Life, Accident, & Health State Exam Simulator Questions & Answers 100% Accurate

A Modified Endowment Contract (MEC) is best described as - ANSWER-A life insurance contract which accumulates cash values higher than the IRS will allow According to life insurance contract law, insurable interest exists - ANSWER-At the Time of the application Under Workers' Compensation, injured employees are covered for all of the following issues EXCEPT - ANSWER-Pain and suffering What happens when an insurance policy is backdated? - ANSWER-The policy's effective date is earlier than the present Key Person Disability Insurance pays benefits to the - ANSWER-Employer What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do? - ANSWER-In the event of employment termination, group health insurance can be kept if the employee pays the premiums Making a statement that is false or maliciously critical of the financial condition of an insurer is known as - ANSWER-Defamation Which of the following statements is CORRECT regarding an individual applying for life or health insurance? - ANSWER-The applicants medical history may be analyzed and reported Index whole life insurance contains a securities component that acts as a(n) - ANSWER-Hedge against inflation Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans? - ANSWER-Qualified long-term care plan