Kentucky Life & Health Complete Guide

Kentucky Life & Health Complete Guide A complaint was lodged against a producer. The producer began explaining whole life insurance, then swayed the client to a term policy, without explaining the difference, and offered the client a cell phone if she bought insurance. Which would NOT pertain? Commissioner can subpoena client & producer to hearing. Producer may be liable for a penalty up to $5,000 for the first offense & $10,000 for each subsequent offense. Commissioner may revoke the producer's license before the hearing (only upon notice and opportunity for the hearing), if in the public interest. Charge the producer with a felony Charge the producer with a felony A contingent beneficiary is described as the: primary person who receives the death benefits if the insured dies person who receives the death benefits if the primary beneficiary dies before the insured person who receives the death benefits if there is no named beneficiary person whose approval is needed before a beneficiary designation is changed person who receives the death benefits if the primary beneficiary dies before the insured A Dread Disease policy is characterized by: low deductibles limited enrollment high deductibles limited coverage limited coverage A Health Reimbursement Arrangement MUST be established: with employee funding with other employer-sponsored benefit plans by the employer only during specific open enrollment periods by the employer A husband and wife own a life insurance policy with their son named as beneficiary. The wife dies first, followed by the husband 5 years later. Their son receives the policy's face amount after his father dies. What type of policy was owned? Family Maintenance Dual Life Joint Life Survivorship Life survivorship life A level premium indicates: the premium is fixed for a period stated in the contract, then becomes variable the premium can only be changed with the consent of the insurer the premium stays level until the policy's renewal date the premium is fixed for the entire duration of the contract the premium is fixed for the entire duration of the contract A life insurance policy that fails the 7-Pay Test is considered to be a Modified Endowment Contract. This type of policy will: lose certain tax advantages gain certain tax advantages experience tax-free gains no longer pay dividends lose certain tax advantages