CPCU 553 Test Questions with Correct Answers
A flood hazard boundary map - Answer-identifies flood prone areas in the community.
/.a party to a group life insurance contract... - Answer-EMPLOYER. Not employees/insureds - they receive certificates or insurance as evidence of their protection.
...
A flood hazard boundary map - Answer-identifies flood prone areas in the community.
/.a party to a group life insurance contract... - Answer-EMPLOYER. Not
employees/insureds - they receive certificates or insurance as evidence of their
protection.
/.Accelerated Death Benefits - Answer-in case of catastrophic or terminal illness, the
insd may need to access life insurance benefits to finance medical expenses before
death.
/.Accumulation period - Answer-the period b/t the annuity owner's purchase and the age
at which benefit payments begin
/.After what age will benefits no longer increase because of a postponement in
retirement? - Answer-70
/.Assignment Clause - Answer-PH can assign the policy to another person
/.Base premium is influenced by - Answer-dwelling location, public protection class,
construction factors, coverage amount, and policy form selected.
/.Beachfront and Windstorm plans - Answer-- Property must be ineligible for private
insurance.
- Buildings rebuilt after a specific date must conform to applicable building codes to be
eligible for beachfront and windstorm coverage.
/.Bond - Answer-certificate of debt that includes the seller's promise to pay investors a
fixed amount on a fixed maturity date
/.Collapse - Answer-excluded as a cause of loss but coverage for collapse that results
from some other causes of loss is provided under the Section I—Property Coverages.
/.Combination plans - Answer-combines feature of fixed dollar and variable annuities
/.Coverage B Exclusion - Answer-1. rented to anyone who is not a resident
2. structure from which any business in conducted
3. structure used to store business property
/.Coverage D - Answer-Rental Value Coverage / Loss of Use
/.Coverage E - Answer-Personal Liability
, /.Coverage F - Answer-Medial Payments to others
/.Coverage L - Answer-Personal Liability (does not include the $1000 limit of loss
assessment
/.Coverage M - Answer-Medical Payments to others
/.Deferred annuity - Answer-benefits not payable until a specified time in the future.
- immediate annuity = benefits paid soon after the owner purchases the annuity
/.Defined benefit 401(k) plan - Answer-combination of a defined benefit plan and a
defined contribution plan?
/.Defined benefit plan - Answer-retirement benefit is specified and the employer's
contributions vary depending on the amount needed to fund the benefit is a defined
benefit plan.
- amt of benefit is usually based on a formula that takes into account the number of
years an employee has worked for the employer. .
- generally require no contributions by employees.
/.DP-3 Coverage D+E is how much? - Answer-20% of Coverage A
/.DP-3 Limited Theft Coverage - Answer-covers only on-premises theft. Does not cover
off premises at all.
/.DP-3 Theft Coverage endorsement - Answer-covers theft on premises and off-
premises. Off premises is available only if the insd purchases on-premises coverage
/.equity indexed annuities - Answer-fixed dollar annuity linked to a stock market index
/.Examples of warranties - Answer-Pleasure use- will only be used for
Seaworthiness- boat is in seaworthy condition
Lay-up Period - boat will not be in operation during certain months
Navigational Limits - limits use to an area.
if anything of these are violated, higher premiums may be required or coverage may not
apply.
/.Family living expenses - Answer-expenses required to maintain the household
/.Final Expense Needs - Answer-expenses incurred immediately before and after death
- such as medical bills, funeral and burial costs, estate and inheritance taxes and any
probate costs.
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