Life & Health Insurance Exam Prep
QUESTIONS AND ANSWERS
1. A client has bought over a dozen life coverage and annuity contracts over the last 12
months, the usage of cashier's exams to pay the premiums. If this movement is a part of
a cash laundering operation, what stage does it represent? - ANSWER-layering stage:
Money laundering is a technique that actions unlawful money via 3 tiers on its
manner to apparent legitimacy: placement, layering, and integration. The second
level, layering, is carried out by means of the use of cash or cash equivalents to
purchase more than one monetary instruments which could subsequently be
converted into clean money.
2. A organization of folks who comply with seasoned-charge and proportion the losses
suffered with the aid of different contributors is known as a(an) ______________ insurer.
- ANSWER-Reciprocal: A institution of folks that conform to pro-price and
percentage the losses suffered with the aid of other individuals is called a
reciprocal insurer.
3. A typhoon is an example of a(n) - ANSWER-Peril: A storm is an instance of a peril. A
peril is a circumstance that entails risk or chance and is the motive of a loss.
Insurance rules are written to provide financial safety in opposition to losses from
said perils.
4. A policy's effective insurance date starts on - ANSWER-the date of the receipt of a
primary payment or the date of a clinical exam, if required. The date of the receipt
of a primary fee or the date of a medical examination, if required, controls while
the insurance coverage goes into effect. A binding or conditional receipt identifies
this date while the top rate is submitted with the software. If the premium isn't
submitted till the coverage is introduced, the date the applicant pays the primary
premium continues to be the powerful date of coverage.
5. A top class receipt that guarantees insurance for the length after the software is signed
and before the underwriter makes a decision is referred to as a - ANSWER-binding
receipt: A binding receipt ensures temporary coverage for the applicant for the
entire underwriting period. This holds authentic even if the insured is later found
to be uninsurable.
6. ABC Insurance opinions Henry Garrett's utility for insurance and decides to insure Henry
for an quantity that is much less than what Henry applied for. It provides Henry with a
coverage for $100,000 as opposed to the $200,000 he asked. The prison term that
refers to the movement taken via ABC Insurance is __________. -
ANSWER-Counteroffer: ABC Insurance has rejected Henry's offer and made a
counteroffer.
,7. Accidental bodily harm - ANSWER-method the DAMAGE to the body is surprising
and accidental. A coverage that uses the unintended bodily harm provision will
provide more insurance than a policy that uses the accidental way provision.
8. Accidental Death and Dismemberment (AD & D) - ANSWER-Policy will pay specific
advantages to an insured who suffers a loss on a in basic terms unintentional
foundation. Always 2 advantages:
1. Principal Sum
2. Capital Sum
No Payments will ever pay for loss of disease or sickness
9. Accidental method - ANSWER-approach the CAUSE of the twist of fate need to be
surprising and unintentional. Employ the use of "reasonable judgment" on the
part of the insured to determine whether or now not it'd be unintentional and
blanketed by using the policy
10.Activities of Daily Living (ADL) - ANSWER-An insured qualifies for the LTC benefit
through assembly a test for figuring out wishes which involves an man or
woman's lack of ability to independently perform the ADL. Coverage commences
when the insured can't perform at the least of the indexed ADL's .(Walking,
Sitting, Eating Etc)
11.Acute Unit of a Hospital - ANSWER-refers back to the emergency room or different
setting this is designed for quick time period care and/or rehabilitation, so it isn't
covered in LTC.
12.Adverse selection arises from which of the following? - ANSWER-The fact that humans
in poor fitness are more likely to shop for and keep insurance. Adverse choice is
the tendency of people more likely to have a claim to buy and keep coverage.
These human beings are deciding on in opposition to the coverage agency. For
example, a person who's unwell is much more likely to shop for medical insurance
and to maintain the policy in pressure than a healthy individual.
13.Adverse selection may be described as - ANSWER-the fact that humans in negative
health are much more likely to shop for and keep coverage. Adverse choice is
choice towards an insurer. It refers back to the tendency of individuals who are
probable to make a declare based on their situations to shop for and hold
coverage. For instance, a person who is sick is much more likely to shop for
medical insurance and to preserve the policy in pressure than a wholesome
character.
14.An insurance employer that has received a certificates of authority from the country to
sell coverage in that state is called a(an) ___________ insurer. - ANSWER-Admitted:
An insurance company that has obtained a certificate of authority from the
country to sell coverage in that kingdom is called a(an) admitted insurer. Agents
who, within a given country, promote coverage for a non-admitted insurance
corporation face excessive consequences.
15.An insurance product characterised via small insurance amounts, with charges paid on a
weekly or month-to-month basis, and a dying advantage but no residing blessings, is
referred to as a(n) _________ coverage. - ANSWER-commercial insurance: An
industrial insurance coverage offers person insurance in small amounts typically
, around $1,000 to $2,000, with premiums paid frequently. Since little coins value
accumulates, these guidelines do no longer offer residing benefits.
