missed general life insurance questions pt.1

A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the

reinsurer

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

mutual

ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is called

reinsurance

An insurer's ability to make unpredictable payouts to policyowners is called

liquidity

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?

$10k

In an insurance contract, the element that shows each party is giving something of value is called

consideration

Who is responsible for assembling the policy forms for insureds?

insurance carriers

Which contract element is insurable interest a component of?

legal

Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)

concealment

Which of the following is considered to be an event or condition that increases the probability of an insured's loss?

hazard

The cause of a loss is referred to as a(n)

peril

what is risk?

uncertainty of loss

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?

Business overhead expense policy

A disability elimination period is best described as a

time deductible

Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan?

Taxes must be paid on 75% of the benefits received

What percentage of a participant's income are group long-term disability benefit amounts typically limited to?

60%

The factor used most often when underwriting a disability income policy is

annual earnings

The waiting period for a disability insurance policy

excludes payments for a short-term illness or injury

The waiver of premium does NOT include which provision?

All future premiums are waived if the insured recovers from the disability

Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation?

Own occupation clause

What is the elimination period of an individual disability policy?

Time period a disabled person must wait before benefits are paid

example of presumptive disability

deafness

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

14 day waiting period / 10 year benefit period

Tyler purchased a disability policy with a waiver of premium rider on April 1. He is disabled on May 1. On June 1, he receives proof of permanent and total disability, and submits a claim. He begins receiving benefits on June 15. When are his premiums waived?

Premiums are waived beginning at the date of disability.

Which of the following statements regarding Group Disability Income insurance is TRUE?

Group Disability Income insurance provides benefits for nonoccupational illnesses and injuries. Occupational illnesses and injuries are typically covered by workers' compensation insurance.

Which type of disability would be less than total impairment and equal to permanent impairment?

Permanent partial disability

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing

benefit limits

Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a

Presumptive disability

Which of the following is present when an applicant stands to lose value if the insured dies?

Insurable interest

Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this?

Guaranteed insurability rider

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?

Partial disability

Which disability policy provision would address any concerns of the value of the benefits decreasing over time?

Cost of living benefit

what is presumptive disability

• typically requires the loss of two specified limbs or the total and permanent loss of a major sense or function.