Practice exam

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 years

A straight life policy has what type of premium?

A level annual premium for the life of the insured

When must an insurance company present an outline of coverage to an applicant for a Medicare supplement policy

A the time of application

Annuities can be used to fund which of the following?

A) Group Life Insurance B) Estate creation C) Retirement plans D) Variable life insurance Answer: C) Retirement Plans

What license or licenses are required to sell variable annuities

Both a life insurance license and a securites license

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. What policy is that?

Joint life policy

in a group policy, who is issued a certificate of insurance?

The individual insured

Which statement best defines a Multiple Employer Welfare Arrangement (MEWA) ?

a joining together by employees to provide health benefits for employee

under the 401k bonus or thrift plan, the employer will contribute

an undetermined percentage for each dollar contributed by the employee

Key person disability

benefits are not considered taxable income to the business

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application

return the application to the applicant for completion

If an insurance policy has an irrevocable beneficiary designation.....

the beneficiary can only be charged with written permission of the beneficiary

The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is true?

the cash value will be paid to the annuitant's estate

Key Person Disability Insurance

- Business owns the policy, pays the premiums and is the beneficiary

According to OBRA, what is the minimum number of employees required to constitute a large group?

100

insurance producers that do not have company appointments are considered a/an

Representative of the consumer

Which of the following would not be used in preventative care

chemotherapy

partial disability covers

full time workers who are unable to perform some but not all of their regular job duties

Medicare part A

individuals who have ALS automatically qualify for Medicare Part A, regardless of age

Which 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