LAH mastery exam UPDATED ACTUAL Questions and CORRECT Answers
All of the following statements regarding annuities are
true EXCEPT
A)
an annuity is classified as immediate or deferred, de-
pending on when benefit payments begin
B)
B)
the annuitant is always the same person as the owner of
the annuitant is always the same person as the owner of
the annuity
the annuity
C)
straight life annuities provide income as long as the an-
nuitant lives
D)
the surrender charge serves as a back-end load when the
annuity is canceled in its early years
Transferring total ownership of a life insurance policy may
be accomplished in which of the following ways?
A)
Collateral assignment
B) C)
Total surrender Absolute assignment
C)
Absolute assignment
D)
Partial surrender
A group life insurance plan is considered noncontributory
when
A)
C)
the employee pays part or all of the premium for the plan
the employer pays all of the premium for the plan
B)
the service organization pays part of the premium
C)
,the employer pays all of the premium for the plan
D)
the third-party administrator pays the premium for the
plan
Which of the following types of life insurance policy was
designed to combine the protection features of tradition-
al life insurance with the cash value growth potential of
securities?
A)
Term life C)
B) Variable life
Universal life
C)
Variable life
D)
Whole life
In an employer-paid group disability policy, if the employ-
ee becomes disabled and the benefit is $2,000/month,
which of the following is CORRECT?
A)
Benefits are tax deductible to the employer.
B)
B)
Benefits are not taxable to the employee.
Benefits are not taxable to the employee.
C)
Benefits are taxable to employees.
D)
Premiums are taxable to employer.
Group health insurance premiums paid by the employer
are
A)
sometimes tax deductible
, B)
partially tax deductible
C) D)
not tax deductible tax deductible as a business expense
D)
tax deductible as a business expense
All of the following are required to sign an application for
life insurance EXCEPT
A)
the beneficiary
B) A)
the applicant the beneficiary
C)
the agent
D)
the insured
Benefits received from a medical expense plan are
A)
not taxable
B)
fully taxable A)
C) not taxable
taxable to the extent that they exceed premiums paid
D)
taxable to the extent that they exceed the actual cost of
medical care
All of the following are ways in which insurers issue
health insurance policies when an impairment is indi-
cated. Which is the most common approach used with
disability income policies?
A)
, Issuing the policy with a reduced-benefit amount
B)
Issuing the policy with a reduced-benefit period
A)
C)
Issuing the policy with a reduced-benefit amount
Issuing the policy with a longer elimination period
D)
Issuing the policy with an exclusion rider
Elimination (waiting) periods in disability income policies
are designed to
A)
help keep premium rates at a profitable level
B) D)
last generally for 1 year specify a limited period of time at the start of disability
C) when benefits are not payable
eliminate claims for long-term disabilities
D)
specify a limited period of time at the start of disability
when benefits are not payable
To prevent the lapse of a whole life insurance policy at the
end of the grace period, cash value will be used by the
insurer to pay the premium. This is called
A)
extended term insurance
D)
B)
automatic premium loan
cash surrender within 30 days of the lapse
C)
reduced paid-up insurance
D)
automatic premium loan
Information about an applicant's character, general repu-
tation, personal habits, and lifestyle would be included in
All of the following statements regarding annuities are
true EXCEPT
A)
an annuity is classified as immediate or deferred, de-
pending on when benefit payments begin
B)
B)
the annuitant is always the same person as the owner of
the annuitant is always the same person as the owner of
the annuity
the annuity
C)
straight life annuities provide income as long as the an-
nuitant lives
D)
the surrender charge serves as a back-end load when the
annuity is canceled in its early years
Transferring total ownership of a life insurance policy may
be accomplished in which of the following ways?
A)
Collateral assignment
B) C)
Total surrender Absolute assignment
C)
Absolute assignment
D)
Partial surrender
A group life insurance plan is considered noncontributory
when
A)
C)
the employee pays part or all of the premium for the plan
the employer pays all of the premium for the plan
B)
the service organization pays part of the premium
C)
,the employer pays all of the premium for the plan
D)
the third-party administrator pays the premium for the
plan
Which of the following types of life insurance policy was
designed to combine the protection features of tradition-
al life insurance with the cash value growth potential of
securities?
A)
Term life C)
B) Variable life
Universal life
C)
Variable life
D)
Whole life
In an employer-paid group disability policy, if the employ-
ee becomes disabled and the benefit is $2,000/month,
which of the following is CORRECT?
A)
Benefits are tax deductible to the employer.
B)
B)
Benefits are not taxable to the employee.
Benefits are not taxable to the employee.
C)
Benefits are taxable to employees.
D)
Premiums are taxable to employer.
Group health insurance premiums paid by the employer
are
A)
sometimes tax deductible
, B)
partially tax deductible
C) D)
not tax deductible tax deductible as a business expense
D)
tax deductible as a business expense
All of the following are required to sign an application for
life insurance EXCEPT
A)
the beneficiary
B) A)
the applicant the beneficiary
C)
the agent
D)
the insured
Benefits received from a medical expense plan are
A)
not taxable
B)
fully taxable A)
C) not taxable
taxable to the extent that they exceed premiums paid
D)
taxable to the extent that they exceed the actual cost of
medical care
All of the following are ways in which insurers issue
health insurance policies when an impairment is indi-
cated. Which is the most common approach used with
disability income policies?
A)
, Issuing the policy with a reduced-benefit amount
B)
Issuing the policy with a reduced-benefit period
A)
C)
Issuing the policy with a reduced-benefit amount
Issuing the policy with a longer elimination period
D)
Issuing the policy with an exclusion rider
Elimination (waiting) periods in disability income policies
are designed to
A)
help keep premium rates at a profitable level
B) D)
last generally for 1 year specify a limited period of time at the start of disability
C) when benefits are not payable
eliminate claims for long-term disabilities
D)
specify a limited period of time at the start of disability
when benefits are not payable
To prevent the lapse of a whole life insurance policy at the
end of the grace period, cash value will be used by the
insurer to pay the premium. This is called
A)
extended term insurance
D)
B)
automatic premium loan
cash surrender within 30 days of the lapse
C)
reduced paid-up insurance
D)
automatic premium loan
Information about an applicant's character, general repu-
tation, personal habits, and lifestyle would be included in
