

What must states do after the death of a person who received Medicaid benefits, according to the Medicaid Estate Recovery Act?

Seek repayment of funds that were paid

An IRA purchased by a small employer to cover employees is known as a

Simplified Employee Pension plan

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Which of the following government programs allows a blackout period?

Social Security

For which of the following reasons may group coverage NOT be discontinued?

The company's stock value lowers

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

How does a member of an HMO see a specialist?

The primary care physician refers the member

Which of the following is true regarding METs?

They allow several small employers purchase less expensive insurance together.

A graded premium life insurance policy is a modified form of

Whole life

illustrations used in the sale of life insurance policies must contain all of the following EXCEPT

the insured's financial classification

Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses?

the insurer will return a percentage of the premiums paid

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

Withdrawals are not taxable

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

Which of the following statements concerning buy-sell agreements is true?

buy-sell agreements are normally funded with a life insurance policy

Which of the following would be a typical maximum benefit offered by major medical plans?

$1 million

The purpose of managed care health insurance plans is to

Control health insurance claims expenses

Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?

Insuring Clause

What is NOT a benefit of a POS plan?

It allows guaranteed acceptance of all applicants

Which of the following statements pertaining to Medicare Part A is correct?

Medicare Part A is automatically provided when an individual qualifies for Social Security benefits at age 65

Which of the following groups would probably be covered by blanket insurance?

A university's sports team

Which of the following is NOT true regarding term health coverage?

The owner may renew the policy for a specified term

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract

An insurance producer who is late in filing an application for license renewal will be charged a fee of

$50

What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider?

1 year

If a person is disabled at age 27 and meets the Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits?

12 credits

A social security disability must be expected to last how many months in order for the person to qualify for disability benefits?

12 months (1 year)

If an insurer believes that inaccurate or misleading information was provided in the policy's application, it may contest a claim within how many years?

2 years

All other factors being equal, which of the following lists from the largest annual premium to the smallest annual premium?

20-year endowment, 20 pay life, 20-year level term, 20-year decreasing term

If a new individual long-term care policyholder is not satisfied with a new policy, within how many days can the insured return the policy for a full premium refund?

30

A hospital indemnity policy will pay

A benefit for each day the insured is in a hospital.

Underwriting for disability insurance is unique due to the type of risk involved. Which of the following situations illustrates this?

A construction worker pays a higher premium and receives a poorer classification of disability

Which of the following is NOT required to be included in a disclosure document for an annuity?

A document describing the different types of annuities

Which of the following produces evaluations of insurers' financial status often used by state departments of insurance?

AM best

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?

Adjust the claim benefit to reflect the insured's true age

In insurance, an offer is usually made when

An applicant submits an application to the insurer

Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy?

An individual who was previously covered by group health insurance for 6 months is eligible.

Which concept is associated with "exclusion ratio"?

Annuities payments

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Any form of life insurance

Which of the following types of agent authority is also called "perceived authority"?

Apparent

At what point must an outline of coverage be delivered?

At the time of application or upon delivery of the policy

If an applicant for a life insurance is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common Disaster Clause

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of adhesion

A limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke, or renal failure is known as

Critical Illness insurance

Life insurance death proceeds are

Generally not taxed as income

The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases

Under HIPAA portability, which of the following are NOT protected under the required benefits?

Groups of one or more

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider

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

Never

A Jumping Juvenile policy is unique in that the death benefit automatically

Increases at a predetermined age

The type of term insurance that provides increasing death benefits as the insured ages is called

Increasing term

Who makes up the Medical Information Bureau?

Insurance companies

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy

The human life value approach to determining Life insurance needs is based upon which of the following ideas?

Loss of the breadwinner's income

What is the other term for the cash payment settlement option?

Lump sum

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?

Material misrepresentation

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an

Modified endowment contract

A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard?

Morale

The causes of loss insured against in an insurance policy are known as

Perils

According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that?

Platinum

Should an authorized insurance company have their certificate of authority suspended, during the period of the suspension, the insurer must do all of the following EXCEPT

Reapply for the Certificate of Authority

All of the following are true regarding rebates EXCEPT

Rebates are allowed if it's in the best interest of the client

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Refund the premiums paid

Which of the following is a provision found in life insurance policies?

Reinstatement

In which type of HMO model are physicians actually paid employees of the HMO, practicing in the HMO's own facility?

Staff

Which of the following policies would be classified as a traditional level premium contract?

Straight Life

Which of the following are responsible for making premium payments in an HMO plan?

Subscribers

Which of the following types of risk will result in the highest premium?

Substandard risk

What determines the penalty for surrendering a market value adjusted annuity prematurely?

