EXAMFX Insurance Questions With Complete Solutions

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? correct answer: 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 correct answer: 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 correct answer: 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 correct answer: 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 correct answer: 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 ..... correct answer: Agent must advise the client about HACAP and it's services