Linda was terminated by her company as an agent last month, but the company did not notify clients of her termination, and have not yet collected company forms and logos from Linda. Last week, a long-time client of Linda's, Jeff, purchased a new life insurance policy from Linda to cover the costs of his child's college education. The policy binder indicated that the insurance was in force as soon as Jeff signed the application and paid the premium. Which of the following statements is correct?

The life insurance policy is not in force because Linda was no longer an agent of the insurance company.

The policy is in effect because Linda had the express authority to issue the policy.

The policy is in effect because Linda had the implied authority to issue the policy.

The policy is in effect because Linda had the apparent authority to issue the policy.

Medicaid is provided to certain individuals and families with low income or resources. Which of the following items is counted towards the income requirements?

Rental income from property owned and rented out.

Food stamps.

Home energy assistance.

Housing assistance provided by the federal government.

All of the following statements concerning disability income insurance are correct EXCEPT:

To qualify for disability income, one must become totally disabled while the policy is in force and remain so until the elimination (exclusion) period has ended.

The Social Security program requires the disabled person to wait at least five months before receiving benefits.

Premiums for disability income insurance coverage are a function of the insured's health, gender, age, and the level of income benefits provided by the policy.

A policy offset rider that integrates with Social Security will pay benefits in addition to Social Security the disabled person is eligible to receive.

Brandy, age 38 was employed full-time at a construction company until she was laid off this year. The company has 27 full-time and 12 part-time employees. They do not offer group health insurance. What should Brandy do for health insurance while unemployed?

Elect Medicare coverage.

Elect COBRA for up to 36 months or until she has group coverage with a new employer.

Purchase individual health insurance until she can obtain group coverage with a different employer.

Elect 18 months of COBRA coverage.

All of the following statements concerning the legal characteristics of insurance contracts are correct EXCEPT:

		An insurance contract is a "contract of adhesion" whereby the insurer prepares all contract provisions and the policy owner either accepts or rejects the policy as prepared (adheres to it).
		It is generally held that where the terms of an insurance policy are ambiguous, obscure, or susceptible to more than one interpretation, the construction most favorable to the insured will prevail.
		An insurance contract is a personal contract that follows the person rather than any property concerned.
		Insurance contracts are conditional in nature; that is, the failure of one party to perform does not relieve the other party of his or her obligations.