AD Banker Retention Questions Ch 6

In a group life insurance plan, the employee has control over which of the following?

• Choice of insurance company

• Type of policy

• Choice of beneficiary

• Mode of premium payments

The Master Policy for a group life plan goes to the employer. What does the employee receive?

• Certificate of Insurance

• Change of beneficiary form

• Copy of the Master Policy

• Claim form package

When a group insurance plan is identified as contributory, it means all of the following EXCEPT:

• Employees pay a portion of the cost of their benefit

• Employers must enroll 100% of eligible employees

• Employees must be eligible to participate

• Employers are responsible for collecting the premiums employees pay

In a credit life plan, who is the beneficiary?

• The wife of the insured

• The husband of the insured

• The children of the insured

• The creditor

Industrial life insurance is typically sold in face amounts of? *

• $1,000 or less

• $5,000 multiples

• $10,000 to $20,000

• Up to $50,000

One of the purposes of a Buy-Sell Agreement is which of these?

• To provide the business with funds in the event of the death of a key person who is not an owner

• It describes which relatives of a business owner have the right to purchase that person's interest in the business

• It acknowledges the commitments of the partners to each other and to their heirs to assure the continuation of the business in the event one of them dies unexpectedly

• It describes the conditions that will force a sale of the business, as well as the requirements to be met if the business wants to buy the assets of a competitor

A primary purpose of key person life insurance is to do which of these?

• Provide the family of the deceased employee with up to ten years of the employee's lost future income

• Provide the business with money to recruit and train a replacement employee

• Provide the business with money to pay vested retirement benefits to the heirs of the employee as a lump sum

• Protect the business against the death of any employee earning at least $50,000 per year

In order for a worker to be qualified for all benefits available from Social Security how many credits must be earned?

• 30 credits

• 6 credits in the last 13 quarters

• 1 credit for each year of work between age 20 and 40

• 40 credits