Life and Health Insurance 2024 Exam Questions and Answers All Correct
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Course
Life and Health Insurance
Institution
Life And Health Insurance
Life and Health Insurance 2024 Exam Questions and Answers All Correct
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated? - Answer-those who have been insured under the plan for at le...
Life and Health Insurance 2024
Exam Questions and Answers All
Correct
Which of the following employees insured under a group life plan would be allowed to
convert to individual insurance of the same coverage once the plan is terminated? -
Answer-those who have been insured under the plan for at least 5 years
Which of the following are generally NOT considered when underwriting group
insurance? - Answer-the insureds' medical history
Which of the following is NOT a factor in determining qualifications for Social Security
disability benefits? - Answer-worker's occupation
Which of the following is an eligibility requirement for all Social Security Disability
Income benefits? - Answer-have attained fully insured status
Which of the following is INCORRECT concerning taxation of disability income benefits?
- Answer-if paid by the individual, the premiums are tax deductible
An insured is covered by a partially contributory group disability income plan that pays
benefits of $4000 a month. If the insured pays 25% of the monthly premium, how much
of the monthly benefit would be taxable? - Answer-$3000
In disability income insurance, the own occupation definition of disability applies -
Answer-for the first 2 years of a disability
Which of the following applies to partial disability benefits? - Answer-payment is limited
to a certain period of time
Which of the following statements regarding Business Overhead Expense policies is
NOT true? - Answer-benefits are usually limited to six months
An insured has a major medical policy with a $500 deductible and 80/20 coinsurance.
The insured is hospitalized and sustains a $2500 bill. What is the maximum amount that
the insured will have to pay? - Answer-$900
All of the following are requirements of eligibility for Social Security disability income
benefits EXCEPT - Answer-being age 65
, An insurer invests the money it receives from premiums paid by its insureds. Which of
the following is TRUE regarding the interest earned on these investments? - Answer-it
is used to lower premiums
Which is the appropriate action by the insurer if a prospective insured submitted an
incomplete application? - Answer-return the application to the applicant for completion
What does "liquidity" refer to in a life insurance policy? - Answer-cash values can be
borrowed at any time
In the transaction of insurance, which of the following is considered to be representing
the client? - Answer-the broker
In insurance transactions, fiduciary responsibility means - Answer-handling insurer
funds in a trust capacity
A Universal Life Insurance policy is best described as an - Answer-Annually Renewable
Term policy with a cash value account
Variable Life Insurance is based on what kind of premium? - Answer-level fixed
In life insurance policies, cash value increases - Answer-grow tax deferred
One of the advantages of a family life insurance policy that provides coverage for
children is that it - Answer-may be converted to permanent insurance for the children
without requiring evidence of insurability
Which of the following is TRUE regarding variable annuities? - Answer-the annuitant
assumes the risks on investment
What type of annuity guarantees to pay an income to the annuitant each year as long as
he lives, and upon death, the annuity will refund the remaining payments to a
beneficiary? - Answer-installment refund annuity
Which of the following describes the taxation of an annuity when money is withdrawn
during the accumulation phase? - Answer-withdrawn amounts are taxed on a last in,
first out basis
Which of the following best describes what the annuity period is? - Answer-the period of
time during which accumulated money is converted into income payments
Which of the following will NOT be an appropriate use of a deferred annuity? - Answer-
creating an estate
Under an extended term nonforfeiture option, the policy cash value is converted to -
Answer-the same face amount as in the whole life policy
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