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Which of the following policies could be expected to have the lowest premium?
To be valid, a contract must be between individuals considered legally able to enter into an agreement. This principle is known as
When a group plan is contributory, what percentage of employees must want and be willing to pay for coverage?
A rollover refers to which of the following?
Which of the following possibilities would be considered a speculative risk?
Nonfinancial regulatory activities are known as
The cash value accumulation in a life insurance policy
The type of policy that can be changed from one that does NOT accumulate cash values to one that does is a
Warren and Wilma have a joint life policy. Warren dies, and the policy pays nothing. Later on, Wilma dies and the policy death benefit is paid to the beneficiary. This is called a
The number of years excluded from the conversion privilege on a convertible term policy
Which of the following situations most likely calls for the purchase of term insurance?
When a producer is made aware of an insured's death, the first task is to
Which of the following statements about social insurance is NOT true?
All of the following are elements of a contract EXCEPT
A whole life policy
A limited pay life policy
A variable life policy
The term annuity period refers to which of the following?
One of the greatest advantages of convertible and renewable term policies is that
The punishment for fraud or making false statements may include
When the cash value account of a universal life policy reaches zero, the policyowner must make a premium payment or
The head of the state department of insurance has all of the following powers EXCEPTinsurance
To be able to start operations, a mutual company must have all of the following EXCEPT
Term insurance differs from permanent insurance in that term
A producer who is acting as an agent is representing
Third-party ownership refers to a situation in which
When underwriting group insurance, the underwriter generally
The tendency for poor risks to seek and be covered for insurance more than average risks is known as
An annuitant has a temporary annuity certain and dies shortly after the payments start but before the certain period of 10 years has elapsed. Benefit payments will now typically be
If a group insurance plan is noncontributory
A straight life annuity pays a periodic income
A deferred annuity pays a death benefit to a beneficiary
An annuity is a contract that
Taxes are deferred on cash accumulations in all of the following EXCEPT
Mr. and Mrs. Burden receive a monthly annuity payment. Mr. Burden dies, but Mrs. Burden continues to receive a monthly annuity payment. The Burdens have a
A life annuity with period certain settlement option pays the annuitant
The type of annuity that guarantees to pay total income at least equal to the purchase price of the contract is a
With an immediate annuity, payments to the annuitant begin when a period has elapsed that is
The type of annuity in which the values grow according to the performance of the investment medium, and in which benefits may fluctuate according to market performance, is called a
TSAs are tax-sheltered retirement programs for employees of all the following kinds of organizations EXCEPT
A flexible premium annuity provides for a flexible
An insurance contract is an aleatory contract. This means
An expense loading is added to the net premium to do all of the following EXCEPT
Income payments made from an annuity are
All of the following are living benefits of life insurance EXCEPT
In a whole life insurance policy
Premiums for which of the following policies are deductible by an individual for income tax purposes?
In group insurance, the evidence of a contract between the insurer and the employer or association is the
A child may be a dependent beyond the ages of 19 or 21
All of the following provisions of an adjustable life policy may be changed to meet the policyholder's needs EXCEPT
The current rate of interest paid to the cash value account of a universal life policy consists of
In a universal life policy, the death benefit remains at the policy face value amount
If a universal life policy with the increasing death benefit option has an initial face amount of $75,000 and a cash value of $10,000, the actual death benefit will be
A universal life policy may be surrendered for its cash value
Which of the following is taxable as income?
Producers selling variable life insurance
The death benefit of a variable life policy
The cash value of a variable life policy
Premiums for a variable universal life policy
Premium payments made into a variable universal life policy
Which of the following factors is NOT considered when using the needs approach to determine the kind and amount of insurance appropriate for an individual?
Carol's husband dies, leaving her with a 5-year-old daughter to support. Which of the 3 income periods is Carol in currently?
The most effective way to ensure that the applicant will accept the policy when it is issued is to
A policyowner allows a policy to lapse, and the insurance company converts the policy to the extended term option. Which of the following from the original policy will automatically carry over into the new policy?
When Jonas died, it was discovered that he was actually 6 years older than he had claimed when applying for an insurance policy. As a result of this discovery, the insurance company
Which of the following would NOT be permitted as a Section 1035 policy exchange?
All of the following factors are used to determine annuity premiums EXCEPT
Jack has a variable annuity in a separate account that has a portfolio valued at $5 million. There are 500,000 outstanding accumulation units for the account. What's the value of 1 unit?
Paul dies before his annuity has paid out an amount at least equal to the purchase price of the annuity, so Paul’s beneficiary continues to receive annuity payments until that amount has been reached. This type of annuity is a
Which of the following is NOT a characteristic of life insurance as property?
Alicia, age 35, has an annuity that has a guaranteed growth rate of 6% and that will pay her a specified monthly income beginning at age 65. What kind of annuity does Alicia have?
A universal life policy with a back-end load
An indeterminate premium policy offers
With a 401(k) plan, employee contributions to the plan
Alma, age 35, earns $50,000 a year and expects to retire when she is 65. What is Alma’s human life value?
Permanent insurance differs from term insurance with regard to
An accounting measure used to determine a contract owner’s interest in the separate account of a variable annuity before payments begin is called
In many jurisdictions, permanent policies are required to have some cash value by the end of
Once a policy has lapsed, the insured usually can reinstate the policy, provided proof of insurability is shown, if all back premiums due
The type of health care provider that provides both health care services and health care coverage is a
Dread disease, travel accident, vision care, and hospital indemnity policies are all examples of
Which of the following groups is NOT eligible for Medicare coverage?
