Insurance and Annuities Quiz 4

Which of these actions should a producer take when submitting an insurance application to an insurer?

• Inform insurer of relevant information not included on the application

• Issue a binding receipt to applicant if no initial premium is submitted

• Disclose to the applicant the amount of commissions to be earned on this transaction

• Arrange for a copy of the Attending Physician Statement (APS) to be sent to the producer

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

• When the policy proceeds are paid

• At the time of application

• When the insured dies

• After the Contestable period

What is the purpose of the U.S.A. Patriot Act?

• detect and deter fraud

• detect and deter misrepresentations

• detect and deter alien insurance companies

• detect and deter terrorism

What is being delivered during a policy delivery?

• Insurance contract to the proposed insured

• A binding receipt to the proposed insured

• Policy summary sheet and disclosure material to the proposed insured

• Application and initial premium to the insurer

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

• Aviation exclusion

• Impairment rider

• Accidental Death Benefit rider

• Guaranteed Insurability rider

A non-contributory plan requires ____ participation of all eligible employees.

• 75%

• 100%

• 25%

• 50%

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a:

• $25,000 individual term life policy

• $25,000 modified whole life policy

• $125,000 individual whole life policy

• $25,000 individual whole life policy

Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?

• Certificate of insurance

• Receipt of coverage

• Master policy

• Individual policy

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

• Nothing

• Half the premium paid in a year

• The annual premium divided by the number of employees

• The entire premium paid in a year

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

• Eligible

• Contributory

• Noncontributory

• Noneligible