LIFE AND HEALTH INSURANCE ACTUAL
TEST PAPER COMPLETE QUESTIONS AND
ANSWERS FULL SOLUTION
●● Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid
Answer: conditional
●● A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability. The
original neck injury occurred before the application was taken 5 years
prior. The neck injury was never disclosed to the insurer at the time of
application. How will the insurer handle this claim?
Answer: Claim will be paid and coverage will remain in force
●● Continuing education (CE) providers must report to the director a
licensee's earned credit hours within
Answer: 30 days of course completion
●● A policyowner is able to choose the frequency of premium payments
through what policy feature?
Answer: Premium Mode
,●● Which of the following violations is considered an unfair trade
practice?
Answer: Coercion
●● Which policy is required to contain chemical dependency coverage?
Answer: Comprehensive major medical
●● The suicide provision for life policies would apply to
Answer: subsequent increases in benefits
●● The signed document that starts the Free Look period is the
Answer: delivery receipt
●● Which of the following statements BEST describes how a policy that
uses the "accidental bodily injury" definition of an accident differs from
one that uses the "accidental means" definition?
Answer: Less restrictive
●● An insurance producer acts in a fiduciary capacity when conducting
routine business with all of the following principals EXCEPT
Answer: the Director
, ●● Which of the following statements BEST describes what the Legal
Actions provision of an Accident and Health policy requires?
Answer: An insured must wait at least 60 days after Proof of Loss has
been submitted before a lawsuit can be filed
●● In a Life insurance contract, an insurance company's promise to pay
stated benefits is called the
Answer: Insuring clause
●● For coverage of low protein modified food products for treatment of
PKU or any inherited disease of amino and organic acids, a health plan
may require a reasonable copayment or coinsurance, not to exceed
Answer: 50% of the cost of the formula or food products
●● What type of rider would be added to an Accident and Health policy
if the policyowner wants to ensure the policy will continue if he/she ever
becomes totally disabled?
Answer: Waiver of Premium rider
●● S filed a written Proof of Loss for a Disability Income claim on
September 1. The insurance company did not respond to the claim. S can
take legal action against the insurer beginning
Answer: November 1
TEST PAPER COMPLETE QUESTIONS AND
ANSWERS FULL SOLUTION
●● Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid
Answer: conditional
●● A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability. The
original neck injury occurred before the application was taken 5 years
prior. The neck injury was never disclosed to the insurer at the time of
application. How will the insurer handle this claim?
Answer: Claim will be paid and coverage will remain in force
●● Continuing education (CE) providers must report to the director a
licensee's earned credit hours within
Answer: 30 days of course completion
●● A policyowner is able to choose the frequency of premium payments
through what policy feature?
Answer: Premium Mode
,●● Which of the following violations is considered an unfair trade
practice?
Answer: Coercion
●● Which policy is required to contain chemical dependency coverage?
Answer: Comprehensive major medical
●● The suicide provision for life policies would apply to
Answer: subsequent increases in benefits
●● The signed document that starts the Free Look period is the
Answer: delivery receipt
●● Which of the following statements BEST describes how a policy that
uses the "accidental bodily injury" definition of an accident differs from
one that uses the "accidental means" definition?
Answer: Less restrictive
●● An insurance producer acts in a fiduciary capacity when conducting
routine business with all of the following principals EXCEPT
Answer: the Director
, ●● Which of the following statements BEST describes what the Legal
Actions provision of an Accident and Health policy requires?
Answer: An insured must wait at least 60 days after Proof of Loss has
been submitted before a lawsuit can be filed
●● In a Life insurance contract, an insurance company's promise to pay
stated benefits is called the
Answer: Insuring clause
●● For coverage of low protein modified food products for treatment of
PKU or any inherited disease of amino and organic acids, a health plan
may require a reasonable copayment or coinsurance, not to exceed
Answer: 50% of the cost of the formula or food products
●● What type of rider would be added to an Accident and Health policy
if the policyowner wants to ensure the policy will continue if he/she ever
becomes totally disabled?
Answer: Waiver of Premium rider
●● S filed a written Proof of Loss for a Disability Income claim on
September 1. The insurance company did not respond to the claim. S can
take legal action against the insurer beginning
Answer: November 1