Which of the following terms describes the concept that the insurer and the insured share in the cost of medical expenses, with the insurer bearing the greater share?
The coordination of benefits provision is designed to
The type of health insurance policy most likely used to cover all students attending a large university is known as
Under workers’ compensation, a disability that is a permanent physical impairment leaving the individual incapable of performing the previous regular occupation, but capable of performing some other type of work, is
A health insurance policy includes an endorsement indicating that the insurer will allow the policy to continue in force without further premiums if the insured is totally and permanently disabled. Which endorsement is attached to this policy?
Which part of Medicare requires premium payment by most eligible participants?
Which of the following statements about long-term care policies is CORRECT?
The benefits of an individual disability income policy are
Under a credit health policy, what is the maximum amount of any accidental death benefit included?
Before Cranston was disabled, he was a full-time engineer earning about $70,000 annually. Now, 2 years later, he is able to work part-time, earning about $25,000 annually. It is likely that Cranston would be classified as
Primary support for Medicare Part A comes from
When medical expense policies do NOT state specific dollar benefit amounts but instead base payments on the charges for like services in the same geographic area, benefits are designated as which of the following?
Compared with individual disability income policies, group disability income policies are generally
Many major medical policies include a provision whereby when expenses reach a certain dollar amount, the insured no longer shares in the cost of expenses; the insurer pays 100% of remaining covered charges. This is referred to as the
An insured’s disability income policy defines total disability as the insured’s inability to perform the duties of any occupation for which he is reasonably qualified by education, training, or experience. This definition is known as the
A certain major medical policy states a maximum number of days for which convalescent care will be paid and a maximum number of x-rays that will be paid for under any one claim. These are examples of
Medigap policies were standardized to
A health maintenance organization in a certain city contracts with an independent medical group to provide services to HMO subscribers. The HMO pays the group organization rather than paying the individual medical practitioners. Which type of HMO structure is this?
Which of the following statements regarding COBRA is CORRECT?
In a disability income policy, there is a period during which no benefits will be paid for illness of any kind. This period usually does not apply to accidents, only to illness. This interim is called the
The usual payment arrangement under a preferred provider organization contract is
Jay, who is employed by Carson Company, is assigned to work temporarily in another state. While in the other state, Jay is injured on the job. He is entitled to benefits of the workers' compensation law in the state in which he was hired even though his injury occurred in a different state. This indicates that the workers' compensation law in the state where Jay was hired
A health insurance policy that the insurer may choose NOT to renew only on the premium due date is called
Second surgical opinions, precertification, concurrent reviews, and outpatient/ambulatory services are all elements of a cost-containment system commonly known as
Luis and Margarita have a family health policy that includes two riders. One rider excludes coverage for Margarita's existing diabetes. The other rider indicates that the couple may purchase additional disability income coverage at specified dates in the future without proving insurability. Which two riders are attached to this policy?
Normally, Blue Cross/Blue Shield makes payments for medical expenses
Under what circumstances do major medical policies usually provide for restoration of benefits?
Which of the following waives the elimination period in a disability policy?
The Medical Information Bureau is a nonprofit organization supported by
A disability that is presumed to result from the same or a related cause of prior disability is called a
Some major medical policies begin with basic first-dollar coverage that pays up to its limits, then the insured must pay a certain dollar amount of expenses before the major medical portion steps in. Which of the following terms applies to the dollar amount the insured must pay between the basic policy and the major medical coverage?
A Medicare SELECT policy differs from a regular Medigap policy in that it
Employer-paid premiums for employee group health insurance are generally
In health maintenance organizations, the use of a primary care physician, or PCP, is common as part of
Which of the following statements concerning a coordination of benefits situation is NOT true?
Oswald changes jobs in June. He was covered by group health for 2 years at his previous job. His new job offers group health coverage with a 6-month exclusion for preexisting conditions. Assuming that Oswald enrolls at the earliest opportunity in the group health program at his new job, when will any preexisting conditions Oswald may have be covered in his new group health plan?
Which of the following statements concerning dental care policies is CORRECT?
Which of the following is a factor in the evolution and increasing availability of LTC policies?
A contract that backs up a self-funded health care plan to limit the employer’s liability for claims is called
Group credit health insurance requires all of the following EXCEPT
All of the following benefits are provided under Part A of Medicare EXCEPT
The health maintenance organization concept that service providers are paid a fixed monthly fee for each member is called
Which of the following phrases correctly describes Medicaid?
Major medical policies may include a type of deductible wherein the insured pays a new deductible amount for each separate event that causes medical expenses to be incurred. This is known as the
Which of the following is a requirement for payment of Social Security disability benefits?A) Total and permanent disability for at least 5 months B) All of these C) Expected disability of 12 months or longer or ending in death D) Being fully insured and disability insured
Health maintenance organizations are required to provide for all of the following EXCEPTA) emergency services B) prescription drugs C) physicians' services D) preventive services
Which of the following is not a typical statutory requirement in underwriting a group policy?
With a key person life insurance policy, the business is all of the following EXCEPT:
Which of the following classification of risks would typically have the lowest premium payment?
Which of the following statements regarding fixed annuities is NOT correct?
The premiums for a variable life insurance policy are deposited into
Under Social Security disability benefits, a qualifed disabled worker receives a benefit
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