16.An insurance product characterized by using entire existence insurance as long as the
premiums are paid in any greenback quantity. It gives each a demise advantage and
dwelling blessings. It isn't regulated with the aid of FINRA. What is this policy referred to
as? - ANSWER-Permanent: Permanent coverage lasts for the entire lifestyles of
the insured. It offers each a dying advantage and residing advantages.
17.An insurer receives a "B" score from a rating business enterprise. Based on that score,
what is its capability to fulfill its agreement duties? - ANSWER-speculative underneath
stressful situations: If an insurer receives a "B" score, then the rating enterprise
sees its ability to honor its insurance duties underneath disturbing instances as
speculative.
18.Any Occupation - ANSWER-Insured is qualified by motive of training, schooling or
enjoy, is less liberal and may be used while the coverage gives for Total and
Partial Disability coverage. Most policies are any profession because it's far easier
to justify the "any occupation" definition when agreeing to difficulty a policy
19.Based on the definition of a legal settlement, which of the subsequent statements
represents a proposal? - ANSWER-an utility for insurance supplied via the applicant
with the first premium. An utility for coverage supplied by means of the applicant
with the primary top rate constitutes a criminal provide.
20.Basic Medical Expense guidelines - ANSWER-Provide coverage for Hospital,
Surgical and Physicians Medical Expense.
-Purchased as a individual or group coverage.
-offer first greenback coverage (no deductibles).
-limited advantage periods and low insurance limits.
21.Because actuaries clearly do not know the mortality while determining the gross top rate
for the future of a life coverage policy, they generally - ANSWER-deliberately
underestimate predicted future income and overestimate predicted future
mortality and prices. Actuaries absolutely don't know the mortality when
determining the gross top class for the destiny of a life insurance coverage. So,
they deliberately underestimate expected future profits and overestimate
anticipated future mortality and costs. This affords a margin of financial protection
that ensures benefits bills due 100 years within the future will be paid.
22.Benefit Amount - ANSWER-Payable is often a particular quantity consistent with
day, including $50 to $200 according to day, and some rules pay the real fee
incurred in keeping with day. Most LTC rules are guaranteed renewable, so
insurers have the right to increase the charges on a category or institution basis.
23.Benefit Period - ANSWER-Range from a six month period to rules that provide
insurance to age sixty five. Disability bills cannot cross past age 65 because the
purpose of Disability is to update misplaced earnings, and at age sixty five you're
presumed to be retired.
24.Benefit Schedule - ANSWER--Specifically states what is blanketed inside the plan
and for a way an awful lot. The insurance is situation to a maximum quantity or
number of days.
QUESTIONS AND ANSWERS
1. A client has bought over a dozen life coverage and annuity contracts over the last 12
months, the usage of cashier's exams to pay the premiums. If this movement is a part of
a cash laundering operation, what stage does it represent? - ANSWER-layering stage:
Money laundering is a technique that actions unlawful money via 3 tiers on its
manner to apparent legitimacy: placement, layering, and integration. The second
level, layering, is carried out by means of the use of cash or cash equivalents to
purchase more than one monetary instruments which could subsequently be
converted into clean money.
2. A organization of folks who comply with seasoned-charge and proportion the losses
suffered with the aid of different contributors is known as a(an) ______________ insurer.
- ANSWER-Reciprocal: A institution of folks that conform to pro-price and
percentage the losses suffered with the aid of other individuals is called a
reciprocal insurer.
3. A typhoon is an example of a(n) - ANSWER-Peril: A storm is an instance of a peril. A
peril is a circumstance that entails risk or chance and is the motive of a loss.
Insurance rules are written to provide financial safety in opposition to losses from
said perils.
4. A policy's effective insurance date starts on - ANSWER-the date of the receipt of a
primary payment or the date of a clinical exam, if required. The date of the receipt
of a primary fee or the date of a medical examination, if required, controls while
the insurance coverage goes into effect. A binding or conditional receipt identifies
this date while the top rate is submitted with the software. If the premium isn't
submitted till the coverage is introduced, the date the applicant pays the primary
premium continues to be the powerful date of coverage.
5. A top class receipt that guarantees insurance for the length after the software is signed
and before the underwriter makes a decision is referred to as a - ANSWER-binding
receipt: A binding receipt ensures temporary coverage for the applicant for the
entire underwriting period. This holds authentic even if the insured is later found
to be uninsurable.
6. ABC Insurance opinions Henry Garrett's utility for insurance and decides to insure Henry
for an quantity that is much less than what Henry applied for. It provides Henry with a
coverage for $100,000 as opposed to the $200,000 he asked. The prison term that
refers to the movement taken via ABC Insurance is __________. -
ANSWER-Counteroffer: ABC Insurance has rejected Henry's offer and made a
counteroffer.
,7. Accidental bodily harm - ANSWER-method the DAMAGE to the body is surprising
and accidental. A coverage that uses the unintended bodily harm provision will
provide more insurance than a policy that uses the accidental way provision.
