webce test questions
rob let his individual health policy lapse two months ago. he pays the premium to reinstate the policy. how many days must he wait before any illnesses will be covered?
10 days
when does the free-look period for a variable life insurance policy end?
10 days after the policy is delivered, or 45 days after the insurance application is completed, whichever is later
a group health policy in PA can exclude coverage for preexisting conditions for no longer than
12 months after the enrollment date
to be considered totally disabled under a disability income policy, the insured must be unable to preform all the substantial and material duties of their regular occupation for how many months?
24 months
individual life insurance policies must include a grace period of how many days for paying any premium except the first?
30 day grace period
BBC insurers filed premium rates for its new line of variable products on January 15. Within how many days must the commissioner approve or disapprove the rates?
30 days all rate filings are subject to a 30-day waiting period before they become effective.
jeff is a licensed producer in both NY and PA. he is charged with embezzlement in NY and his first pretrial hearing is March 1. he must notify the PA commissioner of this charger within how many days of the hearing?
30 days they must report any diciplinary action taken against them within 30 days
The commissioner of insurance can examine the business accounts, transactions, and records of insurers and producers as often as necessary, but must do so at least once in how many years?
5 years
Jons disability income policy provides that benefits will be reduced once he reaches age 62. at this point, his benefits must be equal to what amount that was payable before age 62?
50%
how long can a life insurance policy be backdated
6 months
if a retired worker's total income including one-half of his or her social security benefits exceeds a threshold amount, then up to what benefits exceeding the threshold are taxable?
85%
Jeff is a licensed insurance producer in both PA and NY. he is charged with embezzlement in NY, and his first pretrial hearing is set for March 1. He must notify the PA commissioner of insurance within how many days of this hearing?
Jeff has 30 days to notify the PA commissioner of insurance of the disciplinary action being taken against him
Nolan is covered by a group PPO plan. Ned has an individual PPO plan. Which statement is correct? Nolan pays less for coverage than Ned. Nolan has more benefit options than Ned. Ned's plan costs less than Nolan's plan. Both plans cost the same.
Nolan pays less for coverage than Ned the risk for a group is spread out, thus making group health insurance less expensive than individual health insurance
benefits paid through a life insurance policy's accelerated benefit rider: -must be used for medical expenses directly related to the reason for the insured's terminal illness or injury -can be used for any purpose as long as the expense is medical-related -must be used for long-term care expenses -can be used for any purpose
accelerated benefit funds can be used for any purpose, though they are meant for medical and living expenses
which provision allows part of a life insurance policy's death benefit to be paid while the owner is still living if he or she suffers a terminal illness?
accelerated benefits provision
which one of the following statements most correctly describes a universal life insurance feature that is NOT available with traditional whole life insurance
accessing the cash value must be done through a partial surrender, not a loan. traditional whole life policies provide access to the cash value thru a loan
the formal name for what is commonly called a "double indemnity ride" is:
accidental death benefit rider is aka double indemnity rider
when completing an application for life insurance, andrew says he's 39 years old but he is actually 35. when the insurer discovers this, what can they do?
adjust the benefits
Ed is totally disabled from an accident and is now eligible for social security disability benefits. when will benefit payments begin? immediately within three months after five months after nine months
after 5 months the social security benefit payments will begin this is a 5 month waiting period
sam spends 182 days in the hospital. at what point in her hospital stay will medicare part A no longer pay any benefits unless she draws from her lifetime savings reserve?
after 90 days max benefit period under part A is 90 days
which of the following is NOT an unfair claims settlement practice if committed by an insurance company in PA? -failing to promptly acknowledge communications about claims -failing to promptly settle a claim for which liability is uncertain -appealing from an arbitration award in favor of an insured to compel the insured to accept a lower settlement -failing to affirm or deny coverage within a reasonable time after completing a claim investigation
ailing to promptly settle a claim for which liability is uncertain is NOT an unfair claims settlement practice
alpha co pays the premiums for its group medical, dental, disability, and LTC insurance plans. which statement is correct about the income tax consequences? -The premiums for all of the policies are taxable income to the employees. -The premiums are deductible income to the employees -alpha can take income tax deductions for all the premiums it pays on its policies -Alpha can take an income tax deduction only for the premiums it pays for its medical plans.
