.png){kind=logo}
PDF Download
UTAH INSURANCE TEST
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Group medical expense plans.
Answer:
Prescription drug coverage can be offered as an optional benefit under which of the following arrangement
Question 2: dividend options
Answer:
There are five common ones: taking these in cash, applying these against premium payments, leaving these with the company to accumulate at interest, buying paid-up additions, and buying 1-year term protection.
Question 3: first dollar insurance coverage
Answer:
provide for the payment of all losses up to the specified limit without any use of deductibles.
Question 4: presumptive disability provision.
Answer:
receive disability income benefits for the stated term because of the severity of the condition. The nature of the disability raises the presumption that she is totally disabled. Even if you can do a desk job.
Question 5: Group health insurance participants may be classified by
Answer:
type of payroll, duties and length of service, but not by age.
Question 6: Graded premium whole life
Answer:
policy in which the premium at the inception of the policy is lower than the continuous premium whole life rate and then increases each year for the first five years of the policy period. After five years, the premium levels off.
Question 7: In order to sell variable annuities, a producer must have
Answer:
valid life insurance license and be registered with the Financial Industry Regulatory Authority (FINRA).In order to be registered with FINRA the producer must first pass the applicable securities exam(s). To obtain a life insurance license the producer must also first pass the state life insurance exam. Being a member of the National Association of Insurance and Financial Advisors (NAIFA) is not required to sell variable annuities.
Question 8: 5 years.
Answer:
Interest earned and distributions made are tax free if a ROTH IRA is maintained for at least
Question 9: Major medical types of deductibles
Answer:
integrated per cause, flat or corridor, but not decreasing.
Question 10: The needs approach
Answer:
for determining how much insurance protection is needed requires an analysis of the family's financials if the breadwinner dies. Then the family's ability to meet these out of current or anticipated assets must be assessed. This involves determining the amount of monthly benefits the family will receive from Social Security, pension plans, personal savings, and any other sources.
Question 11: A variable annuity is based on
Answer:
investments and payments. They vary with the value of the investments in a separate fund.
Question 12: Cash refund option.
Answer:
provide for the payment of all losses up to the specified limit without any use of deductibles.
Question 13: Social Security disability benefits
Answer:
An eligible applicant for you must be younger than age 65 (since all benefits paid after age 65 are classified as retirement benefits), enjoy a fully insured status, and be unable to engage in gainful work for at least 5 months before the start of the benefits.
Question 14: credit life group.
Answer:
is issued on the lives of borrowers and purchasers on credit, require that a specified number of insureds under the policy be maintained. 100 insureds is a common level for the number of insureds required. If participation drops below that number, the insurer may not insure new debtors under that group policy.
Question 15: respite care provision under a long-term care policy
Answer:
pays the cost of either bringing in a substitute provider to the insured's home or moving the insured to a care facility for a period of time. Its purpose is to give an unpaid caregiver (such as spouse or other family member) relief from her daily duties.
Question 16: principal function of annuities
Answer:
The principal function of life insurance is to create an estate. The principal this is to liquidate an estate.
Question 17: The human life approach
Answer:
requires an estimate of an individual's average annual future earnings according to the number of years they expects to work until retirement.
Question 18: Social Security disability benefits
Answer:
be totally and permanently disabled for at least five months. The other requirements are that the disability must be expected to last for at least 12 months or end in death, and the person must be fully insured and disability insured as defined under Social Security regulations.
Question 19: nonforfeiture provision.
Answer:
The privilege of accessing the cash value of an insurance policy if it is surrendered Question 20: When determining the amount of tax deduction that can be taken for unreimbursed medical expenses
Answer:
premiums paid for group AD&D coverage are not considered qualifying medical expenses. The deduction is limited to the amount exceeding 10% of adjusted gross income,
Question 21: Variable universal life insurance
Answer:
combines many characteristics of _____ (such as a death benefit and an equities-based cash value) with _____(such as flexible premium payments and adjustable death benefits).
Question 22: delayed payment provision in a whole life policy
Answer:
Although it is rarely used, this provision enables the insurer to postpone payment of the cash surrender value for six months after the policyowner requests payment.Question 23: If a medical report is required on an applicant, it is completed by:
Answer:
paramedic or examining physician called a "medical examiner." Medical reports are required when the application for coverage exceeds a certain face amount.
Question 24: characteristic of insurance contracts
Answer:
adhesion, meaning that they are prepared by one party, the insurer. They are not negotiated contracts.In effect, the applicant "adheres" to the terms of the contract when he or she accepts it.
Question 25: deferred annuities
Answer:
Surrender charge-free withdrawals are generally permitted up to a specified percentage. (A common percentage is 10%.) Although these free withdrawals may escape the contract's surrender charge, they are subject to income taxation. If the contract owner is younger than age 59½, the tax may include a 10% penalty.
.png)