Test Questions
Discouraging consumers from purchasing products from an insurer is called a(n) - rebate - avoidance - boycott - sanction
boycott
Under HIPAA, medical plan late enrollees may be excluded for pre-existing conditions for a maximum of - 6 months - 12 months - 18 months - 24 months
- 18 months
How many days notice does the Affordable Care Act require insurers to give before rescinding coverage? - 10 - 20 - 25 - 30
- 30
The Medical Information Bureau consists of members from which group? - doctors - hospitals - insurance companies - underwriters
- insurance companies
Optionally renewable provision allows what party to cancel the contract? - policyowner - insured - insurer - either the insurer or policyowner
- insurer
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today? - $200,000 - $80,000 - $120,000 - $0
- $200,000
A(n) _________ company is licensed by the Commissioner to conduct insurance business in Maryland. - Authorized - Captive - Reciprocal - Domestic
- Authorized
Which of the following disability buy-sell agreements is best suited for businesses with a limited number of partners? - Split dollar plan - Entity agreement - Cross-purchase agreement - Key person plan
- Cross-purchase agreement
Insurance crimes which affect interstate commerce are prosecuted by the - US Attorney General - Governor - FBI - Department of Homeland Security
- US Attorney General
The surrender charge on many deferred annuity contracts are waived when the - annuitant becomes unemployed - annuitant dies or becomes disabled - contract's interest rate falls below a stated percentage - contract is canceled within the first year
- annuitant dies or becomes disabled
Which of the following can be defined as a cause of a loss? - Adversity - risk - hazard - peril
- peril
Which of the following disability income provisions allows two periods of disability to be counted as one? - residual disability - rehabilitative disability - recurrent disability - repetitive disability
- recurrent disability
An example of endodontic treatment is a - bridge - crown - filling - root canal
- root canal
Contributions made by an employee to a qualified retirement plan are required to be - subject to income taxes - fully refundable - nonforfeitable - subject to a vesting schedule
- subject to a vesting schedule
Which of the following best describes the presumptive disability provision? - reduces the incontestability period - increases the monthly benefits stated in the policy - waives the typical total disability requirements - assumes all injuries result in total disability
- waives the typical total disability requirements
Starting in 2016, businesses with up to ___ employees will be defined by the ACA as a "small business". 40 60 80 100
100
A description of a qualified plan's insurance contract may be found in which ERISA reporting form? Annual return/report (Form 5500) Shareholder's report IRS Form 1040 Summary report (Form 6500)
Annual return/report (Form 5500)
A policyowner suffers a covered accident and health insurance loss on June 30 and submits the proof of loss to the insurer July 10. If the policyowner cancelled the coverage on July 2, how will the insurance company handle the claim? - Insurer does not have to pay the claim - Only a percentage of the claim will be paid - Claim must be paid after proof of loss is received - Claim will be denied
Claim must be paid after proof of loss
An employer has a group life insurance plan in place for his employees. How would an employee in poor health be treated in this situation? Approved on a graded basis Not eligible for insurance on this plan Eligible for the same type of coverage as the other employees Must pay a rating based on risk
Eligible for the same type of coverage as the other employees
When premiums are calculated, one factor would be the expenses of the beneficiary insurer policyowner producer
insurer
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefit payments will be derived primarily from funds that were obtained from the state's Guaranty Association accumulated from the invested principal given up by the annuitant's refund beneficiary not distributed to life annuitants who died before life expectancy
not distributed to life annuitants who died before life expectancy
A life annuity feature which provides benefit payments for a minimum number of years, no matter when the annuitant dies, is called fixed period period certain installment refund straight life
period certain
The interest credited to the cash values of personally-owned non-qualified annuities is considered a tax credit tax-deferred tax-deductible tax-exempt
tax-deferred
The interest paid during an annuity's payout period is considered nontaxable taxable as ordinary income taxable as capital gains tax-deductible
taxable as ordinary income
An insurable risk requires that the chance for both a loss or gain exists the loss must be catastrophic that the chance of loss be calculable that the loss must be incalculable
that the chance of loss be calculable
Beth is a surgeon who has an own-occupation disability income policy. She was injured six months ago and has been unable to return to her practice. Her monthly benefit from the policy is $15,000. During this time, Beth has been working part-time at a local boutique and receives $2,000 monthly. What is her ongoing monthly benefit while she is unable to perform her surgical duties? - $13,000 - $17,000 - $15,000 - Nothing
- $15,000
An individual working part-time has a gross income of $5,000 for the year. If this individual has an IRA, what is the maximum deductible IRA contribution allowable? - No deduction allowed - $5,000 - $2,000 - $1,000
- $5,000
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of - 5% - 10% - 17.5% - 20%
- 10%
Nonqualified medical expense distributions from a Health Savings Account (HSA) have a tax penalty of - 7.5% - 10% - 20% - 30%
- 10%
Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility? - 10 - 30 - 60 - 100
- 100
What is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a SIMPLE retirement plan? - 25 - 50 - 100 - 250
- 100
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of - costs that exceed 7 1/2 AGI - costs that exceed 10% of AGI - 100% of costs - no deduction permitted
- 100% of costs
Part A Medicare includes coverage for all of the following services EXCEPT - First 60 days of hospitalization - 120 days of Skilled Nursing Facility Care - Hospice Care - Inpatient mental health care limited to 190 days in a lifetime
- 120 days of Skilled Nursing Facility Care
Part A Medicare includes coverage for all of the following services EXCEPT - First 60 days of hospitalization - 120 days of Skilled Nursing facility care - hospice care - inpatient mental health care limited to 190 days in a lifetime
- 120 days of Skilled Nursing facility care *its only 100
Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy? - 14 days - 21 days - 30 days - 31 days
- 31 days
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy? - 2 months - 4 months - 6 months - 12 months
- 6 months
How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision? - 1 month - 2 months - 4 months - 6 months
- 6 months
According to ERISA regulations, a Summary Plan Description must be provided to a new plan member within ___ days of the member's eligibility date. - 30 - 60 - 90 - 120
- 90
Tim is retired and has recently separated from his wife. He receives benefits from a qualified retirement plan through his former employer. The plan's trustee has decided to split these benefit payments between Tim and his estranged wife. This decision is likely in violation of which IRS rule? - Reasonable expectations - Alienation of benefits - Minimum coverage - Indemnity of benefits
