Jessica is an agent for LMN Life Insurance Company. She met with Brad, who was interested in purchasing life insurance. Jessica explained the various uses of life insurance, including income for Brad's wife during the 1- or 2-year period following Brad's death. This period is known as the (Points : 1) dependency period. blackout period. estate clearance period. readjustment period.

Question 4. 4. Ann is considering the purchase of a life insurance policy with these characteristics: flexible premium payments, the insurance and savings components are separate, the interest rate credited to the savings is tied to a market interest rate but a minimum rate is guaranteed, and a monthly administrative fee is charged. Ann is considering buying (Points : 1)

current assumption whole life. universal life insurance. whole life insurance. variable life insurance.

Question 5. 5. Under one health care reform proposal, a government entity would be created that would compete with private insurance plans. This alternative is called the (Points : 1)

public option. individual health care mandate. health insurance exchange option. premium subsidy option.

Question 6. 6. All of the following statements about group short-term disability income plans are true EXCEPT (Points : 1)

Disability is usually defined in terms of the employee's own occupation. Most plans have a short elimination period for accidents but cover sickness from the first day of disability. Most short-term plans cover nonoccupational disability only. The amount of disability income benefits typically is equal to some percentage of a worker's normal earnings.