Health and Life Insurance Exam,
Questions With Correct Answers
Pure Risk - CORRECT ANSWER-Insurance is defined as the transfer of what to the
insurance company in consideration for a premium?
Speculative Risk - CORRECT ANSWER-What type of risk is not insurable?
Exposure - CORRECT ANSWER-A condition that could result in a loss is now as what?
Hazard - CORRECT ANSWER-This increases the chance of loss.
Lump Sum - CORRECT ANSWER-If a settlement option is not chosen by the
beneficiary or policy owner, which option will be used?
Straight Life - CORRECT ANSWER-What policy would be classified as a traditional
level premium contract?
The employer is the owner and beneficiary. - CORRECT ANSWER-Who is the owner
and who is the beneficiary on a key person life insurance policy?
Promote the public welfare - CORRECT ANSWER-What is the purpose of insurance
regulation?
30 months - CORRECT ANSWER-Employer health plans must provide primary
coverage for individuals with end-stage renal disease before medicare becomes primary
for how many months?
Ratio of men and women in the group - CORRECT ANSWER-Group life is based on
what?
The source must be identified - CORRECT ANSWER-What is true regarding statistics
use din an advertisement?
10 years - CORRECT ANSWER-Any licensed person whose activities affect interstate
commerce and who knowingly make false material statements related to the business of
insurance my be imprisoned for up to how long?
Rates by Class - CORRECT ANSWER-Insurers may change which of the following on a
guaranteed renewable health insurance policy?
Face Amount - CORRECT ANSWER-What does "level" refer to in level erm insurance?
, It is used to lower premiums - CORRECT ANSWER-An insurer invests money it
receives form premiums paid by its insurers, what would happen to this investment?
It provides income the beneficiary cannot outlive - CORRECT ANSWER-What can
happen regarding a single life settlement option?
The refund of the original amount minus payments already made - CORRECT
ANSWER-With the cash refund option, when the annuitant dies, what would the
beneficiary receive?
Bail-Out provision - CORRECT ANSWER-What allows the owner to surrender an
annuity without a charge?
31 days - CORRECT ANSWER-When an employee terminates coverage under a group
insurance policy, coverage continues in force for how long?
Illegal - CORRECT ANSWER-An insurer devised an intimidation strategy in order to
corner a large portion of the insurance market. What best describes this practice?
a securities license
A life insurance license
A FINRA registration - CORRECT ANSWER-To sell variable life insurance policies, an
agent must receive what?
Policy of Claims Provision - CORRECT ANSWER-What provision would prevent an
insurance company from paying a reimbursement claim to someone other than the
policy owner?
Monthly - CORRECT ANSWER-Under an individual disability policy, the minimum
schedule of time in which a claim payment must be made to an insured is what?
Consumer Report - CORRECT ANSWER-What type of report includes information
regarding a person's credit, character, reputation and habits?
The guaranty Association
The SEC
The insurance Department - CORRECT ANSWER-What entities regulate variable life
polices?
Providing a customer with an incomplete illustration - CORRECT ANSWER-What would
be a violation of a life policy illustration regulation?
2 or more - CORRECT ANSWER-HIPPA applies to groups of what?
Questions With Correct Answers
Pure Risk - CORRECT ANSWER-Insurance is defined as the transfer of what to the
insurance company in consideration for a premium?
Speculative Risk - CORRECT ANSWER-What type of risk is not insurable?
Exposure - CORRECT ANSWER-A condition that could result in a loss is now as what?
Hazard - CORRECT ANSWER-This increases the chance of loss.
Lump Sum - CORRECT ANSWER-If a settlement option is not chosen by the
beneficiary or policy owner, which option will be used?
Straight Life - CORRECT ANSWER-What policy would be classified as a traditional
level premium contract?
The employer is the owner and beneficiary. - CORRECT ANSWER-Who is the owner
and who is the beneficiary on a key person life insurance policy?
Promote the public welfare - CORRECT ANSWER-What is the purpose of insurance
regulation?
30 months - CORRECT ANSWER-Employer health plans must provide primary
coverage for individuals with end-stage renal disease before medicare becomes primary
for how many months?
Ratio of men and women in the group - CORRECT ANSWER-Group life is based on
what?
The source must be identified - CORRECT ANSWER-What is true regarding statistics
use din an advertisement?
10 years - CORRECT ANSWER-Any licensed person whose activities affect interstate
commerce and who knowingly make false material statements related to the business of
insurance my be imprisoned for up to how long?
Rates by Class - CORRECT ANSWER-Insurers may change which of the following on a
guaranteed renewable health insurance policy?
Face Amount - CORRECT ANSWER-What does "level" refer to in level erm insurance?
, It is used to lower premiums - CORRECT ANSWER-An insurer invests money it
receives form premiums paid by its insurers, what would happen to this investment?
It provides income the beneficiary cannot outlive - CORRECT ANSWER-What can
happen regarding a single life settlement option?
The refund of the original amount minus payments already made - CORRECT
ANSWER-With the cash refund option, when the annuitant dies, what would the
beneficiary receive?
Bail-Out provision - CORRECT ANSWER-What allows the owner to surrender an
annuity without a charge?
31 days - CORRECT ANSWER-When an employee terminates coverage under a group
insurance policy, coverage continues in force for how long?
Illegal - CORRECT ANSWER-An insurer devised an intimidation strategy in order to
corner a large portion of the insurance market. What best describes this practice?
a securities license
A life insurance license
A FINRA registration - CORRECT ANSWER-To sell variable life insurance policies, an
agent must receive what?
Policy of Claims Provision - CORRECT ANSWER-What provision would prevent an
insurance company from paying a reimbursement claim to someone other than the
policy owner?
Monthly - CORRECT ANSWER-Under an individual disability policy, the minimum
schedule of time in which a claim payment must be made to an insured is what?
Consumer Report - CORRECT ANSWER-What type of report includes information
regarding a person's credit, character, reputation and habits?
The guaranty Association
The SEC
The insurance Department - CORRECT ANSWER-What entities regulate variable life
polices?
Providing a customer with an incomplete illustration - CORRECT ANSWER-What would
be a violation of a life policy illustration regulation?
2 or more - CORRECT ANSWER-HIPPA applies to groups of what?
