Life & Health Study Guide Rated A+

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? {Ans: Predicted needs of the family after the insured's death.}Which of the following is true regarding the taxation of the premium in group accidental death and dismemberment policies? {Ans: It is deductible as an ordinary business expense.}What is a penalty tax for nonqualified distributions from a health savings account? {Ans: 20%}Which of the following is INCORRECT concerning a noncontributory group plan? {Ans: The employees receive individual policies.}Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to change premium amounts? {Ans: Continuation provision}Using a class designation for beneficiaries means {Ans: Naming beneficiaries as a group}If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about {Ans: Whether an insurable interest exists between the individuals.}Which of the following Life Insurance policies would be considered interest sensitive? {Ans: Universal life}Which of the following is NOT among the goals of a Medicare supplement application? {Ans: Presuming the applicant