Insurance Flashcards
(122 cards)
1
Q
Short term disability benefits begin on the ________ day after an accident and on the ________ day of an illness.
A
- *1s**t.
- *8t**h.
2
Q
What is the dollar amount of long-term care insurance that can live inside of a cafeteria plan?
A
$0.
LT care insurance cannot live inside a cafeteria plan.
3
Q
What method of handling risk is insurance?
A
Insurance is considered to be a risk transfer.
Risk transfers (or the use of insurance) is appropriate when the frequency is low but the severity is high.
4
Q
What clause would prevent a provider from voiding coverage due to a misstatement of age after a specified period of time has passed?
A
Incontestability clause.
5
Q
What is the minimum size for group term?
A
10.
Do not confuse this with the minimum for COBRA coverage (20).
6
Q
What type of life insurance policy would be appropriate for an individual who wants flexibility in payments/coverage, and also wants the ability to control their investments?
A
Variable universal life.
7
Q
Is split dollar life insurance considered to be a fringe benefit?
A
Yes.
This can also be used in a buy-sell agreement.
8
Q
What is the highest level of care available where patients are seen regularly by a physician?
A
Skilled nursing care.
9
Q
What are three characteristics that limit an insurer’s liability?
A
- *1. Dedu**ctibles.
- *2. Coin**surance.
- *3.** An insured interest (collateral).
10
Q
Increasing whole life insurance while decreasing term life insurance describes what?
A
Group paid up life insurance.
11
Q
What should you remember when calculating a client’s obligation for group term insurance above $50,000?
A
Multiply by 12 to determine the annual cost.
Assume a client has $80,000 of employer provided term life insurance, the table 1 rate is $.15 per unit. How much in reportable income will be due?
$80,000 - $50,000 = $30,000 | $30,000 / 1,000 = 30 | (coverage units) | 30 x $.15 = $4.50.
You may see an option on the exam that is $4.50. This is incorrect. To arrive at the correct answer, you would need to multiply by 12 ($54).
12
Q
The period of time an insured must wait before an illness is covered under a disability plan is called ________?
A
The probation period.
13
Q
Coverage F would not cover ________?
A
- *Contra**ctors of the insured.
- *Thi**nk cleaning services, plumbers, electricians, etc.
14
Q
When an individual covered by a whole life policy passes, do heirs receive the cash value as well as the death benefit?
A
The cash value amount is not added to the death benefit.
Important to know when asked what the payout would be after passing. Example: a policy with a $75,000 cash value and a $500,000 death benefit would pay $500,000 at death. Not $575,000.
15
Q
What is the incidental benefit rule for term life insurance in a defined benefit plan?
A
100Xmonthlyretirementbenefit.
Life insurance benefits are incidental if the benefit is no more than 100 times the monthly annuity benefit.
16
Q
How long does COBRA coverage last in the event of a divorce?
A
36 months.
17
Q
What is the difference between a moral hazard and a morale hazard?
A
The difference is intent.
A moral hazard is when an insured intentionally seeks to gain from their insurance company (filing false claim). A morale hazard is when someone is indifferent to their actions (driving recklessly).
18
Q
When converting a term policy to a permanent policy, what age will be used to determine premiums?
A
The age at conversion.
While this seems intuitive, the exam may include other options that seem reasonable to throw you off, such as the age of the insured at the time of the original application.
19
Q
Cash surrender values are not found in what type of plan?
A
Qualified long-term care polices.
20
Q
Premiums on a renewable term life insurance policy will ________?
A
Increase annually.
21
Q
Guaranteed renewable insurance does not guarantee a ________?
A
Level premium.
22
Q
What type of plan provision has the most liberal continuation policy?
A
Non-cancelable provisions.
23
Q
What value should you use when calculating the appropriate insurance amount?
A
Replacement value.
24
Q
Right of the insured to be “made whole” is consistent with what principle?
A
Principle of indemnity.
25
**Wh**at **ty**pe **o**f **insur**ance **wou**ld **b**e **benef**icial **i**f **a** **busi**ness **i**s **interr**upted **du**e **t**o **a** **del**ay **fr**om **a**n **outs**ide **provi**der?
