Vermont Exam Practice Questions and Answers

Vermont Exam Practice Questions and Answers When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice? - ANSWER-Producer In a disability buy-sell agreement, the policies funding the agreement are owned by the - ANSWER- business entity The guarantee of insurability option provides a long-term care policy owner the ability to - ANSWER- buy additional coverage at a later date The Commissioner may suspend a producer's license when the producer - ANSWER-Rebates a portion of the commission to the insured ABC Corporation purchases and is beneficiary of an individual disability income insurance policy on a key employee. Which of the following statements is true? - ANSWER-Benefits are received tax-free by the company Which of these is NOT considered to be a cost connected with an individual's death? - ANSWER- Business expenses Which of the following is NOT a reason for a business to buy key person life insurance? - ANSWER-An increased pension liability if the key employee dies Mary is an employee who is covered with a disability income policy through her employer. She pays for the portion of the premium attributable to the cost of residual disability benefits, while her employer Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 2/30 pays for the remainder. What are the tax implications of this policy? - ANSWER-Residual benefits will be received income tax-free Which of these procedures is NOT designed for ambulatory care centers - ANSWER-Inpatient surgery In accident and health insurance, 60 days must pass after written proof of loss has been received by an insurer before the insured may... - ANSWER-Bring legal action against the insurer Which of the following is considered a Limited accident and health plan? - ANSWER-Cancer plan What is considered a valid reason for small corporations to insure the lives of its major stockholders? - ANSWER-Fund a buy-sell agreement A producer working for an insurance company may be personally liable for - ANSWER-acts performed which are prohibited in the agency contract When would evidence of insurability be required for a person already covered with a variable universal life policy? - ANSWER-When the death benefit is increased All of the following is information that is reasonably appropriate to determine the suitability of an annuity recommendation EXCEPT - ANSWER-Level of education According to the Affordable Care Act, new Health Insurance Marketplaces are established by the - ANSWER-CCIIO An individual accident and health insurance policy with premiums paid monthly has a minimum grace period of - ANSWER-10 days What is the MAXIMUM number of employees an employer may have for qualified medical savings accounts? - ANSWER-50 employees Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 3/30 Which statement is INCORRECT about the interest-only settlement option in a life insurance policy? - ANSWER-Interest on proceeds must be paid by the beneficiary Which of the following is considered to be a prosthodontic dental procedure - ANSWER-Bridgework A temporary license may be issued to producer - ANSWER-a personal representative of a deceased or physically ill producer to allow time for the representative to qualify for a permanent license Which statement about group life insurance is INCORRECT - ANSWER-Each participant requires evidence of insurability A producer must secure an appointment with an insurer - ANSWER-Before soliciting insurance applications for that insurer A life policy that has premiums that are lower than normal during the early years is called - ANSWER- Modified Life An individual, age 45, would like to help pay for his daughter's college expenses in 10 years. Which annuity would be appropriate for this individual? - ANSWER-Deferred annuity A producer who attempts to intimidate is engaging in - ANSWER-coercion A hold-harmless clause is an example of risk - ANSWER-Transfer A certificate of coverage for a group health policy is best described as - ANSWER-proof of coverage for the employee A retired couple would like to maximize the income derived from their combined life savings and have it payable until they both die. Which annuity would be their best choice? - ANSWER-Joint life annuity Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 4/30 Major Medical policies are typically characterized by which of the following - ANSWER-Flat deductible The benefit period of Medicare Part A begins on the first day the insured - ANSWER-enters a hospital Which of the these is NOT a true statement of the war exclusion - ANSWER-Civil insurrections apply Which of the following can be used to avoid the mandatory withholding tax on qualified plan distributions? - ANSWER-Conduit IRA How is an insured's accident and health claim handled by an