AD BANKER L&H TEST QUESTIONS &
ANSWERS VERIFIED 100% CORRECT!!
What type of disability income insurance is designed help a small business
continue to make regular monthly payments on its long term financial
commitments in the event of the owner's disability? Answer - Reducing Term
The HMO provider is paid a set fee per enrollee known as a Answer -
Capitation fee
Most group disability income contracts are offered on a Answer -
Nonoccupational basis
A married couple wants to make sure that if either of them dies, the survivor
has enough funds to maintain their standard of living but wants to accomplish
this in the most economical way. which below helps best suit their goal?
Answer - Purchase a joint life policy
Susan, age 65 inherits a substantial sum of money and wants to have the
money distributed to her over the rest of her life starting next month. which
product offered by the life insurance industry will allow her to accomplish her
objective? Answer - single premium immediate annuity
An employee who is covered under an employer group life insurance plan may
assume all of the following are TRUE of the opportunity of conversion, except:
Answer - the employee chooses which type of insurance to convert to
,If an employer has less than ____ employees, Medicare will be the primary
payer for those eligible for Medicare. Answer - 20
All of the following describe the responsibilities of an agent or producer except:
Answer - Determine the rate the insurer will charge the applicant/insured
A $500,000 policy is sold for $50,000. After the sale, the new owner pays
$10,000 in life insurance premiums while the insured is still alive. Upon the
death of the insured, how much of the death benefit is taxable Answer -
$440,000 (bc it's total benefit - what the dude paid overall, which is 60K)
The 'Appeal Rights' required by the ACA apply to: Answer - Denial or reduction
of benefits to insureds for specific claims
Which of the following is not a fixed type of an annuity? Answer - Variable
Ultimately it is up to the _______ to determine if the proposed insured is an
acceptable risk. Answer - Home office underwriter
A firm with 50 employees replaces its existing group health plan. With regard
to ongoing existing claims, the replacing insurer will be: Answer - Required to
continue paying them under the No Loss-No Gain law
Which type of LTC coverage is designed to provide relief for the primary
caregiver of a long-term care patient? Answer - Respite Care
The Notice to Applicant Regarding Replacement of Accident and Sickness
Insurance must contain all of the following statements except: Answer - The
applicant should always notify the Commissioner and consult with an attorney
prior to entering into any replacement transaction
, Burt names Liz as his beneficiary, however, he did not choose a Settlement
Option. At the time of his death, who determines the option to be used to
receive the benefits? Answer - Liz the beneficiary determines which option she
would like to have
E has a $10,000 traditional whole life policy with a $4,000 cash value.
Premiums paid to date are $3,500. If the policy lapses with a $4,000 loan
outstanding, what amount will be taxable as income to E? Answer - $500 (its
CV - premiums paid)
Each participant of a Lloyds association: Answer - Is individually liable for each
risk they assume
F has an annuity with $50,000 of cash value. F needs life insurance but does
not currently have it in his budget to pay for it. What is another option for F to
consider to obtain the much needed life insurance F needs. Answer - Use some
of the annuity funds either through systematic withdrawal or a settlement
option to pay the life insurance premiums
If an individual has limited assets and low income, which of the following
would most likely cover the cost of long-term care? Answer - Medicaid
Dental plans are normally written with a stated annual maximum on the
number of: Answer - Benefit dollars that will be paid
A company owned by stockholders that does NOT pay dividends is considered
Answer - Nonparticipating
The National do not call registry requires companies to update their list at least
once every ___ days. Answer - 31
ANSWERS VERIFIED 100% CORRECT!!
What type of disability income insurance is designed help a small business
continue to make regular monthly payments on its long term financial
commitments in the event of the owner's disability? Answer - Reducing Term
The HMO provider is paid a set fee per enrollee known as a Answer -
Capitation fee
Most group disability income contracts are offered on a Answer -
Nonoccupational basis
A married couple wants to make sure that if either of them dies, the survivor
has enough funds to maintain their standard of living but wants to accomplish
this in the most economical way. which below helps best suit their goal?
Answer - Purchase a joint life policy
Susan, age 65 inherits a substantial sum of money and wants to have the
money distributed to her over the rest of her life starting next month. which
product offered by the life insurance industry will allow her to accomplish her
objective? Answer - single premium immediate annuity
An employee who is covered under an employer group life insurance plan may
assume all of the following are TRUE of the opportunity of conversion, except:
Answer - the employee chooses which type of insurance to convert to
,If an employer has less than ____ employees, Medicare will be the primary
payer for those eligible for Medicare. Answer - 20
All of the following describe the responsibilities of an agent or producer except:
Answer - Determine the rate the insurer will charge the applicant/insured
A $500,000 policy is sold for $50,000. After the sale, the new owner pays
$10,000 in life insurance premiums while the insured is still alive. Upon the
death of the insured, how much of the death benefit is taxable Answer -
$440,000 (bc it's total benefit - what the dude paid overall, which is 60K)
The 'Appeal Rights' required by the ACA apply to: Answer - Denial or reduction
of benefits to insureds for specific claims
Which of the following is not a fixed type of an annuity? Answer - Variable
Ultimately it is up to the _______ to determine if the proposed insured is an
acceptable risk. Answer - Home office underwriter
A firm with 50 employees replaces its existing group health plan. With regard
to ongoing existing claims, the replacing insurer will be: Answer - Required to
continue paying them under the No Loss-No Gain law
Which type of LTC coverage is designed to provide relief for the primary
caregiver of a long-term care patient? Answer - Respite Care
The Notice to Applicant Regarding Replacement of Accident and Sickness
Insurance must contain all of the following statements except: Answer - The
applicant should always notify the Commissioner and consult with an attorney
prior to entering into any replacement transaction
, Burt names Liz as his beneficiary, however, he did not choose a Settlement
Option. At the time of his death, who determines the option to be used to
receive the benefits? Answer - Liz the beneficiary determines which option she
would like to have
E has a $10,000 traditional whole life policy with a $4,000 cash value.
Premiums paid to date are $3,500. If the policy lapses with a $4,000 loan
outstanding, what amount will be taxable as income to E? Answer - $500 (its
CV - premiums paid)
Each participant of a Lloyds association: Answer - Is individually liable for each
risk they assume
F has an annuity with $50,000 of cash value. F needs life insurance but does
not currently have it in his budget to pay for it. What is another option for F to
consider to obtain the much needed life insurance F needs. Answer - Use some
of the annuity funds either through systematic withdrawal or a settlement
option to pay the life insurance premiums
If an individual has limited assets and low income, which of the following
would most likely cover the cost of long-term care? Answer - Medicaid
Dental plans are normally written with a stated annual maximum on the
number of: Answer - Benefit dollars that will be paid
A company owned by stockholders that does NOT pay dividends is considered
Answer - Nonparticipating
The National do not call registry requires companies to update their list at least
once every ___ days. Answer - 31
