ACCIDENT AND HEALTH INSURANCE ACTUAL FINAL
PAPER 2025/2026 QUESTIONS AND SOLUTION RATED A+
✔✔All of the following are classifications of risk EXCEPT - ✔✔non-nicotine
✔✔What is the purpose of Stranger-originated life insurance (STOLI)? - ✔✔the policy is
originated primarily or solely for the purpose of resale
✔✔If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT - ✔✔the treatment procedures that are
covered by the policy
✔✔All of the following are required signatures on a life insurance application EXCEPT -
✔✔the minor in a juvenile policy
✔✔What is a MIB report? - ✔✔medical information on an applicant for assessing life or
health inruance risk
✔✔What specific new procedures does the USA Patriot Act require of insurance
companies? - ✔✔Establish an anti-money laungering program
✔✔What procedure is used by an insurer to protect itself in the event a dispute arises
and the applicant and the agent do not recall the changes that were made in a
completed application? - ✔✔The applicant and possibly the agent initial any changes
made
✔✔Which of the following occurs immideately after the application is submitted and the
initial premium paid? - ✔✔the underwriting process begins
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔binding reciept
✔✔When does insurable interest come into play in a life insurance policy? - ✔✔when
the applicant for the policy is not the insured
✔✔A consumer report used to determine eligebility for insurance may include all of the
following EXCEPT - ✔✔medical underwriting exam
✔✔Why are insurance policies considered conditional contracts? - ✔✔Certian
conditions need to be met to make the contract legally enforcable
✔✔All of the following are TRUE regarding incomplete applications EXCEPT: - ✔✔the
incomplete application can be accepted with the missing information added later.
, ✔✔Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ✔✔Fair Credit Reporting Act
✔✔How do warranties differ from representations? - ✔✔a warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pays the remaining up to coverage amount.
✔✔Why is rehabilitation considered worthy of federal help under workers'
compensation? - ✔✔it reduces insurance losses and helps regain the worker's dignity
✔✔Under which situation must insurable interest exist between the applicant and
insured at the time of application? - ✔✔When a third-party applicant names themselves
beneficiary.
✔✔When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - ✔✔when the taxpayer's medical expenses
exceed 7.5% of adjusted gross income during a taxable year
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔non-occupational injuries
✔✔Why is relying solely on employer group life insurance generally considered
inadequate for most individual's needs? - ✔✔It is financially insufficient to cover end of
life expenses.
✔✔What type of insurance should a company purchase if it wants to insure the life of its
CEO? - ✔✔key person insurance
✔✔Which of the following is characteristic of a nonqualified plan? - ✔✔plan does not
meet federal guidelines for tax benefits
✔✔All of the following are tax qualified retirement pans EXCEPT: - ✔✔Section 529 plan
✔✔For an individual long-term care policy there is an annual dollar limit for tax
deductions that is based on which of the following? - ✔✔age
✔✔Managed care plans increase efficency by all of the following means EXCEPT -
✔✔transferring the management of costs to the insureds
PAPER 2025/2026 QUESTIONS AND SOLUTION RATED A+
✔✔All of the following are classifications of risk EXCEPT - ✔✔non-nicotine
✔✔What is the purpose of Stranger-originated life insurance (STOLI)? - ✔✔the policy is
originated primarily or solely for the purpose of resale
✔✔If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT - ✔✔the treatment procedures that are
covered by the policy
✔✔All of the following are required signatures on a life insurance application EXCEPT -
✔✔the minor in a juvenile policy
✔✔What is a MIB report? - ✔✔medical information on an applicant for assessing life or
health inruance risk
✔✔What specific new procedures does the USA Patriot Act require of insurance
companies? - ✔✔Establish an anti-money laungering program
✔✔What procedure is used by an insurer to protect itself in the event a dispute arises
and the applicant and the agent do not recall the changes that were made in a
completed application? - ✔✔The applicant and possibly the agent initial any changes
made
✔✔Which of the following occurs immideately after the application is submitted and the
initial premium paid? - ✔✔the underwriting process begins
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔binding reciept
✔✔When does insurable interest come into play in a life insurance policy? - ✔✔when
the applicant for the policy is not the insured
✔✔A consumer report used to determine eligebility for insurance may include all of the
following EXCEPT - ✔✔medical underwriting exam
✔✔Why are insurance policies considered conditional contracts? - ✔✔Certian
conditions need to be met to make the contract legally enforcable
✔✔All of the following are TRUE regarding incomplete applications EXCEPT: - ✔✔the
incomplete application can be accepted with the missing information added later.
, ✔✔Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ✔✔Fair Credit Reporting Act
✔✔How do warranties differ from representations? - ✔✔a warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pays the remaining up to coverage amount.
✔✔Why is rehabilitation considered worthy of federal help under workers'
compensation? - ✔✔it reduces insurance losses and helps regain the worker's dignity
✔✔Under which situation must insurable interest exist between the applicant and
insured at the time of application? - ✔✔When a third-party applicant names themselves
beneficiary.
✔✔When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - ✔✔when the taxpayer's medical expenses
exceed 7.5% of adjusted gross income during a taxable year
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔non-occupational injuries
✔✔Why is relying solely on employer group life insurance generally considered
inadequate for most individual's needs? - ✔✔It is financially insufficient to cover end of
life expenses.
✔✔What type of insurance should a company purchase if it wants to insure the life of its
CEO? - ✔✔key person insurance
✔✔Which of the following is characteristic of a nonqualified plan? - ✔✔plan does not
meet federal guidelines for tax benefits
✔✔All of the following are tax qualified retirement pans EXCEPT: - ✔✔Section 529 plan
✔✔For an individual long-term care policy there is an annual dollar limit for tax
deductions that is based on which of the following? - ✔✔age
✔✔Managed care plans increase efficency by all of the following means EXCEPT -
✔✔transferring the management of costs to the insureds
