Life and health

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Life and health
2012-01-25 00:39:29
Life health

Life and health
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  1. What is the primary difference between a traditional IRA and a Roth IRA?
    Withdrawals from a traditional IRA are tax free
  2. After what age are contributions to a Roth IRA prohibited?
    No age limit
  3. Group health plan can:
    Not discriminate in favor of certain employees
  4. What is the purpose of the corrdination of benefits clause in group health plans?
    To prevent duplicate benefits
  5. What term describes the situation where an employer changes group plan coverage to another insurer, and all employees eligible for coverage by the old plan are automatically covered under the new plan?
    No loss no gain
  6. What part of a mortgage reduction policy decreases over time?
    Face amount
  7. Convertible term life policies do not require the insured to show proof of insurability to convert the policy. Not every term life policy has the conversion option, but those that do will specify the new premium rate under the converted policy, which will be based on the insured’s original or attained age. If the original age is used, the premiums will be lower than if the attained age is used.
  8. What are two major types of life insurance?
    Term and whole
  9. What retirement plan is for self employed individuals?
  10. What retirement plan is for a nonprofit organization?
  11. What is the maximum amount a person age 35 can contribute to a 403B plan in 2011?
  12. What qualified plan is intended for small businesses with 100 employees or less?
  13. A deductible in major medical policies where the insured must pay for each cause in which medical care is sought
    A per cause deductible
  14. What private insurers relate specifically to property and casualty insurance?
    Risk retention groups
  15. What provision is not mandatory by the NAIC?
    Misstatement of age
  16. An endowment life insurance policy is characterized by:
    Endowing only upon the insured's death
  17. A policy with flexible premiums based on a changing current interest rate
    Current assumption whole life
  18. During the payout period of a variable annuity, the amount of each payment is based on
    Annuity units
  19. What is a disadvantage of fixed annuities?
    Earning potential may not be enough to offset the effects of inflation
  20. How does the number of annuity units affect the contract owner?
    It determines the contract owner's dollar value investment in the seperate account
  21. Maternity iss described as what type of hazard?
  22. Both stock and mutual insurers pay dividends: mutual insurers pay dividends to policyholders; whereas stock insurers pay dividends to stock holders. Both stock and mutual insurers are governed by a board of directors. Mutual insurers are required to be incorporated in most states.
  23. A nonparticipating insurer is
  24. What program receives funds from Medicaid to assist individuals in paying Medicare premiums?
    Medicare Savings Programs (MSPs) receive funds from Medicaid to assist individuals in paying Medicare premiums. Some MSPs pay a portion of Medicare Part A and B deductibles and coinsurance.
  25. The core benefits for medicare supplement include: Part A copayments for approved hospital charges during the 61st through 90th day of hospitalization; Part A copayments for approved hospital charges for the 60 lifetime reserve days; approved hospitalization costs for 365 extra days after all Medicare benefits have been exhausted; coverage for the blood deductible (first three pints); and the 20% Part B coinsurance.
  26. What health plans provide tax-free withdrawals?
    • Health savings accounts.
    • Health reimbursement accounts.
    • Flexible spending accounts.
  27. Which type of insurance marketing sells policies with large amounts of coverage for a low premium and typically limited coverage period?
    Insurance policies sold through vending machines are primarily accident policies sold at airports. Policies with large coverage are purchased at a low premium; however, the policy is valid for a limited period of time, which in most cases is the duration of the insured’s flight.
  28. Which clause under a health insurance policy describes the limits of coverage and identifies the parties to the contract?
    The insuring clause states the scope of coverage, the promise to pay benefits under the terms of the policy, any conditions within the policy, and any definitions required by law.
  29. How long is the waiting period for the waiver of premium rider in most life insurance policies?
    3 or 6 months.
  30. The primary difference between universal life and adjustable life is:
    Premium payments can be skipped.
  31. What are the two most common changes made to the cash value account of a variable universal life insurance policy each month?
    The most common adjustments made to the cash value of a variable universal life are charging the cost of insurance protection and adjusting the cash value based on the account's investment experience.
  32. What are the stipulations for a covered worker to receive Social Security disability benefits?
    The covered worker must be both fully insured and disability insured upon disability.
  33. With regard to an investigative consumer report, consumers must be informed that they have the right to request additional information about the report; such information must be provided to consumers within ____ day(s) if requested.
    Consumers must be informed that they have the right to request additional information about the report; such information must be provided to consumers within five days if requested.
