Q. All students attending a large university could be covered by, "a blanket policy". P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. Can more than one person make contributions to a prepaid tuition account? In many states, a participant can receive special state incentives, including state tax treatment that mirrors the federal tax treatment, state income tax deductions/credits and/or other benefits, based on participation in their states program(s). Savings: Savings plans (also known as investment plans) enable participants to save money in a college savings account on behalf of a designated beneficiary. Pre-admission certification is used to prevent unnecessary medical costs. 2003-2023 Chegg Inc. All rights reserved. Chapter exam 2: intro to health insurance Flashcards | Quizlet Proceeds will go to the contingent beneficiary, An accident policy will most likely pay a benefit for an. Which of these is an element of a Variable Life policy? No. Variable Whole Life Insurance can be described as. All Rights Reserved. Important legal information about the email you will be sending. Which contract permits the remaining partners to buyout the interest of a disabled business partner? However, you should contact the 529 plan of your choice to determine any restrictions that may apply. Q. You can use your funds to pay for expenses not covered by the scholarship, such as room and board, books and other required technology or supplies. Q. Q. On a life insurance policy, who is qualified to change the beneficiary designation? Dread disease insurance". These plans allow participants to save money in an account in which the earnings will grow free from federal income tax and, when used to pay for qualified expenses may be withdrawn federal income tax-free. Check with your 529 plan to determine what eligible expenses are allowed by the plan. Q. Five years later, T commits suicide. If a Key Employee life policy is purchased on her life, which of these statements would be true? Proceeds will go to the contingent beneficiary. A. In this situation, coverage became effective on the date the policy was delivered and first premium collected. Approved premium rates for group health insurance shall be guaranteed by the insurer for an initial period of not less than 12 months. Both are involved in a fatal accident where K dies before P. Therefore, part of your estate planning might be to update the successor designation, which stipulates who will take over management of the account if you pass away. A. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. A provision that requires the insured to pay the first portion of covered expenses before Major Medical coverage applies is called an initial deductible. Chapter 3 Exam Questions Flashcards | Chegg.com B. As a general rule, you should contact the program in your state to determine the specific state tax rules that apply to investing in a 529 plan. What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? Insurers organized under the laws of North Carolina are called. 213 license Flashcards | Chegg.com Normally, a guardian is required to be appointed in the Beneficiary clause of . You may or may not want to appoint the guardian as trustee. A. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. Which statement is true regarding a minor beneficiary? An insured is past due on his life insurance premium, but is still within the Grace Period. Which statement is true regarding a minor beneficiary. Contact the plan's administrator for specific rules governing your plan. Q. Disability Income policy would pay monthly benefits. A. These plans are often called Direct Sold and are typically offered with low fees and no commissions. . No. Q. Whats the difference between a 529 prepaid tuition program and a 529 savings program? Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? It is a violation of law in some jurisdictions to falsely identify yourself in an email. If the agreement is funded with individual life insurance, what would it require? Grandparents, other relatives or family friends can all be account owners, or simply choose to contribute to an existing account. A trust can also be an effective tool for transferring assets to an adult child, while potentially reducing estate taxes and directing how you would like the assets to be handled after you have passed away. At Fidelity, for example, you can: As always, if you want to name children as IRA beneficiaries, make sure your designations are up to date. An employer pays the premium for a health policy covering an employee. This type of coverage is known as: "Key Employee Disability Income." To learn more about a particular 529 plan and open an account, you can contact the state which administers the program directly. Certain proprietary institutions and post-secondary vocational institutions and certain institutions located in foreign countries are also eligible educational institutions. Are there restrictions regarding 529 plans and educational savings accounts? Which of these require an offer, acceptance, and consideration? Answer: rule 34 is a inappropriate website about fictional characters Explanation: Advertisement An insured must notify an insurer of a medical claim within how many days after an accident? A. Q. Who controls a 529 prepaid tuition account? Is beneficiary a minor meaning? "Act of war". Be sure to check the plan details for the prepaid plan in your state. The beneficiary or the beneficiarys parent may claim a Hope Scholarship Credit or Lifetime Learning Credit for qualified tuition and related expenses, provided other eligibility requirements are met, but cannot use the same expenses to justify a tax-free distribution from a qualified tuition program. What are the most common investment options offered by Section 529 savings / investment plans? Which of the following BEST describes how a Preferred