Introduction Flashcards
Which of the following would be considered a pure risk?
Jane’s house burns down.
An exclusive agent:
Is appointed by one company.
A secretary purchases a disability policy with a change of occupation provision. She later becomes a lion tamer which of the following is correct?
The company may reduce the benefit.
The settlement option in which the beneficiary receives a prescribed amount consisting of principle and interest until the entire amount is exhausted is referred to as:
Fixed amount.
A provision of the policy that describes how and when a benefit will be paid is the?
Insuring Clause
If Sam elected the extended term option:
The new extended term would be the same amount as the original policy lasting for a period of time that the cash surrender value will support.
If a medicare supplement that has been in force for over six months is replaced, the new supplement cannot exclude pre-existing conditions for six months.
True
One way to reduce an estate is to make gifts of money. Which of the following is correct?
A husband and wife each may make gifts of money up to $14,000 yearly each, to whomever they choose.
Which of the following is NOT used in determining disability insurance rates?
Mortality
What is a blackout period?
A period of time when a widow of a fully insured worker cannot receive benefits under Social Security.
Which of the following is/are true about a PPO? 1.) PPOs provide health care to subscribers, 2.) PPOs can be either open panels or closed panels, 3.) PPO doctors are paid on a free-for-service basis, 4.) PPOs allow for more flexibility of choice of physicians than HMOs.
All of the choices
A table that reflects the average number of disabilities due to sickness and accidents at various ages is a:
Morbidity table
Which act stated that the federal government would not interfere with the states if they did an adequate job in regulating the insurance industry?
McCarran Ferguson Act
Which of the following is incorrect about a variable annuity?
The number of annuity units will decrease as payments are made to the annuitant.
Which of the following statements are true about HICAP? 1.) It provides one-on-one counseling for seniors, 2.) It does not endorse or sell any form of insurance product, 3.) It requires a fee based on a sliding scale according to ability to pay, 4.) The counselors help seniors compare and understand Medicare supplement insurance policies.
1.) It provides one-on-one counseling for seniors. 2.) It does not endorse or sell any form of insurance product, 4.) The counselors help seniors compare and understand Medicare supplement insurance policies.
Benefit amounts under disability income policies:
Are limited and defined in terms of the insureds earnings.
When entering a contract, any doubt or ambiguity found in the document by the person to whom it is offered will be construed against the party who drew up the contract. This is because an insurance policy is a contract of:
Adhesion
Which of the non-forfeiture options will provide the longest period of protection?
Reduced paid up
A joint life policy written as a first to die might be used for which of these situations?
Business partners who wish to be able to buy out a deceased partner.
If a disability policy has a provision that is in conflict with state law:
The provision in conflict with state law will be amended to conform to sate law.
A contract in which one seeks to indemnify another against loss, damage or liability is a definition of:
Insurance
A foreign insurer is:
An insurer organized under the laws of any jurisdiction outside the State of California, whether or not admitted
Which of the following is a true statement about HICAP?
HICAP is a free service.
