LIFE, HEALTH, ANNUITY 2-15 EXAM

PDF Download LIFE, HEALTH, & ANNUITY 2-15 EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: disability benefits

Answer:

Can be delayed up to 90 days depending on the policy

Question 2: Spendthrift Clause

Answer:

Does not apply to proceeds paid in one lump sum, it shelters the unpaid death proceeds from the claims of beneficiary's creditors, and shelters the unpaid death proceeds from the claims of the policy owner's creditors.

Question 3: Franchise (Wholesale) Insurance

Answer:

Employer is not the master policyholder, they are the sponsor of the plan, and collect premiums from the employees and remits them to the insurance company; each person received an individual policy.

Question 4: Franchise Health Plan

Answer:

A type of group health plan that provides health insurance coverage to members of an association or professional society.

Question 5: With an AD&D policy if someone intentionally does something to injure themselves they would...

Answer:

receive no benefit.

Question 6: Variable Annuity Sperate Accounts

Answer:

these fluctuate in relationship to the value of the separate account portfolio.

Question 7: Taxation of Benefits Received - Health Insurance Policies

Answer:

Benefits received from personal disability income policies are NOT taxable.

Question 8: Purpose of Underwriting

Answer:

To allow the company to determine if an applicant meets the standards to qualify for life insurance, lets the insurer determine the premium rate they will charge the applicant, and allows the company to deny someone that proves to be uninsurable.

Question 9: senior citizens social club

Answer:

Only Group NOT eligible for group health insurance

Question 10: Decreasing Term Insurance

Answer:

Similar to the type typically purchased to cover a mortgage.

Question 11: Conditionally Renewable

Answer:

Allows a company to cancel a policy under certain conditions

Question 12: Unethical Conduct

Answer:

When an agent replaces a policy w/out doing a full and fair comparison for the client

Question 13: All must appear on all applications

Answer:

Agents name & signature, the name of the company and the agents license number

Question 14: Valued

Answer:

A policy that pays a set amount if someone becomes disabled.

Question 15: Health Policy Exclusions

Answer:

war or any acts of war, pre-existing illnesses, and injuries received while committing or attempting to commit a felony.

Question 16: An Admitted Health Insurer

Answer:

Licensed by the OIR to transact health insurance business in Florida under the provisions of state laws.

Question 17: Risk

Answer:

the only kind of risk that is insurable and involves only the chance of loss; there is never a possibility of gain or profit

Question 18: Indemnity Contract

Answer:

a contract that pays an amount equal to the loss.

Question 19: Suicide during the first year of a contract

Answer:

the amount paid will be the premiums paid up to the date of death.

Question 20: Re-entry Option

Answer:

A renewable term policy that might provide an insured a lower rate than what the contract states.

Question 21: Decreasing Term Policy

Answer:

When the face amount decreases and the premium remains level.

Question 22: Group Insurance Plan

Answer:

the employer is the applicant of this

Question 23: Waiting period for disability income benefits under the SS program

Answer:

• months

Question 24: Policy Replacement

Answer:

When policy owners desire to replace existing policies, agents must strictly follow any replacement regulations in their state.

Question 25: Transactions - Licensee

Answer:

Can only begin transacting both life & health insurance ONLY after being appointed by an authorized insurer for both life and health.

Question 26: Guaranty Funds

Answer:

Funded by insurance companies, are state associations that support insurers & protect consumers, and will cover the consumers unpaid claims if an insurer becomes insolvent.

Question 27: HMO

Answer:

Stresses preventative care, rarely assess deductibles, and provides coverage for routine doctors visits and hospital care.

Question 28: Misrepresentation

Answer:

Using a policy name that does not denote the true nature of the policy, unintentionally telling an applicant that a straight whole life policy will be paid up at 65, and failing to explain truthfully a policy's terms or benefits.