Part 2 Final Exam Flashcards
1
Q
P Is a major medical policyowner Who is hospitalized as a result of injuries from participating in a carjacking. How will the insurer handle this claim?
A. Claim will be denied and policy terminated
B. Claim will be paid
C. Claim will be denied
A
Claim will be denied since illegal act
2
Q
What type of writer would be added to an accident (AD&D) health policy if policy owner wants to ensure the policy will continue if he/she ever becomes totally disabled?
A. Accidental death and disbursement Rider
B. Disability income rider
C. Waiver of premium rider
A
Waiver of premium rider
Policyowner wants to ensure policy will continue if they become totally disabled
3
Q
Which accident and health policy provision addresses pre-existing conditions?
A. Time limit on certain defenses
B. Payment of claims
A
Time Limit on certain defenses
Provision limits During which an insurer can deny a claim based on pre-existing
4
Q
Which statement about a whole life policy is correct?
A. Beneficiary much maybe change only with the consent of the premium payor
B. Death benefits can be adjusted
C. Cash value may be borrowed against
A
Cash value may be borrowed against
5
Q
With accidental death and dismemberment policies, what is the purpose of the grace period?
A. Gives the policy owner additional time to pay over due premiums
B. Gives policy owner additional time to provide proof of loss
A
Gives the policy owner additional time to pay overdue premiums
6
Q
Which term accurately defined the underwriters assessment of information on life insurance application?
A. Insurable interest
B Risk classification
A
Risk classification
7
Q
The consideration clause in life insurance contains what pertinent information?
A. Offer and acceptance
B. Summary of benefits
C. Amount of premium payments and when they are due
A
Amount of premium payments and when they are due
8
Q
Automatic premium loan provision is designed to?
A. Avoid a policy lapse
B. Allow a policy owner to take out additional coverage
A
Avoid a policy lapse
Insurance Co can deduct overdue premiums from the insured cash value by the end of the grace period.
9
Q
Basic medical expense insurance:
A. Normally has a deductible and coinsurance
B. Has lower benefits limits than Major medical
A
Has lower benefit limits and major medical insurance
10
Q
Insurance agent is in violation of the rules governing advertisement of life insurance and annuities, if the agent takes the following action during a sales presentation?
A. Asked prospects for referrals
B. Analysis another insurance company‘s policy
C. There’s a cost of two similar policies
D. Refers to guarantee policy dividends
A
Refers to guarantee policy dividends
11
Q
Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? A. Administrative service-only plan B. Commercial insurer C. PPO D. HMO
A
Commercial insurance Companies
12
Q
Legal Actions provision of insurance contract is designed to do all, except:
A. Provide the insurer adequate time to research a claim (60 days)
B. Protect the insured from having claim research delayed
C. Give the insurance guidelines for pursuing legal action against insurer
D. Protect the producer
A
Protect the producer
13
Q
The underlying concept regarding level premiums?
A. The early years or charge more than what is needed
B. The early years are charged less than what is needed
C. Level premiums build cash value quicker in the early years
A
The early years are charge more than what is needed
14
Q
Which life insurance rider allows the applicant to have excessive coverage?
A. Waiver of premium rider
B. Guaranteed insurability rider
C. Term rider
A
Term rider
15
Q
If an Insurance company it is a Disability Income policy that cannot cancel or increase premiums, that type of renewability policy is called:
A. Noncallable
B. Guaranteed renewable
A
Noncallable
16
Q
How long does the coverage remain on a limited-pay life policy ?
A. Age 100
B. At discretion on the insurer
C. Age 65
A
Age 100
limited-pay where Insured is covered his entire life, premiums are paid only for a limited time
17
Q
Periodic health claim payments Must be made at least ?
A. Monthly
B. Weekly
C. Annually
A
Monthly
18
Q
What kind of insurance starts out as temporary coverage but then later modified to permanent coverage without evidence of insurability?
A. Limited pay whole life
B. Decreasing term
C. Convertible term
A
Convertible term
19
Q
Which features of a group term life policy enables an
Individual to leave the group and continue his insurance without providing evidence of insurability?
