Business > EXAM > General Life Insurance Concepts| 40 questions| with complete solutions (All)

General Life Insurance Concepts| 40 questions| with complete solutions

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In which of the following instances would the premium be tax deductible? Correct Answer: Premiums paid by an employer on a $30,000 group term life insurance plan for employees The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the Correct Answer: Entire contract clause. Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must Correct Answer: Respond to the consumer's complaint. An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy? Correct Answer: $9,800 The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT Correct Answer: The insured's age at death. Which of the following applies to partial disability benefits? Correct Answer: Payment is limited to a certain period of time. If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it? Correct Answer: Unilateral An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged a $100 per day. How much will the insurance company pay? Correct Answer: 120 a day Long-term care coverage may be available as any of the following options EXCEPT Correct Answer: Endorsement to a health policy. A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a Correct Answer: Cross-purchase plan. An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change? Correct Answer: Applicant The paid-up addition option uses the dividend Correct Answer: To purchase a smaller amount of the same type of insurance as the original policy.

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