LAH EXAM QUESTIONS & answers A+
rated
Most policies will pay the accidental death benefits as long as the death is caused by the
accident and occurs within - correct answer ✔✔90 days
Which of the following named beneficiaries would NOT be able to receive the death benefit
directly from the insurer in the event of the insureds' death? - correct answer ✔✔A minor son
of the insured
Which of the following statements is correct concerning taxation of long-term care insurance? -
correct answer ✔✔Excessive benefits may be taxable.
What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention
Act? - correct answer ✔✔$5,000
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary,
and his daughter as contingent beneficiary. Under what circumstances could the daughter
collect the death benefit? - correct answer ✔✔If the primary beneficiary predeceases the
insured
As deductible amounts increase, premium amounts change in what way? - correct answer ✔✔.
Decrease
The provision which prevents the insured from bringing any legal action against the company for
at least 60 days after proof of loss is known as - correct answer ✔✔Legal actions
,If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if
they submit a completed application within how many days of establishing residence in
Pennsylvania with proof of licensing from their prior home state? - correct answer ✔✔90 days
Are insurance company underwriters allowed to discriminate? - correct answer ✔✔
.Under the uniform required provisions, proof of loss under a health insurance policy normally
should be filed within - correct answer ✔✔90 days of a loss.
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit
rider. In which of the following scenarios will the rider waive the payment of premium? - correct
answer ✔✔If the father is disabled for more than 6 months
Which of the following describes attachments made to policies that either add or modify
coverage? - correct answer ✔✔Riders
What is a material misrepresentation? - correct answer ✔✔A statement by the applicant that,
upon discovery, would affect the underwriting decision of the insurance company
What is the purpose of coinsurance provisions? - correct answer ✔✔To help the insurance
company to prevent overutilization of the policy
A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife
dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children.
Assuming he never changed the beneficiary, the policy proceeds will go to - correct answer
✔✔The insured's estate.
Which of the following would NOT be considered an exception to the National Do Not Call List? -
correct answer ✔✔Calls for which the consumer has given prior written permission
,All of the following are Nonforfeiture options EXCEPT - correct answer ✔✔Interest only
An insured covered by a dread disease policy is confined to a hospital for 2 years as the result of
a covered loss. In this situation, what is the minimum amount that the policy must pay? -
correct answer ✔✔$50,000
Which nonforfeiture option provides coverage for the longest period of time? - correct answer
✔✔Extended term
In which of the following locations would skilled care most likely be provided? - correct answer
✔✔In an institutional setting
A long-term care policy may NOT lapse because of unpaid premiums, unless the insurer gives at
least - correct answer ✔✔30 days' notice.
Which of the following is NOT a feature of a noncancellable policy? - correct answer ✔✔The
insurer may terminate the contract only at renewal for certain conditions.
When a policyowner designates a group of individuals as the beneficiary of a life insurance
death benefit without specifically naming the individuals, this is called - correct answer
✔✔Class designation.
When a producer died, his surviving spouse needed to maintain the insurance agency until it
could be sold. Without testing, she could qualify for a temporary license for a maximum period
of - correct answer ✔✔180 days.
All of the following are true about group disability Income insurance EXCEPT - correct answer
✔✔Coverage applies both on and off the job.
, Under which provision can a physician submit claim information prior to providing treatment? -
correct answer ✔✔Prospective Review
What is the purpose of the Insurance Guaranty Association? - correct answer ✔✔To protect
policyowners against insurer insolvency
A producer who fails to segregate premium monies from his own personal funds is guilty of -
correct answer ✔✔Commingling
If an insured continually uses the automatic premium loan option to pay the policy premium, -
correct answer ✔✔The policy will terminate when the cash value is reduced to nothing.
Which of the following defines the owner a life insurance policy who seeks to sell the policy due
to a terminal or chronic illness? - correct answer ✔✔Viatical settlement provider
When an insured purchased her disability income policy, she misstated her age to the agent.
She told the agent that she was 30 years old, when in fact, she was 37. If the policy contains the
optional misstatement of age provision - correct answer ✔✔Amounts payable under the policy
will reflect the insured's correct age.
A couple receives a set amount of income from their annuity. When the wife dies, the husband
no longer receives annuity payments. What type of annuity did the couple buy? - correct
answer ✔✔Joint life
Under which of the following circumstances can financial institutions share insurance coverage
information with third parties, for the purpose of soliciting the purchase of insurance? - correct
answer ✔✔If a consumer does not sign and return the notice of disclosure within 30 days
In individual health insurance coverage, the insurer must cover a newborn from the moment of
birth, and if additional premium payment is required, allow how many days for payment? -
correct answer ✔✔Within 31 days of birth
rated
Most policies will pay the accidental death benefits as long as the death is caused by the
accident and occurs within - correct answer ✔✔90 days
Which of the following named beneficiaries would NOT be able to receive the death benefit
directly from the insurer in the event of the insureds' death? - correct answer ✔✔A minor son
of the insured
Which of the following statements is correct concerning taxation of long-term care insurance? -
correct answer ✔✔Excessive benefits may be taxable.