A. Owners rights clause
B. Conversion privilege
A
Conversion privilege
20
Q
What is face amount paid under Joint Life and survivor policy?
A. Upon death of the first insured
B. Upon death of the last insured
A
Upon death of a last insured pays benefits
21
Q
A father who dies within three years after purchasing a life insurance policy on his infant daughter can have the policy premiums waved under which provision?
A. Payor provision
B. Accelerated benefits provision
A
Payor provision
When adult is the premium payer then premiums are waived on children
22
Q
Whole life insurance policy endows when:
A. Premiums paid equal the death benefit
B. Cash value equals the death benefit
A
Cash values equal the death benefit
23
Q
This policy Best identifies one in which cash value may fluctuate to reflect changes regarding mortality cost, interest, and expense factors:
A. Universal life
B. Endowment life
C. Graded premium whole life
A
Universal life
24
Q
T wants to be assured $10,000 in available in 10 years to replace a roof on his house. What kind of $10,000 policy to purchase?
A. Ten-year endowment
B. Interest sensitive whole life
A
10 year endowment
25
Jay is 35 years old looking to purchase a whole life insurance policy. Once a policy that will provide the most rapid growth of cash value?
A. 20-pay life
B. Increasing term to 65
20 pay life
| Shorter the pay period, the faster the cash value grows!
26
These elements are a variable life policy?
A. a Fixed & Level premium
B. Insurer assumes the investment risk
C. Rate of returns are guaranteed
A fixed and level premium
27
Investment gains from a universal life policy go towards:’
A. Death benefits
B. Dividends
C. The cash value
The cash value
28
This life policy contains a monthly mortality charge as well as self-directed investment choices?
A. Variable universal life
B. Universal life
Variable Universal life
29
This type of life insurance Incorporates flexible premiums and adjustable death benefit ?
A. Modified whole life
B. Universal life
Universal life
30
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
A. Family maintenance policy
B. Family income policy
C. Survivor policy
Family maintenance policy
31
What kind of special need would a policyowner require with an Adjustable life policy?
A. Level premiums
B. Flexible premiums
C. Flexible nonforfeiture
Flexible premiums
32
Which statement is true regarding variable whole life policy?
A. A minimum guaranteed death benefit is provided
B. Combination of endowment and increasing term
C. Premiums and benefits are variable
D. It has guaranteed dividends
A minimum guaranteed death benefit
33
A policy owner exchange is a term policy for a whole policy without providing proof of good health, it is?
A. Extended term option
B. Conversion provision
Conversion provision
34
On August 6, D submitted an application for $50,000 life insurance but didn’t pay the initial premium. On August 18, D went to the doctor complaining of chest pains and test forgiven. The life policy was delivered to the producer on August 20 and D explains what had recently taken place with the doctor. What action should producer take?
A. Collect initial premium along with signed state health statement
B. Explain
to applicant for policy is no longer in effect due to health condition
C. Collect initial premium and leave a binding receipt.
Collect initial premium along with a sign health statement.
35
What action should a producer take if the initial premium is not submitted with application?
A. Forward the application to the insured after giving applicant binding receipt
B. Forward application to the insurer without the initial premium.
Forward the application to the insurer without the initial premium.
Go ahead and submit application however policy will not become valid until initial premium is collected
36
T apply for life insurance and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is last. Assuming that T is an acceptable risk, what item is given to T ?
A. Binding receipt
C. Conditional receipt
Conditional receipt
Binds the insured to coverage as the date of the application or examination provided the proposed insured is an acceptable risk
37
On delivering of a policy, a signed statement of good health is typically requested if?
A. Condition receipt was given to applicant
B. Application was submitted without the initial premium
Application was submitted without the initial premium
38
When does a life insurance contract become effective if the initial premium is not collected during the application process?
A. When insurer receives initial premium from producer
B when producer delivers the policy & collect premiums
When producer delivers policy& collects premiums
39
Information obtained from a phone conversation to the proposed insured can be found on this report?
A. Agents report
B. Inspection report
Inspection report
| May include phone conversation
40
What time must a policy owner have insurable interest on the insured in order for the policy to be valid:
A. After contestable period
B. At the time of application
At the time of application
41
Which correctly explains the actions and agent should take if a customer Wants to apply for an insurance policy?
