Louisiana Life And Health Final Exam.

When are group disability benefits considered to be tax-free to the insured? - Answer- When the recipient pays the premiums An insurable interest in each other's lives may exist in absence of an economic interest when the individuals are - Answer- Marriage partners What is the elimination period of an individual disability policy? - Answer- Time period a disabled person must wait before benefits are paid What happens to interest earned if the annuitant dies before the payout start date? - Answer- It is taxable In which of the following situations would the insurer be liable for a loss? - Answer- The insured suffered an injury as an innocent bystander during a bank robbery In what form do disability income policies typically pay benefits? - Answer- Periodic income Which of the following is typically NOT eligible for coverage in a group health policy? - Answer- Temporary employee Which of the following would be considered a possible applicant and contract policyholder for group health benefits? - Answer- Employer A Medicare Supplement Policy is - Answer- designed to fill in the gaps of Part A and Part B Medicare Under a Modified Endowment Contract, what are the likely tax consequences? - Answer- Pre-death distributions will become taxable In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following EXCEPT - Answer- Talking Which of the following is an annuity that is linked to a market-related index? - Answer- Equity-indexed annuity An insurer operating in the U.S. but headquartered outside the U.S. is - Answer- an alien insurer Group dental plans will frequently place a limit on annual benefits in order to minimize - Answer- adverse selection All of the following are considered to be fraud EXCEPT - Answer- collecting a charge for insura