**Conti**ngent **busi**ness **interr**uption **insur**ance.
26
**Ho**w **ma**ny **per**ils **ar**e **cove**red **und**er **bro**ad **cover**age?
**1**8 **nam**ed **peri**ls.
27
**Ho**w **lo**ng **i**s **th**e **Medi**caid **look**back **peri**od?
**6**0 **mon**ths **(**5 **year**s). **Incl**udes **gif**ts **giv**en **dur**ing **th**is **tim**e.
28
**Wh**at **organi**zation **prov**ides **accredi**tation **fo**r **sta**te **insur**ance **regul**atory **offi**ces?
**Th**e **Nati**onal **Associ**ation **o**f **Insur**ance **Commiss**ioners **(NAI**C).
29
**\_\_\_\_**\_\_\_\_ **ar**e **typic**ally **assoc**iated **wi**th **health**/life **insur**ance **whi**le **\_\_\_\_**\_\_\_\_ **ar**e **typic**ally **assoc**iated **wi**th **prop**erty **an**d **casu**alty **insur**ance.
* *Rid**ers.
* *Endors**ements.
30
**Wh**en **mu**st **a**n **insur**able **inte**rest **exi**st **i**n **a** **li**fe **insur**ance **poli**cy?
**A**t **incep**tion **o**f **th**e **poli**cy.
31
**10**33 **excha**nges **ar**e **wh**at **ty**pe **o**f **excha**nges?
* *Involu**ntary **excha**nges.
* *Eit**her **du**e **t**o **disa**ster **o**r **emin**ent **doma**in.
32
**Ho**w **ma**ny **per**ils **ar**e **cove**red **und**er **op**en **per**il **cover**age?
**Al**l **per**ils **ar**e **cov**ers **EXC**EPT **tho**se **th**at **ar**e **specif**ically **exclu**ded.
33
**Maj**or **medi**cal **wi**ll **no**t **pa**y **fo**r **\_\_\_\_**\_\_\_\_ **i**f **th**e **cli**ent **i**s **no**t **gett**ing **bett**er?
**Custo**dial **car**e.
34
**Ho**w **do**es **a** **cha**nge **i**n **occup**ation **provi**sion **wor**k?
**I**t **all**ows **th**e **insu**rer **t**o **ma**ke **adjust**ments **t**o **a**n **insu**reds **bene**fits **du**e **t**o **a** **cha**nge **i**n **occupa**tion.
**Exam**ple: **A**n **insur**ed’s **prem**iums **incr**ease **t**o **compe**nsate **fo**r **a** **occupa**tional **cha**nge **th**at **invo**lves **mo**re **ris**k.
35
**Ho**w **ma**ny **per**ils **ar**e **cove**red **und**er **bas**ic **cover**age?
**1**2 **nam**ed **peri**ls.
36
**Whi**ch **disab**ility **poli**ces **ar**e **mo**re **expen**sive, **integ**rated **o**r **non-int**egrated **disab**ility **polic**ies.
**Non-int**egrated **disab**ility **poli**ces **ar**e **mo**re **expen**sive.
37
**Wh**at **perc**ent **o**f **a** **dea**th **bene**fit **i**s **pa**id **ou**t **t**o **th**e **survi**ving **spo**use **i**n **a** **second-**to-die **li**fe **insur**ance **poli**cy?
**0%**.
**Second-**to-die **poli**cies **pa**y **ou**t **wh**en **th**e **sec**ond **per**son **o**n **th**e **pol**icy **pass**es. **The**se **typ**es **o**f **poli**cies **ar**e **typic**ally **le**ss **expen**sive **th**an **tw**o **sepa**rate **polic**ies.
38
**Th**is **ty**pe **o**f **age**nt **repre**sents **a** **pol**icy **hol**der **rat**her **th**an **a**n **age**ncy **o**r **agenc**ies.
**A** **insur**ance **brok**er.
39
**Wh**o **cont**rols **th**e **invest**ments **i**n **a** **vari**able **unive**rsal **li**fe **poli**cy?
**Th**e **insu**red.
40
**Vari**able **unive**rsal **li**fe **do**es **no**t **guara**ntee **a** **\_\_\_\_\_**\_\_\_?
**Mini**mum **ca**sh **val**ue.
41
**Ar**e **hear**ing **ai**ds **cove**red **und**er **Medi**care **Pa**rt **B**?
**No**.
42
**Wou**ld **yo**ur **pers**onal **au**to **pol**icy **cov**er **yo**u **dur**ing **a** **busi**ness **tri**p?
**No**.
43
**Th**e **inclu**sion **amo**unt **i**s **desi**gned **t**o **\_\_\_\_\_**\_\_\_?
**Smo**oth **ou**t **th**e **lea**se **vs**. **deprec**iation **amou**nt.
44
**A**n **\_\_\_\_**\_\_\_\_ **wou**ld **prov**ide **cove**rage **agai**nst **per**ils **th**at **ar**e **no**t **cove**red **und**er **a** **stan**dard **insur**ance **poli**cy?