  34. What may not be included in a consumer report, unless the consumer credit report is requested for a life insurance policy with a face amount of $150,000 or more, EXCEPT:
    Adverse information dating back more than three years.
  35. Which medical plans has essentially replaced the outdated base plans?
    Base plans, major medical and comprehensive plans, are outdated in the modern insurance market. Managed care plans have essentially replaced these plans.
  36. How long must an individual have been insured under the group life insurance plan in order to be eligible for the conversion privilege?
    5 years
  37. Life insurance proceeds are subject to taxation if they result from a transfer for value, or sale of the policy to a third party. A transfer of value constitutes any exchange of the policy benefits for something of value, whether it be money, an exchange of policies, or consideration for another contract. The transfer of value rule prevents a tax-free transfer of wealth. Taxation of proceeds from life insurance policies resulting from a transfer of value does not apply to assignment of benefits for collateral on a loan or transfer between the policyholder and the insured.
  38. The cash value is included in the death benefit, so it is not taxed
  39. Which of the following statements best describes how cash value in a life insurance policy is taxed?
    If the policy cash value is surrendered, the interest earned on the cash value is taxable as ordinary income.
  40. How are premiums for group life insurance taxed?
    Employer-paid premiums are tax-deductible as a business expense, but employee-paid premiums cannot be deducted from taxes.
  41. Disability income policies replace income while an insured cannot work; therefore, occupation is the most important factor in underwriting the coverage.
  42. OASDI is also referred to as:
    Social Security.
  43. To enroll in Medicare Part C, a person must have:
    Parts A and B.
  44. Alex wants a Medicare plan that will provide him with comprehensive health benefits. He does not want to purchase a Medigap policy. Which plan would you advise him to purchase?
    Part C, or Medicare Advantage, is a managed care plan that provides the greatest amount of coverage available from Medicare.
  45. Which of the following characterizes risk pooling?
    Spreading risk over a large number of people
  46. The law of large numbers provides the best data when groups consist of similar risks.
  47. Which of the following is the foremost doctrine in establishing a legal insurance contract?
    Insurable interest is the foremost doctrine for establishing a legal insurance contract.
  48. In New Mexico, how soon must a newly licensed agent be appointed to prevent his license from expiring?
    Newly licensed agents must be appointed within 60 days of receiving their license to prevent the license from expiring.
  49. ow long must agents and insurers keep a record of complaints since the date of last examination?
    3 years
  50. In New Mexico, a temporary license is valid for:
    3 months
  51. In New Mexico, how soon must an agent report a change of address to the department of insurance?
    Within 20 days of the change
  52. Which of the following terms describes the financial trust instilled in agents?
  53. How soon may an agent repeat a previously taken continuing education course?
    After three years
  54. In New Mexico, how frequently must the Superintendent examine domestic insurers?
    At least once every five years
  55. When is an insurance agent selling controlled business?
    When over 50% of his commissions are from business sold to himself, family and employer
  56. In a viatical settlement, the insured’s death protection does not end – instead, the insured (viator) sells his policy to a viatical settlement provider who becomes the owner and beneficiary of the life insurance policy, so when the viator dies, the viatical settlement provider receives the full policy proceeds. In return for assigning full ownership to the viatical settlement provider, the viator receives a fraction of the death benefit as a cash advance, typically in the amount of 50-80% of the death benefit. As you can see, the insured’s death protection does not end; it simply is a transfer of policy ownership.
  57. The entire contract provision states that any change to the policy must be made by an executive officer of the insurance company, with consent of all parties to the contract. An agent is not granted authority, under any circumstances, to make a change to a policy, or waive any provision.
  58. When an insured submits notice of claim to the insurance company, how many days does the insurance company have to provide claim forms to the insured for reporting proof of loss?
  59. For individual health insurance policies, how soon must the insured submit proof of loss to the insurer?
    For individual health insurance policies, proof of loss must be submitted to the insurer within 90 days of the date of loss.
  60. Reinsurance is a way insurers cooperate to prevent bankruptcy. The insurer that accepts the additional risk is termed the reinsurer. The insurer that gives the risk to the reinsurer is termed the ceding company or primary insurer. When a claim is submitted on a risk that was reinsured, the ceding company pays the portion of the loss equivalent to the risk retained. The ceding company then submits a claim for any portion of the loss that was reinsured to the reinsurer.
