,Final Exam LIFE and HEALTH EXAM
QUESTIONS AND ANSWERS 100%
CORRECT AND UPDATED!
What does the ownership clause in a life insurance policy state? - ANSWER Who the
policy owner is and what rights the policyowner is entitled to
term insurance - ANSWER Expires at the end of the policy period
Disability policies do NOT normally pay for disabilities arising from which of the
following? - ANSWER war
Every insurance agent/broker MUST maintain all records, books, and documents for
insurance transactions for a period of not less than - ANSWER 5 years
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased
on her life, which of these statements would be true? - ANSWER ABC is the
policyowner, C is the insured, and ABC is the beneficiary
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase? - ANSWER noncancelable
In order to establish a Health Reimbursement Arrangement (HRA), it MUST - ANSWER
be established by the employer
Which of the following requires that an applicant for an individual Health Policy be
notified of an investigation into his personal character, general reputation, and mode of
living? - ANSWER Insurance Information and Privacy Protection Act
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is
INCORRECT? - ANSWER The income from the TSA is received income tax-free
Which of the following organizations would make reimbursement payments directly to
the insured individual for covered medical expenditures? - ANSWER Commercial
insurer
, One of the stated purposes of the Life and Health Insurance Guaranty Association is to
- ANSWER assist in the prevention of insurer insolvencies
An employee requested that the balance of her 401(k) account be sent directly to her in
one lump sum. Upon receipt of the distribution, she immediately has the funds rolled
over into an IRA. What is the tax consequence of the distribution sent to this employee?
- ANSWER Distribution is subject to federal income tax withholding
Upon delivery of a rated life insurance policy, the Producer must obtain each of the
following EXCEPT - ANSWER Correct. Upon delivery of a rated life insurance policy,
the Producer must obtain all of these EXCEPT a "Signed HIPAA disclosure". The
HIPAA disclosure should be taken at the time of sale with the application.
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
ANSWER $20,000 death benefit
If the insured dies before the endowment's maturity, the policy's face value — also
known as the "death benefit" — is paid in a lump sum to any beneficiaries.
When L applies for a Health Insurance Policy, L unintentionally fails to list a previous
visit to a cardiologist. If the insurance company contests the policy, it MUST do so within
2 years - ANSWER from the date of the issue
What is the purpose of the Time of Payment of Claims provision? - ANSWER Prevents
delayed claim payments made by the insurer
S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? - ANSWER Single
Premium.
Immediate Annuities are purchased with a single lump sum payment and will start
providing income payments within the first year, but usually starting 30 days from the
purchase date.
A written agreement to provide a Life Insurance Policy holder immediate cash in
exchange for the sale and transfer of a Life Insurance Policy is a - ANSWER viatical
settlement
In life insurance, the needs approach is used mostly to establish - ANSWER how much
life insurance a client should apply for
QUESTIONS AND ANSWERS 100%
CORRECT AND UPDATED!
What does the ownership clause in a life insurance policy state? - ANSWER Who the
policy owner is and what rights the policyowner is entitled to
term insurance - ANSWER Expires at the end of the policy period
Disability policies do NOT normally pay for disabilities arising from which of the
following? - ANSWER war
Every insurance agent/broker MUST maintain all records, books, and documents for
insurance transactions for a period of not less than - ANSWER 5 years
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased
on her life, which of these statements would be true? - ANSWER ABC is the
policyowner, C is the insured, and ABC is the beneficiary
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase? - ANSWER noncancelable
In order to establish a Health Reimbursement Arrangement (HRA), it MUST - ANSWER
be established by the employer
Which of the following requires that an applicant for an individual Health Policy be
notified of an investigation into his personal character, general reputation, and mode of
living? - ANSWER Insurance Information and Privacy Protection Act
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is
INCORRECT? - ANSWER The income from the TSA is received income tax-free
Which of the following organizations would make reimbursement payments directly to
the insured individual for covered medical expenditures? - ANSWER Commercial
insurer
, One of the stated purposes of the Life and Health Insurance Guaranty Association is to
- ANSWER assist in the prevention of insurer insolvencies
An employee requested that the balance of her 401(k) account be sent directly to her in
one lump sum. Upon receipt of the distribution, she immediately has the funds rolled
over into an IRA. What is the tax consequence of the distribution sent to this employee?
- ANSWER Distribution is subject to federal income tax withholding
Upon delivery of a rated life insurance policy, the Producer must obtain each of the
following EXCEPT - ANSWER Correct. Upon delivery of a rated life insurance policy,
the Producer must obtain all of these EXCEPT a "Signed HIPAA disclosure". The
HIPAA disclosure should be taken at the time of sale with the application.
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
ANSWER $20,000 death benefit
If the insured dies before the endowment's maturity, the policy's face value — also
known as the "death benefit" — is paid in a lump sum to any beneficiaries.
When L applies for a Health Insurance Policy, L unintentionally fails to list a previous
visit to a cardiologist. If the insurance company contests the policy, it MUST do so within
2 years - ANSWER from the date of the issue
What is the purpose of the Time of Payment of Claims provision? - ANSWER Prevents
delayed claim payments made by the insurer
S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? - ANSWER Single
Premium.
Immediate Annuities are purchased with a single lump sum payment and will start
providing income payments within the first year, but usually starting 30 days from the
purchase date.
A written agreement to provide a Life Insurance Policy holder immediate cash in
exchange for the sale and transfer of a Life Insurance Policy is a - ANSWER viatical
settlement
In life insurance, the needs approach is used mostly to establish - ANSWER how much
life insurance a client should apply for
