Qualified and other retirement plans, group life insurance and social security
Business uses of life insurance
Accident and health insurance basic concepts and principles
Marketing, Underwriting and policy delivery
Disability income insurance
100
An employee pays ____% of his wages to Social Security 

7.65

100

What is a cross purchase plan?

A buy/sell agreement where each partner buys life insurance on all remaining partners

100

What term is used to describe the contract that a PPO creates between an employer group and a medical provider? 

Preferred Provider Arrangement (PPA)

100

When does coverage begin on a conditional receipt policy? 

If the application is approved as applied for, coverage is immediately provided. 

100

True or False: A DI Return of Premium rider returns a portion of premiums paid to owners at a predetermined time. 

True 

200

________ are college savings plans with high contribution limits set by the state sponsor. 

529 Plans 

200

Who would be considered a key employee? 

A person who provides a unique and very important position within the company 

200

Creating a ____________ Trust lets small employers with a common affiliation join together to buy group benefits 

Multiple Employer 

200

Is signed authorization required from the applicant in order to test for the HIV virus? 

Yes 
200

What policy provides benefits to the employer in the event a significant employee dies or becomes disabled? 

A Key Employee policy 

300

What retirement plan is available to the self-employed individuals? 

There are two plans specifically available to the self-employed — a Keogh and a SEP IRA 

300

True or False: Entity buy/sell agreement proceeds are paid to the entity to buy the deceased owner’s business portion. 

True 

300

What is Blue Cross? 

A nonprofit service provider that provides benefits for hospital expenses 

300

What are the primary duties of an underwriter? 

Assess risks, approve or deny applications, determine premiums, and protect the insurer against adverse selection 

300

Define the term accident. 

An outside event, beyond the control of the individual, that damages tissue or bone

400

How many quarters of contribution credit does a currently insure individual have under the Social Security system?

Currently insured is determined by an individual having made a FICA contribution in 6 of the last 13 quarters. 

400

________________ is used to fund a buy/sell agreement. 

Life insurance 

400

Which concept indicates that the insured will be indemnified for actual losses and not profit from her injury/illness? 

The No Loss/No Gain Statute

400

Identify the acronym: APS 

Attending Physician’s Statement 

400

An ____________ DI policy provides coverage for disabilities that occur both on and off the job. 

occupational 

500

Define vesting

The right an employee gradually acquires by length of service at a company to receive employer-contributed benefits

500

What type of A&H policy is designed to pay benefits for chronic conditions and nursing home benefits? 

A Long-Term Care policy 

500

An approval type conditional receipt, dated 6/15, is approved on 9/1 as applied for. When did coverage become effective? 

On 9/1, the date the policy is approved 

500

A DI policy will provide monthly income that does not exceed ____% to ____% of a person’s gross income. 

50 to 60 

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