NWM EXAM QUESTIONS AND ANSWERS
An annuity contract may be returned for a full refund during the - Answer -free look
period
which statement regarding the life insurance premium for a children's rider is true?
a) decreasing premium as each child becomes an adult
b) premium remains the same no matter how many children
c) increasing premium as additional children are born
d) no premium is normally charged for a children's rider - Answer -b) premium remains
the same no matter how many children
which of these would NOT be a valid reason to add the waiver of premium rider to a life
insurance policy?
a) prevents the policy from lapsing in the event of total disability
b) premiums waived by the insurer do not have to be repaid by the policyowner
c) policy's cash value would still increase as policy premiums are being waved
d) it allows a policy loan to cover premium payments if the policyowner becomes totally
disabled - Answer -d) it allows a policy loan to cover premium payments if the
policyowner becomes totally disabled
Misrepresenting pertinent policy provisions relating to coverage after a loss is
a) A concealment in insurance application
b) An unfair claims settlement practice
c) An unfair discrimination between individuals
d) A violation of the principle of adhesion - Answer -unfair claims settlement practice
An applicant submits a life insurance application where an investigative consumer
report is used in the underwriting process. Which of these statements is true?
A) applicant can determine which items in the report to leave out
B) insurer can obtain a copy of this report without the applicant's knowledge
C) fee for the report is typically paid by the applicant
D) applicant has a right to receive a copy of the report - Answer -Applicant has a right
to receive a copy of the report
Which statement is true concerning the entire contract provision in an individual
accident and health insurance policy is TRUE?
a) the agent can waive policy provisions and change the policy with the insurer's
consent
b) the agent has the authority to waive the policy's provisions under certain conditions
c) the agent has the authority to change the policy under certain conditions
d) the agent does not have the authority to change the policy or waive its provisions -
Answer -the agent doesn't have the authority to change the policy or waive its
provisions
, The initial premium for a life insurance policy is typically paid in what way?
a) the applicant mails it the insurer after the policy has been approved
b) it is typically obtained by the producer and forwarded to the insurer
c) it is typically forwarded to the insurer by the applicant
d) the producer pays it from any commissions received - Answer -it is typically obtained
by the producer and forwarded to the insurer
Ken is age 65 and has 2 years until he receives Social Security retirement income
benefits. At his current age, which is true about Medicare Part A Hospital Insurance
coverage?
a) it is available through application to Homeland Security
b) it is available through application to social security
c) he is automatically enrolled through his employer
d) he is not eligible until he starts receiving social security retirement income - Answer -
it is available through application to social security
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
Answer -31 days
A source of supplemental income for a life insurance policyowner can be derived from
the
- cash value
- payor benefit
- consideration
- face amount - Answer -cash value
all of these duties that a producer may be required to perform when delivering an
insurance policy EXCEPT
acquire a statement of good health signature
gather the initial premium
review policy with applicant
leave a conditional receipt with client - Answer -Leave a conditional receipt with the
client (normally given prior to a policy being issued)
a domestic insurance company in Virginia MUST
a) be formed under virginia insurance laws
b) own real estate in virginia
c) write insurance on risks located only in virginia
d) honor the charter of the National Association of Insurance Commissioners (NAIC) -
Answer -be formed under Virginia Insurance laws
An annuity contract may be returned for a full refund during the - Answer -free look
period
which statement regarding the life insurance premium for a children's rider is true?
a) decreasing premium as each child becomes an adult
b) premium remains the same no matter how many children
c) increasing premium as additional children are born
d) no premium is normally charged for a children's rider - Answer -b) premium remains
the same no matter how many children
which of these would NOT be a valid reason to add the waiver of premium rider to a life
insurance policy?
a) prevents the policy from lapsing in the event of total disability
b) premiums waived by the insurer do not have to be repaid by the policyowner
c) policy's cash value would still increase as policy premiums are being waved
d) it allows a policy loan to cover premium payments if the policyowner becomes totally
disabled - Answer -d) it allows a policy loan to cover premium payments if the
policyowner becomes totally disabled
Misrepresenting pertinent policy provisions relating to coverage after a loss is
a) A concealment in insurance application
b) An unfair claims settlement practice
c) An unfair discrimination between individuals
d) A violation of the principle of adhesion - Answer -unfair claims settlement practice
An applicant submits a life insurance application where an investigative consumer
report is used in the underwriting process. Which of these statements is true?
A) applicant can determine which items in the report to leave out
B) insurer can obtain a copy of this report without the applicant's knowledge
C) fee for the report is typically paid by the applicant
D) applicant has a right to receive a copy of the report - Answer -Applicant has a right
to receive a copy of the report
Which statement is true concerning the entire contract provision in an individual
accident and health insurance policy is TRUE?
a) the agent can waive policy provisions and change the policy with the insurer's
consent
b) the agent has the authority to waive the policy's provisions under certain conditions
c) the agent has the authority to change the policy under certain conditions
d) the agent does not have the authority to change the policy or waive its provisions -
Answer -the agent doesn't have the authority to change the policy or waive its
provisions
, The initial premium for a life insurance policy is typically paid in what way?
a) the applicant mails it the insurer after the policy has been approved
b) it is typically obtained by the producer and forwarded to the insurer
c) it is typically forwarded to the insurer by the applicant
d) the producer pays it from any commissions received - Answer -it is typically obtained
by the producer and forwarded to the insurer
Ken is age 65 and has 2 years until he receives Social Security retirement income
benefits. At his current age, which is true about Medicare Part A Hospital Insurance
coverage?
a) it is available through application to Homeland Security
b) it is available through application to social security
c) he is automatically enrolled through his employer
d) he is not eligible until he starts receiving social security retirement income - Answer -
it is available through application to social security
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
Answer -31 days
A source of supplemental income for a life insurance policyowner can be derived from
the
- cash value
- payor benefit
- consideration
- face amount - Answer -cash value
all of these duties that a producer may be required to perform when delivering an
insurance policy EXCEPT
acquire a statement of good health signature
gather the initial premium
review policy with applicant
leave a conditional receipt with client - Answer -Leave a conditional receipt with the
client (normally given prior to a policy being issued)
a domestic insurance company in Virginia MUST
a) be formed under virginia insurance laws
b) own real estate in virginia
c) write insurance on risks located only in virginia
d) honor the charter of the National Association of Insurance Commissioners (NAIC) -
Answer -be formed under Virginia Insurance laws
