A.D. BANKER: Life & Health -
Comprehensive Exam
_______ income benefits received by an employee are subject to taxation in proportion to the
amount of premium that the employer paid. That income attributable to the employee's premium
is not taxable. - ANS-Disability
_________ consist(s) of the amount of premium that is returned to the policyowner if the insurer
achieves lower mortality and expense costs than expected. - ANS-dividend
_____________ insurance allows for insurance coverage to be obtained when not available
from admitted carriers. - ANS-Surplus lines
A Basic Hospital Expense Policy provides coverage for the insured while ________. -
ANS-Confined to the hospital
A client purchases an individual disability income policy and receives the policy from the insurer
45 days after application. Upon receipt of the policy, the client typically has ______days to
review and return the policy to receive a full refund for any reason. - ANS-10
A contract that is drafted by an insurer and receives no input or alteration from the insured, is
considered a(n): - ANS-Contract of Adhesion
A disability income policy with an elimination period of at least 90 days must: - ANS-Cover
claims resulting from either sickness or accidents
A grandparent purchases a life insurance policy on a granddaughter this is an example of
_________. - ANS-Third-Party Ownership
A life insurance applicant wants a combination of savings and insurance protection with
guarantees. If the applicant is willing to pay premiums only until the age of 65, at which time the
policy is fully paid-up, which of the following should he/she purchase? - ANS-Limited Pay Whole
Life-Age to age 65
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what
is the amount payable to the survivor? - ANS-$250,000
A Medicare Supplement Policy must include, as a core benefit, Medicare Part B coinsurance in
the amount of _______. - ANS-20%
A personalized computer-generated illustration detailing premiums, cash values, interest rates,
and surrender values is called __________. - ANS-A policy summary
A policy is issued with a rider. Years later the policy owner would like to drop the rider in order to
save some money. Who has the authority to effect that policy change? - ANS-An executive
officer of the insurer
A policy owner has chosen the Fixed Amount Settlement Option. Which of the following best
describes this option? - ANS-The owner specifies the amount of each periodic payment and the
insurer pays that amount until the funds plus interest are depleted
A procedure used by dental insurance carriers to determine the benefit to be paid is known as: -
ANS-Precertification
, A product designed to provide coverage for necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care services provided in a setting other than an acute
care unit of a hospital is called: - ANS-Long-Term Care
A SEP uses employer funded _______ accounts. - ANS-IRA
A Short-Term Disability Policy generally is for a disability lasting for: - ANS-Not more than 2
years
A(n)__________ plan is when business partners buy life insurance policies on one another. -
ANS-Cross Purchase
After a life insurance policy has been in force for more than _____ years the policy is
considered incontestable. - ANS-2
All licenses are the property of: - ANS-The state of Arkansas
All of the following are considered to be methods of unfair competition, except: -
ANS-Replacement
All of the following are correct pertaining to Decreasing Term, except: - ANS-The premium
declines throughout the term of the policy
All of the following are life insurance policy prohibited provisions, except: - ANS-Voiding a policy
for failing to repay any policy loan or loan interest when the total outstanding policy debt is
greater than the policy's cash value
All of the following are producer responsibilities to the applicant, except: - ANS-Offering and
selling only the lowest premium policy
All of the following are prohibited marketing practices, except: - ANS-Replacement
All of the following statements about Group Life Insurance are true, except: - ANS-Employees
receive a tax deduction for employer paid premiums
All of the following statements are true of a juvenile policy, except: - ANS-The insured is the
premium payor
All of the following statements regarding producer appointments are true, except: - ANS-An
appointing insurer must file a notice of appointment within 30 days of the first submitted
application
All of the groups are considered to be exempt from the Affordable Care Act's requirement to
purchase coverage, except: - ANS-Those who must pay less than 9.5% of their income for
health insurance
All the following statements regarding the regulation of Medicare supplement policies sold in the
state of Arkansas are correct, except: - ANS-A Medicare Supplement policy must be
noncancellable and guaranteed renewable
An annuity owner can change all of the following in an annuity, except: - ANS-Mortality table
An employer who has an Open Enrollment Period four times during a policy period for group
dental coverage might cause the insurer to have concerns about which of the following? -
ANS-Adverse Selection
An existing term life insurance policy may be exchanged for a new term life insurance policy on
the ______ date. - ANS-Re-Entry
An insured is hospitalized for at least 3 days. How long will Medicare pay for confinement in a
skilled nursing facility? - ANS-Up to 100 days
An insured may find it more difficult to qualify for benefits, but will enjoy a lower premium, when
a more restrictive definition of _________ is found in a Disability Income policy. - ANS-Disability
