MS Life and Health Insurance Test
Which of these do NOT constitute policy delivery? - Answer-Policy issued with a rating
Which of these types of life insurance allows the policyowner to have level premiums and to also choose
from a selection of investment options? - Answer-Variable Life
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an
accident. J's age as stated on the application five years ago was found to be understated by ten years.
Which of the following actions will the insurance company take? - Answer-The insurer will adjust the
benefit to what the premiums paid would have purchased at the insured's actual age
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has
what kind of rider attached? - Answer-Waiver of Premium
A producer must report to the Commissioner of Insurance any administrative action or criminal charges
taken against the producer within __ days of the final disposition of the matter. - Answer-30
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What
rider would the physician add if he wants the ability to increase his policy benefit as his practice and
income grow? - Answer-Guaranteed Insurability Option rider
,Which type of policy is considered to be overfunded, as stated by IRS guidelines? - Answer-Modified
Endowment Contract
How does a typical Variable Life Policy investment account grow? - Answer-Through mutual funds,
stocks, bonds
Which Federal law allows an insurer to obtain an inspection report on a potential insured? - Answer-Fair
Credit Reporting Act
What is Medicare? - Answer-is a hospital and medical expense insurance program
What kind of premium does a Whole Life policy have? - Answer-level
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five
years later, T commits suicide. How much will the insurer pay? - Answer-50,000
Pre-hospitalization authorization is considered an example of: - Answer-managed care
Under a Renewable Term policy, - Answer-the renewal premium is calculated on the basis of the
insured's attained age
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
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the
guaranteed cash value is called the: - Answer-Policy Loan provision
, What action can a policyowner take if an application for a bank loan requires collateral? - Answer-
Assign policy ownership to the bank
Which of the following statements is CORRECT about the Life and Health Insurance Guaranty
Association? - Answer-It is funded by insurance companies through assessments
An insurance company that replaces existing insurance must provide a copy of which of the following
documents to the existing insurance company? - Answer-A policy summary
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then
pay P retirement payments after the 15 years. Which type of annuity did P purchase? - Answer-
Deferred
A Family Income Policy is a combination of Whole Life and - Answer-Decreasing Term insurance
J purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never
increase above those illustrated in the policy. Which of the following types of policies did J purchase? -
Answer-Noncancelable
Information obtained from a phone conversation to the proposed insured can be found in which of
these reports? - Answer-Inspection report
When must insurable interest exist for a life insurance contract to be valid? - Answer-Inception of the
contract
What is the purpose of a Policy Summary? - Answer-It highlights the critical parts of the policy issued
Which of these do NOT constitute policy delivery? - Answer-Policy issued with a rating
Which of these types of life insurance allows the policyowner to have level premiums and to also choose
from a selection of investment options? - Answer-Variable Life
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an
accident. J's age as stated on the application five years ago was found to be understated by ten years.
Which of the following actions will the insurance company take? - Answer-The insurer will adjust the
benefit to what the premiums paid would have purchased at the insured's actual age
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has
what kind of rider attached? - Answer-Waiver of Premium
A producer must report to the Commissioner of Insurance any administrative action or criminal charges
taken against the producer within __ days of the final disposition of the matter. - Answer-30
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What
rider would the physician add if he wants the ability to increase his policy benefit as his practice and
income grow? - Answer-Guaranteed Insurability Option rider
,Which type of policy is considered to be overfunded, as stated by IRS guidelines? - Answer-Modified
Endowment Contract
How does a typical Variable Life Policy investment account grow? - Answer-Through mutual funds,
stocks, bonds
Which Federal law allows an insurer to obtain an inspection report on a potential insured? - Answer-Fair
Credit Reporting Act
What is Medicare? - Answer-is a hospital and medical expense insurance program
What kind of premium does a Whole Life policy have? - Answer-level
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five
years later, T commits suicide. How much will the insurer pay? - Answer-50,000
Pre-hospitalization authorization is considered an example of: - Answer-managed care
Under a Renewable Term policy, - Answer-the renewal premium is calculated on the basis of the
insured's attained age
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
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the
guaranteed cash value is called the: - Answer-Policy Loan provision
, What action can a policyowner take if an application for a bank loan requires collateral? - Answer-
Assign policy ownership to the bank
Which of the following statements is CORRECT about the Life and Health Insurance Guaranty
Association? - Answer-It is funded by insurance companies through assessments
An insurance company that replaces existing insurance must provide a copy of which of the following
documents to the existing insurance company? - Answer-A policy summary
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then
pay P retirement payments after the 15 years. Which type of annuity did P purchase? - Answer-
Deferred
A Family Income Policy is a combination of Whole Life and - Answer-Decreasing Term insurance
J purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never
increase above those illustrated in the policy. Which of the following types of policies did J purchase? -
Answer-Noncancelable
Information obtained from a phone conversation to the proposed insured can be found in which of
these reports? - Answer-Inspection report
When must insurable interest exist for a life insurance contract to be valid? - Answer-Inception of the
contract
What is the purpose of a Policy Summary? - Answer-It highlights the critical parts of the policy issued
