Study sets, textbooks, questions
Upgrade to remove ads
Texas Health and Life Insurance
Terms in this set (243)
What should an insured do if the insurer does not send claims forms within the time period set forth in a health policy's Claims Forms provision?
Submit the claim in any form
A(n) _________ of benefits of a Health Policy transfers payments to someone other than the policyowner.
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the
Which of these provisions is NOT required in life insurance policies?
G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income?
When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have:
insurable interest in the proposed insured
Which of these arrangements allows one to bypass insurable interest laws?
Investor - Originated Life Insurance
A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is referred to as a(n) ___________ rate loan.
A certificate of ____ permits an insurance company to transact business in Texas
Which of these is NOT a reason for a business to buy key person life insurance?
A pension deficiency if the key employee dies.
Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to sell to a(n):
third-party with no insurable interest
How long does an individual have to "rollover" funds from an IRA or qualified plan?
ABC Insurance Company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering
unfair methods of competition
What is the initial source of underwriting for an insurance policy?
Application containing statements from the insured
What type of life policy covers two people and pays upon the death of the last insured?
In a qualified retirement plan, the yearly contributions to an employee's account:
are restricted to maximum levels set by the IRS
Which of these Nonforfeiture Options continue a build-up of cash value?
The individual who provides general medical care for a patient as well as the referral for specialized care is known as a
Primary Care Physician
Which of the following statements about health coverage for newborns is NOT true?
Coverage is limited to only congenital defects
Whose life is covered on a life insurance policy that contains a payor benefit clause?
When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?
Establishes the needs of the individual and his dependents.
Which contract permits the remaining partners to buy-out the interest of a disabled business partner?
Which of the following BEST describes a short-term medical expense policy?
Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?
Certificate of insurance
Credit Life Insurance is
insurance issued on a debtor to cover outstanding loan balances
At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?
At the time of application
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:
Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy?
Premiums are waived after the insured has been totally disabled for a specified time period
Which statement is TRUE in regards to a policy loan?
Past-due interest on a policy loan is added to the total debt
An individual has a Major Medical policy with a $5000 deductible and an 80/20 Coinsurance clause. How much will the INSURED have to pay if a total of $15000 in covered medical expenses are incurred?
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT:
Signed HIPAA disclosure
A major medical policy typically:
provides benefits for reasonable and necessary medical expenses, subject to policy limits
What type of insurance offers permanent life coverage with premiums that are payable for life?
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT:
The premiums can be lowered or raised, based on investment performance
S is the policyowner of a Major Medical policy. The premiums are paid monthly and due on the 1st of each month. S fails to make September's payment and is hospitalized October 15th. When S files the claim for this hospitalization, the insurer will likely:
deny the claim
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
Taxed as ordinary income
Which of the following does Social Security NOT provide benefits for?
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium
Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of
W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n):
Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
A domestic insurance company in Texas is considered a company that?
is incorporated and formed in Texas
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?
The Notice of Claims provision requires a policyowner to:
notify an insurer of a claim within a specified time
When an employee is terminated, which statement about a group term life conversion is true?
Policy proceeds will be paid if the employee dies during the conversion period
Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
T applied for a Disability Income policy and has a history of back injuries. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called a(n)
D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?
Which type of provider is known for stressing preventative medical care and routine physical examinations?
Health Maintenance Organizations (HMO's)
An insurance agent has a fiduciary responsibility to all of the following EXCEPT
T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?
increase her policy's coverage amount
Insurance policies are considered aleatory contracts because
performance is conditioned under a future occurrence
A variable insurance policy
does not guarantee a return on its investment accounts
An insurance company organized under New York laws and licensed to do business in Texas is considered a(n)
A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary?
Her group health plan
Which of the following best describes a contingent beneficiary?
Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured
An insurer is NOT required to provide information on fraudulent claims if requested by
All of these statements about the Commissioner of Insurance are true EXCEPT
The Commissioner must be elected
Which of these require an offer, acceptance, and consideration?
Which of the following claims are typically excluded from Medical expense policies?
intentionally self-inflicted injuries
Who owns a stock insurance company?
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be payable to K's estate if P dies within a specified time
All of these characteristics of an Adjustable Life policy, EXCEPT:
face amount can be adjusted using policy dividends
Before a life policy is issued, which of these contract elements is necessary?
A signed application by the prospect
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Which of the following is considered to be the time period after a Health Policy is issued, during which no benefits are provided for illness?
An insured may assign up to ___ of policy ownership under an individual life insurance policy.
When a policy pays dividends to its policyholders, it is said to be
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?
P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?
Accidental Death and Dismemberment clause
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
What kind of life insurance product covers children under their parent's policy?
A Term rider
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the:
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?
Guaranteed Insurability Option rider
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
Which of the following will a Long Term Care plan typically provide benefits for?
home health care
A life insurance application must be signed by all of these, EXCEPT:
A policyowner's rights are limited under which beneficiary designation?
Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of
The guarantee of insurability option provides a long-term care policyowner the ability to:
buy additional coverage at a later date
A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value?
Life settlement contract
Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization (HMO) plan?
Nonpayment of coverage
If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best desribes this policy is called
Which statement regarding third-party ownership of a life insurance policy is true?
It is used extensively in estate-planning as well as business circumstances
Which of these is NOT considered to be an element of an insurance contract?
____ of continuing education MUST be completed in the classroom or classroom equivalent.
Which of the following statements is CORRECT about an agent who is taking an insurance application?
The agent should have the applicant initial any changes made on the application.
If an insured's age was misstated on a life insurance contract, the Misstatement of Age provision requires that any death benefit payable would be
an amount that the premiums paid would have purchased at the current age
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
at future dates specified in the contract with no evidence of insurability required
B's policy provides coverage on an in-hospital basis only and contains a limited daily room and board benefit. Which of these policies does B have?
The individual Health Insurance policy that offers the broadest protection is a(n) ______ _______ policy.
Q is looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time period. Which of these policies should Q purchase?
Which of these is an element of a Single Premium annuity?
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
All individuals covered under a group contract will receive a(n)
The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and
the initial premium
Which life insurance rider typically appears on a Juvenile life insurance policy?
Payor Benefit rider
When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is:
In Texas, how long must a policy be in force before an insurance company must pay death benefits for suicide?
Which of these is NOT a source of funding for Social Security benefits?
The reason for a business having a Business Overhead Expense Disability Plan is to cover
fixed business expenses
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
Who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas?
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?
Insured's contingent beneficiary
Who has the option to renew a renewable term policy?
Which statement regarding the Change of Beneficiary provision is true?
The policyowner can change the beneficiary
K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?
All of the following statements about traditional individual retirement accounts are false EXCEPT
10% penalty is applied to withdrawals before age 59 1/2
All of these are considered to be a benefit under Social Security, EXCEPT for:
Which of the following phrases refers to the fees charged by a healthcare professional?
Usual, customary, and reasonable expenses
Medicare Part A and Part B do NOT pay for:
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
Full benefits are payable under the Master contract
How long does an insurance company appointment remain in force?
Which of the following statements BEST describes dental care indemnity coverage?
Services are reimbursed after insurer receives the invoice
The incontestable clause allows an insurer to:
contest a claim during the Contestable period
What is required for an agent whose license has been revoked?
Wait at least five years before applying for a new license
T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take?
The insurer will rescind the policy, deny the claim, and recover all payments made.
A Medicare Supplement policy may be cancelled for which of the following reasons?
The premium has not been paid by the insured.
A plan through the Marketplace may be purchased by
Any legal resident (except those imprisoned)
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?
Face amount plus the policy's cash value
Which of the following types of permanent life insurance policies offers the highest initial cash value?
What is considered a valid reason for small business to insure the lives of its major shareholders?
Fund a buy-sell agreement
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?
Dividends paid from a life insurance policy are
issued by the insurer
What must the policyowner provide to the insurer for validation that a loss has occurred?
Proof of Loss
Which of the following is NOT included in the policy face?
An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the
When an insurance application is taken by a producer, which of these statements is true?
Any changes made on the application require the applicant's initials
Which of the following reimburses its insureds for covered medical expenses?
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
Why would the Insurance Commissioner examine the records of an insurance company?
To determine the solvency of the company
On an Accidental Death and Dismemberment (AD&D) Insurance policy, who is qualified to change the beneficiary designation?
Common exclusions to continuation of group coverage include:
All of the above
In Texas, which of these statements regarding the Suicide clause is TRUE?
An insurer may not use suicide as a defense against payment after the second year
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
Evidence of insurability is required when the option is exercised
How long does the coverage normally remain on a limited-pay life policy?
When is the face amount paid under a Joint Life and Survivor policy?
upon death of the last insured
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
When can a policyowner change a revocable beneficiary?
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?
Modified Premium Life
Under a Basic Medical Expense policy, what does the hospitalization expense portion cover?
hospital room and board
Which of the following actions does the Commissioner of Insurance NOT have the power to conduct?
Activate insurance companies' financial reserves
What type of reinsurance contract involves two companies automatically sharing their risk exposure?
______ of personal life insurance premiums is usually deductible for federal income tax purposes
A medical care provider delivers health services at its own local medical facility is known as a:
Health Maintenance Organization
Which of the following benefits is NOT required under a group health plan for drug and alcohol treatment?
Transportation to and from a treatment facility
The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is
Time Limit on Certain Defenses
An employee is covered under a company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse may be insured for under this program?
B, an insurance agent, tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of
When is the face amount of a Whole Life policy paid?
When the insured dies or at the policy's maturity date, whichever happens first
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a
$25,000 individual whole life policy
J's Major Medical policy has a $2,000 deductible and an 80/20 Coinsurance clause. If J is hospitalized and receives a bill for $10,000, J would pay
P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take?
