Exam 1: Health: Health and Life Insurance

Alex receives a conditional receipt after paying the initial premium with his policy application. The next day Alex submits a clean bill of health report to his insurance agent. Later that night, Alex is killed in a hit and run accident while out jogging. What is the insurance agency's responsibility in this instance?

What is the purpose of a reentry term?

When Eric and his wife divorced, Eric wanted to give the life insurance policy he has on his wife to their children, relinquishing all control of the policy. What type of assignment would Eric probably use to make this work?

Jane purchases a 15-year temporary annuity certain contract. When she retires at age 75, she begins receiving her annuity payments. When Jane reaches 90 years of age, what will happen to her annuity?

An agent accepts the initial premium with the sale of a policy and then forwards it on to the company. If there is nothing in the agent's contract about continuing to accept premium payments, what type of authority does this agent have?

What is the purpose of a flexible policy?

Jeff is issued a receipt for payment of his first premium and is informed that his coverage is effective immediately, until the policy is either issued or declined by the underwriters. What type of receipt did Jeff receive with his premium payment?

Why is the Securities and Exchange Commission (SEC) involved in annuities?

What is the purpose of the suicide clause?

Dependents are individuals that the insured can add to their policy. These can include which of the following?

Which of the following explains a two-tiered annuity?

If an insured individual combines a whole life insurance policy with decreasing term coverage, what type of policy do they have?

Enrique purchased a life insurance policy when he was 45 years old indicating his 50 year old wife as the sole beneficiary of his policy. When the insurer recorded the information he switched their ages. An audit of the files 10 years later reveals this mistake. What happens to Enrique's life insurance policy?

Some policies come with a free look option. Although not required, most states offer a standard number of days for this free look. What is the standard length of time most states offer?

What is the justification for the decreasing term life rider as part of the retirement income annuity?

Studies have indicated that people who drive red colored cars are more likely to receive traffic tickets. Bob refuses to drive red cars. Bob is managing the risk of traffic tickets through.

If an individual wants to purchase $500,000 in whole life insurance but is only able to purchase $300,000, what option do they have to increase the value up to $500,000 of death insurance?

When an individual purchases an annuity they are actually purchasing accumulation units. What is the purpose of accumulation units?

When is a policy considered delivered?

Which part of the annuity is taxable as income?