CT Life & Health Insurance Exam Review with Verified Solutions 2024, Exams of Nursing

Download CT Life & Health Insurance Exam Review with Verified Solutions 2024 and more Exams Nursing in PDF only on Docsity! CT Life & Health Insurance Exam CT Life & Health Insurance Exam Review with Verified Solutions 2024. What is the purpose of the Connecticut Life and Health Insurance Guaranty Association? - Exact Answer Protects policyowners against insolvent insurance companies CT Life & Health Insurance Exam If an employer decides to cancel a group life insurance plan, it must give at least --- days’ notice to the employees prior to the date of cancellation or discontinuation. - Exact Answer 15 Rebating is - Exact Answer an illegal practice in Connecticut G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive income? - Exact Answer 10 years Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? - Exact Answer Entire Contract provision A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as - Exact Answer a representation CT Life & Health Insurance Exam What is the underlying concept regarding level premiums? - Exact Answer The early years are charged more than what is needed P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - Exact Answer P will still receive declared dividends All individuals covered under a group contract will receive a - Exact Answer certificate Why must an insurance applicant Exact Answer all questions on the application? - Exact Answer Statements and representations on the application are part of the consideration for issuing a policy K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - Exact Answer Modified whole life CT Life & Health Insurance Exam Insurance policies are considered aleatory contracts because - Exact Answer performance is conditioned upon a future occurrence A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the - Exact Answer Policy loan provision Which statement is correct regarding the premium payment schedule for whole life policies? - Exact Answer Premiums are payable throughout the insurds lifetime/ coverage lasts until death of the insured Which of these is NOT a type of agent authority? - Exact Answer Principal Agent authority is what an agent is authorized to do on behalf of his company. The three types of agent authority include express, implied, and apparent authority. CT Life & Health Insurance Exam T cash surrenders a recently-issued whole life policy. He also requests that the proceeds be payable to an unrelated third party. T would likely be red-flagged for violation of - Exact Answer anti-money laundering rules T is given a receipt After completing a life insurance application and paying the initial premium. Under this situation, T's coverage is - Exact Answer conditional, depending on the insurers underwriting guidelines Variable annuities may invest premiums in each of the following, EXCEPT: - Exact Answer Insurers corporate business account Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary? - Exact Answer The initial premium was NOT submitted with the application What does a 401(k) plan generally provide its participants? - Exact Answer Salary-deferral contributions CT Life & Health Insurance Exam Which statement regarding the Misstatement of Age provision is considered to be true? - Exact Answer Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered Taking receipt of premiums and holding them for the insurance company is an example of - Exact Answer Fiduciary responsibility What is being delivered during a policy delivery? - Exact Answer Insurance contract to the proposed insured A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the - Exact Answer cost of insurance Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice? - Exact Answer 30 CT Life & Health Insurance Exam What action can a policyowner take if an application for a bank loan requires collateral? - Exact Answer Assign policy ownership to the bank The act of an insurance company publishing misleading information about its policy's provisions is called - Exact Answer False advertising If a producer fails to remit collected premiums to the insurance company, the producer may be in violation of - Exact Answer misappropriation A producer has influenced an existing policyowner to convert an existing whole life policy to Reduced Paid-up insurance. The producer then sells the policyowner a new universal life policy. This transaction is called a(n): - Exact Answer replacement L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will - Exact Answer adjust the death benefit to a reduced amount CT Life & Health Insurance Exam All of these are characteristics of an Adjustable Life policy EXCEPT - Exact Answer face amount can be adjusted using policy dividends If one producer provides a referral to another producer which results in the sale of an insurance contract, Who will likely be paid a commission? - Exact Answer The commission will likely be shared between the two producers Which of these actions does NOT constitute life insurance policy replacement? - Exact Answer Convert term coverage to a whole life policy T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide? - Exact Answer income that cannot be outlived by the owner A term life insurance policy matures - Exact Answer upon the insured's death during the term of the policy CT Life & Health Insurance Exam Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of - Exact Answer $10,000 How often must an insurance producer's license be renewed? - Exact Answer Every two years The incontestable clause allows an insurer to: - Exact Answer contest a claim during the contestable period Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - Exact Answer Life Income Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - Exact Answer 5 Additional coverage can be added to a Whole Life policy by adding a(n) - Exact Answer Decreasing term rider CT Life & Health Insurance Exam A policyowner may generate taxable income from with of the following Dividend Options? - Exact Answer Accumulation at Interest A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? - Exact Answer Waiver of premium 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? - Exact Answer Term life In a Life insurance contract, an insurance company's promise to pay state benefits is called the: - Exact Answer Insuring clause A -- is the signed document that starts the free-look period. - Exact Answer delivery receipt A Cost of Living rider gives the insured - Exact Answer additional death benefits CT Life & Health Insurance Exam A producer completes an application with a client for a $50,000 Life Insurance policy. At what point is the LATEST a Policy Summary and Buyers Guide must be given to the applicant? - Exact Answer Upon policy delivery At what point does an informal agreement become a binding contract? - Exact Answer When consideration is provided by one of the parties to the contract Quarterly premium payments increase the annual cost of insurance because - Exact Answer interest to the insurer is decreased while the administrative costs are increased Which of these life insurance riders allows the applicant to have excess coverage? - Exact Answer Term rider CT Life & Health Insurance Exam S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own? - Exact Answer Variable Whole Life Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? - Exact Answer The employee Which of the following is considered an element of Variable Life Policy? - Exact Answer Underlying equity investment A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid - Exact Answer mandatory income tax withholding on the transfer amount In Connecticut, the HIV consent form - Exact Answer must disclose who will be receiving a copy of the test results CT Life & Health Insurance Exam Which of these is NOT considered to be a right given to a policyowner? - Exact Answer Modify a provision in the insurance contract Which of these is NOT a nonforfeiture provision contained in a life insurance policy? - Exact Answer Automatic Premium Loan Which statement is true regarding a minor beneficiary? - Exact Answer Normally, a guardian is required to be appointed in the Beneficiary clasue of the contract -- can be defined as "making an unfair comparison of two insurance policies" - Exact Answer Misrepresentation K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to reinstate the policy. All of these statements are correct about the policy's reinstatement EXCEPT - Exact Answer K will forfeit the right to use the automatic loan provision upon reinstatement CT Life & Health Insurance Exam K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a veneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n) - Exact Answer Installment Refund annuity A(n)--agent is a producer who writes and places coverage for a specific insurance company. - Exact Answer appointed Whose life is covered on a life insurance policy that contains a payor benefit clause? - Exact Answer child beneficiary - Exact Answer spouse Which of these is NOT an element of Life insurance premiums? - Exact Answer Morbidity rate An insurer may normally delay the payment of a cash value loan or surrender value for up to - Exact Answer 6 months