Study guides, Class notes & Summaries

How to Structure an Annuity Contract Which term refers to structured payouts that will liquidate an annuity's invested premiums and accumulated earnings over some period of time? - correct answer annuitization At Eileen's death, Winthrop received the death benefit payable under Eileen's annuity and chose to continue the contract in his name and continue to accrue tax-deferred accumulations. What was Winthrop's relation to Eileen? - correct answer He was her spouse. What kind of annuity s...

On what basis are benefits payable under a long-term care insurance policy typically triggered? A) the diagnosis of an acute medical condition B) the number and types of medications prescribed C) the inability to perform of medications prescribed D) all of the above - correct answer C) The inability to perform defined ADLs The inability to perform defined ADLs. Benefits payable under a long-term care policy are typically based on (or "triggered" by) the inability to perform a certa...

4-Hour Annuity Suitability and Best Interest StandardsWhat is the primary difference between fixed and variable annuities? a. the frequency of the product's premium payments b. the option for annuitization c. the ways in which their funds are invested for growth d. provisions for death benefits - correct answer c. the ways in which their funds are invested for growth; The primary distinction between fixed and variable annuities is how their funds are invested and how the funds grow. T/F:...

WebCE PE Only - Health Insurance Which of the following is NOT characteristic of a major medical plan? - correct answer coverage of cosmetic surgery Under a disability income insurance policy's social insurance supplement rider, what happens to the policy's benefit payments if the disabled insured qualifies for Social Security disability benefits? - correct answer The policy rider's benefit payments are decreased or terminated. Which is NOT a means by which the federal government cur...

WebCE Exam 1 Study - Annuities Shirley is financially responsible for her minor children but has never owned life insurance. She wants to purchase life insurance after being diagnosed with a possibly terminal disease. Which of the following characterizes her desire to purchase life insurance? a. clean sheeting b. warehousing c. material misrepresentation d. adverse selection - correct answer d. adverse selection Arthur is concerned that flying on a commercial airliner exposes him to the...

Annuity - WebCE Risk - correct answer Chance of loss 5 Risk or Loss Factors - correct answer 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: - correct answer Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: - correct answer To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may ...

WebCE Practice ExamsWhich medical plan covers doctor visits while the insured is in the hospital and physical therapy treatments following release from the hospital? limited medical policy basic hospital expense policy comprehensive major medical insurance supplementary major medical insurance - correct answer comprehensive major medical insurance A comprehensive major medical plan covers hospital expenses and doctor and surgeon fees. A basic hospital expense policy covers the cost of h...

Practice Exam WEBCE #2If Rick withdraws funds from his universal life insurance policy, what will be the effect on the policy's death benefit? - correct answer It will be reduced by the amount of the withdrawal. All of the following uses for life insurance in a business represent a valid insurable interest, EXCEPT: -Life insurance bought by businesses to cover the lives of their key employees or owners. -Life insurance used to provide funds in the event an insured key employee or partner ...

WebCE PE Only - Life Insurance As a legal contract, a life insurance requires all of the following elements, EXCEPT: - correct answer basis As a legal contract, a life insurance policy requires three elements: offer, acceptance, and consideration. With respect to annuity death benefits, all the following statements are correct EXCEPT: - correct answer If the owner of a indexed variable annuity dies during the accumulation period, there is no death benefit. If the owner or annuitant die...