Olivegrades

An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? $500 $5,000 $5,400 $5,600 - ANSWER $5,000 Which of these is NOT subject to income taxation under Modified Endowment Contract (MEC) Loan against the cash value Policy withdrawal Policy Dividend Death Benefit - ANSWER Death benefit An indemnity plan Pays both the insured and health care provider Pro...

A insurance binder is effective for no more than - ANSWER 90 Days Mr. Underwood gave his agent a down payment for the purchase of a business insurance policy. The insurance company issued a policy that promises to pay Mr. Underwood under terms and conditions stated in the policy. What specific term is used to refer to Mr. Underwood's payment and the insurance company's promise to pay? - ANSWER Consideration Which of the following structures is not eligible for flood insurance? A. An...

A unique feature in a bailee form is that it covers A. A loss that has no exclusions B. The building occupied by the insured whether it is owned or leased C. Customers property whether or not the insured has been negligent D. Fire and theft losses to the insured stock held for sale without any deductibles. - ANSWER C What is a certificate of insurance A. Written document allowing the insured to inspect the insured's books B. A written document showing to types and amounts of insura...

An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? a) 80% of the property's replacement cost or more b) 100% of the market value c) $400,000 d) $32,000 - ANSWER A Which of the following watercraft will NOT be covered by business liability insurance? a) Nonowned watercraft 50 feet long used for transporting personal property of the insured b) Owned watercraft 53 feet l...

What are the benefits that must be provided by an individual health insurance policy for prenatal, maternity, and delivery expenses? - ANSWER Prenatal, maternity, and delivery expenses are required to be covered under all health plans subject to the same deductible and coinsurance as other medical and surgical expenses. Which situation would qualify an individual for receiving benefits from a qualified long-term care policy? - ANSWER Becoming cognitively impaired (mentally ill) How many da...

A insurance binder is effective for no more than - ANSWER 90 Days Mr. Underwood gave his agent a down payment for the purchase of a business insurance policy. The insurance company issued a policy that promises to pay Mr. Underwood under terms and conditions stated in the policy. What specific term is used to refer to Mr. Underwood's payment and the insurance company's promise to pay? - ANSWER Consideration Which of the following structures is not eligible for flood insurance? A. An...

Speculative Risk - ANSWER involves the chance of loss or gain, and is not insurable Pure Risk - ANSWER involves the chance of loss only, and is insurable Peril - ANSWER Something that causes a direct loss Physical Hazard - ANSWER Visible (Black ice) Moral Hazard - ANSWER dishonest tendencies (Fraud)

Stock Companies - ANSWER -private organization focused to make profits for shareholders -Stock dividends are paid to stock holders -policyholders do not participate Mutual Companies - ANSWER -have no stock holders -owners are policy owners -policy holders can vote for members of the board -policy owners receive dividends Lloyd's of London - ANSWER -A syndicate of individuals who underwrite insurance

P wants to name her husband as the beneficiary of her life policy. However, she wishes to retain all of the rights of ownership. P should have her husband named as the: A.irrevocable beneficiary B.revocable beneficiary C.secondary beneficiary - ANSWER B A contract that has as its basic function the systematic liquidation of accumulated assets through periodic payments is called an: A.indemnity contract B.investment contract C.endowment D.annuity - ANSWER D

COBRA (because she can convert, and if she has a long term illness it it will be hard for her to get approved for individual insurance) - ANSWER Kevin and Nancy are married; Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the followin...