Life and Health Insurance 8

Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually reduces to $0 after a stated amount of time?

a. Surrender charge 

b. Progressive fee 

c. Premature withdrawal charge 

d. Cancellation fee

What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period?

a. Subject to market value adjustment

b. Subject to no adjustments

c. Subject to a surrender charge only

d. Cash value is forfeited

Which of the following best describes the presumptive disability provision?

a. Reduces the incontestability period

b. Increases the monthly benefits stated in the policy

c. Waives the typical total disability requirements

d. Assumes all injuries result in total disability

Inpatient psychiatric care is covered under Part A Medicare for 190 days per

a. admission 

b. year 

c. benefit period 

d. lifetime

If an insured legally adopts a baby within ___ month(s) of birth, the maternity coverage for the child's birth is covered.

a. 1 

b. 6 

c. 12 

d. 18

Employer-paid qualified long-term care insurance premiums are typically

a. deducted from the employee's net income

b. included in the employee's gross income

c. included as a dividend to the employee

d. excluded from the employee's gross income

A single-life annuity only has ONE

a. annuitant 

b. benefit payment 

c. premium payment 

d. beneficiary

Which of the following is NOT included as a hospice benefit under a major medical plan?

a. Home-based services

b. Counseling

c. Rehabilitation

d. Pain management

During the application process, a statement made by an applicant that becomes part of the contract is considered to be a(n)

a. warranty 

b. representation 

c. waiver 

d. exclusion

An insured, age 67, is covered under a disability income policy. What will the insurer normally require in order for the insured to continue coverage?

a. The insured must submit to a physical examination on an annual basis

b. The insured must be actively at work for a specified number of hours per week

c. The insured must remain in the same occupation

d. The insured must continue working for the same employer

Where is the difference between a standard risk and a substandard risk reflected?

a. Backdating

b. Coverage is not offered

c. Premium charges

d. Back-end charges

Terry suffers an injury at his workplace which is covered by workers compensation. Terry also has a medical expense insurance policy. Under medical expense insurance policies, losses that are covered by workers compensation are typically

a. excluded from coverage

b. partially covered

c. covered, but requiring a higher deductible and copay

d. subject to age restrictions

A policyowner is permitted to take out a policy loan on a whole life policy at what point?

a. When the policy has a cash value

b. When the policy has been in force 2 years

c. When the cash value equals the face amount

d. When the policyowner has demonstrated financial need

Which statement regarding universal life insurance is correct?

a. Cash value accumulations have a guaranteed minimum interest rate

b. Policyowner can change the face amount but not the premium

c. Policyowner can change the premium but not the face amount

d. Partial withdrawals cannot be made from the policy's cash value

A retired couple would like to maximize the income derived from their combined life savings and have it payable until they both die. Which annuity would be their best choice?

a. Fixed annuity

b. Survivorship annuity

c. Joint life annuity

d. Joint and survivor annuity

The Optionally Renewable provision allows what party to cancel the contract?

a. The policyowner

b. The insured

c. The insurer

d. Either the insurer or policyowner