Quiz Questions
What kind of ratings uses a rate format for all insured individuals?
Community
The Waiver Of Premium Rider allows an insured to waive premium payments during which time of an insured?
Completely and Permanently
What kind of Clause related to this statement: E&N company issued a policy in consideration of the representations on an application and the payment of the first premium?
Consideration
What must be on the first page of Medicare Supplement Policy that gives an insurer the right to change their premium amounts?
Continuation Provision
Economic Turmoil recently caused a 4% rate of inflation. As a result, Bob's Life Policy's face value was raised by 4%. What rider caused this change?
Cost of Living Rider
Mr. Potter owns a Market Value Adjusted Annuity he has accumulated a large gam louse this, and some unanticipated Medical expenses so he made the decision to surrender his annuity. Unfortunately his annuity is premature which of the following will affect the penalty he will have to pay?
Current interest rates
If an employee elects to continue coverage under the Cobra Regulations, who would pay premium?
Employee
A Life Insurance Policy has many provisions, which one states that the application of the contract?
Entire Contract
What type of Buy Sell Agreement involves a partnership?
Entity Plan
What type of Buy Sell Agreement involves partnership?
Entity Plan
Sandy has a policy in which of its premium is invested in traditional fixed securities and the rest of the premium is invested in contracts to a certain stock index. What policy this describe?
Equity Index Whole Life
Which of the following is true statement regarding an Adjustable Life Policy?
Evidence of insurability may be necessary if coverage is increased
An Agency contract entered into between an insurer and licensed producer contains which kind of authority?
Expressed
Jenny has a Life Insurance Policy that pays her certain amount to her selected beneficiary for 15 years, and then it will pay a lump sum at the end of 15 year period. what does this describe?
Family Maintenance
When a producer obtains credible information about an applicant for Health Insurance in what capacity is their position?
Field Underwriter
Key Person Life Insurance does NOT reimburse a company for which of the following?
For increased future pension liability resulting from a key persons death
If a qualified plan begins to make payments to its recipient, what part of the distributions taxable?
Gains
Fixed Annuity In?
General Account
Which of the following is a health plan that generally covers only services from approved providers in their network?
HMO
Any language that seems confusing in a contract of adhesionywould be in favor of which party?
Hank an Insured
Rick is an insured in participating Life Policy that presently has his premiums waived due to his disability. In regard to his situation, what can Rick do or not do?
He can still receive his dividends
Dean chose a Nonforfeiture Option by using his life policy's cash value to buy an extended Term Insurance Option. What will happen to his term coverage expires?
His protection ends
A producer who is appointed with more than one insurer is considered to be?
Independent Producer
Which Annuity guarantees income to an annuitant as long as her or she lives and upon their death refunds their beneficiary their remaining payments?
Installment Refund Annuity
A Universal Life Policy has 2 main components. What are the components
Insurance and Cash Account
A Universal Life Policy has 2 main components what are the components?
Insurance and a cash account
Mary bought a Flexible Premium Deferred Annuity w/ 25 year period certain. she died 5 years after beginning her annuity. What would Mary Beneficiary receive?
Payment for 20 years 25-5= 20
Mary bought Flexible Premium Deferred Annuity w/a 25 year period certain. She died 5 years after beginning her annuity phase, What Mary's beneficiary receive?
Payments for 20 years
The death benefit will not increase with which Rider?
Payor Benefit
How are PPO Physician Paid?
A fee for each service they provide
Social Security obtains finds from payroll tax (FICA) that out a limit on an employee's Income. What is the title of his limitation?
Average monthly wage
Life Insurance Premiums are determined by several factors pertaining to an insured including age, occupy and:
Avocation
If an insurer is admitted and qualified, what would they receive from the Department of Insurance?
Certificate of Authority
Which of following is characteristic an insurable Risk?
Chance of loss must be calculated or measurable
Which Life Insurance policy issued by a mutual insurer provides a return of divisible surplus?
Participating
Nelson has a $10k Term Life Policy and he forgot to make his premium payment on May 1st . On July 13 Nelson died in regard to his death what will his insurer pay?
$0
Wilson has an annuity that grows tax deferred. He needs to explain this to his son. What should Wilson tell his son about an annuity tax deferred?
As an annuity grows there is no taxation upon its growth
Which of the following is a factor M&B insurer would consider when determining whether to accept a Group Life Plan?
Average Age
Jane has 10k in IRA qualified plan with her employer. Recently her department was closed and her funds were paid to her so she could move them to another account. Jane decided to rollover her plan to a traditional IRA. How much will Jane receive from the plan administrator?
$8000 subtract $10,000-$2000= $8000
William is studying in Germany for 2 semesters to learn the art of German cuisine. He was injured in a biking accident which left him disabled. He has a disability policy. What percent of his benefit will be paid from it?
0%
The Johnson Company pays the premiums for their employees Medical and Dental Expense Insurance. How much of their cost is deductible as a business expense?
100%
L&D Insurer can contest Dan's life Insurance Contract due to a fraudulent statement made on his application within what time?
2 years
When how many months must a person be expected to die from sickness in order to be classified as terminally ill?
24 months or 2 years
To avoid a penalty at what age can annuitant make withdrawal?
59 1/2
Which of the following dividends options does Jill have that results in taxable income to her?
Accumulation at interest
Regarding the PPACA what is the mandate on pre-existing conditions?
All Health plans must cover an injured regardless of their pre-existing conditions
The cash value of Universal Life Policy can be used in many ways without the policy lapsing. Which of the following is not allowed?
Allow the cash value to go to a negative amount
A producer who's appointed with more than one insurer is considered?
An Independent Producer
An insured's representations and warranties are incorrectly stated in which of the following statements?
