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What type of policy is typically issued without proof of insurability from the insured? - ANSWER Group policy A whole life policy that requires that the Policyowner only pays premiums for a specified number of years is known as what type of policy? - ANSWER Limited-pay whole life Who is entitled to the cash values in an insurance policy? - ANSWER The Policyowner An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significa...

An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? $500 $5,000 $5,400 $5,600 - ANSWER $5,000 Which of these is NOT subject to income taxation under Modified Endowment Contract (MEC) Loan against the cash value Policy withdrawal Policy Dividend Death Benefit - ANSWER Death benefit An indemnity plan Pays both the insured and health care provider P...

A life insurance company has transferred some of its risk to another insure. The insurer assuming the risk is called - ANSWER all of the following are examples of business continuation plan except - ANSWER Deffered Compensation All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy...

The term describing the insured's notification to the insurer requesting payment for a covered loss is: a. Limit of liability b. Premium c. Claim d. Deductible - ANSWER An insurance claim is the insured's notification to the insurer that a payment is requested for a covered loss. The correct answer is: Claim Which of the following is the consideration an insured pays for insurance coverage? Select one: a. Deductible b. Premium c. Limit of liability d. Coinsurance - ANSWER Pr...

Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans? - ANSWER Qualified Long-Term Care plan All _____ policies must be guaranteed renewable. - ANSWER long-term care An attending physician's statement would be appropriate for which life insurance purpose? - ANSWER At the request of the insurer to assist in the underwriting

Which statement best describes the tax responsibilities under a Business Overhead policy? - ANSWER Premiums are deductible, benefits are taxed In which type of insurance company may stockholders share in the profits and losses of the insurer? - ANSWER Stock In which company may policy owners receive policy dividends when there is a profit? - ANSWER mutual

Absolute Assignment - ANSWER The assignment by the policy owner of all control and rights to a third party. This differs from collateral assignment, which allows all the rights and control to revert to the owner once a loan is paid off Accident - ANSWER A fortuitous event; unforeseen and unintended Accidental Death Insurance - ANSWER A form of health insurance that provides payment if death of the insured results from accident. Accidental death insurance is often combined with dismembermen...

4 Types of death - ANSWER Natural, Accidental, Homicide, Suicide Whole Life Policy - ANSWER Locked in rate,Higher premium, will not expire until passed away Term Life - ANSWER Lower premium, will expire @ a certain time. No benefit is payable if the insured survives to the past the end of the term. 2 Different Types of Life Insurance - ANSWER Whole Life & Term Life

Which type of rider pays out a capital sum in case an insured loses a limb or their eyesight? - ANSWER Accidental Death and Dismemberment If a policyowner of a convertible term life insurance policy exercises his/her right to convert, which of the following will happen? - ANSWER The term policy will be replaced by a permanent life insurance policy Which of the following is NOT a purpose of the rule regarding replacement of Life Insurance? - ANSWER Regulate the replacement of Insurance

An employee earns $12.50 per hour. What is the gross pay of this non-exempt employee who works 45 hours during a holiday week, and receives 8 hours additional pay for the holiday? A.$562.50 B.$662.50 C.$693.75 D.$743.75 - ANSWER C.$693.75 Which of the following statements about a sole proprietorship is TRUE? A. The business, or any part of it, can be sold, altered, or exchanged at will. B. The business will survive the death of the owner.