Incorrect Help for LAH (Final)

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

1. Rebating

2. Misrepresentation

3. Coercion

4. Defamation

1. Coercion

Producers must complete a total of ___ Continuing Education credits for each two-year licensing period.

1. 36

2. 12

3. 24

4. 48

24

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called

1. Nonforfeiture

2. Rollover

3. Reinvestment

4. Replacement

Replacement

In a Long-Term Care policy, the right-to-examine period is

1. 45 days

2. 10 days

3. 30 days

4. 60 days

30 days

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

1. Paid-up option rider

2. Extended insurability rider

3. Additional coverage rider

4. Guaranteed insurability rider

1. Guaranteed insurability rider

A type of insurer that is owned by its policyowners is called

1. stock

2. domestic

3. mutual

4. in-house

mutual insurer

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

1. 10

2. 15

3. 25

4. 20

15 days

Fraternal Benefit Society

A type of organization that provides insurance benefits to its members, typically based on a common nationality, religion, or ethnicity. Members often share a fraternal bond and financial benefits are distributed among them.

Fraternal Benefit Society has each of the following characteristics EXCEPT

1. Exist for the benefit of its members

2. Exist For profit

3. Incorporated

4. Without capital stock

1. Exist For profit

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the maximum penalty for this?

1. $5,000

2. $0

3. $10,000

4. $15,000

The maximum penalty for violating privacy provisions under the McCarran-Ferguson Act is $10,000. McCarran-Ferguson Act: federal law delegating the regulation and taxation of the insurance industry to individual states rather than the federal government.

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

1. adjustable life

2. group life

3. term life

4. universal life

1. universal life

Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium?

1. 14 day waiting period / 5 year benefit period

2. 28 day waiting period / 10 year benefit period

3. 28 day waiting period / 5 year benefit period

4. 14 day waiting period / 10 year benefit period

1. 14 day waiting period / 10 year benefit period

During the accumulation period, who can surrender an annuity?

1. Policyowner

2. Annuitant

3. Beneficiary

4. Payor

1. Policyowner

Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?

1. Nonforfeiture Option

2. Section 1035 exchange

3. Spendthrift Option

4. Section 1040 exchange

1. Section 1035 exchange

What is the nonforfeiture value of an annuity before annuitization?

1. All premiums paid plus interest

2. All premiums paid, plus interest, minus any withdrawals and surrender charges

3. All premiums paid

4. All premiums paid minus any withdrawals and surrender charges

1. All premiums paid, plus interest, minus any withdrawals and surrender charges

Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n)

1. 1040 Exchange

2. Endowment Exchange

3. Modified Exchange

4. 1035 Exchange

A 1035 Exchange, named after Section 1035 of the Internal Revenue Code, allows a policyholder to exchange one insurance or annuity contract for another of "like kind" without triggering immediate income tax on any accumulated gains.

The time limit for filing claim disputes is addressed in which provision of an accident and health policy?

1. Legal actions

2. Payment of claims

3. Time of payment of claims

4. Entire contract

1. Legal actions

The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called

1. noncancelable

2. cancelable

3. conditionally renewable

4. optionally renewable

cancelable

What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?

1. Specified amount of money

2. Policy's cash value

3. Policy Dividend

4. Funeral expense fund

1. Specified amount of money

Generally speaking, which three levels of care are Long-Term Care policies provided with?

1. Disability, acute care, and hospitalization

2. Skilled nursing, intermediate, and custodial care

3. Accident, medical care, and rehabilitation

4. Psychological, acute care, and assisted living

Skilled nursing, intermediate, and custodial care

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

1. Cross-purchase agreement

2. Key person insurance

3. Deferred Compensation

4. Stock Redemption Plan

Deferred Compensation

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

1. Taxable as regular income to the employee

2. Taxable to the employee when they exceed 7 1/2 % AGI

3. No tax payment needed

4. Tax-deductible expense to the employee

1. No tax payment needed