Jenny's employer provides a short term disability income policy to all employees. Her employer pays 60% of the premiums. When Jenny is disabled, what portion of the benefits will be taxable to her?

a. 100%

b. 60%

c. 40%

d. 0%

Answer: b. 60%

Pre-Licensing Insurance

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Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?
All of the following are considered limited lines of authority EXCEPT
What is the other term for the cash payment settlement option?
The pro rata liability clause is designed to protect the principle of
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Fixed annuities provide each of the following EXCEPT
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A domestic insurer issuing variable contracts must establish one or more
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
All of these statements about the Waiver of Premium provision are correct EXCEPT
Which of the following best defines target premium in a universal life policy?
What does the word "level" in Level Term describe?
A beneficiary change can occur
No existing agent's license will be revoked until
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A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
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The pro rata liability clause is designed to protect the principle of
The two major actions required for a policyholder to comply with the Reinstatement Clause are
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Ambiguities in an insurance policy are always resolved in favor of the
In an insurance contract, the applicant's "consideration" is the
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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
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Which nonforfeiture option provides coverage for the longest period of time?
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A securities license is required for a life insurance producer to sell
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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All of the following are true regarding a decreasing term policy EXCEPT
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What would be an expense factor in an insurance program?
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The requirement that agents not commingle insurance monies with their own funds is known as
Who is responsible for assembling the policy forms for insureds?
Life income joint and survivor settlement option guarantees
What is the other term for the cash payment settlement option?
Which of the following is NOT true regarding the accumulation period of an annuity?
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The requirement that agents not commingle insurance monies with their own funds is known as
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What is the purpose of establishing the target premium for a universal life policy?
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What is the other term for the cash payment settlement option?
What documentation grants express authority to an agent?

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