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XCEL Georgia Life, Accident, & Sickness Exam Simulator Includes Accurate And Verified Questions Tailored For Life, Health, Property, And Casualty Insurance Licensing Exams Across Various States. It Mirrors The Actual Testing Experience With Modules On Insurance Terms, Policy Types, Underwriting, State-Specific Regulations, Ethics, And Claims Handling
A policy owner may generate taxable income from which of the following Dividend Options?
- Nonforfeiture
- Cash
- Accumulation at Interest
- Reduced Premium - ANSWER-C) Accumulation at Interest
While policy dividends are not taxable, any interest paid on them is taxable income in the year the interest is credited to the policy.
N is a 40-year old applicant who would like to retire at age 70.He is looking to buy a life insurance policy with level premiums, 1 / 4
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permanent protection, and be paid-up at retirement. Which of these should N purchase?
- 30 Pay Life
- Term to Age 70
- Universal Life
- Adjustable Life - ANSWER-A) 30 Pay Life
Limited pay whole life policies have level premiums that are limited to a certain period.
The coordination of benefits (COB) provision exists in order to
- Avoid duplication of benefit payments
- Avoid excessive hospitalization
- Lower insurance premiums
- Maximize patient care - ANSWER-A) Avoid duplication of
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benefit payments
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The purpose of the coordination of benefits (COB) provision, found only in group health plans, is to avoid duplication of benefit payments.
In health insurance policies, a waiver of premium provision
keeps the coverage in force without premium payments:
- Whenever an insured is unable to work
- During the time an insured is confined in a hospital
- Following an accidental injury, but not during sickness
- After an insured has become totally disabled as defined in the
policy - ANSWER-D) After an insured has become totally disabled as defined in the policy
The waiver of premium provision keeps the coverage in force without premium payments if the insured has become totally disabled as defined in the policy.
Q is looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time period.Which of these policies should Q purchase?
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- Term life
- Straight life
- Endowment
- Annuity - ANSWER-A) Term life
Term life provides the greatest amount of protection for a temporary period.
With Optionally Renewable Health policies, the insurer may:
- Renew the policy only if no claims have been filed the
- Renew the policy only with the insured's consent
- Review the policy whenever they please and determine
- Review the policy annually and determine whether or not to
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previous year
whether or not to renew it
renew it - ANSWER-D) Review the policy annually and determine whether or not to renew it