SD Life and Health practice exam
questions with correct answers
If a medical exam is required as part of the underwriting process, who
| | | | | | | | | | | | |
normally conducts the exam? - CORRECT ANSWER✔✔-A physician,
| | | | | | | |
paramedics, or nurse | |
Consideration Clause - CORRECT ANSWER✔✔-The Consideration Clause
| | | | | |
stipulates that the payment of the first premium and the statements in
| | | | | | | | | | | | |
the application are the applicant's consideration, and the insurer's
| | | | | | | | |
consideration is the promise to pay within the contract terms.
| | | | | | | | |
Managed Care Provisions are designed to do what - CORRECT
| | | | | | | | | |
ANSWER✔✔-Contain costs |
A buy-sell agreement can be used in all of the following businesses -
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CORRECT ANSWER✔✔-sole proprietorship, a partnership, or with
| | | | | | |
stockholders of a closed corporation.
| | | |
Illegal Inducement is a - CORRECT ANSWER✔✔-an unfair trade practice
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,When Harold became no longer eligible for coverage under his
| | | | | | | | | |
employer's group benefit program, which of the following statements
| | | | | | | | |
accurately reflects the conversion privilege defined by his group
| | | | | | | | |
contract? - CORRECT ANSWER✔✔-Harold had 31 days to convert his
| | | | | | | | | |
policy to an individual plan.
| | | |
Which of the following scenarios will cause the value of a life insurance
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policy death benefit to be included in the insured's estate? - CORRECT
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ANSWER✔✔-The insured is also the policyowner (If the policyowner | | | | | | | | |
and the insured are the same person, the death benefit will be included
| | | | | | | | | | | | |
in the insured's estate)
| | |
Which of the following is not considered an underwriting factor when
| | | | | | | | | | |
determining insurability for health insurance? - CORRECT ANSWER✔✔- | | | | | | |
Spouses occupation |
If Jon dies with an outstanding policy loan of $10,000 on his $100,000
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interest-sensitive whole life policy that has $15,000 of cash value, what | | | | | | | | | | |
will his beneficiary receive at the time of claim? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-90,000 Cash values are NOT added onto the death benefit, | | | | | | | | |
|but outstanding policy loans ARE recovered before the death benefit is
| | | | | | | | | | |
paid out. The correct calculation is $100,000 - $10,000 outstanding loan
| | | | | | | | | | |
= $90,000.
|
Why should a producer collect a premium at the time the application is
| | | | | | | | | | | | |
completed? - CORRECT ANSWER✔✔-Without it, coverage cannot go | | | | | | | |
, into effect, as there would be a lack of consideration (Collecting the
| | | | | | | | | | | |
premium at the time of application allows the producer to issue a
| | | | | | | | | | | |
conditional coverage receipt, which can bring coverage into effect as
| | | | | | | | | |
early as the date of the application, provided all the conditions have
| | | | | | | | | | | |
been satisfied.)
|
LTC approved facilities include - CORRECT ANSWER✔✔-Skilled,
| | | | | | |
Intermediate and Custodial facilities. | | |
Under the South Dakota requirements for individual and group health
| | | | | | | | | |
insurance adopted children are covered from the beginning of the
| | | | | | | | | |
______-month adoption bonding period. - CORRECT ANSWER✔✔-6 | | | | | |
An insurable interest must exist between the _______ and the
| | | | | | | | | |
________ at the time of application for life insurance to be valid. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Applicant/insured
|
An application for health insurance includes all of the following
| | | | | | | | | |
information - CORRECT ANSWER✔✔-general questions relating to the
| | | | | | | |
applicant (date of birth, gender, residence, marital status, and
| | | | | | | | |
occupation) and medical questions (past and present health conditions,
| | | | | | | | |
recent medical visits, procedures, hospitalizations or surgeries, and
| | | | | | | |
medical status of immediate family members).
| | | | |
questions with correct answers
If a medical exam is required as part of the underwriting process, who
| | | | | | | | | | | | |
normally conducts the exam? - CORRECT ANSWER✔✔-A physician,
| | | | | | | |
paramedics, or nurse | |
Consideration Clause - CORRECT ANSWER✔✔-The Consideration Clause
| | | | | |
stipulates that the payment of the first premium and the statements in
| | | | | | | | | | | | |
the application are the applicant's consideration, and the insurer's
| | | | | | | | |
consideration is the promise to pay within the contract terms.
| | | | | | | | |
Managed Care Provisions are designed to do what - CORRECT
| | | | | | | | | |
ANSWER✔✔-Contain costs |
A buy-sell agreement can be used in all of the following businesses -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-sole proprietorship, a partnership, or with
| | | | | | |
stockholders of a closed corporation.
| | | |
Illegal Inducement is a - CORRECT ANSWER✔✔-an unfair trade practice
| | | | | | | | |
,When Harold became no longer eligible for coverage under his
| | | | | | | | | |
employer's group benefit program, which of the following statements
| | | | | | | | |
accurately reflects the conversion privilege defined by his group
| | | | | | | | |
contract? - CORRECT ANSWER✔✔-Harold had 31 days to convert his
| | | | | | | | | |
policy to an individual plan.
| | | |
Which of the following scenarios will cause the value of a life insurance
| | | | | | | | | | | | |
policy death benefit to be included in the insured's estate? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-The insured is also the policyowner (If the policyowner | | | | | | | | |
and the insured are the same person, the death benefit will be included
| | | | | | | | | | | | |
in the insured's estate)
| | |
Which of the following is not considered an underwriting factor when
| | | | | | | | | | |
determining insurability for health insurance? - CORRECT ANSWER✔✔- | | | | | | |
Spouses occupation |
If Jon dies with an outstanding policy loan of $10,000 on his $100,000
| | | | | | | | | | | | |
interest-sensitive whole life policy that has $15,000 of cash value, what | | | | | | | | | | |
will his beneficiary receive at the time of claim? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-90,000 Cash values are NOT added onto the death benefit, | | | | | | | | |
|but outstanding policy loans ARE recovered before the death benefit is
| | | | | | | | | | |
paid out. The correct calculation is $100,000 - $10,000 outstanding loan
| | | | | | | | | | |
= $90,000.
|
Why should a producer collect a premium at the time the application is
| | | | | | | | | | | | |
completed? - CORRECT ANSWER✔✔-Without it, coverage cannot go | | | | | | | |
, into effect, as there would be a lack of consideration (Collecting the
| | | | | | | | | | | |
premium at the time of application allows the producer to issue a
| | | | | | | | | | | |
conditional coverage receipt, which can bring coverage into effect as
| | | | | | | | | |
early as the date of the application, provided all the conditions have
| | | | | | | | | | | |
been satisfied.)
|
LTC approved facilities include - CORRECT ANSWER✔✔-Skilled,
| | | | | | |
Intermediate and Custodial facilities. | | |
Under the South Dakota requirements for individual and group health
| | | | | | | | | |
insurance adopted children are covered from the beginning of the
| | | | | | | | | |
______-month adoption bonding period. - CORRECT ANSWER✔✔-6 | | | | | |
An insurable interest must exist between the _______ and the
| | | | | | | | | |
________ at the time of application for life insurance to be valid. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Applicant/insured
|
An application for health insurance includes all of the following
| | | | | | | | | |
information - CORRECT ANSWER✔✔-general questions relating to the
| | | | | | | |
applicant (date of birth, gender, residence, marital status, and
| | | | | | | | |
occupation) and medical questions (past and present health conditions,
| | | | | | | | |
recent medical visits, procedures, hospitalizations or surgeries, and
| | | | | | | |
medical status of immediate family members).
| | | | |
