Life and Health Exam Multiple Choice
Questions with Correct Answers
Who may terminate a producer's appointment?
A. insurer B. insured C. producer D. policy owners - Answer-A. Insurer
Which of the following statements BEST describes a disability elimination period?
A. A time describe rather than a dollar deductible/ B. A benefit or utilization period. C. A
dollar deductible rather than a time deductible. D. A qualifying period - Answer-A. A time
deductible rather than a dollar deductible/
According to the Pennsylvania Health care Insurance Portability Act regulation, health
coverage for eligible individuals must be offered on what basis?
A. non-renewable B. guaranteed issue C. creditable coverage D. conditionally
renewable - Answer-C. Creditable renewable
If a license has been found to have committed any fraudulent or dishonest practice, the
insurance Commissioner may do all the following EXCEPT
A. assess a fine. B. revoke the license. C. place the license under supervision. D.
withhold the licensee's commission and/or fees. - Answer-D. withhold the licensee's
commission and/or fees.
An insurer would consider which of the following in determining whether to accept a
group life plan?
A. Grace period. B. Beneficiary. C. Average age. D. Dependents. - Answer-C. Average
age.
Which is NOT excluded in a long-term care policy?
A. Alcoholism B. Alzheimer's disease C. Non-cognitive mental disorders D. Treatment
caused by participation in criminal behavior - Answer-B. Alzheimer's disease
An insurer MUST offer a Long-Term Care Policy or certificate that
A. has a nonforfeiture value. B. is subject to post claims underwriting. C. has no
increase in premium. D. can be canceled due to claims - Answer-B. is subject to post
claims underwriting
The MAJOR factor in determining the benefit amount paid under a disability income is
,A. occupation. B. wages. C. age. D. gender. - Answer-B. wages
Under which circumstance would a business purchase life insurance?
A. to pay off a loan B. to expand the business C. to compensate executives D. to fund
employee healthcare - Answer-A. to pay off a loan
If an insured has multiple policies with one insurer that give the insured benefits
exceeding the company's allowable maximum, how much will the policies pay?
A. 50% of the loss is paid by each policy B. only the maximum benefit is payable C.
limits of both policies combined D. only the basic coverage amount - Answer-C. limits of
both policies combined
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured beneficiary die in the same accident B.
prevent creditors of a beneficiary from claiming any future death benefits payable C.
allow the insured to directly pay death benefit proceeds to a creditor D. establish the
payout of death benefits if the primary beneficiary dies before - Answer-B. prevent
creditors of a beneficiary from claiming any future death benefits payable
An individual who is NOT acceptable by an insurer at standard rates become of health,
habits, pr occupation is called a
A. rating risk. B. standard risk. C. preferred risk. D. substandard risk. - Answer-D.
substandard risk.
The Pennsylvania Insurance Department is responsible for all of the following EXCEPT
A. insurers B. producers. C. shareholders. D. Form approvals. - Answer-C.
shareholders.
The MAIN purpose of insurance is to A. transfer risk. B. alter risk. C. retain risk. D.
seduce risk - Answer-A. transfer risk.
The statement option that allows proceeds to remain with the insurer and the earnings
to be paid to the beneficiary on a monthly basis is called
A. interest only. B. lump sum. C. fixed period. D. fixed amount. - Answer-A. interest
only.
An intentional false written or oral statement made by a producer for the purpose of
replacing an existing policy to the detriment of the insured is
, A. twisting. B. determination. C. misrepresentation. D. illegal inducement. - Answer-A.
twisting.
Group long-term disability benefit amounts are usually limited to what percentage of the
participant's income?
A. 50 B. 60 C. 90 D. 100 - Answer-B. 60
Which of the following is a payment method for setting a health care provider claim?
A. Settlement. B. Prepaid basis. C. Fee-for-service. D. Premium payment. - Answer-C.
Fee-for-service.
What is disability insurance provision that specifies the condition under which the
insured is automatically qualified for benefits regardless of their ability to work?
A. Total disability. B. Partial disability. C. Residual disability. D. Presumptive disability. -
Answer-D. Presumptive disability.
Which is an annuity benefit option that provides payment to a survivor for the remainder
of a guaranteed period?
A. pure life B. refund life annuity C. life annuity certain D. temporary annuity certain -
Answer-C. life annuity certain
Sometimes when there is ambiguity in an insurance contract, the courts may rely on
what doctrine to determine if coverage applies?
A. Doctrine of indivisibility. B. Doctrine of good faith. C. Doctrine of reasonable
expectations - Answer-C. Doctrine of reasonable expectations.
Pennsylvania, group and individual health insurance policies shall provide coverage for
mammographic examination for women at what age?
A. 30 years B. 40 years C. 45 years D. 50 years - Answer-B. 40 years
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured and beneficiary die in the same accident.
B. prevent creditors of a beneficiary from claiming any future death benefits payable to
the beneficiary. C. allow the insured to directly pay the death benefits process to a
creator. D. establish the payout of death benefits if the primary beneficiary dies before
the contingent beneficiary - Answer-B. prevent creditors of a beneficiary from claiming
any future death benefits payable to the beneficiary.
