comprehensive exam health and life
insurance Exam test Questions and
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Assignment is - CORRECT ANSWERS The transfer of all or part of the ownership in a life
insurance policy
Supplementary Medical - CORRECT ANSWERS Utilizes a Corridor Deductible after Basic Medical
Expense Coverage Benefits have been exhausted and before Major Medical Benefits begin
Entity Plan - CORRECT ANSWERS Buy sell agreements that provide a business to purchase a life
insurance policy on each business partner
Which of the following regarding Medical Part B is true? - CORRECT ANSWERS Generally pays
80% of covered physicians, surgeons, and outpatient hospital expenses, with a monthly premium and
annual deductible.
An Insured forgets to pay his insurance premium. Instead of the policy lapsing, the premium is paid by
the company. This would suggest that a _____. policy was purchased - CORRECT ANSWERS
Whole Life. (term has no cash value)
The owner of a Variable Life Policy may allocate the premium into a sub account which is owned by the
insurer, this sub account is part of what is also known as the - CORRECT ANSWERS Seperate
Account
All of the following are correct statements regarding an FSA, except - CORRECT ANSWERS Can
only be established if the employer also establishes an HSA
, The replacing insurance company must do all of the following regarding a replacement of an existing
policy, except - CORRECT ANSWERS Sending the existing insurer a copy of the Notice Regarding
Replacement of Life Insurance within 10 days after policy deliver.
Replacing insurer must send the Notice to the existing insurer immediately upon receipt at it's home or
regional office
On a variable universal life policy what is the difference between cash value and the cash surrender
values? - CORRECT ANSWERS The surrender charge.
difference between cash values and cash surrender values is the surrender charge which provides an
incentive for the policyowner to maintain the policy and allows for the insurer to recoup any policy
issuance costs.
And insured has 175,000 permanent life insurance policy and is having difficulty keeping up with
premium payments. Which nonforfeiture option would allow him to forego the premium's and retain
the same face amount until the cash surrender exhausted? - CORRECT ANSWERS Extend Term
Cash Surrender is a Nonforfeiture Option that terminates the policy. Extend Term continues the same
coverage until the cash value from which premium is paid is exhausted
A 22 year old applicant for life insurance has a limited budget for premiums. Which of the following
policies would provide for the highest face value, for the lowest premium? - CORRECT ANSWERS
Annually Renewable Term
Term insurance does not accumulate cash. The 'pure premium's purchases the highest amount of
insurance compared to the other forms of life insurance. The shortest term period offers the lowest cost
per $1
insurance Exam test Questions and
Verified Answers, 100%- Score Guarantee
Pass (Latest 2025/2026 rated A+
Assignment is - CORRECT ANSWERS The transfer of all or part of the ownership in a life
insurance policy
Supplementary Medical - CORRECT ANSWERS Utilizes a Corridor Deductible after Basic Medical
Expense Coverage Benefits have been exhausted and before Major Medical Benefits begin
Entity Plan - CORRECT ANSWERS Buy sell agreements that provide a business to purchase a life
insurance policy on each business partner
Which of the following regarding Medical Part B is true? - CORRECT ANSWERS Generally pays
80% of covered physicians, surgeons, and outpatient hospital expenses, with a monthly premium and
annual deductible.
An Insured forgets to pay his insurance premium. Instead of the policy lapsing, the premium is paid by
the company. This would suggest that a _____. policy was purchased - CORRECT ANSWERS
Whole Life. (term has no cash value)
The owner of a Variable Life Policy may allocate the premium into a sub account which is owned by the
insurer, this sub account is part of what is also known as the - CORRECT ANSWERS Seperate
Account
All of the following are correct statements regarding an FSA, except - CORRECT ANSWERS Can
only be established if the employer also establishes an HSA
, The replacing insurance company must do all of the following regarding a replacement of an existing
policy, except - CORRECT ANSWERS Sending the existing insurer a copy of the Notice Regarding
Replacement of Life Insurance within 10 days after policy deliver.
Replacing insurer must send the Notice to the existing insurer immediately upon receipt at it's home or
regional office
On a variable universal life policy what is the difference between cash value and the cash surrender
values? - CORRECT ANSWERS The surrender charge.
difference between cash values and cash surrender values is the surrender charge which provides an
incentive for the policyowner to maintain the policy and allows for the insurer to recoup any policy
issuance costs.
And insured has 175,000 permanent life insurance policy and is having difficulty keeping up with
premium payments. Which nonforfeiture option would allow him to forego the premium's and retain
the same face amount until the cash surrender exhausted? - CORRECT ANSWERS Extend Term
Cash Surrender is a Nonforfeiture Option that terminates the policy. Extend Term continues the same
coverage until the cash value from which premium is paid is exhausted
A 22 year old applicant for life insurance has a limited budget for premiums. Which of the following
policies would provide for the highest face value, for the lowest premium? - CORRECT ANSWERS
Annually Renewable Term
Term insurance does not accumulate cash. The 'pure premium's purchases the highest amount of
insurance compared to the other forms of life insurance. The shortest term period offers the lowest cost
per $1
