Life Insurance And Annuity Exam Questions With Correct
Answers.
Adverse selection is characterized by: - accurate answers-A sick person
purchasing health insurance
All the following policies and contracts are typically covered by state
insurance guaranty associations. - accurate answers-A term life insurance
policy issued by a stock insurer, an individually-owned annuity, a whole life
insurance policy issued by a mutual insurer.
All of the following acts are considered unfair trade practices. - accurate
answers-Rebating, misrepresentation, coercion (replacement is not)
An insured, submits a claim and proof of loss for medical expenses covered by
his major medical policy. According to the time of payment claims provision,
how soon must the company pay the claim? - accurate answers-Immediately
All of the following, if performed frequently enough to indicate a general
business practice, are unfair claims settlement practices. - accurate answers-
Making claim payments not accompanied by a statement setting forth the
coverage under which payments are made, refusing to pay claims without
conducting a reasonable investigation based on all available information,
attempting to settle claims on the basis of an application that was altered
without the insured consent.
All of the following are involved in the collection of an applicants medical
history. - accurate answers-The agent report, the attending physician
statement, the application of the insurance policy.
What best describes MIB? - accurate answers-Non-profit trade organization
that supplies insurability information to member companies.
An individual signed a application for a $100,000 life insurance policy and
paid the first premium on January 1st. The agent issued an issued a
insurability receipt. A week later, the required medical examination proves
the person insurance. If the person dies before the insurer approves the
application: - accurate answers-The coverage will be retroactively effective. As
a result the beneficiary will receive $100,000 death benefit.
, The agent must provide the buyers guide to the applicant: - accurate answers-
Upon application or at the time of policy delivery if a 10-day free look is
provided.\
All of the following statements regarding unauthorized insurers are true,
EXCEPT - accurate answers-All excess and surplus lines insurers are
unauthorized.
Unauthorized insurers are also referred to as nonadmitted insurers, and do
not hold a certificate of authority
Unauthorized insurers are insurers that are unlicensed because they have not
yet applied for a certificate of authority, and have applied and been denied
licensure, or are excess and surplus lines insurers.
Excess and surplus lines insurers must apply for a certificate of authority to
become admitted.
John purchases a life insurance policy for his wife Jean. Which of the following
best describes who is legally bound to the policy's promise of benefits? -
accurate answers-The insurer
The ____________ section of the contract states what the insurer will not do. This
includes the risks that the insurer will not cover. - accurate answers-
Exclusions
An excess and surplus lines insurer is categorized as an _____________ - accurate
answers-Unauthorized insurance company
There are three types of private insurers. Which of the following is a true
statement about the different insurers? - accurate answers-An insurer that
conducts business in countries that is was not incorporated in is a foreign
insurer.
A foreign insurer is: - accurate answers-An insurance company conducting
business in a state in which is wasn't incorporated.
Which of the following terms means the ways insurance products are
marketed and sold to the public? - accurate answers-Distribution system
Answers.
Adverse selection is characterized by: - accurate answers-A sick person
purchasing health insurance
All the following policies and contracts are typically covered by state
insurance guaranty associations. - accurate answers-A term life insurance
policy issued by a stock insurer, an individually-owned annuity, a whole life
insurance policy issued by a mutual insurer.
All of the following acts are considered unfair trade practices. - accurate
answers-Rebating, misrepresentation, coercion (replacement is not)
An insured, submits a claim and proof of loss for medical expenses covered by
his major medical policy. According to the time of payment claims provision,
how soon must the company pay the claim? - accurate answers-Immediately
All of the following, if performed frequently enough to indicate a general
business practice, are unfair claims settlement practices. - accurate answers-
Making claim payments not accompanied by a statement setting forth the
coverage under which payments are made, refusing to pay claims without
conducting a reasonable investigation based on all available information,
attempting to settle claims on the basis of an application that was altered
without the insured consent.
All of the following are involved in the collection of an applicants medical
history. - accurate answers-The agent report, the attending physician
statement, the application of the insurance policy.
What best describes MIB? - accurate answers-Non-profit trade organization
that supplies insurability information to member companies.
An individual signed a application for a $100,000 life insurance policy and
paid the first premium on January 1st. The agent issued an issued a
insurability receipt. A week later, the required medical examination proves
the person insurance. If the person dies before the insurer approves the
application: - accurate answers-The coverage will be retroactively effective. As
a result the beneficiary will receive $100,000 death benefit.
, The agent must provide the buyers guide to the applicant: - accurate answers-
Upon application or at the time of policy delivery if a 10-day free look is
provided.\
All of the following statements regarding unauthorized insurers are true,
EXCEPT - accurate answers-All excess and surplus lines insurers are
unauthorized.
Unauthorized insurers are also referred to as nonadmitted insurers, and do
not hold a certificate of authority
Unauthorized insurers are insurers that are unlicensed because they have not
yet applied for a certificate of authority, and have applied and been denied
licensure, or are excess and surplus lines insurers.
Excess and surplus lines insurers must apply for a certificate of authority to
become admitted.
John purchases a life insurance policy for his wife Jean. Which of the following
best describes who is legally bound to the policy's promise of benefits? -
accurate answers-The insurer
The ____________ section of the contract states what the insurer will not do. This
includes the risks that the insurer will not cover. - accurate answers-
Exclusions
An excess and surplus lines insurer is categorized as an _____________ - accurate
answers-Unauthorized insurance company
There are three types of private insurers. Which of the following is a true
statement about the different insurers? - accurate answers-An insurer that
conducts business in countries that is was not incorporated in is a foreign
insurer.
A foreign insurer is: - accurate answers-An insurance company conducting
business in a state in which is wasn't incorporated.
Which of the following terms means the ways insurance products are
marketed and sold to the public? - accurate answers-Distribution system