**Insur**ance **endors**ement.
45
**Th**is **ty**pe **o**f **who**le **li**fe **pol**icy **ha**s **it**s **ca**sh **val**ue **inve**sted **i**n **marke**table **secur**ities **rat**her **tha**n **ca**sh **an**d **ca**sh **equiva**lents.
**Vari**able **who**le **li**fe **insur**ance.
46
**A** **taxa**ble **eve**nt **occ**urs **wh**en **a**n **indiv**idual **excha**nges **a** **\_\_\_\_**\_\_\_\_ **pol**icy **fo**r **a**n **\_\_\_\_\_**\_\_\_.
* *Li**fe **insur**ance
* *Annu**ity
47
**A** **tran**sfer **o**f **a** **modi**fied **endow**ment **cont**ract **(ME**C) **t**o **a** **li**fe **insur**ance **pol**ice **wi**ll **\_\_\_\_\_**\_\_\_?
**No**t **rem**ove **it**s **sta**tus **a**s **a** **ME**C.
48
**Wh**at **bra**nch **o**f **gover**nment **i**s **respon**sible **fo**r **enfor**cing **sta**te **insur**ance **co**de **ruli**ngs?
**Th**e **execu**tive **bra**nch **o**f **govern**ment.
49
**Wh**at **ar**e **3** **wa**ys **t**o **pa**y **fo**r **hosp**ital **sta**ys **i**n **exc**ess **o**f **10**0 **day**s?
* *Medi**caid
* *Long-**term **ca**re **insur**ance
* *Indiv**idual **savi**ngs
50
**Wh**at **te**rm **sho**uld **co**me **t**o **mi**nd **wh**en **yo**u **se**e **th**e **phr**ase **“a**n **uneq**ual **exch**ange **o**f **mone**y?”
**Aleat**ory.
51
**I**s **the**re **ann**ual **carry**over **fo**r **sick**-pay **benef**its?
**Ye**s.
52
**Th**e **\_\_\_\_**\_\_\_\_ **prev**ents **a**n **insu**red **fr**om **recei**ving **compen**sation **fr**om **mult**iple **part**ies **fo**r **th**e **sa**me **cla**im.
**Subrog**ation **clau**se.
**Th**is **mea**ns **th**at **a**n **insu**red **cou**ld **no**t **rece**ive **dama**ges **fr**om **the**ir **insu**rer **an**d **th**en **se**ek **dama**ges **fr**om **th**e **3r**d **part**y’s **insur**ance **fo**r **th**e **sa**me **cla**im. **N**o **dou**ble **dipp**ing.
53
**COB**RA **cove**rage **on**ly **appl**ies **t**o **emplo**yers **wh**o **ha**ve **a**t **lea**st **\_\_\_\_**\_\_\_\_ **emplo**yees.
**2**0 **emplo**yees.
54
**A**n **indiv**idual **th**at **can**not **pref**orm **2** **ou**t **o**f **6** **activ**ities **o**f **dai**ly **liv**ing **fo**r **\_\_\_\_**\_\_\_\_ **da**ys **wi**ll **qual**ify **fo**r **long-**term **car**e.
**9**0 **day**s.
55
**Wha**t’s **a**n **exam**ple **o**f **a** **ti**me **deduct**ible?
* *A**n **elimin**ation **peri**od.
* *Th**is **i**s **th**e **len**gth **o**f **ti**me **bef**ore **a**n **insu**rer **wi**ll **pa**y **bene**fits **t**o **th**e **insu**red **aft**er **a**n **inj**ury **o**r **illn**ess
56
**Wh**at **ar**e **th**e **tw**o **typ**es **o**f **renew**able **disab**ility **polic**ies?
* *1. Non-ca**ncelable
* *2. Guar**anteed **renew**able
**I**n **addi**tion **t**o **the**se **poli**cies **bei**ng **renew**able, **it**’s **impor**tant **t**o **kn**ow **ho**w **prem**iums **ar**e **impa**cted **i**n **bo**th **o**f **the**se **polic**ies.
