State Exam Simulator: 200 questions with verified
answers
A comprehensive group policy also covers expenses related to vision care. Which
of the following is not typically covered under a vision plan? Ans✓✓✓ Cataract
Surgery
A disability income insurance policy was recently issued with a rating. What does
this mean? Ans✓✓✓ Policy owner will be charged an additional premium
A health insurance applicant is notified that a physical examination is required.
Which of the following statements is correct? Ans✓✓✓ Physical examinations
are performed at the expense of the insurer
A life annuity feature which provides benefit payments for a minimum number of
years, no matter when the annuitant dies, is called Ans✓✓✓ Period Certain
A major medical expense plan typically includes coverage for hospital room and
board. Which of the following is normally covered under the category "room and
board"? Ans✓✓✓ General Nursing Care
A nonparticipating whole life insurance policy was surrendered for its $20,000
cash value. The total premiums paid had totaled $16,000. What were the federal
income tax consequences to the policyowner on receipt of the cash value?
Ans✓✓✓ $16,000 was received tax-free and $4,000 as ordinary income
A person can receive Medicare Part A Hospital benefits, regardless of age, as long
as the person has received which of the following benefits for at least 24 months?
Ans✓✓✓ Social Security Disability
,A physician who accepts assignment on all Medicare claims is called a(n)
Ans✓✓✓ Participating Providor
A policyowner has a life insurance policy where she had listed her age on the
application as 5 years younger than her actual age. If she dies and the insurer
discovers the misstatement of age, how much will the insurance company pay?
Ans✓✓✓ Less than face amount
A policyowner is permitted to take out a policy loan on a whole life policy at what
point? Ans✓✓✓ When the policy has a cash value
A policyowner pays the first annual premium for a $50,000 life insurance policy
and dies one month after the policy effective date. Which of these statements is
normally true? Ans✓✓✓ Beneficiary receives $50,000 income tax-free
A policyowner suffers a covered accident and health insurance loss on June 30
and submits the proof of loss to the insurer July 10. If the policyowner cancelled
the coverage on July 2, how will the insurance company handle the claim?
Ans✓✓✓ Claim must be paid after proof of loss is received
A pre-existing condition exclusion in an accident and health insurance policy
pertains to Ans✓✓✓ Prior Health Matters
A producer working for an insurance company may be personally liable for
Ans✓✓✓ acts performed which are prohibited in the agency contract
, A qualified profit-sharing plan is designed to Ans✓✓✓ distribute a portion of
company earnings to its employees
A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n) Ans✓✓✓
attorney-in-fact
A small employer group is an employer that employs how many? Ans✓✓✓ 2-50
employees
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA).
Periodic deposits total $120,000 and the value of the contract is now worth
$200,000. How much is taxed if the current value is surrendered today? Ans✓✓✓
$200,000
A terminally ill policyowner decides to sell his life insurance policy to help support
his family. This sale is called a(n) Ans✓✓✓ viatical settlement
ABC Company is attempting to minimize the severity of potential losses within its
company. The company is engaged in risk Ans✓✓✓ Reduction
Advertisements of Medicare Supplement Plans require state approval for each of
the following EXCEPT Ans✓✓✓ Government publications
After the extended term life nonforfeiture option is chosen, the available
insurance will be Ans✓✓✓ level term for a stated period of time
answers
A comprehensive group policy also covers expenses related to vision care. Which
of the following is not typically covered under a vision plan? Ans✓✓✓ Cataract
Surgery
A disability income insurance policy was recently issued with a rating. What does
this mean? Ans✓✓✓ Policy owner will be charged an additional premium
A health insurance applicant is notified that a physical examination is required.
Which of the following statements is correct? Ans✓✓✓ Physical examinations
are performed at the expense of the insurer
A life annuity feature which provides benefit payments for a minimum number of
years, no matter when the annuitant dies, is called Ans✓✓✓ Period Certain
A major medical expense plan typically includes coverage for hospital room and
board. Which of the following is normally covered under the category "room and
board"? Ans✓✓✓ General Nursing Care
A nonparticipating whole life insurance policy was surrendered for its $20,000
cash value. The total premiums paid had totaled $16,000. What were the federal
income tax consequences to the policyowner on receipt of the cash value?
Ans✓✓✓ $16,000 was received tax-free and $4,000 as ordinary income
A person can receive Medicare Part A Hospital benefits, regardless of age, as long
as the person has received which of the following benefits for at least 24 months?
Ans✓✓✓ Social Security Disability
,A physician who accepts assignment on all Medicare claims is called a(n)
Ans✓✓✓ Participating Providor
A policyowner has a life insurance policy where she had listed her age on the
application as 5 years younger than her actual age. If she dies and the insurer
discovers the misstatement of age, how much will the insurance company pay?
Ans✓✓✓ Less than face amount
A policyowner is permitted to take out a policy loan on a whole life policy at what
point? Ans✓✓✓ When the policy has a cash value
A policyowner pays the first annual premium for a $50,000 life insurance policy
and dies one month after the policy effective date. Which of these statements is
normally true? Ans✓✓✓ Beneficiary receives $50,000 income tax-free
A policyowner suffers a covered accident and health insurance loss on June 30
and submits the proof of loss to the insurer July 10. If the policyowner cancelled
the coverage on July 2, how will the insurance company handle the claim?
Ans✓✓✓ Claim must be paid after proof of loss is received
A pre-existing condition exclusion in an accident and health insurance policy
pertains to Ans✓✓✓ Prior Health Matters
A producer working for an insurance company may be personally liable for
Ans✓✓✓ acts performed which are prohibited in the agency contract
, A qualified profit-sharing plan is designed to Ans✓✓✓ distribute a portion of
company earnings to its employees
A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n) Ans✓✓✓
attorney-in-fact
A small employer group is an employer that employs how many? Ans✓✓✓ 2-50
employees
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA).
Periodic deposits total $120,000 and the value of the contract is now worth
$200,000. How much is taxed if the current value is surrendered today? Ans✓✓✓
$200,000
A terminally ill policyowner decides to sell his life insurance policy to help support
his family. This sale is called a(n) Ans✓✓✓ viatical settlement
ABC Company is attempting to minimize the severity of potential losses within its
company. The company is engaged in risk Ans✓✓✓ Reduction
Advertisements of Medicare Supplement Plans require state approval for each of
the following EXCEPT Ans✓✓✓ Government publications
After the extended term life nonforfeiture option is chosen, the available
insurance will be Ans✓✓✓ level term for a stated period of time
