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AD Banker Retention Questions Ch 6

Total questions: 8

Worksheet time: 5mins

Name
Class
Date
1.

In a group life insurance plan, the employee has control over which of the following?

a)

Choice of insurance company

b)

Type of policy

c)

Choice of beneficiary

d)

Mode of premium payments

2.

The Master Policy for a group life plan goes to the employer. What does the employee receive?

a)

Certificate of Insurance

b)

Change of beneficiary form

c)

Copy of the Master Policy

d)

Claim form package

3.

When a group insurance plan is identified as contributory, it means all of the following EXCEPT:

a)

Employees pay a portion of the cost of their benefit

b)

Employers must enroll 100% of eligible employees

c)

Employees must be eligible to participate

d)

Employers are responsible for collecting the premiums employees pay

4.

In a credit life plan, who is the beneficiary?

a)

The wife of the insured

b)

The husband of the insured

c)

The children of the insured

d)

The creditor

5.

Industrial life insurance is typically sold in face amounts of? *

a)

$1,000 or less

b)

$5,000 multiples

c)

$10,000 to $20,000

d)

Up to $50,000

6.

One of the purposes of a Buy-Sell Agreement is which of these?

a)

To provide the business with funds in the event of the death of a key person who is not an owner

b)

It describes which relatives of a business owner have the right to purchase that person's interest in the business

c)

It acknowledges the commitments of the partners to each other and to their heirs to assure the continuation of the business in the event one of them dies unexpectedly

d)

It describes the conditions that will force a sale of the business, as well as the requirements to be met if the business wants to buy the assets of a competitor

7.

A primary purpose of key person life insurance is to do which of these?

a)

Provide the family of the deceased employee with up to ten years of the employee's lost future income

b)

Provide the business with money to recruit and train a replacement employee

c)

Provide the business with money to pay vested retirement benefits to the heirs of the employee as a lump sum

d)

Protect the business against the death of any employee earning at least $50,000 per year

8.

In order for a worker to be qualified for all benefits available from Social Security how many credits must be earned?

a)

30 credits

b)

6 credits in the last 13 quarters

c)

1 credit for each year of work between age 20 and 40

d)

40 credits