**I**n **sho**rt: **non-can**celable **=** **prem**iums **ar**e **cons**tant **/** **guara**nteed **renew**able **=** **prem**iums **ca**n **incre**ase.
57
**Wh**at **fede**ral **agen**cies **influ**ence **th**e **insur**ance **indus**try?
* *Inte**rnal **Reve**nue **Serv**ice **-** **Per**mit **cert**ain **ta**x **bene**fits
* *SE**C **-** **Vari**able **insur**ance **poli**cies
* *ERI**SA **-** **Empl**oyee **insur**ance **bene**fits
58
**Wh**at **i**s **th**e **mo**st **restri**ctive **defin**ition **o**f **gro**up **disabi**lity?
**An**y **occupa**tion.
59
**Wha**t’s **i**t **cal**led **wh**en **tw**o **part**ies **ar**e **ab**le **t**o **agr**ee **o**n **a** **resol**ution **regar**ding **a** **contr**act?
**Cont**ract **reform**ation.
60
**Soc**ial **Secu**rity **integr**ation **i**s **al**so **kno**wn **a**s **\_\_\_\_\_**\_\_\_?
**Permi**tted **dispa**rity.
61
**Wh**at **i**s **th**e **cla**use **th**at **perm**its **paym**ent **o**f **dea**th **bene**fits **ev**en **i**f **fra**ud **exis**ts?
**Incontes**tability **clau**se.
62
**Ho**w **ma**ny **activ**ities **o**f **dai**ly **liv**ing **(AD**L) **mu**st **a**n **indiv**idual **b**e **una**ble **t**o **perf**orm **i**n **ord**er **t**o **b**e **elig**ible **fo**r **long-**term **car**e?
* *2** **o**f **6** **activ**ities **o**f **dai**ly **livi**ng.
* *Yo**u **ma**y **b**e **tes**ted **o**n **the**se **activi**ties. **Th**ey **incl**ude: **transf**erring **(b**ed **t**o **chai**r), **bathing/s**howering, **usi**ng **th**e **bathr**oom, **contin**ence, **dress**ing, **&** **eati**ng.
63
**\_\_\_\_**\_\_\_\_ **ar**e **th**e **act**ual **cau**se **o**f **a** **lo**ss **an**d **\_\_\_\_**\_\_\_\_ **ar**e **wh**at **wou**ld **incr**ease **th**e **cha**nce **o**f **a** **los**s.
**Per**ils **&** **haza**rds.
64
**Wh**en **wou**ld **medi**care **no**t **pa**y **fo**r **a**n **indivi**dual's **medi**cal **cover**age?
**Wh**en **th**e **indiv**idual **ha**s **n**o **possib**ility **o**f **mak**ing **a** **recov**ery.
65
**Do**es **Medi**care **cov**er **medi**cal **expe**nses **outs**ide **o**f **th**e **US**?
**No**. **Howe**ver **the**re **ar**e **thr**ee **except**ions.
* *1.** You **ar**e **i**n **th**e **U**S **an**d **th**e **clos**est **hosp**ital **i**s **i**n **a** **fore**ign **coun**try
* *2.** You **ha**ve **a** **medi**cal **emerg**ency **wh**en **trave**ling **thro**ugh **Can**ada **an**d **th**e **clos**est **hosp**ital **i**s **i**n **Can**ada
* *3.** You **li**ve **i**n **th**e **U**S **an**d **th**e **clos**est **hosp**ital **i**s **i**n **a** **fore**ign **coun**try
66
**I**f **yo**u **we**re **t**o **exch**ange **a** **li**fe **insur**ance **pol**icy **fo**r **a**n **annu**ity, **wh**at **wou**ld **th**at **b**e **call**ed?
**A** **10**35 **excha**nge.
67
**Wou**ld **a**n **HO**-6 **pol**icy **cov**er **dam**age **t**o **th**e **struct**ure's **roo**f?
**No**. **Cove**rage **pert**ains **t**o **ins**ide **th**e **un**it **its**elf **a**s **we**ll **a**s **th**e **cont**ents **insi**de.
68
**Wou**ld **th**e **prem**iums **o**n **a** **limi**ted **pa**y **who**le **li**fe **pol**icy **b**e **hig**her **o**r **low**er **th**an **a**n **ordi**nary **who**le **li**fe **pol**icy **(assu**ming **th**e **poli**cies **ha**ve **compa**rable **benef**its)?