- Alienation of benefits
How may an insurance company classify an accidental death benefit on a life policy? - As an optional policy rider - As a provision of the policy - As a nonforfeiture option - As a mandatory policy rider
- As an optional policy rider
Insurance is NOT characterized as which of the following? - Transference of risk - Pooling of premium dollars - Method of risk management - As the number of insureds increase, the number of losses decrease
- As the number of insureds increase, the number of losses decrease
Accident and health insurance claim handling is made more convenient to the insured by utilizing - inspection reports - attending physician statements - Medical Information Bureau (MIB) statements - Assignment of benefits
- Assignment of benefits
Which of the following types of insurers limits the exposures it writes to those of its owners? - Restricted insurer - Limited insurer - Confined insurer - Captive insurer
- Captive insurer
A comprehensive group policy also covers expenses related to vision care. Which of the following is not typically covered under a vision plan? - Cataract surgery - Routine eye exam - Corrective vision glasses - Corrective contact lenses
- Cataract surgery
Which would be described as a beneficiary designation by class? - Children of the insured - Estate of the Insured - Tertiary beneficiary - a specific named beneficiary
- Children of the insured
Which of the following can be used to avoid the mandatory withholding tax on qualified plan distributions? - Qualified plan waiver - Trustee-to-trustee transfer - Conduit IRA - 1035 Exchange
- Conduit IRA
In what way is a life insurance policy affected by an accelerated benefit payment? - Decreases the premiums - Extends the grace period - Increases the policy loan balance - Decreases the death benefit
- Decreases the death benefit
Which of the following is generally a form of group credit life insurance? - Decreasing term insurance - Increasing term insurance - Level term insurance - Whole life insurance
- Decreasing term insurance
Which of these noncontributory group plans would a claim likely result in the payment of federal income taxes? - Accidental death - Blanket health - Major medical - Disability income
- Disability income
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy? - Reduced paid-up nonforfeiture option - Accelerated benefits option - Extended term nonforfeiture option - Cash surrender option
- Extended term nonforfeiture option
The "Use it or Lose it" rule applies to - Medical Savings Accounts - Health Savings Accounts - Health Reimbursement Accounts - Flexible Savings Accounts
- Flexible Savings Accounts
Lamont has a point-of-service plan and is seeking to obtain health services outside the network. What will likely be the end result? - Reduction in care given - Higher out of pocket expenses - Increase in premiums - Denial of specialized services
- Higher out of pocket expenses
What can be expected when a preferred provider organization (PPO) patient decides to use a non-PPO? - Higher out of pocket expenses - Lower out of pocket expenses - 100% coverage - No coverage
- Higher out of pocket expenses
Terry receives long-term physical therapy at her residence. What type of insurance would cover this service? - Home health care - Long-term disability income - Nursing home - Respite care
- Home health care
Which of the following is not subject to the promise to pay in an insuring clause? - How the premium is calculated - Policy provisions - Policy conditions - Policy exclusions
- How the premium is calculated
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the funds were rolled over? - Only income taxes on $30,000 - Only income taxes on $24,000 - Income taxes plus a 10% penalty tax on $30,000 - Income taxes plus a 10% penalty tax on $24,000
- Income taxes plus a 10% penalty tax on $30,000
Which statement regarding the certificate of insurance is accurate? - It is an insurance contract between the employer and insurer - It indicates evidence of an employee's insurance coverage - Each certificate of insurance is underwritten on an individual basis - It is issued by the employer to the employee
- It indicates evidence of an employee's insurance coverage
Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA? - It would be considered taxable income to the employee - the employee would not be allowed to an HSA - the employer would pay payroll tax and FICA on the contribution amount - the employer would not be allowed to deduct the contribution from the employee's pay
- It would be considered taxable income to the employee
Which of the following financial products creates an instant estate, no matter when the date of death? - Mutual Funds - Life Insurance - Certificate of Deposit - Deferred Annuity
- Life Insurance
Which of the following is a syndicate established by a group of insurers to share underwriting duties? - Reinsurer - Lloyd's organization - NAIC - Multi-line insurers
- Lloyd's organization
Skilled nursing facility expenses are sometimes covered by ________, but only if the insured was hospitalized prior to entering the facility. - HMOs - Medicare - Medicaid - Medicare Supplements
- Medicare
Which of the following is TRUE about a qualified retirement plan that is "top heavy"? - More than 30% of plan assets are in key employee accounts - More than 40% of annual additions are for key employee accounts - More than 50% of plan assets are in key employee accounts - More than 60% of plan assets are in key employee accounts
- More than 60% of plan assets are in key employee accounts
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons? - net gain index - net payment cost index - cost surrender index - guaranteed renewable index
- Net payment cost index
Medicare Supplement insurance requires an individual to be at least how old for open enrollment? - 59 1/2 years old - 65 years old - 70 1/2 years old - No minimum age
- No minimum age
The disability income policy most likely to have been issued on a substandard basis is - Non-cancelable with a 60-day elimination period - Conditionally renewable - Non-cancelable with a health condition exclusion rider - Guaranteed renewable with an inflation rider
- Non-cancelable with a health condition exclusion rider
A life insurance company just paid $100,000 death benefit to a beneficiary. When the insured died, the cash value was $15,000 and the total premiums-paid equaled $10,000. How much of the proceeds will be added to the beneficiary's gross income for federal income tax purposes? - Nothing - $5,000 - $100,000 - $105,000
- Nothing
The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is - PPO - HMO - DPO - PSO
- PPO
Which action will trigger a penalty tax on premature distributions from a modified endowment contract (MEC)? - Policy loans - Claim on a death benefit - Extended term settlement option - Policyowner reaching the age of 70 1/2
- Policy loans
Dividends from a mutual insurance company are paid to whom? - Policyholders - Beneficiaries - Preferred stockholders - Stockholders
- Policyholders
Coordination of Benefits regulation applies to all of the following EXCEPT - group vision plan - Preferred Provider Organization plan - self funded group health plan - group health plan
- Preferred Provider Organization plan
What typically changes at the re-entry option date found in some term life policies? - Beneficiary - Amount of Coverage - Premium - Contestable Period
- Premium
Which of the following provisions is NOT required to be included in qualified long-term care policies? - Inflation protection - Nonforfeiture option - Prior hospitalization - Guaranteed renewability