A. Complete the application over the phone with a customer, signed the application for the customer then sent the application often insurance company
B. Complete the application and review the information with the customer prior to obtaining the customer signature, then send the application optive insurance company
Complete the application and review the information with the customer prior to obtaining the customer signature, then send the application often insurance,.
42
Which factors are taken into consideration when a insurance company determines the premium rate for whole life on applicant?
A. Source of income
B. Risk classification
Risk classification
43
An underwriter determines that an applicant risk should be re-categorized due to a health issue. Policy maybe issued with:
A. Delayed effective date
B. Exclusion for medical condition
Exclusion for medical condition
44
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Which of these factors do not play a role in the underwriting of life insurance policy?
A. Avocations
B. Credit status
C. Occupation
D. Marital status
```
Marital status
45
ABC insurance comp excepted a life insurance application which could contains unanswered questions. The company takes the applicant part of the life contract. The insurer has
A. Waived one of its legal rights
B. Issued a voidable policy
Waved one of its legal rights
46
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
A. When the policy is issued
B. When the conditions of the receipt are met
When the conditions of the receipt are met
47
M has insurance policy also has outstanding policy loan at the time of his death. The insurer will deduct outside the outstanding loan balance from:
A. Cash value
B: policy proceeds
Policy proceeds
48
N covered by Term Life policy & doesn’t make required premium payment due August 1. N dies September 15. What action insurer take?
A. Claim will be denied
B. Claim will be paid in full
Claim will be denied
49
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
A. 20 year paid up
B. Decreasing term
C. Endowment
Decreasing term
50
Which plan is intended to be used by a sole proprietor and the employees of the business?
A. SIMPLE plan
B. SEP plan
C. Keogh plan
Keogh plan
51
Qualified long-term care policies may take into consideration applicants pre-existing conditions for a maximum of ___ months prior to effective coverage date?
A. 6
B. 12
C. 24
6 months
52
Individual has major medical policy with 5000 deductible and 80/20 coinsurance clause. How much will the Insured have to pay if total covered medical expenses are $15,000?
A. $2000
B. $5000
C. $7000
$7000
5,000 + 20% remain bill =$7000
53
Insurer must provide an insurance claim forms within —- days after receiving notice of loss?
A. 10
B. 15
C. 20
15
54
K have a Disability income policy that does Not thrive benefits for losses occurring as a result of his employment. What kind of coverage?
A. Worker’s Compensation coverage
B. occupational coverage
C. Non-occupational coverage
Non-occupational coverage
55
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Common disaster clause provides that both the insured and the soul named beneficiary were to die in a common accident, which is true?
A. This clause provides a payment of proceeds to the insured’s estate
B. This class provides the payment to proceeds to the beneficiaries esstate
```
Provide the payment of proceeds to the Insurer’s estate
56
Quarterly premium payments increase the annual cost of insurance because?
A. Interest to the insurer is increase while administrative cost are decreased
B. Interest to the insurer is decreased by the administrative costs are increased
Interest to the insurer is decreased by administrative cost are increased
Higher the frequency of payments, higher the premiums
57
Provision that defines whom the insurer will pay benefits is:
A. Entire contract
B. Proud of loss
C. Payment of claims
Payment of claims
58
This type of organization are pre-paid group health plans, where the members paying advance for services of participating physicians and hospitals that have agreements?
A. PPO
B. HMO
HMO
59
In Georgia, monthly premium accident and sickness insurance policies must provide a grace period of at least?
A. Seven days
B. 10 days
C. 31 days
10 days
60
```
This service is not covered under hospitalization expense policy?
A. Daily room and board
B. Surgeon’s fees
C. Intensive care
D. Miscellaneous expenses
```
Surgeon’s fees
61
When does a guaranteed insurability Rider Allow the insured to buy additional coverage?
A. Future date specified in the contract but no evidence of insurability required
B. Anytime my policy is active
Add future date specified in the contract with no evidence of insurability required
62
P is a teacher who is injured in a car accident and cannot work. She’s not receiving monthly benefits due to the accident. Which policy does he have?
