WorksheetscHAPTER 4-7
Total questions: 20
Worksheet time: 16mins
In a life settlement contract, whom does the life settlement broker represent?(Chapter 4)
A The insurer
B The beneficiary
C The life settlement intermediary
D The owner
An IRA purchased by a small employer to cover employees is known as a? (Chapter 4)
A 403(b) plan.
B 401(k) plan.
C Simplified Employee Pension pla
D Defined contribution plan
3: An employee has group life insurance through her employer. After 5 years, she decides
to leave the company and work independently. How can she obtain an individual policy?
A She can only convert her coverage without proof of insurability if she has the master policy.
B She must apply for a new policy, which requires her to provide proof of insurability
C She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the
group plan.
D She will still be covered under the group plan, but will have to pay an individual policy premium
A life insurance policy used to fund an agreement that contractually establishes the
intent of someone to purchase a business upon the insured business owner's death is a
A Stock redemption plan
B Buy-sell agreement
C Key person policy
D Split-dollar plan.
What is the main purpose of the Seven-pay Test?
A It guarantees the minimum interest.
B It determines if the insurance policy is a MEC.
C It requires level premium payments for 7 years.
D It ensures that the policy benefits are paid out in 7 years
CHAPTER 5 1: In a replacement situation, all of the following must be considered EXCEPT
A Exclusions.
B Assets.
C Benefits.
D Limitations.
Whose responsibility is it to determine if all of the questions on an application have
been answered?
A The applicant
B The beneficiary
C The agent
D The insurer
What is the term used for an applicant’s written request to an insurer for the company
to issue a contract, based on the information provided?
A Policy Request
B Insurance Request Form
C Request for Insurance
D Application
Which of the following entities can legally bind coverage?
A Agent
B Insurer
C The insured
D Federal Insurance Board
Only insurers, not agents, can bind coverage
An insurer is attempting to determine the insurability of an applicant and decides to
obtain medical information from several different sources. Which entity must be notified
of the investigation?
A The applicant
B The Commissioner of Insurance
C The medical examiner
D The State Department of Insurance
CHAPTER 6. What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?
Grace period
Probationary period
Contestable period
Elimination period
An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage
$25
$25.50
$100
$102
An insured purchased a disability income policy with a 10-year benefit period. The policy stated a 20-day probationary period for illness. If the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay?
It will pay until the insured is released from the hospital. .
Nothing; illness is not covered during the first 20 days of the contract.
The insured will receive a return of premium.
It will pay up to 10 years of benefits
The corridor deductible derives its name from the fact that it is applied between the basic coverage and the
Limited coverage. .
Major medical coverage.
Comprehensive expense coverage
Interval expense coverage
A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT
Limb.
Life.
Income.
Eyesight
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital
Medigap
Indemnity
Surgical
Blanket
CHAPTER 7
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
As soon as possible
Within 60 days
Within 90 days or as soon as reasonably possible, but not to exceed 1 year
Within 20 days
Insured Z's health insurance policy year begins in January. His policy contains a carryover provision. In November, he has a small claim which is less than his deductible. Which of the following is true
The insured is now eligible for an integrated deductible until the new policy year. .
The insured must satisfy this year's deductible, but next year’s deductible will begin when or if he makes a claim in the following calendar year
The insured may carry over the amount of this year’s expenses to next year, which will help satisfy next year’s deductible.
The deductible will be waived.
What statement best describes the free look provision?
It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason.
It allows for the proposed insured to carefully look over the policy before applying for it
It allows the company to obtain an inspection and medical examination on the proposed insured prior to issuing the policy.
It allows the proposed insured to carefully look over the application prior to filling it out.
A guaranteed renewable disability insurance policy
. Cannot be cancelled by the insured before age 65.
Is renewable at the insured's option to a specified age.
Is renewable at the option of the insurer to a specified age of the insured.
Is guaranteed to have a level premium for the life of the policy
