Life insurance
Of the following dividend options, which of these is taxable?
Accumulation at interest
Which dividend option would an insurer invest the policy owners money and add any interest earnings as the dividends accrue
Accumulation of interest option
People with higher loss exposure have the tendency to purchase insurance more often than those average risk. This is called
Adverse selection
The term which describes the fact that both parties have a contract may not receive the same value is referred to as
Aleatory
Which of the following does coordination of benefits allow
Allows a secondary payer to reduce the benefit payment so no more than 100% of the claim is paid
The difference between a long-term care partnership plan and a non-partnership plan is which of the following
Asset Protection
What is not a characteristic of a universal life insurance policy
Fixed surrender value
All of these characteristics of a universal life insurance policy except
Fixed surrender value. A fixed surrender value is not a characteristic of a universal life insurance policy
If a producer diverts funds from an insurer, here she may be found guilty of
Fraud
An HMO that involves a partnership of positions and other providers to practice out of a central facility is called a
Group HMO
HMO plans are required to provide
Home health care
Who is responsible for assembling the policy forms for insureds
Insurance carriers
What happens to the interest earned if the annuitant dies before the payout start date
It is taxable
Which of these is not considered to be a common life insurance nonforfeiture option
Life income annuity
What is Medicare part B known as
Medical insurance
A provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid up policy of the same type is called
Nonforfeiture provision
A policy owner suffers an injury that runners him in capable of performing one or more important job duties. Any decrease in income resulting from messenger he would make him eligible for benefits under which provision
Partial disability
What kind of life insurance policy issued by a mutual insurance provides a return of divisible surplus
Participating life insurance policy
The automatic premium loan provision authorizes an insurer to withdraw from a policies cash value the amount of
Past due premiums that I'm not been paid by the end of the grace period
Variable life insurance and universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance
Policy owner has the right to select the investment which will provide the greatest return
Which of these is considered to be a document that describes the critical segments of a life insurance policy
Policy summary
Coordination of benefits regulation applies to all of the following plans except
Preferred provider organization plan
How are survivorship life insurance policies helpful and estate planning
Provide funds to help pay taxes
Dana is an employee who deposits a percentage of her income into her individual annuity. Her company is also contributes a percentage into a separate company pension plan. What kind of annuity is this considered
Qualified retirement annuity
What is the primary feature of a viatical settlement
Reduce death benefit prepayment
A policy owner may exercise which of these dividend options that uses the dividend pay all or part of the next premium due
Reduction of premium dividend option
What three levels of care or long-term care policies provided with
Skilled nursing, intermediate, and custodial
A non-participating company is sometimes called
Stock insurer
And ensure has the right to recover payment made to the insured for the negligent party these rights are called
Subrogation
Which of these is not a characteristic of the accelerated death benefit option
The benefit can be offered as a rider at a specific extra cost or may be at no cost
What does the word level in level term describes
The face amount
A non-contributory health insurance plan helps the insurer avoid
adverse selection
Group dental plans will frequently place a limit on annual benefits in order to minimize
adverse selection
In an insurance contract, the element that shows each party is giving something of value is called
consideration
Level premium permanent insurance accumulates a reserve that will eventually
equal the face amount of the policy
The waiting period for a disability insurance policy
excludes payments for a short-term illness or injury
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contracts
income period
Pierre is covered by his employers group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable income under this plan
$0. Benefits that fall under a major medical plan are considered to be a reimbursement for a lost and it's not taxable income
Lorenzo is self-employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?
100% of his health insurance costs can be deducted from his gross income
The acceptance of a credit life application requires the submission of a certificate of insurance to the insured within how many days
30
Within how many days most a rollover be completed in order to avoid paying taxes current income
60
What percentage of our participants income our group long-term disability benefit amounts typically limited to
60%
A type of ensure that is owned by its policy owner is called
A mutual insurer
What is not an example of a business continuation plan
Deferred compensation
What is created after policy proceeds are obtained in a lump sum and then immediately invested
Estate
When calculating the amount of life insurance needed for an income earner, what has to be determined when using the needs approach?
The family's financial objectives of the income earner were to die or become disabled
The illumination. Under hospital indemnity plan is
The specified number of days and insured must wait before becoming eligible to receive benefits for each hospitalization
What is the elimination period of an individual disability policy
Time period a disabled person must wait before benefits are paid
A life insurance policy sold the Michigan may be contested by the insurer only during the first how many years of the contract
Two
A life insurance policy which contains cash values that vary according to his investment performance of stocks
Variable whole life
A PPO subscriber receives care from an out of network provider. Is the care covered?
Yes