An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a
... [Show More] conditional receipt two weeks later. Which of the following has the insurer done by this point? Correct Answer: Neither approved the application nor issued the policy
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? Correct Answer: guaranteed insurability option
If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death? Correct Answer: 0%
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as Correct Answer: critical illness
A small hardware store owner is involved in a car accident that renders him totally disabled for a year. Which type of insurance would help him payment for expenses of the company during the time of his disability. Correct Answer: business overhead expense policy
Which of the following determines the length of time that benefits will be received under the fixed amount settlement option? Correct Answer: size of each installment
Who is the owner and who is the beneficiary on a key person life insurance policy? Correct Answer: the employer is the owner and the beneficiary
An employee insured under a group health plan has been paying $25 monthly premium for his 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 Correct Answer: . $102
Which of the following is an example of liquidity in a life insurance contract Correct Answer: the cash value available to the policyowner
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? Correct Answer: fixed amount
Which nonforfeiture option provides coverage for the longest period of time? Correct Answer: reduced paid-up
In the executive bonus plan, who is the owner of the poicy, and who pays the premium Correct Answer: executive is the owner, and the executive pays the premium
An insured had a $10,000 te [Show Less]