LIFE, HEALTH, & ACCIDENT
INSURANCE EXAM QUESTIONS &
DETAILED ANSWERS PASSED
LATEST VERSION
Regarding an organizational license, what happens when a corporation is dissolved? -
CORRECT ANSWER The license is terminated
john applies for a variable annuity and does not request that the premiums be
immediately invested in a stock or bond portfolio. After the annuity is issued, John
returns the annuity contract to the insurer within the free look period. What will John
receive from the insurer? - CORRECT ANSWER The entire premium
Which of the following in NOT of the common personal uses for life insurance? -
CORRECT ANSWER Funding a buy-sell agreement
Which type of life insurance policy gives the policy owner the right to share in the
insurer's surplus? - CORRECT ANSWER Participating
The insured bought an annuity ten years ago. He will retire in five years. To determine
the value of his annuity, he must multiply the value of the "accumulation units" he owns,
times the value of the "separate account". This type of annuity is known as a -
CORRECT ANSWER Variable annuity
Medicare Part A begins automatically at age: - CORRECT ANSWER 65
An individual license is considered terminated: - CORRECT ANSWER On the death of
the licensee
Usually, in order to join a group insurance plan without proving insurability, an employee
must: - CORRECT ANSWER Join the plan during the enrollment period
A single deductible amount for all members of the same family and a right to single
family member deductibles is known as: - CORRECT ANSWER Family deductible
COBRA applies to employers with at least - CORRECT ANSWER 20 employees
The policy provision which comes into effect when the insured and primary beneficiary
die in a simultaneous (common) accident with no evidence as to who died first is: -
CORRECT ANSWER Common disaster provision
,Unless it is merely a statement of an expectation or a belief, a representation as to the
future is considered which of the following? - CORRECT ANSWER Promise
In group insurance the Certificates of Insurance are issued to: - CORRECT ANSWER
The group members
What is a disability income policy that covers injuries suffered by an insured on or off
the job called? - CORRECT ANSWER An occupational policy
Twelve months ago, a man slipped and fell down a flight of stairs at his workplace. As a
result he has a paralysis for which he is not expected to recover. This 46 year old
person will probably be able to collect disability income benefits from: - CORRECT
ANSWER Workers Compensation
What must an insurer do who accepts an application from an agent who is not
specifically appointed by an insurer and then issues a policy from that application? -
CORRECT ANSWER Forward to the Insurance Commissioner a Notice of Appointment
within 14 days of receipt of application
If one were to receive the principal sum benefit of death in a disability policy, the death
must occur: - CORRECT ANSWER Within a specified number of days after injury
occurs
Which of the following is true regarding participation in a group health plan? -
CORRECT ANSWER A non-contributory group health plan must involve all members
An insurer owned by policyholders is a: - CORRECT ANSWER Mutual insurer
Why should a contingent beneficiary be named in a life insurance policy? - CORRECT
ANSWER To determine who receives the policy benefits if the primary beneficiary is
deceased
When a family policy covers children, all of the following are true EXCEPT - CORRECT
ANSWER Evidence of insurability is required if coverage for children is permanent
insurance
Each of the following terms is an important characteristic of a major medical policy,
EXCEPT: - CORRECT ANSWER Capitation
What would a person be guilty of who refuses to submit books and records to the
Commissioner? - CORRECT ANSWER Misdemeanor
An insured bought a $150,000 non-participating whole life policy many years ago. She
is 100 years old today. She has never borrowed from the policy, and has made all
, premium payments when due. The policy cash value is: - CORRECT ANSWER
$150,000
Accidental Death and Dismemberment insurance, which of the following would not be
considered accidental? - CORRECT ANSWER Employee requires abdominal surgery
after food poisoning in the lunch room
An association of industry specific employers who are joined together in order to qualify
for, or gain premium advantages, in group insurance is: - CORRECT ANSWER MET
Which of the following is a true statement regarding the social security (OASHI)
program? - CORRECT ANSWER The program provides a minimum floor of income,
and is meant to supplement a retiree's own personal program
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which of the
following is a qualifying event? - CORRECT ANSWER Divorce
Which is NOT part of transacting insurance? - CORRECT ANSWER Establishing a list
of clients
Which party has rights in a life insurance policy only after the death of the insured? -
CORRECT ANSWER The beneficiary
Unless the applicant indicates otherwise during the right-to-return period in an individual
annuity, the premium for a variable annuity would be invested only in: - CORRECT
ANSWER Fixed income investments and money market funds
HMO's are involved in all of the following EXCEPT: - CORRECT ANSWER
Emphasizing the use of specialty physicians
A person has a disability policy with the following definition of disability: "the inability to
perform any occupation for which the insured is suited through education, training,
experience or prior economic status." This is an: - CORRECT ANSWER Any
occupation definition and is very restrictive
If the financial loss on a certain group of people occurring over a certain period of time
defines the pricing of a disability policy, it is the pricing principle known as: - CORRECT
ANSWER Frequency
Terminally ill persons would need which of the following? - CORRECT ANSWER
Hospice care
Who has the right to change life insurance policy beneficiaries? - CORRECT ANSWER
