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Insurance 13
| Question | Answer |
|---|---|
| Insurance companies determine risk exposure by which of the following? | Law of large numbers and risk pooling |
| Which of these statements concerning Traditional IRAs is CORRECT? | Earnings are taxable when withdrawn |
| A health insurance policy will typically cover | preventative health services |
| Within how many days must a rollover be completed in order to avoid being taxed as current income? | 60 |
| All of the following are qualifications for establishing a health savings account (HSA) EXCEPT | Enrolled in a health plan with a prescription drug benefit |
| Preferred risk policies with reduced premiums are issued by insurance companies because the insured has | better than average mortality or morbidity experience |
| People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called | adverse selection |
| Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT | the beneficiary |
| The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? | Insurable interest can be based on the love and affection of individuals related by blood or law |
| Underwriters can acquire information from all of the following sources EXCEPT | genetic testing |
| What is involved when a life insurance policy has been backdated? | Making the policy effective on an earlier date than the present |