MS Life and Health Insurance Test exam with correct
| | | | | | | | |
answers
Which |of |these |do |NOT |constitute |policy |delivery? |- |correct |answer |Policy |issued |with |a |rating
Which |of |these |types |of |life |insurance |allows |the |policyowner |to |have |level |premiums |and |to |
also |choose |from |a |selection |of |investment |options? |- |correct |answer |Variable |Life
J, |an |Accidental |Death |and |Dismemberment |(AD&D) |policy |holder, |dies |after |injuries |sustained
|in |an |accident. |J's |age |as |stated |on |the |application |five |years |ago |was |found |to |be |
understated |by |ten |years. |Which |of |the |following |actions |will |the |insurance |company |take? |- |
correct |answer |The |insurer |will |adjust |the |benefit |to |what |the |premiums |paid |would |have |
purchased |at |the |insured's |actual |age
A |life |insurance |policy |which |ensures |that |the |premium |will |be |paid |if |the |insured |becomes |
disabled |has |what |kind |of |rider |attached? |- |correct |answer |Waiver |of |Premium
A |producer |must |report |to |the |Commissioner |of |Insurance |any |administrative |action |or |
criminal |charges |taken |against |the |producer |within |__ |days |of |the |final |disposition |of |the |
matter. |- |correct |answer |30
A |physician |opens |up |a |new |practice |and |qualifies |for |a |$7,000/month |Disability |Income |
policy. |What |rider |would |the |physician |add |if |he |wants |the |ability |to |increase |his |policy |benefit
|as |his |practice |and |income |grow? |- |correct |answer |Guaranteed |Insurability |Option |rider
Which |type |of |policy |is |considered |to |be |overfunded, |as |stated |by |IRS |guidelines? |- |correct |
answer |Modified |Endowment |Contract
How |does |a |typical |Variable |Life |Policy |investment |account |grow? |- |correct |answer |Through |
mutual |funds, |stocks, |bonds
,Which |Federal |law |allows |an |insurer |to |obtain |an |inspection |report |on |a |potential |insured? |- |
correct |answer |Fair |Credit |Reporting |Act
What |is |Medicare? |- |correct |answer |is |a |hospital |and |medical |expense |insurance |program
What |kind |of |premium |does |a |Whole |Life |policy |have? |- |correct |answer |level
T |took |out |a |$50,000 |life |insurance |policy |with |an |Accidental |Death |and |Dismemberment |
rider. |Five |years |later, |T |commits |suicide. |How |much |will |the |insurer |pay? |- |correct |answer |
50,000
Pre-hospitalization |authorization |is |considered |an |example |of: |- |correct |answer |managed |care
Under |a |Renewable |Term |policy, |- |correct |answer |the |renewal |premium |is |calculated |on |the |
basis |of |the |insured's |attained |age
T |and |S |are |named |co-primary |beneficiaries |on |a |$500,000 |Accidental |Death |and |
Dismemberment |policy |insuring |their |father. |Their |mother |was |named |contingent |beneficiary. |
Five |years |later, |S |dies |of |natural |causes |and |the |father |is |killed |in |a |scuba |accident |shortly |
afterwards. |How |much |of |the |death |benefit |will |the |mother |receive? |- |correct |answer |$0
A |provision |in |a |life |insurance |policy |that |pays |the |policyowner |an |amount |that |does |not |
surpass |the |guaranteed |cash |value |is |called |the: |- |correct |answer |Policy |Loan |provision
What |action |can |a |policyowner |take |if |an |application |for |a |bank |loan |requires |collateral? |- |
correct |answer |Assign |policy |ownership |to |the |bank
Which |of |the |following |statements |is |CORRECT |about |the |Life |and |Health |Insurance |Guaranty |
Association? |- |correct |answer |It |is |funded |by |insurance |companies |through |assessments
An |insurance |company |that |replaces |existing |insurance |must |provide |a |copy |of |which |of |the |