Provider Organization is less restrictive than a Health Maintenance Organization? Each 529 plan make available all forms necessary for changing the beneficiary on an account. Name children in any of these ways as "Contingent beneficiaries;" for example, you may want to name your spouse as the primary beneficiary, but if your spouse passes away before your IRA is transferred, then the assets would go to your children. No. Disability policies do NOT normally pay for disabilities arising from an act of war. K applies for a life insurance policy on herself and submits the initial premium with the application. A. You might also want to plan to cover the cost of college education through insurance, or to provide for your children into adulthood, as well. Do 529 plans guarantee college admission for my child? As the child ages, the investment mix is automatically reallocated and becomes more conservative as the beneficiary approaches college. W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. Does my child have to go to an in-state school? Additionally, paying for education may be a concern as children transition into adulthood and beyond. Normally, a guardian is required to be appointed in the Beneficiary clause of the contract A level premium indicates the premium is fixed for the entire duration of the contract A policyowner is able to choose the frequency of premium payments through what policy feature? Is it too late to open an account? You should check with the program to determine who the benefits can be transferred to or how to receive a refund from the account. While trimming the hedges, J cuts off one of his fingers. Can you change investment options once you have opened an account? Consideration clause". safeguard the insurer from an applicant who is contemplating suicide, The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called, The incontestable clause allows an insurer to, contest a claim during the contestable period, All of these statements about the Waiver of Premium provision are correct EXCEPT, Insured must be eligible for Social Security disability for claim to be accepted". Single premium is not used when paying for health insurance policies. Investor-Originated Life Insurance his is done when an investor (or stranger) persuades an individual to take out life insurance specifically for the purpose of selling the policy to the investor. If you haven't already placed assets in a 529 plan, Uniform Gifts to Minors Act (UGMA), or Uniform Transfers to Minors Act (UTMA) account, doing so during your lifetime may be a strategic way to reduce the value of your taxable estate while working toward education savings goals. Q. The employer receives the policy and each employee is issued a certificate. Q. The Meaning of the "Unnecessary Rigor" Provision in the Utah Constitution A. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. what is rule 34 ?????????????????????????? - Brainly.com Dread disease insurance provides benefits for ONLY specific types of illnesses such as cancer or stroke. Trusts can be especially beneficial for minor children, as they allow for more control of the assets, even after your death. A. For more information, please contact the State Historic Preservation Office at (801) 533-3559 or visit their . P, Q, and R are involved in a car accident and Q and R are killed instantly. Q. Chapter 4 Quiz Flashcards | Quizlet Primary carrier In double coverage situations, the insurer covering the employee who has the claim is called the primary insurance company. Notice of a claim is typically required within 20 days after the occurrence or a commencement of the loss. Can you change investment options once you have opened an account? D was actively serving in the Marines when he was killed in an automobile accident while on leave. opinion of whether the court made the right decision You may want to consult an advisor to see if 529 plans would be best for you. How you plan the transfer of your assets to your children will likely depend on whether they are adults or still minors. What is the primary factor that determines the benefits paid under a disability income policy. Copyright 1998-2023 FMR LLC. Feel free to get in touch with us via email. PDF 57-1-40 Reconveyance of trust deed or release of mortgage -- Procedures College Savings Plans Network. When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? D. Third party written, What policy would you recommend an employer adopt regarding use Q. The Entire Contract provision states that the application and policy contain all provisions and constitute the entire contract. What factor would affect her decision the most? Are withdrawals from a 529 plan exempt from federal income tax? What happens to my prepaid tuition plan if my child receives a full or partial scholarship? Entire Contract provision ""Nothing may be "incorporated by reference," meaning that the policy cannot refer to any outside documents as being part of the contract."". Which type of designation would fulfill this need? In most states, a trust, corporation, non-profit or government entity can also open an account. Does the account owner have to be related to the beneficiary? Qualified expenses include tuition, mandatory fees, books, supplies, and technology and other software or equipment required for enrollment or attendance. 