  61. Risk transfer is the essence of insurance. Risk is transferred from one party to another. The party assuming the risk, the insurer, charges a small premium in exchange for providing benefits to the party relieved of the risk, the insured, in the event of a covered loss.
  62. Preventive ear and eye exams are covered in HMOs until children reach the age of:
  63. What term means the difference between the actual charge and the Medicare approved charge?
    Excess charge.
  64. What is the term for the document Medicare beneficiaries receive indicating which medical services Medicare will not or probably will not cover?
    Advance beneficiary notice.
  65. What is a section 1035 exchange?
    The gains on exchanges of property, including life insurance policies, endowment, or annuities, are in most cases subject to taxation. Section 1035 of the Internal Revenue Code allows for certain exchanges without recognizing a gain or loss for tax purposes. The following exchanges may occur without tax consequences: 1.) life insurance policies may be exchanged for another life insurance policy, endowment, or annuity; 2.) endowments may be exchanged for another endowment or annuity; and 3.) annuities may be exchanged for another annuity.
  66. A nonqualified annuity:
    Interest earned in a nonqualified annuity is tax-deferred until distributions are made.
  67. Distributions made prior to age 59½ are subject to an additional 10% IRS penalty. Contributions to traditional IRAs are tax-deductible, and the gains earned are tax-deferred until withdrawal. Traditional IRAs are ideal for individuals who expect to have lower tax margins in retirement as compared to when the contribution is made.
  68. Recurrent disability is:
    a time period specified in the policy during which the recurrence of a disabling condition is considered an extension of a prior disability.
  69. Residual disability is:
    when the insured has a total disability, returns to work but can only perform some of the duties he could perform prior to the disability.
  70. Partial disability is:
    a condition in a disability income policy that permits the insured to be automatically eligible for total disability income benefits regardless of his ability to work.
  71. Fixed period installment
    pays periodic annuity payments to the annuitant for a stipulated period of time.
  72. Fixed amount installment annuity
    provides annuity payments for a specific period of time. Once the period ends, annuity payments cease.
  73. Certain policies are not covered by the guaranty association, such as HMOs and policies from fraternal benefit societies.
  74. A business continuation plan intended for a corporation in which the corporation purchases a portion of the deceased stockholder's shares?
    Section 303 plan
  75. Permanent life insurance policies are nonparticipating whereas term life insurance policies are participating.
  76. Agents selling variable insurance products must have a life and variable license, and a securities license.
  77. The insured and the primary beneficiary are killed in a car accident. Which of the following is true according to the uniform simultaneous death act?
    The Uniform Simultaneous Death Act states that if the insured and the primary beneficiary are in a common accident or died simultaneously, the policy proceeds will be paid as if the primary beneficiary died first, in which case the policy proceeds are paid to the insured's contingent beneficiaries or to the insured's estate.
  78. The class designation allows all members of a group with a set of common traits to be beneficiaries of a life insurance policy.
  79. What is the dependent age limit for individual health insurance policies in New Mexico?
  80. What describes New Mexico's definition of a small employer?
    An employer with at least 2 employees but no more than 50
  81. What is the single most important factor in underwriting disability income coverage?
    The insured’s occupation.
  82. The lifetime benefits provision prolongs the disability income policy benefit period beyond the age 65 cutoff to the insured’s entire life. The provision usually requires that the insured is totally disabled prior to age 65. Some policies specify that the disability must be caused from accidental injury, while other policies include both accidental injury and sickness. Policies that pay lifetime benefits for sickness usually require that the disability occur prior to the insured reaching the age of 55.
  83. All parties to a contract must be of a legal age, mentally capable of understanding the terms of the contract, and not influence by drugs or alcohol. Which of the following elements of a legal contract is described?
    Competent parties.
  84. Why are life and health insurance contracts aleatory?
    Because one party has the potential to receive more than the other
  85. Which type of law deals with legal liability for civil wrongs, such as negligence?
    Tort law.
  86. Group health insurance policies are regulated:
    Group insurance policies are governed by state insurance laws.
  87. A group health insurance plan that pays the entire cost of premiums is termed:
  88. What type of eligible group for health insurance consists of two or more employers or labor unions?
    METs and MEWAs.
  89. Policy cash value in a variable life policy is connected to the insurer’s:
    separate account.
  90. Which policy has premiums that are fixed and level?
    Variable life
  91. What nonforfeiture option permits the policyowner to use the cash values to purchase paid-up term life insurance coverage?
