Vermont life and health Final exam 167 Questions with
Verified Answers
Which of the following is NOT a basic underwriting action for accident and health
insurance? - CORRECT ANSWER Removing uniform policy provisions
Long-term care policies will usually pay for eligible benefits to using which of the
following methods - CORRECT ANSWER Expense incurred
T is covered by an accidental death and dismemberment (AD&D) policy that
contains an irrevocable beneficiary. What action will the insurance company take
if T requests a change of beneficiary? - CORRECT ANSWER Request of the change
will be refused
Which of these do NOT indicate the presence of insurance interest in a life
insurance contract - CORRECT ANSWER Lifelong friendship
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
Which of these is not a factor that influences group health insurance
underwriting? - CORRECT ANSWER Physical exams of group members
Which one of these is not considered to be an element of an insurable risk -
CORRECT ANSWER Speculative risk
Newborn children are automatically covered under an existing family medical
plan at the moment of birth for a period of at least (# days) - CORRECT ANSWER
31
Under what circumstances does an accident and health insurance have the right
to request an autopsy - CORRECT ANSWER We're not prohibited by state law
,Which of these annuity contract features is meant to discourage withdrawals and
exchanges? - CORRECT ANSWER Surrender charges
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
Which of the following is an example of defamation? - CORRECT ANSWER Making
a statement that is false or maliciously critical of the financial condition of an
insurer
Which report contains information regarding an individual's general reputation
and credit standing? - CORRECT ANSWER Consumer report
How are the premiums for an individually-owned disability income policy treated
for tax purposes? - CORRECT ANSWER Not tax-deductible at all
Which of these is NOT an underwriting responsibility of a life insurance agent? -
CORRECT ANSWER Determining the final rate classification
Disability income policies provide protection for which of the following - CORRECT
ANSWER Economic death
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit
for this injury. What type of insurance does Mike have? - CORRECT ANSWER
Accidental Death and Dismemberment
The reason for backdating a policy is - CORRECT ANSWER to obtain a premium
rate based on an earlier age
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
A licensee who is required to take continuing education must complete 24 hours
of continuing education, which includes ___ hour(s) of ethics courseworks? -
CORRECT ANSWER 3
, Group life insurance is typically issued as - CORRECT ANSWER level term insurance
What is it in insurance contract that identifies individuals by relationship to a
specific organization - CORRECT ANSWER Group insurance
Insurance producer Kelly offers a $500 shopping card if a client purchases an
insurance product through her. What is this an example of? - CORRECT ANSWER
Rebating, which is an unfair trade practice
In a disability buy-sell agreement, the policies funding the agreement are owned
by the - CORRECT ANSWER Business entity
A group health certificate for coverage issued in Vermont MUST contain -
CORRECT ANSWER Summary of policy features and benefits
What does a 401(k) plan generally provide its participants? - CORRECT ANSWER
Salary-deferral option
If the commissioner requests access to a producers business records, the
producer - CORRECT ANSWER Must provide access to the records upon request
Accidental and health policies exclude loss as a result of - CORRECT ANSWER War
When long-term care insurance is replaced, the insurer issuing the new policy
cannot - CORRECT ANSWER Impose a new pre-existing conditions exclusion
A medical fee schedule shows the amount an insurer will pay for a given
procedure. This amount is considered to be the - CORRECT ANSWER highest
amount payable
Which of these statements reflects an accurate portrayal of Medicare select -
CORRECT ANSWER Insured uses preferred providers in exchange for paying lower
premiums
After the extended term life nonforfeiture option is chosen, the available
insurance will be - CORRECT ANSWER level term for a stated period of time
Verified Answers
Which of the following is NOT a basic underwriting action for accident and health
insurance? - CORRECT ANSWER Removing uniform policy provisions
Long-term care policies will usually pay for eligible benefits to using which of the
following methods - CORRECT ANSWER Expense incurred
T is covered by an accidental death and dismemberment (AD&D) policy that
contains an irrevocable beneficiary. What action will the insurance company take
if T requests a change of beneficiary? - CORRECT ANSWER Request of the change
will be refused
Which of these do NOT indicate the presence of insurance interest in a life
insurance contract - CORRECT ANSWER Lifelong friendship
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
Which of these is not a factor that influences group health insurance
underwriting? - CORRECT ANSWER Physical exams of group members
Which one of these is not considered to be an element of an insurable risk -
CORRECT ANSWER Speculative risk
Newborn children are automatically covered under an existing family medical
plan at the moment of birth for a period of at least (# days) - CORRECT ANSWER
31
Under what circumstances does an accident and health insurance have the right
to request an autopsy - CORRECT ANSWER We're not prohibited by state law
,Which of these annuity contract features is meant to discourage withdrawals and
exchanges? - CORRECT ANSWER Surrender charges
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
Which of the following is an example of defamation? - CORRECT ANSWER Making
a statement that is false or maliciously critical of the financial condition of an
insurer
Which report contains information regarding an individual's general reputation
and credit standing? - CORRECT ANSWER Consumer report
How are the premiums for an individually-owned disability income policy treated
for tax purposes? - CORRECT ANSWER Not tax-deductible at all
Which of these is NOT an underwriting responsibility of a life insurance agent? -
CORRECT ANSWER Determining the final rate classification
Disability income policies provide protection for which of the following - CORRECT
ANSWER Economic death
Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit
for this injury. What type of insurance does Mike have? - CORRECT ANSWER
Accidental Death and Dismemberment
The reason for backdating a policy is - CORRECT ANSWER to obtain a premium
rate based on an earlier age
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
A licensee who is required to take continuing education must complete 24 hours
of continuing education, which includes ___ hour(s) of ethics courseworks? -
CORRECT ANSWER 3
, Group life insurance is typically issued as - CORRECT ANSWER level term insurance
What is it in insurance contract that identifies individuals by relationship to a
specific organization - CORRECT ANSWER Group insurance
Insurance producer Kelly offers a $500 shopping card if a client purchases an
insurance product through her. What is this an example of? - CORRECT ANSWER
Rebating, which is an unfair trade practice
In a disability buy-sell agreement, the policies funding the agreement are owned
by the - CORRECT ANSWER Business entity
A group health certificate for coverage issued in Vermont MUST contain -
CORRECT ANSWER Summary of policy features and benefits
What does a 401(k) plan generally provide its participants? - CORRECT ANSWER
Salary-deferral option
If the commissioner requests access to a producers business records, the
producer - CORRECT ANSWER Must provide access to the records upon request
Accidental and health policies exclude loss as a result of - CORRECT ANSWER War
When long-term care insurance is replaced, the insurer issuing the new policy
cannot - CORRECT ANSWER Impose a new pre-existing conditions exclusion
A medical fee schedule shows the amount an insurer will pay for a given
procedure. This amount is considered to be the - CORRECT ANSWER highest
amount payable
Which of these statements reflects an accurate portrayal of Medicare select -
CORRECT ANSWER Insured uses preferred providers in exchange for paying lower
premiums
After the extended term life nonforfeiture option is chosen, the available
insurance will be - CORRECT ANSWER level term for a stated period of time