- Prior hospitalization
When must a producer provide disclosure about information practices to an applicant? - During the medical examination - Upon policy delivery - Prior to or at the time of signing of the application - Immediately after signing the application
- Prior to or at the time of signing of the application
A Medicare Supplement policy is required to do which of the following? - Provide a 10 day free look period - Provide a 20 day free look period - Provide a 30 day free look period - Provide a 60 day free look period
- Provide a 30 day free look period
Which of the following is an unincorporated association whose members provide coverage for one another? - Self-insurer - Lloyds - Reciprocal - Surplus lines
- Reciprocal
Jim is covered under a disability income policy. He is hurt while engaged in an occupation that is more hazardous than the occupation he specified in the policy. What action will the insurer likely take? - Decrease the premium - Reduce the benefit level - Increase the benefit level - Increase the premium
- Reduce the benefit level
A(n) __________ insurer assumes risk from another insurance company - Reinsurance - Captive - Assumption - Reciprocal
- Reinsurance
What is the accounting measurement of an insurance company's future obligations to its policyowners? - Credits - Reserves - Surplus account - Retention fund
- Reserves
Which of the following can be defined as "the potential for loss"? - Hazard - Risk - Transference - Peril
- Risk
What does a 401(k) plan generally provide its participants? - Tax-free distributions - Salary-deferral distributions - Salary-deferral option - A defined retirement benefit
- Salary-deferral option
When issuing disability income coverage on a substandard risk, an insurance company may - Raise the deductible - Shorten the benefit period - Raise the benefit limits - Reduce the premium
- Shorten the benefit period
If an individual would like to enroll in Medicare or seek public information about Medicare, which federal agency handles this? - Department of Health and Aging - Social Security Administration - Centers for Medicare and Medicaid Services - Department of Homeland Security
- Social Security Administration
Which of these annuity contract features is meant to discourage withdrawals and exchanges? - Annuitization - Annual fees - Withdrawal penalty - Surrender charges
- Surrender charges
Which group is the Do Not Call Registry designed to protect against? - Telemarketers - Charities - Political Organizations - Relatives
- Telemarketers
What is taken into consideration when defining "total disability" in a disability income insurance policy? - Number of days spent in the hospital - The amount of additional coverage the insured has - The insured's education, training, and experience - The elimination period
- The insured's education, training, and experience
An arrangement where an individual is authorized to act on behalf of another person or company is established through - Estoppel - The law of agency - The law of adhesion - An aleatory contract
- The law of agency
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? - The 403(b) custodian - The financial institution - The employer - The participating employee
- The participating employee
What is considered collateral on a life insurance policy loan? - No collateral is needed - The policy's cash value - The policy's face value - The equity in a policyowner's home
- The policy's cash value
A health plan offered by private insurance companies is - Social Security - Medicaid - Medicare - a Medicare Supplement
- a Medicare Supplement
The coinsurance for skilled nursing facility services covered by medicare after the 100% medicare coverage ends is - 15% of the approved amount - 30% of the approved amount - a percentage of the approved amount - a flat dollar amount per day
- a flat dollar amount per day
Which of the following describes coverage for the Medicare Part B coinsurance? - only a long term care policy will cover Medicare Part B coinsurance? - a medicare supplement optional benefit - a medicare supplement core benefit - medicare part b does not require a coinsurance so no additional coverage is needed
- a medicare supplement core benefit
Which of the following is NOT covered by a comprehensive long-term care policy? - custodial care - acute care - physical therapy - skilled nursing care
- acute care
An agent's authority to bind an insurer to an insurance contract may be granted in the - agent's contract and the insurance company's appointment - agent's license and insurance company's certificate of authority - buyer's guide and policy summary - state guaranty association
- agent's contract and the insurance company's appointment
Which of the following is NOT a valid contract exchange? - an annuity exchanged for a life insurance policy - an annuity exchanged for another annuity - a life insurance policy exchanged for another life insurance policy - a life insurance policy exchanged for another annuity
- an annuity exchanged for a life insurance policy
What qualified as acceptance of an insurance contract offer? - a declined policy - an issued policy - the application and initial premium - the initial premium only
- an issued policy
A single-life annuity only has ONE - annuitant - benefit payment - premium payment - beneficiary
- annuitant
To be eligible for Social Security disability benefits, an employee must be unable to perform - any occupation - his/her current occupation - any occupation that reflects the employee's education level - any occupation that the employee is qualified and willing to do
- any occupation
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of - express authority - implied authority - apparent authority - fiduciary duty
- apparent authority
In what situation could an insurance policy's coverage be modified? - applicant is a preferred risk - applicant is a substandard risk - applicant is a standard risk - applicant is uninsurable
- applicant is a substandard risk
Which of these statements regarding insurance is false? - one way insurers deal with catastrophic loss is through reinsurance - as the number of insured units increases, the number of losses decreases - speculative risk cannot be insured - pure risk can be insured
- as the number of insured units increases, the number of losses decreases
In regards to health insurance, employees age 65 or older are typically required to - be offered the same group health benefits offered to the younger employees - provide evidence of insurability for medical insurance offered by the employer - choose medicaid as a their primary provider - choose medicare as their primary provider
- be offered the same group health benefits offered to the younger employees
Tim had an on-the-job accident and collects benefits from his individual disability income policy. Which factor could possibly reduce these benefits? - state and federal income taxes - benefits he receives from workers comp - total household income - assistance he receives from friends and family
- benefits he receives from workers comp
Which of these is not considered to be a cost connected with an individual's death? - funeral expense - tax liability - business expenses - probate costs
- business expenses
Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? - disability overhead policy - business continuation policy - disability buy-sell policy - business overhead expense policy
- business overhead expense policy
Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - required to be in currency - must be equal - can be unequal - must be certified by the state where the transaction takes place
