For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the
following?
1. age
2. cost of
... [Show More] care
3. policy value
4. premium cost - 1
The group conversion option is allowed for all of the following EXCEPT
1. termination of the master policy.
2. loss of group coverage due to termination of employment.
3. upon the loss of eligibility on the part of a class of insureds.
4. during the annual benefits enrollment period. - 4
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
1. No proof of insurability is required
2. insured original issue age is used
3. No application is required
4. outstanding loans are cancelled - 2
All of the following are features of the spendthrift clause EXCEPT
1. proceeds are paid in some other way than a single lump sum.
2. proceeds are protected by the insurer from the beneficiary's creditors.
3. transfer of proceeds to creditors is prohibited.
4. the beneficiary may encumber the proceeds. - 4
Which of the following lists the three common types of permanent individual life insurance?
1. Variable Life, Whole Life, Universal Life
2. Whole Life, Incidental Life, Term Life
3. Universal Life, AD&D,Term Life
4. Group Life, Whole Life, Variable Life - 1
Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the
insured's premium and compliance with policy terms?
1. conditions
2. policy title page
3. insuring clause
4. definitions - 3
When the courts look at a contract to determine the intent of the parties which of the following is considered?
1. the entire contract
2. the relevant portions of the contract
3. any material added to the basic contract
4. any words that have ambiguous definitions - 1
All of the following are tax qualified retirement plans EXCEPT
1. Keogh.
2. 401(k).
3. Section 529 plan.
4. SEP. - 3
All life insurance and health insurance contracts contain all of the following EXCEPT
1. Policy face
2. Insuring clause
3. Conditions
4. Representations - 4
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?
1. deferred
2. fixed
3. immediate
4. variable - 4
All of the following are ownership rights EXCEPT
1. changing the beneficiary of the policy
2. borrowing funds against cash value
3. switching the policy from one insured to another
4. assigning all of the rights of the policy to another person - 3
An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the
beneficiary?
1. common disaster clause
2. irrevocable beneficiary
3. contingent beneficiary
4. endorsement method - 1
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to
the policyowner UNLESS which of the following is true?
1. The policyowner has named an irrevocable beneficiary.
2. The policyowner has named a revocable beneficiary.
3. The policyowner deems the beneficiary unfit.
4. The insurer prohibits changes to beneficiaries. - 1
In order to AVOID being classified as an MEC, a policy must pass which of the following?
1. five-pay test
2. seven-pay test
3. policy loan test
4. accelerated benefits test - 2 [Show Less]