OKLAHOMA LIFE & HEALTH INSURANCE - EXAM QUESTIONS & ANSWERS SCORED A+ TO PASS

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? A flat tax of 10% is owed on all proceeds Federal income tax is owed if proceeds exceed $250,000 No federal income tax is owed on life insurance proceeds Tax liability owed depends on the type of life insurance policy - Answer-No federal income tax is owed on life insurance proceeds A business will typically use which type of life insurance to cover their employees? Group policy Adjustable life policy Whole life policy Endowment policy - Answer-Group policy A change in an insurance application requires? an initial made by the produceran initial made by the applicant approval by the insurer submitting a new application - Answer-an initial made by the applicant A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) conditionally renewability clause optional renewability clause selective renewability clause cancelable clause - Answer-optional renewability clause A closed network plan offers a a primary physician copay of $25. If a subscriber chooses a primary care physician outside of the network, the subscriber will likely pay $0 $25 100% of the billed amount 100% of the allowed amount - Answer-100% of the billed amount A form of an accelerated death benefit is a?home care benefit nonforfeiture extended term benefit terminal illness settlement benefit cost of living benefit - Answer-terminal illness settlement benefit