alpha can take an income tax deduction for all of the premiums it pays on its policies
at what point does a deferred annuity beneficiary receive any benefits under the contract?
at the death of the owner/annuitant BEFORE annuitization
Jim's policy expired due to nonpayment of premium. His agent sends him a statement the following month without notice of the lapse. If Jim pays the premium and later suffers a loss for which he files a claim, what will prevent the insurer from denying the claim? -estoppel -utmost good faith -reasonable expectations -waiver
estoppel
an insurer must notify its current customers of its privacy policy and practices at least once every how often? -6 months -36 months -12 months -24 months
every 12 months
which of the following is NOT an unfair claims settlement practice if committed by an insurance company in PA? -failing to promptly acknowledge communications about claims -failing to promptly settle a claim for which liability is uncertain -offering to settle claims for less than due to encourage litigation -raising policy defenses to reduce a claim
failing to promptly settle a claim for which liability is uncertain is not an unfair claims settlement practice
which are offered in a basic medical expense plan?
first dollar coverage with no deductible reimbursement with no co payment right to choose a health care provider
which finances health care costs without being tied to a high deductible insurance plan? -HSA -MSA -IRA -FSA flexible spending account
flexible spending accounts (FSA)
in a back end loaded universal life contract, when and from where does an insurer deduct administration fees?
from full or partial policy surrenders during the first 10 or so policy years
with respect to health insurance renewability provisions, which of the following statements is true? -guaranteed renewable coverage is generally less expensive than noncancellable coverage -Noncancellable coverage is offered primarily to blue-collar applicants. -conditionally renewable coverage can be cancelled by the insurer anytime certain conditions arise. -An optionally renewable policy gives the insurer the option to require the insured to submit new evidence of insurability in order to renew the policy.
guaranteed renewable coverage is generally less expensive than noncancellable coverage
adam is an independent agent and solicits policies for several different insurers. what kind of relationship does he have with each insurer? -consultant -dependent -foduciary -presumptive
he has a fiduciary relationship with each insurer
when ralph is injured in an accident at home, he asks that the disability waiver of premium rider goes into effect. how will the policy's premiums be handled during the waiting period?
he must pay the premiums, which the waiver will repay f he is still disabled at the end of the waiting period
Jeremy has had an individual health insurance policy for many years because of his family's history of cancer. the tendency of someone like jeremy to buy and retain insurance is known as: -implied selection -adverse selection -exposure reduction -risk avoidance
his tendency to buy and retain insurance is known as adverse selection
which of the following is NOT a remedy available to the PA commissioner of insurance for committing an unfair method of competition? -imprisonment -cease and desist order -suspension of license -revocation of license
imprisonment is not a punishment for committing an unfair method of competition you cannot be arrested for committing an unfair method of competition
which of the following are required provisions in a market-value adjusted annuity? -incontestability period -nonforfeiture agreement -60 day grace period -misstatement of age provision
incontestability period nonforfeiture agreement misstatement of age 60 day grace periods ARE NOT REQUIRED
which of the following options must be offered to all long-term care policyowners? -waiver of pre-existing conditions clause -inflation protection -guaranteed benefits clause -replacement protection
inflation protection must be offered to all LTC policyowners
in applying for a whole life insuranc epolicy, andrea disclosed that she is a rock climber. of the following, what may the insurer do? -issue a policy but charge a premium -issue a term rider rather than whole life insurance -issue a policy that does not pay death benefit if the death is a direct result of climbing -decline the application
issue a policy but charge an additional premium decline the application issue a policy that does not pay a death benefit if the death is a direct result from rock climbing
What does a viatical settlement allow? -allows a chronically/terminally ill person to leave money to their heirs -allows an insured to sell a life insurance policy when they no longer need coverage -allows a chronically/terminally ill insured to gain a sum of money that is needed to pay medical expenses or enhance the quality of life -allows the insured to assign the policy to a third party, who will use the proceeds to pay the insured
it allows a chronically or terminally ill insured to gain a sum of money that is needed to pay medical expenses or enhance the quality of life
paul has a group health savings account through his employer. if paul changes jobs, what happens to the HSA?
