Styne

What is considered to be the primary reason for buying life insurance? Correct Answers Provide death benefits Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Feguson Act, what is the minimum penalty for this? Correct Answers $10,000 or up to 1 year in jail A nonparticipating company is sometimes called a(n) Correct Answers Stock insurer, because policyholders do not participate in dividends resulting f...

What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)? Correct Answers Disclosure and Reporting A Worker is entitled to Social Security Benefits if all of the following are true, Except for: A. Worker is under age 65 B. Worker cannot perform his or her current job, but is actively seeking other employment C. Worker is insured for disability benefits D. Disability is expected to continue for 12 months or result in death. Correct Answer...

Under what circumstance does an accident and health insurer have the right to request an autopsy? 1. When the claim exceeds an amount specified in the policy 2. When 2 days have passed after death 3. When not prohibited by state law 4. When consent is given by the beneficiary Correct Answers 3. When not prohibited by state law Which of the following accurately describes the "time limit on certain defenses"? 1. After a stated period of time, claims cannot be denied due to m...

What is an agent? Correct Answers Someone who acts on behalf of another (producer) What is a principal? Correct Answers Party for whom action is taken (insurance company) What is an agency agreement? Correct Answers Legal agreement that establishes the relationship between the principal and agent; outlines powers and responsibilities of agents. What is Express authority? Correct Answers Powers given to agent as part of agency agreement(written) What is implied authority? Correct Answ...

Select from the choices below the best description of a speculative risk? Correct Answers Involving the possibility of a gain in addition to the uncertainty of loss If there is a material change in an MEC contract, what is the first thing needing to be done? Correct Answers Another 7 pay test Which of the following is not taxable? Correct Answers Fixed amount installments A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax unless: Correct An...

How can a licensee surrender any license for cancellation? Correct Answers By submitting written notice or by delivering the license to the commissioner. When is a representation false? Correct Answers When the facts fail to correspond with its assertions or stipulations Which would permit an insurer to escape insolvency? Correct Answers Possession of assets equal to the total paid-in capital after all liabilities and reinsurance Which is TRUE regarding a life and health agent who has n...

Annuity Correct Answers -A contract between a person and an insurance company that requires the insurer to make payments to you. -You buy an annuity by making either a single payment or a series of payments -Annuity Death benefits are NOT tax deductible or taxfree Dividends Correct Answers -Declared by the board of directors and cannot be guaranteed -A sum of money paid regularly by a company to its shareholders out of its profits Stock Insurers Correct Answers -Owned by the stockholder...

Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner? 1. The annuitant has the right to name the beneficiary 2. The annuitant is the person paying the premiums 3. The cash value is available to the annuitant for withdrawals 4. Annuity payments will be based on the annuitants life expectancy Correct Answers Annuity payments will be based on the annuitants life expectancy Signing an applicants name for insurance is known as...? 1. Concealment 2. De...

Accelerated Benefits Correct Answers Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses. Accidental Death Benefits Correct Answers A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death. Accidental Death Insurance Correct Answers An insurance policy that provides payment if the insured's death is the result of the accident. ...

Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death? Correct Answers 30-year decreasing term. How many days notice does the ACA require insurers to give before rescinding coverage? Correct Answers 30 A signed good health statement may be requested by a life producer at the time of Correct Answers Policy Delivery Carol purchases a whole life policy that provides a choice of dividend options. ...