Final exam- Vermont life and health
Questions and Answers
Which of the following is NOT a basic underwriting action for accident and health insurance?
o :## Removing uniform policy provisions
Long-term care policies will usually pay for eligible benefits to using which of the following methods
o :## Expense incurred
T is covered by an accidental death and dismemberment (AD&D) policy that contains an irrevocable
beneficiary. What action will the insurance company take if T requests a change of beneficiary?
o :## Request of the change will be refused
Which of these do NOT indicate the presence of insurance interest in a life insurance contract
o :## Lifelong friendship
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?
o :## Establishes the needs of the individual and his dependents
Which of these is not a factor that influences group health insurance underwriting?
o :## Physical exams of group members
Which one of these is not considered to be an element of an insurable risk
o :## Speculative risk
Newborn children are automatically covered under an existing family medical plan at the moment of
birth for a period of at least (# days)
o :## 31
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Under what circumstances does an accident and health insurance have the right to request an autopsy
o :## We're not prohibited by state law
Which of these annuity contract features is meant to discourage withdrawals and exchanges?
o :## Surrender charges
Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually reduces to
$0 after a stated amount of time?
o :## surrender charge
Which of the following is an example of defamation?
o :## Making a statement that is false or maliciously critical of the financial condition
of an insurer
Which report contains information regarding an individual's general reputation and credit standing?
o :## Consumer report
How are the premiums for an individually-owned disability income policy treated for tax purposes?
o :## Not tax-deductible at all
Which of these is NOT an underwriting responsibility of a life insurance agent?
o :## Determining the final rate classification
Disability income policies provide protection for which of the following
o :## Economic death
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What
type of insurance does Mike have?
o :## Accidental Death and Dismemberment
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The reason for backdating a policy is
o :## to obtain a premium rate based on an earlier age
According to ERISA regulations, a Summary Plan Description must be provided to a new plan member
within ___ days of the member's eligibility date.
o :## 90
A licensee who is required to take continuing education must complete 24 hours of continuing
education, which includes ___ hour(s) of ethics courseworks?
o :## 3
Group life insurance is typically issued as
o :## level term insurance
What is it in insurance contract that identifies individuals by relationship to a specific organization
o :## Group insurance
Insurance producer Kelly offers a $500 shopping card if a client purchases an insurance product through
her. What is this an example of?
o :## Rebating, which is an unfair trade practice
In a disability buy-sell agreement, the policies funding the agreement are owned by the
o :## Business entity
A group health certificate for coverage issued in Vermont MUST contain
o :## Summary of policy features and benefits
What does a 401(k) plan generally provide its participants?
o :## Salary-deferral option