Insurance

Which of the following statements about SIMPLE retirement plans is true?

Which of the following statements about SIMPLE retirement plans is true?

Which of the following statements about SIMPLE retirement plans is true?
A) They are limited to employers with 100 or fewer eligible employees and who do not maintain another qualified plan.
B) Employees are not permitted to make SIMPLE pl

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AzJose

Which of the following requirements must be met by a top-heavy pension plan to retain its qualified ...

Which of the following requirements must be met by a top-heavy pension plan to retain its qualified ...

Which of the following requirements must be met by a top-heavy pension plan to retain its qualified status?
I.   A special rapid vesting schedule must be used for non-key employees.
II.   Certain minimum benefits or contributions must be provid

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AzJose

Under a unit-benefit formula, benefits are a function of both

Under a unit-benefit formula, benefits are a function of both

Under a unit-benefit formula, benefits are a function of both
A) earnings and years of service.
B) age and earnings.
C) age and gender.
D) years of service and position within a firm.

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AzJose

Which of the following statements about retirement benefits under pension plans is true?

Which of the following statements about retirement benefits under pension plans is true?

Which of the following statements about retirement benefits under pension plans is true?
A) Under a flat percentage of annual earnings defined benefit formula, each employee receives the same dollar benefit.
B) A benefit using final pay is

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AzJose

Which of the following statements about retirement ages in defined benefit pension plans is (are) ...

Which of the following statements about retirement ages in defined benefit pension plans is (are) ...

Which of the following statements about retirement ages in defined benefit pension plans is (are) true?
I.   The normal retirement age in most plans is 65.
II.   In a defined-benefit plan, the early retirement age is the earliest age an employe

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AzJose

What are the minimum age and service requirements that can be imposed on employees eligible to ...

What are the minimum age and service requirements that can be imposed on employees eligible to ...

What are the minimum age and service requirements that can be imposed on employees eligible to participate in a retirement plan?
A) age 18 and 6 months of service
B) age 21 and 1 year of service
C) age 21 and 3 years of service
D)

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AzJose

Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan, and 100 of ...

Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan, and 100 of ...

Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan, and 100 of these employees are considered highly compensated. All of the highly compensated employees are covered by the plan. What is the minimum number of

AzJose   128   2 Replies

AzJose

Which of the following statements regarding recent developments in employer-sponsored health plans ...

Which of the following statements regarding recent developments in employer-sponsored health plans ...

Which of the following statements regarding recent developments in employer-sponsored health plans is (are) true?
I.   Preferred provider organizations (PPOs) continue to dominate group health insurance markets.
II.   The number of employers o

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AzJose

An employer-funded plan with favorable tax advantages, which repays employees for medical care not ...

An employer-funded plan with favorable tax advantages, which repays employees for medical care not ...

An employer-funded plan with favorable tax advantages, which repays employees for medical care not covered by the employer's standard medical plan is a(n)
A) 401(k) account.
B) individual retirement account (IRA).
C) health reim

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AzJose

Which of the following is a characteristic of a health maintenance organization (HMO)?

Which of the following is a characteristic of a health maintenance organization (HMO)?

Which of the following is a characteristic of a health maintenance organization (HMO)?
A) unlimited choice of health-care providers
B) no premiums until care is provided
C) narrow, limited, medical services provided
D) great emp

AzJose   133   2 Replies

AzJose

One type of managed care plan has a network of preferred providers. When care is needed, the member ...

One type of managed care plan has a network of preferred providers. When care is needed, the member ...

One type of managed care plan has a network of preferred providers. When care is needed, the member has the option to seek care in the network or to go outside the network. If care is received outside the network, the member must pay substantially hi

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AzJose

Tracy had continuous group health insurance coverage at her previous employer for 6 years. Tracy ...

Tracy had continuous group health insurance coverage at her previous employer for 6 years. Tracy ...

Tracy had continuous group health insurance coverage at her previous employer for 6 years. Tracy decided to change jobs. Under federal law, if Tracy changes jobs, the new employer or group health plan must give her credit for previous and continuous

AzJose   167   2 Replies

AzJose

Which of the following statements is (are) true concerning high deductible health plans?I.An ...

Which of the following statements is (are) true concerning high deductible health plans?I.An ...

Which of the following statements is (are) true concerning high deductible health plans?
I.   An employee can withdraw money tax-free from a health savings account or health reimbursement account to pay covered medical costs.
II.   There is a

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AzJose

Advantages of cafeteria plans include all of the following EXCEPT

Advantages of cafeteria plans include all of the following EXCEPT

Advantages of cafeteria plans include all of the following EXCEPT
A) simplicity of benefit administration.
B) employees can select benefits that best match their needs.
C) reduced taxes for employees.
D) greater employer control o

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AzJose

Which of the following statements about cafeteria plans is (are) true?I.Unspent flexible spending ...

