Oregon Life Insurance Exam Simulation
Questions and Answers Graded A+ 2025
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the
a)Payor rider.
b)Other-insured rider.
c)Change of insured rider
.d)Juvenile rider. - ANSWER-b
. In a long-term care policy, pre-existing condition limitations
a)Must appear as a separate paragraph and be clearly labeled.
b)Apply to 12 months from the effective date of coverage.
c)Never have specific exclusions.
d)Are not permitted. - ANSWER-a
A 35-year-old spouse of the insured collects early distributions from her husband's
retirement plan as a result of a divorce settlement. What penalties, if any, will she have
to pay?
a)15% penalty tax
b)Age-based penalty stipulated in the contract
c)No penalties
d)10% penalty tax - ANSWER-c
A 35-year-old spouse of the insured collects early distributions from her husband's
retirement plan as a result of a divorce settlement. What penalties, if any, will she have
to pay?
a)15% penalty tax
b)Age-based penalty stipulated in the contract
c)No penalties
d)10% penalty tax - ANSWER-c
A 35-year-old spouse of the insured collects early distributions from her husband's
retirement plan as a result of a divorce settlement. What penalties, if any, will she have
to pay?
a)No penalties
b)10% penalty tax
c)15% penalty tax
d)Age-based penalty stipulated in the contract - ANSWER-a
,A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA
within 60 days. Which of the following is true?
a)No taxes are due since the plan participant is over age 59 1/2.
b)There is a 10% early withdrawal penalty.
c)The amount distributed is subject to ordinary income tax.
d)The amount of the distribution is reduced by the amount of a 20% withholding tax. -
ANSWER-d
A 70-year-old individual who bought a Part B Medicare policy 2 months ago just began
kidney dialysis treatments this week. The individual is now applying for a Medicare
supplement policy, which would begin in 8 months. Which of the following could the
insurer do to avoid paying for the dialysis?
a)Deny the supplement policy
b)Charge a higher premium
c)Declare a pre-existing condition
d)Permanently exclude coverage for dialysis - ANSWER-c
A couple owns a life insurance policy with a Children's Term rider. Their daughter is
reaching the maximum age of dependent coverage, so she will have to convert to
permanent insurance in the near future. Which of the following will she need to provide
for proof of insurability?
a)Medical exam and parents' medical history
b)Proof of insurability is not required.
c)Medical exam
d)Her parents' federal income tax receipts - ANSWER-b
A father owns a life insurance policy on his 15-year-old daughter. The policy contains
the optional Payor Benefit rider. If the father becomes disabled, what will happen to the
life insurance premiums?
a)The insured's premiums will be waived until she is 21.
b)The premiums will become tax deductible until the insured's 18th birthday.
c)Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected.
d)The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums. - ANSWER-a
A Health insurance policy lapses but is reinstated within an acceptable timeframe. How
soon from the reinstatement date will coverage for accidents become effective?
a)Immediately
b)After 14 days
,c)After 21 days
d)After 31 days - ANSWER-a
A man bought an individual health insurance policy for himself. Which of the following
roles does he now legally have?
a)Broker
b)Subscriber only
c)Insured only
d)Both subscriber and insured - ANSWER-d
A Medicare SELECT policy does all of the following EXCEPT
a)Provide payment for full coverage under the policy for covered services not available
through network providers.
b)Provide for continuation of coverage in the event that Medicare SELECT policies are
discontinued due to the failure of the Medicare SELECT program.
c)Prohibit payment for regularly covered services if provided by non-network providers.
d)Make full and fair disclosure in writing of the provisions, restrictions, and limitations of
the Medicare SELECT policy to each applicant. - ANSWER-c
A patient is being fitted for dentures. Which type of dental treatment is this?
a)Orthodontics
b)Prosthodontics
c)Replacement
d)Restorative - ANSWER-b
A policyowner fails to pay the premium due on his whole life policy after the grace
period passes, but the policy remains in force. This is due to what provision?
a)Assignment
b)Automatic premium loan
c)Waiver of premium
d)Incontestability period - ANSWER-b
A policyowner is reading a statement on the first page of his health insurance policy,
which says "this is a limited policy." What is the name of this statement?
a)Policy Limitation Notice
b)Statute of Limitations
c)Limited Benefit Statement
d)Limited Policy Notice - ANSWER-d
A policyowner is reading a statement on the first page of his health insurance policy,
which says "this is a limited policy." What is the name of this statement?
, a)Policy Limitation Notice
b)Statute of Limitations
c)Limited Benefit Statement
d)Limited Policy Notice - ANSWER-d
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will
a)Automatically pay the policy proceeds.
b)Pay the policy proceeds only if it would have issued the policy.
c)Pay the policy proceeds up to an established limit.
d)Not pay the policy proceeds under any circumstances. - ANSWER-b
A provision in a life or health insurance policy that may assist an insurance company in
determining the cause of death of an insured is called
a)Medical exam.
b)Autopsy.
c)Inspection.
d)Attending physician's report. - ANSWER-b
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the
a)Payor rider.
b)Other-insured rider.
c)Change of insured rider.
d)Juvenile rider. - ANSWER-b
A specialized dental service that provides for treatment of missing teeth is known as
a)Orthodontics.
b)Endodontics.
c)Periodontics.
d)Prosthodontics. - ANSWER-d
A tax-sheltered annuity is a special tax-favored retirement plan available to
a)Certain groups depending on factors such as race, gender, and age.
b)Certain groups of employees only.
c)Anyone.
d)Certain age groups only. - ANSWER-b
After a back injury, an insured is disabled for a year. His insurance policy carries a
Disability Income Benefit rider. Which of the following benefits will he receive?
