Mississippi Life and Health Insurance Questions & Answers(SCORED A+)

A business overhead expense policy : - ANSWER covers business expenses such as rent and utilities A provision in a life insurance policy that pays the policy owner an amount that does not surpass the guaranteed cash value is called the : - ANSWER Policy loan provision After and insured gives notice of loss what must he/she do if the insurer does not furnish forms - ANSWER File written proof of loss W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) - ANSWER Immediate annuity Which of these statements accurately describes the Waiver of premium provision in an accident and Health policy - ANSWER premiums are waived after the insured has been totally disabled for a specified time period K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insureds. This type of policy is considered - ANSWER guaranteed renewable A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as: - ANSWER representation A major medical policy typically contains a provision that requires the insurer to pay only part of the loss, when the balance is paid by the insured. This provision is called : - ANSWER Coinsurance Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? - ANSWER Ordinary income tax and a 10% tax penalty for early withdraw which of the following life insurance policies combine term insurance with an investment element? - ANSWER Universal Life Which Federal law allows an insurer to obtain an inspection report on a potential insured? - ANSWER Fair Credit reposting Act A policy owner is able to choose the frequency of premium payments through what policy feature? - ANSWER Premium Mode Which of the following combination plans is designated to protect the insured from an unpaid mortgage balance upon premature death? - ANSWER Joint Life T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? - ANSWER Request of the change will be refused Which of these is considered a mandatory provision? - ANSWER Payment of Claims Which of the following is an important underwriting principle of group life insurance? - ANSWER Everyone must be covered in the group which of the following statements BEST defines usual, customary, and reasonable (UCR) changes? - ANSWER The maximum amount considered eligible for reimbursement by an insurance company under a health plan. Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? - ANSWER Aleatory What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? - ANSWER Family Maintenance Policy Which of the following statements is correct regarding an employer/employee group health plan? - ANSWER The employer receives a master policy and the employees receive certificates. A variable Annuity has which of the following characteristics? - ANSWER Underlying equity investments Which of the following are not managed care organizations? - ANSWER Medical Information Bureau (MIB) Which of the following actions require a policy owner to provide proof of insurability in an Adjustable Life Policy? - ANSWER increase face amount Long-Term Care policies sold in Mississippi may exclude coverage for pre-existing conditions for? - ANSWER 6 months What type of policy covers 2 lives and pays the face amount after the first one dies? - ANSWER Joint Life Policy