Disability Income
An insured may find it more difficult to qualify for benefits, but will enjoy a lower premium, when a more restrictive definition of _________ is found in a Disability Income policy.
Disability
An individual is eligible for a Medicare Supplement as early as age:
65
Proof of loss is required within _____ days of loss.
90
True or False: In regards to Fixed Annuities: Upon annuitization, the annuity payments are level
True: Premiums are allocated to the insurer's general account. The insurer has the investment risk, and fixed annuities pay out a fixed level income benefit payment.
Proceeds from a buy-sell agreement are received ___________.
Income tax free
Elimination period may be as short as ____ days for accidents
Zero
Any policy designed to provide coverage for not less than 12 consecutive months for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital is the definition of:
Long-Term Care (LTC)
True or False: Mandatory Second Surgical Opinion is when the physician submits claim information prior to treatment, to determine in advance if the procedure is covered
False: This describes Precertification, not Mandatory Second Surgical Opinion
*Double Jeopardy*
Values and benefits may ____, but not_______
increase, decrease
An agreement that establishes a price with the intent to purchase the assets of a business should one of the parties to the agreement predeceases the other is called a ___________.
Buy-Sell Agreement
Most group Disability Income contracts are offered on a/an:
Nonoccupational basis
True or False: Medicare Pt. B generally pays 80% of covered physician, surgeon, and outpatient hospital expenses, with a monthly premium and annual deductible
True
Guaranteed Renewable means:
Renewable with adjustable premiums, by classification only
An immediate annuity must start providing income within ______ years of the first ______ payment
3, premium
Provide the owner of the policy with funds to recruit and train a replacement employee upon the death of an employee who contributes substantially to the success of a company
Key Person Life
*Double Jeopardy*
_____ _____ ______ is a business disability plan that can create a taxable event:
Business Overhead Expense
In regards to an LTC, It may define a preexisting condition as a condition for which advice or treatment was recommended or received within 6 months of the ______________
effective date of coverage
The Guaranteed Renewable Provision states that the policy is:
Renewable with premiums that may be increased for entire classes of insureds
When comparing life insurance to an annuity, an annuity:
Protects against the annuitant living too long
Social Security monthly retirement benefits are determined using a formula that calculates which of the following?
Primary Insurance Amount (PIA)
Which of the following elimination periods found in a disability income policy will result in the highest premium?
1 month, 60 days, 90 days, or 1 year?
1 month: The elimination period on a disability income policy can be thought of as a "time deductible." The shorter the elimination period, the higher the premium.
*Triple Jeopardy*
This rider will provide paid-up coverage if the insured cancels or lapses the policy due to nonpayment of premium.
Nonforfeiture
True or False: Under the Entire Contract Provision, Statements made to the applicant by the producer during the application process is part of the agreement.
False: The Entire Contract Provision (a Mandatory Uniform Provision) stipulates that the policy, a copy of the application, and any riders or endorsements constitute the entire contract between the insurer and insured.
Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z dies after 15 years of receiving income benefit payments. What does Z's beneficiary receive?
Nothing!
*Triple Jeopardy*
Widows and widowers cannot receive ______ _________ before age 62
survivor's benefits