Qualified and other retirement plans, group life insurance and social security
7.65
What is a cross purchase plan?
A buy/sell agreement where each partner buys life insurance on all remaining partners
What term is used to describe the contract that a PPO creates between an employer group and a medical provider?
Preferred Provider Arrangement (PPA)
When does coverage begin on a conditional receipt policy?
If the application is approved as applied for, coverage is immediately provided.
True or False: A DI Return of Premium rider returns a portion of premiums paid to owners at a predetermined time.
True
________ are college savings plans with high contribution limits set by the state sponsor.
529 Plans
Who would be considered a key employee?
A person who provides a unique and very important position within the company
Creating a ____________ Trust lets small employers with a common affiliation join together to buy group benefits
Multiple Employer
Is signed authorization required from the applicant in order to test for the HIV virus?
What policy provides benefits to the employer in the event a significant employee dies or becomes disabled?
A Key Employee policy
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
True or False: Entity buy/sell agreement proceeds are paid to the entity to buy the deceased owner’s business portion.
True
What is Blue Cross?
A nonprofit service provider that provides benefits for hospital expenses
What are the primary duties of an underwriter?
Assess risks, approve or deny applications, determine premiums, and protect the insurer against adverse selection
Define the term accident.
An outside event, beyond the control of the individual, that damages tissue or bone
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.
________________ is used to fund a buy/sell agreement.
Life insurance
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
Identify the acronym: APS
Attending Physician’s Statement
An ____________ DI policy provides coverage for disabilities that occur both on and off the job.
occupational
Define vesting
The right an employee gradually acquires by length of service at a company to receive employer-contributed benefits
What type of A&H policy is designed to pay benefits for chronic conditions and nursing home benefits?
A Long-Term Care policy
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
A DI policy will provide monthly income that does not exceed ____% to ____% of a person’s gross income.
50 to 60