Life and Health Exam Multiple Choice
with 100% Correct Answers
Who may terminate a producer's appointment?
A. insurer B. insured C. producer D. policy owners - ANS-A. Insurer
Which of the following statements BEST describes a disability elimination period?
A. A time describe rather than a dollar deductible/ B. A benefit or utilization period. C. A
dollar deductible rather than a time deductible. D. A qualifying period - ANS-A. A time
deductible rather than a dollar deductible/
According to the Pennsylvania Health care Insurance Portability Act regulation, health
coverage for eligible individuals must be offered on what basis?
A. non-renewable B. guaranteed issue C. creditable coverage D. conditionally
renewable - ANS-C. Creditable renewable
If a license has been found to have committed any fraudulent or dishonest practice, the
insurance Commissioner may do all the following EXCEPT
A. assess a fine. B. revoke the license. C. place the license under supervision. D.
withhold the licensee's commission and/or fees. - ANS-D. withhold the licensee's
commission and/or fees.
An insurer would consider which of the following in determining whether to accept a
group life plan?
A. Grace period. B. Beneficiary. C. Average age. D. Dependents. - ANS-C. Average
age.
Which is NOT excluded in a long-term care policy?
A. Alcoholism B. Alzheimer's disease C. Non-cognitive mental disorders D. Treatment
caused by participation in criminal behavior - ANS-B. Alzheimer's disease
An insurer MUST offer a Long-Term Care Policy or certificate that
,A. has a nonforfeiture value. B. is subject to post claims underwriting. C. has no
increase in premium. D. can be canceled due to claims - ANS-B. is subject to post
claims underwriting
The MAJOR factor in determining the benefit amount paid under a disability income is
A. occupation. B. wages. C. age. D. gender. - ANS-B. wages
Under which circumstance would a business purchase life insurance?
A. to pay off a loan B. to expand the business C. to compensate executives D. to fund
employee healthcare - ANS-A. to pay off a loan
If an insured has multiple policies with one insurer that give the insured benefits
exceeding the company's allowable maximum, how much will the policies pay?
A. 50% of the loss is paid by each policy B. only the maximum benefit is payable C.
limits of both policies combined D. only the basic coverage amount - ANS-C. limits of
both policies combined
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured beneficiary die in the same accident B.
prevent creditors of a beneficiary from claiming any future death benefits payable C.
allow the insured to directly pay death benefit proceeds to a creditor D. establish the
payout of death benefits if the primary beneficiary dies before - ANS-B. prevent
creditors of a beneficiary from claiming any future death benefits payable
An individual who is NOT acceptable by an insurer at standard rates become of health,
habits, pr occupation is called a
A. rating risk. B. standard risk. C. preferred risk. D. substandard risk. - ANS-D.
substandard risk.
The Pennsylvania Insurance Department is responsible for all of the following EXCEPT
A. insurers B. producers. C. shareholders. D. Form approvals. - ANS-C. shareholders.
The MAIN purpose of insurance is to A. transfer risk. B. alter risk. C. retain risk. D.
seduce risk - ANS-A. transfer risk.
The statement option that allows proceeds to remain with the insurer and the earnings
to be paid to the beneficiary on a monthly basis is called
A. interest only. B. lump sum. C. fixed period. D. fixed amount. - ANS-A. interest only.
, An intentional false written or oral statement made by a producer for the purpose of
replacing an existing policy to the detriment of the insured is
A. twisting. B. determination. C. misrepresentation. D. illegal inducement. - ANS-A.
twisting.
Group long-term disability benefit amounts are usually limited to what percentage of the
participant's income?
A. 50 B. 60 C. 90 D. 100 - ANS-B. 60
Which of the following is a payment method for setting a health care provider claim?
A. Settlement. B. Prepaid basis. C. Fee-for-service. D. Premium payment. - ANS-C.
Fee-for-service.
What is disability insurance provision that specifies the condition under which the
insured is automatically qualified for benefits regardless of their ability to work?
A. Total disability. B. Partial disability. C. Residual disability. D. Presumptive disability. -
ANS-D. Presumptive disability.
A. the insured's need for some degree of ongoing medical treatment of care B. the
insured's inability to perform one or more but not all of his or her essential duties C. the
insured's inability to perform at least two or not at all of his or hers essential duties D.
the long-term or chronic, but not completely debilitating, nature of the insured's medical
condition - ANS-B. the insured's inability to perform one or more but not all of his or her
essential duties
EXCEPT for fraud, what is the time limit after issue for an insurer to deny an individual
health insurance claim based on material misrepresentation in the application for the
insurance.
A. 180 days B. 1 year C. 3 years D. 5 years - ANS-B. 1 year
A primary advantage of a limited payment policy over a continuous premium whole life
policy is that a limit payment policy
A. guarantees renewability. B. includes nontaxable dividends. C. allows the policyowner
to pay the policy in a shorter period of time. D. is a nonparticipating contract paying
higher dividends that a continuous pay policy. - ANS-C. allows the policyowner to pay
the policy in a shorter period of time.
Under Pennsylvania's Uniform Request Provisions for accident and health insurance,
legal actions may NOT be brought against the insurer after a period of how many years
following the time written proof of loss was required to be furnished?
with 100% Correct Answers
Who may terminate a producer's appointment?