- can be unequal
Voluntarily terminating an insurance policy is also known as - discontinuation - elimination - estoppel - cancellation
- cancellation
A(n) _______ agent is an insurance agent who represents only ONE insurance company. - exclusive - captive - domestic - inclusive
- captive
Which of the following is not an allowable exclusion for long-term care insurance policies? - self inflicted injuries - acute care - custodial care outside the US - care for incurable conditions
- care for incurable conditions
What happens when an initial offer is answered with a counteroffer? - an arbitrator decides on a compromise - the counteroffer is legally enforceable - initial offer is void - initial offer is automatically accepted
- initial offer is void
which statement regarding the waiver of premium rider is accurate? - policy loans are used to keep the policy active - cash payment is not directly provided to the policyowner - insurance companies are required to offer this to all policyowners - premiums are waived in the event of bankruptcy
- cash payment is not directly provided to the policyowner
Which statement regarding universal life insurance is correct? - cash value accumulations have a guaranteed minimum interest rate - policyowner can change the face amount but not the premium - policyowner can change the premium but not the face amount - partial withdrawals cannot be made from the policy's cash value
- cash value accumulations have a guaranteed minimum interest rate
Which of these is not a true statement of the war exclusion? - civil insurrections apply - prevents an insurer's financial catastrophe - typically applies to declared and undeclared wars - war risk is typically uninsurable
- civil insurrections apply
which of the following best describes a point of service (POS) plan? - combines medical health care with long term coverage - combines indemnity plan features with those of an HMO - does not allow treatment with non-network providers - operates like a PPO plan without a gatekeeper
- combines indemnity plan features with those of an HMO
The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a(n) - agency agreement - aleatory contract - contract of good faith - conditional contract
- conditional contract
The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n) - warranty contract - aleatory contract - contract of adhesion - unilateral contract
- contract of adhesion
An insurance application requires an applicant to make a full, accurate disclosure of the risk factor involved. Using this criteria, an insurance policy is considered what type of contract? - aleatory contract - estoppel contract - contract of utmost good faith - unilateral contract
- contract of utmost good faith
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the - premium basis - net proceeds - cash basis - cost basis
- cost basis
Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans - has a limited network of dentists to choose from - cover preventative care once every six months - never require a deductible for major services - cover oral surgery as a result from an injury
- cover preventative care once every six months
Any employee insured under a group life insurance plan is normally - given a master certificate - covered on a noncontributory basis - required to show proof of insurability - covered with term life insurance
- covered with term life insurance
Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able to reside in her home while receiving primary care, as opposed to moving into a nursing home. All of the following long-term benefits encourage this EXCEPT for - custodial care - home health care - adult day care - respite care
- custodial care
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective? - date of issuance of the conditional receipt - date the policy was approved - date of policy delivery - date the insurer received the application
- date of issuance of the conditional receipt
Which annuity allows contributions to an IRA? - single premium immediate annuity - annuity certain - deferred - life with period certain
- deferred
A qualified profit-sharing plan is designed to - allow key employees to participate in profits of the company - distribute a portion of company earnings to its employees - keep key employees from leaving the company - allow employees to elect company officers
- distribute a portion of company earnings to its employees
An HMO prescription drug plan is generally characterized by - generic drugs only - annual deductibles - drugs dispensed through participating pharmacies - drugs dispensed through online pharmacies
- drugs dispensed through participating pharmacies
Which statement about group life insurance is INCORRECT? - cost can be shared between employer and employee - each participant requires evidence of insurability - a minimum number of employees participating may be required - employer is issued a master policy
- each participant requires evidence of insurability
Disability income policies provide protection for which of the following? - economic death - physical death - hospital expense - custodial care
- economic death
Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the - employee's benefits still owed can be claimed - employee cannot be excluded from the new employer's health plan - employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan - new health insurance carrier will have a clear record of any chronic conditions that exist
- employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan
Christopher is issued an insurance policy that contains an attached agreement which alters the terms of the policy. This attached agreement is called a(n) - extension - endorsement - sanction - restriction
- endorsement
The benefit period of Medicare Part A begins on the first day the insured - notices symptoms - enters a hospital - becomes eligible for Medicare - is diagnosed with an illness
- enters a hospital
Notice of information practices must be given to a policyholder at least - every year - every two years - every three years - every four years
- every three years
Which of these procedures is NOT designed for ambulatory care centers? - inpatient surgery - vaccinations - outpatient surgery - physical examinations
- inpatient surgery
Terry suffers an injury at his workplace which is covered by workers compensation. Terry also has a medical expense insurance policy. Under medical expense insurance policies, losses that are covered by workers compensation are typically - excluded from coverage - partially covered - covered, but requiring a higher deductible and copay - subject to age restrictions
- excluded from coverage
Long Term Care policies will usually pay for eligible benefits using which of the following methods? - delayed - fee for service - expense incurred - respite
- expense incurred
when determining the accumulation value of a deferred annuity, the total is calculated by taking the premiums paid plus interest earned minus the - bailout option charge - surrender charges - taxes owed - expenses and withdrawals
- expenses and withdrawals
which of the following are used by most insurers when determining the premiums for large groups? - large number rating - group rating - area rating - experience rating
- experience rating
An appointed producer's implied authority is derived from - the NAIC - express authority - the insurer's Certificate of Authority - evident authority
- express authority
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy? - reduced paid up nonforfeiture option - accelerated benefits option - extended term nonforfeiture option - cash surrender option
