SOCIAL SCIENCE BUSINESS INSURANCE UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

SOCIAL SCIENCE BUSINESS INSURANCE UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
Employer-provided group term life insurance is exempt from income taxation up to
Answer:
$50,000

Question:
Medicare Part B has an initial enrollment period. How many months after an individual's 65th birthday
month does this enrollment period end?
Answer:
3 months

Question:
Which statement is true regarding policy dividends?
Answer:
A dividend option is selected by the insured at the time of policy purchase

Question:
What does the insurance term "indemnity" refer to?
Answer:
Make whole

Question:
What is a common reason people purchase an annuity?
Answer:
To protect against the risk of outliving their financial resources

Question:
The importance of a representation is demonstrated in what rule?
Answer:
Materiality of concealment

Question:
Who does a life settlement broker represent?
Answer:
Individual wanting to sell their life policy to a third party

Question:
Who is financially liable for the payment of covered claims in a fully insured group health plan?
Answer:
Insurer

, Question:
The Human Life Value concept is based on
Answer:
income

Question:
Business Overhead Expense Insurance pays for
Answer:
business expenses when a business owner becomes disabled

Question:
At what point does a self-insured group qualify for stop-loss coverage?
Answer:
When claims exceed a specified limit in a set period of time

Question:
What percentage of eligible employees must participate in a noncontributory group health plan before it
can be put in effect?
Answer:
100%

Question:
A life insurance policy where the insured can choose where the cash value can be invested is called
Answer:
variable life

Question:
Which of these statements correctly describes risk?
Answer:
Pure and speculative risks are both insurable

Question:
The elimination period in a disability income policy serves the same purpose as a(n) ______ in a medical
expense policy.
Answer:
deductible

Question:
What is required after a life agent sells an insurance policy to an applicant without being appointed by the
insurer?
Answer:
Notice of appointment must be submitted to the Commissioner

Question:
Retirement plans are prevented from favoring highly compensated employees under which government
regulation?