Insurance Test, Part 3

Social security disability benefits are paid to persons expected to die or be disabled at least

12 months

Which is NOT a way one can become entitled to Social Security Disability benefits?

Be totally and permanently disabled for 1 month

In group life insurance, who is issued a certificate of insurance?

The participant

Life insurance policies written without a physical examination are called

Non-medical

Which type of insurance coverage has both a savings element and a flexible premium option?

Universal life

Which insurance policy provides a death benefit that matches the projected outstanding debt on an individual’s home

Mortgage redemption

The number of deaths during a year compared with the total number of of persons exposed in the class is known as

Mortality rate

The theory of probability is applied to life insurance through the use of

Mortality tables

The inured bought an annuity 10 years ago. He retires in 5 years. To determine the value of his annuity, he must multiply the value of the “accumulation units” he owns, times the value of the “separate account”. This type of annuity is known as a

Variable annuity

The increase in the probability of a loss resulting from an insured’s dishonest tendencies is known as

Moral hazard

A person authorized by and on behalf of an insurer who transacts life, disability, or life and accident and health insurance is defined as a

Life agent

Insurer expenses include all of the following except

Policy premiums

If an insurer must have its rates accepted by the Insurance Department prior to using them, the insurer would be operating in which of the following types of jurisdictions

Prior approval

What is it called when an insurer uses higher rates for an individual solely based on religion, race, or ethnic group

Unfair discrimination

The period of time in which a housewife, who has survived the death of her husband, will not receive income benefits from Social Security is called

“Blackout period”

A worker dies while credited with six quarters of the last 13 quarter period. What status does the worker have social security

Currently insured

Retirement benefits under social security are available only for workers who are:

Fully insured

Social Security provides protection against the financial consequences of all of the following, except

Poor investments

Which policy provision protects an insurer against a lawsuit before the insurer has the opportunity to investigate a claim

Legal actions

Under a group life insurance policy, acts of war and aviations are examples of

Policy exclusions