Missed Exam Study Questions (Part 1) Flashcards
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid.
A(n) _____ _____ Life policy combines investment choices with a form of Term coverage.
Variable Universal
Which type of policy would pay an employee’s salary if the employer was injured in a bicycle accident and out of work for six weeks?
Business Overhead Expense
The health insurance program which is administered by each state and funded by both the federal and state governments is called
Medicaid
The Legal Actions provision of an insurance contract is designed to do all of the following, EXCEPT:
Protect the producer
L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will:
Adjust the death benefit to a reduced amount.
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?
Endowment at Age 70. (An endowment policy is characterized by cash values that grow at a rapid pace so that the policy matures or endows at a specified date (before age 100)).
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J’s age, as stated on the application five years ago, was found to be understated by ten years. Which of the following actions will the insurance company take?
The insurer will adjust the benefit to what the premiums paid would have purchased at the insured’s actual age.
Which of the following is NOT a requirement to sell, solicit, or negotiate Long-term Care insurance?
Complete a one-time 4-hour course on estate planning.
Whole Life insurance policies are contractually guaranteed to provide each of the following, EXCEPT:
Partial withdrawal features beyond a surrender charge period.
How are policyowner dividends treated in regards to income tax?
Interest on accumulations is taxed. (If the dividends exceed the total premium payments for the insurance policy, the excess dividends are considered taxable income.)
When is the face amount paid under a Joint Life and Survivor policy?
Upon death of the last insured.
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued.
(In a policy with a rear-end loaded provision, surrender charges are deducted when the policy is discontinued.)
When is the face amount of a Whole Life policy paid?
When the insured dies or at the policy’s maturity date, whichever happens first.”
In Tennessee, the definition of “individual” may include which of the following?
The individual’s legal representative.