following |documents |to |the |existing |insurance |company? |- |correct |answer |A |policy |summary
, P, |age |50, |purchased |an |annuity |that |P |will |fund |with |$500/ |month |for |15 |years. |The |annuity |
will |then |pay |P |retirement |payments |after |the |15 |years. |Which |type |of |annuity |did |P |
purchase? |- |correct |answer |Deferred
A |Family |Income |Policy |is |a |combination |of |Whole |Life |and |- |correct |answer |Decreasing |Term |
insurance
J |purchased |a |Disability |Income |Policy |that |ONLY |J |can |terminate |and |on |which |the |rates |will |
never |increase |above |those |illustrated |in |the |policy. |Which |of |the |following |types |of |policies |
did |J |purchase? |- |correct |answer |Noncancelable
Information |obtained |from |a |phone |conversation |to |the |proposed |insured |can |be |found |in |
which |of |these |reports? |- |correct |answer |Inspection |report
When |must |insurable |interest |exist |for |a |life |insurance |contract |to |be |valid? |- |correct |answer |
Inception |of |the |contract
What |is |the |purpose |of |a |Policy |Summary? |- |correct |answer |It |highlights |the |critical |parts |of |
the |policy |issued
K |failed |to |pay |a |renewal |premium |within |the |time |granted |by |the |insurer. |K |then |sends |in |a |
payment |which |the |insurer |subsequently |accepts. |Which |policy |provision |specifies |that |
coverage |may |be |restored |in |this |situation? |- |correct |answer |Reinstatement
A |42-year-old |executive |wants |to |purchase |life |insurance |that |will |allow |for |increases |or |
decreases |to |coverage |as |his/her |needs |change. |Which |of |the |following |policies |will |best |meet
|this |need? |- |correct |answer |Universal |Life
What |does |the |ownership |clause |in |a |life |insurance |policy |state? |- |correct |answer |Who |the |
policyowner |is |and |what |rights |the |policyowner |is |entitled |to
| | | | | | | | |
answers
Which |of |these |do |NOT |constitute |policy |delivery? |- |correct |answer |Policy |issued |with |a |rating
Which |of |these |types |of |life |insurance |allows |the |policyowner |to |have |level |premiums |and |to |
also |choose |from |a |selection |of |investment |options? |- |correct |answer |Variable |Life
J, |an |Accidental |Death |and |Dismemberment |(AD&D) |policy |holder, |dies |after |injuries |sustained
|in |an |accident. |J's |age |as |stated |on |the |application |five |years |ago |was |found |to |be |
understated |by |ten |years. |Which |of |the |following |actions |will |the |insurance |company |take? |- |
correct |answer |The |insurer |will |adjust |the |benefit |to |what |the |premiums |paid |would |have |
purchased |at |the |insured's |actual |age
A |life |insurance |policy |which |ensures |that |the |premium |will |be |paid |if |the |insured |becomes |
disabled |has |what |kind |of |rider |attached? |- |correct |answer |Waiver |of |Premium
A |producer |must |report |to |the |Commissioner |of |Insurance |any |administrative |action |or |
criminal |charges |taken |against |the |producer |within |__ |days |of |the |final |disposition |of |the |
matter. |- |correct |answer |30
A |physician |opens |up |a |new |practice |and |qualifies |for |a |$7,000/month |Disability |Income |
policy. |What |rider |would |the |physician |add |if |he |wants |the |ability |to |increase |his |policy |benefit
|as |his |practice |and |income |grow? |- |correct |answer |Guaranteed |Insurability |Option |rider
Which |type |of |policy |is |considered |to |be |overfunded, |as |stated |by |IRS |guidelines? |- |correct |
answer |Modified |Endowment |Contract
How |does |a |typical |Variable |Life |Policy |investment |account |grow? |- |correct |answer |Through |
mutual |funds, |stocks, |bonds