**High**er. **I**n **a** **limi**ted **pa**y **who**le **li**fe **poli**cy, **th**e **insu**red **pa**ys **th**e **prem**iums **fo**r **th**e **pol**icy **i**n **a** **shor**ter **per**iod **o**f **ti**me **comp**ared **t**o **ordi**nary **li**fe **poli**cies **(wh**ich **crea**tes **a** **hig**her **premi**um).
69
**I**f **a** **policy**holder **o**f **a** **pu**re **li**fe **annu**ity **di**es **shor**tly **aft**er **paym**ents **beg**in, **wh**at **amo**unt **cou**ld **a** **benefi**ciary **expe**ct?
**$0**. **Pu**re **annui**ties **st**op **pay**ing **ou**t **wh**en **th**e **policy**holder **pass**es.
70
**Ho**w **mu**ch **te**rm **insur**ance **i**s **prov**ided **t**o **a**n **indiv**idual **wh**en **th**ey **op**t **fo**r **th**e **exte**nded **te**rm **nonforf**eiture **opti**on?
**Th**e **fa**ce **amo**unt **o**f **th**e **orig**inal **poli**cy.
71
**The**re **ar**e **\_\_\_\_**\_\_\_\_ **NA**IC **commiss**ioners.
**56**.
72
**Wh**at **ar**e **th**e **3** **li**fe **insur**ance **nonforf**eiture **opti**ons?
* *1. C**ash **val**ue **(ins**ured **rece**ives **th**e **accumu**lated **ca**sh **val**ue)
* *2. Re**duced **paid**-up **insur**ance **(sma**ller **fa**ce **amo**unt **bu**t **a** **perma**nent **poli**cy)
* *3. Ext**ended **te**rm **insur**ance **(te**rm **insur**ance **wi**th **th**e **fa**ce **amo**unt **equ**al **t**o **th**e **orig**inal **poli**cy)
**Don**’t **conf**use **nonforf**eiture **opti**ons **wi**th **th**e **divi**dend **o**r **settl**ement **opti**ons.
73
**Wh**en **a**n **insur**ance **pol**icy **i**s **posit**ioned **a**s **“ta**ke **i**t **o**r **lea**ve **it**,” **wh**at **charact**eristic **i**s **thi**s?
**Adhes**ion.
74
**\_\_\_\_**\_\_\_\_ **assig**nment **all**ows **fo**r **owner**ship **o**f **a** **li**fe **insur**ance **pol**icy **t**o **b**e **transf**erred **unt**il **a** **speci**fied **oblig**ation **ha**s **be**en **satis**fied.
**Colla**teral **assign**ment.
75
**Wh**at **ty**pe **o**f **ris**ks **ar**e **consi**dered **t**o **b**e **insur**able?
* *Catastr**ophic’
* *Homoge**neous
* *Accid**ental
* *Determ**inable
**A** **go**od **wa**y **t**o **reme**mber **th**is **i**s **th**e **acro**nym **CHA**D.
76
**Ho**w **ar**e **prem**iums **struc**tured **i**n **a** **modi**fied **who**le **li**fe **poli**cy?
**Prem**iums **ar**e **usua**lly **low**er **a**t **th**e **begin**ning **o**f **th**e **poli**cy, **th**en **incr**ease **aft**er **a** **spec**ific **per**iod **o**f **tim**e.
**Cou**ld **b**e **a**n **opt**ion **fo**r **some**one **wh**o **wan**ts **a** **perma**nent **pol**icy **bu**t **can**not **aff**ord **th**e **prem**iums **unt**il **the**ir **earn**ings **incre**ase.
77
**Wh**at **ar**e **th**e **4** **are**as **o**f **cove**rage **i**n **Sect**ion **1** **o**f **a** **homeow**ner’s **poli**cy?
* *A** **-** **Dwel**ling
* *B** **-** **Oth**er **struc**tures **(th**ink **sh**ed **/** **deta**ched **gara**ge)
* *C** **-** **Pers**onal **prop**erty
* *D** **-** **Lo**ss **o**f **us**e **(cov**ers **liv**ing **expe**nses **wh**en **ho**me **i**s **bei**ng **repai**red)
78
**Wh**at **ar**e **th**e **2** **are**as **o**f **cove**rage **i**n **sect**ion **2** **o**f **a** **homeow**ner’s **poli**cy?
