Life, Accident and Health Final Exam Questions With 100% Correct Answers

Life, Accident and Health Final Exam Questions With 100% Correct Answers Which of the following provides benefits for the treatment of gum disease? A. Endodontics B. Orthodontics C. Periodontics D. Prosthodontics - answerC. Periodontics The Insured and primary beneficiary die in a common accident. The insured dies at the scene and the beneficiary dies thirty six days later. To whom is the $250k death benefit paid? A. The State Department of Revenue B. The Contingent Beneficiary C. The tertiary beneficiary D. The primary beneficiary's estate - answerD. The primary beneficiary's estate A Sole proprietor can now deduct what percentage of his or her personal health insurance premiums? A. 0.5 B. 0.6 C. 0.75 D. 1 - answerD. 1 In all of the following situations the 10% premature distribution penalty is waived, EXCEPT: A. if the participant dies B. If they reach the age of 59 C. If they are disabled D. if they suffer a financial hardship - answerB. If they turn 59 When must a Buyer's Guide be provided to an insurance applicant? A.No later than time of policy delivery B. At time of application prior to premium collection C. At time of application just after premium collection D. Anytime after the home office underwriting begins - answerB. At time of application prior to premium collection Ted is only able to pay $25 per month for a life insurance policy. Which of the following policies would provide the greatest face amount of life insurance for this premium? A. Five year term life B. Ten Pay life C. An endowment D. Ordinary life - answerA. Five year term life Individual Disability income policies pay monthly benefits to an insured who is totally disabled. The benefits received by an insured are taxable if: A. The policyowner paid the premium B. The premium is payroll deducted C. The insured paid the premium D. The employer paid the premium - answerD. The employer paid the premium Many medical expense policies function on a reimbursement basis. All of the following are covered by a medical expense policy, EXCEPT: A. Routine Dental Treatment B. Diagnostic Testing Expenses C. Anesthesia Expenses D. X-Ray charges - answerA. Routine Dental treatment An accident and health policy is comprised of many provisions. The purpose of the coordination of benefits provision in group health insurance is to: A. Prevent profiting by owning an insurance policy B. Make the insured whole again following a loss C. Increase benefits for necessary surgery D. Reduce out-patient benefit payments - answerA. Prevent profiting by owning an insurance policy Jack owns a life insurance policy that requires that he pay premiums for a specified period only or until he dies, assuming this occurs prior to the end of the specified period. Which of the following types of policy does Jack possess? A. Limited Pay Life B. Variable life C. Straight Life D. Herbal Life - answerA. Limited Pay life The dismemberment benefit payable under an accidental death and dismemberment policy (AD&D) is known as the: Capital sum Principal sum Presumptive sum Municipal sum - answerCapital Sum Which of the following should a producer consider when replacing a health insurance policy? That there are no exclusions That the new cost is at least equal to or less That benefits are similar and no pre-existing coverage is lost That benefits are equivalent even if the cost of the new plan is a bit more expensive - answerThat benefits are similar and coverage for pre-existing conditions is not lost Permanent or continuous premium whole life insurance includes a policy loan provision. All of the following statements are true regarding this policy provision, EXCEPT: A policyowner need not pay off policy loans during the life of a contract A maximum fixed interest rate or variable rate on cash value borrowed is generally available If an unpaid loan exists when the insured dies, it will be subtracted from the face amount with the balance paid to the beneficiary A delay clause of twelve months is included in a policy loan provision - answerA delay clause of twelve months is included in a policy loan provision Whole life policies include several non-forfeiture values or options. What non-forfeiture option in this policy provides the greatest face amount of life insurance protection if selected? Surrender for cash Extended level term insurance Reduced paid-up insurance Fixed term option - answerExtended level term insurance Which of the following best describes an annuity payment option in which income is guaranteed in a specified amount of funds with the balance paid to a beneficiary if the annuitant dies? Cash refund annuity Fixed amount installment annuity Fixed period installment annuity Straight life annuity - answerFixed amount installment annuity Which of the following accurately describes an equity indexed annuity? It is a form of variable annuity It is a form of non-variable annuity It is a registered investment product It is a permanent insurance product - answerIt is a form on non-variable annuity The ABC Truck Company receives $187,000 from the key employee policy it purchased that covered one of their national sales managers. How will this benefit be looked upon from a taxation perspective? Taxable as ordinary income Not taxable as ordinary income The gains that exceed premiums pai