    The extended term option permits the policyowner to use the policy’s cash values to buy paid-up term insurance.
  92. When the extended term option is used, the face amount is:
    The cash values act as a single premium to purchase the extended term coverage, and the amount of the paid-up coverage is equivalent to the original policy's face value.
  93. What begins on the day an individual enters the hospital or a skilled nursing facility, and ends when care has ceased for 60 consecutive days?
    Benefit period.
  94. An individual who is not eligible for premium-free Medicare Part A coverage may apply for coverage during which of the following enrollment periods?
    Individuals who are not eligible for premium-free Part A coverage may apply for coverage during the following enrollment periods: initial, general or special.
  95. This provision identifies the named insured, type, and amount of coverage provided by the policy:
    Insuring clause
  96. The applicant's consideration consists of the statements made on the application to the best of the applicant's knowledge, and the applicant's initial premium.
  97. Which long-term level of care is nursing care and rehabilitation needed occasionally?
    Intermediate care is nursing care and rehabilitation needed occasionally.
  98. Another term that means to void an insurance policy is:
  99. Subrogation primarily applies to property and casualty, and seldom to life and health insurance. Subrogation is the right of the insurer to assume the rights of the insured and sue the responsible third party for damages inflicted upon the insured.
  100. Benefits under a medical expense policy are provided through which of the following methods?
    Indemnity means to restore a financial loss to the state prior to the occurrence of the loss. Insurance contracts held to the principle of indemnity state the insured is reimbursed for the amount of the financial loss but cannot profit. Indemnity applies to health insurance. For example, a medical expense policy indemnifies the insured for the financial loss of having a broken arm fixed.
  101. In New Mexico, what is the minimum grace period for life insurance policies?
    30 days
  102. In New Mexico, how long is the incontestability period for life insurance policies?
    2 years
  103. What best describes creditable coverage?
    Prior health coverage.
  104. COBRA only applies to employers with ____ or more employees.
    COBRA only applies to employers with 20 or more employees.
  105. What is the minimum number of months COBRA permits employees to continue their coverage under the group insurance plan?
    Employees must be permitted to continue their health coverage under the group plan for a minimum of 18 months after termination of employment from the group.
  106. Which annuity does not offer nonforfeiture options?
    Single premium immediate annuity
  107. Women's life expectancies are longer than men's, so men will receive higher monthly annuity benefits. People in advanced ages are closer to death, so their income benefit will be larger. Therefore, the 70-year old man will receive the largest monthly annuity benefit.
  108. A disabled covered worker, regardless of age, is eligible to receive full Medicare benefits after the waiting period and two years of receiving Social Security disability benefits - after 29 months.
  109. What percent of employees must be covered under a noncontributory plan?
  110. What percent of employees must be covered under a contributory plan?
  111. Whole life insurance
    acccumulates cash value and is designed to provide protection for the whole life of the insured
  112. Universal life insurance
    is a flexible premium and adjustable benefit contract that accumulates cash value
  113. Variable universal life
    offers varying benefits depending on insured's investment choices
  114. Most common settlement options
    Interest only

    Fixed period

    Fixed amount

    Life income
  115. Most common nonforfeiture options
    Cash surrender

    Extended term

    Reduced paid up
  116. Traditional IRA
    offers tax deductable contributions and tax deferred earnings
  117. Roth IRA
    offers tax free earnings, contributions are not tax deductable
  118. SEP
    simplified employee pension
  119. Part A medicare
    provides inpatient hospital care, skilled nursing facility care, home health care, and hospice
  120. Part B medicare
    Covers doctors visits, home health care, outpatient services and supplies.
  121. Core benefits of medicare supplement policy
    • Part A copayments for days 61-80 of hospitilization
    • Part A copayments for 60 lifetime reserve days
    • Blood deductable (three pints)
    • Part B copayments on medicare approved charges
  122. PPO
    Preferred provider organization, organization of hospitals and physicians provide services to insurance company clients
  123. Once the combined spending between the individual and the plan reaches $2,930 the individual is in his coverage gap known as the “doughnut hole” where the individual pays 86% of prescription drug costs until the he has spent $4,700 out-of-pocket over the course of the year.
  124. ________________________ issue(s) insurance policies but are not insurers themselves, and include financial institutions and credit issuing companies.
    Noninsurance sponsors issue insurance policies but are not insurers themselves. These include financial institutions including the banking and credit issuing companies.