Which of the following statements about cafeteria plans is (are) true?I.Unspent flexible spending ...

Which of the following statements about cafeteria plans is (are) true?
I.   Unspent flexible spending account balances are refunded to the employee, tax-free, at year-end.
II.   Cafeteria plans enable employees to select benefits that meet the

AzJose   140   2 Replies

AzJose

Which of the following statements about group long-term disability income plans is true?

Which of the following statements about group long-term disability income plans is true?

Which of the following statements about group long-term disability income plans is true?
A) The definition of disability becomes less restrictive after a worker has been disabled for 2 years.
B) Coverage is provided for both occupational a

AzJose   115   2 Replies

AzJose

The Affordable Care Act includes a provision designed to help small employers make health insurance ...

The Affordable Care Act includes a provision designed to help small employers make health insurance ...

The Affordable Care Act includes a provision designed to help small employers make health insurance coverage available to their employees. This provision allows small employers to directly reduce their federal income tax by a percentage of the employ

AzJose   149   2 Replies

AzJose

The inability of the insured to perform some but not all of the important duties of his or her ...

The inability of the insured to perform some but not all of the important duties of his or her ...

The inability of the insured to perform some but not all of the important duties of his or her occupation is called
A) residual disability.
B) total disability.
C) recurrent disability.
D) partial disability.

AzJose   110   2 Replies

AzJose

Which of the following statements is (are) true regarding the calendar-year deductible used in most ...

Which of the following statements is (are) true regarding the calendar-year deductible used in most ...

Which of the following statements is (are) true regarding the calendar-year deductible used in most individual medical expense policies?
I.   Once the deductible is satisfied, no additional deductible is payable during the calendar year.
II.   

AzJose   112   2 Replies

AzJose

Which of the following statements about individual disability income policies is true?

Which of the following statements about individual disability income policies is true?

Which of the following statements about individual disability income policies is true?
A) Benefits are typically paid only for disabilities resulting from sickness.
B) Benefits paid for partial disabilities are usually greater than benefits

AzJose   110   2 Replies

AzJose

Which of the following statements is (are) true concerning benefit payments under long-term care ...

Which of the following statements is (are) true concerning benefit payments under long-term care ...

Which of the following statements is (are) true concerning benefit payments under long-term care insurance?
I.   Reimbursement policies pay for actual charges up to a specified daily limit.
II.   Per diem policies pay a specified daily benefi

AzJose   123   2 Replies

AzJose

Dirk suffered a heart attack and was rushed to the hospital where heart surgery was performed. His ...

Dirk suffered a heart attack and was rushed to the hospital where heart surgery was performed. His ...

Dirk suffered a heart attack and was rushed to the hospital where heart surgery was performed. His total bill for medical services was $50,000. Dirk has a major medical policy with a $1,000 calendar-year deductible and a $5,000 out-of-pocket limit. H

AzJose   159   2 Replies

AzJose

All the following are common exclusions in a major medical insurance policy EXCEPT

All the following are common exclusions in a major medical insurance policy EXCEPT

All the following are common exclusions in a major medical insurance policy EXCEPT
A) routine dental care.
B) surgeons' fees.
C) expenses covered by workers compensation laws.
D) cost of eyeglasses.

AzJose   183   2 Replies

AzJose

Some insurers offer a single-premium deferred annuity that does not begin paying benefits until an ...

Some insurers offer a single-premium deferred annuity that does not begin paying benefits until an ...

Some insurers offer a single-premium deferred annuity that does not begin paying benefits until an advanced age, such as 85. This product is called
A) endowment insurance.
B) equity-indexed annuity.
C) life income with guaranteed pa

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AzJose

Which of the following statements is (are) true with regard to the adequacy of IRA funds during ...

Which of the following statements is (are) true with regard to the adequacy of IRA funds during ...

Which of the following statements is (are) true with regard to the adequacy of IRA funds during retirement?
I.   To assure lifetime income, the IRA funds can be used to purchase a life annuity.
II.   The duration of IRA benefit payments depend

AzJose   132   2 Replies

AzJose

Which of the following statements is true concerning traditional and Roth IRAs?

Which of the following statements is true concerning traditional and Roth IRAs?

Which of the following statements is true concerning traditional and Roth IRAs?
A) The investment income portion of Roth IRA distributions must be reported as taxable income.
B) Roth IRA contributions are tax deductible.
C) There are

AzJose   156   2 Replies

AzJose

Which of the following statements about converting a traditional IRA to a Roth IRA is (are) true? ...