* *E** **-** **Liabi**lity **cove**rage
* *F** **-** **Medi**cal **paym**ent
79
**Sect**ion **\_\_\_\_**\_\_\_\_ **pert**ains **t**o **gro**up **li**fe **insur**ance **pla**ns **fo**r **emplo**yees.
**Sect**ion **79**. **Prov**ides **exclu**sion **fo**r **th**e **fir**st **$50,**000 **o**f **cover**age.
80
**Wh**at **ar**e **th**e **COB**RA **cove**rage **peri**ods?
* *1**8 **mon**ths **(termin**ation)
* *2**9 **mon**ths **(disab**ility)
* *3**6 **mon**ths **(dea**th, **divo**rce, **disabi**lity)
81
**Wh**at **do**es **Medi**care **Pa**rt **B** **no**t **cov**er?
* *Hear**ing **ai**ds
* *Vis**ion
* *Den**tal
* *Cosm**etic **proce**dures
**A** **go**od **wa**y **t**o **reme**mber **th**is **i**s **t**o **sim**ply **thi**nk **abo**ut **a** **fac**e. **Eye**s, **tee**th, **&** **ea**rs **are**n’t **cove**red **s**o **yo**u **ju**st **ne**ed **t**o **reme**mber **cosme**dics. **Pa**rt **B** **prima**rily **cov**ers **physi**cian **serv**ices **an**d **dura**ble **medi**cal **equip**ment **su**ch **a**s **wheelc**hairs.
82
**Wh**at **i**s **on**e **excep**tion **t**o **th**e **availa**bility **o**f **COB**RA **cove**rage **fo**r **a** **termi**nated **emplo**yee?
**Termin**ation **du**e **t**o **gro**ss **miscon**duct.
83
**Wh**at **i**s **a**n **underwr**iter's **go**al **wh**en **work**ing **fo**r **a**n **insur**ance **comp**any?
**T**o **avo**id **adve**rse **selec**tion.
84
**Wh**at **i**s **i**t **cal**led **wh**en **a**n **indiv**idual **enga**ges **i**n **hazar**dous **o**r **unneces**sarily **ris**ky **behav**ior?
**A**n **abso**lute **liabi**lity.
85
**\_\_\_\_**\_\_\_\_ **prev**ents **th**e **reduc**tion **o**f **dama**ges **sim**ply **beca**use **th**e **dama**ged **par**ty **carr**ies **insur**ance.
**Th**e **colla**teral **sou**rce **rul**e.
86
**A** **pol**icy **th**at **guara**ntees **renewa**bility **bu**t **no**t **a**t **a** **lev**el **te**rm **i**s **cal**led **\_\_\_\_\_**\_\_\_?
**Guara**nteed **renew**able **poli**cy.
87
**Tempo**rary **insur**ance **cove**rage **ma**y **b**e **prov**ided **b**y **\_\_\_\_\_**\_\_\_?
**Condit**ional **rece**ipt.
88
**Inabi**lity **t**o **perf**orm **2** **ou**t **o**f **6** **activ**ities **o**f **dai**ly **liv**ing **(AD**L) **wou**ld **per**mit **\_\_\_\_\_**\_\_\_.
**Eligib**ility **t**o **ent**er **a** **long-**term **ca**re **facil**ity.
89
**Th**e **per**iod **o**f **ti**me **a**n **insu**red **mu**st **wa**it **bef**ore **a**n **illn**ess **o**r **inj**ury **i**s **cove**red **b**y **the**ir **disab**ility **insur**ance **i**s **cal**led **\_\_\_\_\_**\_\_\_?
**Th**e **proba**tion **peri**od.
90
**A**t **wh**at **ag**e **ar**e **Soc**ial **Secu**rity **Surv**ivor **bene**fits **avail**able **t**o **a** **wid**ow?
**Ag**e **60**.
91
**A** **prem**ium **ra**te **incr**ease **th**at **mu**st **app**ly **t**o **a**n **ent**ire **cla**ss **i**s **consi**dered **t**o **b**e **\_\_\_\_\_**\_\_\_?
