Life, Health, Variable Annuity Review Questions and Correct Answers

Life, Health, Variable Annuity Review Questions and Correct Answers The purpose of Disability Income insurance is to provide: protection against economic death Old Man AnnaCee, 67 yrs old, has had a policy for 16 years. In addition to his regular grace period he will have an additional grace period of how many days? 30 days 21 days 31 days there are no additional days 21 days Which premium factor is not common to both life and health insurance? 1. age & sex 2. dividends 3. morbidity 4. amount of protection morbidity Which of the following transactions would not result in a taxable event according to the 1035 exchange rules? exchanging an annuity contract for a life insurance contract exchanging an insurance contract for a mutual fund with the same company exchanging a life insurance contract for an annuity contract exchanging an endowment contract for a life insurance contract with the same company exchanging a life insurance contract for an annuity contract A field underwriter: decides who will be issued the policy. is responsible to agents in the field. is the agent. supervises agents in the field. is the agent On May 8, a prospect filled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14 and issued the policy on May 15. The agent delivered the policy on May 26 and collected the first premium. The coverage became effective on: May 8 May 14 May 15 May 26 may 26 Which is true concerning a VARIABLE LIFE insurance policy? It provides a minimum guaranteed death benefit. Benefits vary and are linked to the Dow-Jones stock averages. It has a guaranteed minimum cash value. Premiums and benefits are both variable. it provides a minimum guaranteed death benefit Eustis had a $2000 per month disability policy with a benefit period to age 65 and a 6 month waiting period. She became disabled at age 64 1/2. How much would she receive? $2000 $1000 $12000 Nothing Nothing To help protect a Long Term Care policy from an unintentional lapse, all of the following are true except: There must be a grace period of at least 30 days. A notice must be sent to the policy owner and a secondary addressee. The insured may reinstate for at least five months from the date of lapse if lapse was due to a cognitive impairment or confinement in a care facility for more than 60 days. Insurance companies must notify the owner of the right to designate a secondary addressee at least every six months. Insurance companies must notify the owner of the right to designate a secondary addressee at least every six months. While New Mexico Life Insurance Company is domiciled in Arizona and operating in the state of Florida, it would be considered by the state of Florida to be a/an: A Foreign Company. A Domestic Company. An Alien Company. A nonadmitted company. A Foreign Company. Which of the following is NOT true concerning the Florida Insurance Guarantee Fund? 1. All life, health, and annuity insurers are members as a condition of their authority to transact insurance in Florida 2. Residents of other states whose company is domiciled in Florida 3. It does not cover Health Maintenance insurance 4. It automatically covers contracts covering Medicare Parts C & D It automatically covers contracts covering Medicare Parts C & D With which mode of payment are disability income benefits paid? Monthly Quarterly Semiannually The insured chooses the mode of payment. Monthly Mary's age on the application for a $100,000 life insurance policy indicates that she is 31 when in fact she is actually 30 years old. This fact was discovered after her death. Which course of action would the company take? Increase the death benefit to what the premium would have purchased for a 30 yr old woman Pay the $100,000 and return the over charged premium Pay the $100,000 Lower the death benefit to what the premium would have purchased for a 30 yr old woman Increase the death benefit to what the premium would have purchased for a 30 yr old woman If a group life insurance contract is canceled the insurance company must notify the employees but can take this action by notifying the employer must notify each of the employees within 30 days must notify each of the employees within 14 days can not cancel the contract because of the Affordable Health Care Act must notify the employees but can take this action by notifying the employer