A. Major medical
B. Identity
C. Disability income
Disability income
63
G is an accountant that has 10 employees. He gets an accident and becomes disabled. What policy should he have?
A. Business overhead expense
B. Key person disability insurance
Business overhead expense insurance.
Self-employed business owners design to inverse a business overhead in the event of the business owner being disabled. To cover day-to-day operations, mortgage rent, equipment
64
What is being delivered during a policy delivery?
A. Binding receipt to proposed insured
B. Application and initial premium to the insurer
C. Insurance contract to the proposed insured
Insurance contract to the proposed insured
65
W is key employee at ABC Incorporated. If key employee life insurance is purchased on her life which of these statements is true?
A. ABC is the policy owner, W is the insured and ABC is a beneficiary
B. C is the policy owner and the insured, ABC is a beneficiary
ABC is a policy owner, W is the insured, ABC is a beneficiary
66
K agent has induced an insured through mispresentation to surrender an existing insurance, he is guilty of?
A. Coercion
B. Twisting
C. Rebating
Twisting
67
This plan include hospice benefits?
A. Group life plans
B. Workers compensation
C. Managed care plans
Managed care plans
68
Which disqualifying event will circumstances end the COBRA coverage?
A. Employee becomes uninsurable
B. Employee moves headquarters to another state
C. Employee becomes permanently disabled
D. Our group health plans are terminated by the employer
Our group health plans are terminated by the employer
69
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Insurance contract are known as____ because certain future conditions or acts must occur before any claims will be paid.
A. Aleatory
B. Consideration
C. Unilateral
D. Conditional
```
Conditional
70
E buys $50,000 worth of permanent protection on his spouse and $25,000 worth of 10 year term coverage on him, the applicant should purchase?
A. Whole life with extended term
B. Whole life with payor benefit
C. Whole Life with other insured rider
Whole life with other insured rider
71
IRA rollover contributions are:
A. Subject to ordinary income tax
B. Partially limited by dollar amount
C. Not limited to a dollar amount
Not limited by dollar amount
72
Adjustable life policy characteristics are all but:
A. Face amount can be adjusted using policy dividends
B. Adjustable premiums
C. Adjustable premium payment period
D. Combination of term and whole life insurance
Face amount can be adjusted using policy dividends
73
T took $50,000 life insurance policy with accidental death and dismemberment rider. 5 years later, T commit suicide how much will the insurer pay?
A. Nothing
B. $50,000
$50,000 because it’s past the suicide clause of 1 to 2 years
74
With disability income insurance, insurance company may limit the monthly benefit amount to prospective policyholder because:
A. Gross income at the time of purchase
B. Occupation the time of purchase
C. Gross income at the time of disability
Gross income at the time of purchase
75
S owns a whole life policy with a guaranteed insurability option that allows them to purchase without evidence of a insurability, stated amounts of;
A. Additional term life at specified time
B. Additional whole life coverage at any time
C. Additional whole life at a specified time
Additional whole life at specified times
76
P and Q are married and have three children. P is primary beneficiary on Q accidental death and dismemberment policy, Q sister is the contingent beneficiary. P, Q, and are involved in a car accident and cute and are killed instantly. Accidental death benefits will be paid to:
A. Q estate
B. P and Q estate
C. P only
P only
| Because P survive the accident and primary beneficiary
77
Ownership clause in a life insurance policy states:
A. Who the owner is and what rights the owner is entitled to
B. Who the beneficiary is and what rights of beneficiary is entitled to
Who is the policy owner is and what eights the policy owner is entitled to
78
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401 k plan provides participants;
A. Salary- deferral
distributions
B. Tax free contributions
C. Salary deferral contributions/options
```
Salary deferral contributions
79
Which statement is correct about accelerated death benefits?
A. Those on Social Security disability automatically qualify
B. This provision is usually provided with an increase in premium
C. Must have a terminal illness to qualify
Must have a terminal illness to qualify
80
Who is injured in an automobile accident and becomes totally disabled. How many months is he be disabled to apply for social Security disability benefits?