paul's HSA goes with paul; it does NOT remain with the employer
as a general rule, life insurance policy loans become available after a policy has been in force for: -6 months -1 year -3 years -5 years
policy loans normally become available after the policy has been in force for THREE years
if a labor union sponsors a group life insurance plan for its members, which of the following statements is correct? -The union members are the policyowners. -The union must pay all of the premiums. -premiums must be paid either entirely from union funds or from a combination of union funds and member funds -all of the union members must enroll.
premiums must be paid either entirely from union funds or from a combination of union funds and member funds
what is the period of time that must pass before benefits begin under a new disability income policy?
probationary period
insurance agents are often called
producers
ginger operates an accounting business as a sole proprietor. she pays 1600 each month in premiums for a medical insurance policy covering her and her family. which of the following statments correctly describes the tax treatment of this policy?
she can deduct 100% of the premiums paid, and benefits are tax free
Fallon is self employed and has a medical savings account (MSA). which is correct about the account? -She cannot take the MSA funds if she changes employers. -Contributions are not deducted from taxable income. -Funds in the account must be depleted by Dec. 31. -she must maintain a high deductible insurance plan
she must maintain a high-deductible health insurance plan
congress amended to medicaid spend-down laws to eliminate:
spousal impoverishment
of the various life contingency income options, which option offers the largest monthly payment for a given amount of annuity funds?
straight life income (aka pure life income) offers the largest monthly income payment
a type of life insurance that covers two people and only pays the death benefit upon the second insured's death is called: -survivorship life -family life -spousal life -joint life
survivorship life
which statement about increasing term insurance is correct? -premiums are generally lower than level term or decreasing term insurance -it is normally sold as a rider on a permanent life policy -the premium increases during the policy term as the death benefit increases -the cash value increases during the term
term insurance is normally sold as a rider on a permanent life policy
what provides an additional death benefit for death due to any cause, accident or illness? accidental death benefit rider cost-of-living rider term rider return of premium rider
term riders provide additional death benefits for any cause of death
which of the following is not a power granted to the PA commissioner of insurance? -licensing producers and companies -enforcing insurance laws -issuing regulations to administer insurance laws -prosecuting individuals for violating insurance laws
the PA commissioner of insurance CANNOT prosecute individuals for violating insurance laws
lisa is 72 and is thinking of purchasing a fixed deferred annuity to hold the proceeds gained from the recent sale of her house. which of the following may suggest that this product is not well suited for lisa? -Her investment objective is for tax-deferred, guaranteed accumulation. -She has a low risk tolerance. -She may eventually want the annuity to provide lifetime income. -the annuity has a 10 year surrender charge
the annuity has a 10 year surrender charge period
which one of the following is included in the employee's taxable income? -the value of any group life insurance exceeding $20,000, less any premiums the employee pays -the value of any group life insurance exceeding $30,000, less any premiums the employee pays -the value of any group life insurance exceeding $40,000, less any premiums the employee pays -the value of group life insurance exceeding $50,000, less any premiums the employee pays
the value of group life insurance exceeding $50,000, less any premiums the employee pays
When calculating the surviving family's ongoing cash needs at the death of the prospective customer, the agent must consider all of the following expenses EXCEPT: utilities transportation expenses family medical expenses the insured's funeral expenses
the insured's funeral expense is not considered because it is not an ongoing cash need
under social security, what is the primary insurance amount (PIA)
the monthly benefit amount a person will get if they elect to take benefits at full retirement age
if an individual employer offers group life insurance on a non-contributory basis, how much of the group must be covered?
the plan must cover 100% of employees
of the following, what statement(s) regarding a life insurance policy's cost-of-living (COL) rider is correct? -the policy's death benefit amount can increase without requiring proof of insurability -the max death benefit increase is usually limited to 5% annually -COL riders are best suited for UL insurance policies -COL riders are commonly tied to the consumer price index
the policy's death benefit amount can increase without requiring proof of insurability COL are commonly tied to the consumer price index the max death benefit increase is usually limited to 5% annually -since COL are tied to the CPI, when the CPI goes up so does the benefits
in converting a term policy to a permanent policy, the premium for the permanent policy is determined on what basis?
the premium for the permanent policy is determined on either the attained age basis or original age basis.
which of the following statements about deferred compensation plans is correct? -They are considered qualified plans. -All employees over the age of 21 with at least one year of service must be eligible to participate in the plan. -they allow executives to delay receiving current compensation until a future time -Annuities and mutual funds are most commonly used in funding deferred compensation plans.
