In order for a contract to be valid, it must: - CORRECT ANSWER-Contain an offer &
acceptance
When does a nondisabled person first qualify for a
... [Show More] Medicare Supplement Policy? -
CORRECT ANSWER-Age 65
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the: - CORRECT ANSWER-Reinsurer
A common exclusion with vision plans is: - CORRECT ANSWER-Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health
history? - CORRECT ANSWER-Representation
States that have "no loss, no gain" laws require a replacing policy to: - CORRECT
ANSWER-Pay for ongoing claims under the policy it replaces
A rehabilitation benefit is intended to: - CORRECT ANSWER-Prepare the insured to
return to employment
Which of the following does coordination of benefits allow? - CORRECT ANSWER-The
secondary payor to reduce their benefit payments so no more than 100% of the claim is
paid
An insurer may pay a commission in which of the following scenarios: - CORRECT
ANSWER-To a licensed producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? - CORRECT
ANSWER-The insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - CORRECT ANSWER-Protect
consumers with guidelines regarding credit reporting and distribution
J is a producer who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of? - CORRECT ANSWER-Twisting
What is implied authority defined as? - CORRECT ANSWER-Authority that is not
specifically given to an agent contract, but that an agent can reasonably assume to
carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification: - CORRECT ANSWER-Preferred
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - CORRECT ANSWER-Annuitization phase
An insurers claim settlement practices are regulated by the: - CORRECT ANSWERState insurance departments
The two major actions required for a policyholder to comply with the Reinstatement
Clause are: - CORRECT ANSWER-provide evidence of insurability, pay past due
premiums
An insurers ability to make unpredictable payouts to policy owners is called: -
CORRECT ANSWER-Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - CORRECT ANSWERUnderwriting
What does the Group Life underwriting risk selection process help protect insurance
companies from? - CORRECT ANSWER-Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of
benefits from insurance policies for insolvent insurers, and covers all of the following
insured policies, EXCEPT: - CORRECT ANSWER-Liability Insurance
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? - CORRECT
ANSWER-The policy may be paid up early by using policy dividends?
What would happen if a life insurance applicant is given a conditional receipt from an
insurance agent and then dies the next day? - CORRECT ANSWER-Claim will be paid
if application is approved
A policy owner can receive a percentage payment of the death benefits prior to death by
using what kind of contract? - CORRECT ANSWER-Viatical Settlement agreement
A life insurance policy owner does NOT have the right to: - CORRECT ANSWERRevoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary and
the right to: - CORRECT ANSWER-Convert to an individual policy in the event of
employment termination
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If
the consumer price index has gone up 4%, how much may Ron increase the face value
of the policy? - CORRECT ANSWER-$4,000
Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true? - CORRECT ANSWER-The face amoun [Show Less]