Life & Health Exam Question Bank with correct answers
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What |type |of |insurance |would |be |used |for |a |Return |of |Premium |Rider? |- |correct |answer |
Increasing |Term; |Return |of |premium |rider |is |achieved |by |using |increasing |term |insurance. |
When |added |to |a |whole |life |policy |it |provides |that |at |death |prior |to |a |given |age, |not |only |is |
the |original |face |amount |payable, |but |also |all |premiums |previously |paid |are |payable |to |the |
beneficiary.
Insurers |may |change |which |of |the |following |on |a |guaranteed |renewable |health |insurance |
policy? |- |correct |answer |Rate |by |class
Which |of |the |following |refers |to |"Own |Occupation" |disability? |- |correct |answer |Insured |is |
unable |to |perform |duties |of |the |occupation |for |which |he/she |was |educated/trained
The |period |of |time |immediately |following |a |disability |during |which |benefits |are |not |payable |is
|- |correct |answer |Elimination |Period; |The |elimination |period |is |a |waiting |period, |expressed |in |
days, |not |dollars |imposed |on |the |insured |from |the |onset |of |disability |until |benefit |payments |
commence.
All |of |the |following |are |true |about |variable |products |except |- |correct |answer |The |premiums |
are |invested |in |the |insurer's |general |account
To |comply |with |Fair |Credit |Reporting |Act, |when |must |a |producer |notify |an |applicant |that |a |
credit |report |may |be |requested? |- |correct |answer |At |the |time |of |the |application
Which |of |the |following |is |not |a |goal |of |risk |retention? |- |correct |answer |To |minimize |the |
insured's |level |of |liability |in |the |event |of |loss
Concerning |Juvenile |Life |insurance, |which |of |the |following |statements |is |INCORRECT? |- |correct
|answer |Juvenile |life |is |classified |as |any |life |insurance |purchased |by |a |minor
,Traditional |IRA |contributions |are |- |correct |answer |Tax |deductible
An |employee |quits |her |job |where |she |has |a |balance |of |$10,000 |in |her |qualified |plan. |If |she |
decides |to |do |a |direct |transfer |from |her |plan |to |a |traditional |IRA, |how |much |will |be |
transferred |from |one |plan |administrator |to |another |and |what |is |the |tax |consequence |of |a |
direct |transfer? |- |correct |answer |$10,000, |no |tax |consequence
Which |of |the |following |are |the |authorities |that |an |agent |can |hold? |- |correct |answer |Express |
and |implied
Pertaining |to |insurance, |what |is |the |definition |of |a |fiduciary |responsibility? |- |correct |answer |
Promptly |forwarding |premiums |to |the |insurance |company
All |of |the |following |are |correct |about |the |required |provisions |of |a |health |insurance |policy |
except |- |correct |answer |A |reinstated |policy |provides |immediate |coverage |for |an |illness
in |which |of |the |following |cases |would |a |credit |disability |policy |be |issued? |- |correct |answer |If |
an |individual |is |in |debt |to |a |specific |creditor, |payments |will |be |made |for |him/her |until |the |
return |to |work
Which |of |the |following |expenses |is |not |covered |by |a |health |insurance |policy? |- |correct |answer
|Funeral
What |type |of |annuity |promises |to |pay |a |beneficiary, |in |a |lump |sum, |the |difference |between |
the |amount |paid |into |the |contract |and |the |benefits |received |prior |to |the |annuitant's |death? |- |
correct |answer |Cash |refund |annuity
Credit |Life |Insurance |- |correct |answer |insures |the |life |of |a |debtor
Premium |payments |for |personally-owned |disability |income |policies |are |- |correct |answer |Not |
tax |deductible
, On |a |major |medical |insurance |policy, |the |amount |that |an |insured |must |pay |on |a |claim |before |
the |insurer |will |pay |is |known |as |- |correct |answer |Deductible
Which |of |the |following |individuals |is |eligible |for |a |health |savings |account? |- |correct |answer |
Allison |is |insured |by |a |High |Deductible |Health |Plan |(HDHP)
Mike |Armstrong |is |a |producer |and |wants |to |operate |under |the |name |The |Insurance |Palace. |
What |kind |of |license |would |this |require? |- |correct |answer |Agency
Why |do |group |health |providers |usually |require |a |certain |amount |of |participation |in |the |plan |
by |eligible |employees? |- |correct |answer |To |guard |against |adverse |selection |and |reduce |cost
Because |an |insurance |policy |is |a |legal |contract, |it |must |conform |to |the |state |laws |governing |
contracts |which |require |all |of |the |following |elements |EXCEPT |- |correct |answer |Conditions
Which |of |the |following |factors |determines |the |amount |of |each |installment |paid |in |a |life |
income |option |arrangement? |- |correct |answer |Recipient's |life |expectancy |and |amount |of |
principal
A |temporary |license |in |this |state |is |valid |for |- |correct |answer |180 |days
Because |an |agent |is |using |stationery |with |the |logo |of |an |insurance |company, |applicants |for |
insurance |assume |that |the |agent |is |authorized |to |transact |on |behalf |of |that |insurer. |What |type
|of |agent |authority |does |this |describe? |- |correct |answer |Apparent
Which |of |the |following |individuals |must |be |licensed |as |an |insurance |agent? |- |correct |answer |
An |employee |of |an |insurer |who |receives |commissions |only |on |a |few |policies |a |year
The |provision |that |states |that |both |the |printed |contract |and |a |copy |of |the |application |form |
the |contract |between |the |policy-owner |and |the |insurer |is |called |the |- |correct |answer |Entire |
contract
| | | | | | | |
What |type |of |insurance |would |be |used |for |a |Return |of |Premium |Rider? |- |correct |answer |
Increasing |Term; |Return |of |premium |rider |is |achieved |by |using |increasing |term |insurance. |
When |added |to |a |whole |life |policy |it |provides |that |at |death |prior |to |a |given |age, |not |only |is |
the |original |face |amount |payable, |but |also |all |premiums |previously |paid |are |payable |to |the |
beneficiary.