Which of the following statements about converting a traditional IRA to a Roth IRA is (are) true? ...

Which of the following statements about converting a traditional IRA to a Roth IRA is (are) true?
I.   Such conversions can be done with no income tax consequences.
II.   Qualified distributions from a Roth IRA after a conversion are received

AzJose   167   2 Replies

AzJose

An immediate life annuity offers all of the following benefits EXCEPT

An immediate life annuity offers all of the following benefits EXCEPT

An immediate life annuity offers all of the following benefits EXCEPT
A) Immediate annuity payments are entirely exempt from federal income tax. 
B) Simplicity for the purchaser as he or she does not have to manage investment funds.

AzJose   135   2 Replies

AzJose

Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive ...

Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive ...

Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive $500 per month from the insurer, and her life expectancy is 15 years (180 months). What is the exclusion ratio in this case?
A) 33.33 percent

AzJose   152   2 Replies

AzJose

Bridget started to fund a variable annuity. Three years later, she experienced financial difficulty. ...

Bridget started to fund a variable annuity. Three years later, she experienced financial difficulty. ...

Bridget started to fund a variable annuity. Three years later, she experienced financial difficulty. She called her agent and cancelled the contract. The insurer returned all but 4 percent of the account balance. The 4 percent kept by the insurer is

AzJose   114   2 Replies

AzJose

During the funding period, the premiums paid for a variable annuity are used to purchase

During the funding period, the premiums paid for a variable annuity are used to purchase

During the funding period, the premiums paid for a variable annuity are used to purchase
A) annuity units.
B) immediate participation shares.
C) mutual fund shares.
D) accumulation units.

AzJose   134   2 Replies

AzJose

The gross premium for life insurance is equal to

The gross premium for life insurance is equal to

The gross premium for life insurance is equal to
A) the present value of the future death claim plus an expense loading.
B) the present value of the future death claim less the sum of the premiums paid when death occurs.
C) the pres

AzJose   142   2 Replies

AzJose

Charles, age 65, owns a paid-up $250,000 whole life policy on his own life. Charles is doing some ...

Charles, age 65, owns a paid-up $250,000 whole life policy on his own life. Charles is doing some ...

Charles, age 65, owns a paid-up $250,000 whole life policy on his own life. Charles is doing some estate planning and would not like this policy to be included in his gross estate for federal estate tax purposes. Which of the following statements is

AzJose   167   2 Replies

AzJose

Some life insurers sell insurance directly to the public by using telephone representatives or ...

Some life insurers sell insurance directly to the public by using telephone representatives or ...

Some life insurers sell insurance directly to the public by using telephone representatives or fee-only financial planners. As the marketing expenses are substantially lower, the insurer can pass the savings on to the purchaser. The life insurance so

AzJose   121   2 Replies

AzJose

Actuaries at Term Life Insurance Company calculated the net single premium per thousand for a ...

Actuaries at Term Life Insurance Company calculated the net single premium per thousand for a ...

Actuaries at Term Life Insurance Company calculated the net single premium per thousand for a five-year term policy for a man age 32 to be $5.04. To calculate the net level premium for this policy, the net single premium should be
A) divided by

AzJose   164   2 Replies

AzJose

Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was ...

Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was ...

Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be $13,740. The future value of $1 deposited at the start of the year for 10 years, assuming 5 perc

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AzJose

The gross premium is defined as

The gross premium is defined as

The gross premium is defined as
A) the net premium plus the loading allowance.
B) the terminal reserve plus the commission.
C) the net premium minus expenses.
D) the sum of all acquisition expenses.

AzJose   124   2 Replies

AzJose

The difference between the present value of future benefits payable under a life insurance policy ...

The difference between the present value of future benefits payable under a life insurance policy ...

The difference between the present value of future benefits payable under a life insurance policy and the present value of net premiums for the policy is the policy's
A) retrospective reserve.
B) policyholders surplus.
C) prosp

AzJose   117   2 Replies

AzJose

Life insurance policy reserves (Multiple Choice)

Life insurance policy reserves (Multiple Choice)

Life insurance policy reserves
A) are always equal to the policy's cash surrender value.
B) are a major asset of life insurance companies.
C) are paid to the beneficiary when the insured dies.
D) are a major liability of

AzJose   159   2 Replies

AzJose

Lisa does not want her life insurance policy included in her gross estate when she dies. Lisa can ...

Lisa does not want her life insurance policy included in her gross estate when she dies. Lisa can ...

Lisa does not want her life insurance policy included in her gross estate when she dies. Lisa can remove the life insurance policy from her estate if she does which of the following more than 3 years before she dies?
A) borrow the cash value of

AzJose   178   2 Replies

AzJose