A. insurer B. insured C. producer D. policy owners - ANS-A. Insurer
Which of the following statements BEST describes a disability elimination period?
A. A time describe rather than a dollar deductible/ B. A benefit or utilization period. C. A
dollar deductible rather than a time deductible. D. A qualifying period - ANS-A. A time
deductible rather than a dollar deductible/
According to the Pennsylvania Health care Insurance Portability Act regulation, health
coverage for eligible individuals must be offered on what basis?
A. non-renewable B. guaranteed issue C. creditable coverage D. conditionally
renewable - ANS-C. Creditable renewable
If a license has been found to have committed any fraudulent or dishonest practice, the
insurance Commissioner may do all the following EXCEPT
A. assess a fine. B. revoke the license. C. place the license under supervision. D.
withhold the licensee's commission and/or fees. - ANS-D. withhold the licensee's
commission and/or fees.
An insurer would consider which of the following in determining whether to accept a
group life plan?
A. Grace period. B. Beneficiary. C. Average age. D. Dependents. - ANS-C. Average
age.
Which is NOT excluded in a long-term care policy?
A. Alcoholism B. Alzheimer's disease C. Non-cognitive mental disorders D. Treatment
caused by participation in criminal behavior - ANS-B. Alzheimer's disease
An insurer MUST offer a Long-Term Care Policy or certificate that
,A. has a nonforfeiture value. B. is subject to post claims underwriting. C. has no
increase in premium. D. can be canceled due to claims - ANS-B. is subject to post
claims underwriting
The MAJOR factor in determining the benefit amount paid under a disability income is
A. occupation. B. wages. C. age. D. gender. - ANS-B. wages
Under which circumstance would a business purchase life insurance?
A. to pay off a loan B. to expand the business C. to compensate executives D. to fund
employee healthcare - ANS-A. to pay off a loan
If an insured has multiple policies with one insurer that give the insured benefits
exceeding the company's allowable maximum, how much will the policies pay?
A. 50% of the loss is paid by each policy B. only the maximum benefit is payable C.
limits of both policies combined D. only the basic coverage amount - ANS-C. limits of
both policies combined
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured beneficiary die in the same accident B.
prevent creditors of a beneficiary from claiming any future death benefits payable C.
allow the insured to directly pay death benefit proceeds to a creditor D. establish the
payout of death benefits if the primary beneficiary dies before - ANS-B. prevent
creditors of a beneficiary from claiming any future death benefits payable
An individual who is NOT acceptable by an insurer at standard rates become of health,
habits, pr occupation is called a
A. rating risk. B. standard risk. C. preferred risk. D. substandard risk. - ANS-D.
substandard risk.
The Pennsylvania Insurance Department is responsible for all of the following EXCEPT
A. insurers B. producers. C. shareholders. D. Form approvals. - ANS-C. shareholders.
The MAIN purpose of insurance is to A. transfer risk. B. alter risk. C. retain risk. D.
seduce risk - ANS-A. transfer risk.
The statement option that allows proceeds to remain with the insurer and the earnings
to be paid to the beneficiary on a monthly basis is called
A. interest only. B. lump sum. C. fixed period. D. fixed amount. - ANS-A. interest only.
, An intentional false written or oral statement made by a producer for the purpose of
replacing an existing policy to the detriment of the insured is
A. twisting. B. determination. C. misrepresentation. D. illegal inducement. - ANS-A.
twisting.
Group long-term disability benefit amounts are usually limited to what percentage of the
participant's income?
A. 50 B. 60 C. 90 D. 100 - ANS-B. 60
Which of the following is a payment method for setting a health care provider claim?
A. Settlement. B. Prepaid basis. C. Fee-for-service. D. Premium payment. - ANS-C.
Fee-for-service.
What is disability insurance provision that specifies the condition under which the
insured is automatically qualified for benefits regardless of their ability to work?
A. Total disability. B. Partial disability. C. Residual disability. D. Presumptive disability. -
ANS-D. Presumptive disability.
A. the insured's need for some degree of ongoing medical treatment of care B. the
insured's inability to perform one or more but not all of his or her essential duties C. the
insured's inability to perform at least two or not at all of his or hers essential duties D.
the long-term or chronic, but not completely debilitating, nature of the insured's medical
condition - ANS-B. the insured's inability to perform one or more but not all of his or her
essential duties
EXCEPT for fraud, what is the time limit after issue for an insurer to deny an individual
health insurance claim based on material misrepresentation in the application for the
insurance.
A. 180 days B. 1 year C. 3 years D. 5 years - ANS-B. 1 year
A primary advantage of a limited payment policy over a continuous premium whole life
policy is that a limit payment policy
A. guarantees renewability. B. includes nontaxable dividends. C. allows the policyowner
to pay the policy in a shorter period of time. D. is a nonparticipating contract paying
higher dividends that a continuous pay policy. - ANS-C. allows the policyowner to pay
the policy in a shorter period of time.
Under Pennsylvania's Uniform Request Provisions for accident and health insurance,
legal actions may NOT be brought against the insurer after a period of how many years
following the time written proof of loss was required to be furnished?