- extended term nonforfeiture option
Federally qualified HMOs must offer - dental coverage - urgent care - family planning services - custodial care
- family planning services
Which of these may not be deducted from premium payments or the cash value of a variable life insurance policy? - mortality costs - administrative charges - investment management fees - federal premium taxes
- federal premium taxes
Medicare Part A does NOT provide coverage for - inpatient room and board - inpatient prescription medication - first 3 pints of blood - skilled nursing facility care
- first 3 pints of blood
Major medical policies are typically characterized by which of the following? - corridor deductible - flat deductible - probationary period - first dollar coverage
- flat deductible
What are premiums for group credit life insurance based on? - the age of the borrower at the time debt is incurred - the age of the borrower when debt is paid off - the average age of the borrower over the life of the debt - flat rate unrelated to the borrower's age
- flat rate unrelated to the borrower's age
which of the following combinations best describe a universal life insurance policy? - mutual fund and endowment policy - term insurance policy and a whole life policy - modified endowment policy and an annual term insurance policy - flexible premium deposit fund and a monthly renewable term insurance policy
- flexible premium deposit fund and a monthly renewable term insurance policy
Which of the following contracts offer deferred taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value? - variable life policy - modified life policy - flexible premium fixed annuity - immediate fixed annuity
- flexible premium fixed annuity
Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate - for federal income tax reasons - for federal and state income tax purposes - only if the insured's estate is listed as a beneficiary - only if the policy is owned by the beneficiary
- for federal income tax reasons
Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes? - gain is treated as taxable income and a penalty tax is imposed on the gain - gain is treated as taxable income but no additional penalties are applied - gain is not taxable but a penalty is assessed - surrendering an MEC is considered a tax and penalty-free transaction
- gain is treated as taxable income and a penalty tax is imposed on the gain
What is an insurance contract that identifies individuals by relationship to a specific organization? - employer insurance - group insurance - COBRA plan - Industrial insurance
- group insurance
A condition that increases the possibility of financial loss is called a(n) - risk - peril - hazard - exposure
- hazard
A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the - negotiated amount payable - average amount payable - lowest amount payable - highest amount payable
- highest amount payable
The unwritten authority given to a producer to carry out necessary incidental acts of the agency agreement is called: - implied authority - express authority - apparent authority - acknowledged authority
- implied authority
XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums? - implied authority - apparent authority - express authority - assumed authority
- implied authority
In a staff model HMO, enrollees normally have which of the following pharmacy options available to them? - mail-order pharmacy - in house pharmacy - captive pharmacy - network pharmacy
- in house pharmacy
When must insurable interest exist for a life insurance contract to be valid? - Inception of the contract - Throughout the entire length of the contract - when the insured dies - during the contestable period
- inception of the contract
Rick is a disabled worker receiving Social Security benefits. What are his wife and dependent children eligible for? - no benefits - spouse is eligible for an income benefit but the children are not - income benefit which is a percentage of his primary insurance amount - income benefit which equals his entire primary insurance amount
- income benefit which is a percentage of his primary insurance amount
A(n) ________ agent may represent several insurers - captive - free - independent - career
- independent
Which statement is INCORRECT about the interest-only settlement option in a life insurance policy? - interest rate is guaranteed with a minimum rate - interest on proceeds must be paid by the beneficiary - interest is payable to a stated beneficiary - interest must be paid at least annually
- interest on proceeds must be paid by the beneficiary
In what way are insurance policies said to be aleatory? - only one party makes any kind of enforceable promise - involves the potential for the unequal exchange of value - contract is prepared by only one party - vagueness in a contract's wording is resolved in favor of the policyowner
- involves the potential for the unequal exchange of value
Which statement regarding the certificate of insurance is accurate? - It is an insurance contract between the employer and insurer - it indicates evidence of an employee's insurance coverage - each certificate of insurance is underwritten on an individual basis - it is issued by the employer to the employee
- it indicates evidence of an employee's insurance coverage
What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured? - joint and survivorship - survivorship life - universal life - joint life
- joint life
Laura added a children's rider to her life insurance policy. What type of coverage was added? - level term - increasing term - decreasing term - juvenile term
- level term
Which of these do not indicate the presence of insurable interest in a life insurance contract? - lifelong friendship - marriage - blood-related - co-owning a business
- lifelong friendship
Inpatient psychiatric care is covered under part A Medicare for 190 days per - billing period - hospital visit - year - lifetime
- lifetime
What action can an insurer take to discourage malingering and false disability claims? - the insurer can selectively refuse a disability claim for specific diseases - the probation period can be increased for specific injuries - limit the amount of benefits an insured can receive from two disability policies with the same insurer - a premium rating can be given to an insured with more than one policy with the same insurer
- limit the amount of benefits an insured can receive from two disability policies with the same insurer
Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment? - the insurer can charge a higher interest rate - loan amount is increased to reflect the amount of interest due - future loan privileges will be suspended - the loan balance becomes due immediately
- loan amount is increased to reflect the amount of interest due
The election of COBRA for continuation of health coverage will - increase the coverage and lower premium - maintain the same coverage and increase premium - increase out of pocket costs and lower premium - decrease out of pocket costs and maintain same premium
- maintain the same coverage and increase premium
The owner of a single premium deferred annuity is entitled to do all of these EXCEPT - make additional payments into the annuity - choose the length of the payout period - choose who will be the recipient of the annuity payments - cash surrender the contract
- make additional payments into the annuity
Which of the following situations would an insurance agent need to guard against liability for professional errors and omissions? - remitting premiums to an insurer - conducting a sales meeting with other agents - making a recommendation to a potential insured to replace existing coverage - setting a sales appointment with a potential client