A. 4
B. 5
C. 6
5 months
81
When funds are shifted straight from one IRA to another IRA, what percentage of taxes withheld?
A. 10%
B. 20%
C. None
None
82
Young teacher has two children and owns a whole life policy. If the teacher wants an increasing death benefit to protect against inflation, teachers should select which dividend option?
A. Paid-up additional insurance
B. Accumulated interest
C. Reduce premiums
Paid- up
| additional insurance
83
How would a contingent beneficiary receive the policy proceeds in an accidental death and dismemberment policy?
A. If primary beneficiary is a minor at the time of insured death
B. If the primary beneficiary dies before the insured
If primary beneficiary dies before the insured
84
Life insurance policy would be considered wavering contract without:
A. Insurable interest
B. Premium payment
C. Constructive delivery
Insurable interest
85
This policy is characterized by flexible premium and death benefit and allows the policy owner controlled investment aspect?
A. Universal life
B. Variable life
C. Variable Universal Life
Variable universal life
86
Return of premium insurance policy is:
A. Whole life and increasing term
B. Interest sensitive
C. Variable life
Whole life and increasing term
87
In Georgia, how long is “free look” period?
A. 10 days
B. 20 days
C. 30 days
10 days
88
Option that provides additional death benefit for a limited amount of time at lowest cost is
A. Term rider
B. Accidental death and dismemberment rider
C. Family rider
Accidental death and dismemberment rider
89
Major medical benefits are true, except?
A. The deductible can be expressed as a fixed dollar amount
B. They benefit Begins only after a specified amount of expense has accrued
C. Benefits are generally eXpress as a percentage of eligible expenses
D. Benefits have no maximum limit
Benefits have no maximum limit
90
Short term medical expense policies are:
A. Non-cancelable
B. Conditionally renewable
C. Nonrenewable
Nonrenewable
91
Group long-term care policy premiums are typically deducted from the employees income and?
A. Are approximately the same premium as compared to individual long term care coverage
B. Are less costly as compared to individual long-term care coverage
Are less costly as compared to individual long-term care coverage
92
According to time limit of certain defenses provision an individual health insurance policy, nonfraudulent miss statements first become incontestable:
A. Two years from the date the policy was issued
B. Two years from the date of the first claim
C. Two years from the date the policies was delivered
Two years from the date of the policy was issued
93
P died five years after purchasing a life policy. While investigating the claim, and insured discovered material representations made by P during application process. Which of these actions but the insurer take?
A. Beneficiary will be denied the claim B. Beneficiary will be denied and refine all paid premiums
C. Beneficiary will be paid the death benefit
Beneficiary will be paid the death benefits
| Because the incontestable clause prevents the insured from canceling the contract with misrepresentation
94
Optionally renewable health policy, the insurer may:
A. Renew the policy with only the insured’s consent
B. Renew the policy whenever they please or determine or not renew it
C. Renew the policy annually and determine whether or not to renew it
Review the policy annually and determine whether or not to review it
95
Credit policies are issued as what type of insurance?
A. Whole
B. Term
Term
| Decreasing term for loan balance
96
Disability income policy owner suffers a disability which was due to the same cause as a previous disability. Both disabilities occurred within the five months period. The insurer may cover second disability without elimination period under:
A. Partial disability provision
B. Recurrent disability provision
Recurrent disability
97
Traditional IRA distribution start:
A. Age 59 1/2
B. 65
C. April 1st of year the following the year the participant attained age 70 1/2
April 1st the year following The year the participant age is 70 1/2
98
W age 70, withdraws cash from a straight life annuity. What’s the transaction:
A. Income for a fixed period Stated in the contract
B. Income that cannot be outlived by the owner
C. Inflation protector
Income that cannot be outlived by the owner
99
Which statement is true regarding a minor beneficiary?
A. normally,a guardian is required to be appointed in the beneficiary clause of the contract
B. Minor is entitled to receive the death proceeds immediately
A guardian is required to be appointed in the beneficiary clause of the contract
100
When beneficiary’s requires his consent when a change of beneficiary is attempted by policyowner?
A. Revocable beneficiary
B. Irrevocable beneficiary
Irrevocable beneficiary
101
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Disability policies do not pay for disabilities arising in the situation?
