Question 12

Armin's employer provides an extended health care plan for prescription drugs that includes a $315 annual family deductible and requires the employee to pay a 25% coinsurance. Armin's family has $875 in total eligible drug claims for the year. How much will Armin receive as a reimbursement under the health care plan?

Question 12 options:

	$735
	$420
	$325
	$500

Question 13

Which of the following statements regarding riders on insurance policies are correct?

1.A policy holder who is concerned with inflation should consider a cost of living rider so that the face value of the policy gets increased periodically

2.A waiver of premium can be valuable should an individual experience a prolonged loss of income

3.The accidental death rider allows for a lower premium cost on the policy

4.Riders are applicable to both permanent and term insurance policies

Question 13 options:

	1 and 2
	1 and 4
	2 and 3
	3 and 4

Question 14

Rays employer pays the full premium associated with his disability insurance provided through the employer's group insurance plan, and does not charge any taxable benefit to Ray. With regard to the income tax implications associated with Rays group plan, which one of the following statements is true?

Question 14 options:

	Any benefits received by Ray under the plan will be non-taxable.
	Any benefits received under the plan will be treated as taxable income for Ray.
	Any benefits Ray receives under the plan will be taxable to Rays employer.
	Half of any benefit received by Ray under the plan will be treated as taxable income to Ray.

Question 15

Pablo has disability coverage that will pay him a monthly limit of $2,000. Prior to getting injured, Pablo was earning a gross salary of $72,000 per year and paid income tax of 32%. Following his injury, Pablos income dropped down to $58,750/year. What will Pablos monthly residual disability benefit equal?

Question 15 options:

	$311
	$368
	$414
	$742

Question 16

Harry is the policy owner of a whole life insurance policy with a face value of $1,500,000 and a cash surrender value of $44,000. If Harry decides he no longer wants to continue paying premiums but would like to maintain some level of permanent insurance, which of the following non-forfeiture options would it make the most sense for Harry to select?

Question 16 options:

	Reduced paid up insurance
	Cash surrender value
	Automatic premium loan
	Extended term insurance