MS LIFE AND HEALTH INSURANCE
TEST 2025 EXAM |GUARANTEED
ACCURATE ANSWERS
Which of these do NOT constitute policy delivery? - ACCURATE
ANSWERS✔✔ 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? - ACCURATE ANSWERS✔✔ 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? - ACCURATE
ANSWERS✔✔ 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? -
ACCURATE ANSWERS✔✔ 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. - ACCURATE
ANSWERS✔✔ 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? - ACCURATE ANSWERS✔✔ Guaranteed Insurability Option
rider
Which type of policy is considered to be overfunded, as stated by IRS
guidelines? - ACCURATE ANSWERS✔✔ Modified Endowment
Contract
How does a typical Variable Life Policy investment account grow? -
ACCURATE ANSWERS✔✔ Through mutual funds, stocks, bonds
Which Federal law allows an insurer to obtain an inspection report on a
potential insured? - ACCURATE ANSWERS✔✔ Fair Credit Reporting
Act
What is Medicare? - ACCURATE ANSWERS✔✔ is a hospital and
medical expense insurance program
What kind of premium does a Whole Life policy have? - ACCURATE
ANSWERS✔✔ 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? - ACCURATE ANSWERS✔✔ 50,000
Pre-hospitalization authorization is considered an example of: -
ACCURATE ANSWERS✔✔ managed care
Under a Renewable Term policy, - ACCURATE ANSWERS✔✔ 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? - ACCURATE
ANSWERS✔✔ $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: -
ACCURATE ANSWERS✔✔ Policy Loan provision
What action can a policyowner take if an application for a bank loan
requires collateral? - ACCURATE ANSWERS✔✔ Assign policy
ownership to the bank
TEST 2025 EXAM |GUARANTEED
ACCURATE ANSWERS
Which of these do NOT constitute policy delivery? - ACCURATE
ANSWERS✔✔ 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? - ACCURATE ANSWERS✔✔ 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? - ACCURATE
ANSWERS✔✔ 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? -
ACCURATE ANSWERS✔✔ 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. - ACCURATE
ANSWERS✔✔ 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? - ACCURATE ANSWERS✔✔ Guaranteed Insurability Option
rider
Which type of policy is considered to be overfunded, as stated by IRS
guidelines? - ACCURATE ANSWERS✔✔ Modified Endowment
Contract
How does a typical Variable Life Policy investment account grow? -
ACCURATE ANSWERS✔✔ Through mutual funds, stocks, bonds
Which Federal law allows an insurer to obtain an inspection report on a
potential insured? - ACCURATE ANSWERS✔✔ Fair Credit Reporting
Act
What is Medicare? - ACCURATE ANSWERS✔✔ is a hospital and
medical expense insurance program
What kind of premium does a Whole Life policy have? - ACCURATE
ANSWERS✔✔ 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? - ACCURATE ANSWERS✔✔ 50,000
Pre-hospitalization authorization is considered an example of: -
ACCURATE ANSWERS✔✔ managed care
Under a Renewable Term policy, - ACCURATE ANSWERS✔✔ 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? - ACCURATE
ANSWERS✔✔ $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: -
ACCURATE ANSWERS✔✔ Policy Loan provision
What action can a policyowner take if an application for a bank loan
requires collateral? - ACCURATE ANSWERS✔✔ Assign policy
ownership to the bank
