Online Access Free InsNV_Health02 Exam Questions

A policyowner borrows money from the insurer using the cash value of a whole life policy as security. If the loan and accrued interest are unpaid when the insured dies, what is the usual result?

• A.The death benefit is reduced by the outstanding loan and interest.
• B.The beneficiary receives the full death benefit and the loan is forgiven.
• C.The insurer cancels the policy immediately when the loan is made.
• D.The cash value is transferred automatically to the beneficiary instead of the death benefit.

The commission for the placement of nonadmitted insurance is paid by the insurer to the:

• A.surplus lines broker
• B.policyholder
• C.Division of Insurance
• D.third-party claimant

In a disability income policy, the elimination period is best described as:

• A.The period during which the policy cannot be cancelled
• B.The period after disability during which benefits are payable
• C.The maximum period for which premiums are waived
• D.The waiting period after disability begins before benefits become payable

Under federal law, a tax exempt Health Savings Account can only be opened for an individual who is:

• A.covered by a qualified High Deductible Health Plan
• B.eligible to be claimed as a dependent on another person ' s tax return
• C.entitled to Medicare benefits
• D.covered by Long Term Care Insurance

As a condition to granting a loan, a creditor can:

• A.require insurance in an amount greater than the debt
• B.assess a higher interest rate if insurance is not purchased
• C.accept assignment from an existing policy
• D.require insurance coverage through a specific insurer