215 Insurance License Course

Front 1

What would happen if the insd. became totally & permanently disabled two months before the cut-off dateon his waiver of premium rider?

Back 1

The insd. is eligible for all the waiver of premium provisions, even if a disability extends past the normal cut-off date of age 60.

Front 2

What is the turning over of all rights in a life policy to an assignee?

Back 2

Absolute assignment

Front 3

What does an Indeterminate Premium policy offer?

Back 3

Low starting premiums, usually for a couple of years, and then, change according to the insurer's investments and claims.

Front 4

Can the death benefits from a variable life poicy increase or decrease?

Back 4

Yes, but they can never fall below the policy's face amount.

Front 5

What does a flexible premium annuity provide?

Back 5

It allows for the buyer to vary the premium payment as long as the amount falls within a certain dollar range.

Front 6

What is a MET?

Back 6

A Multiple Employer Trust is a legal entitiy that small employers can join because they have too few employees for a direct group plan.

Front 7

What is a medical expense plan called that bases payments on medical services or procedures in the same geographic area?

Back 7

an Unscheduled usual & customary pan. It alows benefits to stay up with inflation and avoids repricing benefits as medical costs increase.

Front 8

How does a group disability policy differ from an individual disability policy?

Back 8

The group policy is:
-less expensive
-has more liberal
provisions

Front 9

The only way an insurer can cancel a noncancellable policy is __________________

Back 9

for nonpayment of premium

Front 10

To waive an insured's premium, most companies require an individual's disability to be____________

Back 10

total and permanent

Front 11

How is the money provided under the automatic premium loan provision handled?

Back 11

Normally, it is charged interest

Front 12

What is the collateral for a policy loan?

Back 12

the cash value of the policy itself

Front 13

What is the initial enrollment period for Part B of Medicare?

Back 13

1st day of the 3rd month before the month before the individual attains the age of 65

Front 14

An insured has the payout option "life annuity with period certain". How would he be paid?

Back 14

Paid a precise minimum number of years or for the rest of his life, whichever is longer
aka: "annuity certain and for life thereafter"

Front 15

What is the main benefit of a 501 (c) 9 trust?

Back 15

it allows contributions to be deducted immediately, instead of when benefits are distributed

Front 16

What does ADL mean?

Back 16

activities of daily living

Front 17

Under the Gram-Leach-Bliley Act, what is the difference between a customer and a consumer?

Back 17

a customer has a relationship with an insurer, while a consumer does not

Front 18

With an immediate annuity, the annuity begins when what period of time has elapsed?

Back 18

Usually, an exact date in the future

Front 19

Dental insurance usually covers whitening of the teeth. (T/F)

Back 19

False

Front 20

The Spendthrift Clause prevents the beneficiary from ____________ all of the proceeds of the policy

Back 20

encumbering

Front 21

How long is the affiliation period under a Small Employer Group plan?

Back 21

Not over 90 days for new hires and not over 180 days for enrollees. During this period, no premium is collected and no coverage is provided

Front 22

Most companies will allow the insd. to change to another tpe of ins policy without a medical exam if the original policy has a conversion privilege and ______?

Back 22

The new premium is higher than the original policy

Front 23

What does an aleatory insurance contract mean?

Back 23

An equal value is not exchanged by both parties to the contract

Front 24

In 1965 Title XIX was added to the Social Security program. What did it add?

Back 24

Medicaid

Front 25

Long term care insurance covers post hospital skilled nursing care. (T/F)

Back 25

False. This is provided by Medicare Part A, so it is not covered by LTC

Front 26

Do Medigap policies cover all preexisting conditions immediately?

Back 26

Medigap policies only cover preexisting conditions if the insured signs up in the first 6 months of eligibility

Front 27

Can an employer make contributions to a TSA 403B?

Back 27

No, employers do not contribute to any tax-sheltered annuities.

Front 28

How does a life annuity, with period certain, pay the annuitant?

Back 28

It pays until death, at which time the beneficiary begins receiving payments for the rest of his/her life

Front 29

John and his wife Delia have been buying IRAs for a number of years. In the tax year 2005, the contributions changed. What was their minimum contribution?

Back 29

There is no minimum limit

Front 30

A company provides a $5,000 monthly income to retires who have served as senion executives. This type of retirement benefit is not available to other company retires. What would the IRS call this type of retirement plan?

Back 30

A non-qualified plan

Front 31

An unbundled life insurance contract has company expenses built into the policy. (T/F)

Back 31

False
An unbundled life insurance contract is a universal life policy. The protection, cash value, and loading are separated and reported separately.

Front 32

What is the intent of the COB Provision?

Back 32

Coordination of Benefits is designed to eliminate over insurance while giving the insured as much coverage as possible

Front 33

The grace period on a policy paid weekly is 10 days. (T/F)

Back 33

False. On weekly collected premiums, the grace period is 7 days.

Front 34

What is the COB Provision attempting to do?

Back 34

The Coordination of Benefits is designed to eliminate over insurance while giving the insured as much coverage as possible.

Front 35

How often does a disable person receiving disability benefits have to show proof of continuing disability?

Back 35

Once every 6 months

Front 36

How are dependents defined under the requirements of a contributory small employer group policy?

Back 36

Persons eligible for coverage are: the spouse, new born children, children under 19, and financially dependent full time stuidents under 23 years of age.

Front 37

How does the absolute assignment provision differ with life, health, or disability policies?

Back 37

It doesn't. An assignment of benefits is the same whether it is life, disability, or health benefits

Front 38

Are paid up additions a nonforfiture option?

Back 38

No, paid up additions is a participating dividend option.
To forfeit means to lose. With nonforfiture options, you can't lose.

Front 39

If an insured allows a policy to lapse and the insurance company converts the policy to the extended term option, what feature carries over to the new policy?

Back 39

the beneficiary

Front 40

What is the principle in the law of agency?

Back 40

the insurance company