Insurance Products

Question 1

Contributory group plans require

Answer 1

75% of eligible employee participation in a contributory group plan to avoid adverse selection

Question 2

Variable Life Policy

Answer 2

• market fluctuations can change amt of death benefit BUT death benifit will never fall below the guaranteed minimum amount

Question 3

MEC Policies

Answer 3

• considered life insurance under federal income tax law
• tax-free death benefits
• tax-deferred cash value accumulation
• adverse tax implications for distributions taken during the insured lifetime
• premmature tax penalty of 10% before age 59.5

Question 4

ACA eliminated pre-existing condition exclusions for what type of policy?

Answer 4

Medical expense policies

Question 5

Pre-existing condition exclusions are still allowed for which type of policies?

Answer 5

LTC
Medicare supplements
limited benefit policies
disability policies.