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Georgia Insurance License > Part 2 Final Exam > Flashcards

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

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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

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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

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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

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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

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6
Q

Which term accurately defined the underwriters assessment of information on life insurance application?
A. Insurable interest
B Risk classification

A

Risk classification

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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17
Q

Periodic health claim payments Must be made at least ?
A. Monthly
B. Weekly
C. Annually

A

Monthly

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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

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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

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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

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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

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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

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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

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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

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25
Q

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

A

20 pay life

Shorter the pay period, the faster the cash value grows!

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26
Q

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

A fixed and level premium

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27
Q

Investment gains from a universal life policy go towards:’
A. Death benefits
B. Dividends
C. The cash value

A

The cash value

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28
Q

This life policy contains a monthly mortality charge as well as self-directed investment choices?
A. Variable universal life
B. Universal life

A

Variable Universal life

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29
Q

This type of life insurance Incorporates flexible premiums and adjustable death benefit ?
A. Modified whole life
B. Universal life

A

Universal life

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30
Q

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

A

Family maintenance policy

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31
Q

What kind of special need would a policyowner require with an Adjustable life policy?
A. Level premiums
B. Flexible premiums
C. Flexible nonforfeiture

A

Flexible premiums

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32
Q

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

A minimum guaranteed death benefit

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33
Q

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

A

Conversion provision

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34
Q

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.

A

Collect initial premium along with a sign health statement.

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35
Q

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.

A

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

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36
Q

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

A

Conditional receipt
Binds the insured to coverage as the date of the application or examination provided the proposed insured is an acceptable risk

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37
Q

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

A

Application was submitted without the initial premium

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38
Q

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

A

When producer delivers policy& collects premiums

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39
Q

Information obtained from a phone conversation to the proposed insured can be found on this report?
A. Agents report
B. Inspection report

A

Inspection report

May include phone conversation

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40
Q

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

A

At the time of application

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41
Q

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

A

Complete the application and review the information with the customer prior to obtaining the customer signature, then send the application often insurance,.

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42
Q

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

A

Risk classification

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43
Q

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

A

Exclusion for medical condition

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44
Q 
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
A

Marital status

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45
Q

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

A

Waved one of its legal rights

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46
Q

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

A

When the conditions of the receipt are met

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47
Q

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

A

Policy proceeds

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48
Q

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

A

Claim will be denied

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49
Q

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

A

Decreasing term

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50
Q

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

A

Keogh plan

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51
Q

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

A

6 months

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52
Q

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

A

$7000

5,000 + 20% remain bill =$7000

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53
Q

Insurer must provide an insurance claim forms within —- days after receiving notice of loss?
A. 10
B. 15
C. 20

A

15

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54
Q

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

A

Non-occupational coverage

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55
Q 
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
A

Provide the payment of proceeds to the Insurer’s estate

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56
Q

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

A

Interest to the insurer is decreased by administrative cost are increased
Higher the frequency of payments, higher the premiums

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57
Q

Provision that defines whom the insurer will pay benefits is:
A. Entire contract
B. Proud of loss
C. Payment of claims

A

Payment of claims

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58
Q

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

A

HMO

59
Q

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

A

10 days

60
Q 
This service is not covered under hospitalization expense policy?
A. Daily room and board
B. Surgeon’s fees
C. Intensive care
D. Miscellaneous expenses
A

Surgeon’s fees

61
Q

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

A

Add future date specified in the contract with no evidence of insurability required

62
Q

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

A

Disability income

63
Q

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

A

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
Q

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

A

Insurance contract to the proposed insured

65
Q

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

A

ABC is a policy owner, W is the insured, ABC is a beneficiary

66
Q

K agent has induced an insured through mispresentation to surrender an existing insurance, he is guilty of?
A. Coercion
B. Twisting
C. Rebating

A

Twisting

67
Q

This plan include hospice benefits?
A. Group life plans
B. Workers compensation
C. Managed care plans

A

Managed care plans

68
Q

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

A

Our group health plans are terminated by the employer

69
Q 
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
A

Conditional

70
Q

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

A

Whole life with other insured rider

71
Q

IRA rollover contributions are:
A. Subject to ordinary income tax
B. Partially limited by dollar amount
C. Not limited to a dollar amount

A

Not limited by dollar amount

72
Q

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

A

Face amount can be adjusted using policy dividends

73
Q

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

A

$50,000 because it’s past the suicide clause of 1 to 2 years

74
Q

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

A

Gross income at the time of purchase

75
Q

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

A

Additional whole life at specified times

76
Q

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

A

P only

Because P survive the accident and primary beneficiary

77
Q

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

A

Who is the policy owner is and what eights the policy owner is entitled to

78
Q 
401 k plan provides participants;
A. Salary- deferral 
distributions
B. Tax free contributions
C.  Salary deferral contributions/options
A

Salary deferral contributions

79
Q

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

A

Must have a terminal illness to qualify

80
Q

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

A

5 months

81
Q

When funds are shifted straight from one IRA to another IRA, what percentage of taxes withheld?
A. 10%
B. 20%
C. None

A

None

82
Q

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

A

Paid- up

additional insurance

83
Q

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

A

If primary beneficiary dies before the insured

84
Q

Life insurance policy would be considered wavering contract without:
A. Insurable interest
B. Premium payment
C. Constructive delivery

A

Insurable interest

85
Q

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

A

Variable universal life

86
Q

Return of premium insurance policy is:
A. Whole life and increasing term
B. Interest sensitive
C. Variable life