  125. ______________ whole life policies provide a lower initial premium that can fluctuate up to a maximum premium as stated in the policy.
    Indeterminate premium
  126. Cash refund payout option is a type of refund life annuity in which the beneficiary receives the balance of premiums plus interest minus benefits that have already been paid out to the annuitant.
  127. What is not a typical policy exclusions for health insurance?
    Conformity with state statutes
  128. When a person enrolls in an HMO, preexisting conditions:
    All HMOs must have a period of open enrollment at least once per year which allows new individuals to enroll in the HMO. Preexisting conditions cannot be excluded.
  129. Some HMOs operate on a point-of-service basis allowing members to use medical providers not authorized by the HMO. The member may pay higher deductibles and coinsurance, but allows greater flexibility in choosing medical providers.
  130. Which of the following overruled the Paul v. Virginia case?
    United States v. South-Eastern Underwriters Association
  131. The refund life option pays the beneficiary periodic income for his entire life. If the beneficiary dies before the policy proceeds have been paid out entirely, then a second beneficiary receives the payments until the principal reaches zero. The refund life option provides a guarantee that the minimum benefit will be paid out
  132. Group health insurance policy rates are usually based on:
    Group health insurance policy rates are usually based on experience rating in which premiums are based on the claims experience of the entire group.
  133. Partial surrenders from a universal life policy are not taxable up to the amount of premium that makes up the cash value. Once all premiums have been withdrawn, then all withdrawals consisting of the interest portion of the cash value are subject to taxation.
  134. A policy may be given to the charity, and the value of the policy is tax-deductible. If the individual chooses to make the premium payments for the charity, those are also tax-deductible. The charity must retain ownership and rights of the policy for the tax deductions to be valid. The individual may also make the charity a beneficiary of a policy without relinquishing ownership. Payments of premiums are not tax-deductible, and the proceeds will be deducted from the estate as a charitable contribution. In this case, the policyowner retains the right to change the beneficiary if necessary.
  135. All Medigap plans except M and N cover the Medicare preventive care Part B coinsurance. Plan M only covers 50% of the Medicare Part A deductible.
  136. Employer group health plans must provide primary coverage to individuals with ESRD for ___ months, after which Medicare provides primary coverage.
    Employer group health plans must provide primary coverage to individuals with ESRD for 30 months, after which Medicare provides primary coverage.
  137. A person who is ________ is eligible for all Social Security benefits; whereas, a person with _______status is only eligible for partial Social Security Survivors benefits.
    fully insured; currently insured
  138. What type of policy provides limited, specialized health insurance coverage?
    Limited policies are specialized health insurance policies that provide specific coverage. Limited policies include accidental death & dismemberment (AD&D), travel accident, dread disease, hospital income, credit health, prescription, vision, dental and blanket coverage.
  139. What business health insurance plans are premiums tax-deductible and benefits taxable?
    Premiums for business overhead coverage are tax-deductible as a business expense. Benefits are taxable.
  140. What life insurance policies is not an example of third party ownership?
    With a split-dollar plan and key person, the employer owns, and is the beneficiary of the life insurance policy, and the employee is the insured. In group life, employees are insureds but do not own the policy – the employer owns the policy.
  141. The Social Security blackout period begins once an unmarried child reaches the age of 16, and until the age of 18, or 19 if attending high school full-time, during which Social Security benefits are paid to the child, not the widow.
  142. Positive HIV/AIDS test results are confidential, and are only sent to the applicant, the underwriter(s) assigned to the applicant, and anyone else that the applicant has given express written consent to receive the results.
  143. An agent is guilty of committing fraud. What must he obtain in order to transact insurance?
    An agent guilty of committing fraud will not be permitted to transact insurance. In order to be transact insurance again, the agent must obtain a waiver of written consent from his state insurance department.
  144. What is the maximum penalty for a person in violation of the Fair Credit Reporting Act?
    Persons accessing credit information are subject to civil and criminal action for failure to comply with the Fair Credit Reporting Act. Persons who fail to comply may be subject to pay a criminal penalty of up to $50,000.
  145. When is the general enrollment period for Medicare?
    The general enrollment period for Medicare is January 1st through March 31st annually.
  146. Benefits for life insurance policies are based on:
    Benefits for a life insurance policy are based on a cash payment of the face amount stated in the policy.
