2-15

Installment Refund option

Midge begins receiving monthly annuity checks after her husband's death. A year later, Midge passes away and their daughter receives the same amount in monthly checks until the proceeds are exhausted. Which of the following options provide for this?

Spendthrift clause

The question, "Have you made your policies creditor-proof for your beneficiaries?" refers to which of the following?

basic medical expense plan

The term "first dollar" is often used to describe benefits payable by which type of policy?

common stocks

The variable annuity is an investment contract in which the purchaser's retirement fund and benefits increase or decrease according to the investment performance of an underlying portfolio of equity investments - primarily:

Indeterminate Premium whole life

The whole life policy that provides lower premium rates initially and adjusts according to the insurers mortality, expense and investment projections is the ______________ policy.

automatic loan provision

Which life nonforfeiture option enables the insurer to withdraw funds from the policy if any cash value has accumulated to pay for any premiums that may not be paid by the policyowner?

Medical Expense, AD&D, and Disability Income

Which of the following are considered the three basic forms of healthcare coverage?

The policyowner must expect to suffer a loss when the insured dies or becomes disabled.

Which of the following constitutes insurable interest?

Change of Occupation

Which of the following is an optional provision of most health insurance policies?

Premiums that may be adjusted monthly or yearly to meet the insured's needs

Which of the following is offered through an Adjustable Life policy?

common stocks

Which of the following is typical of the investment portfolio of a variable annuity company separate account?

Unilateral

Which of the following legal terms indicates that a life insurance contract contains the enforceable promises of only one party?

401k

Which of the following retirement plans involves a "matching element?"

A written contract cannot be changed by oral evidence.

Which of the following statements describes the Parol Evidence Rule?

A blanket policy covers a changing group of people.

Which of the following statements regarding blanket life insurance is TRUE?

express authority

Which of the following types of agent authority is specifically set forth in writing in the agent's contract?

the policy's share of the company's excess funds or divisible surplus.

Which statement completes the following sentence most accurately? A life insurance policy dividend is:

reduction.

Changing one's lifestyle to minimize a known risk is an example of risk:

reimbursement

Commercial health insurance companies operate on the ___________ method

the amount of share balance held by the member.

Credit union members are permitted to have a group life insurance policy which provides coverage equal to:

4,300

Florence received a hospital bill for $19,500 after being released from the hospital. Her major medical policy has a $500 deductible and an 80/20 coinsurance split. Of the total expenses, how much will she have to pay?

an officer of the company

For tax purposes, which would be considered a key person in business?

paid the face amount that the premium would have purchased at age 55.

George applied for life insurance stating he was 45 years old when he was actually 55. When George died, the error was discovered and the insurance company:

George's salary

George owns a hardware store and is the insured under a business overhead expense policy. If George becomes disabled, which of the following would NOT be covered under the policy?

The company will pay the entire proceeds to the assignee

Gina has assigned a $10,000 policy under an absolute assignment to cover her $5,000 mortgage. How will the company pay the claim upon Gina's death?

60%

Group long-term disability benefits generally represent what percentage of the participant's income?

increase year to year.

Health insurance coverage is subject to change year to year and premiums are typically subject to:

The loan plus any interest due is deducted from the death benefit.

How is the loan on a life insurance policy repaid if the policy pays a death claim?

15 years

If Vickie had a Family Maintenance policy purchased when she was 25 years old that has a 15-year period, how many years will the policy's beneficiary receive income from the policy if Vickie should die at age 40?

a paramedic or registered nurse in lieu of a physician.

If a medical report is required on an applicant, it can be completed by:

Corporate Pension plans

Keogh plans are similar to what other type of retirement plan?

1,900

Joan has a major medical expense plan with a $500 deductible and an 80/20 coinsurance provision. If she receives a hospital bill for $7,500 of covered expenses, how much of that bill will she have to pay

the enrollment card will require additional information

When writing group life coverage on a medical basis:

an outside organization that manages employers' self-insured plans.

A Third-Party Administrator is:

a multiple of the daily room and board rate.

A basic policy miscellaneous expense benefit will be expressed as:

Family plan.

A life policy that is sold in proportioned units to cover an insured, spouse, and their children is called a:

IRA plans

A retirement plan that is not employer-sponsored allows single workers who earn up to $25,000 a year to contribute up to $5,000 every year and deduct the contribution from their taxes (2012). The plan described is a(n):

will rarely have the same value from month to month.

Accumulations units in a variable annuity:

company approval

Agents must secure ____________________ prior to the use of any advertisement not furnished by the insurer.

traditional net cost method

All of the following approaches are used by insurers to determine benefits payable under basic surgical expense insurance EXCEPT:

policy benefits.

All of the following are primary health insurance premium factors EXCEPT:

"The cost is uncertain until the loss occurs."

All of the following statements support the definition of "insurance" EXCEPT:

imprisonment and up to a $200,000 fine.

An HMO found guilty of a criminal violation of the Unfair Trade Practices Act could be charged with as much as:

five

An agent is required to maintain records relating to senior annuity investment transactions for _____ years.

They are paid to the beneficiary for the rest of the certain period.

An annuitant has a Life with 10-year Period Certain annuity option and dies before ten years has elapsed. What happens to the remaining funds?

It may defer payment for as long as six months.

An insurance company has which of the following options when an insured wishes to cash in his policy?

