A.D. Banker Life&Health Guarantee Exam Questions & Answers 2023/2024
B decides to buy a single premium immediate annuity, choosing the Life Only distribution option. How long will the insurer make payments to B?
A
For B's lifetime or until the principal and interest are exhausted, whichever ...
A.D. Banker Life&Health Guarantee
Exam Questions & Answers 2023/2024
B decides to buy a single premium immediate annuity, choosing the Life Only distribution option. How
long will the insurer make payments to B?
A
For B's lifetime or until the principal and interest are exhausted, whichever is shorter
B
For the period of time it takes B to recover the initial premium or his lifetime, whichever is shorter
C
For a guaranteed period of time, whether or not B survives to the end of that period
D
Only for as long as B is alive - ANSWER-D
Only for as long as B is alive ??
The __________________ states the insurer's essential promise to provide the benefits described in the
contract.
A
Insuring Agreement
B
Suicide provision
C
Right of assignment
D
Consideration clause - ANSWER-A
Insuring Agreement
,Medical Savings Accounts, Health Savings Accounts, and High Deductible Health Plans are generally
described as:
A
Federally Subsidized Health Plans
B
Employer-Sponsored Health Plans
C
Consumer-Driven Health Plans
D
Consumer-Funded Health Plans - ANSWER-C
Consumer-Driven Health Plans
If written consent of the beneficiary is required to change policy ownership or to assign the policy, then
the beneficiary designation must be:
A
Per stirpes
B
Tertiary
C
Irrevocable
D
Revocable - ANSWER-C
Irrevocable
A life insurance transaction in which a new life insurance policy is being purchased and an existing policy
will be surrendered, lapse, or forfeited, is known as:
A
,Twisting
B
Replacement
C
Churning
D
Conversion - ANSWER-B
Replacement
When benefit payments are made directly to the insured, this is referred to as:
A
Prepaid
B
Reimbursement
C
Fee-for-service
D
Usual, Customary, and Reasonable (UCR) - ANSWER-B
Reimbursement
Which one of the following is not a dividend option?
A
Accumulate at interest
B
One-year additional term insurance
C
Paid-up additional insurance
, D
Extended term insurance - ANSWER-D
Extended term insurance
If a life insurance policy is said to have failed the 7-pay test, the policy is known as a(n):
A
Void Contract
B
Irreversible Annuity Contract
C
STOLI Contract
D
Modified Endowment Contract - ANSWER-D
Modified Endowment Contract
All of the following statements regarding the application and underwriting process are true except:
A
Insurers must avoid unfair discrimination when underwriting for cancer or heart disease
B
Field underwriting is very important due to the risk of a moral hazard
C
An application is a written formal request by an applicant to an insurer requesting the insurer issue a
policy based upon information contained in the application
D
The policy will not go into effect until the application has been approved, the policy has been issued, and
premiums have been paid - ANSWER-A
Insurers must avoid unfair discrimination when underwriting for cancer or heart disease
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