Retirement Other Insurance Concepts
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
An insurance broker's license may be issued to
A person, firm or corporation.
All of the following statements concerning workers compensation are correct EXCEPT
A worker receives benefits only if the work related injury was not his/her fault.
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following?
Cash to the owner's business partner to accomplish a buyout
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash value growth
What will happen if it is impossible for an injured insured to produce proof of disability in the time specified in a contract that provides disability benefits?
Claims will be paid as contracted provided the proof is furnished as soon as possible.
On a major medical insurance policy, the amount that an insured must pay on a claim before the insurer will pay is known as
Deductible.
. As it pertains to group health insurance, COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.
Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage?
Health Maintenance Organization plan
Which of the following types of LTC is NOT provided in an institutional setting?
Home health care
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
Which of the following is NOT true regarding a nonqualified retirement plan?
It needs IRS approval.
Which of the following is true regarding a single life settlement option?
It provides income the beneficiary cannot outlive.
A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?
Joint and Survivor
What is the other term for the cash payment settlement option?
Lump sum
Which of the following programs expands individual public assistance programs for people with insufficient income and resources?
Medicaid
All of the following are true regarding key person disability income insurance EXCEPT
Premiums are tax deductible as a business expense.
If an individual is covered by a policy that includes an Accidental Death & Dismemberment rider, what term describes the maximum benefits he will receive if he loses sight in both eyes as a result of a fire?
Principal sum
The Ownership provision entitles the policyowner to do all of the following EXCEPT
Set premium rates.
Which of the following may NOT be included in an insurance company's advertisement?
That its policies are covered by a state Guaranty Association
An insurer hires a representative to advertise its company at a local convention. The representative lies about the details of some of the policies, in an attempt to secure more business for the company. Who is responsible for the representative's claims?
The insurer
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.
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only.
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.
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible.
When a health insurance policy is purchased in the state of New York, the insured may return the policy to the insurer and receive a premium refund within the maximum period of
20 days.
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint life
Your client wants to know what the tax implications are for contributions to a Health Savings Account. You should advise her that the contributions are
Tax deductible.
Your client has a Social Insurance Supplement (SIS) rider on his disability policy. After he becomes disabled, he receives payments from the company. Shortly thereafter, he also begins receiving Social Security benefit payments. Which of the following will happen?
The SIS payment will be reduced dollar-for-dollar by the Social Security benefit payment.
Life settlement contracts must be approved by which of the following?
The Superintendent of Insurance
Which of the following is an example of liquidity in a life insurance contract?
The cash value available to the policyowner
Which of the following would NOT fall into the category of costs associated with death?
The expense of a vacation for surviving family members
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
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's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin?
1