Guessed Exam Study Questions (Part 1) Flashcards
P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?
An immediate annuity
Which of these is a valid Tennessee regulation for referral fees?
The Commissioner may establish by rule a maximum amount for each referral
Additional coverage can be added to a Whole Life policy by adding a(n):
Decreasing term rider
The Commissioner notifies the association of an insolvent insurer no later than ___ days after receiving notice of the insurer’s insolvency.
3
The amount of coverage on a group credit life policy is limited to:
The insured’s total loan value.
Medicare Part A and Part B do NOT pay for:
Dental work
A life insurance policy that provides a policyowner with cash value along with a level face amount is called:
Whole Life
Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
Conversion
Under a Graded Premium policy, the premiums
are lower during the policy’s early years.
(A Graded Premium life policy provides for annual increases in premiums for a constant face amount of insurance during a defined preliminary period, with the purpose of making initial payments more affordable. This normally lasts for around five years and remains the same after that.)
T was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was noted on the application and the policy was issued shortly afterwards. How will the insurer likely consider this condition?
Insurer will likely treat as a pre-existing condition which may not be covered for one year.
A level premium indicates
the premium is fixed for the entire duration of the contract.
What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision?
Insured must be under a physician’s care.
(You must have a doctor certify that you meet the definition of disability as contained in the rider.)
Which type of policy is considered to be overfunded, as stated by IRS guidelines?
Modified Endowment Contract
(A policy that is overfunded to where it does not meet the 7-pay test is considered a Modified Endowment Contract.)