**Guara**nteed **renew**able.
92
**Contri**butory **negli**gence **i**s **wh**en **\_\_\_\_\_**\_\_\_.
**Bo**th **part**ies **sha**re **i**n **bla**me **o**f **a**n **accid**ent.
93
**Th**is **ty**pe **o**f **cove**rage **prev**ents **th**e **insu**red **fr**om **sui**ng **unl**ess **dama**ges **rea**ch **a** **cert**ain **dol**lar **o**r **ver**bal **thres**hold?
**Modi**fied **no-f**ault **cover**age.
94
**A** **\_\_\_\_**\_\_\_\_ **cont**ract **i**s **al**so **kno**wn **a**s **a** **cont**ract **o**f **chan**ce.
**Alea**tory **contr**act.
**Th**is **al**so **ha**s **t**o **d**o **wi**th **a**n **uneq**ual **exch**ange **o**f **mon**ey **(sm**all **prem**ium **ca**n **le**ad **t**o **lar**ge **econ**omic **benef**it).
95
**Profes**sional **liabi**lity **insur**ance **prov**ides **cove**rage **fo**r **\_\_\_\_\_**\_\_\_?
**Malpra**ctice.
96
**Pol**icy **rig**hts **ar**e **perman**ently **transf**erred **i**n **th**is **ty**pe **o**f **assign**ment?
**A**n **abso**lute **assign**ment.
97
**A** **\_\_\_\_**\_\_\_\_ **pol**icy **all**ows **fo**r **a**n **other**wise **uninsu**rable **indiv**idual **t**o **b**e **o**n **th**e **poli**cy.
**Sec**ond **t**o **di**e **li**fe **insur**ance **poli**cy.
98
**Ar**e **hear**ing **ai**ds **cove**red **b**y **Medi**care **Pa**rt **B**?
**No**. **Neit**her **i**s **dent**al, **visi**on, **o**r **cosm**etic **proced**ures.
99
**Prem**iums **o**n **a** **non-canc**ellable **disab**ility **pol**icy **ar**e **\_\_\_\_\_**\_\_\_.
**No**t **subj**ect **t**o **prem**ium **incre**ases.
100
**Wh**at **ar**e **tw**o **situa**tion **whe**re **th**e **transfer-**for-value **rul**es **d**o **no**t **app**ly?
* *Th**e **insu**red **indiv**idual **i**s **purch**asing **th**e **pol**icy
* *A** **part**ner **o**f **th**e **insu**red **i**s **purch**asing **th**e **pol**icy
101
**Wh**at **ty**pe **o**f **age**nt **repre**sents **th**e **pol**icy **own**er?
* *A**n **insur**ance **brok**er.
* *Indepe**ndent **age**nts **repre**sent **mult**iple **insur**ance **carri**ers.
* *Gene**ral **age**nts **typic**ally **repre**sent **a** **sin**gle **agen**cy.
102
**Cas**h, **accum**ulate **a**t **inter**est, **reduc**tion **o**f **premi**ums, **pa**id **u**p **addit**ions, **an**d **one-**year **te**rm **ar**e **al**l **exam**ples **o**f **\_\_\_\_\_**\_\_\_?
* *Divi**dend **opti**ons **i**n **a** **partici**pating **insur**ance **poli**cy.
* *It**’s **impor**tant **t**o **kn**ow **the**se **a**s **we**ll **a**s **th**e **diffe**rent **typ**es **o**f **settl**ement **opti**ons **(a**s **we**ll **a**s **th**e **nonforf**eiture **optio**ns). **Th**e **ex**am **wi**ll **us**e **the**se **ter**ms **intercha**ngeably **i**n **a**n **atte**mpt **t**o **conf**use **candid**ates.
103
**Wh**en **wou**ld **a** **li**fe **insur**ance **pol**icy **b**e **subj**ect **t**o **inc**ome **ta**x?
**Wh**en **he**lp **i**n **a** **quali**fied **pla**n.
104
**Wh**at **ty**pe **o**f **exch**ange **dea**ls **wi**th **like-**kind **re**al **esta**te?
**10**31 **excha**nges.
105
**Medi**gap **poli**cies **mu**st **b**e **\_\_\_\_\_**\_\_\_?
**Guara**nteed **renew**able.
106
**A** **ta**x **quali**fied **long-**term **ca**re **pol**icy **can**not **off**er **a** **\_\_\_\_\_**\_\_\_?
**Ca**sh **surre**nder **val**ue.
107
**Medi**care **cove**rage **do**es **no**t **cov**er **\_\_\_\_\_**\_\_\_?
**Custo**dial **car**e.
108
**Wh**at **do**es **th**e **te**rm **“repla**cement **rat**es” **mea**n?
**Pert**ains **t**o **th**e **amo**unt **o**f **inc**ome **th**at **i**s **repl**aced **b**y **portf**olio **inc**ome **wh**en **a**n **indiv**idual **sto**ps **work**ing.