A. Accident
B. Negligence
C. Sickness
D. War
```
War
102
Which settlement option pays a stated amount to a new it but no residual value to a beneficiary?
A. Fixed period
B. Fixed amount
C. Life income
Life income
103
S file a written proof of loss for a disability income on September 1. Insurance company did not respond to the claim. S can take legal action against insurer beginning?
A.,September 21
B. November 1
November 1
| Must wait 60 days before legal action can be taken
104
Benefits under a disability-buyout policy?
A. Taxable to beneficiary
B. Payable to the company or another shareholder
Payable to the company or another shareholder
105
Premiums paid by employer for his employee’s Group life insurance are:
A. Tax- deductible to the employer
B. Taxable income to the employee
Tax-deductible to the employer
106
What type of employee welfare plans are not subject to ERISA regulation:
A. Church plans
B. Corporate
C. Major medical plans
Church plans
107
Accumulated interest earned on dividends from insurance policy is true?
A., is tax-deductible
B. Taxed as capital gains
C. Taxed as ordinary income
Taxed as ordinary income
108
P purchase $50,000 whole life in 2005, one of the questions on the application asked if he engage the scuba diving to which he answered no. Policy is issued with no Skube exclusion. In 2011 he died from a scuba related accident. Insurer pays beneficiary?
A. Nothing claim is denied
B. $50,000 minus any outstanding policy loan
C. $100,000 cause of death was an accident
$50,000 minus outstanding policy loan. Because death is past the contestable.
109
T has annuity guaranteed income for the rest of his life. Contract guarantees that if he dies before receiving payments for 20 years, the remaining payments Will be paid to his son the balance of 20 years. What Annuity?
A. Fix certain
B. Life annuity with period Certain
C. Installment refund
Life Annuity with period certain
110
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Underwriting process involves all of these except:
A. Credit report
B. Risk classification
C. Application
D. Policy loan
```
Policy loan
111
J major medical policy has a $2000 deductible and an 80/20 coinsurance clause. If J is Hospital And received the bill for $10,000, J would pay?
A. $2000
B. $8000
C. $3600
$3600
| $2000 + 20% remaining bill = $3600
112
H was treated for an element two months prior to applying for a health insurance policy. The condition was noted on the application and the policy was issued shortly after. How will the insurer likely consider this condition?
A. Insurer will permanently exclude the condition from the policy
B. Insurer will likely treat as a pre-existing condition which may not be covered for one year
Insurer will likely treat as a pre-existing condition which may not be covered for one year
113
66 year old is covered under a group health plan and injuries herself while walking in the park, what coverage would be considered primary?
A. Medicare
B. Long-term care
C. Her Group health plan
Her group health plan
114
N is 40 years and would like to retire at age 70. He’s looking to buy life insurance with level premiums, permanent protection, and be paid-up at retirement?
A. Term to age 70
B. Adjustable life
C. 30 pay life
30 pay life
| Cash value increases faster and the premiums are fixed (level)
115
In major medical expenses, what is the intent of stop loss provision?
A. Limit insurer’s liability
B. Limit the Insured’s out of pocket medical expense
Limit insured’s out of pocket expenses
116
Insured must notify the insurer have a medical claim how many days after the accident?
A. 10
B. 20
C. 40
20 days
117
At age 45, hey withdrawal is $50,000 from a qualified profit sharing plan and then deposit into a personal savings account. The action would result in:
A. Only 10% currently on the withdrawal of funds
B. Income tax and 10% penalty assessed with withdrawn of funds
Income tax and 10% penalty assessed upon funds withdrawn
118
Family income policy is a combination of whole life and?
A. Decreasing term
B. Level term
Decreasing term
119
This annuity pays benefits on units rather than specific dollars?
A. Variable annuity
B. Deferred annuity
Variable annuity
120
Health reimbursement arrangement (HRA) is all but:
A. Employer funded the HRA entirely
B. HRA can be offered with other health plans
C. HRA reimbursement for eligible medical expenses
D. Employee funded
Employee funded
121
Which policy would pay an employees salary if the Employer was injured in a bicycle accident and out of work for six weeks?
