215 State Exam Simulator (All Q's
Composed)
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called -ANSWER✅✅✅✅Whole life
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive? -
ANSWER✅✅✅✅$0
The mother receives $0 because T is still alive and the sole primary beneficiary, while
the mother is still the contingent beneficiary.
A level premium indicates -ANSWER✅✅✅✅the premium is fixed for the entire
duration of the contract
Which premium schedule results in the lowest cost to the policyowner? -
ANSWER✅✅✅✅Annual
A policyowner is allowed to pay premiums more than once a year under which
provision? -ANSWER✅✅✅✅Mode of Premium
A life insurance application must be signed by all of these EXCEPT -
ANSWER✅✅✅✅beneficiary
Any changes made on an insurance application requires the initials of whom? -
ANSWER✅✅✅✅Applicant
All of these are considered sources of underwriting information about an applicant
EXCEPT -ANSWER✅✅✅✅Rating Services
Q applied for life insurance and submitted the initial premium on January 1. The policy
was issued February 1, but it was not delivered by the agent until February 7. Q is
dissatisfied and returns the policy February 13. How will the insurer handle this
situation? -ANSWER✅✅✅✅Policy was returned within the free-look period, premium
will be fully refunded
T applies for a life insurance policy and is told by the producer that the insurer is bound
to the coverage as of the date of the application or medical examination, whichever is
,later, provided that T is an acceptable risk. What item is given to T? -
ANSWER✅✅✅✅Conditional receipt
When an insurance application is taken by a producer, which of these statements is
true? -ANSWER✅✅✅✅Any changes made on the application require the applicant's
initials
A CEO's personal assistant suffered injuries at home and as a result, was unable to
work for four months. Which type of policy will pay a monthly benefit to the personal
assistant? -ANSWER✅✅✅✅Disability Income
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained
from participating in a carjacking. How will the insurer most likely handle this claim? -
ANSWER✅✅✅✅Claim will be denied
A Disability Income policyowner suffers a disability which was due to the same cause as
a previous disability. Both disabilities occurred within a five-month period. The insurer
may cover the second disability without a new elimination period under the -
ANSWER✅✅✅✅Recurrent Disability provision
Which of these statements is INCORRECT regarding the federal income tax treatment
of life insurance? -ANSWER✅✅✅✅Entire cash surrender value is taxable
Which of these actions is taken when a policyowner uses a Life Insurance policy as
collateral for a bank loan? -ANSWER✅✅✅✅Collateral assignment
What does the insuring agreement in a Life insurance contract establish? -
ANSWER✅✅✅✅An insurer's basic promise
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed? -ANSWER✅✅✅✅Decreasing term policy
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains
and some tests were given by the doctor. The life policy was delivered by the producer
on August 20 and D explains what had recently taken place with the doctor. What action
should the producer then take? -ANSWER✅✅✅✅Collect initial premium along with a
signed health statement
What is being delivered during a policy delivery? -ANSWER✅✅✅✅Insurance contract
to the proposed insured
A noncontributory group term life plan is characterized by -ANSWER✅✅✅✅the entire
cost of the plan is paid for by the employer
,An employee with $25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a -ANSWER✅✅✅✅$25,000 individual whole life
policy
Which provision is NOT a requirement in a group life policy? -
ANSWER✅✅✅✅Accidental
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is -
ANSWER✅✅✅✅the cost
S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? -ANSWER✅✅✅✅Single
Premium
Immediate Annuities are purchased with a single lump sum payment and will start
providing income payments within the first year, but usually starting 30 days from the
purchase date.