Within 45 days

An insured submits a valid documented claim for medical expenses covered by his major medical policy. According to the Time Payment of Claims provision, how soon must the company pay the claim?

variable annuity

At age 60, Marge has inherited a large sum of money and now desires to purchase an annuity that will appreciate with the market and economic conditions. Which of the following types of annuities should she consider?

When the policy's cash value equals the face amount

At what point does a whole life policy mature or endow?

Conditionally renewable

Beth's health insurance policy allows her to renew coverage up to age 65. The policy also states that if Beth loses her job, the insurer will cancel the policy, regardless of Beth's age. In terms of renewability, what type of policy does she have?

Bill must have Wendy's permission to borrow the loan value of the policy.

Bill has named Wendy as irrevocable beneficiary of his life insurance policy. Because of this situation:

a collateral assignment.

If the policy is transferred as a means of establishing security on a debt, it is considered:

60 or 65.

In a disability income policy, the Waiver of Premium rider generally does not extend past the insured's age of:

When the policy is issued

In a family basic health and accident insurance policy, when do maternity benefits go into effect?

when the policy is issued

In a family basic health and accident insurance policy, when do maternity benefits go into effect?

taxable.

In a group medical expense plan, disability benefit payments that are attributed to employer contributions are:

True

It is not unusual for a producer to receive up to 80% of the first year premiums as commission on life insurance policies.

the employer's preference

Most employers will establish benefit schedules in regard to group life insurance according to:

a contract-specified age

Most guaranteed insurability riders in disability income policies require the insured to exercise the option for additional coverage prior to reaching:

Joint and Survivor annuity.

Mr. & Mrs. Browning were both receiving annuity payments. Mr. Browning died but Mrs. Browning continues to receive payments. The Brownings have a:

The premium for the renewal period will be higher than the initial period.

Mrs. Jones purchases a five-year $50,000 decreasing term policy with an option to renew. Which of the following statements about the policy's renewability is CORRECT?

inflation.

Noncancelable policies CANNOT be used for medical expense reimbursement due to:

cash value accumulation.

Permanent insurance differs from term insurance with regard to:

injuries that are covered by workers' compensation

Personal health insurance policies do not normally include benefits for:

can vary in amount as well as to payment schedule.

Premiums for a variable universal life policy:

transference.

Purchasing insurance is an example of risk:

3,200

Raymond goes into the hospital for five days and his bills total $4,500. He is covered under a Major Medical policy that offers a $500 deductible, 80/20 coinsurance, and a $2,000 stop-loss feature. What will the company pay?

sliding

Representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required is an example of:

5 months

Social Security disability benefits are eligible to begin after a waiting period of ________ through which time the person must remain disabled.

determined by discounting a person's future net earnings at a reasonable rate of interest.

The Human Life Value approach is:

The promise that the insurance company will pay a stated amount to the beneficiary upon receipt of proof of death of the insured.

The Insuring clause in a life insurance policy states which of the following?

Chief Financial Officers

The NAIC's Uniform Trade Practices Act grants ___________________ the power to investigate insurance companies and producers, to issue cease and desist orders, and to impose penalties on violators.

Florida Life Insurance Solicitation Law

The _______________ is the law that spells out the information and procedures required of agents and insurers when proposing life insurance to a prospective buyer.

cash refund

The ________________ annuity option guarantees income for the annuitant's lifetime; or if the annuitant dies before funds are depleted, the policy beneficiary receives a lump sum cash payment.

premiums to be paid.

The consideration involved in an insurance contract refers to the:

two months

The data on the annual report provided to annuity owners which states the units credited to the contract and the dollar value of a unit must be updated no more than ____________ prior to the date the report is mailed.

interest only

The life insurance settlement option under which the principal never decreases unless the beneficiary withdraws it is the ___________ option.

state law.

The minimum number of persons to be insured under a group health insurance plan is established by:

settlement option

The payment of the proceeds of a policy in other than a lump sum cash payment is called a:

60 days

Under Medicare Part A, a benefit period starts when a patient enters the hospital and ends when that patient has been out of the hospital for _______ days.

15 days

Under the health insurance Claims Forms provision, it is the company's responsibility to supply claim forms to an insured within how many days after receiving notice of a claim?

subtract the unpaid premium from claims payments.

Under the unpaid premiums provision included in most health insurance contracts, the company is entitled to

subtract the unpaid premium from claims payments.

Under the unpaid premiums provision included in most health insurance contracts, the company is entitled to:

Whole Life as the base with a Term rider

What contracts are packaged to form the family income and family maintenance contracts?

The amount of outstanding indebtedness at any given time

What is the maximum amount of coverage that can be carried under a credit life insurance policy?

31 days

What is the minimum grace period provided for in the mandatory provisions for all health policies other than monthly or weekly premium policies?

To produce a profit for the stockholders

What is the operating objective of a stock life insurance company?

ASO (Administrative Services Only).

When an insurance company administers a self-insured plan and is paid a fee, it is called a(n):

3,000

When an insured has industrial life policies with a single insurance company which total _______ or more in face value, the insured has the option to convert these policies into one ordinary life policy without evidence of insurability.

any period of time before one year.

With an immediate annuity, payments to the annuitant begin when a period of time has elapsed, which is:

6.20%

________ of the FICA tax is distributed to OASDI (2012).

Keogh plans

____________ are designed to fund retirement of self-employed individuals.

group

_____________ long-term disability plans pay a percentage of the disabled employee's income earned before the injury.

individual

_____________ long-term disability plans pay a specific amount of income benefits.