Quizlet Life and Health Questions for Exam 2023
gets more and more expensive every time it is renewed
A renewable life insurance policy
is eligible to participate in an employer-sponsored group health plan
A self-employed person may deduct the IRS-approved percentage of premiums paid for health coverage if she
the cash value equals the death benefit
A universal life contract expires when
an appointment
A written agreement in which an insurer authorizes a producer to sell insurance policies for it is called
certificate of authority
An admitted insurer must have which of the following before transacting insurance in the state?
twisting
An agent speaks disparagingly of a competitor while trying to sell an insurance policy. What unfair marketing practice has the agent committed?
noncontributory plan
In noncontributory group health plans, how many eligible employees must be covered by the plan?
Enroll within a specified eligibility period
In order to obtain group health insurance without providing evidence of insurability, what do eligible individuals generally have to do?
The consideration in a life insurance contract
In the insurance industry, human life value refers to which of the following
the frequency of premium payment
In the insurance industry, mode of premium payment refers to
will not be subject to tax
Sherwood has no valid will but has named his estate as the beneficiary of his life insurance policy. As a result, he can expect that the policy proceeds
the preretirement "blackout" period
The income period when a surviving spouse does not qualify for Social Security survivor or retirement benefits is called
the policyonwer
The party normally paying the premiums for the policy and retaining all rights, values, and options is called
applying for a certificate of authority
Transacting insurance includes all of the following EXCEPT
pure life annuity
What type of annuity settlement arrangement stops making payments when the annuitant dies?
The loan value of a policy is equal to the current cash value, less the amount of interest determined by the loan interest rate stated in the policy.
Which of the following statements about life policy loans is NOT correct?
Adopting emergency regulations when necessary
Which of the following would NOT be a primary objective of insurance regulation?
are lower in the first few years
With a modified premium whole life contract, premiums
policy proceeds paid in lump sum
With respect to life policies, all of the following are subject to federal income tax EXCEPT
deducted from the face amount of the policy before the proceeds are paid by the insurer
Zelda dies with the premium still due on her life policy, but before the grace period has expired. Zelda's beneficiary can expect the amount of the past-due premium to be
a defined benefit plan only
a 401(k) plan can be
may be created while the insurer is till alive or after the insurer's death (inter vivos and testamentary)
a life insurance trust
cannot meet its financial obligations
an insolvent insurer is one that
will suffer a premium increase
An insured who signs a fraudulent claim form
aleatory contract
The fact that Elmo could die after paying just one premium on his life insurance policy and still have the entire face amount paid to his beneficiary is an example of
when a policyowner stops paying premiums on a permanent policy, its cash value accumulation or equivalent must be made available to the policyowner
The term nonforfeiture values refers to the fact that:
an optionally renewable policy
A health insurance policy that the insurer may choose not to renew, but only on the premium due date is called
income in respect of a decedent (IRD)
A qualified retirement plan distribution caused by the plan participant's death is considered to be
59½
A qualified retirement plan distribution is considered to be premature if made before the participant is age
2 years
According to the Time Limit on Certain Defenses provision, unless an insured has made fraudulent misstatements, a health policy is incontestable after
issue the policy with a probationary period after which the insurer may continue or cancel the policy
All of the following are alternatives an insurer has when asked to insure a substandard risk EXCEPT
coverage of Alzheimer's Disease
All of the following are characteristics of most long-term care policies EXCEPT
assigning dividends to pay off a mortgage
All of the following are dividend options EXCEPT
the insurer may increase the premium rate after the policy is in effect, provided it does so by classes of insureds
All of the following statements about noncancelable health policies are true EXCEPT
the producer must be knowledgeable about the insurance policies, but need not be concerned with offering how these polices can be used to solve the general public's needs
All of the following statements regarding an insurance producer's fiduciary responsibility are correct EXCEPT
all the state's public school teachers
All of the following would likely be eligible for group health insurance EXCEPT
money held for those policyowners who have claims but have not yet filed them
An insurance company's unpaid claim reserve can be defined as
disability insurance policy
An insurance policy that provides partial replacement of earnings when the insured is unable to work because of a disabling injury or illness is known as
guaranty associations
Associations organized to protect claimants, policyholders, annuitants, and creditors of financially impaired insurers are known as
contracts of adhesion
Bart is interested in purchasing an insurance policy. He has reviewed 5 different policy forms and has found fault with each one. Unfortunately, he is unable to negotiate changes in the basic policy provisions. This is because insurance policies are
immediate and fixed
Ben invests in an annuity that begins making payments of $2,500 a month for as long as Ben lives. Ben's annuity is
the life income, 10 years certain option
Bob wants a life policy that provides his wife Sue payments for life. If Sue dies before 10 years have passed, their daughter Mary will continue to receive the payments until the end of a 10-year period. Bob's choice is
the cash value of the policy itself
Collateral for a life policy loan is
45
Damon purchased a 10-pay life policy at age 35. He can expect it to be paid up by age
will subtract the amount of the outstanding loan and pay $240,000 to the beneficiary
If Desdemona is insured by a life policy with a face amount of $250,000, but which has an outstanding policy loan of $10,000 at her death, the insurer
45
If an application for reinstatement of a policy is filed by a policyholder, but the company takes no action on the reinstatement, the policy is automatically reinstated after how many days?
