Term 1 of 90
Which of the following is TRUE for both equity indexed annuities and fixed annuities?
They are both tied to an equity index
Both are considered to be more risky than variable annuities
They invest on a conservative basis
They have a guaranteed minimum interest rate
Term 2 of 90
Which of the following statements regarding Business Overhead Expense policies is NOT true?
Any benefits received are taxable to the business
Leased equipment expenses are covered by the plan
Benefits are usually limited to six months
Premiums paid for BOE are tax-deductible
Term 3 of 90
When an employer offers to give an employee a wage increase in the amount of the premium on
a new life insurance policy, this is called a(n)
Aleatory contract
Key person
Executive bonus
Consideration
,Term 4 of 90
All of the following long-term care coverages would allow an insured to receive care at home
EXCEPT
Skilled Care
Custodial care in insured's house
Respite care
Home health care
Definition 5 of 90
increase benefit levels without providing proof of insurability
Something of value exchanged between the insurer and the insured is considered an
Guarantee of insurability option in long-term care policies allows the insured to
What is the purpose of the rehabilitation benefit in disability insurance?
With the cash refund option, when the annuitant dies, what would the beneficiary receive?
Term 6 of 90
All of the following statemets about equity index annuities are correct EXCEPT
The interest rate is tied to an index such as the Standard & Poor's 500
They invest on a more aggressive basis aiming for higher returns
The annuitant receives a fixed amount of return
They have a guaranteed minimum interest rate
,Term 7 of 90
An agent offers his client free tickets to a sporting event in exchange for the purchase of an
insurance policy. The agent is guilty of
coercion
rebating
fraud
twisting
Term 8 of 90
In which of the following locations would skilled care most likely be provided?
In an outpatient setting
At a physician's office
In an institutional setting
At a patient's home
Term 9 of 90
Which of the following types of insurance policies is most commonly used in credit life insurance?
Increasing term
Whole Life
Equity indexed life
Decreasing term
, Term 10 of 90
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but
also specifies a guaranteed period, during which, if the original recipient dies, the payments will
continue to a designated beneficiary?
Interest only option
Joint and survivor
Insuring clause
Life income with period certain
Term 11 of 90
Which of the following is NOT true of basic medical expense plans?
Low dollar limits
Coverage for catastrophic medical expenses
No deductibles
First-dollar coverage
Term 12 of 90
Which settlement option allows the insurer to retain the face amount but pay some income based
on gain on the proceeds to the beneficiary at regular intervals?
Extended term
Long-term care
Interest only
Reduced paid-up
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