Comprehensive Exam
_______ income benefits received by an employee are subject to taxation in proportion to the
amount of premium that the employer paid. That income attributable to the employee's premium
is not taxable. - ANS-Disability
_________ consist(s) of the amount of premium that is returned to the policyowner if the insurer
achieves lower mortality and expense costs than expected. - ANS-dividend
_____________ insurance allows for insurance coverage to be obtained when not available
from admitted carriers. - ANS-Surplus lines
A Basic Hospital Expense Policy provides coverage for the insured while ________. -
ANS-Confined to the hospital
A client purchases an individual disability income policy and receives the policy from the insurer
45 days after application. Upon receipt of the policy, the client typically has ______days to
review and return the policy to receive a full refund for any reason. - ANS-10
A contract that is drafted by an insurer and receives no input or alteration from the insured, is
considered a(n): - ANS-Contract of Adhesion
A disability income policy with an elimination period of at least 90 days must: - ANS-Cover
claims resulting from either sickness or accidents
A grandparent purchases a life insurance policy on a granddaughter this is an example of
_________. - ANS-Third-Party Ownership
A life insurance applicant wants a combination of savings and insurance protection with
guarantees. If the applicant is willing to pay premiums only until the age of 65, at which time the
policy is fully paid-up, which of the following should he/she purchase? - ANS-Limited Pay Whole
Life-Age to age 65
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what
is the amount payable to the survivor? - ANS-$250,000
A Medicare Supplement Policy must include, as a core benefit, Medicare Part B coinsurance in
the amount of _______. - ANS-20%
A personalized computer-generated illustration detailing premiums, cash values, interest rates,
and surrender values is called __________. - ANS-A policy summary
A policy is issued with a rider. Years later the policy owner would like to drop the rider in order to
save some money. Who has the authority to effect that policy change? - ANS-An executive
officer of the insurer
A policy owner has chosen the Fixed Amount Settlement Option. Which of the following best
describes this option? - ANS-The owner specifies the amount of each periodic payment and the
insurer pays that amount until the funds plus interest are depleted
A procedure used by dental insurance carriers to determine the benefit to be paid is known as: -
ANS-Precertification
, A product designed to provide coverage for necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care services provided in a setting other than an acute
care unit of a hospital is called: - ANS-Long-Term Care
A SEP uses employer funded _______ accounts. - ANS-IRA
A Short-Term Disability Policy generally is for a disability lasting for: - ANS-Not more than 2
years
A(n)__________ plan is when business partners buy life insurance policies on one another. -
ANS-Cross Purchase
After a life insurance policy has been in force for more than _____ years the policy is
considered incontestable. - ANS-2
All licenses are the property of: - ANS-The state of Arkansas
All of the following are considered to be methods of unfair competition, except: -
ANS-Replacement
All of the following are correct pertaining to Decreasing Term, except: - ANS-The premium
declines throughout the term of the policy
All of the following are life insurance policy prohibited provisions, except: - ANS-Voiding a policy
for failing to repay any policy loan or loan interest when the total outstanding policy debt is
greater than the policy's cash value
All of the following are producer responsibilities to the applicant, except: - ANS-Offering and
selling only the lowest premium policy
All of the following are prohibited marketing practices, except: - ANS-Replacement
All of the following statements about Group Life Insurance are true, except: - ANS-Employees
receive a tax deduction for employer paid premiums
All of the following statements are true of a juvenile policy, except: - ANS-The insured is the
premium payor
All of the following statements regarding producer appointments are true, except: - ANS-An
appointing insurer must file a notice of appointment within 30 days of the first submitted
application
All of the groups are considered to be exempt from the Affordable Care Act's requirement to
purchase coverage, except: - ANS-Those who must pay less than 9.5% of their income for
health insurance
All the following statements regarding the regulation of Medicare supplement policies sold in the
state of Arkansas are correct, except: - ANS-A Medicare Supplement policy must be
noncancellable and guaranteed renewable
An annuity owner can change all of the following in an annuity, except: - ANS-Mortality table
An employer who has an Open Enrollment Period four times during a policy period for group
dental coverage might cause the insurer to have concerns about which of the following? -
ANS-Adverse Selection
An existing term life insurance policy may be exchanged for a new term life insurance policy on
the ______ date. - ANS-Re-Entry
An insured is hospitalized for at least 3 days. How long will Medicare pay for confinement in a
skilled nursing facility? - ANS-Up to 100 days
An insured may find it more difficult to qualify for benefits, but will enjoy a lower premium, when
a more restrictive definition of _________ is found in a Disability Income policy. - ANS-Disability