- making a recommendation to a potential insured to replace existing coverage
Risk ____ is the process of analyzing exposures that create risk and designing programs to handle them. - acceptance - management - administration - transfer
- management
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid - mandatory income tax witholding on the amount transferred - paying transfer fees - paying trustee fees - ever paying income taxes on the distributions
- mandatory income tax witholding on the amount transferred
Which of the following relationships demonstrates insurable interest in the absence of economic interest? - lifelong friends - employees - marriage partners - business associates
- marriage partners
An insurance contract may be voided if a misrepresentation found on the application is determined to be - conditional - aleatory - material - intentional
- material
Grep applies for insurance and makes a false statement on the application that will influence whether or not the insurer will accept the risk. Greg's false statement is called a(n) - substandard representation - unacceptable risk - material misrepresentation - adverse selection
- material misrepresentation
Field underwriting by a producer... - is used to reduce costs to the insurer - involves conducting a physical examination of the applicant - may result in the disclosure of hazardous activities - is illegal in most states
- may result in the disclosure of hazardous activities
Field underwriting by a producer - is used to reduce costs to the insurer - involves conducting a physical examination of the applicant - may result in the disclosure of hazardous activities of the applicant - is illegal in most states
- may result in the disclosure of hazardous activities of the applicant
Which of the following covers the part A deductible of medicare? - medicare part b - medicaid - medicare supplement core benefits - medicare supplement additional benefits
- medicare supplement core benefits
Medicare Part B excess charges are covered by - long-term care policies - respite care - medicare part a - medicare supplement insurance
- medicare supplement insurance
Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this? - optionally renewable - noncancelable - guaranteed renewable - conditionally renewable
- noncancelable
The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called - nonforfeiture options - settlement options - conversion options - surrender options
- nonforfeiture options
An agent whose actions exceed the authority granted by contract is - acting under apparent authority - acting under implied authority - not backed by the insurer - backed by the insurer
- not backed by the insurer
Which element of a contract constitutes a definite and unqualified proposal by one party to another? - adhesion - consideration - acceptance - offer
- offer
Insurable interest involves what assumption? - insurable interest must exist during the entire life of the insured - one person gains from the death of another person - one person benefits from another person's continued life - insurable interest must only exist at the time of the insured's death
- one person benefits from another person's continued life
All of these statements correctly describe an aleatory contract EXCEPT: - a legal wager is considered an aleatory contract - potential unequal exchange of value for both parties - only one party makes any kind of legally enforceable offer - element of chance is involved
- only one party makes any kind of legally enforceable offer
Which statement concerning a deferred annuity contract is correct? - contract cannot be assignable by the owner - requires a single premium payment - owner can be the beneficiary, annuitant, or neither - benefits start immediately after contract formation
- owner can be the beneficiary, annuitant, or neither
Which situation would not require the insured's consent when a life insurance policy is issued? - a husband for his wife - a parent for a minor child - a business partner for another partner - employer for an employee
- parent for a minor child
A physician who accepts assignment on all Medicare claims is called a(n) - participating provider - authorized provider - registered provider - admitted provider
- participating provider
Under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting? - person insured - period of coverage - payment period - plan of coverage
- person insured
which statement regarding an adjustable life insurance policy is not true? - combines term and permanent insurance into a single plan - allows flexibility as insurance needs change - plan of coverage may be changed by the policyowner - policy loans are not permitted
- policy loans are not permitted
The standard provisions of an accident and health insurance policy require that the - policy, endorsements, and attached papers constitute the "entire contract" - policy summary, conditional receipt, and initial premium constitute the "entire contract" - change of occupation provision is mandatory - grace period be no shorter than 60 days
- policy, endorsements, and attached papers constitute the "entire contract"
Which of the following accurately describes a participating insurance policy? - policyowners may be entitled to receive dividends - policyowners pay assessments for company losses - stock companies allow their policyowners to share in any company earnings - policyowners are not entitled to vote for members of the board of directors
- policyowners may be entitled to receive dividends
Which of the following guidelines does NOT apply under the pregnancy provision of the Civil Rights Act? - a pregnant woman is entitled to sick-leave under the same guidelines as any other type of disability - pregnancy must be covered under medical benefits the same as any other illness - post-termination extensions of medical benefits must apply equally to pregnancy - abortion complications are covered if the woman's life is in danger
- post-termination extensions of medical benefits must apply equally to pregnancy
The law of large numbers enables insurers to - predict losses - avoid adverse selection - classify rate - assure company profits
- predict losses
According to the law of large numbers, how would losses be affected if the number of similar insured units increases? - the higher the exposure, the higher the cost of each loss - No effect on predicting losses - predictability of losses will be improved - ability to predict losses decreases
- predictability of losses will be improved
what typically changes at the re-entry option date found in some term life policies? - beneficiary - amount of coverage - premium - contestable period
- premium
Which statement regarding the life insurance premium for a children's rider is true? - decreasing premium as each child becomes an adult - premium remains the same no matter how many children - increasing premium as additional children are born - no premium is normally charged for a children's rider
- premium remains the same no matter how many children
Which of the following outlines the authority given to the producer on behalf of the insurer? - rebating agreement - commingling contract - controlled business clause - producer contract
- producer contract
which of the following could be a future use of the cash value that builds in a recently-purchased whole life insurance policy? - convert the cash value to a paid-up term policy - gives policyowner ability to borrow against funds within two years - increases the policy's face amount - provide supplemental income in 35 years