Questions with Correct Answers
Who may terminate a producer's appointment?
A. insurer B. insured C. producer D. policy owners - Answer-A. Insurer
Which of the following statements BEST describes a disability elimination period?
A. A time describe rather than a dollar deductible/ B. A benefit or utilization period. C. A
dollar deductible rather than a time deductible. D. A qualifying period - Answer-A. A time
deductible rather than a dollar deductible/
According to the Pennsylvania Health care Insurance Portability Act regulation, health
coverage for eligible individuals must be offered on what basis?
A. non-renewable B. guaranteed issue C. creditable coverage D. conditionally
renewable - Answer-C. Creditable renewable
If a license has been found to have committed any fraudulent or dishonest practice, the
insurance Commissioner may do all the following EXCEPT
A. assess a fine. B. revoke the license. C. place the license under supervision. D.
withhold the licensee's commission and/or fees. - Answer-D. withhold the licensee's
commission and/or fees.
An insurer would consider which of the following in determining whether to accept a
group life plan?
A. Grace period. B. Beneficiary. C. Average age. D. Dependents. - Answer-C. Average
age.
Which is NOT excluded in a long-term care policy?
A. Alcoholism B. Alzheimer's disease C. Non-cognitive mental disorders D. Treatment
caused by participation in criminal behavior - Answer-B. Alzheimer's disease
An insurer MUST offer a Long-Term Care Policy or certificate that
A. has a nonforfeiture value. B. is subject to post claims underwriting. C. has no
increase in premium. D. can be canceled due to claims - Answer-B. is subject to post
claims underwriting
The MAJOR factor in determining the benefit amount paid under a disability income is
,A. occupation. B. wages. C. age. D. gender. - Answer-B. wages
Under which circumstance would a business purchase life insurance?
A. to pay off a loan B. to expand the business C. to compensate executives D. to fund
employee healthcare - Answer-A. to pay off a loan
If an insured has multiple policies with one insurer that give the insured benefits
exceeding the company's allowable maximum, how much will the policies pay?
A. 50% of the loss is paid by each policy B. only the maximum benefit is payable C.
limits of both policies combined D. only the basic coverage amount - Answer-C. limits of
both policies combined
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured beneficiary die in the same accident B.
prevent creditors of a beneficiary from claiming any future death benefits payable C.
allow the insured to directly pay death benefit proceeds to a creditor D. establish the
payout of death benefits if the primary beneficiary dies before - Answer-B. prevent
creditors of a beneficiary from claiming any future death benefits payable
An individual who is NOT acceptable by an insurer at standard rates become of health,
habits, pr occupation is called a
A. rating risk. B. standard risk. C. preferred risk. D. substandard risk. - Answer-D.
substandard risk.
The Pennsylvania Insurance Department is responsible for all of the following EXCEPT
A. insurers B. producers. C. shareholders. D. Form approvals. - Answer-C.
shareholders.
The MAIN purpose of insurance is to A. transfer risk. B. alter risk. C. retain risk. D.
seduce risk - Answer-A. transfer risk.
The statement option that allows proceeds to remain with the insurer and the earnings
to be paid to the beneficiary on a monthly basis is called
A. interest only. B. lump sum. C. fixed period. D. fixed amount. - Answer-A. interest
only.
An intentional false written or oral statement made by a producer for the purpose of
replacing an existing policy to the detriment of the insured is
, A. twisting. B. determination. C. misrepresentation. D. illegal inducement. - Answer-A.
twisting.
Group long-term disability benefit amounts are usually limited to what percentage of the
participant's income?
A. 50 B. 60 C. 90 D. 100 - Answer-B. 60
Which of the following is a payment method for setting a health care provider claim?
A. Settlement. B. Prepaid basis. C. Fee-for-service. D. Premium payment. - Answer-C.
Fee-for-service.
What is disability insurance provision that specifies the condition under which the
insured is automatically qualified for benefits regardless of their ability to work?
A. Total disability. B. Partial disability. C. Residual disability. D. Presumptive disability. -
Answer-D. Presumptive disability.
Which is an annuity benefit option that provides payment to a survivor for the remainder
of a guaranteed period?
A. pure life B. refund life annuity C. life annuity certain D. temporary annuity certain -
Answer-C. life annuity certain
Sometimes when there is ambiguity in an insurance contract, the courts may rely on
what doctrine to determine if coverage applies?
A. Doctrine of indivisibility. B. Doctrine of good faith. C. Doctrine of reasonable
expectations - Answer-C. Doctrine of reasonable expectations.
Pennsylvania, group and individual health insurance policies shall provide coverage for
mammographic examination for women at what age?
A. 30 years B. 40 years C. 45 years D. 50 years - Answer-B. 40 years
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured and beneficiary die in the same accident.
B. prevent creditors of a beneficiary from claiming any future death benefits payable to
the beneficiary. C. allow the insured to directly pay the death benefits process to a
creator. D. establish the payout of death benefits if the primary beneficiary dies before
the contingent beneficiary - Answer-B. prevent creditors of a beneficiary from claiming
any future death benefits payable to the beneficiary.
