AD Banker L&H Test Exam 150 Questions and
Answers.
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? - Correct Answer Reducing Term
The HMO provider is paid a set fee per enrollee known as a - Correct Answer Capitation
fee
Most group disability income contracts are offered on a - Correct 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? - Correct 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? - Correct 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: - Correct 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. - Correct Answer 20
All of the following describe the responsibilities of an agent or producer except: - Correct
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 - Correct 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: - Correct Answer Denial or reduction of
benefits to insureds for specific claims
Which of the following is not a fixed type of an annuity? - Correct Answer Variable
Ultimately it is up to the _______ to determine if the proposed insured is an acceptable
risk. - Correct 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: - Correct 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? - Correct Answer Respite Care
The Notice to Applicant Regarding Replacement of Accident and Sickness Insurance
must contain all of the following statements except: - Correct 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? - Correct
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? - Correct Answer $500 (its CV - premiums paid)
Each participant of a Lloyds association: - Correct 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. - Correct Answer Use some of the annuity funds
either through systematic withdrawal or a settlement option to pay the life insurance
premiums
Answers.
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? - Correct Answer Reducing Term
The HMO provider is paid a set fee per enrollee known as a - Correct Answer Capitation
fee
Most group disability income contracts are offered on a - Correct 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? - Correct 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? - Correct 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: - Correct 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. - Correct Answer 20
All of the following describe the responsibilities of an agent or producer except: - Correct
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 - Correct 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: - Correct Answer Denial or reduction of
benefits to insureds for specific claims
Which of the following is not a fixed type of an annuity? - Correct Answer Variable
Ultimately it is up to the _______ to determine if the proposed insured is an acceptable
risk. - Correct 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: - Correct 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? - Correct Answer Respite Care
The Notice to Applicant Regarding Replacement of Accident and Sickness Insurance
must contain all of the following statements except: - Correct 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? - Correct
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? - Correct Answer $500 (its CV - premiums paid)
Each participant of a Lloyds association: - Correct 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. - Correct Answer Use some of the annuity funds
either through systematic withdrawal or a settlement option to pay the life insurance
premiums
