Insurance Final Exam Questions with
Verified Answers
Kim's policy remained in force for a certain number of days even though she forgot to
pay the premium. The provision that allows this is called: - ANSWERS
The Grace Period
o HSAs are frequently used with: - ANSWERS
o HMOs
If Dan pays his health insurance premium quarterly and fails to make payment on April
1, his grace period will expire: - ANSWERS
May 1
If a person is terminated from employment, how much time do they have to convert from
a group life insurance policy to an individual life insurance policy? - ANSWERS31 Days
Which of the following is not one of the elements required to make a contract legal? -
ANSWERSAmbiguities
If the cash values of an annuity are invested in securities, it is a: - ANSWERSVariable
Annuity
Which of the following is the only legally-based, recognized cause for canceling a
spouse's Medicare supplement coverage if it has been established that no material
misrepresentation exists? - ANSWERSNon-Payment
If an applicant misstates their age on an insurance application, what does the insurer do
when it is discovered at claim time? - ANSWERSAdjust the claim benefits to reflect
what he would have been entitled to if his real age had been given
In Life Insurance, Insurable interest must be present at the time of: -
ANSWERSApplication
A program that includes preshopitalization authorization is an example of: -
ANSWERSManaged Care
How many days does an insured have to file a notice of claim? - ANSWERS20 Days
An insurance applicant submits an application with a premium. After underwritting, the
insurer sends back the policy, rated, with an impairment rider. What should the producer
tell the applicant at delivery? - ANSWERSExplain the issue and collect an additional
premium
,After receiving notice of a claim, the insurer has a maximum of how many days to
provide claims forms? - ANSWERS15 Days
Mr.Jones, the insured, committed suicide after the expiration of the suicidal clause in his
life insurance policy. The insurer is obligated to: - ANSWERS
Pay the death benefit
All of the Following are unfair and deceptive practices, EXCEPT: - ANSWERS
False advertising
Misrepresentation
*c. Policy replacement
Unfair discrimination
An insurance application is not complete unless it has: - ANSWERSThe signature of the
insured (unless not an adult), and the agent
How soon must producers notify the Director of change in address? - ANSWERSWithin
30 days of the change in address
What is a form of intimidation in which an individual or group refuses to do business with
a company or individual? - ANSWERSBoycott
What is the minimum age to become a licensed producer in Missouri? - ANSWERS18
A written examination test the individual's knowledge of: - ANSWERSThe duties and
responsibilities of an insurance producer
What should the insured do if the insurer fails to send the correct forms, under the
Claims Forms provision of a health policy? - ANSWERSCreate their own form on which
to submit the claim
What is the main purpose of the MIB? - ANSWERSThe sharing of medical information
and data among its member companies
Who of the following individuals may receive a commission? – ANSWERS
o A licensed insurance administrator
o *b. A licensed insurance producer
o A licensed insurance adviser
o A licensed insurance counselor
Tina has a policy that only covers cancer-related medical expenses. What kind of policy
does she have? - ANSWERSDread Disease
, Which of the following unfair trade practices is characterized by charging different rates
for individuals of the same class and equal expectation of life? - ANSWERSUnfair
Discrimination
Who has the right to change the beneficiary on a life policy? - ANSWERSThe
policyowner
Which of the following does not influence the amount that an individual receives as
monthly income under Social Security? – ANSWERS
PIA
Insured status
Age
*d. Sex
In most Disability Income policies, the elimination period applies: - ANSWERSTo each
disability separtely
Which of the following is an improper form of policy replacement? - ANSWERSTwisting
How does the IRS treat disability income benefits when the employer pays the policy
premiums? - ANSWERSThey are fully taxable
When Jason filled out his application his statements had to be ______ to be considered
legal. - ANSWERSRepresenatations
If more than one beneficiary is named, who is the first in line? - ANSWERSPrimary
Health insurance policy application questions can not be used to determine the
applicant's: - ANSWERSSexual orientation
Which approach calculates the amount a family needs immediately upon the death of
the insured to pay for their expenses and basic necessities? - ANSWERSNeeds
Phill and Sarah bought a life policy in which both are insured. Sarah dies beofre Phill. If
the policy pays the death benefit after Phill dies, it is a: - ANSWERSSuvivorship life
The rider that you would pick if you want to be able to add coverage in the future,
without having to show proof of insurability: - ANSWERSGuaranteed Insurability
According to the Physical Examination and Autopsy provision, who is responsible for
paying the cost of examining the insured? - ANSWERSThe insurer
Jeff has limited financial resources, but finds himself in a position where he needs a
good deal of protection. A ______ would probable best suit his needs at this time. -