they allow executives to delay receiving current compensation until a future time
Acme Insurance and Apogee insurance agree to offer different premium rates for persons of equal risk within a particular class. They also agree to limit benefits paid to insureds within this class if the insureds live within certain counties of PA. What are Acme and Apogee engaging in? -acceptable marketing and underwriting practices -unfair and prohibited business practices -insurance fraud -false advertising
they are engaging in unfair and prohibited business practices they are agreeing to unreasonable restraint of trade in insurance business, and they are engaging in unfair discrimination
a variable annuity contract owner can annuitize the account's cash value under which of the following payout options? fixed payout option only variable payout option only fixed or variable payout option fixed and variable payout option simultaneously
they can annuitize under a fixed or variable payout option
what is the maximum amount of time most states allow insurers to delay paying cash surrender values when a life insurance policy is canceled? -1 month -6 months -9 months -1 year
they can delay for up to 6 months
the commissioner of insurance can review the business transactions, accounts, and records of insurers as often as necessary but must do it how often?
they must rview the records every five years
after Bob and Ellen's first child is born, the couple wants to add the baby to their policy, while increasing Ellen's coverage. they would probably buy which of the following? -spouse/other insured term rider -children's term rider -family term rider -living benefits rider
they would buy a family term rider because this rider covers multiple family members equally.
a provision found in some deferred annuities, which allows surrender charge-free withdrawals if the interest rate credited to the accumulated value drops below a specified level, is called: -surrender provision -bailout provision -release provision -non-forfeiture provision
this is called the bailout provision
who would be able to access their life insurance policy cash value through a partial surrender but not a policy loan Tonya, who owns a variable life insurance policy Gina, who owns a term life insurance policy Tim, who owns a universal life insurance policy Abe, who owns a whole life insurance policy
tim, who owns a universal life insurance policy. Tim can access his cash value through a partial surrender but not through a policy loan. traditional policy loans are NOT available with universal life insurance policies
In a viatical settlement arrangement, the party who enters into the arrangement with the policyowner is called a: viatical settlement provider viator viatical settlement broker viatical settlement purchaser
viatical settlement provider
which of the following riders waives the cost of insurance from being deducted from a universal life policys cash value in the event the insured becomes disabled
waiver of monthly deductions rider prevents the cost of insurence from being deducted from the UL poliocys cash value
which is not necessary to create a legal contract? -consideration -offer -warranty -acceptance
warranty is not necessary to create a legal contract
if a policyowner partially surrenders an adjustable life policy, which of the following happens? -the premium stays level -the premium goes up proportionately -the premium goes down -the premium goes down by the amount of the withdrawal
when a policyowner partially surrenders an adjustable life policy, the premium goes down. It proportionately reduces the policy's death benefit and future premium
alex sold an insurance policy before his license lapsed and earned a commission on the sale. is he entitled to a commission if the policy is renewed?
yes, because he was licensed when the policy was sold
edwina was injured in a car accident that resulted in both her legs being amputated. what is the minimum amount of benefit she will receive under her specified accident policy?
$1,000 a specified accident policy provides $1000 for double dismemberment, $500 for single, and at least $1000 for accidental death
agent monroe helped her client brian enter into a viatical settlement agreement with best insurers. which of the following parties will get the life insurance proceeds upon brians death? -brian's beneficiaries under his will -agent monroe -agent monroe and best insurers -best insurers
Best Insurers will get the proceeds
when calculating a family's ongoing needs at the death of the insured, agent must consider all of the following expenses EXCEPT -utilities -transportation expenses -funeral expenses -family medical expenses
DOES NOT consider the cost of the funeral only considers ongoing needs
all the following statements on children's term riders on life insurance policies are correct, EXCEPT A children's term insurance rider provides a modest amount of coverage Children's term riders often are issued for a specified amount A children's term rider can be issued for a specified percentage of the primary insured parent's base policy The modest amount of coverage in a children's term rider reflects the small amount parents are willing to pay for children's insurance.
IT IS NOT TRUE that a modest amount of coverage in a children's term rider reflects the amount of parents willing to pay for children's life insurance
james bought a life insurance policy 18 months ago. If he commits suicide today, what, if anything, would the insurer be obligated to pay the beneficiary? -the full death benefit -the death benefit minus premiums paid -refund of the premiums paid -nothing
If you commit suicide within 2 years after purchasing a life insurance policy, the insurer is obligated to only refund the premiums paid to your beneficiary.