The current interest rate at the time of surrender

Which of the following are true about key-person insurance EXCEPT

The death benefit is taxable to the business

With Adjustable Life, the owner can change all of the following EXCEPT

The insured

An applicant is considered to be high-risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true?

The insurer will issue a conditional coverage

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

What is the purpose of the buyer's guide?

To allow the consumer to compare the costs of different policies

What is the purpose of life insurance solicitation regulations?

To help consumers compare life insurance products in regard to their relative cost

What is the purpose of establishing the target [premium for a universal life policy?

To keep the policy in force

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will

be level thereafter

A man bought an individual health insurance policy for himself. Which of the following roles does he now legally have?

both subscriber and insured

Who is the beneficiary in a credit health policy?

lending institution

The dividend option in which policyowner uses dividends to purchase a term policy for one year is referred to as the

one-year term option

An HSA holder who is 65 years old decides to use the money in the account for non-health expense. Which of the following is true?

there will be a tax

If an insured changes his payment plan from monthly to annually, what happens to the total premium?

Decreases

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?

Family term

An insurance agent who represents multiple companies on a nonexclusive basis and earns commissions on personal sales is working in what king of marketing system?

Individual Agency System

Which of the following statements regarding conditional receipts is true?

They are temporary insuring agreements

All of the following statements about Medicare supplement insurance policies are correct EXCEPT

They cover the cost of extended nursing home care

Every Medicare supplement policy must have a Notice to Buyer on the front page that states which of the following?

This policy may not cover all of your medical expenses

All of the following benefits are available under Social Security EXCEPT

Welfare benefits

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

With the policy

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

A life insurance policy qualifies a Modified Endowment Contract (MEC) if the amount of premium exceeds the amount that would have provided paid-up insurance in how many years?

7 years

A subscriber has been treated for a medical condition by his primary care physician for 3 months with experimental remedies without a significant health improvement before being referred to a specialist. Which of the following types of plans does the subscriber have?

A gatekeeper HMO plan to control the costs

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

In which Medicare supplemental policies are the core benefits found?

All plans

All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT

At distribution, all amount received by the employee are tax free

Which of the following is NOT an enrollment period for Medicare Part A applicants?

Automatic enrollment

Which of the following statements is TRUE about a policy assignment?

It transfers rights of ownership form the owner to another person

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?

It will decrease the benefits paid to the beneficiary

If a life insurance policy increases significantly in face amount (death benefit) whent he insured reaches a specified age, what type of policy is this?

Jumping Juvenile policy

Concerning Juvenile Life insurance, which of the following statements is INCORRECT?

Juvenile Life is classified as any life insurance purchased by a minor

Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?

Law of large numbers

What is another term for a health insurance policy subscriber?

Participant

All of the following are true regarding insurance policy loans EXCEPT

Policy loans can be made of policies that do not accumulate cash value

What is the income period after the children are no longer dependent upon the surviving spouse for support but before the surviving spouse qualifies for Social Security survivor benefits?

Preretirement period

All of the following are marketing arrangements used by insurers EXCEPT

Reinsurance system

The failure of an authorized insurer to file its annual financial statement with the Commissioner when due may result in any of the following actions by the Commissioner EXCEPT

Requesting an audit

The surviving spouse receives Social Security benefits during which period?

Retirement

Which type of retirement account does not require the owner to start taking distributions at age 72?

Roth IRA

An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000

When the insurer stipulates the time period for payment of claims, how soon must the insurer pay a death benefit claim after receiving the proof of death?

2 months

According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?

Guaranteed surrender value

Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?

An endowment policy

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

All of the following are lines of insurance that may be transacted under a life and accident/health producer license EXCEPT

Consequential loss insurance

Which of the following includes information regarding a person's credit, character, reputation, and habits?

Consumer Report

Which of the following is NOT a characteristic of a service of an HMO plan?

Contracting with insurance companies

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?

Corridor

Which of the following is NOT true of basic medical expense plans?

Coverage for catastrophic medical expenses

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?

Principal Sum

How are contribution to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distibution

The license of Forgetful Frank has lapsed. How long, from the due date of the renewal fee, may Frank be reinstated without having to re-take a course or exam?

12 months

If a producer changes his or her residential address, the Insurance Department must be notified of the charge within how many days?

30

Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?

30 months

When a replacement is involved how long must existing insurers maintain records of replacement notifications?

5 years

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal

How can a new physician be added to the PPO's approved list?

Agree to follow the PPO standards and charge the appropriate fees

Partners in business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. What life insurance arrangement would be most suited for transitioning business?

Buy-Sell agreement

All of the following information needs to be included on an application for life insurance EXCEPT

Health insurance policies in force

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax-deductible as a business expense

What is the term for the entity that an agent represents regarding contractual agreements with third parties?

Principal

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

The contingent beneficiary

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and Survivor

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions