Which of the following will have to meet an insurable interest requirement in order for a policy to issue?
Beneficiary
Jack and his wife Lyn just purchased a home with a 15-year mortgage. Wanting to make sure that Lyn would be able to pay off the mortgage balance in the event of Jack's death, Jack had a "temporary" need for life insurance. What type of policy should Jack
Term Life
Which type of life insurance is considered to be more risky based on its investment component?
Variable Life Insurance
Term life insurance should always be used in
buy / sell agreements
What is the most common component in all life insurance policies
death benefit
A beneficiary on a life insurance policy will receive what value upon the death of the insured?
death benefit
What allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?
living benefit
Living benefits on a life insurance policy can be typically be accessed via:
Regular Installments or Lump Sum
The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be __________.
Contracts of Adhesion
A(n) __________ in an insurance contract is a statement by the issuing insurance company that sets out the essential element of insurance - to pay for losses covered in the policy.
Insuring Clause
A business client is looking for ways to decrease its monthly premiums. To get down to the premium level sought after by the company, the agent realizes they have to go to a high deductible health plan. As part of your advice to the business, what should
Health savings accounts (HAS) are used with high deductible health insurance policies. With an HSA, money that is saved on the premium may be put into the account and then funds are used for certain medical fees. Because the funds in the HSA account can b
When constructing a major medical insurance policy, several criteria must be established, including:
While major medical insurance policies typically have high deductibles, these must be established in the policy as well as the maximum amount of out-of-pocket costs that will be paid by the policy holder. The elimination period is not part of a major medi
As a marketing tool, Ted, a health insurance agent, offered to send an applicant and his wife on a weekend vacation to a local resort to induce the applicant to purchase a policy. Is this practice permitted and, if not, what is it called?
Rebating is the act of offering an applicant an inducement to purchase insurance. It is prohibited as an unfair trade practice. Another example would be returning a portion of the applicant's policy premium from the agent's commission.
An agent is in need of generating business. He gets an idea of asking his client to let his policy lapse so that the agent can sell him a new similar policy. Is this permissible and, if not, what is this action called?
Twisting involves an agent suggesting that an individual let their current insurance coverage lapse in order to purchase a new policy, typically with similar benefits. It is a prohibited activity. In this case, the new policy does not necessarily benefit
A __________ is the amount that an insured person is expected to pay for a medical expense at the time of the visit.
Copayment
The "deductible" in a long-term care insurance policy is referred to as the __________.
A long-term care insurance policy's elimination period is the number of days that the insured must pay for services out-of-pocket until the insurance coverage begins to pay.
As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefits triggers for the policy holder in terms of benefit receipt if the insured were to break their hand?
Own Occupation
Social Security should be considered one's primary source of disability income coverage.
False. Although Social Security may provide disability benefits, in the majority of cases, these benefits are inadequate. Therefore, Social Security disability benefits should only be used to supplement an individual disability income policy.
All of the following are reasons to buy term life insurance except:
A. Survivor protection
B. Estate creation
C. Retirement income
D. Estate conservation
C. Retirement income
When an insured person receives a health insurance policy he has how many days to review and ask for a return of his/her premium?
A. 5
B. 10
C. 20
D. 30
B. 10
Short term policies have a benefit period of how long?
A. 13 weeks to 104 weeks
B. 24 weeks to 120 weeks
C. 12 weeks to 52 weeks
D. 15 weeks to 130 weeks
A. 13 weeks to 104 weeks
If an employee who has a group policy leaves his job, what type of health insurance is guaranteed to him?
A. Portability
B. COBRA
C. The company continues to pay insurance
D. The employee buys an individual plan
B. COBRA
Which of the following is part of the application?
A. Attending physician report
B. Consumer investigation
C. Medical Information Bureau
D. Agent repor
D. Agent report
Which of these applies to a standard risk classification?
A. Uses Mortality table
B. Fixes additional charge to premium
C. A lien is placed against the policy to reduce amount of insurance
D. Rates person on age, health, habit and occupation
D. Rates person on age, health, habit and occupation
What is a characteristics of term life insurance?
A. It is written for a specified period of time
B. Permanent protection
C. Builds cash value
D. Provides lifetime protection
A. It is written for a specified period of time
What is a characteristic of adjustable life?
A. Renewable term
B. Adjusts the face amount of the policy
C. Flexible premium
D. Has death benefit options
B. Adjusts the face amount of the policy
What is a per capita beneficiary?
A. A group beneficiary
B. When a person is too young to be a beneficiary
C. When the money is divided equally among the beneficiaries
D. When the beneficiary dies the proceed goes to heirs
C. When the money is divided equally among the beneficiaries
A type of short term insurance is
A. Accident policy
B. Catastrophic policy
C. Credit disability
D. Travel insurance
D. Travel insurance
Which of following is not an exclusion under a health policy?
A. Pre-existing conditions
B. Accident injury
C. Elective surgery
D. Intentional self inflicted injury
B. Accident injury
What is the type of insurance which pays for workers hurt in the course and scope of duty?
A. Medicare
B. Medicaid
C. Workers Compensation
D. Disability Social Security
C. Workers Compensation