Len decided to surrender his policy for its cash value. All the following statements concerning his decision are correct EXCEPT: -the insurer will send len a check for the policy's cash surrender value -the insurer may decide to pay the cash value either in a lump sum or monthly installments -the policy is cancelled and the insurer's responsibility under the contract ends -the policy cannot be reinstated
It's not true that the insurer may decided to pay the cash value either in a lump sum or in monthly installments. The insurer is required to pay it in a lump sum
Stacy is a captive agent for best rates insurance company. Her agency contract gives her permission to print and use business cards with the company's logo and submit applications for its policy. What type of authority does stacy have to take these actions?
Stacy has express authority due to the contract between her and the insurance company specifically allowing her act in such a way
Agent Jill received a letter from the Department of insurance asking her to submit verification of having completed the continued education requirements for the previous licensing period. Three weeks later, the department sent another letter. Which penalty may the Department impose if Jill has still not responded to their request a month later?
a fine up to $100 per day per violation A producer has 30 days to respond to a written inquiry from the Department
an agent who sells insurance for an insurance company that does not have a certificate of authority to operate in that state represents
a non-admitted insurer
what type of life insurance policy distributes its surplus after the company accounts for reserves, liabilities, capital, and expenses? -participating policy -non participating policy -industrial insurance policy -commercial insurance
a participating policy because this policy participates in the divisible surplus of the insurer
which defines a pre-existing condition for group health insurance purposes? A pre-existing condition is a health condition that the insured was diagnosed with or treated for within the six months before enrolling in the plan. A pre-existing condition is a health condition that the insured was diagnosed with or treated for within the 12 months before enrolling in the plan. A pre-existing condition is a condition for which care or treatment was sought during the six weeks before enrollment. A pre-existing condition is any condition that was covered under an earlier plan.
a pre-exisiting condition is a health condition the insured was diagnosed with or treated for within the six months before enrolling in the plan
with respect to social security benefits, what is a worker's primary insurance amount (PIA)? -the amount of retirement benefit the worker will receive at their full retirement age -the total amount of money a person earned during their lifetime -the amount payable to the surviving spouse after the worker's death -the amount of retirement and disability benefit payable to the worker and their spouse
a worker's primary insurance amount is the amount of retirement benefit the worker will receive at their full retirement age
which is not an optional health policy provision issued in PA?
change of beneficiary insured retains the right to change the beneficiary
chester established a 529 plan for his daughter and contributed $5,000 to the account this year. 6 months later, he withdrew $20k to pay for his daughter's college tuition. Which statement is true? -they can take a tax deductible for the contribution -chester does not have to pay tax on the distribution -chester must pay tax on the earnings portion of the withdrawal -chester can take an income tax deduction for their withdrawal
chester does not have to pay tax on the distribution because the interest earned and the funds are not taxable
which of the following can be funded with a single premium payment, a series of fixed premium payments, or flexible premium payments? immediate annuities deferred annuities retirement annuities single-premium immediate annuities
deferred annuities can be funded with a single premium, a series of fixed premium, or flexible premium payments
which of the following most accurately describes a market value adjusted annuity (MVA)? It is a type of deferred annuity that credits the contract with an interest rate higher than current market rates. It is a provision found in some deferred annuity contracts that is intended to maintain a level current interest rate in times of rate fluctuations. It is a type of deferred annuity that encourages contract owners to surrender the contract and transfer the funds to a new MVA when interest rates are declining. It is a provision found in some fixed deferred annuity contracts that discourages deferred annuity contract owners from surrendering their annuity when rates are rising.
it is a provision found in some fixed deferred annuity contracts that discourages annuity contract owners from surrendering their annuity when rates are rising
which of the following statements regarding third-party ownership is correct? -the insured has no rights in the policy -the insured can access the policy's cash value but cannot designate beneficiaries -the insured can designate a beneficiary and access the cash value, but cannot assign the policy to another third-party owner
it is correct that the insured has no rights in the policy
all the following statements regarding life insurance term riders are correct EXCEPT: -if the insured is alive at the end of the term, then the coverage ends without value -term life insurance riders has no cash value or any other living benefits associated with them -a term rider provides additional coverage for as long as the insured maintains the base whole life policy -like term life insurance policies, term riders continue only for a specified amount of time
it is not true that a term rider provides additional coverage for as long as the insured maintains the base whole life policy.
