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Life Exam Practice Questions 3
Terms in this set (43)
A spouse's conversion privileges under a group policy are the same as the group member's were EXCEPT...
the amount to convert is always less
What is the usual length of the
probationary period of group life insurance
On the day he becomes eligible, Tom leaves work at 2:00PM to take his expectant wife to the hospital, Tom will receive his certificate of insurance...
since he was not off work due to illness
Tom cut his work week from 40 hours to 25 hours to help his wife. What is Toms status with his group life insurance?
He is not eligible because he's no longer a full-time employee
For a contributory plan with some insurance companies, if the employee does not apply within the eligibility period he or she ...
may be required to take a medical exam, even for a nonmedical plan
When spouses are to be included in the members' group life insurance plans...
the percentage of spouses included must be the same as the percentage of covered members
An individual who has contributory group life insurance coverage at work...
pays lower premiums than with comparable individual insurance and usually doesn't have to prove insurability
The amount of coverage on the spouse of a group life policy member that may be provided without tax consequences to the member is...
limited to $2,000
The premiums for a group one-year renewable term life insurance policy may...
increase or decrease based on average age of the group and other factors
Leroy wants to buy a policy insuring the life of his wife loretta. What is the limit on how much insurance he can buy?
As much as the insurance company is willing to issue and leroy can afford
Credit life insurance is usually written as...
A certificate of insurance is issued to whom?
each individual covered by the group life insurance
An application for group coverage is signed by the...
employer, who then receives and retains a master policy
a group of fewer than 10 members
The most common group life insurance policy is...
one-year renewable term
George, who has a group policy, may upon leaving his place of employment...
convert it to permanent insurance without proof of insurability, within a specified plan
An arrangement in which the
provides the premium for an
-owned life insurance policy is called...
an executive bonus plan
The Lozenge company provides a $5,000 monthly income to retirees who served as senior executives. This benefit is not available to other retirees of the company. This is an example of a ...
In order to qualify for group life insurance coverage, an individual employer group must usually have at least how many members?
When a group plan is
, what percentage of employees must want and be willing to pay for coverage?
A "rollover" refers to what?
Transfer of funds from one IRA to another
The most common eligibility factors for
group life insurance are...
salary level and length of service
An employee desiring group coverage must...
sign an enrollment card, provide general personal information, and name a beneficiary
When a group plan is
, what percentage of eligible employees must be covered?
Participating policies may be issued by...
stock and mutual insurance companies
When an agent is made aware of an insured's death, the first task is to...
notify the insurance company
At the time of the insured's death, the person best equipped to explain the chosen settlement option to the beneficiary is whom?
The primary purpose of a
Section 303 redemption
to provide liquidity to pay estate taxes and administration and funeral costs
With a 401(k) plan, employee contributions to the plan...
are made on an
Twisting involves what?
Should the proposed insured desire to
correct an application
, they must do so within how many days?
can make the change, but must initial it
An agent has the authority to tell a proposed insured...
does not have the authority that a policy will be issued by the insurance company as requested
Which of the following is not permitted of a fraternal benefit society?
Issuance of capital stock
A company is
in the state where its home office is located
Which of the following is the subject of
The Triennial Examination Report
issued by the state insurance commissioner?
Inspection of domestic insurers
maximum amount of risk a company will assume on any one policy
What tests are used to determine a legitimate life insurance contract for the purpose of securing tax advantages?
Cash value accumulation test
Guideline premium test
A group deferred annuity or an individual deferred annuity would be most likely used...
to fund a denned benefit plan
QQQ company applies for life insurance on its key vice president, Harold. QQQ is the premium payer, and beneficiary, and controls all the rights to the policy. What is harold and what is the company?
Harold is the proposed insured and the company is the applicant
A "SIMPLE" retirement plan...
Can be a 401(k) plan or an IRA
In an outright gift of life insurance to a charity...
all the incidents of ownership in the policy belong to the donee
When signing the application form, the proposed insured is...
Making a formal request to the company for a life insurance policy
THIS SET IS OFTEN IN FOLDERS WITH...
Life Exam Practice Questions
Life Exam Practice Questions 2
Kentucky Life Insurance Test
Health Exam Questions
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