1 | Page
MS LIFE AND HEALTH INSURANCE 2025
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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
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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
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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
MS LIFE AND HEALTH INSURANCE 2025
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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
,2 | Page
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
, 3 | Page
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
