2-15 Final Exam 2025
Study online at https://quizlet.com/_hlzey1
1. An employer pays $90 of a $100 group
disability premium, and the employee
pays the other $10. The disability ben-
efit under the plan is $1,000/month. If
900
the employee becomes disabled and re-
ceives the full benefit, how much, if any,
of the monthly benefit would be taxable
income?
2. Basic surgical expense policies gener-
miscellaneous expenses, such as lab
ally provide coverage for all of the follow-
fees and X-rays
ing EXCEPT
3. When surrendering whole life for a
reduced paid-up policy, the cash value of mature at age 100
the new policy will:
4. On August 9, Albert made an appli-
cation for life insurance that his agent
submitted a day later without a premi-
um payment. On August 21, the insurer
August 21
issued the policy as applied for and on
August 24, the agent delivered the poli-
cy and collected the initial premium. On
what day was the contract offer made?
5. Jackie and her husband, Bruce, have
an annuity that pays them $2,200 a
Bruce will receive payments for the rest
month. Under a joint and full survivor
of his lifetime.
payout option, if Jackie dies first which of
the following will occur?
6. All of the following statements regard- premiums for replacement policies are
ing policy replacement are correct EX- generally lower than premiums for the
CEPT existing policy they replace
7. Which of the following is CORRECT
Premium for life insurance used to se-
regarding taxation of life insurance pre-
cure a business loan is tax-deductible.
miums?
8. Which is not a primary premium fac-
dividends
tor?
, 2-15 Final Exam 2025
Study online at https://quizlet.com/_hlzey1
9. All of the following are characteris-
the parties to a group health contract are
tics of group health insurance plans EX-
the employer and the employees
CEPT
10. Assume four individuals, all age
30, purchase the following life insurance
policies. If all policies are still in force
ten years later, who will have the largest
Ralph
cash value in his policy? Bob $100,000
straight whole life Dennis $100,000 life
paid-up at 65 Ralph $100,000 20-pay life
Jack $100,000 life paid-up at 55
11. Roy has a renewable five-year
$100,000 decreasing term policy. Which The renewal premium will be higher than
of the following statements about the pol- the original premium.
icy's renewability is CORRECT?
12. Health maintenance organizations
preventive care
are known for stressing the provision of
the cash value becomes too small to pay
13. A universal life policy expires when
the cost of insurance
group coverage must be extended for ter-
14. As it pertains to group health insur-
minated employees up to a certain peri-
ance, COBRA stipulates that
od of time at the employee's expense
A policy that has named an irrevocable
15. Which of the following statements
beneficiary cannot be assigned without
regarding policy assignments is correct?
that beneficiary's agreement.
16. Jane, age 35, has just purchased a
20-pay whole life policy. When she turns cease paying premiums
55, she will
17. The time of payment of claims provi- claims must be paid after the insurer is
sion requires that notified and receives proof of loss
guarantees claims are paid if an insurer
18. The State Guaranty Association
becomes insolvent
19. Which of the following is NOT includ-
ed in the definition of "transacting insur- underwriting a policy
ance"?
Study online at https://quizlet.com/_hlzey1
1. An employer pays $90 of a $100 group
disability premium, and the employee
pays the other $10. The disability ben-
efit under the plan is $1,000/month. If
900
the employee becomes disabled and re-
ceives the full benefit, how much, if any,
of the monthly benefit would be taxable
income?
2. Basic surgical expense policies gener-
miscellaneous expenses, such as lab
ally provide coverage for all of the follow-
fees and X-rays
ing EXCEPT
3. When surrendering whole life for a
reduced paid-up policy, the cash value of mature at age 100
the new policy will:
4. On August 9, Albert made an appli-
cation for life insurance that his agent
submitted a day later without a premi-
um payment. On August 21, the insurer
August 21
issued the policy as applied for and on
August 24, the agent delivered the poli-
cy and collected the initial premium. On
what day was the contract offer made?
5. Jackie and her husband, Bruce, have
an annuity that pays them $2,200 a
Bruce will receive payments for the rest
month. Under a joint and full survivor
of his lifetime.
payout option, if Jackie dies first which of
the following will occur?
6. All of the following statements regard- premiums for replacement policies are
ing policy replacement are correct EX- generally lower than premiums for the
CEPT existing policy they replace
7. Which of the following is CORRECT
Premium for life insurance used to se-
regarding taxation of life insurance pre-
cure a business loan is tax-deductible.
miums?
8. Which is not a primary premium fac-
dividends
tor?
, 2-15 Final Exam 2025
Study online at https://quizlet.com/_hlzey1
9. All of the following are characteris-
the parties to a group health contract are
tics of group health insurance plans EX-
the employer and the employees
CEPT
10. Assume four individuals, all age
30, purchase the following life insurance
policies. If all policies are still in force
ten years later, who will have the largest
Ralph
cash value in his policy? Bob $100,000
straight whole life Dennis $100,000 life
paid-up at 65 Ralph $100,000 20-pay life
Jack $100,000 life paid-up at 55
11. Roy has a renewable five-year
$100,000 decreasing term policy. Which The renewal premium will be higher than
of the following statements about the pol- the original premium.
icy's renewability is CORRECT?
12. Health maintenance organizations
preventive care
are known for stressing the provision of
the cash value becomes too small to pay
13. A universal life policy expires when
the cost of insurance
group coverage must be extended for ter-
14. As it pertains to group health insur-
minated employees up to a certain peri-
ance, COBRA stipulates that
od of time at the employee's expense
A policy that has named an irrevocable
15. Which of the following statements
beneficiary cannot be assigned without
regarding policy assignments is correct?
that beneficiary's agreement.
16. Jane, age 35, has just purchased a
20-pay whole life policy. When she turns cease paying premiums
55, she will
17. The time of payment of claims provi- claims must be paid after the insurer is
sion requires that notified and receives proof of loss
guarantees claims are paid if an insurer
18. The State Guaranty Association
becomes insolvent
19. Which of the following is NOT includ-
ed in the definition of "transacting insur- underwriting a policy
ance"?
