missed coursework questions

 Reinstatement provision

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

 Family Maintenance policy 

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

Universal 

The cash value in a(n) ____________ Life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors.

insured

Who has the option to renew a Renewable Term policy?

surgical fees

Which of the following services is NOT included under hospitalization expense coverage?

church plans

What type of employee welfare plans are not subject to ERISA regulations?

additional death benefits

A Cost of Living rider gives the insured

The maximum amount considered eligible for reimbursement by an insurance company under a health plan 

Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?

equity index insurance

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?

life insurance policy

Which of the following is NOT a limited benefit plan?

Establishes the needs of the individual and his dependents 

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?

free-look period has expired

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT:

universal life

What type of life insurance incorporates flexible premiums and an adjustable death benefit?

anti-money laundering violation

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n):

salary-deferral contributions

What does a 401(k) plan generally provide its participants?

incarcerate a producer

All of these are powers of the Commissioner EXCEPT

cash surrender an existing life policy and purchasing a new life policy

An example of Life insurance policy replacement would be which of the following?

a signed statement by the applicant regarding the replacement

A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?

reduce the opportunity for misrepresentation and incomplete disclosure 

The Rules Governing Life Insurance and Annuity Replacements were created to

funded by admitted insurance companies through assessments 

The Life and Health Insurance Guaranty Association is

30

Any criminal charges taken against a producer must be reported to the Commissioner of Insurance by the producer within how many days of the final disposition?

Elected by the people of Mississippi 

How does the Commissioner of Insurance attain office?

long term care

An insured's inability to perform two or more activities of daily living may trigger which type of life policy rider?

variable universal life policy

A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a(n)

Pay face amount minus the past due premium 

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

20% is withheld for income taxes

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

discounted fees for the patient

A characteristic of Preferred Provider Organizations (PPOs) would be:

dread disease insurance

What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc.)?

interest on accumulations is taxed

How are policyowner dividends treated in regards to income tax?

keogh pension plan

A sole proprietor may use this plan ONLY if the employees of this business are included.

3 years

How long must every insurance producer maintain all records, books, and documents related to each insurance transaction?

benefits are taxable to T

T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?

by the employer 

A Health Reimbursement Arrangement MUST be established:

Send a notice to the MIB that the applicant was declined 

A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?

modified whole life

Which of these life products is NOT considered interest-sensitive?

variable

A(n) ______ Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities.

variable life

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

irrevocable

A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

policyowner

The __________ is authorized to assign a Life Insurance policy as collateral for a loan.

entire contract

A producer does not have the authority to change a policy or waive any of its provisions. The health provision that best describes this statement is called the

Insurance contract to the proposed insured 

What is being delivered during a policy delivery?

The insurance company 

A policy of adhesion can only be modified by whom?

Issue the policy with an altered Time of Payment of Claims provision 

Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?

Date the initial premium is collected 

K completes an application for a disability policy but does not pay the initial premium. The company approves the policy standard and the agent delivers the policy. K then pays her initial premium 3 days later. At what point does K’s policy take effect?

entire contract

Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?

beneficiary

T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the

hold a Life Insurance license and a Securities license 

Variable Life products require a producer to

Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered 

Which statement regarding the Misstatement of Age provision is considered to be true?

Reduced Paid-Up option 

Which of the following is an example of a nonforfeiture option?

business overhead expense

Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks?

capital sum

P loses an arm in a farm accident and is paid $10,000 from his Accidental Death and Dismemberment policy. This benefit is known as the

commercial insurers

Which of the following reimburses its insureds for covered medical expenses?

off-the-job accident

An accident policy will most likely pay a benefit for a(n):

health maintenance organization

A medical care provider which typically delivers health services at its own local medical facility is known as a:

Blanket health policies do not issue certificates 

The difference between group insurance and blanket health policies is:

immediate annuity

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices, EXCEPT a(n):

both an insurance and securities product

Variable Whole Life Insurance can be described as:

guaranteed renewable

a long-term care policy sold in MS must be

ordinary life

which of these contracts fall under replacement regulations?

evidence of insurability is required when the option is exercised

which of these statements about a guaranteed insurability option rider is NOT true?

policyowner

Who benefits in investor-originated life insurance (IOLI) when the insured dies?

Expires at the end of the policy period

Term insurance has which of the following characteristics?

15 year decreasing term

A 15-year mortgage is best protected by what kind of life policy?

marital deduction

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the:

will lose many of it s tax advantages

A policy that becomes a modified endowment contract (MEC):

deducted when the policy is discontinued

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Investor-Originated Life Insurance

A life insurance arrangement which circumvents insurable interest statutes is called:

insurance contract to the proposed insured

What is being delivered during a policy delivery?

upon receipt of the policy by the policyowner

The free-look provision begins

15

An insurer must provide an insured with claim forms within __ days after receiving notice of a loss

Payor Provision

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?

the schedule and amount of premium payments

The consideration clause of an insurance contract includes:

the premium is fixed for the entire duration of the contract

a level premium indicates

Straight life annuity

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n):

Underlying equity investments

A variable annuity has which of the following characteristics?