What is considered to be a characteristic of an immediate annuity? -
ANSWER✅✅✅✅Benefit payments start within one payment period of purchase
What is Old Age and Survivors Health Insurance (OASDHI) also known as? -
ANSWER✅✅✅✅Social Security
Which plan is intended to be used by a sole proprietor and the employees of that
business? -ANSWER✅✅✅✅Keogh Plan
Which of these is NOT a type of agent authority? -ANSWER✅✅✅✅Principal
An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT -ANSWER✅✅✅✅spouse's occupation
M becomes disabled and is unable to work for six months. M dies soon after from
complications arising from this disability. M has a Disability Income policy that pays
$2,000 a month. Which of the following statements BEST describes what is owed to her
estate? -ANSWER✅✅✅✅earned, but unpaid benefits
The provision in a health insurance policy that interrupts premiums being paid to the
insurer while the insured is disabled is called the -ANSWER✅✅✅✅Waiver of Premium
When determining the monthly benefit amount for a Disability Income policy, the factor
that limits the amount a prospective insured may purchase is -
ANSWER✅✅✅✅income
, Which of these do NOT constitute policy delivery? -ANSWER✅✅✅✅Policy issued with
a rating
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to -ANSWER✅✅✅✅P only
What type of renewability guarantees premium rates and renewability? -
ANSWER✅✅✅✅Noncancellable
If an insurance company issues a Disability Income policy that it cannot cancel or for
which it cannot increase premiums, the type of renewability that best desribes this policy
is called -ANSWER✅✅✅✅noncancellable
T files a claim on his Accident and Health policy after being treated for an illness. The
insurance company believes that T misrepresented his actual health on the initial
insurance application and is, therefore, disputing the claim's validity. The provision that
limits the period during which the company may dispute a claim's validity is called -
ANSWER✅✅✅✅Time Limit on Certain Defenses
Which of the following are NOT managed care organizations? -
ANSWER✅✅✅✅Medical Information Bureau (MIB)
Which of the following statements about the classification of applicants is INCORRECT?
-ANSWER✅✅✅✅Substandard applicants are never declined by underwriters
A prepaid application for individual Disability Income insurance was recently submitted
to an insurer. When the insurer received the Medical Information Bureau (MIB) report,
the report showed that the applicant had suffered a stroke 18 months ago, something
that was not disclosed on the application. Which of the following actions would the
insurance company NOT take? -ANSWER✅✅✅✅Send a notice to the MIB that the
applicant was declined
According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options? -
ANSWER✅✅✅✅Monthly
The policy provision that entitles the insurer to establish conditions the insured must
meet while a claim is pending is -ANSWER✅✅✅✅Time Limit on Certain Defenses
The provision that defines to whom the insurer will pay benefits to is called -
ANSWER✅✅✅✅Payment of Claims
Composed)
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called -ANSWER✅✅✅✅Whole life
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive? -
ANSWER✅✅✅✅$0
The mother receives $0 because T is still alive and the sole primary beneficiary, while
the mother is still the contingent beneficiary.
A level premium indicates -ANSWER✅✅✅✅the premium is fixed for the entire
duration of the contract
Which premium schedule results in the lowest cost to the policyowner? -
ANSWER✅✅✅✅Annual
A policyowner is allowed to pay premiums more than once a year under which
provision? -ANSWER✅✅✅✅Mode of Premium
A life insurance application must be signed by all of these EXCEPT -
ANSWER✅✅✅✅beneficiary
Any changes made on an insurance application requires the initials of whom? -
ANSWER✅✅✅✅Applicant
All of these are considered sources of underwriting information about an applicant
EXCEPT -ANSWER✅✅✅✅Rating Services
Q applied for life insurance and submitted the initial premium on January 1. The policy
was issued February 1, but it was not delivered by the agent until February 7. Q is
dissatisfied and returns the policy February 13. How will the insurer handle this
situation? -ANSWER✅✅✅✅Policy was returned within the free-look period, premium
will be fully refunded
T applies for a life insurance policy and is told by the producer that the insurer is bound
to the coverage as of the date of the application or medical examination, whichever is
,later, provided that T is an acceptable risk. What item is given to T? -
ANSWER✅✅✅✅Conditional receipt
When an insurance application is taken by a producer, which of these statements is
true? -ANSWER✅✅✅✅Any changes made on the application require the applicant's
initials
A CEO's personal assistant suffered injuries at home and as a result, was unable to
work for four months. Which type of policy will pay a monthly benefit to the personal
assistant? -ANSWER✅✅✅✅Disability Income
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained
