SC Accident. Health, and Life Insurance Complete Exam Practice Questions with 100% Correct Answers | Brand New Version

SC Accident. Health, and Life Insurance Complete Exam Practice Questions with 100% Correct Answers | Brand New Version 1. A&H - ANSWER Accident and Health. 2. An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase? - ANSWER Inflation protection 3. Which of these riders will pay a death benefit if the insured's spouse dies? - ANSWER Family term insurance rider 4. Disability income plans which require that the insurer can NEVER change or alter premium rates are usually considered - ANSWER Nonconcellable 5. Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity? - ANSWER Temporary annuity certain 6. When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? - ANSWER Gains 7. Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because - ANSWER the MEC tends to be an investment vehicle 8. A medical provider that accepts Medicare Assignment must - ANSWER accept payment based upon a defined Medicare schedule as payment in full 9. Proof of loss on a health insurance claim must be submitted to an insurer within___ days after the insured's date of loss - ANSWER 90 10. The entire contract includes the actual policy and the - ANSWER application 11. The factor used most often when underwriting a disability income policy is - ANSWER annual earnings 12. David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision? - ANSWER Unpaid provision 13. Which of these is NOT considered to be a purpose of an annuity? - ANSWER Annuities are intended to create an estate 14. Which of the following is NOT a circumstance to which a temporary producer license can be issued? - ANSWER prospective producer who is waiting to take the state licensing examination 15. In what form do disability income policies typically pay benefits? - ANSWER periodic income 16. A renewable Term Life insurance policy allows the policy owner the right to renew the policy - ANSWER without producing proof of insurability 17. Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? - ANSWER Can be converted to permanent coverage without evidence of insurability 18. A producer has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the persecution of this crime? - ANSWER US attorney general 19. Under a group life policy, the insurer will issue an individual _____ to the policy owner for delivery to each person insured. - ANSWER certificate 20. What is the required action to be taken by a South Carolina licensee before operating under an assumed business name? - ANSWER Notify the Director 21. The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid - ANSWER minus indebtedness and without interest 22. If an annuitant dies before the annuity start date - ANSWER the premiums paid plus interest will be given to the beneficiary 23. The purpose of the Coordination of Benefits provision in group accident and health plans is to - ANSWER avoid overpayment of claims 24. The typical long-term care insurance policy is designed to provide a minimum of___ year(s) of coverage - ANSWER 1 25. Decreasing term life insurance is often used to - ANSWER provide coverage for a home mortgage 26. Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? - ANSWER Endowment policy 27. A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - ANSWER fare-paying passenger 28. All _____ policies must be guaranteed renewable. - ANSWER long-term care 29. What type of injury would NOT be covered under a health insurance policy? - ANSWER Work related 30. All of these are common exclusions to a life insurance policy EXCEPT - ANSWER accidental health 31. Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? - ANSWER The amount contributed by the employer 32. A whole life insurance policy accumulates cash value that becomes - ANSWER the policy loan value which the insured may borrow against 33. Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn. - ANSWER income