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10 Cards in this Set
- Front
- Back
- 3rd side (hint)
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A which of the following would not be considered a speculative risk? |
A every week your client pays $20 on the lotto B. Any action that could do harm to your clients well being such as reckless driving. C. Your client invest 5% of his salary into the defined benefit plan at his work D. All of the above situations involves some risk |
What physically risk |
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All of the following statements about mutual life insurance companies are correct except |
A. Mutual companies issue policies referred to as participating B. , if a mutual company goes public it demutualizes C. Policy dividends issued by mutual companies are guaranteed and not taxable D. Dividends allow policyholders to share in a mutual companies divisible surplus |
Correct answer c. Insurance policy dividends are not guaranteed and I'm not taxable |
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In the insurance planning process the blackout period is |
A.The period after the youngest child reaches 16 but before the widow reaches 60 in which the surviving spouse receives no Social Security benefits.
B. The period of time in which an employee is not yet eligible to join a group life insurance plan
C the period of time in which the policy is still in force despite non payment
D. Period of time in which a policy can be rescheduled due to the application intentional or unintentional misstatements on the application |
A. The blackout period is a feature of social security designated with no benefits will be paid to the surviving spouse of the deceased worker |
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Gloria owns an annuity in which she has invested $5,000 a year for 10 years she's currently receiving $8,000 annually from her nobody by the time all of the principal and interest is paid out Gloria will have been paid $100,000 how much of the annual benefit is taxable |
A $900 b 0 dollars C. $2,000 D. $4,000 |
D. $4,000 total investment is $50,000 total account value is $100,000 proportion 50000 divided by 100000 of 8000 is 4000 that means 4000 is excluded from taxation and 4000 is taxable |
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E&O coverage |
A.Does not protect the agent if the case against him or her is frivolous B.is unlimited C. Protective agent in case of unintentional negligence D. Has very low deductibles |
See protected an agent in case of unintentional negligence one of the main purposes of errors and omissions in coverage is to protect the agent in case of unintentional negligence |
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When a client is declined after submitting a prepaid application for life insurance |
A.The client is still covered 490 days on the conditional receipt B. The insurance company can keep the initial premium paid C. The client will pay and increased premium D. The insurance company must refund the entire premium paid |
Did the insurance company must refund the entire premium paid declining an application for insurance rescinds the contract, requiring a return of all premiums paid it is as though the contract never existed |
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Which best describes industrial insurance |
A. $10,000 coverage and premiums paid by mail B. $50,000 coverage and premiums paid by mail C. $100,000 coverage and premiums collected by agent D. $2,000 or less in coverage and premiums collected by agent |
D $2,000 or less in coverage and premiums collected by agent bylaw industrial insurance must be paid in person since it involves high risk insurance very low amounts are purchased |
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Which rider pays a multiple of the original face amount |
A. Accidental death and dismemberment B. Accelerated death benefit C. Cost of living D. Accidental death benefit |
The accidental death benefit also known as double indemnity accident riders pee larger death benefit if the death is due to accidental means |
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How does the incontestability Claus benefit the insured |
A. It dictates that if the insured and beneficiary dye together and the order of death is unknown the beneficiary is presumed to have died first B. It protects the death benefit from attachment by creditors after the insured passes away C. It keeps the policy from lapsing should the premium go unpaid by borrowing from the cash value D. It keeps the policy from being cancelled if after 2 years it is discovered that there was an error concealment or misinterpretation by the policyowner |
D it keeps the policy from being cancelled if after 2 years it is discovered that there was an error concealment or misinterpretation or misrepresentation by the policyowner the incontestability clause keeps the policy from being cancelled after the insured staff despite the applicant's misdeeds |
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An employee has lost access to their group term life insurance plan but they're allowed to convert to a new plan which best describes this new plan |
A. A policy will be cash value the employer will pay a portion of the cost B. The new policy will be term life the employer will pay a portion of the cost C. The new policy will be term life the employee pays all premiums D. The new policy will be cash value the employer pays all the premiums |
Did the new policy will be cash value them fully pays all the premiums conversion from group to individual can be any insurance except term the insured who lost their coverage is now paying for the entire premium |