in some states, employers can buy group life insurance for their employees through a multiple employer trust (MET). All the following statements about METs are correct EXCEPT: -each individual employer is issued a separate policy -a MET must have at least 2 employers and 100 employees -for contributory plans, 75% of the group must enroll -for noncontributory plans, 100% of the group must enroll
it is not true that each individual employer is issued a separate policy
Lynn participates in a flexible spending account established by her employer. which statement is NOT correct? Lynn contributes funds to the account through a salary reduction agreement. The funds in the account roll over from year to year. Funds in the account escape both income tax and payroll tax. Lynn's employer may contribute to the account.
it is not true that the funds in the account will roll over from year to year the employee forfeits any unspent funds in the account at the end of each year, they do not roll over
tom bought a $100,000 adjustable life insurance policy. with respect to that policy, all the following statements are correct EXCEPT: -tom can increase the death benefits under his policy if he can prove insurability -if tom wants to change the premium, both he and the insurer must agree to the change -if tom wants to increase the amount of the death benefit by more than $50,000, he will have to buy a new policy -if tom increases the death benefit but does not increase the premium, the cash value growth slows or stops
it is not true that tom will have to buy a new policy if he wants to increase the death benefit by more than $50,000
all of the following statements regarding tax benefits of qualified retirement plans are correct EXCEPT: Employers can take an income tax deduction, within limits, for contributions they make to the plan. Employees are not currently taxed on contributions to the plan made on their behalf by the employer. Benefits are taxed to employees only when they are withdrawn or distributed. Upon distribution, employees are required to pay taxes only on the interest earned on plan contributions but not on the contribution amount itself.
it is not true that upon distribution, employees are required to pay taxes only on the interest earned on plan contributions but not on plan contributions themselves benefits are taxed to employees only when distributed or withdrawn
with respect to roth IRA conversions, all the following statements are correct EXCEPT: -income taxes must be paid on the tradiaitonal IRA when the account is converted -to convert to a roth IRA, a person must have earned income -amounts converted to a roth IRA will grow tax free -the convert to a roth IRA, the owner may have any amount of modified adjusted gross income in the year of the conversion
it is not true that you must have earned income to convert to a roth IRA
zelda, a health insurance producer, assures a prospective applicant that the insurance she sells is backed by the PA life and health insurance guarantee associaiton. what is true about this kind of assurance?
it is prohited at all times
which of the following statements is true with all types of life insurance? -premiums are invested in the insurer's general account, allowing policy values to be contractually guaranteed -insurers return excess premiums in the form of policy dividends -life insurance policies are noncancellable by the insurer except for non-payment of premium -life insurance policies feature a cash value that can be accessed while the insured is alive
it is true that all life insurance policies are noncancellable by the insurer except for nonpayment of premiums
beverly owns a small manufacturing business. her sister rose is her assistant. beverly could not run the business without rose. bev wants key employee disability insurance because:
it will pay cash benefits to the employer if a key employee is disabled
julia signed a viatical settlement agreement on May 1. 2 weeks later she decides she no longer wants to sell the policy, what are her options? -julia may cancel the contract only if the viatical settlement provider consents -julia may cancel the contract because the cancellation period has not ended -julia may cancel and contract and keep any proceeds -julia cannot cancel the contract because the cancellation period has ended
julia can cancel the contract because the cancellation period is 30 days after signing the contract and 15 days after getting proceeds
which of the following situations presents a situation of pure risk? -knowing that his family is depending on him, Frank wants to insure his life -wanting to increase his retirement savings, Saul invests his life savings in the stock market -Ralph takes a second mortgage on his house and uses the proceeds to gamble -wanting better job security, Ron cashes in his life insurance to start his own business
knowing that his family is depending on him, Frank wants to insure his own life only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk which may result in a gain.
an annuity's basic purpose is to
liquidate a sum of money and protect against outliving one's income
which factor must health insurers consider when setting the premium for health insurance policies? mortality rates accidental death rates morbidity rates current economic conditions
morbidity rates morbidity rates indicate the average number of persons at various ages who can be expected to become disabled because of sickness or accident. also indicate show long a disability is expected to last
under a disability waiver of premium rider, an insured most commonly must be totally disabled for how long before the waiver begins?