,Which |Federal |law |allows |an |insurer |to |obtain |an |inspection |report |on |a |potential |insured? |- |
correct |answer |Fair |Credit |Reporting |Act
What |is |Medicare? |- |correct |answer |is |a |hospital |and |medical |expense |insurance |program
What |kind |of |premium |does |a |Whole |Life |policy |have? |- |correct |answer |level
T |took |out |a |$50,000 |life |insurance |policy |with |an |Accidental |Death |and |Dismemberment |
rider. |Five |years |later, |T |commits |suicide. |How |much |will |the |insurer |pay? |- |correct |answer |
50,000
Pre-hospitalization |authorization |is |considered |an |example |of: |- |correct |answer |managed |care
Under |a |Renewable |Term |policy, |- |correct |answer |the |renewal |premium |is |calculated |on |the |
basis |of |the |insured's |attained |age
T |and |S |are |named |co-primary |beneficiaries |on |a |$500,000 |Accidental |Death |and |
Dismemberment |policy |insuring |their |father. |Their |mother |was |named |contingent |beneficiary. |
Five |years |later, |S |dies |of |natural |causes |and |the |father |is |killed |in |a |scuba |accident |shortly |
afterwards. |How |much |of |the |death |benefit |will |the |mother |receive? |- |correct |answer |$0
A |provision |in |a |life |insurance |policy |that |pays |the |policyowner |an |amount |that |does |not |
surpass |the |guaranteed |cash |value |is |called |the: |- |correct |answer |Policy |Loan |provision
What |action |can |a |policyowner |take |if |an |application |for |a |bank |loan |requires |collateral? |- |
correct |answer |Assign |policy |ownership |to |the |bank
Which |of |the |following |statements |is |CORRECT |about |the |Life |and |Health |Insurance |Guaranty |
Association? |- |correct |answer |It |is |funded |by |insurance |companies |through |assessments
An |insurance |company |that |replaces |existing |insurance |must |provide |a |copy |of |which |of |the |
following |documents |to |the |existing |insurance |company? |- |correct |answer |A |policy |summary
, P, |age |50, |purchased |an |annuity |that |P |will |fund |with |$500/ |month |for |15 |years. |The |annuity |
will |then |pay |P |retirement |payments |after |the |15 |years. |Which |type |of |annuity |did |P |
purchase? |- |correct |answer |Deferred
A |Family |Income |Policy |is |a |combination |of |Whole |Life |and |- |correct |answer |Decreasing |Term |
insurance
J |purchased |a |Disability |Income |Policy |that |ONLY |J |can |terminate |and |on |which |the |rates |will |
never |increase |above |those |illustrated |in |the |policy. |Which |of |the |following |types |of |policies |
did |J |purchase? |- |correct |answer |Noncancelable
Information |obtained |from |a |phone |conversation |to |the |proposed |insured |can |be |found |in |
which |of |these |reports? |- |correct |answer |Inspection |report
When |must |insurable |interest |exist |for |a |life |insurance |contract |to |be |valid? |- |correct |answer |
Inception |of |the |contract
What |is |the |purpose |of |a |Policy |Summary? |- |correct |answer |It |highlights |the |critical |parts |of |
the |policy |issued
K |failed |to |pay |a |renewal |premium |within |the |time |granted |by |the |insurer. |K |then |sends |in |a |
payment |which |the |insurer |subsequently |accepts. |Which |policy |provision |specifies |that |
coverage |may |be |restored |in |this |situation? |- |correct |answer |Reinstatement
A |42-year-old |executive |wants |to |purchase |life |insurance |that |will |allow |for |increases |or |
decreases |to |coverage |as |his/her |needs |change. |Which |of |the |following |policies |will |best |meet
|this |need? |- |correct |answer |Universal |Life
What |does |the |ownership |clause |in |a |life |insurance |policy |state? |- |correct |answer |Who |the |
policyowner |is |and |what |rights |the |policyowner |is |entitled |to