Insurers |may |change |which |of |the |following |on |a |guaranteed |renewable |health |insurance |
policy? |- |correct |answer |Rate |by |class
Which |of |the |following |refers |to |"Own |Occupation" |disability? |- |correct |answer |Insured |is |
unable |to |perform |duties |of |the |occupation |for |which |he/she |was |educated/trained
The |period |of |time |immediately |following |a |disability |during |which |benefits |are |not |payable |is
|- |correct |answer |Elimination |Period; |The |elimination |period |is |a |waiting |period, |expressed |in |
days, |not |dollars |imposed |on |the |insured |from |the |onset |of |disability |until |benefit |payments |
commence.
All |of |the |following |are |true |about |variable |products |except |- |correct |answer |The |premiums |
are |invested |in |the |insurer's |general |account
To |comply |with |Fair |Credit |Reporting |Act, |when |must |a |producer |notify |an |applicant |that |a |
credit |report |may |be |requested? |- |correct |answer |At |the |time |of |the |application
Which |of |the |following |is |not |a |goal |of |risk |retention? |- |correct |answer |To |minimize |the |
insured's |level |of |liability |in |the |event |of |loss
Concerning |Juvenile |Life |insurance, |which |of |the |following |statements |is |INCORRECT? |- |correct
|answer |Juvenile |life |is |classified |as |any |life |insurance |purchased |by |a |minor
,Traditional |IRA |contributions |are |- |correct |answer |Tax |deductible
An |employee |quits |her |job |where |she |has |a |balance |of |$10,000 |in |her |qualified |plan. |If |she |
decides |to |do |a |direct |transfer |from |her |plan |to |a |traditional |IRA, |how |much |will |be |
transferred |from |one |plan |administrator |to |another |and |what |is |the |tax |consequence |of |a |
direct |transfer? |- |correct |answer |$10,000, |no |tax |consequence
Which |of |the |following |are |the |authorities |that |an |agent |can |hold? |- |correct |answer |Express |
and |implied
Pertaining |to |insurance, |what |is |the |definition |of |a |fiduciary |responsibility? |- |correct |answer |
Promptly |forwarding |premiums |to |the |insurance |company
All |of |the |following |are |correct |about |the |required |provisions |of |a |health |insurance |policy |
except |- |correct |answer |A |reinstated |policy |provides |immediate |coverage |for |an |illness
in |which |of |the |following |cases |would |a |credit |disability |policy |be |issued? |- |correct |answer |If |
an |individual |is |in |debt |to |a |specific |creditor, |payments |will |be |made |for |him/her |until |the |
return |to |work
Which |of |the |following |expenses |is |not |covered |by |a |health |insurance |policy? |- |correct |answer
|Funeral
What |type |of |annuity |promises |to |pay |a |beneficiary, |in |a |lump |sum, |the |difference |between |
the |amount |paid |into |the |contract |and |the |benefits |received |prior |to |the |annuitant's |death? |- |
correct |answer |Cash |refund |annuity
Credit |Life |Insurance |- |correct |answer |insures |the |life |of |a |debtor
Premium |payments |for |personally-owned |disability |income |policies |are |- |correct |answer |Not |
tax |deductible
, On |a |major |medical |insurance |policy, |the |amount |that |an |insured |must |pay |on |a |claim |before |
the |insurer |will |pay |is |known |as |- |correct |answer |Deductible
Which |of |the |following |individuals |is |eligible |for |a |health |savings |account? |- |correct |answer |
Allison |is |insured |by |a |High |Deductible |Health |Plan |(HDHP)
Mike |Armstrong |is |a |producer |and |wants |to |operate |under |the |name |The |Insurance |Palace. |
What |kind |of |license |would |this |require? |- |correct |answer |Agency
Why |do |group |health |providers |usually |require |a |certain |amount |of |participation |in |the |plan |
by |eligible |employees? |- |correct |answer |To |guard |against |adverse |selection |and |reduce |cost
Because |an |insurance |policy |is |a |legal |contract, |it |must |conform |to |the |state |laws |governing |
contracts |which |require |all |of |the |following |elements |EXCEPT |- |correct |answer |Conditions
Which |of |the |following |factors |determines |the |amount |of |each |installment |paid |in |a |life |
income |option |arrangement? |- |correct |answer |Recipient's |life |expectancy |and |amount |of |
principal
A |temporary |license |in |this |state |is |valid |for |- |correct |answer |180 |days
Because |an |agent |is |using |stationery |with |the |logo |of |an |insurance |company, |applicants |for |
insurance |assume |that |the |agent |is |authorized |to |transact |on |behalf |of |that |insurer. |What |type
|of |agent |authority |does |this |describe? |- |correct |answer |Apparent
Which |of |the |following |individuals |must |be |licensed |as |an |insurance |agent? |- |correct |answer |
An |employee |of |an |insurer |who |receives |commissions |only |on |a |few |policies |a |year
The |provision |that |states |that |both |the |printed |contract |and |a |copy |of |the |application |form |
the |contract |between |the |policy-owner |and |the |insurer |is |called |the |- |correct |answer |Entire |
contract