A

Whole life and increasing term

87
Q

In Georgia, how long is “free look” period?
A. 10 days
B. 20 days
C. 30 days

A

10 days

88
Q

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

A

Accidental death and dismemberment rider

89
Q

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

A

Benefits have no maximum limit

90
Q

Short term medical expense policies are:
A. Non-cancelable
B. Conditionally renewable
C. Nonrenewable

A

Nonrenewable

91
Q

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

A

Are less costly as compared to individual long-term care coverage

92
Q

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

A

Two years from the date of the policy was issued

93
Q

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

A

Beneficiary will be paid the death benefits

Because the incontestable clause prevents the insured from canceling the contract with misrepresentation

94
Q

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

A

Review the policy annually and determine whether or not to review it

95
Q

Credit policies are issued as what type of insurance?
A. Whole
B. Term

A

Term

Decreasing term for loan balance

96
Q

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

A

Recurrent disability

97
Q

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

A

April 1st the year following The year the participant age is 70 1/2

98
Q

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

A

Income that cannot be outlived by the owner

99
Q

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

A guardian is required to be appointed in the beneficiary clause of the contract

100
Q

When beneficiary’s requires his consent when a change of beneficiary is attempted by policyowner?
A. Revocable beneficiary
B. Irrevocable beneficiary

A

Irrevocable beneficiary

101
Q 
Disability policies do not pay for disabilities arising in the situation?
A. Accident
B. Negligence
C. Sickness
D. War
A

War

102
Q

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

A

Life income

103
Q

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

A

November 1

Must wait 60 days before legal action can be taken

104
Q

Benefits under a disability-buyout policy?
A. Taxable to beneficiary
B. Payable to the company or another shareholder

A

Payable to the company or another shareholder

105
Q

Premiums paid by employer for his employee’s Group life insurance are:
A. Tax- deductible to the employer
B. Taxable income to the employee

A

Tax-deductible to the employer

106
Q

What type of employee welfare plans are not subject to ERISA regulation:
A. Church plans
B. Corporate
C. Major medical plans

A

Church plans

107
Q

Accumulated interest earned on dividends from insurance policy is true?
A., is tax-deductible
B. Taxed as capital gains
C. Taxed as ordinary income

A

Taxed as ordinary income

108
Q

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

A

$50,000 minus outstanding policy loan. Because death is past the contestable.

109
Q

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

A

Life Annuity with period certain

110
Q 
Underwriting process involves all of these except:
A. Credit report
B. Risk classification
C. Application
D. Policy loan
A

Policy loan

111
Q

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

A

$3600

$2000 + 20% remaining bill = $3600

112
Q

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

A

Insurer will likely treat as a pre-existing condition which may not be covered for one year

113
Q

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

A

Her group health plan

114
Q

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

A

30 pay life

Cash value increases faster and the premiums are fixed (level)

115
Q

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

A

Limit insured’s out of pocket expenses

116
Q

Insured must notify the insurer have a medical claim how many days after the accident?
A. 10
B. 20
C. 40

A

20 days

117
Q

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

A

Income tax and 10% penalty assessed upon funds withdrawn

118
Q

Family income policy is a combination of whole life and?
A. Decreasing term
B. Level term

A

Decreasing term

119
Q

This annuity pays benefits on units rather than specific dollars?
A. Variable annuity
B. Deferred annuity

A

Variable annuity

120
Q

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

A

Employee funded

121
Q

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

A

Business overhead expense

Covers fixed business expenses in the event the owner unable to work

122
Q

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

A

Maximum amount considered eligible for reimbursement by an insurance company under health plan

123
Q

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

A

59 1/2

124
Q

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

A

Universal life

125
Q

Disability income policy, has this clause that acts as a deductible?
A. Elimination period
B. Waiver period

A

Elimination period

126
Q

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

A

Determine if the applicant is an acceptable risk by completing standard and a writing procedures

127
Q

Interest sensitive whole life characteristic:
A. Premium payments can vary
B. Interest rates never determine cash value

A

Premium payments can vary.

128
Q

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

A signed statement by the applicant regarding the replacement

129
Q

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

A

Promise to pay a death benefit to the named beneficiary

130
Q

How long does coverage normally remain on limited-pay life?
A. 65
B. 100
C. When premium stop

A

100

it’s a life policy , premiums are paid to a limited age

131
Q

Annuity that represents the largest possible monthly payment to annuitant?
A. Installment refund
B. Straight life annuity

A

Straight life annuity

132
Q

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

A

Key person life policy

133
Q

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

A

If both parents were to die and provide death benefits to the child

134
Q

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

A

Contract surrender value at that time

135
Q

Group insurance policies are written as
A. Increasing term
B. Group whole life
C. Annually renewable term

A

Annually renewable term

136
Q

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

A

Limited pay life

137
Q

This policy requires an agent to register with national Association of securities dealers?
A. Universal life
B. Interest sensitive whole life
C. Variable life

A

Variable life

138
Q

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

A

It doesn’t have medical underwriting

139
Q

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

A

allow employees to participate in the profits of the company

140
Q

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

A

Deducted when the policy is discontinued

141
Q

Type of renewability guarantees premium rates and renewability?
A. Guaranteed renewable
B. non-cancelable

A

Noncallable

142
Q

This policy combines investment choices with a form of term coverage?
A. Universal
B. Variable Universal Life
C term

A

Variable universal life

143
Q

Accident and Health policyowner May Not do?
A. File a covered claim
B. Cancel coverage
C. Adjust the premium payments

A

Adjust the premium payment

144
Q

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

A

Time limit on certain defenses

Georgia Insurance License (10 decks)

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