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Some managed care plans use physicians, hospitals, and health care organizations that agree to make medical services available to insureds at discounted fees. Insureds are not required to use these entities, but if they do, health care costs are less than if these entities are not used. Such health care entities are called

Which of the following statements about variable universal life insurance is (are) true?IVariable universal life insurance has fixed premium payments. II.Variable universal life insurance allows the policyowner to decide where the premiums are invested.

Owen’s car is insured under a Personal Auto Policy (PAP). A hail storm occurred one evening, and his car was severely damaged. Which PAP coverage, if Owen purchased it, would cover this damage to his auto?

John occasionally borrows the car of his friend, Sophie. Sophie has a PAP with liability limits of 100/300/50. John also has a PAP, and his liability limits 250/500/50. John had an accident while using Sophie’s car and was found to be legally liable for $300,000 in bodily injury liability for injuries suffered by one person. How much will be paid by each policy?

Which of the following statements about endowment insurance policies is (are) true?I. The face amount is paid if the insured dies during the policy period or at the end of the policy period if the insured is still alive. II. The use of endowment insurance has increased in recent years because of its favorable tax treatment.

What is the purpose of the extended nonowned liability coverage endorsement to the PAP?

Which of the following $100,000 whole life insurance policies, issued by the same company to a man age 32, would require the highest first-year premium?

The insurance company’s options for settling a collision loss to a covered auto under the PAP include which of the following?I.Pay the loss in money.II.Repair or replace the damaged auto.

Which of the following statements about second-to-die life insurance is (are) true?I.The insurance is a form of endowment coverage. II. The premium is lower than the combined cost of purchasing a life insurance policy on each insured.

Which of the following statements about the payment of defense costs by the PAP is (are) true?I.They are paid in addition to the policy limits.II.They are payable even after the limit of liability is exhausted.