Questions and Answers Graded A+ 2025
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the
a)Payor rider.
b)Other-insured rider.
c)Change of insured rider
.d)Juvenile rider. - ANSWER-b
. In a long-term care policy, pre-existing condition limitations
a)Must appear as a separate paragraph and be clearly labeled.
b)Apply to 12 months from the effective date of coverage.
c)Never have specific exclusions.
d)Are not permitted. - ANSWER-a
A 35-year-old spouse of the insured collects early distributions from her husband's
retirement plan as a result of a divorce settlement. What penalties, if any, will she have
to pay?
a)15% penalty tax
b)Age-based penalty stipulated in the contract
c)No penalties
d)10% penalty tax - ANSWER-c
A 35-year-old spouse of the insured collects early distributions from her husband's
retirement plan as a result of a divorce settlement. What penalties, if any, will she have
to pay?
a)15% penalty tax
b)Age-based penalty stipulated in the contract
c)No penalties
d)10% penalty tax - ANSWER-c
A 35-year-old spouse of the insured collects early distributions from her husband's
retirement plan as a result of a divorce settlement. What penalties, if any, will she have
to pay?
a)No penalties
b)10% penalty tax
c)15% penalty tax
d)Age-based penalty stipulated in the contract - ANSWER-a
,A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA
within 60 days. Which of the following is true?
a)No taxes are due since the plan participant is over age 59 1/2.
b)There is a 10% early withdrawal penalty.
c)The amount distributed is subject to ordinary income tax.
d)The amount of the distribution is reduced by the amount of a 20% withholding tax. -
ANSWER-d
A 70-year-old individual who bought a Part B Medicare policy 2 months ago just began
kidney dialysis treatments this week. The individual is now applying for a Medicare
supplement policy, which would begin in 8 months. Which of the following could the
insurer do to avoid paying for the dialysis?
a)Deny the supplement policy
b)Charge a higher premium
c)Declare a pre-existing condition
d)Permanently exclude coverage for dialysis - ANSWER-c
A couple owns a life insurance policy with a Children's Term rider. Their daughter is
reaching the maximum age of dependent coverage, so she will have to convert to
permanent insurance in the near future. Which of the following will she need to provide
for proof of insurability?
a)Medical exam and parents' medical history
b)Proof of insurability is not required.
c)Medical exam
d)Her parents' federal income tax receipts - ANSWER-b
A father owns a life insurance policy on his 15-year-old daughter. The policy contains
the optional Payor Benefit rider. If the father becomes disabled, what will happen to the
life insurance premiums?
a)The insured's premiums will be waived until she is 21.
b)The premiums will become tax deductible until the insured's 18th birthday.
c)Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected.
d)The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums. - ANSWER-a
A Health insurance policy lapses but is reinstated within an acceptable timeframe. How
soon from the reinstatement date will coverage for accidents become effective?
a)Immediately
b)After 14 days
,c)After 21 days
d)After 31 days - ANSWER-a
A man bought an individual health insurance policy for himself. Which of the following
roles does he now legally have?
a)Broker
b)Subscriber only
c)Insured only
d)Both subscriber and insured - ANSWER-d
A Medicare SELECT policy does all of the following EXCEPT
a)Provide payment for full coverage under the policy for covered services not available
through network providers.
b)Provide for continuation of coverage in the event that Medicare SELECT policies are
discontinued due to the failure of the Medicare SELECT program.
c)Prohibit payment for regularly covered services if provided by non-network providers.
d)Make full and fair disclosure in writing of the provisions, restrictions, and limitations of
the Medicare SELECT policy to each applicant. - ANSWER-c
A patient is being fitted for dentures. Which type of dental treatment is this?
a)Orthodontics
b)Prosthodontics
c)Replacement
d)Restorative - ANSWER-b
A policyowner fails to pay the premium due on his whole life policy after the grace
period passes, but the policy remains in force. This is due to what provision?
a)Assignment
b)Automatic premium loan
c)Waiver of premium
d)Incontestability period - ANSWER-b
A policyowner is reading a statement on the first page of his health insurance policy,
which says "this is a limited policy." What is the name of this statement?
a)Policy Limitation Notice
b)Statute of Limitations
c)Limited Benefit Statement
d)Limited Policy Notice - ANSWER-d
A policyowner is reading a statement on the first page of his health insurance policy,
which says "this is a limited policy." What is the name of this statement?
, a)Policy Limitation Notice
b)Statute of Limitations
c)Limited Benefit Statement
d)Limited Policy Notice - ANSWER-d
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will
a)Automatically pay the policy proceeds.
b)Pay the policy proceeds only if it would have issued the policy.
c)Pay the policy proceeds up to an established limit.
d)Not pay the policy proceeds under any circumstances. - ANSWER-b
A provision in a life or health insurance policy that may assist an insurance company in
determining the cause of death of an insured is called
a)Medical exam.
b)Autopsy.
c)Inspection.
d)Attending physician's report. - ANSWER-b
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the
a)Payor rider.
b)Other-insured rider.
c)Change of insured rider.
d)Juvenile rider. - ANSWER-b
A specialized dental service that provides for treatment of missing teeth is known as
a)Orthodontics.
b)Endodontics.
c)Periodontics.
d)Prosthodontics. - ANSWER-d
A tax-sheltered annuity is a special tax-favored retirement plan available to
a)Certain groups depending on factors such as race, gender, and age.
b)Certain groups of employees only.
c)Anyone.
d)Certain age groups only. - ANSWER-b
After a back injury, an insured is disabled for a year. His insurance policy carries a
Disability Income Benefit rider. Which of the following benefits will he receive?
