Final Exam: Michigan Life and Health Question with 100 % correct answers | Verified | updated

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? A flat tax of 10% is owed on all proceeds Federal income tax is owed if proceeds exceed $250,000 No federal income tax is owed on life insurance proceeds Tax liability owed depends on the type of life insurance policy - No federal income tax is owed on life insurance proceeds A disability elimination period is best described as a - time deductible A dread disease policy is considered to be a type of - limited health insurance policy A fee for service health insurance plan will normally cover - a disease A field underwriter's main task is - to ensure an applicant's medical information is accurate and complete A form of medical health insurance covering the treatment and care of gum disease is called - Dental expense insurance A guaranteed issue insurance policy has no initial premium requirementincontestable period waiting period medical underwriting - medical underwriting A health insurance policy will typically cover - preventative health services A licensee who is required to take continuing education MUST include how many ethics coursework hours? - 3 A life insurance policy that is subject to a contract interest rate is referred to as - universal life A life insurance policy which contains cash values that vary according to its investment performance of stocks is called - Variable Whole Life A limited payment whole life policy provides - lifetime protection A master contract and certificate of coverage can be found in which type of policy? - Group A Medicare Supplement policy issued in the state of Michigan is required to provide each of the following EXCEPT - It must include outpatient prescription drug coverage A Modified Endowment Contract (MEC) is best described as - A life insurance contract which accumulates cash values higher than the IRS will allow A notice of cash surrender value must be sent to a Universal Life policyowner - at least annually A partial surrender is allowed in which of the following life policies? - Universal lifeA payment system for health care in which the provider is paid for each service given is called - fee-for-service A person covered with an individual health plan - is issued a policy A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan - A self-funded plan A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation? - Irrevocable beneficiary