Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

EXAM CRAM - Life Agent Test Questions - Bonus Exam Questions > EXAM CRAM - Bonus Questions (p. 13- 17) > Flashcards

EXAM CRAM - Bonus Questions (p. 13- 17) Flashcards

1
Q

125. If a Term life insurance policy is renewable, the renewal provision usually states that:

A

a higher premium is payable at each renewal.

> NOTE <
Yearly renewable term (YRT) policies have no specified term but can be renewed each year without providing evidence of insurability.

  • The premiums rise from year to year as the insured person ages. There is no specified term, but the premiums can become prohibitively expensive as the policyholder ages, making the policy.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  1. Life insurers must include all of the following in their financial statements EXCEPT:
A

policy summary description.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Common life insurance policy riders include all of the following EXCEPT:

A

extended term.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

In a Group Life insurance policy, who are the parties to the Master Contract?

A

The insurer and the employer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which statement is TRUE regarding employer contributions to qualified plans?

A

They are tax deductible by the employer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which of the following statements about policy dividends is TRUE?

A

Insureds elect a Dividend option at the time of policy purchase.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which policy allows the insured to choose where the assets backing the cash value are invested?

A

Variable life.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Creditors have rights to life insurance policy proceeds when the beneficiary is the:

A

insured’s estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which distribution from an Annuity would be subject to a penalty tax?

A

A single payment made to a taxpayer who is age 55.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

134. The adjustments that insurers make to the cash value account in a Universal Life policy each time a payment is made includes all of the following EXCEPT:

A

subtract the policy surrender charges.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. The conversion privilege allows a terminating employee to convert:
A

Term insurance into permanent insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which government regulation prevents retirement plans from favoring highly compensated employees?

A

Nondiscrimination.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the difference between a conditional premium receipt and a binding premium receipt?

A

Only a binding receipt always provides insurance that is effective from the date the receipt is given.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A life insurance policy’s waiver of premium takes effect if an insured:

A

becomes totally disabled.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A 10-year certain Annuity with an installment refund is purchased.
The annuitant dies after receiving monthly payments for 5 years. How many remaining payments MUST the insurer make?

A

60 payments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Under a Group Life Insurance policy, acts of war and aviation are examples of:

A

policy exclusions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does the statement “Life insurance creates an immediate estate” mean?

A

The total death benefit is paid whenever the insured’s dies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which policy provision protects an insurer against a lawsuit before the insurer has had a reasonable opportunity to investigate a claim?

A

Legal actions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What factor determines the difference between Deferred and Immediate annuities?

A

When annuity benefit payments begin.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

144. How does the cost recovery rule apply when a life insurance policy is surrendered for its cash value?

A

The cost basis of the policy is exempt from taxation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

145. The components of determining policy premiums include all of the following EXCEPT:

A

Dividends.

22
Q

146. From lowest to highest, which is the CORRECT order of initial premiums for life insurance policies?

A

Modified premium, ordinary
life, single premium.

23
Q

147. Underwriters classify insurance risks as any of the following EXCEPT:

A

dividends risks.

24
Q

Under which group term life provision does an insurer make payments to the guardian of a beneficiary who is a minor?

A

Facility of payment.

25
Q

A beneficiary wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should
be chosen?

A

Interest option.

26
Q

Death benefits that are received by a beneficiary are generally:

A

exempt from federal income tax.

27
Q

The California Insurance Code requirements regarding the return of life or annuity contracts issued to seniors:

A

gives a senior at least 30 days to return specified life and/or annuity contracts for a full refund.

28
Q

When a family policy covers children, all of the following are true EXCEPT:

A

evidence of insurability is required to convert coverage for children to permanent insurance.

29
Q

An insurer’s request for an attending physician’s report MUST:

A

be accompanied by a copy of the signed authorization.

30
Q
  1. What is REQUIRED when an application reveals conditions that require more information?
A

The Attending physician’s statement.

31
Q

155.Which policy provision protects the policy owner from unintentional lapse of the contract?

A

Grace period.

32
Q

156.Under which policy provision can a policy be surrendered for its net cash value?

A

Nonforfeiture options.

33
Q

The policyowner, age 50, has been paying the premiums on his Whole Life policy for fifteen years. He needs the equivalent of one-third of his policy’s cash value for two years. He wants to continue to have the same amount of life insurance protection and he can afford to continue to pay the policy’s premium. Which of the following would appear to be his BEST course of action?

A

Use the policy loan provision to borrow money from the policy, but keep making the premium payments to keep the policy in force.

34
Q

In a 5-year vesting schedule, what percentage of employer contributions MUST be vested after 5 years of service?

A

100%

35
Q

Which of the following is a characteristic of nonqualified annuities?

A

Tax-deferred earnings.

36
Q

Which of the following is a correct statement about the premium payment modes? The total premium paid by a life policyowner for one policy year is:

A

greater if the premium is paid semiannually rather than annually.

37
Q

What is the limit of liability on a life insurance policy?

A

The face amount of the policy.

38
Q

Traditional comprehensive major medical plans include all of the following EXCEPT:

A

first-dollar coverage.

39
Q

163. Under a Disability Income insurance policy with an Own Occupation clause, an individual who can no longer perform the tasks of the job held at the time of injury is considered:

A

totally disabled.

40
Q

164. Part-time nursing care that follows a hospitalization and can be provided in a patient’s home is covered under:

A

Home Health Care benefits.

41
Q

165. What type of insurance can be purchased at airports, bus terminals, and railroad stations?

A

Travel Accident Insurance.

42
Q

During the solicitation of a long term care insurance rider, a life agent must consider all of the following EXCEPT:

A

the applicant’s Attending Physician statement.

43
Q

Vision care insurance usually covers all of the following EXCEPT:

A

Eye surgery.

44
Q

All of the following are optional group medical coverages EXCEPT:

A

Maternity.

45
Q

What is the cost of service from the Health Insurance Counseling Advocacy Program (HICAP)?

A

No charge.

46
Q

All of the following may opt for a self insured medical and disability plan EXCEPT:

A

Individuals.

47
Q

Which statement about Medicare is NOT correct?

A

Medicare Part C covers long-term care.

Medicare is the national health insurance program available to people age 65 or older, younger people with disabilities, and people with end-stage renal disease.

There are four parts to Medicare: A, B, C, and D.
Part A is automatic and includes payments for treatment in a medical facility.
Part B is automatic if you do not have other healthcare coverage, such as through an employer or spouse.
Part C, called Medicare Advantage, is a private-sector alternative to traditional Medicare.
Part D covers prescription drug benefits.

MORE:
https://www.investopedia.com/articles/personal-finance/070914/medicare-101-do-you-need-all-4-parts.asp

48
Q

In order to obtain Group Insurance without providing evidence of insurability, what do eligible individuals generally have to do?

A

Enroll within a specified eligibility period.

49
Q

173. The adult day care coverage level of a Long-Term Care policy provides for:

A

part-time nursing at a facility for elderly who live at home.

50
Q

174. Regarding the Health Benefit Exchanges, as created by PPACA, all of the following statements are true EXCEPT:

A

an individual enrolling in a Bronze level plan is not eligible for Reduced Cost-Sharing.

EXAM CRAM - Life Agent Test Questions - Bonus Exam Questions (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions