FREE AND STUDY GAMES ABOUT FINANCIAL TEST 3

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FREE AND STUDY GAMES ABOUT FINANCIAL TEST 3

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -11 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Buy-sell plans are typically funded by which two types of insurance?

Answer:

Life insurance and disability insurance Question 2: What percentage of eligible employees must participate in a noncontributory group health plan before it can be put in effect?

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100% Question 3: During the underwriting process for a group health policy, it was discovered that 15 out of 50 members of the group have major health issues. How would the insurer handle this?

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Accept or reject the whole group Question 4: Who is financially liable for the payment of covered claims in a fully insured group health plan?

Answer:

Insurer

Question 5: What is a participating life insurance policy?

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Contract that allows the policyowner to receive a share of surplus in the form of policy dividends Question 6: Life insurance surplus must be distributed to policyowners at what frequency?

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Annually Question 7: Minimum participation standards exist for group health insurance plans in order to

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prevent adverse selection Question 8: Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds?

Answer:

Reinsurance

Question 9: Business Overhead Expense Insurance pays for

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business expenses when a business owner becomes disabled Question 10: Which of the following is NOT typically covered under vision care insurance?

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Retina surgery Question 11: Which of the following is an insurer established by a parent company for the purpose of insuring the parent company's loss exposure?

Answer:

Captive insurer