Free Insurance Licensing Life-and-Accident-and-Health-or-Sickness-Producer-Combo Exam Dumps Questions & Answers

Taking out a loan under a life insurance policy:

• A.Results in loss of the tax-exempt status of the death proceeds
• B.Reduces the amount receivable upon surrender of the contract
• C.Results in a distribution of taxable income to the policyowner
• D.Changes the policy into a modified endowment contract (MEC)

If an insurer pays an individual accident and health insurance claim during a policy's grace period:

• A.The deductible is waived
• B.The amount of unpaid premium may be subtracted from the reimbursement
• C.A 10% service fee is charged
• D.The policy is canceled automatically at the end of the grace period

The needs approach in life insurance is most useful in determining:

• A.The amount of life insurance to be recommended to a client
• B.Which types of individuals the producer should attempt to meet
• C.Which companies offer the best array of life insurance products
• D.The most appropriate method for prospecting new clients

All of the following are common features found in health maintenance organizations (HMOs) EXCEPT:

• A.Wellness programs
• B.Discounts on local health spa memberships
• C.Twenty-four hour access to emergency care
• D.Outpatient medical services

Which statement describes the most likely federal income tax treatment of death benefits paid to the family of an insured under an accident and health insurance policy?

• A.Some benefits will usually be taxable
• B.Taxation depends on the beneficiary's tax bracket
• C.All benefits will be taxable
• D.Benefits will not be taxable