most waiver of premium riders require that the insured be totally disabled for SIX MONTHS before the waiver begins
core benefits that must be covered in all 10 standard medicare supplment policies include which of the following: -part A coinsurance -Medicare Part B deductible -part B coinsurance after the deductible is met -parts A and B blood coverage for the first 3 pints a year
part A coinsurance part B coinsurance after the deductible is met parts A and B blood coverage for the first 3 pints a year
of the following, what organization(s) do life and health insurance companies regulate themselves through: -FINRA -american society of chartered life underwritiers -international society of health underwriters -national association of life underwriters
national association of life underwriters american society of chartered life underwriters international society of health underwriters FINRA only regulates agents selling variable life products
most of the combination, or 5th, dividend options involve what? extended-term insurance one-year term life insurance renewable term insurance one-year permanent insurance
one-year term life insurance combination dividend options involve one year term insurance
from an insured's point of view, which definition of disability is more advantageous? own occupation any occupation presumptive disability partial occupation
own occupation is more advantageous to the insured
to boost her sales at the end of the year, agent Trudy started offering potential clients a $250 cash gift card in exchange for purchasing a life insurance policy. which ethical sales practice has she violated? -twisting -churning -rebating -false information
rebating its illegal to offer gifts in exchange for the purchase of an insurance policy
which of the following statements about non-qualified deferred compensation plans is most correct? -the basic purpose of a deferred compensation plan is to defer the receipt of compensation until one is in a lower tax bracket and will pay lower taxes -the executive will receive the deferred compensation when they change jobs -if the executive dies before retirement, their heirs will not receive any of the deferred compensation -life insurance is never used with deferred compensation plans
the basic purpose of a deferred compensation plan is to defer the receipt of compensation until one is in a lower tax bracket and will pay lower taxes
in an annutitant driven deferred annuity contract, what happens upon the death of the annuitant prior to annuitization if the owner is still alive?
the contract terminates and the death benefit is paid to the beneficairy
steve is the beneficiary of hi smother's accidental death and dismemberment policy. At her death, he receives the policy's death benefit in a lump sum. Which statement is correct? The death benefit is not taxable income. Only the capital sum is taxable. The entire death benefit is taxable income. Only the interest earnings are taxable income.
the death benefit is not taxable income as long as the benefits under a AD&D policy are paid in a lump sum, they are not taxed
which of the following statements regarding the extended term nonforfeiture option is correct? -If the owner of a lapsed policy does not choose a nonforfeiture option, the insurer is prohibited from automatically applying the extended term insurance option. -Policies issued under the extended term insurance are eligible to receive policy dividends if the surrendered policy had received them. -An extended term option allows the policyowner to continue insurance coverage for some period with a reduced premium. -the extended term option is not available if the original policy was issued on a substandard (rated) basis
the extended term option is not available if the original policy was issued on a substandard (rated) basis
the federal risk retention act of 1986 applies to which business? -self-insuring business -re-insurers -credit life insurance companies -high-risk business insurers
the federal risk retention act of 1986 applies to self-insuring businesses
if the insured under a whole life policy is diagnosed with cancer and wishes to use his life insurance to take a final vacation with his family, which of the following statements is most correct? -The insured could enter into a viatical settlement, which would provide him up to 25 percent of the policy's death benefit. -the insured could enter into a viatical settlement, which would provide him with up to 50-80% of the policy's death benefit -The insured's only option is to borrow from the cash value through a policy loan. -The insured's only option is to exchange the life insurance policy for an immediate annuity.
the insured could enter into a viatical settlement, which would provide him with up to 50-80% of the policy's death benefit
the guaranteed miniumum interest rate in an indexed deferred annuity is typically: -1 to 3% -4 to 5% -6 to 10% -depends on the participation rate and cap
typically 1-3% is guaranteed
sandy and cindy are healthy, 45 years old, and have similar life expectancies. though they are insured by the same company, sandy's life insurance premiums are considerably lower than cindy's. what may this indicate a case of? -misrepresentation -unfair discrimination -twisting -false advertising
unfair discrimination
