MS Life and Health Insurance Test 2025 Latest
Study online at https://quizlet.com/_5047u0
1. Which of these do NOT constitute policy delivery?: Policy issued with a rating
2. Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options?: Vari- able Life
3. 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?: The insurer will adjust the benefit to what the premiums paid would
have purchased at the insured's actual age
4. A life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached?: Waiver of Premium
5. A producer must report to the Commissioner of Insurance any administra- tive
action or criminal charges taken against the producer within days of
the final disposition of the matter.: 30
6. A physician opens up a new practice and qualifies for a $7,000/month Dis- ability
Income policy. What rider would the physician add if he wants the ability to increase his
policy benefit as his practice and income grow?: Guaranteed Insurability Option
rider
7. Which type of policy is considered to be overfunded, as stated by IRS
guidelines?: Modified Endowment Contract
8. How does a typical Variable Life Policy investment account grow?: Through
mutual funds, stocks, bonds
9. Which Federal law allows an insurer to obtain an inspection report on a potential
insured?: Fair Credit Reporting Act
10. What is Medicare?: is a hospital and medical expense insurance program
11. What kind of premium does a Whole Life policy have?: level
12. 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?: 50,000
13. Pre-hospitalization authorization is considered an example of:: managed care
14. Under a Renewable Term policy,: the renewal premium is calculated on the
basis of the insured's attained age
15. 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?: $0
1
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, MS Life and Health Insurance Test 2025 Latest
Study online at https://quizlet.com/_5047u0
16. A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the:: Policy Loan provision
17. What action can a policyowner take if an application for a bank loan requires
collateral?: Assign policy ownership to the bank
18. Which of the following statements is CORRECT about the Life and Health
Insurance Guaranty Association?: It is funded by insurance companies through
assessments
19. An insurance company that replaces existing insurance must provide a copy of
which of the following documents to the existing insurance compa- ny?: A policy
summary
20. P, age 50, purchased an annuity that P will fund with $500/ month for 15 years.
The annuity will then pay P retirement payments after the 15 years. Which type of
annuity did P purchase?: Deferred
21. A Family Income Policy is a combination of Whole Life and: Decreasing Term
insurance
22. J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase?: Noncancelable
23. Information obtained from a phone conversation to the proposed insured can be
found in which of these reports?: Inspection report
24. When must insurable interest exist for a life insurance contract to be valid?:
Inception of the contract
25. What is the purpose of a Policy Summary?: It highlights the critical parts of
the policy issued
26. K failed to pay a renewal premium within the time granted by the insurer. K then
sends in a payment which the insurer subsequently accepts. Which policy provision
specifies that coverage may be restored in this situation?: - Reinstatement
27. A 42-year-old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the following
policies will best meet this need?: Universal Life
28. What does the ownership clause in a life insurance policy state?: Who the
policyowner is and what rights the policyowner is entitled to
29. G is involved in an automobile accident as a result of driving while in- toxicated
and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion
in G's policy, who is responsible for paying the medical bills?: The insured
2
atm4success @stuvia
Study online at https://quizlet.com/_5047u0
1. Which of these do NOT constitute policy delivery?: Policy issued with a rating
2. Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options?: Vari- able Life
3. 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?: The insurer will adjust the benefit to what the premiums paid would
have purchased at the insured's actual age
4. A life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached?: Waiver of Premium
5. A producer must report to the Commissioner of Insurance any administra- tive
action or criminal charges taken against the producer within days of
the final disposition of the matter.: 30
6. A physician opens up a new practice and qualifies for a $7,000/month Dis- ability
Income policy. What rider would the physician add if he wants the ability to increase his
policy benefit as his practice and income grow?: Guaranteed Insurability Option
rider
7. Which type of policy is considered to be overfunded, as stated by IRS
guidelines?: Modified Endowment Contract
8. How does a typical Variable Life Policy investment account grow?: Through
mutual funds, stocks, bonds
9. Which Federal law allows an insurer to obtain an inspection report on a potential
insured?: Fair Credit Reporting Act
10. What is Medicare?: is a hospital and medical expense insurance program
11. What kind of premium does a Whole Life policy have?: level
12. 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?: 50,000
13. Pre-hospitalization authorization is considered an example of:: managed care
14. Under a Renewable Term policy,: the renewal premium is calculated on the
basis of the insured's attained age
15. 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?: $0
1
atm4success @stuvia
, MS Life and Health Insurance Test 2025 Latest
Study online at https://quizlet.com/_5047u0
16. A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the:: Policy Loan provision
17. What action can a policyowner take if an application for a bank loan requires
collateral?: Assign policy ownership to the bank
18. Which of the following statements is CORRECT about the Life and Health
Insurance Guaranty Association?: It is funded by insurance companies through
assessments
19. An insurance company that replaces existing insurance must provide a copy of
which of the following documents to the existing insurance compa- ny?: A policy
summary
20. P, age 50, purchased an annuity that P will fund with $500/ month for 15 years.
The annuity will then pay P retirement payments after the 15 years. Which type of
annuity did P purchase?: Deferred
21. A Family Income Policy is a combination of Whole Life and: Decreasing Term
insurance
22. J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase?: Noncancelable
23. Information obtained from a phone conversation to the proposed insured can be
found in which of these reports?: Inspection report
24. When must insurable interest exist for a life insurance contract to be valid?:
Inception of the contract
25. What is the purpose of a Policy Summary?: It highlights the critical parts of
the policy issued
26. K failed to pay a renewal premium within the time granted by the insurer. K then
sends in a payment which the insurer subsequently accepts. Which policy provision
specifies that coverage may be restored in this situation?: - Reinstatement
27. A 42-year-old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the following
policies will best meet this need?: Universal Life
28. What does the ownership clause in a life insurance policy state?: Who the
policyowner is and what rights the policyowner is entitled to
29. G is involved in an automobile accident as a result of driving while in- toxicated
and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion
in G's policy, who is responsible for paying the medical bills?: The insured
2
atm4success @stuvia
