LIFE ACCIDENT AND HEALTH INSURANCE EXAM
2024 ACTUAL EXAM COMPLETE QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
What is the tax consequence of amounts received from a Traditional IRA after the
money was left in the tax-deferred accounts by the beneficiary? - -a) Capital gains
tax on distributions and no penalty
b) Capital gains tax on distributions plus 10% penalty
c) Income tax on distributions and no penalty
d) Income tax on distributions plus 10% penalty
c) - ans -c)
Which of the following is true regarding health insurance underwriting for a
person with HIV? - -a) The person may not be declined for medical coverage solely
based on HIV status
b) A person may be declined for HIV but not AIDS
c) The person may be declined
d) The person may only be declined if he/she has symptoms
a) - ans -a)
Guarantee of insurability option in long-term care policies allows the insured to -
-a) Replace the existing LTC policy based on the original underwriting
b) Secure the policy's non-forfeiture values regardless of the insured's age or
health status
c) Increase benefit levels without providing proof of insurability
d) Add dependents to the plan without providing proof of their insurability
c) - ans -c)
A prospective insured receives a conditional receipt but dies before the policy is
issued. The insurer will - -a) Pay the policy proceeds up to an established limit
b) Not pay the policy proceeds under any circumstances
,c) Automatically pay the policy proceeds
d) Pay the policy proceeds only if it would have issued the policy
d) - ans -d)
What provision can reduce the disability benefit based upon the insureds current
income? - -a) Pro rata provision
b) Rehabilitation benefit
c) Relation of earnings to insurance
d) Waiver of monthly premium
c) - ans -c)
An applicant is considered to be high-risk but not so much that the insurer wants
to deny coverage. Which of the following is NOT true? - -a) The insurer will issue
conditional coverage
b) The insurer can increase the premium
c) The insurer can add exclusions to the policy
d) The insurer can rate-up the policy
a) - ans -a)
As it pertains to group health insurance, COBRA stipulates that - -a) Retiring
employees must be allowed to convert their group coverage to individual policies
b) Terminated employees must be allowed to convert their group coverage to
individual policies
c) Group coverage must be extended for terminated employees up to a certain
period of time at the employers expense
d) Group coverage must be extended for terminated employees up to a certain
period of time at the former employees expense
d) - ans -d)
In comparison to consumer reports, which of the following describes a unique
characteristic of investigative consumer reports? - -a) The customer has no
knowledge of this action
b) The customer's associates, friends, and neighbors provide the reports data
, c) They provide additional information from an outside source about a particular
risk
d) They provide information about a customer's character and reputation
b) - ans -b)
Premium payments for personally-owned disability income policies are - -a) Not
tax deductible
b) Eligible for tax credits
c) Tax deductible
d) Tax deductible to the extent that they exceed 10% of the adjusted gross
income of those itemizing deductions
a) - ans -a)
What is the advantage of having a qualified annuity? - -a) Receiving a lump-sum
settlement tax free
b) Higher dividends
c) Favorable tax treatment
d) No filling with the IRS
c) - ans -c)
If an insurance company makes a statement that its policies are guaranteed by
the existence of the Insurance Guaranty Association -a) A misrepresentation
b) An accurate statement
c) A legal representation of the Association
d) An unfair trade practice
d) - ans -d)
The Federal Fair Credit Reporting Act -a) Prevents money laundering
b) Regulates consumer reports
c) Protects customer privacy
d) Regulates telemarketing
b) - ans -b)
2024 ACTUAL EXAM COMPLETE QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
What is the tax consequence of amounts received from a Traditional IRA after the
money was left in the tax-deferred accounts by the beneficiary? - -a) Capital gains
tax on distributions and no penalty
b) Capital gains tax on distributions plus 10% penalty
c) Income tax on distributions and no penalty
d) Income tax on distributions plus 10% penalty
c) - ans -c)
Which of the following is true regarding health insurance underwriting for a
person with HIV? - -a) The person may not be declined for medical coverage solely
based on HIV status
b) A person may be declined for HIV but not AIDS
c) The person may be declined
d) The person may only be declined if he/she has symptoms
a) - ans -a)
Guarantee of insurability option in long-term care policies allows the insured to -
-a) Replace the existing LTC policy based on the original underwriting
b) Secure the policy's non-forfeiture values regardless of the insured's age or
health status
c) Increase benefit levels without providing proof of insurability
d) Add dependents to the plan without providing proof of their insurability
c) - ans -c)
A prospective insured receives a conditional receipt but dies before the policy is
issued. The insurer will - -a) Pay the policy proceeds up to an established limit
b) Not pay the policy proceeds under any circumstances
,c) Automatically pay the policy proceeds
d) Pay the policy proceeds only if it would have issued the policy
d) - ans -d)
What provision can reduce the disability benefit based upon the insureds current
income? - -a) Pro rata provision
b) Rehabilitation benefit
c) Relation of earnings to insurance
d) Waiver of monthly premium
c) - ans -c)
An applicant is considered to be high-risk but not so much that the insurer wants
to deny coverage. Which of the following is NOT true? - -a) The insurer will issue
conditional coverage
b) The insurer can increase the premium
c) The insurer can add exclusions to the policy
d) The insurer can rate-up the policy
a) - ans -a)
As it pertains to group health insurance, COBRA stipulates that - -a) Retiring
employees must be allowed to convert their group coverage to individual policies
b) Terminated employees must be allowed to convert their group coverage to
individual policies
c) Group coverage must be extended for terminated employees up to a certain
period of time at the employers expense
d) Group coverage must be extended for terminated employees up to a certain
period of time at the former employees expense
d) - ans -d)
In comparison to consumer reports, which of the following describes a unique
characteristic of investigative consumer reports? - -a) The customer has no
knowledge of this action
b) The customer's associates, friends, and neighbors provide the reports data
, c) They provide additional information from an outside source about a particular
risk
d) They provide information about a customer's character and reputation
b) - ans -b)
Premium payments for personally-owned disability income policies are - -a) Not
tax deductible
b) Eligible for tax credits
c) Tax deductible
d) Tax deductible to the extent that they exceed 10% of the adjusted gross
income of those itemizing deductions
a) - ans -a)
What is the advantage of having a qualified annuity? - -a) Receiving a lump-sum
settlement tax free
b) Higher dividends
c) Favorable tax treatment
d) No filling with the IRS
c) - ans -c)
If an insurance company makes a statement that its policies are guaranteed by
the existence of the Insurance Guaranty Association -a) A misrepresentation
b) An accurate statement
c) A legal representation of the Association
d) An unfair trade practice
d) - ans -d)
The Federal Fair Credit Reporting Act -a) Prevents money laundering
b) Regulates consumer reports
c) Protects customer privacy
d) Regulates telemarketing
b) - ans -b)