What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention
Act? - correct answer ✔✔$5,000
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary,
and his daughter as contingent beneficiary. Under what circumstances could the daughter
collect the death benefit? - correct answer ✔✔If the primary beneficiary predeceases the
insured
As deductible amounts increase, premium amounts change in what way? - correct answer ✔✔.
Decrease
The provision which prevents the insured from bringing any legal action against the company for
at least 60 days after proof of loss is known as - correct answer ✔✔Legal actions
,If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if
they submit a completed application within how many days of establishing residence in
Pennsylvania with proof of licensing from their prior home state? - correct answer ✔✔90 days
Are insurance company underwriters allowed to discriminate? - correct answer ✔✔
.Under the uniform required provisions, proof of loss under a health insurance policy normally
should be filed within - correct answer ✔✔90 days of a loss.
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit
rider. In which of the following scenarios will the rider waive the payment of premium? - correct
answer ✔✔If the father is disabled for more than 6 months
Which of the following describes attachments made to policies that either add or modify
coverage? - correct answer ✔✔Riders
What is a material misrepresentation? - correct answer ✔✔A statement by the applicant that,
upon discovery, would affect the underwriting decision of the insurance company
What is the purpose of coinsurance provisions? - correct answer ✔✔To help the insurance
company to prevent overutilization of the policy
A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife
dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children.
Assuming he never changed the beneficiary, the policy proceeds will go to - correct answer
✔✔The insured's estate.
Which of the following would NOT be considered an exception to the National Do Not Call List? -
correct answer ✔✔Calls for which the consumer has given prior written permission
,All of the following are Nonforfeiture options EXCEPT - correct answer ✔✔Interest only
An insured covered by a dread disease policy is confined to a hospital for 2 years as the result of
a covered loss. In this situation, what is the minimum amount that the policy must pay? -
correct answer ✔✔$50,000
Which nonforfeiture option provides coverage for the longest period of time? - correct answer
✔✔Extended term
In which of the following locations would skilled care most likely be provided? - correct answer
✔✔In an institutional setting
A long-term care policy may NOT lapse because of unpaid premiums, unless the insurer gives at
least - correct answer ✔✔30 days' notice.
Which of the following is NOT a feature of a noncancellable policy? - correct answer ✔✔The
insurer may terminate the contract only at renewal for certain conditions.
When a policyowner designates a group of individuals as the beneficiary of a life insurance
death benefit without specifically naming the individuals, this is called - correct answer
✔✔Class designation.
When a producer died, his surviving spouse needed to maintain the insurance agency until it
could be sold. Without testing, she could qualify for a temporary license for a maximum period
of - correct answer ✔✔180 days.
All of the following are true about group disability Income insurance EXCEPT - correct answer
✔✔Coverage applies both on and off the job.
, Under which provision can a physician submit claim information prior to providing treatment? -
correct answer ✔✔Prospective Review
What is the purpose of the Insurance Guaranty Association? - correct answer ✔✔To protect
policyowners against insurer insolvency
A producer who fails to segregate premium monies from his own personal funds is guilty of -
correct answer ✔✔Commingling
If an insured continually uses the automatic premium loan option to pay the policy premium, -
correct answer ✔✔The policy will terminate when the cash value is reduced to nothing.
Which of the following defines the owner a life insurance policy who seeks to sell the policy due
to a terminal or chronic illness? - correct answer ✔✔Viatical settlement provider
When an insured purchased her disability income policy, she misstated her age to the agent.
She told the agent that she was 30 years old, when in fact, she was 37. If the policy contains the
optional misstatement of age provision - correct answer ✔✔Amounts payable under the policy
will reflect the insured's correct age.
A couple receives a set amount of income from their annuity. When the wife dies, the husband
no longer receives annuity payments. What type of annuity did the couple buy? - correct
answer ✔✔Joint life
Under which of the following circumstances can financial institutions share insurance coverage
information with third parties, for the purpose of soliciting the purchase of insurance? - correct
answer ✔✔If a consumer does not sign and return the notice of disclosure within 30 days
In individual health insurance coverage, the insurer must cover a newborn from the moment of
birth, and if additional premium payment is required, allow how many days for payment? -
correct answer ✔✔Within 31 days of birth
