How are the premiums for an individual disability income policy and a Medicare supplement policy treated on a tax basis?
Medicare supplement premiums are deductible, disability income premiums are not deductible.
Which of the following statements is not true about non-qualified retirement plans?
Taxes cannot be deferred on a lump sum payment.
Which dividend option may offset some or all of the benefit reduction caused by loans from a participating whole life plan?Which of the following statements is not true about non-qualified retirement plans?
One-year term option
Which of the following is not a settlement option in a life insurance policy?
Extended term option
When does the waiver of premium rider take effect?
At the moment of the disability
Janice has received a contract that defines the agreement in explicit terms. Signing the contract will allow her to represent the agency. This is an example of:
Express authority
All of the following are federal income tax free transactions for a life insurance policy, EXCEPT:
Gain on policy surrender value
A noncancellable policy is most likely a:
Individual disability income policy
All of the following are annuity purchase premium payment choices, EXCEPT:
Fixed premium
All of the following exchanges would qualify under Section 1035 of the Internal Revenue code, EXCEPT:
Vacant land for another piece of vacant land
Which of the following is an annuity payout option?
All of the above
A hazard is best defined as:
Something that increases the chance of loss
Which of the following is a difference between a limited-pay whole life policy and a straight life policy?
The premiums are higher
A person becomes eligible for Medicare when:
Part A is automatic for all persons reaching Age 65.
Which of the following is not a case in which life insurance proceeds would be included in the deceased's estate?
The deceased's wife was the beneficiary.
If the Director denies an application for a license, the applicant has how many days to request a hearing?
30 days
HIPAA requirements deal with, on a federal level, groups of what size?
50 or more
If an employer pays the entire cost of the group health insurance premiums, which of the following is true regarding the taxation of premiums and benefits?
Premiums are tax-deductible to the employer and benefits are not taxable to the employees.
What of the following is NOT a potential outcome to the benefits of the annuity if the annuitant dies before the start of the annuity payments?
The company could keep the money.
Insurance contracts are unique because they contain all of the following characteristics, EXCEPT:
Ambiguity in a contract of adhesion
All of the following correctly describe risk pooling, EXCEPT:
Loss sharing spreads risk by sharing the possibility of loss over a small number of people.
Which of the following policies is a special risk policy?
Travel accident
Which of the following statements is not true about a retirement income annuity?
It is an ordinary immediate annuity.
Which of the following would be considered a limited benefit policy?
A travel accident policy
Which of the following is usually the owner of the annuity?
The annuitant
A major medical plan will provide benefits for all of the following losses, EXCEPT:
Experimental drugs or treatments
All of the following are true about market value adjusted annuities, EXCEPT:
This is not a fixed contract.
A qualified retirement plan that blends an IRA with a profit-sharing plan and allows the employer to deduct up to 25% of contributions made to all employees is called a:
SEP
Which of the following is not true regarding SIMPLE plans?
Contributions are vested after 5 years.
Fraternal benefit societies are described by all of the following, EXCEPT:
They include stock and mutual companies.
Which of the following contains elements that are part of every legal contract?
Agreement, Consideration, Competent parties, Legal purpose