EFX L&H FINAL EXAM LATEST UPDATE 2024/25 WITH 100% DETAILED VERIFIED ANSWERS, Exams of Business Administration

Download EFX L&H FINAL EXAM LATEST UPDATE 2024/25 WITH 100% DETAILED VERIFIED ANSWERS and more Exams Business Administration in PDF only on Docsity! EFX L&H FINAL EXAM LATEST UPDATE 2024/25 WITH 100% DETAILED VERIFIED ANSWERS If a beneficiary is designated as irrevocable, how may the policy owner change the beneficiary? The beneficiary may only be changed if the irrevocable beneficiary provides written consent Who provides an underwriter with information concerning an applicants health history? The medical information bureau To who must insurance producers report changes of business or residence address to? The department of insurance When must coverage for a new born begin under an individual disability policy? At the moment of birth... How is the state insurance guaranty association funded? By its members & authorized insurers are required to contribute to a fund to provide for payment of claims An agents license authorizes him/her to represent who? The insurance company and NOT the insured. Who is the MIB made up of and why? Made up of insurers so the companies can compare the information they have collected on the potential insurable person with information of insurers may have discovered When is the earliest a life insurance policy can go into effect? When the application is signed and a check is given to the agent Give an example of apparent authority An agent accepting an overdue premium past the grace period What is the basis for a claim against an insurance policy? Loss A person must be enrolled into Medicare part A & B in order to do what? In order to apply for Medicare supplemental plans The consideration on part of the insured is what? Is the payment of premiums , representations on the application , & a statement of good health. Qualified plans must have a beating requirement and must also be what? Must be permanent & not temporary The amount of social security disability benefits is based on the persons what? The persons (PIA) Primary Insurance amount A 63 year old man is planning to be employed until age 70. When will he be eligible for Medicare ? Age 65, regardless of his employment status If he is still insured under his employers group health plan then the Medicare care plan will be a secondary How can long term care "LTC" benefits be received tax free by an individual ? Yes... they have a poor risk What's the minimum schedule for payment of benefits to the insured? Companies may specify the time period of how many days for payment of claims? Monthly Period of 45-60 days for payment of claims What must be considered in a replacement policy? List 3 factors - policy benefits - coverage limitations - policy exclusions The insureds assets won't be considered Under the terms of the 10 day free look period, a claim will be paid when? If the premium has been paid and the policy has not been returned An insurer invests the cash value of a fixed annuity in what account? General account Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive Nothing; the payments will cease "Straight or pure life annuity will pay a specific amount of income for the remainder of the annuitants life. The payment will cease at death Under the affordable care act, which classification applies to health plans based on the benefits and the amount of covered costs? Metal Level classification What are the 4 metal level classifications under the affordable care act? Bronze, silver, gold, platinum A paid up whole life insurance policy will endow at age ? 100 What's the definition of twisting? Is a misrepresentation that persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another *the use of misrepresentation or trickery to get someone to lapse a life insurance policy and buy another usually in another company. Certain conditions such as what will automatically qualify the insured for disability benefits. Which disability policy provision allows for this? Certain conditions such as dismemberment or blindness. The presumptive disability provision allows this Premium payments for personally-owned disability income policies are not what? Are not taxable.... Decreasing term insurance is often used to Cover a mortgage What's the accumulation period? The time during which the insured invest money in the annuity ... Any universal policy is characterized by .. Any variable product is characterized by .. By a flexible premium. By the use of separate accounts What are paid-up additions? Are the same as the base plan "Buying more of the coverage you already have" What's the default settlement option for life insurance policy proceeds? Lump sum "payment of cash in a single lump-sum payment" A group blanket policy is best suited for whom? Students in a public school What would provide an underwriter with information concerning an applicants health history? Medical information bureau (MIB) Which provision allows the insurer to subtract the missed premium from cash values in order to keep the policy from lapsing Automatic premium Loan Which non forfeiture option allows a policy owner to use the existing cash value to purchase a policy of the same face amount as the original policy for as long as the policy will buy? Extended term insurance What grants express authority to an agent? Agents contract with the principal If a life agent wants to sell variable life polices , what license must the agent obtain? A securities license " variable products are considered securities, and are regulated by the securities & exchange commission (SEC) People must be licensed to receive what? Commission for insurance transactions