Which of the following statements about deferred annuity surrender charges is NOT
correct?
A deferred annuity owner has rights to his or her contract values but may be forced to
pay an insurer-imposed charge for withdrawing them.
Most deferred annuities apply them if the owner withdraws from, or surrenders, the
contract within a set period after he or she buys the contract.
The surrender charge is typically a declining percentage of the contract's
accumulated value.
Most deferred annuities apply surrender charges for all years after the contract is
issued.
Give this one a try later!
, Most deferred annuities apply surrender charges for all years after the
contract is issued.
Most deferred annuities apply surrender charges for only the first five to
ten years after contract issue.
A joint and survivor income option can allow the joint payees to choose a period
certain. Suppose the joint payees choose a ten-year period certain. If the second of
the joint payees dies before ten years of income payments are made, then what
happens?
The insurer pays the contingent payee for ten years.
The insurer pays the contingent payee for the balance of the ten-year period.
The insurer pays the contingent payee for five years.
The insurer stops payments.
Give this one a try later!
The insurer pays the contingent payee for the balance of the ten-year
period.
Why does an individual health insurance policy include a probationary period?
It helps the insurer to assess the level of risk being assumed.
It allows the insurer to verify the information provided on the application.
It helps the insurer avoid adverse selection.
It helps the insurer determine the insured's financial well-being.
Give this one a try later!
, It helps the insurer avoid adverse selection.
Which of the following best describes the premium tax insurance companies must pay
when they receive premiums?
It is imposed by the federal government.
It is a federally mandated tax that is collected at the state level by all states.
Most companies pass this tax on to their policyowners in some way, either directly or
indirectly.
Companies absorb these expenses and do not pass them along to policyowners.
Give this one a try later!
Most companies pass this tax on to their policyowners in some way, either
directly or indirectly.
Medicare supplement policies were originally designed to:
reduce fraudulent claims
address deficiencies in Part A coverage
address deficiencies in Part B coverage
assist with co-payments and deductibles
Give this one a try later!
assist with co-payments and deductibles
Medicare supplement policies help pay for the hospital, medical, or
surgical costs of persons eligible for Medicare by providing funds to pay
the deductibles and coinsurance.
, Which of the following types of business health insurance would serve the needs of
two business owners who want to fund their buy-sell plan in the event one of them
becomes totally disabled?
business overhead expense insurance
key person disability insurance
long-term care insurance
disability buy-out insurance
Give this one a try later!
disability buy-out insurance
Which of the following provisions states the insurer's promise to pay a specified
amount of benefit if a certain event occurs?
right to examine (free-look) provision
insuring clause
consideration clause
probationary period
Give this one a try later!
insuring clause
What does the entire contract provision state?
The policy is the contract between the insured and the insurance carrier.
The policy and any outside oral or written agreements form the contract between the
insured and the insurance carrier.
The entire contract consists of the policy, attached riders, and endorsements.
correct?
A deferred annuity owner has rights to his or her contract values but may be forced to
pay an insurer-imposed charge for withdrawing them.
Most deferred annuities apply them if the owner withdraws from, or surrenders, the
contract within a set period after he or she buys the contract.
The surrender charge is typically a declining percentage of the contract's
accumulated value.
Most deferred annuities apply surrender charges for all years after the contract is
issued.
Give this one a try later!
, Most deferred annuities apply surrender charges for all years after the
contract is issued.
Most deferred annuities apply surrender charges for only the first five to
ten years after contract issue.
A joint and survivor income option can allow the joint payees to choose a period
certain. Suppose the joint payees choose a ten-year period certain. If the second of
the joint payees dies before ten years of income payments are made, then what
happens?
The insurer pays the contingent payee for ten years.
The insurer pays the contingent payee for the balance of the ten-year period.
The insurer pays the contingent payee for five years.
The insurer stops payments.
Give this one a try later!
The insurer pays the contingent payee for the balance of the ten-year
period.
Why does an individual health insurance policy include a probationary period?
It helps the insurer to assess the level of risk being assumed.
It allows the insurer to verify the information provided on the application.
It helps the insurer avoid adverse selection.
It helps the insurer determine the insured's financial well-being.
Give this one a try later!
, It helps the insurer avoid adverse selection.
Which of the following best describes the premium tax insurance companies must pay
when they receive premiums?
It is imposed by the federal government.
It is a federally mandated tax that is collected at the state level by all states.
Most companies pass this tax on to their policyowners in some way, either directly or
indirectly.
Companies absorb these expenses and do not pass them along to policyowners.
Give this one a try later!
Most companies pass this tax on to their policyowners in some way, either
directly or indirectly.
Medicare supplement policies were originally designed to:
reduce fraudulent claims
address deficiencies in Part A coverage
address deficiencies in Part B coverage
assist with co-payments and deductibles
Give this one a try later!
assist with co-payments and deductibles
Medicare supplement policies help pay for the hospital, medical, or
surgical costs of persons eligible for Medicare by providing funds to pay
the deductibles and coinsurance.
, Which of the following types of business health insurance would serve the needs of
two business owners who want to fund their buy-sell plan in the event one of them
becomes totally disabled?
business overhead expense insurance
key person disability insurance
long-term care insurance
disability buy-out insurance
Give this one a try later!
disability buy-out insurance
Which of the following provisions states the insurer's promise to pay a specified
amount of benefit if a certain event occurs?
right to examine (free-look) provision
insuring clause
consideration clause
probationary period
Give this one a try later!
insuring clause
What does the entire contract provision state?
The policy is the contract between the insured and the insurance carrier.
The policy and any outside oral or written agreements form the contract between the
insured and the insurance carrier.
The entire contract consists of the policy, attached riders, and endorsements.
