Exam FX, SIE Study Guide, Chapter 1, Questions & Answers, graded A+, Verified.

Exam FX, SIE Study Guide, Chapter 1, Questions & Answers, graded A+, Verified. An IRA uses immediate annuity to pay out benefits; the IRA Owner is nearly 75 years old when he decides to collect distributions. What kind of penalty with the IRA owner pay? - -50% tax on the amount not distributed as required. (When immediate annuity's are used to pay IRA benefits, Distributions must begin no later than age 70 1/2 in order for the annuitant to avoid penalties.) Most Long-term care (LTC) plans have which of the following features - -Guaranteed renewability (The benefit amount payable under most LTC policies is usually a specific amount per day, in some policies pay the actual charge incured per day. Most LTC policies are also guaranteed renewable; however, ensures do have the right to increase the premiums.) Pure Risk - -Threat that is beyond human control and has only one possible outcome if it occurs: loss (characteristics of pure risk, the laws must be due to chance, definite, measurable, and predictable) Which of the following is not a characteristic of pure risk? A. The loss must be miserable in dollars B. The loss exposure must be large C. The loss must be catastrophic D.The loss must be due to chance - -The last must be catastrophic Bob was rendered totally disabled at the time his group health insurance plan was disconnected. Since benefits begin to be paid while the policy was in force which of the following would be required A.A 30 day notice B. A new plan to continue the benefits C. Cobra coverage D. And extension of benefits - -An extension of benefits When a client replaces an existing LTC or Medicare supplement insurance policy with another from the same company, California law requires that ..... - -Agent must advise the client about HACAP and it's services (This is a requirement under California law) Who can provide skilled nursing care? - -Skilled nursing care is daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician . Skilled care is almost always provided in an institutional setting. A long stretch of national economic hardship causes a 7% rate of inflation. The policy owner notices that the face value of her life insurance policy has been read 7% as a result. Which policy writer caused the change? - -Cost of living Rider (The cost of living rider and Julia just the The policy is face value in accordance with the national rate of inflation or deflation. This writer or just the face amount of the policy to correspond With the rate of inflation, in order to keep the initial value of the policy constant overtime. Representations in insurance contracts qualify as - -Implied warranties Third-party ownership in life insurance - - Medi-Cal may be available to persons over age 65 if - -They have Medi-Cal or long-term care claims not paid by Medicare An agent selling variable annuity must be registered with - -FINRA