ANSWERSTerm Policy
Verified Answers
Kim's policy remained in force for a certain number of days even though she forgot to
pay the premium. The provision that allows this is called: - ANSWERS
The Grace Period
o HSAs are frequently used with: - ANSWERS
o HMOs
If Dan pays his health insurance premium quarterly and fails to make payment on April
1, his grace period will expire: - ANSWERS
May 1
If a person is terminated from employment, how much time do they have to convert from
a group life insurance policy to an individual life insurance policy? - ANSWERS31 Days
Which of the following is not one of the elements required to make a contract legal? -
ANSWERSAmbiguities
If the cash values of an annuity are invested in securities, it is a: - ANSWERSVariable
Annuity
Which of the following is the only legally-based, recognized cause for canceling a
spouse's Medicare supplement coverage if it has been established that no material
misrepresentation exists? - ANSWERSNon-Payment
If an applicant misstates their age on an insurance application, what does the insurer do
when it is discovered at claim time? - ANSWERSAdjust the claim benefits to reflect
what he would have been entitled to if his real age had been given
In Life Insurance, Insurable interest must be present at the time of: -
ANSWERSApplication
A program that includes preshopitalization authorization is an example of: -
ANSWERSManaged Care
How many days does an insured have to file a notice of claim? - ANSWERS20 Days
An insurance applicant submits an application with a premium. After underwritting, the
insurer sends back the policy, rated, with an impairment rider. What should the producer
tell the applicant at delivery? - ANSWERSExplain the issue and collect an additional
premium
,After receiving notice of a claim, the insurer has a maximum of how many days to
provide claims forms? - ANSWERS15 Days
Mr.Jones, the insured, committed suicide after the expiration of the suicidal clause in his
life insurance policy. The insurer is obligated to: - ANSWERS
Pay the death benefit
All of the Following are unfair and deceptive practices, EXCEPT: - ANSWERS
False advertising
Misrepresentation
*c. Policy replacement
Unfair discrimination
An insurance application is not complete unless it has: - ANSWERSThe signature of the
insured (unless not an adult), and the agent
How soon must producers notify the Director of change in address? - ANSWERSWithin
30 days of the change in address
What is a form of intimidation in which an individual or group refuses to do business with
a company or individual? - ANSWERSBoycott
What is the minimum age to become a licensed producer in Missouri? - ANSWERS18
A written examination test the individual's knowledge of: - ANSWERSThe duties and
responsibilities of an insurance producer
What should the insured do if the insurer fails to send the correct forms, under the
Claims Forms provision of a health policy? - ANSWERSCreate their own form on which
to submit the claim
What is the main purpose of the MIB? - ANSWERSThe sharing of medical information
and data among its member companies
Who of the following individuals may receive a commission? – ANSWERS
o A licensed insurance administrator
o *b. A licensed insurance producer
o A licensed insurance adviser
o A licensed insurance counselor
Tina has a policy that only covers cancer-related medical expenses. What kind of policy
does she have? - ANSWERSDread Disease
, Which of the following unfair trade practices is characterized by charging different rates
for individuals of the same class and equal expectation of life? - ANSWERSUnfair
Discrimination
Who has the right to change the beneficiary on a life policy? - ANSWERSThe
policyowner
Which of the following does not influence the amount that an individual receives as
monthly income under Social Security? – ANSWERS
PIA
Insured status
Age
*d. Sex
In most Disability Income policies, the elimination period applies: - ANSWERSTo each
disability separtely
Which of the following is an improper form of policy replacement? - ANSWERSTwisting
How does the IRS treat disability income benefits when the employer pays the policy
premiums? - ANSWERSThey are fully taxable
When Jason filled out his application his statements had to be ______ to be considered
legal. - ANSWERSRepresenatations
If more than one beneficiary is named, who is the first in line? - ANSWERSPrimary
Health insurance policy application questions can not be used to determine the
applicant's: - ANSWERSSexual orientation
Which approach calculates the amount a family needs immediately upon the death of
the insured to pay for their expenses and basic necessities? - ANSWERSNeeds
Phill and Sarah bought a life policy in which both are insured. Sarah dies beofre Phill. If
the policy pays the death benefit after Phill dies, it is a: - ANSWERSSuvivorship life
The rider that you would pick if you want to be able to add coverage in the future,
without having to show proof of insurability: - ANSWERSGuaranteed Insurability
According to the Physical Examination and Autopsy provision, who is responsible for
paying the cost of examining the insured? - ANSWERSThe insurer
Jeff has limited financial resources, but finds himself in a position where he needs a
good deal of protection. A ______ would probable best suit his needs at this time. -
ANSWERSTerm Policy