tax-deductible to the employer
Premiums fully paid by an employer for employee group health insurance are generally
exclusions
Riders that modify the life insurance protection that is offered and that permit a company to accept an otherwise unacceptable risk are called
case management
Second surgical opinions, precertification, concurrent and retrospective reviews, and outpatient/ambulatory services are all elements of a cost-containment system commonly known as
a payroll tax paid by employers and employees equally
Social Security disability benefits are financed by
an insurance counsultant
Someone who advises an insured, beneficiary, or anyone with an interest in a life or disability policy and charges a fee for this advice is
6 months
Susan is receiving continuing disability benefits and will for years to come. Her insurer, according to the Notice of Claims provision, can require her to give notice that the claim is continuing as often as every
enabling the Commissioner to make necessary changes in the Code
The Insurance Code is composed of provisions allowing all of the following EXCEPT
no medical exam is required
The advantage of enrolling in a group health insurance program during the eligibility period is that
the agent's report
The applicant for an insurance policy must sign all of the following EXCEPT
the amount paid to the insured for dismemberment or loss of sight
The capital sum in an accident policy is
dividends
The cash value of a permanent life insurance policy may be used for all of the following EXCEPT
refund life annuity
The type of annuity that guarantees to pay total income at least equal to the purchase price of the contract is a
the level premium and it's used for level and decreasing term policies
The type of premium for term life insurance that remains the same throughout the policy period is
a fee for each service
The usual payment arrangement under a Preferred Provider Organization contract is
Restoration may occur automatically after a specified dollar amount of benefits has been exhausted.
Under what circumstances do major medical policies usually provide for restoration of benefits?
If the policyowner dies or becomes disabled prior to the insured reaching either age 21 or 25
Under which of the following circumstances will the payor rider waive premiums and allow a life policy to remain in force?
per stirpes
Vanessa's policy on her life names her 3 brothers as beneficiaries to share equally in the proceeds. If any of the brothers predeceases Vanessa, that brother's share will be passed on to his child. Vanessa's beneficiary designation is known as
Interest paid to the policyowner on the cash value accumulation of a permanent insurance policy
What is a life insurance policy dividend?
It gives consumers the right to question reports made about them by investigative agencies and get false information corrected.
What is the purpose of the Fair Credit Reporting Act?
no deductible applies
When a major medical policy provides first dollar coverage it means
fiduciary
When an agent promptly forwards the client's premium to the insurer, the agent is acting in what capacity?
by insuring the excess with other companies through a reinsurance agreement or treaty
A company may write insurance in excess of its retention limits
corridor deductible
Some major medical policies begin with basic first dollar coverage that pays up to its limits, then the insured must pay a certain dollar amount of expenses before the major medical portion steps. What term applies to the dollar amount the insured must pay between the basic policy and the major medical coverage?
protect policyholders against the insurers inability to pay claims
The purpose of the Guaranty Association is to
the total amount paid over the years will be greater than the face amount of the policy (due to interest earned)
When either the fixed period or fixed amount option is selected for a life policy,
payment of claims
Which health insurance policy provision allows the insurer to pay accrued indemnities that remain unpaid at the insured's death to either a beneficiary or to the insured's estate?
lump-sum cash
Which life insurance settlement option is considered the default option if no other option is elected?
The time during which payments are made to the annuitant
Which of the following best defines the annuity period?
minimum number of patients
Which of the following is NOT a federal requirement that must be satisfied by a Health Maintenance Organization (HMO)?
more policyowners
Which of the following is NOT a source of life insurance policy dividends?