missed life insurance questions pt.4

A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT

fare-paying passenger

Which of these is NOT considered to be a common life insurance nonforfeiture option?

Life income annuity

All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT

Reduction of Premium

All of these are common exclusions to a life insurance policy EXCEPT

accidental death

Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE?

Net death benefit will be reduced if the loan is not repaid

Life insurance policies will normally pay for losses arising from

commercial aviation

Which of the following is considered to be an alternative to a life settlement?

Accelerated death benefit rider

Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy?

interest only

Which situation accurately describes a reduced paid-up nonforfeiture option?

Policy has a decreased face amount

What is the purpose for having an accelerated death benefit on a life insurance policy?

It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill

All of the following riders can increase the death benefit amount EXCEPT

Waiver of Premium

A guaranteed issue insurance policy has no

medical underwriting

All of these are valid policy dividend options for a life insurance policyowner EXCEPT

buy additional insurance coverage

Loans obtained by a policyowner against the cash value of a life insurance policy

would not be treated as taxable income

Of the following dividend options, which of these is taxable?

Accumulation at interest

What is an insurance policy's grace period?

Period of time after the premium is due but the policy remains in force

Which of these would limit a company's liability to provide insurance coverage?

exclusion

Which of the following does Coordination of Benefits allow?

• Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid

An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim.

15

Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.

20

This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes

* the entire insurance contract between the parties

All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT

* Health Reimbursement Arrangement Plan

Which of the following is NOT included under a health benefit plan?

hospital indemnity plan

What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?

no tax payment needed

Distributions from a Health Savings Account (HSA) for qualified medical expenses are

tax free

Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?

hospital indemnity

Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be

optionally renewable

Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered

noncancellable

Which of the following is NOT a required provision in an accident and health insurance policy?

change of occupation

All of the following are examples of a Business Continuation Plan EXCEPT

a deferred compensation

All of these are characteristics of a universal life insurance policy EXCEPT

• Fixed surrender value

A life insurance policy that is subject to a contract interest rate is referred to as

universal life

The premium for a Modified whole life policy is

lower than the typical whole life policy during the first few years and then higher than typical for the remainder

the primary use of an annuity is

provide income for retirement

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?

Reduction of premium dividend option

All of the following riders can increase the death benefit amount EXCEPT

waiver of premium

Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?

accumilation at interest option

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

The face amount and policy premium are not affected by the payment