Deck 17: Applications in Risk Management

Question 1

All of the following must be Included in a life insurance illustration except:

A) Initial death benefit.
B) "Life Insurance Illustration" must appear on each page.
C) Marital status of the insured.
D) Name of insurer.

Answer 1

C

Question 2

Workers' compensation benefits are:

A) Federally administered.
B) Income tax free.
C) Income taxable.
D) Lost wages.

Answer 2

B

Question 3

Pension maximization is a / an:

A) Annuity strategy.
B) Disability strategy.
C) HSA strategy.
D) Life insurance strategy.

Answer 3

D

Question 4

Which of the following is the sale of a terminally ill person's life insurance contract to a third-party business?

A) Accelerated Benefit rider.
B) Insurability protection rider.
C) Life Settlement.
D) Viatical Settlement.

Question 5

All of the following are deductible medical expenses except:

A) Outpatient treatment at a center for alcohol or drug addiction.
B) Participation in a smoking-cessation program.
C) Participate in a weight-loss program proscribed by a physician.
D) Residential nursing home care if medically necessary.

Question 6

Which of the following is not an example of a material change for a life insurance policy?

A) Change in cash surrender value.
B) Change in death benefit.
C) Change in loan value.
D) Change in premium payment.

Question 7

The qualified intermediary for a 1035 exchange for a life insurance policy is:

A) Attorney.
B) Insurance company.
C) Insurance agent.
D) Insured.

Question 8

Which of the following statements on workers' compensation benefits is correct?

A) Medical expenses without limit on time / with limit on money.
B) Medical expenses with limit on time / with limit on money.
C) Medical expenses with limit on time / without limit on money.
D) Medical expenses without limit on time / without limit on money.