The policyholder
INSURANCE EXAM QUESTIONS &
DETAILED ANSWERS PASSED
LATEST VERSION
Regarding an organizational license, what happens when a corporation is dissolved? -
CORRECT ANSWER The license is terminated
john applies for a variable annuity and does not request that the premiums be
immediately invested in a stock or bond portfolio. After the annuity is issued, John
returns the annuity contract to the insurer within the free look period. What will John
receive from the insurer? - CORRECT ANSWER The entire premium
Which of the following in NOT of the common personal uses for life insurance? -
CORRECT ANSWER Funding a buy-sell agreement
Which type of life insurance policy gives the policy owner the right to share in the
insurer's surplus? - CORRECT ANSWER Participating
The insured bought an annuity ten years ago. He will retire in five years. To determine
the value of his annuity, he must multiply the value of the "accumulation units" he owns,
times the value of the "separate account". This type of annuity is known as a -
CORRECT ANSWER Variable annuity
Medicare Part A begins automatically at age: - CORRECT ANSWER 65
An individual license is considered terminated: - CORRECT ANSWER On the death of
the licensee
Usually, in order to join a group insurance plan without proving insurability, an employee
must: - CORRECT ANSWER Join the plan during the enrollment period
A single deductible amount for all members of the same family and a right to single
family member deductibles is known as: - CORRECT ANSWER Family deductible
COBRA applies to employers with at least - CORRECT ANSWER 20 employees
The policy provision which comes into effect when the insured and primary beneficiary
die in a simultaneous (common) accident with no evidence as to who died first is: -
CORRECT ANSWER Common disaster provision
,Unless it is merely a statement of an expectation or a belief, a representation as to the
future is considered which of the following? - CORRECT ANSWER Promise
In group insurance the Certificates of Insurance are issued to: - CORRECT ANSWER
The group members
What is a disability income policy that covers injuries suffered by an insured on or off
the job called? - CORRECT ANSWER An occupational policy
Twelve months ago, a man slipped and fell down a flight of stairs at his workplace. As a
result he has a paralysis for which he is not expected to recover. This 46 year old
person will probably be able to collect disability income benefits from: - CORRECT
ANSWER Workers Compensation
What must an insurer do who accepts an application from an agent who is not
specifically appointed by an insurer and then issues a policy from that application? -
CORRECT ANSWER Forward to the Insurance Commissioner a Notice of Appointment
within 14 days of receipt of application
If one were to receive the principal sum benefit of death in a disability policy, the death
must occur: - CORRECT ANSWER Within a specified number of days after injury
occurs
Which of the following is true regarding participation in a group health plan? -
CORRECT ANSWER A non-contributory group health plan must involve all members
An insurer owned by policyholders is a: - CORRECT ANSWER Mutual insurer
Why should a contingent beneficiary be named in a life insurance policy? - CORRECT
ANSWER To determine who receives the policy benefits if the primary beneficiary is
deceased
When a family policy covers children, all of the following are true EXCEPT - CORRECT
ANSWER Evidence of insurability is required if coverage for children is permanent
insurance
Each of the following terms is an important characteristic of a major medical policy,
EXCEPT: - CORRECT ANSWER Capitation
What would a person be guilty of who refuses to submit books and records to the
Commissioner? - CORRECT ANSWER Misdemeanor
An insured bought a $150,000 non-participating whole life policy many years ago. She
is 100 years old today. She has never borrowed from the policy, and has made all
, premium payments when due. The policy cash value is: - CORRECT ANSWER
$150,000
Accidental Death and Dismemberment insurance, which of the following would not be
considered accidental? - CORRECT ANSWER Employee requires abdominal surgery
after food poisoning in the lunch room
An association of industry specific employers who are joined together in order to qualify
for, or gain premium advantages, in group insurance is: - CORRECT ANSWER MET
Which of the following is a true statement regarding the social security (OASHI)
program? - CORRECT ANSWER The program provides a minimum floor of income,
and is meant to supplement a retiree's own personal program
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which of the
following is a qualifying event? - CORRECT ANSWER Divorce
Which is NOT part of transacting insurance? - CORRECT ANSWER Establishing a list
of clients
Which party has rights in a life insurance policy only after the death of the insured? -
CORRECT ANSWER The beneficiary
Unless the applicant indicates otherwise during the right-to-return period in an individual
annuity, the premium for a variable annuity would be invested only in: - CORRECT
ANSWER Fixed income investments and money market funds
HMO's are involved in all of the following EXCEPT: - CORRECT ANSWER
Emphasizing the use of specialty physicians
A person has a disability policy with the following definition of disability: "the inability to
perform any occupation for which the insured is suited through education, training,
experience or prior economic status." This is an: - CORRECT ANSWER Any
occupation definition and is very restrictive
If the financial loss on a certain group of people occurring over a certain period of time
defines the pricing of a disability policy, it is the pricing principle known as: - CORRECT
ANSWER Frequency
Terminally ill persons would need which of the following? - CORRECT ANSWER
Hospice care
Who has the right to change life insurance policy beneficiaries? - CORRECT ANSWER
The policyholder
