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Life and health insurance exam Questions
with Detailed Verified Answers (100%
Correct Answers) /Already Graded A+
The primary components in premium calculations include each of the following
EXCEPT:
Ans: Mortality or morbidity risk.
In general, advertising would include each of the following EXCEPT:
Ans: Communication of administrative matters.
Legally, who does an insurance agent (producer) represent?
Ans: only the company
Which of these is NOT a feature of Health Savings Accounts?
Ans: A.They are funded by the employee, employer, or both.
B. The accounts are used to offset high deductibles.
***C. The accounts earn no interest. ***
D. The accounts roll over at year-end and are not forfeited.
A man applied for a Long Term Care (LTC) policy. Three months earlier he was
diagnosed with diabetes. Can the LTC policy exclude future health problems
linked with diabetes?
Ans: B. Yes, for 6 months.
Under the typical Coordination of Benefits Clause in Group Health Insurance,
how is primary coverage determined?
Ans: D. The employee's plan is primary and the other may be excess.
This rider can be attached to a permanent life insurance policy to add more
coverage for a limited time.
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Ans: term rider
When does the 10-day Free Look begin?
Ans: D. Date of policy delivery
The Accidental Death Rider pays double the face amount (or another multiple of
the face) if death is caused by what?
Ans: A. Accidental cause and within 90 days of the accident.
When the owner of a life insurance policy transfers ownership to a third party in
return for payment of a large percentage of the death benefit, this is known as
Ans: viatical settlement agreement
Which of the following is NOT a Workers Compensation benefit?
Ans: Medical benefits
B. Disability benefits
C. Rehabilitation benefits
***D. Extra income benefits***
The legal doctrine that prevents one from exercising a right of privilege is called
Ans: estoppel
A defined contribution plan
Ans: promises a specified payment to the plan by the employer.
If an insured under a Major Medical insurance policy with a $200 deductible
and an 80% coinsurance clause incurred the following covered expenses:
Hospital room and board $2,000; Surgeon's fee $1,500. How much would the
policy pay?
Ans: . $2,640 [2,000 + 1,500 = 3,500 - 200 = 3,300 x .80]
Which of the following riders could decrease the amount of the policy death
benefit if utilized?
Ans: Which of the following riders could decrease the amount of the policy death benefit if
utilized?
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The kind of life insurance that acquires no cash value is
Ans: term life.
Alabama law regulates Life insurance benefits with respect to minors. Which
statement is FALSE?
Ans: A. Minors can receive benefits without restriction
Paid-up Additions act as a default if the Policyholder doesn't indicate an option.
Paid-up Additions are:
Ans: A. Single payment premiums which purchase additional amounts of insurance which add
to the face amount.
If the insurance company accepts a special class risk
Ans: the premium will be higher than for a normal risk.
If you qualify for COBRA, coverage under the group health plan
Ans: A. may be extended for up to 18 months for you and your dependents.
B. may be extended for a total of 29 months if on the date coverage is terminated your or
any of your dependents meet the qualifications for Social Security Disability.
C. may be extended for your dependents for 36 months when they marry or reach the limiting
age.
***D. all of the above.***
A beneficiary is always which of the following?
Ans: The person named to receive the sum specified in a life insurance contract when the
insured dies.
Each of the following statements is true about Disclosures EXCEPT:
Ans: The company must keep a copy of the Buyer?s Guide and Policy Summary for at least 5
years.
Dividend options are defined as ways in which the policyowner can:
Ans: use or collect policy dividends.
According to Required Health Policy Provisions, the insured is prevented from
filing suit against the insurer for at least
Click here for more: Preppass - Stuvia
Life and health insurance exam Questions
with Detailed Verified Answers (100%
Correct Answers) /Already Graded A+
The primary components in premium calculations include each of the following
EXCEPT:
Ans: Mortality or morbidity risk.
In general, advertising would include each of the following EXCEPT:
Ans: Communication of administrative matters.
Legally, who does an insurance agent (producer) represent?
Ans: only the company
Which of these is NOT a feature of Health Savings Accounts?
Ans: A.They are funded by the employee, employer, or both.
B. The accounts are used to offset high deductibles.
***C. The accounts earn no interest. ***
D. The accounts roll over at year-end and are not forfeited.
A man applied for a Long Term Care (LTC) policy. Three months earlier he was
diagnosed with diabetes. Can the LTC policy exclude future health problems
linked with diabetes?
Ans: B. Yes, for 6 months.
Under the typical Coordination of Benefits Clause in Group Health Insurance,
how is primary coverage determined?
Ans: D. The employee's plan is primary and the other may be excess.
This rider can be attached to a permanent life insurance policy to add more
coverage for a limited time.
,Page | 2
Click here for more: Preppass - Stuvia
Ans: term rider
When does the 10-day Free Look begin?
Ans: D. Date of policy delivery
The Accidental Death Rider pays double the face amount (or another multiple of
the face) if death is caused by what?
Ans: A. Accidental cause and within 90 days of the accident.
When the owner of a life insurance policy transfers ownership to a third party in
return for payment of a large percentage of the death benefit, this is known as
Ans: viatical settlement agreement
Which of the following is NOT a Workers Compensation benefit?
Ans: Medical benefits
B. Disability benefits
C. Rehabilitation benefits
***D. Extra income benefits***
The legal doctrine that prevents one from exercising a right of privilege is called
Ans: estoppel
A defined contribution plan
Ans: promises a specified payment to the plan by the employer.
If an insured under a Major Medical insurance policy with a $200 deductible
and an 80% coinsurance clause incurred the following covered expenses:
Hospital room and board $2,000; Surgeon's fee $1,500. How much would the
policy pay?
Ans: . $2,640 [2,000 + 1,500 = 3,500 - 200 = 3,300 x .80]
Which of the following riders could decrease the amount of the policy death
benefit if utilized?
Ans: Which of the following riders could decrease the amount of the policy death benefit if
utilized?
, Page | 3
Click here for more: Preppass - Stuvia
The kind of life insurance that acquires no cash value is
Ans: term life.
Alabama law regulates Life insurance benefits with respect to minors. Which
statement is FALSE?
Ans: A. Minors can receive benefits without restriction
Paid-up Additions act as a default if the Policyholder doesn't indicate an option.
Paid-up Additions are:
Ans: A. Single payment premiums which purchase additional amounts of insurance which add
to the face amount.
If the insurance company accepts a special class risk
Ans: the premium will be higher than for a normal risk.
If you qualify for COBRA, coverage under the group health plan
Ans: A. may be extended for up to 18 months for you and your dependents.
B. may be extended for a total of 29 months if on the date coverage is terminated your or
any of your dependents meet the qualifications for Social Security Disability.
C. may be extended for your dependents for 36 months when they marry or reach the limiting
age.
***D. all of the above.***
A beneficiary is always which of the following?
Ans: The person named to receive the sum specified in a life insurance contract when the
insured dies.
Each of the following statements is true about Disclosures EXCEPT:
Ans: The company must keep a copy of the Buyer?s Guide and Policy Summary for at least 5
years.
Dividend options are defined as ways in which the policyowner can:
Ans: use or collect policy dividends.
According to Required Health Policy Provisions, the insured is prevented from
filing suit against the insurer for at least