An applicant's statements on an application are considered warranties
An insured's representations and warranties are incorrectly stated in which of the following statements?
An applicants statements on an applications are considered warranties
In reference to Life Insurance and Contract Law, A person most likely will have an insurable interest in insuring a persons life if:
An economic interest exists for the continuance for an insured's life
Which of the following would be considered the purest form of Term Insurance?
Annually Renewable Term
Issac becomes angry of his mortgage expenses when attempting to determine the Human Value Of his Life Insurance Policy? What should Issac do?
Answer the question, since it's required for Life Underwriting
What special provisional feature of an annuity allows an owner to surrender their annuity of interest rates drop a certain amount w/n a specific time?
Bail Out
Which of the following is incorrect about an association?
Be formed for the purpose of buying coverage
What happens to premiums of Graded Premium Whole Life Policy after their increase period?
Become Level
Bob was covered by his Whole Life Policy and he recently died. His named primary beneficiary died and the contingent beneficiary. What will happen to the benefits of the policy?
Benefits will go to Bob's Estate
Why are Insurance Policies aleatory contracts?
Both the insurer and insured consent to the contract in writing
What legal agreement dictates who may buys deceased business partner's share of their business?
Buy Sell
If an insured changes to a less hazardous occupation to a less hazardous occupation which of the following should be the response of their insurer?
Decrease the premium
What kind of policy would be the best to insure the declining balance on a mortgage?
Decreasing Term
Don wants to reinstate his policy instead of applying for a new one. What will be his advantage for new one. What will be his advantage of reinstating his policy?
Don's original age will be used for his premium determination
Bob wants to pay in more funds to shorten his premium paying period. Which policy will give Bob this flexibility?
Interest Sensitive
Which beneficiary designation allows a policy owner's right to be limited?
Irrevocable
Which of the following is correct regarding an irrevocable Beneficiary?
It can be changed only with the written permission of the beneficiary
How does reinsurance benefit the insurer?
It helps protect against catastrophic losses
If John dies before his annuity payout start date what will happen to his interest earned?
It is taxable
Which of the following is usually true of participating Life Insurance Policy?
It pays dividends to its policy owners
Which of the following will happen to Tom's total premium amount of his policy's payment occasionally increase?
It will increase
Which of the following relates to a non participating policy?
It will not pay dividends
In a Life Income Option what determines the amount of each installment?
Life expectancy and principal amount
Which mode results from the highest over all cost?
Monthly A monthly premium will be the highest overall cost
All of the following are differences between Fixed and Variable Annuities except:
Mortality
Insurance companies base their insurance on?
Retention
Gail bought 20k Whole Life Policy in 2008 and her annual premium is $300, Gail died 3 years later and her insurer paid her beneficiary $20,900. What kind of Rider in her policy?
Return of Premium
Which of the following is not a right of life insurance policy owner?
Revoke an Absolute Assignment
Variable Annuity In?
Separate Account
Jan has a claim pending and her insurer requires her to have an examination. Which of the following is most lotto occur?
She may be examined at her insurers expense
Regardless if an domestic, alien or foreign in order to conduct insurance business it must be authorized by which of the following?
State where they conduct insurance business
Which of the following would be considered a traditional level premium contract?
Straight Whole Life
The duties of a producer where replacement is involved include all of the following except:
Submit all expenses to creditors
What can cause immediate taxation on the interest earned on an annuity?
Surrendering an annuity for its cash value
In a Non-Qualified Annuity what is true regarding the tax consequences of a withdrawal during its Accumulation period?
Taxable interest will be withdrawn first and a 10% penalty will be imposed if an annuitant is under age 59 1/2
What kind of protection does Level Term Policy contain?
Temporary
When a Company change the wording of a Uniform Policy Provision?
Th wording is not less favorable to an insured
When using the Needs Approach to determine the amount of Life Insurance needed, it necessary to determine all of the following?
The accumulative earnings power of the income earner, along with the other sources of passive income
Bob was covered by his Whole Life Policy and he recently died. His named primary beneficiary died before he did and the contingent beneficiary. What will happen to the benefits of the policy?
The benefits will go to the contingent beneficiary
Which of the following is correct statement regarding Group Life?
The cost of group insurance is based on the ratio of men to women
Jane has a Major Medical PlN with 80/20% coinsurance and a deductible of $75. If she has already met her deductible and received her bill $175 how much will her insurer pay?
The insurer will pay 80% of $175 =$140
All of the following are true of key Person Insurance except?
The plan is funded by permanent insurance company only
Why are Insurance policies aleatory contracts?
The policy performance is conditioned upon a future occurrence
Jane is currently insured by ABC Life Insurance and she learns she is terminally ill. Jane then agreed to sell her policy to XYZ Insurance Recovery. Joe, James Insurance Producer arranges the transaction between Jane and XYZ Insurance Recovery. In this scenario Joe is?
The settlement Broker
Which of the following if the incorrect about Variable Life policies?
They are guaranteed and fixed
Why does the corridor of a Universal Life Policy raise the death benefit?
To avoid losing take advantage
The Federal Government's role was increased when Medicaid was created by allowing the state to do which of the following?
To receive matching funds to expand public assistance programs like offering eyeglasses, prescription drugs and medical supplies
Earned Income is all except:
Unemployment Benefits
Which of the following wouldn't be responsible legitimate expense calculated in the Needs for Life Insurance proceeds?
Vacation after a funeral
All of the w correctly apply to a Life Policy that provides a straight $50k of coverage a period of 3 years except?
Variable
Jenny's husband died. She stopped receiving Social Security benefits when her daughter turned 16. At what age may Jenny be eligible to start receiving benefits again?
When she's 60