4 - Life Insurance Premiums, Proceeds and Beneficiaries Accidental Death and Dismemberment provision loss of one or more hands, feet, arms, legs, or loss of sight. A. Which statement is true regarding a minor beneficiary? Is investment in 529 plans recommended by financial advisors? "by the employer". noncancellable A non cancellable policy is one which the insurance company cannot cancel and which premiums cannot be increased. When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the. If the employee paid for qualified medical expenses, the reimbursements may be tax-free". The premium upon conversion is based upon either attained age or issue age dependent upon the insurer. What type of beneficiary is his son? Are withdrawals from a 529 plan exempt from state income tax? Normally, a guardian is required to be appointed in the Beneficiary clause of the contract. *The minor must pay the debts of the insured's estate before receiving any of the proceeds, *The minor is entitled to receive the death proceeds immediately, *Normally, a guardian is required to be appointed in the Beneficiary clause of the contract, (In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the, policy or that a guardian be designated in the will.). All of these statements about Equity Indexed Life Insurance are correct EXCEPT, The premiums can be lowered or raised, based on investment performance, does not guarantee a return on its investment accounts, Which of these would be considered a Limited-Pay Life policy? What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured. The plans offer affordable, flexible, and tax-advantaged options that can ensure the door of opportunity is open for our children to access post-secondary education. hly basis builds quicker than one paid on an annual basis The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis. Depending on the relationship of the new and old beneficiaries, changing the beneficiary of an account may trigger a taxable event, which could also include a penalty, gift tax or both. Normally, a guardian is required to be appointed in the Beneficiary clause of the contract. Normally a guardian is required to be appointed in the beneficiary clause of the contract On an accidental death and dismemberment insurance policy, who is qualified to change the beneficiary designation? Change the beneficiary to a member of the beneficiarys family. The maximum sum payable would be the capital sum, or $25,000. Ten years later, this employee leaves Company X and begins working for Company Y. he die and the policy is still in force and unchanged, where would the death proceeds be directed? Q. A. Which premium schedule results in the lowest cost to the policyowner? Q. Most states offer residents the opportunity to invest in the plan directly though the state. What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made? You may open an account for an individual of any age, and the account may be used immediately. Issue the policy with an altered Time of Payment of Claims provision. Does the account owner have to be related to the beneficiary? Normally a guardian is required to be appointed in the beneficiary clause of the contract. Some plans may charge additional fees or penalties on non-qualified distributions. Are there other tax benefits with the program? Q. Which statement regarding the Change of Beneficiary provision is true? Warranty A warranty that is not literally true in every detail, even if made in error, is sufficient to render a policy void. Do 529 plans guarantee college admission for my child? The policyowner can change the beneficiary. Which of these statements concerning an individual Disability Income policy is TRUE? T has Disability Income policy that pays a monthly benefit of $5000. You can even establish an account with yourself as the named beneficiary. In Major Medical Expense policies, what is the intent of a Stop Loss provision? Yes. What are qualified higher education expenses?. A. In a $5,000 per month Disability Income Policy, a covered partial disability will typically result in less than $5,000 per month regardless of the nature of the disability, An employee of 20 years recently retired at age 59 1/2. A policyowner is able to choose the frequency of premium payments through what policy feature? AT LEAST how many days before the effective date of a rate increase must an insurer provide written notice to individual accident and health policyowners? What about grandparents? And, as always, ensure your beneficiaries are up to date on other assets that have provisions for naming them, including investment and bank accounts with transfer on death (TOD) designations. When can a policyowner change a revocable beneficiary? In this situation, the insurance company must contest the policy within 2 years from the date of issue. What are the tax benefits of participating in a 529 plan? A. When can a policyowner change a revocable beneficiary? Additionally, either the account owner or the beneficiary must be a resident of the state that administers the plan at the time the application is signed. Can a prepaid tuition account be rolled over to another 529 program? A. What about grandparents? Under a Health Reimbursement Arrangement, reimbursements may be tax free if the employee paid for med expenses, Basic Hospital and Surgical policy benefits are. Once an account is established, who controls the investments? A. Which statement is true regarding a minor beneficiary? . closed panel A closed panel is when an HMO is represented by a group of physicians who are salaried employees and work out of the HMO's facility. "Variable Life". What is the underlying concept regarding level premiums? Q. The automatic premium loan provision is designed to. Which statement is TRUE regarding a group accident & health policy issued to an employer? Q. Irrevocable beneficiary. Life Premiums and Benefits Flashcards | Chegg.com Which statement is true regarding a minor beneficiary? With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period? Q. However, if your spouse is much younger, he or she may outlive one or more of your children and your children may need to wait many years after your death to receive the trust assets. "ABC is the policyowner, C is the insured, and ABC is the beneficiary". LIFE EXAM Flashcards | Chegg.com This is incorrect. Additionally, the beneficiary is typically required to be 15 years old