- provide supplemental income in 35 years
Which of the following types of risk is insurable? - pure - speculative - operational - physical
- pure
Which of these statements is NOT characteristic of the law of large numbers? - individual losses can be predicted based on past experience - group losses can be predicted based on past experience - losses can be predicted in large groups with a higher degree of accuracy - rates can be calculated to compensate for losses
- rates can be calculated to compensate for losses
Ambiguities in insurance contracts are typically interpreted in favor of the insured. This rule is referred to as - subrogation - reasonable expectations - insurable interest - adhesion
- reasonable expectations
An insured is entitled to coverage under a policy that a prudent person would expect it to provide. This principle is called - adhesion - reasonable sensibility - reasonable expectations - insurable interest
- reasonable expectations
During an annuity's liquidation phase, the annuitant normally - receives nothing - receives benefit payments at regular intervals - can borrow against the cash value - can increase the premium payout period
- receives benefit payments at regular intervals
An insured covered under a disability income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following? - presumptive disability - concurrent disability - residual disability - recurrent disability
- recurrent disability
What effect can a long-term care benefit rider have on a life insurance policy? - increased cash value - decreased cash value - increased death benefit - reduced death benefit
- reduced death benefit
ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk - transference - retention - reduction - avoidance
- reduction
Which of the following is NOT an objective of the National Association of Insurance Commissioners? - encourage uniformity in state insurance laws - protect the interest of policyowners and consumers - regulate state insurance commissioners - promote efficiency in the administration of state insurance laws
- regulate state insurance commissioners
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? - limited - special risk - reimbursement - blanket
- reimbursement
An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. What type of contractual arrangement is this? - coinsurance contract - mutuality agreement - reinsurance contract - reciprocity arrangement
- reinsurance contract
How can an insurance company minimize exposure to loss? - risk concealing - reinsuring risks - reissuance - risk assumption
- reinsuring risks
Statements made by an insurance applicant on an application are considered to be - representations - warranties - conditional - aleatory
- representations
What is the insurer responsible for when a producer is acting within the scope of authority granted in the agency contract? - all actions by the producer - not responsible for any acts by the producer - responsible for acts that involve misrepresentation only - responsible for acts by the producer that are authority only
- responsible for acts by the producer that are authority only
Which term describes the elimination of a hazard? - risk avoidance - risk retention - risk transference - risk pooling
- risk avoidance
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a - treaty insurer - risk retention group - risk assumption group - captive insurer
- risk retention group
Which of the following describes the act of insuring a risk against possible loss? - risk avoidance - risk transfer - hazard reduction - loss management
- risk transfer
Assets that back the non-guaranteed values of variable life insurance products are held in which account? - trust account set up by the insured - separate account set up by the insurer - general account of the insurer - money market account
- separate account set up by the insurer
A stock insurance company is owned by its... - officers - board of directors - policyowners - shareholders
- shareholders
Laura is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? - authorize for payroll deductions - agree to a physical examination - sign an enrollment card - register with her state of residency
- sign an enrollment card
Which of the following would not have a restricted ability to enter into a contract? - mentally ill person - minor - person under the influence of alcohol - small employer
- small employer
An individual may receive Medicare Part A Hospital benefits, regardless of age, as long as the person has received which of the following benefits for at least 24 months? - unemployment - workers comp - medicaid - social security disability
- social security disability
Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be - the same - less than 50% - somewhat less - somewhat more
- somewhat less
Which type of risk involves the potential for loss AND the possibility for gain? - homogenous - adverse - pure - speculative
- speculative
Which one of these is not considered to be an element of an insurable risk? - speculative risk - pure risk - loss cannot be catastrophic - loss must be due to chance
- speculative risk
which life insurance policy provision prohibits a beneficiary from "commuting, encumbering, withdrawing, or assigning" any portion of the proceeds prior to actual receipt from the company? - insuring clause - spendthrift clause - nonforfeiture provision - collateral provision
- spendthrift clause
XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this? - split-dollar - cross purchase - key employee - deferred compensation
- split-dollar
An example of rebating would be - using intimidation in order to restrain or monopolize the business of insurance - a mutual insurance company paying dividends to its policyowners - reducing the premiums across the board for a specific risk class - splitting the commission with the buyer on a sale of insurance
- splitting the commission with the buyer on a sale of insurance
Who regulates an insurer's claim settlement practices? - National Association of Claim Adjusters - State Attorney General - National Association of Insurance Commissioners - State insurance departments
- state insurance departments
Steve has a group disability income policy where the premiums are paid by his employer. He elected to pay for additional residual disability coverage. Which of the following statements is true? - Steve's disability benefits are received tax free - the premiums for steves disability policy are tax-deductible for Steve - steve can deduct the premium for the amount paid for the additional residual disability coverage - steve will pay taxes on the disability benefit received from his employer, but will receive any residual disability benefits tax-free
- steve will pay taxes on the disability benefit received from his employer, but will receive any residual disability benefits tax-free
What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period? - subject to market value adjustment - subject to no adjustments - subject to a surrender charge only - cash value is forfeited
- subject to market value adjustment
Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually reduces to $0 after a stated amount of time? - surrender charge - progressive fee - premature withdrawal charge - cancellation fee
- surrender charge
Which of the following statements is TRUE if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made? - surrender charge is applied - the account can be rolled into the surviving spouse's IRA - Distributions will be received tax-free if surviving spouse is over age 59 1/2 - Future distributions are payable to the owner's estate