Beneficiary will be paid the Death Benefit
What is the monetary penalty for willfully violating a cease-and-desist order?
A fine of up to $500
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary?
Credit life insurance is typically issued with which of the following types of coverage?
Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE?
Each partner owns a $500,000 policy on their partner's life
Which advantage does the renewability feature give to a term policy?
The insured may extend the coverage period
An applicant MUST receive an Outline of Coverage when an application is taken for a(n)
Medicare Supplement policy
Which of these factors does NOT influence an applicant's need for life insurance?
All students attending a large university could be covered by
a blanket policy
Which of the following services is NOT included under hospitalizatino expense coverage?
M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force?
The benefits under a Disability Buy-Out policy are:
payable to the company or another shareholder
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the
Policy Loan provision
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?
An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager?
Key Person insurance
The free-look provision begins
Upon receipt of the policy by the policyowner
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Long Term Care policies will usually pay for eligible benefits using which of the following methods?
Deductibles are used in health policies to lower
overuse of medical services
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability
R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity?
What is the MINIMUM number of Activities of Daily Living (ADL) an insured must be unable to perform to qualify for Long Term Care benefits?
At this age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in:
Income tax and a 10% penalty assessed upon funds withdrawn from the Qualified Plan
The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits in the insured:
is blinded in an accident
An employer that offers a qualified retirement plan to its employees is eligible to
make tax-deductible contributions to the plan
During a sales presentation for a participating life insurance policy, an agent MUST
make a prospect understand that dividends are NOT guaranteed
The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)
Accidental Death and Dismemberment rider (AD&D)
A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of
With Optionally Renewable Health policies, the insurer may
review the policy annually and determine whether or not to renew it
To terminate an agent's appointment, an insurance company must
send termination notice to the Texas Department of Insurance
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?
V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable?
With whom may an agent legally share commissions?
Another agent with the same line of insurance
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as:
a fraternal benefit society
How are policyowner dividends treated in regards to income tax?
Interest on accumulations is taxed
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is
One becomes eligible for Social Security disability benefits after having been disabled for
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim?
Claim will be denied
When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?
In life insurance, the needs approach is used mostly to establish
How much life insurance a client should apply for
Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?
Blanket accident policy
What action can a policyowner take if an application for a bank loan requires collateral?
Assign policy ownership to the bank
Insurance policies are offered on a "take it or leave it" basis, which make them:
Contracts of Adhesion
In order to sell a(n) _____ Life policy, a producer is required to register with the Financial Industry Regulatory Authority (FINRA)?
T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called
Time Limit on Certain Defenses
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT?
Premiums normally increase at a time of renewal
Which statement is correct regarding the premium payment schedule for whole life policies?
Premiums are payable thoroughout the insured's lifetime / coverage lasts until death of the insured
A Limited-Pay Life policy has:
premium payments limited to a specified number of years
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?
The full face amount
J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a preset price. What type of plan does J belong to?
Health Maintenance Organization
Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?
Entire Contract Provision
When will a hearing be held after a notice of hearing, alleging participation in an unfair or deceptive act, is served to a licensee or insurer by the Commissioner?
No sooner than six days
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
File written proof of loss
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for:
Which of these is NOT a type of agent authority?
Variable Whole Life Insurance can be described as
both an insurance and securities product
An example of rebating would be
returning a portion of a premium as inducement to purchase insurance
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
Which statement regarding a Key Employee Life policy is NOT true?
The beneficiary is named by the key employee
The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?
Flexible Installment Deferred
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?
To be eligible for Social Security disability benefits, an employee must be unable to perform:
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?
Collect initial premium along with a signed health statement
With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's
gross income at the time of purchase
P has recently signed an application for insurance. The insurer MUST advise her in writing that an investigative consumer report may be conducted according to the
Fair Credit Reporting Act
When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?
What type of life policy covers two lives and pays the face amount after the first one dies?
Joint Life Policy
A life insurance would be considered a wagering contract WITHOUT:
T sends proof of loss to her insurer for an acceptable medical expense claim under her individual Health Insurance policy. Upon receipt, the insurer must pay the benefits
R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits?
Upon satisfying the elimination period requirement
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?
Income that cannot be outlived by the owner
T is given a receipt After completing a life insurance application and paying the initial premium. Under this situation, T's coverage is
conditional, depending on the insurer's underwriting guidelines
P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?
She DOES need to provide evidence of insurability
Which of the following actions is NOT possible with a Universal Life policy?
Premiums may be applied as a credit against income tax
Health insurance benefits NOT covered due to an act of war are:
excluded by the insurer in the contract provisions
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT:
Income derived from the TSA is received income tax-free
Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires?
An insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed
T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect?
Less than $5000 per month benefit regardless of the clause
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
Other Quizlet sets
bio 1700 exam 1
Supply Chain Management Learning Block 5-7