INSURANCE FINAL EXAM (first 50) INSURANCE FINAL EXAM (first 50) 2/18/2026
the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the
banking and insurance commissioner. because the company is in weak financial condition, the
treasurer instructs the company claims manager to delay recording several large claims settlements.
in this situation, the treasurer may be found guilty of which of the following?
-making false financial statements
-commingling funds
-committing an unfair claim practice
-practicing unfair discrimination
making false statements
advertising regulations exist in order to?
demonstrate full and truthful disclosures to the public
Page 1 INSURANCE FINAL EXAM (first 50).pdf
,INSURANCE FINAL EXAM (first 50) INSURANCE FINAL EXAM (first 50) 2/18/2026
james is the insured on a life insurance policy where his age was misstated on the application. which
of the following is CORRECT regarding the death benefit amount?
-original face amount will be paid to beneficiary
-policy will be voided with no death benefits paid
-death benefit paid will be what the premium would have purchased at the correct age
-amount of premiums paid will be returned with interest
the death benefit paid will be what the premium would have been purchased at the correct age
a 10% excise tax is normally applied to an early withdrawal from an IRA. according to HIPAA, this tax
will not be applied if the withdrawal is used for medical expenses that exceed ___ of the individual's
adjusted gross income
-5%
-6.5%
-7.5%
-8%
7.5%
Page 2 INSURANCE FINAL EXAM (first 50).pdf
, INSURANCE FINAL EXAM (first 50) INSURANCE FINAL EXAM (first 50) 2/18/2026
an insurance company needs to obtain personal information from a third party concerning an
applicant. which law do all insurers and their producers need to comply with?
fair credit reporting act
pat owns a 20-pay life policy with a paid-up dividend option. which of the following statements is
true?
-the policy may be paid up early by using accumulated cash values
-the policy may be paid up early by using policy dividends
-the policy's premiums will increase after 20 years
-the policy's cash values steadily decrease after 20 years
the policy may be paid up early by using policy dividends
the reinstatement provision in a health insurance policy is...
mandatory
Page 3 INSURANCE FINAL EXAM (first 50).pdf
the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the
banking and insurance commissioner. because the company is in weak financial condition, the
treasurer instructs the company claims manager to delay recording several large claims settlements.
in this situation, the treasurer may be found guilty of which of the following?
-making false financial statements
-commingling funds
-committing an unfair claim practice
-practicing unfair discrimination
making false statements
advertising regulations exist in order to?
demonstrate full and truthful disclosures to the public
Page 1 INSURANCE FINAL EXAM (first 50).pdf
,INSURANCE FINAL EXAM (first 50) INSURANCE FINAL EXAM (first 50) 2/18/2026
james is the insured on a life insurance policy where his age was misstated on the application. which
of the following is CORRECT regarding the death benefit amount?
-original face amount will be paid to beneficiary
-policy will be voided with no death benefits paid
-death benefit paid will be what the premium would have purchased at the correct age
-amount of premiums paid will be returned with interest
the death benefit paid will be what the premium would have been purchased at the correct age
a 10% excise tax is normally applied to an early withdrawal from an IRA. according to HIPAA, this tax
will not be applied if the withdrawal is used for medical expenses that exceed ___ of the individual's
adjusted gross income
-5%
-6.5%
-7.5%
-8%
7.5%
Page 2 INSURANCE FINAL EXAM (first 50).pdf
, INSURANCE FINAL EXAM (first 50) INSURANCE FINAL EXAM (first 50) 2/18/2026
an insurance company needs to obtain personal information from a third party concerning an
applicant. which law do all insurers and their producers need to comply with?
fair credit reporting act
pat owns a 20-pay life policy with a paid-up dividend option. which of the following statements is
true?
-the policy may be paid up early by using accumulated cash values
-the policy may be paid up early by using policy dividends
-the policy's premiums will increase after 20 years
-the policy's cash values steadily decrease after 20 years
the policy may be paid up early by using policy dividends
the reinstatement provision in a health insurance policy is...
mandatory
Page 3 INSURANCE FINAL EXAM (first 50).pdf
