Vermont Life and Health Final Exam
Questions and Correct Answers
Question 1
Under a deferred annuity, which contract feature initially charges a 5-10% fee that
eventually reduces to $0 after a stated amount of time?
Correct Answer
surrender charge
Question 2
Which of the following statements is true about an insurers right to screen applicants
for HIV
Correct Answer
An insurer can require a blood test for HIV
Question 3
Elimination periods Typically applied to
Correct Answer
Disability policies
Question 4
A producer has indicated to a potential client that the proposed life insurance policy
is covered by the Vermont life and health insurance guaranty association. This action
taken by the producer is
Correct Answer
Prohibited by law
Page 1 of 34
,Question 5
Which entity is responsible for regulating claims settlement practices of insurers
Correct Answer
State insurance departments
Question 6
Which of the following is NOT a basic underwriting action for accident and health
insurance?
Correct Answer
Removing uniform policy provisions
Question 7
Each domestic company must have its financial records examined by the
Commissioner every
Correct Answer
3 years
Question 8
Which of the following best describes the presumptive disability provision
Correct Answer
Waives the typical total disability requirements
Question 9
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case
by case basis, this process is referred to as
Correct Answer
Facultative reinsurance
Page 2 of 34
,Question 10
Inpatient Psychiatric Care is covered under Medicare Part A insurance for 190 days per
Correct Answer
Lifetime
Question 11
According to ERISA regulations, a Summary Plan Description must be provided to a
new plan member within ___ days of the member's eligibility date.
Correct Answer
90
Question 12
When an individual is planning to protect his family with life insurance one method of
doing so is called needs analysis what exactly does needs analysis involve?
Correct Answer
Establishes the needs of the individual and his dependents
Question 13
How long can an insurer legally defer paying the cash value of a surrendered life
insurance policy?
Correct Answer
6 months
Question 14
How are the premiums for an individually-owned disability income policy treated for
tax purposes?
Correct Answer
Not tax-deductible at all
Page 3 of 34
, Question 15
Who may terminate coverage under a cancelable health insurance policy
Correct Answer
The insurer or the insured
Question 16
Which would be described as a beneficiary designation by class?
Correct Answer
Children of the insured
Question 17
Long-term care policies normally cover expenses associated with
Correct Answer
nursing homes
Question 18
According to the affordable care act insurers can no longer deny health coverage due
to pre-existing conditions unless that plan is a(n)
Correct Answer
Grandfathered plan
Question 19
Which of the following is not information needed to determine the suitability of an
annuity recommendation
Correct Answer
level of education
Page 4 of 34
Questions and Correct Answers
Question 1
Under a deferred annuity, which contract feature initially charges a 5-10% fee that
eventually reduces to $0 after a stated amount of time?
Correct Answer
surrender charge
Question 2
Which of the following statements is true about an insurers right to screen applicants
for HIV
Correct Answer
An insurer can require a blood test for HIV
Question 3
Elimination periods Typically applied to
Correct Answer
Disability policies
Question 4
A producer has indicated to a potential client that the proposed life insurance policy
is covered by the Vermont life and health insurance guaranty association. This action
taken by the producer is
Correct Answer
Prohibited by law
Page 1 of 34
,Question 5
Which entity is responsible for regulating claims settlement practices of insurers
Correct Answer
State insurance departments
Question 6
Which of the following is NOT a basic underwriting action for accident and health
insurance?
Correct Answer
Removing uniform policy provisions
Question 7
Each domestic company must have its financial records examined by the
Commissioner every
Correct Answer
3 years
Question 8
Which of the following best describes the presumptive disability provision
Correct Answer
Waives the typical total disability requirements
Question 9
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case
by case basis, this process is referred to as
Correct Answer
Facultative reinsurance
Page 2 of 34
,Question 10
Inpatient Psychiatric Care is covered under Medicare Part A insurance for 190 days per
Correct Answer
Lifetime
Question 11
According to ERISA regulations, a Summary Plan Description must be provided to a
new plan member within ___ days of the member's eligibility date.
Correct Answer
90
Question 12
When an individual is planning to protect his family with life insurance one method of
doing so is called needs analysis what exactly does needs analysis involve?
Correct Answer
Establishes the needs of the individual and his dependents
Question 13
How long can an insurer legally defer paying the cash value of a surrendered life
insurance policy?
Correct Answer
6 months
Question 14
How are the premiums for an individually-owned disability income policy treated for
tax purposes?
Correct Answer
Not tax-deductible at all
Page 3 of 34
, Question 15
Who may terminate coverage under a cancelable health insurance policy
Correct Answer
The insurer or the insured
Question 16
Which would be described as a beneficiary designation by class?
Correct Answer
Children of the insured
Question 17
Long-term care policies normally cover expenses associated with
Correct Answer
nursing homes
Question 18
According to the affordable care act insurers can no longer deny health coverage due
to pre-existing conditions unless that plan is a(n)
Correct Answer
Grandfathered plan
Question 19
Which of the following is not information needed to determine the suitability of an
annuity recommendation
Correct Answer
level of education
Page 4 of 34
