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Life License-Test#3
Part 2
| Question | Answer |
|---|---|
| 31. In which plans do employers make specific contributions to an employee's retirement account? | defined contribution plans |
| 32. traditional comprehensive major medical plans include all of following, except: | first-dollar coverage |
| 33. all of following would fall under the category of an "adverse underwriting decision," except: | failure of the agent to submit the application to an insurance company |
| 34. in a 7 year vesting schedule, what percentage of employer contributions must be vested after 7 years of service? | 100% |
| 35. an ESOP invests in: | Employer's stock |
| 36. along with having enough assets to provide for its liabilities and for reinsurance for all outstanding risks, in order to remain solvent the insurer must also meet minimum reqs equal to what amt required by the CA Code? | paid-in capital |
| 37. a policyholder stops making payments on a 20-pay life policy and converts the cash surrender value to extended term insurance. All of following statements are true, except: | the term policy will have the same loan value as the original policy |
| 38. who pays the premiums for a Workers' Compensation policy for a retail store? | it is always paid entirely by the employer |
| 39. which risk classification carries the lowest premium? | preferred |
| 40. which of following statements defines partial disability? | a disabled employee while he is working part-time and receiving lost income under their long-term disability benefit |
| 41. which statement best describes a life insurance policy dividend? | it is the distribution of excess of funds accumulated by the insurer on participating policies |
| 42. if no other method of payment is selected, which of following is the automatic mode of settlement for life insurance policy proceeds? | lump-sum settlement in cash |
| 43. when Workers' Compensation laws became mandatory, it meant: | employers were financially responsible for employee's on-the-job injuries, regardless of fault |
| 44. the process whereby a mutual insurer becomes a stock company is called: | demutualization |
| 45. a supplemental insurance policy that pays a set amt for each day that an individual is hospitalized is known as: | hospital confinement indemnity |
| 46. taxes paid on the benefits received from disability policies are determined by who pays the premium. If an employee pays the premiums: | the benefits are non-taxable to that employee |
| 47. any situation that presents the possibility of a loss is known as: | a loss exposure |
| 48. concerning Part B of Medicare, which of following is incorrect? | it is paid entirely by FICA (Social Security) payroll taxes |
| 49. which statement is true regarding participating in a group health insurance plan? | a non-contributory group health plan must cover all eligible members |
| 50. according to state law, what size print must be used for the licensee's license number on all price quotes, business cards, and printed material? | the same size print as the licensee's phone number, fax number or address |
| 51. Social Security disability benefits are paid to persons expected to die or be disabled at least: | 12 months |
| 52. Tony Brown has a CLU certification. Which of following names would be automatically approved for his agency's use? | None of these = Tony Brown CLU and Company, Brownies Insurance Services, Brown Insurance |
| 53. The insured, aged 65, owns a $100,000 non-participating whole life policy. The policy is paid-up as of today. When would cash value reach $100,000? | Age 100 |
| 54. Which optional program is only for individuals age 65 or older? | Medicare Part B |
| 55. Harry, a variable annuity applicant, does not request the premium be invested in a stock or bond portfolio during the cancellation period. The policy is returned to the company within the cancellation period. What is Harry entitled to receive? | The entire premium |
| 56. According to the Employee Retirement Income Security Act of 1974 (ERISA) fiduciary standards, benefit plans are operated for: | Plan participants and beneficiaries |
| 57. after the deductible is paid, what percentage of the balance of approved charges does Medicare Part B pay? | 80% |
| 58. what is the purpose of "key person" insurance? | to cover decreased business earnings due to the death of a key employee |
| 59. with Medicare coverage: | Part B provides benefits for diagnostic tests and x-rays performed on an out-patient basis |
| 60. by adopting a self-funded health plan, an employer will have greater flexibility in all areas of the planning, except: | claims severity |
Created by:
jennyhqs2
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