- the account can be rolled into the surviving spouse's IRA
which statement regarding the joint and survivor life insurance settlement option is NOT true - age of the beneficiaries plays a factor when determining the payment amounts - income continues until the last beneficiary dies - two or more beneficiaries can be paid - the amount of each installment is larger than the single life income option
- the amount of each installment is larger than the single life income option
Fee-for-service is a method of administering health insurance benefit payments in which - the insurer is reimbursed directly - the cost of each service is bundled into one payment - the cost of each service is schedule - the insurer pays for services through a voucher system
- the cost of each service is schedule
Under the Law of Agency, the principal is considered to be - the producer - the insurer - the plan administrator - the insured
- the insurer
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for - the marital deduction - death benefits - Section 1035 Exchange - Capital gains taxation
- the marital deduction
Taxable income may be the result from all of these modified endowment contract (MEC) transactions except for - a cash value loan is taken out - automatic premium loan provision is utilized - the policy is surrendered for less than what was paid into it - dividend is issued
- the policy is surrendered for less than what was paid into it
An advantage of owning a flexible premium life insurance policy would be - premiums are fixed for the first 5 years - the insurer can make policy changes without difficulty - the policy owner can make policy changes without difficulty - evidence of insurability is required with any change in premium
- the policy owner can make policy changes without difficulty
A material change in a modified endowment contract (MEC) results in - the contract becoming void - a new contestable period - the seven pay test, adjusted for cash value, applies again - a tax penalty
- the seven pay test, adjusted for cash value, applies again
Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true? - any benefits recieved will be tax free - the premiums paid by the employer are not tax-deductible - the specified benefit amount is a percentage of his wages - long-term policy benefits are not coordinated with social security benefits
- the specified benefit amount is a percentage of his wages
A business becoming incorporated is an example of risk _______. - reduction - severance - retention - transfer
- transfer
A hold-harmless clause if an example of risk - avoidance - retention - transfer - sharing
- transfer
Which of the following involves sharing an uncertain risk with another similar group? - transfer - speculative - operational - physical
- transfer
Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed? - arbitrage reinsurance - facultative reinsurance - excess reinsurance - treaty reinsurance
- treaty reinsurance
Which of the following BEST describes a "partial disability"? - becoming deaf in one ear - unable to perform all job duties due to a short-term disability - unable to perform one or more job duties - when a disability recurs from a previous illness or accident
- unable to perform one or more job duties
In an individual retirement account (IRA), rollover contributions are - subject to capital gains tax - subject to ordinary income tax - partially limited by dollar amount - unlimited by dollar amount
- unlimited by dollar amount
How do birthing centers reduce medical costs? - using gatekeepers - using network providers - using certified nurse midwives - using ambulatory care
- using certified nurse midwives
A policyowner with a terminal illness who sells his life insurance policy to a third party is called a - viable - viatical - viator - viatee
- viator
An insurance company's failure to enforce a contract's provision is called a(n) - waiver - warranty - assignment - concealment
- waiver
During the application process, a statement made by an applicant that becomes part of the contract is considered to be a(n) - warranty - representation - waiver - exclusion
- warranty
A contract is considered void in all of the following situations EXCEPT - when one party is a minor - when consideration is unequal - when consideration is incomplete - when agreement cannot be reached between parties
- when consideration is unequal
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity? - when the contract has been held for the period specified in the policy - for the entire length of the contract - never - when the cash value has reached a stated minimum amount
- when the contract has been held for the period specified in the policy
Which of the following is NOT an example of risk retention? - becoming aware of a risk and taking no action - self-insuring a given risk - deciding a business deal is risky but going through with it anyways - not doing a business deal after deciding it would be too risk
-- not doing a business deal after deciding it would be too risk
A licensee who is required to take continuing education must complete 24 hours of continuing education, which includes _____ hour(s) of ethics coursework. 1 2 3 4
3
ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date? 30 45 90 120
90
For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter - contract provisions - COBRA laws - eligibility standards - contribution percentages
COBRA laws
When using the needs approach for life insurance planning, lump sums may be created for all of the following reasons EXCEPT Final expenses Charitable donation Education Employee benefits
Employee benefits
The difference between a doctor's actual charges and the amount approved by Medicare is referred to as a(n) usual, reasonable, and customary amount excess charge deductible surplus fee
Excess charge
An officer for a corporation takes out numerous unsecured loans from the company's qualified retirement plan. Which of these rules is the plan in violation of? Key employee rule Top heavy rule Vesting rule Exclusive benefit rule
Exclusive benefit rule
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as Treaty Reinsurance Quotative Pooling Reciprocity Facultative Reinsurance
Facultative Reinsurance
Which tax is normally associated with an individual's death? Excise tax Consumption tax Federal estate tax Ad valorem tax
Federal estate tax
An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application? - Binding Receipt - Good Health Statement - Agent's Report - MIB Disclosure
Good health statement
For insurance purposes, similar objects which are exposed to the same group of perils are referred to as Homogenous perils Similiar exposure units Homogeneous exposure units Common hazards
Homogeneous exposure units
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT Acquire a statement of good health signature Gather the initial premium Review policy with applicant Leave a conditional receipt with client
Leave a conditional receipt with client
Which of these annuity features is meant to discourage withdrawals and exchanges? Annuitization Annual fees Withdrawal penalty Surrender charges
Surrender charges
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued? $0 $50,000 Under $50,000 initially, but decreases annually over time Under $50,000 initially, but increases annually until fully insured
Under $50,000 initially, but increases annually until fully insured
An annuity's accumulation period may continue after the purchase payments stop continue after the benefit payments start continue after the annuitant dies continue after the annuity has been surrendered
continue after the purchase payments stop