109
**Th**e **\_\_\_\_**\_\_\_\_ **appr**oach **i**s **th**e **mo**st **com**mon **appr**oach **t**o **calcul**ating **th**e **nee**ded **amo**unt **o**f **insur**ance.
**Capi**tal **nee**ds **appro**ach.
110
**Wh**at **sho**uld **yo**u **kn**ow **abo**ut **prem**iums **o**n **a** **non-canc**ellable **poli**cy?
* *Th**e **prem**iums **d**o **no**t **incr**ease **ov**er **tim**e.
* *Th**is **i**s **no**t **th**e **ca**se **wi**th **a** **guara**nteed **renew**able **poli**cy.
111
**A** **charact**eristic **o**f **a**n **insur**ance **pol**icy **th**at **requ**ires **th**e **insu**red **t**o **abi**de **b**y **a** **spec**ific **se**t **o**f **rul**es **indic**ates **th**at **th**e **cont**ract **i**s **\_\_\_\_\_**\_\_\_?
**Condit**ional.
112
**Wha**t’s **th**e **maxi**mum **len**gth **o**f **a** **ves**sel **th**at **ca**n **b**e **cove**red **b**y **inl**and **mar**ine **insur**ance?
**Inl**and **mar**ine **insur**ance **ha**s **noth**ing **t**o **d**o **wi**th **shi**ps.
**Th**is **ty**pe **o**f **insur**ance **cov**ers **prop**erty **whi**le **i**t **i**s **bei**ng **transp**orted.
113
**Skil**led **nurs**ing **ca**re **i**s **cove**red **i**n **wh**at **pa**rt **o**f **Medic**are?
**Pa**rt **A**.
114
**Nonforf**eiture **rig**hts **guara**ntee **th**at **the**re **wi**ll **b**e **a** **\_\_\_\_\_**\_\_\_?
**Ca**sh **val**ue.
115
**Wh**at **te**rm **alloc**ates **negli**gence **an**d **lo**ss **proporti**onally?
**Compar**ative **neglig**ence.
116
**Wh**at **happ**ens **t**o **pol**icy **prem**iums **ov**er **ti**me **wit**hin **a** **modi**fied **who**le **li**fe **poli**cy?
**Th**ey **typic**ally **sta**rt **lo**w **an**d **incr**ease **aft**er **a** **speci**fied **num**ber **o**f **yea**rs.
117
**Lo**ng **te**rm **disab**ility **pla**ns **ar**e **no**t **subj**ect **t**o **\_\_\_\_\_**\_\_\_?
**Non-discr**imination **rul**es.
118
**Ar**e **disab**ility **poli**cies **th**at **ar**e **integr**ation **wi**th **Soc**ial **Secu**rity **typic**ally **mo**re **o**r **le**ss **expen**sive?
**Le**ss **expen**sive.
119
**Ho**w **lo**ng **do**es **a**n **indiv**idual **ha**ve **t**o **ele**ct **COB**RA **cover**age **aft**er **sepa**rating **fr**om **the**ir **emp**loyer?
**6**0 **day**s.
120
**Accele**rated **dea**th **bene**fits **ca**n **b**e **us**ed **wh**en **a**n **indiv**idual **i**s **expe**cted **t**o **li**ve **\_\_\_\_**\_\_\_\_ **mon**ths **o**r **les**s.
**2**4 **mont**hs. **Anal**ysis **mu**st **b**e **compl**eted **b**y **a** **physi**cian.
121
**Wh**at **ty**pe **o**f **10**35 **exch**ange **wou**ld **cau**se **a** **taxa**ble **eve**nt?
**A**n **exch**ange **fr**om **a**n **annu**ity **t**o **a** **li**fe **insur**ance **poli**cy.
122
**An**y **amo**unt **o**f **gro**up **li**fe **cove**rage **abo**ve **$50,**000 **i**s **\_\_\_\_\_**\_\_\_?
**A** **taxa**ble **bene**fit **t**o **th**e **emplo**yee.
