PA LIFE, HEALTH AND ACCIDENT FINAL EXAM ()
NEWEST QUESTIONS WITH CORRECT ANSWERS, 100%
GUARANTEE PASS
What percentage of a participants income are group long-term
disability benefit amounts typically limited too?
60%
Which type of plan would be most appropriate for an individual
on Medicare and is concerned that Medicare will NOT pay for
charges exceeding the approved amount?
Medicare Supplement Plan F
Insuring Clause
The insurer's basic promise to pay specified benefits
To a designated person in the event of a covered loss. The
purpose is to specify the scope and limits of the coverage
provided.
Consideration Clause
,A policyowner must pay a premium in exchange for the
insurer's promise to pay benefits. A policyowner's
consideration consists of completing the application and
paying
The initial premium. The amount and frequency of premium
payments are contained in the
Consideration clause.
Entire Contract
This includes the actual policy and application. The entire
contract provision stipulates that the policy and a copy of the
application, along with any riders or amendments, constitute
the entire contract. No statements made before the contract
was written can be used to alter the contract. Neither the
insurer nor the insured may change policy provisions once the
policy is in effect without both parties agreeing to it and the
change being affixed to the contract.
Grace Period
The period of time policyowners are allowed to pay an overdue
premium during which the policy remains in force usually 30
days. If the insured dies during the grace period of a life
insurance policy before paying the required annual premium,
the beneficiary will receive the face amount of the policy less
any required premiums.
,Reinstatement Provision
Permits the policy owner to reinstate a policy that has lapsed
as long as the policy owner can provide of insurability and
pays back all the premiums, outstanding loans, and interest.
Most states allow reinstatement up to 3 years after the policy
has lapsed
Incontestable Clause
The clause in life insurance contract that prohibits the insurer
from questioning the validity of the contract after a certain
period of time has elapsed.
Misstatement of Age or Sex Clause
If the insured's age or sex is misstated, the amount payable is
the amount that the premiums paid would have purchased at
the correct age and sex
Policy Loan Provision
, Policies that have cash value also have policy loan and
withdrawal provisions. These policies must begin to build cash
value after a certain number of years in most states 3 years.
These loans with interest cannot exceed the guaranteed cash
value or the policy will no longer be in force. The policy owner
has the right to the policy's cash value. Policy loans are NOT
taxable. Any loans with interest due at the time of death will be
deducted from the insured's policy proceeds.
Automatic Premium Loans
Allows the insurer to automatically use the policy cash value
to pay an overdue premium. There is no cost for this provision.
Owner's Rights Provision
Defines the person who may name and change beneficiaries,
select options available under the policy, and receive any
financial benefits from the policy.
Assignment Clause or Provisions
The right to transfer policy rights to another person or entity.
The new owner is known as the assignee.
NEWEST QUESTIONS WITH CORRECT ANSWERS, 100%
GUARANTEE PASS
What percentage of a participants income are group long-term
disability benefit amounts typically limited too?
60%
Which type of plan would be most appropriate for an individual
on Medicare and is concerned that Medicare will NOT pay for
charges exceeding the approved amount?
Medicare Supplement Plan F
Insuring Clause
The insurer's basic promise to pay specified benefits
To a designated person in the event of a covered loss. The
purpose is to specify the scope and limits of the coverage
provided.
Consideration Clause
,A policyowner must pay a premium in exchange for the
insurer's promise to pay benefits. A policyowner's
consideration consists of completing the application and
paying
The initial premium. The amount and frequency of premium
payments are contained in the
Consideration clause.
Entire Contract
This includes the actual policy and application. The entire
contract provision stipulates that the policy and a copy of the
application, along with any riders or amendments, constitute
the entire contract. No statements made before the contract
was written can be used to alter the contract. Neither the
insurer nor the insured may change policy provisions once the
policy is in effect without both parties agreeing to it and the
change being affixed to the contract.
Grace Period
The period of time policyowners are allowed to pay an overdue
premium during which the policy remains in force usually 30
days. If the insured dies during the grace period of a life
insurance policy before paying the required annual premium,
the beneficiary will receive the face amount of the policy less
any required premiums.
,Reinstatement Provision
Permits the policy owner to reinstate a policy that has lapsed
as long as the policy owner can provide of insurability and
pays back all the premiums, outstanding loans, and interest.
Most states allow reinstatement up to 3 years after the policy
has lapsed
Incontestable Clause
The clause in life insurance contract that prohibits the insurer
from questioning the validity of the contract after a certain
period of time has elapsed.
Misstatement of Age or Sex Clause
If the insured's age or sex is misstated, the amount payable is
the amount that the premiums paid would have purchased at
the correct age and sex
Policy Loan Provision
, Policies that have cash value also have policy loan and
withdrawal provisions. These policies must begin to build cash
value after a certain number of years in most states 3 years.
These loans with interest cannot exceed the guaranteed cash
value or the policy will no longer be in force. The policy owner
has the right to the policy's cash value. Policy loans are NOT
taxable. Any loans with interest due at the time of death will be
deducted from the insured's policy proceeds.
Automatic Premium Loans
Allows the insurer to automatically use the policy cash value
to pay an overdue premium. There is no cost for this provision.
Owner's Rights Provision
Defines the person who may name and change beneficiaries,
select options available under the policy, and receive any
financial benefits from the policy.
Assignment Clause or Provisions
The right to transfer policy rights to another person or entity.
The new owner is known as the assignee.
