PA Life, Accident, and Health Insurance

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? $10,000 or up to one year in jail A type of insurer that is owned by its policyowners is called Mutual insurer...

life insurance policyowners are free to assign or sell their policy to anyone or anything regardless of the relationship between the new owner (the assignee) and the insured *the continuing need for insurable interest between owner and insured disappears after a life insurance policy is issued* In...

Under a modified endowment contract, what are the likely tax consequences? Pre-death distributions will become taxable An interest sensitive life insurance policy owner may be able to withdraw the policy's cash value interest. The free provision that allows this is called Partial Surrender In c...

What is the disadvantage of selecting the life income settlement option? If the beneficiary dies shortly after the payments begin, the balance of the principal will be forfeited What type of assignment is used to secure the payment of a debt with an existing life insurance policy Collateral Assignm...

What types of life insurance are normally used for key employee indemnification? term, whole, and universal life insurance major medical insurance will typically cover medical expenses that result from a negative reaction to a prescribed medication All of these characteristics of a major medical e...

Absolute Assignment is a policy assignment under which the assignee (person to whom the policy is assigned) receives full control over the policy and full rights to its benefits. Accidental Death Benefit (Multiple Indemnity) Rider pays an additional sum to the beneficiary if the insured dies due to...

A ________ is paid a fee from his/her client to examine life insurance policies and provide advice. Life Insurance Councilor An insurance producer must be appointed by the: Insurer In the case of a Medicare supplement insurance policy, the policyholder can return the policy for a full refund of th...

Accident An unplanned, unforeseen event which occurs suddenly and at an unspecified place. Accident Insurance A type of insurance that protects the insured against loss due to accidental bodily injury. Accidental Bodily Injury Unplanned, unforeseen traumatic injury to the body. Accidental Death a...

Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy? Personal Income What is the nonforfeiture value of an annuity before annuitization? All premiums paid, plus interest, minus any withdrawals and surrender charges In an employer sponsored co...

24 Hours will be applied to the current reporting period, and 24 can be applied to the period immediately following A producer has successfully completed 52 hours of continuing education. How many hours can the producer apply to her current reporting period, and how many hours can she carry toward t...

Term Life Insurance Temporary protection, only provides coverage for a specific period of time. Also known as pure life insurance. Pure Death Protection What is provided by Term insurance. If the insured dies during this term, the policy pays the death benefit to the beneficiary. Level Term Insura...

Insurable Interest The policyowner must face the possibility of losing money or something of value in the event of loss...Must exist at the time of application Personal Uses of Life Insurance Survivor protection, estate creation/conservation, Liquidity, Asset protection Purchase of Life Insurance ...

Damon purchased a 10-pay life policy at age 35. He can expect it to be paid up by age 45 With respect to life policies, all of the following are subject to federal income tax EXCEPT policy proceeds paid in lump sum Which of the following types of health insurers provide the majority of their benef...

Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy? Personal Income What is the nonforfeiture value of an annuity before annuitization? All premiums paid, plus interest, minus any withdrawals and surrender charges In an employer sponsored co...