from participating in a carjacking. How will the insurer most likely handle this claim? -
ANSWER✅✅✅✅Claim will be denied
A Disability Income policyowner suffers a disability which was due to the same cause as
a previous disability. Both disabilities occurred within a five-month period. The insurer
may cover the second disability without a new elimination period under the -
ANSWER✅✅✅✅Recurrent Disability provision
Which of these statements is INCORRECT regarding the federal income tax treatment
of life insurance? -ANSWER✅✅✅✅Entire cash surrender value is taxable
Which of these actions is taken when a policyowner uses a Life Insurance policy as
collateral for a bank loan? -ANSWER✅✅✅✅Collateral assignment
What does the insuring agreement in a Life insurance contract establish? -
ANSWER✅✅✅✅An insurer's basic promise
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed? -ANSWER✅✅✅✅Decreasing term policy
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains
and some tests were given by the doctor. The life policy was delivered by the producer
on August 20 and D explains what had recently taken place with the doctor. What action
should the producer then take? -ANSWER✅✅✅✅Collect initial premium along with a
signed health statement
What is being delivered during a policy delivery? -ANSWER✅✅✅✅Insurance contract
to the proposed insured
A noncontributory group term life plan is characterized by -ANSWER✅✅✅✅the entire
cost of the plan is paid for by the employer
,An employee with $25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a -ANSWER✅✅✅✅$25,000 individual whole life
policy
Which provision is NOT a requirement in a group life policy? -
ANSWER✅✅✅✅Accidental
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is -
ANSWER✅✅✅✅the cost
S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? -ANSWER✅✅✅✅Single
Premium
Immediate Annuities are purchased with a single lump sum payment and will start
providing income payments within the first year, but usually starting 30 days from the
purchase date.
What is considered to be a characteristic of an immediate annuity? -
ANSWER✅✅✅✅Benefit payments start within one payment period of purchase
What is Old Age and Survivors Health Insurance (OASDHI) also known as? -
ANSWER✅✅✅✅Social Security
Which plan is intended to be used by a sole proprietor and the employees of that
business? -ANSWER✅✅✅✅Keogh Plan
Which of these is NOT a type of agent authority? -ANSWER✅✅✅✅Principal
An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT -ANSWER✅✅✅✅spouse's occupation
M becomes disabled and is unable to work for six months. M dies soon after from
complications arising from this disability. M has a Disability Income policy that pays
$2,000 a month. Which of the following statements BEST describes what is owed to her
estate? -ANSWER✅✅✅✅earned, but unpaid benefits
The provision in a health insurance policy that interrupts premiums being paid to the
insurer while the insured is disabled is called the -ANSWER✅✅✅✅Waiver of Premium
When determining the monthly benefit amount for a Disability Income policy, the factor
that limits the amount a prospective insured may purchase is -
ANSWER✅✅✅✅income
, Which of these do NOT constitute policy delivery? -ANSWER✅✅✅✅Policy issued with
a rating
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to -ANSWER✅✅✅✅P only
What type of renewability guarantees premium rates and renewability? -
ANSWER✅✅✅✅Noncancellable
If an insurance company issues a Disability Income policy that it cannot cancel or for
which it cannot increase premiums, the type of renewability that best desribes this policy
is called -ANSWER✅✅✅✅noncancellable
T files a claim on his Accident and Health policy after being treated for an illness. The
insurance company believes that T misrepresented his actual health on the initial
insurance application and is, therefore, disputing the claim's validity. The provision that
limits the period during which the company may dispute a claim's validity is called -
ANSWER✅✅✅✅Time Limit on Certain Defenses
Which of the following are NOT managed care organizations? -
ANSWER✅✅✅✅Medical Information Bureau (MIB)
Which of the following statements about the classification of applicants is INCORRECT?
-ANSWER✅✅✅✅Substandard applicants are never declined by underwriters
A prepaid application for individual Disability Income insurance was recently submitted
to an insurer. When the insurer received the Medical Information Bureau (MIB) report,
the report showed that the applicant had suffered a stroke 18 months ago, something
that was not disclosed on the application. Which of the following actions would the
insurance company NOT take? -ANSWER✅✅✅✅Send a notice to the MIB that the
applicant was declined
According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options? -
ANSWER✅✅✅✅Monthly
The policy provision that entitles the insurer to establish conditions the insured must
meet while a claim is pending is -ANSWER✅✅✅✅Time Limit on Certain Defenses
The provision that defines to whom the insurer will pay benefits to is called -
ANSWER✅✅✅✅Payment of Claims