A. Disability income
B. Key employer disability
C. Business overhead expense
Business overhead expense
| Covers fixed business expenses in the event the owner unable to work
122
Best defines usual, customary, and reasonably charges:
A. Maximum amount an employer can contribute to a contributor health plan
B. Maximum amount considered eligible for reimbursement by insurance company under a health plan
Maximum amount considered eligible for reimbursement by an insurance company under health plan
123
IRA owner can start making with drawls and Not subject to tax penalty beginning age?
A. 70 1/2
B. 65
C. 59 1/2
59 1/2
124
This policy is one in which cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors?
A. Universal life
B. Modify whole life
Universal life
125
Disability income policy, has this clause that acts as a deductible?
A. Elimination period
B. Waiver period
Elimination period
126
After agent takes individual Disability income application, collects premium and issues perspective ensures conditional receipt. The next step insurance company takes:
A. Determines applicant insurable by investigating family Heath history
B. Determine if the applicant is an acceptable risk by completing standard underwriting procedures
Determine if the applicant is an acceptable risk by completing standard and a writing procedures
127
Interest sensitive whole life characteristic:
A. Premium payments can vary
B. Interest rates never determine cash value
Premium payments can vary.
128
This document must accompany an Application that initiate the replacement of an existing life insurance policy?
A. Signed statement by the Applicant regarding the replacement
B. Find replacement statement from the replacing insurance company
A signed statement by the applicant regarding the replacement
129
What is consideration given by the insurer in the consideration clause?
A. Promise to accept insurer’s assignment of benefits
B. Promise to pay the death benefit to the named beneficiary
Promise to pay a death benefit to the named beneficiary
130
How long does coverage normally remain on limited-pay life?
A. 65
B. 100
C. When premium stop
100
| it’s a life policy , premiums are paid to a limited age
131
Annuity that represents the largest possible monthly payment to annuitant?
A. Installment refund
B. Straight life annuity
Straight life annuity
132
Engineering firm that would suffer financially from the death of the project manager would be:
A. Buy and sell arrangement
B. Key person life policy
Key person life policy
133
Reason to purchase life insurance on the life of a minor but this one?
A. Provide funds for final expenses wee to die
B. Provides living benefits for child’s college education
C. Provides child with insurance now in case child becomes uninsurable later
D. If both parents were to die it would provide death benefits to child
If both parents were to die and provide death benefits to the child
134
If annuity is terminated prior to the beginning of income payment., The contract owner receives:
A. All premiums paid up to the date of termination
B. No refund of money
C. Contract surrender value at that time
Contract surrender value at that time
135
Group insurance policies are written as
A. Increasing term
B. Group whole life
C. Annually renewable term
Annually renewable term
136
Life insurance that covers and insured’s whole life with level premiums paid over a limited time is called:
A. Adjustable life
B. Limited pay life
Limited pay life
137
This policy requires an agent to register with national Association of securities dealers?
A. Universal life
B. Interest sensitive whole life
C. Variable life
Variable life
138
Which characteristic is associated with large group disability income policy?
A. No waiting periods
B. No elimination period
C. No limits of benefit/probationary period
D. No medical underwriting
It doesn’t have medical underwriting
139
Qualified profit-sharing plan design to:
A. Allow key employees to participate in profits of company
B. Allow employees to participate in profits of the company
allow employees to participate in the profits of the company
140
Surrender charge deducted in a life policy with a rear-ended loan provision?
A. Deduct from death benefits
B. Deducted when the policy is discontinued
Deducted when the policy is discontinued
141
Type of renewability guarantees premium rates and renewability?
A. Guaranteed renewable
B. non-cancelable
Noncallable
142
This policy combines investment choices with a form of term coverage?
A. Universal
B. Variable Universal Life
C term
Variable universal life
143
Accident and Health policyowner May Not do?
A. File a covered claim
B. Cancel coverage
C. Adjust the premium payments
Adjust the premium payment
144
Policy provision that entitles The insurer to establish conditions the insured must meet while a claim is pending:
A. Grace periods
B. Time limit on certain defenses
Time limit on certain defenses
