Insurance exam 150 questions with 100% C0rrect Answers.

What do Dread Disease policies cover? - Correct Answer A specific disease or illness Which provision is NOT a requirement in a group life policy? - Correct Answer accidental K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. K purchased which of the following types of policies? - Correct Answer endowment at ge 65 When is the face amount of a Whole Life policy paid? - Correct Answer When the insured dies or at the policy's maturity date, whichever happens first Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - Correct Answer Limitation on pre-existing conditions for up to 12 months Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - Correct Answer *Variable Life (Because of the transfer of investment risk from the insurer to the policyowner, variable insurance products are considered securities contracts as well as insurance contracts.) which of these require an offer, acceptance, and consideration? - Correct Answer contract Which of the following statements is NOT included in the policy face? - Correct Answer exclusions The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is - Correct Answer time limit on certain defenses Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policy owner does not pay the premium when it is due? - Correct Answer *grace period (The grace period is the additional period of time after a premium payment is due that will allow the policy to remain in force in the event of nonpayment.) Which two entities regulate variable annuities? - Correct Answer Department of Financial Services; and Securities Exchange Commission what action should a producer take if the initial premium is NOT submitted with the application? - Correct Answer Forward the application to the insurer without the initial premium On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? - Correct Answer Collect initial premium along with a signed health statement Which of the following is NOT a consequence for placing business with an unauthorized insurer? - Correct Answer First degree misdemeanor Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is - Correct Answer Business Overhead Expense In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and - Correct Answer the initial premium Which of these require an offer, acceptance, and consideration? - Correct Answer contract T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase? - Correct Answer Ten-year endowment According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age - Correct Answer 64 years or older The type of annuity that can be purchased with one monetary deposit is called a(n) - Correct Answer immediate annuity. What kind of premium does a Whole Life policy have? - Correct Answer level Which of the following is NOT considered rebating? - Correct Answer -Sharing commissions with an agent licensed in the same line of business (Sharing commissions with other licensed agents is not considered rebating.) The provision in a health insurance policy that interrupts premiums being paid to the insurer while the insured is disabled is called the - Correct Answer Waiver of Premium T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the period during which the company may dispute a claim's validity is called - Correct Answer Time Limit on Certain Defenses What type of renewability guarantees premium rates and renewability? - Correct Answer noncancellable Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured? - Correct Answer PPO Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - Correct Answer Entire Contract