ILLINOIS LIFE LATEST
INSURANCE EXAM
A plan established by an eligible person for a non-working spouse -
ANSWERS-same contribution rules apply to the worker plan also apply
to the spousal IRA plan
(tax) contributions can - ANSWERS-sometimes be tax deducted (tax
qualified) Tax on earnings and/or interest is usually postponed until they
are withdrawn (tax deferred)
Tax Sheltered Annuities (TSA or 403b) - ANSWERS-may be
established by non-profit educational, religious, or medical organizations
for the benefit of their employees
TSAs are paid for by - ANSWERS-the employer/sponsor payroll
deducts the employee's contributions
(Tax) contributions to TSA plans can - ANSWERS-usually be tax
deducted (tax qualified) tax on interest, earnings and gains is usually
postponed until they are withdrawn (tax deferred)
END OF
PAGE
1
, ILLINOIS LIFE LATEST
INSURANCE EXAM
(tax) Group life insurance employer can - ANSWERS-deduct the
premiums paid by the employer on face amounts up to $50,000
Group life insurance is typically - ANSWERS-term life insurance
Group life insurance policyowners receive - ANSWERS-certificates
Group life insurance must include - ANSWERS-10 members of the
same employer, union, association, creditor
Adverse Selection - ANSWERS-is insuring too many health conditions
insureds have before the policy is issued causing premium rates to be
inadequate to pay claims
Enrollment Period is and requires: - ANSWERS-31 days after a new
member becomes first eligible. During the enrollment period new
members can enroll without health questions
If person does not enroll within the initial enrollment period and later
wants in the group - ANSWERS-there may be health questions at that
time
END OF
PAGE
2
, ILLINOIS LIFE LATEST
INSURANCE EXAM
Participation Requirements of Group life insurance - ANSWERS-all
eligible members must participate and 75% of all eligible members must
participate
Conversion period in group life insurance is - ANSWERS-31 day
conversion period after termination of group coverage
Grace period in group life insurance is - ANSWERS-31 day period after
premiums were due during which coverage is extended
2 year incontestability provision - ANSWERS-2 years after coverage
takes effect and a claim cannot be contested (denied) after that time
period due to any type of misstatement on the application
Consideration - ANSWERS-is the legal requirement that htere must be
an exchange of something of material value on the part of bot parties to
the policy
insured's premium and application is his or her consideration
issuing the policy is the insurance company's consideration
END OF
PAGE
3
INSURANCE EXAM
A plan established by an eligible person for a non-working spouse -
ANSWERS-same contribution rules apply to the worker plan also apply
to the spousal IRA plan
(tax) contributions can - ANSWERS-sometimes be tax deducted (tax
qualified) Tax on earnings and/or interest is usually postponed until they
are withdrawn (tax deferred)
Tax Sheltered Annuities (TSA or 403b) - ANSWERS-may be
established by non-profit educational, religious, or medical organizations
for the benefit of their employees
TSAs are paid for by - ANSWERS-the employer/sponsor payroll
deducts the employee's contributions
(Tax) contributions to TSA plans can - ANSWERS-usually be tax
deducted (tax qualified) tax on interest, earnings and gains is usually
postponed until they are withdrawn (tax deferred)
END OF
PAGE
1
, ILLINOIS LIFE LATEST
INSURANCE EXAM
(tax) Group life insurance employer can - ANSWERS-deduct the
premiums paid by the employer on face amounts up to $50,000
Group life insurance is typically - ANSWERS-term life insurance
Group life insurance policyowners receive - ANSWERS-certificates
Group life insurance must include - ANSWERS-10 members of the
same employer, union, association, creditor
Adverse Selection - ANSWERS-is insuring too many health conditions
insureds have before the policy is issued causing premium rates to be
inadequate to pay claims
Enrollment Period is and requires: - ANSWERS-31 days after a new
member becomes first eligible. During the enrollment period new
members can enroll without health questions
If person does not enroll within the initial enrollment period and later
wants in the group - ANSWERS-there may be health questions at that
time
END OF
PAGE
2
, ILLINOIS LIFE LATEST
INSURANCE EXAM
Participation Requirements of Group life insurance - ANSWERS-all
eligible members must participate and 75% of all eligible members must
participate
Conversion period in group life insurance is - ANSWERS-31 day
conversion period after termination of group coverage
Grace period in group life insurance is - ANSWERS-31 day period after
premiums were due during which coverage is extended
2 year incontestability provision - ANSWERS-2 years after coverage
takes effect and a claim cannot be contested (denied) after that time
period due to any type of misstatement on the application
Consideration - ANSWERS-is the legal requirement that htere must be
an exchange of something of material value on the part of bot parties to
the policy
insured's premium and application is his or her consideration
issuing the policy is the insurance company's consideration
END OF
PAGE
3