  147. An HMO member will _________ in his choice of medical providers, as compared to a person who is enrolled in a PPO.
    Compared to health insurance plans, the choice of medical providers in HMOs is much more limited. The HMO selects a group of providers who agree to provide health care at an agreed price and uphold the HMO’s standards.
  148. Private organizations are contracted by the CMS to process claims payments, enroll medical providers and investigate fraud. What is the term for these private companies?
  149. Parts A and B of Medicare are collectively referred to as:
    When Medicare was first introduced, it was composed of hospital and medical coverage (only Parts A and B), known as “Original Medicare.”
  150. Employer-sponsored group health plans may be either contributory or noncontributory. Contributory plans, where the employee pays premiums, require enrollment of at least 75% of all eligible employees. Noncontributory plans, where the employer fully funds the plan, require 100% of all eligible employees enroll. These requirements are designed to reduce the insurer’s risk and administrative costs.
  151. Fixed annuities will earn the insurer’s current interest rate. However, contract owners are quoted a guaranteed minimum interest rate (around 4%) that the annuity will earn at a minimum. If the current interest rate drops below the guaranteed minimum interest rate stated in the contract, the insurer is obliged to pay the guaranteed minimum interest.
  152. Fixed annuities have a guaranteed minimum interest rate at which the premium payments accrue interest during the accumulation phase and a fixed interest rate at which benefits are paid during the annuity phase. Each annuity payment is fixed. Fixed annuities allow annuitants to know the precise amount of each annuity payment throughout the entire annuity phase.
  153. How long is the benefit period for long-term disability income policies?
    Long-term disability income policies provide long benefit periods of two years or more, or until the insured reaches age 65.
  154. Securities licenses are obtained through:
    FINRA (Financial Indsutry Regulatory Authority) was formerly known as the NASD (National Association of Securities Dealers). Securities licenses are obtained through FINRA.
  155. A small employer is defined as an employer with at least 2 but no more than 50 eligible employees on a typical business day during any one calendar year.
  156. Medical providers are paid on a capitation basis.
  157. Medicare pays 100% of the cost of clinical laboratory services such as blood tests and urinalysis.
  158. How many months of creditable coverage must a person have to be eligible for HIPAA guaranteed issue under a new employer’s health plan?
    An individual who moves from one job to another is eligible for guaranteed issue under the new employer’s health plan if the individual’s total creditable coverage is at least 18 months.
  159. With respect to life & health insurance guaranty associations, what are agents prohibited from doing?
    Insurance producers are not permitted to use the existence of a state guaranty association to induce a sale of insurance or annuities.
  160. What is NOT a life insurance beneficiary designation option?
    Life insurance beneficiary designation options are: individuals, classes of individuals (per capita and per stirpes), estates, minors, trusts, and by succession (primary, contingent, and tertiary). Beneficiaries may be classified as revocable or irrevocable.
  161. Employer and employee contributions to qualified plans are tax-deductible, and accumulated earnings of the plan are tax-deferred until withdrawal.
  162. Interest accumulated on annuities that are owned by corporations are not tax-deferred. Rather, interest earned on corporate-owned annuities are taxed on a current basis. The annuitant must be a human in order for the interest to be tax-deferred.
  163. What document must applicants for variable life insurance receive at the time of policy application?
    The prospectus details investments and features of a variable life insurance policy.
  164. Term policies do not build cash value, and therefore the interest rate is irrelevant.
  165. What are the two types of war/military service exclusions?
    The two kinds of war/military service exclusions are: status clause and results clause.
  166. The aviation exclusion states that the insurer will not pay the claim if the insured dies due to involvement with aviation, such as a military pilot flying a jet aircraft. Individuals flying in commercial aircraft as fare-paying passengers would not be excluded from coverage.
  167. In a long-term care policy, preexisting conditions must be covered after:
    Many LTC policies do not cover preexisting conditions which were present six months prior to the policy’s effective date. This is the most restrictive definition of preexisting conditions an insurer can use. Six months after the effective date of coverage, all preexisting conditions must be covered.
  168. Interim term coverage is intended for people who plan on purchasing whole life insurance coverage within a year.
  169. Reentry term allows a policyowner to renew existing term coverage and receive a lower premium by providing proof of insurability.
  170. The ________ provision refunds 60-80% of the insured’s premiums and interest in cases where premium payments far exceed claims paid.
    The cash value surrender rider refunds 60-80% of the insured’s premiums and interest in cases where premium payments far exceed claims paid. This benefit is only paid when the disability income policy is terminated.