Exam 3 Flashcards
Which best describes pure life annuity settlement option
Pure life provides payments for as long as annuitant is alive
Pure life guarantees that all proceeds will be paid out
Benefits are paid for a fixed period of time specified when policy begins to pay
Pure life provides payments for as long as the annuitant is alive
Will only pay for as long as annuitant lives
An insured owns a 50000 whole life policy. At 47 insured decides to cancel policy and exercise extended term option for policy’s cash value which is 20000. Face amount?
20000
50000
Determined by insurer
50000
Face of term policy would be same as face amount provided under whole life policy
Which will be appropriate for parent buying policy on child
Third party ownership
Family term rider
Third party ownership
Which’s derives pure life annuity settlement
Pure life provides payments for as long as annuitant is alive
Pure life guarantees all proceeds are paid out
Pure life provides payments for as long as annuitant is alive
Because ins policy is a legal contract must require following except
Legal purpose
Conditions
Conditions
Part of policy structure
Insuring clause of a disability policy usually sates all except
Method of premium payment
Identities of ins company and insured
Method of premiums payment
Beneficiary wants guarante that all b energy’s paid from principal and interest would be paid for a period of 10 years before being exhausted
Fixed amount
Fixed period
Fixed amount
Federal fair credit act
Regulates consumer reports
Protects customer privacy
Regulates consumer reports
Gramm leach Bailey
Protect private customer info filed with fincnaicla institution
Allow ins companies access to medical info for underwriting purposes
Protect private customer info filed with fincnaicla institution
Which describes taxation of individual disabilit income ins premiums and benefits
Premiums are not tax deductible and benefits are not taxable
Premiums are not tax deductible but befnits are taxable
Premiums are not tax deductible and benefits are not taxable
Disability tax= not not
When policy is surrendered for its cash value
Policy can be converted to term coverage
Coverage Ed’s and policy cannot be reinstated
Policy can be converted to term coverage
Following qualified as dependent under dependent care flexible spending acct except
Jeremy had to have both legs amputated but has learned how to take care of himself and get around
Joe was paralyzed from neck down in a car accident and is cared for by his wife
Jeremy had to have both legs amputated but has learned how to take care of himself and get around
Death benefit in a variable universal life policy
Always equals face amount stated in policy
Depends on performance of separate account
Depends on performance of separate account
Purpose of settlement options
Provide beneficiary with income to end of beneficary’s life
Determine how death proceeds will be paid
Guarnatees built into policy
Determine how death proceeds will be paid
Which Nonforfeiture option provides coverage for longest period of time
Reduced paid up
Paid up option
Reduced paid up
All true re installments for fixed period annuity settlement EXCEPT
Is a life contingency option
Payments are not guaranteed for life
Is a life contingency option
Fp NOT contingency fpc
Name of clause included that eliminates benefit if insured dies a s result of war or while serving in military
Hazardous occupation
War or military service
War or military service
Which of following polices have irs required corridor gap between cash value and death benefit
Universal life option a
Universal life option b
Universal life option a
Corridor a please
Disability probationary period refers to the time
During which illness related disabilities ar excluded from coverage
Between the first day of disability and the actual receipt of payment fro the disability incurred
During which illness related disabilities ar excluded from coverage
Which statement accurately describes group disability income ins
There are no participation requirements for employees
The extent of benefits is determined by insured’s income
The extent of benefits is determined by insured’s income
Not cause the death benefit to increase
Payor benefit rider
Guaranteed insurability rider
Payor benefit rider
Minimum number of credits required for partially insured status
6 credits
40 credits
6 credits
Pi6
Two terms directly related with premium
Level or flexible
Renewable or convertible
Level or flexible
Benefit of choosing extended term as a onfortfeiture option
Allows for coverage to continue beyond maturity date
Has the highest amount of ins protection
Has the highest amount of insurance protection
Determined whether disability ins benefits are taxed