or younger when the account is opened, thereby providing the plan with a minimal amount of time to begin investing the assets of the account in anticipation of the beneficiary using the plan to pay for higher education. Which best describes a Renewable Term Policy? What if my child doesnt go to college? This life insurance policy may be issued with a(n), M completes an application for life insurance but does not pay the initial premium. Home Flashcards 4 Life Insurance Premiums, Proceeds and Beneficiaries. M has the right to change the beneficiary designation at anytime. Which type of plan is better? Who can be a beneficiary? Who qualifies as a family member of the beneficiary? lower than the actual expenses incurred". J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. Which insurance product can cover his children? Q. T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What is the underlying concept regarding level premiums? E and F are business partners. Preservation Utah does not manage the National Register program. "from the date of issue". Normally, a guardian is required to be appointed in the Beneficiary clause of the contract K is the insured and P is the sole beneficiary on a life insurance policy. J would like to maintain the right to change beneficiaries. If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act? Home Blog Which statement is true regarding a minor beneficiary? A. Chapter 4- Policy Provisions, Options and Riders (Exam 2) Whats the difference between a 529 prepaid tuition program and a 529 savings program? The type of coverage where an employer pays the premium for a health policy covering an employee and receives the policy benefits when an employee becomes disabled and is usable to work is known as Key Employee, An insurer receives proof of loss for an acceptable medical expense claim under an Individual Health Insurance Policy. What if my child decides not to attend college? Eligible educational institutions are accredited post-secondary educational institutions offering credit toward a bachelors degree, an associate degree, a graduate level or professional degree, or another recognized post-secondary credential. How can I change the beneficiary on an account? Which statement is true regarding a minor beneficiary? (2023) The first portion of a covered expense that the insured is required to pay before Major Medical Coverage applies is called the. A. Answer D is correct. Note that some prepaid tuition plans may need a longer timeline to see a significant return on investment, so be sure to check with plan administrators. Which of these is NOT a type of agent authority? Q. The National Register of Historic Places is the official federal list of properties that are significant in American history, architecture, archaeology, and engineering. Federal law prohibits the investor from having direct control over the selection of specific investments; therefore the state and the investment manager typically offer multiple savings options for the investor to choose from when they open an account. Premiums and Proceeds Flashcards | Quizlet A business overhead expense policy would cover which of the following if a business owner becomes disabled? In this situation, the insured's maximum out-of-pocket expenses for 2013 would be $1,000. Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? S dies 1 year later of natural causes. A life insurance policy that has a level premium but allows the policyowner to choose from a selection of investment options is known as Variable Life. As part of the Tax Cuts and Jobs Act of 2017, eligible expenses for 529 plans may now include up to $10,000 in student loans of the beneficiary and certain K-12 tuition related expenses. An insured pays premiums on an annual basis for an individual health insurance policy. How do I open a 529 plan? What kind of receipt was used? *Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 *Normally, a guardian is required to be appointed in the Beneficiary clause of the contract How can I change the beneficiary on an account? Q. Are withdrawals from a 529 plan exempt from state income tax? A. Prepaid tuition plan benefits are generally designed to be used at in-state public universities and community colleges; however, in some cases, they can also be used at private institutions and at out-of-state public and private colleges and universities. Q. S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. "Bilateral". Table of contents What is contingent beneficiary? The tax information and estate planning information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Are there age or income limitations for participating in a 529 plan? Defer the use of your savings and leave contributions invested in the account. The correct answer is "Normally, a guardian is required to be appointed in the Beneficiary clause of the contract". of criminal history in hiring decisions? An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the, ion is NOT a requirement in a group life policy? Which of these statements made by the producer would be correct? An agent who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of. How you plan the transfer of your assets to your children will likely depend on whether they are adults or still minors. $2,100 $10,000 x 20% coinsurance + $100 deductible = $2,100. What if my child is in high school? Which statement is true regarding a minor beneficiary? Which of these would be considered a Limited-Pay Life policy? Yes. Consider what kinds of assets you'll leave to beneficiaries and the top estate planning concerns for each situation. The reason for a business having a Business Overhead Expense Disability Plan is to cover, The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the, A medical care provider which typically delivers health services at its own local medical facility is known as a.