8. Accidental Death and Dismemberment (AD & D) - ANSWER-Policy will pay specific
advantages to an insured who suffers a loss on a in basic terms unintentional
foundation. Always 2 advantages:
1. Principal Sum
2. Capital Sum
No Payments will ever pay for loss of disease or sickness
9. Accidental method - ANSWER-approach the CAUSE of the twist of fate need to be
surprising and unintentional. Employ the use of "reasonable judgment" on the
part of the insured to determine whether or now not it'd be unintentional and
blanketed by using the policy
10.Activities of Daily Living (ADL) - ANSWER-An insured qualifies for the LTC benefit
through assembly a test for figuring out wishes which involves an man or
woman's lack of ability to independently perform the ADL. Coverage commences
when the insured can't perform at the least of the indexed ADL's .(Walking,
Sitting, Eating Etc)
11.Acute Unit of a Hospital - ANSWER-refers back to the emergency room or different
setting this is designed for quick time period care and/or rehabilitation, so it isn't
covered in LTC.
12.Adverse selection arises from which of the following? - ANSWER-The fact that humans
in poor fitness are more likely to shop for and keep insurance. Adverse choice is
the tendency of people more likely to have a claim to buy and keep coverage.
These human beings are deciding on in opposition to the coverage agency. For
example, a person who's unwell is much more likely to shop for medical insurance
and to maintain the policy in pressure than a healthy individual.
13.Adverse selection may be described as - ANSWER-the fact that humans in negative
health are much more likely to shop for and keep coverage. Adverse choice is
choice towards an insurer. It refers back to the tendency of individuals who are
probable to make a declare based on their situations to shop for and hold
coverage. For instance, a person who is sick is much more likely to shop for
medical insurance and to preserve the policy in pressure than a wholesome
character.
14.An insurance employer that has received a certificates of authority from the country to
sell coverage in that state is called a(an) ___________ insurer. - ANSWER-Admitted:
An insurance company that has obtained a certificate of authority from the
country to sell coverage in that kingdom is called a(an) admitted insurer. Agents
who, within a given country, promote coverage for a non-admitted insurance
corporation face excessive consequences.
15.An insurance product characterised via small insurance amounts, with charges paid on a
weekly or month-to-month basis, and a dying advantage but no residing blessings, is
referred to as a(n) _________ coverage. - ANSWER-commercial insurance: An
industrial insurance coverage offers person insurance in small amounts typically
, around $1,000 to $2,000, with premiums paid frequently. Since little coins value
accumulates, these guidelines do no longer offer residing benefits.
16.An insurance product characterized by using entire existence insurance as long as the
premiums are paid in any greenback quantity. It gives each a demise advantage and
dwelling blessings. It isn't regulated with the aid of FINRA. What is this policy referred to
as? - ANSWER-Permanent: Permanent coverage lasts for the entire lifestyles of
the insured. It offers each a dying advantage and residing advantages.
17.An insurer receives a "B" score from a rating business enterprise. Based on that score,
what is its capability to fulfill its agreement duties? - ANSWER-speculative underneath
stressful situations: If an insurer receives a "B" score, then the rating enterprise
sees its ability to honor its insurance duties underneath disturbing instances as
speculative.
18.Any Occupation - ANSWER-Insured is qualified by motive of training, schooling or
enjoy, is less liberal and may be used while the coverage gives for Total and
Partial Disability coverage. Most policies are any profession because it's far easier
to justify the "any occupation" definition when agreeing to difficulty a policy
19.Based on the definition of a legal settlement, which of the subsequent statements
represents a proposal? - ANSWER-an utility for insurance supplied via the applicant
with the first premium. An utility for coverage supplied by means of the applicant
with the primary top rate constitutes a criminal provide.
20.Basic Medical Expense guidelines - ANSWER-Provide coverage for Hospital,
Surgical and Physicians Medical Expense.
-Purchased as a individual or group coverage.
-offer first greenback coverage (no deductibles).
-limited advantage periods and low insurance limits.
21.Because actuaries clearly do not know the mortality while determining the gross top rate
for the future of a life coverage policy, they generally - ANSWER-deliberately
underestimate predicted future income and overestimate predicted future
mortality and prices. Actuaries absolutely don't know the mortality when
determining the gross top class for the destiny of a life insurance coverage. So,
they deliberately underestimate expected future profits and overestimate
anticipated future mortality and costs. This affords a margin of financial protection
that ensures benefits bills due 100 years within the future will be paid.
22.Benefit Amount - ANSWER-Payable is often a particular quantity consistent with
day, including $50 to $200 according to day, and some rules pay the real fee
incurred in keeping with day. Most LTC rules are guaranteed renewable, so
insurers have the right to increase the charges on a category or institution basis.
23.Benefit Period - ANSWER-Range from a six month period to rules that provide
insurance to age sixty five. Disability bills cannot cross past age 65 because the
purpose of Disability is to update misplaced earnings, and at age sixty five you're
presumed to be retired.
24.Benefit Schedule - ANSWER--Specifically states what is blanketed inside the plan
and for a way an awful lot. The insurance is situation to a maximum quantity or
number of days.