Contract provisions
Whether the premiums were tax deductible
Whether the premiums were tax deductible
Denied ins bc of info found on consumer report. Which requires company supple applicant with name and address of consumer reporting company
Consumer privacy act
Fair reporting act
Consumer privacy act
Dicrcp
Guaranteed renewable health ins policy allows
Policyholder to renew policy to a stated age with company having right to increase premiums on entire class
Insurer to renew the policy to a specified age
Policyholder to renew policy to a stated age with company having right to increase premiums on entire class
All correct about equity index annuities except
Annuitant receives fixed amount of return
They have a guaranteed minimum interest rate
Annuitant receives as fix amoun of return
Eifar
Guaranteed renewable disability ins policy
Renewable at insured’s option to a specified age
Guaranteed to have a level premium for the life of the policy
Renewable at insured’s option to a specified age
Gr=sa
Insurer issues an individual health ins policy that is guaranteed renewable insurer agrees
To renew tha policy until the insured reaches 65
To renew the policy indefinitely
To renew tha policy until the insured reaches 65
Concerning dividends all true except
Dividend amounts are guaranteed in the policy
Lower ins company costs generate higher dividends
Dividend amounts are NOT guaranteed in the policy
Correct regarding group ins
Employer is policyholder
Each employee receives a policy
Employer is policyholder
What is purpose of disclosure statement in life ins policies
To explain features and benefits of proposed policy to consumer
To protect agents and insurers against lawsuits
To explain features and benefits of proposed policy to consumer
Nature of aleatory
Exchange of unequal values
Only one of parties being legally bound by contract
Exchange of unequal values
Ownership provision entitles the policyowner to do all except
Set premium rates
Rec a policy loan
EXCEPT Set premium rates
Which is not true re life with guaranteed minimum annuity settlement option
Does not guarantee that entire principal amount will be paid out
Payments can be made in installments as a single cash refund
Does not guarantee that entire principal amount will be paid out
IT DOES
Gmadng
Which Nonforfeiture option does company pay surrender value and have no obligations
Extended term
Cash surrender
Cash surrender
Pure life income is payable by company
Only for life of annuitant
For as long as either annuitant or named beneficiary is alive
Only for life of annuitant
Which correct re relationship between Medicare and hmo
Hmo may pay for services not covered by Medicare
Hmo do not pay for services covered by Medicare
Hmo may pay for services not covered by Medicare
Level term ins provides a level death benefit and a level premium during policy; if renewals at end of specified period of time policy premium will be
Adjusted to insured’s age at time of renewal
Based on issue age of insured
Adjusted to insured’s age at time of renewal
All true re decreasing term policy except
Death benefit is 0 at end of policy term
Payable premium amount steadily declines throughout duration of contract
Payable premium amount steadily declines throughout duration of contract
Which is not true re variable universal life policy
Cash values are not guaranteed
Death benefit is fixed
Death benefit is NOT fixed
Vuldb
All true about group disability income ins except
Coverage applies both on and off job
Longer waiting period lower premium
Coverage applies both on and off the job
Advantage of reinstating policy instead of applying for new one
Cash values have gained interest while policy was lapsed
Original age is used for premium determination
Original age is used for premium determination
If consumer requests additional information concerning an investigative consumer report how long does insurer or reporting agency have to comply
5 days
3 days
5 days
In all health care plans under Aca how many essential benefit categories are there
10
5
10
Hmo cancelled for non payments ..how long of notice must insurer give insured
30 days
45 days
45 days
Which of following health ins plans does not require insured or pay deductible
Hmo
Major medical
Hmo
Publishes intimidating brochures. Which best describes
Illegal under any circumstances
Illegal until d endorsed by guaranty association
Illegal under any circumstances
How much notice provided to insurer prior to suspending insuer’s certificate of authority
10 days
30 days
10 days
Completed 35 hours of continuing education in one renewal period how many hours will have it complete in next renewal period
24
35
24
Which would be beneficiary in credit life ins
Borrower
Creditor
Creditor