Deck 8: Insurance Planning Basics

Question 1

Universal and variable universal life policies have two types of disability riders.The riders are:

A)Waiver of mortality charges and waiver of premium.
B)Waiver of mortality expenses and waiver of scheduled premium.
C)Waiver of expense charges and waiver of mortality premium.
D)Waiver of scheduled charges and waiver of scheduled premium.

Answer 1

D

Question 2

"Interest Only" is a:

A)Advanced Death Benefit.
B)Fixed Amount.
C)Nonforfeiture Option.
D)Settlement Option.

Answer 2

D

Question 3

The sale of a life insurance contract to a third party for a value in excess of the contract's cash surrender value,but less than the contract's death benefit is a:

A)Accelerated Benefit Rider.
B)Guaranteed purchase option rider.
C)Life Settlement.
D)Viatical Settlement.

Answer 3

C

Question 4

Which of the following are the most basic forms of health insurance?
I)HMO
II)Hospital expense
III)PPO
IV)Physician's expense

A)I,II
B)II,III
C)II,IV
D)I,III

Question 5

How many different options are there available for the payment of life insurance proceeds for a death claim to the designated beneficiary?

A)Three.
B)Five.
C)Seven.
D)Eleven.

Question 6

Health Flexible Spending Arrangements are funded by:

A)Employee salary reductions only.
B)Employer contributions only.
C)Employee salary reductions or employer contribution,but not both.
D)Employee salary reductions,employer contributions,or a combination of both.

Question 7

Which of the following is not a nonforfeiture option?

A)Cash Surrender.
B)Extended loan.
C)Extended Term.
D)Reduced Paid-up.