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150 life, accident and health questions Mutiple choice all need to be answered correctly
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A policyholder should provide notification of a claim to an insurer within how many days of the loss?
A.
B.
C.
D.
5 days
10 days
20 days
45 days
Which of the following statements is TRUE regarding a 1035 exchange?
A.
B.
C.
D.
Because of the complexity, 1035 exchange are seldemly done
An exchange for another policy or annuity generally avoids any taxes
An exchange for lessor value policy or annuity generally avoids any taxes
Whether or not life insurance premiums are deductible depending on the income of the policy
holder
Under the health insurance portability and accountability act, (HIPAA), the employee MUST verify
credible coverage from previous employer so that the
A.
B.
C.
D.
Employees benefits still owed can be claimed
Employee cannot be excluded from the new employer health plan
New health insurance carrier will have a clear record of anu chronic conditions that exist
Employees waiting period for coverage of a preexisting condition can be reduced under the new
employee heath plan
A life insurance producer may assist as a field underwriter for an insurer by
A.
B.
C.
D.
Taking accurate information regarding an applicants personal data
Provide the rate and premium information with the completed application
Arranging for an applicants medical examination required for insurance purposes
Reporting unusual characteristics of the applicant that might affect the underwriting decision
Who may terminate a producers appointment
A.
B.
C.
D.
The insurer
The producer
The policy owner
The insured
An individual who knowingly submits a false statement in support of a claim may be found guilty of
A.
B.
C.
D.
Coercion
Fraud
Misrepresentation
Twisting
The grace period is a period of time
A. Between the death of the insured individual and the payment of the benefits
B. After the premium is paid and before the policy is issued
C. After the premium is received and before the policy is issued
D. After the premium is due but while the policy remains in force
If an insurer does NOT pay a covered individual health insurance claim within the time period, the
insured may file a legal action against the insurer for up to how many years after proof of loss was
required to be furnished?
A.
B.
C.
D.
1 year
2 year
5 year
7 year
Health insurance polices that can be purchased to cover specific low frequency diseases are
A.
B.
C.
D.
Group health plans
Group specific policies
Individual health policies
Individual limit policies
A producer who knowingly submits a false statement in support of a claim may be found guilty of
A.
B.
C.
D.
Fraud
Coercion
Illegal inducement
Misrepresentation
Health insurance policies that induce the benefit amount for a specific commonly preformed operations
are
A.
B.
C.
D.
Non scheduled benefit plans
Limited medical policies
Scheduled benefit plans
Major medical policies
What policies only cover certain types of benefits
A.
B.
C.
D.
Limited benefits
Blanket insurance
Guarantee benefits
Comprehensive benefits
Which type of annuity contract includes an interest rate adjustment that can cause the surrender value
to fluctuate in response to economic conditions if the owner surrenders the contract within a specific
time period?
A.
B.
C.
D.
Variable annuity
Qualified annuity
Tax-sheltered annuity
Market-value adjusted annuity
An insurers intentional relinquishment of a known right
A.
B.
C.
D.
An esstoppel
A privilege
A wavier
A choice
Long-term care polices cover expenses for care when the insured CANNOT perform all of the following
activities of daily living EXCEPT
A.
B.
C.
D.
Shopping
Toileting
Transferring
Dressing
A physician submits claim information prior to treating a patient for a particular procedure in order to
find out if the procedure is covered. This is referenced to as a
A.
B.
C.
D.
Pre-certification
Concurrent review
Benefit checking
Claim submission
A specific coverage plan would provide coverage for which of the following
A.
B.
C.
D.
Cancer
Broken leg
Pneumonia
Vasectomy
A point of service (POS) plan is an example of
A.
B.
C.
D.
A preventive care provider
A managed care plan
A preferred provider organization
An exclusive provide organization
What is a producers apparent authority
A.
B.
C.
D.
Authority required to execute express authority
Authority specifically granted to the producer
Powers the public expert producers to have
Powers inferred but not written
Individual who continue to work after the age of 65 and keep the group health insurance
A.
B.
C.
D.
Need supplementary coverage
Have Medicare as their primary payer
Have Medicare as the second payer
Are not eligible for Medicare coverage
Which of the following is a characteristic of a contract of adhesion
A.
B.
C.
D.
Each party is entitled to rely on others representations
The insurer agrees to pay a stated sum regardless of loss
The term must be accepted or rejected in full
The insurers obligations are dependent upon certain acts of the insured individual
When advertising the identity of the insurer shall be
A.
B.
C.
D.
Capitalized
Generally secure
Guaranteed
Clearly identified
How are the benefits treated for tax purposes if an individual is receiving disability benefits from a group
policy paid for by the employer
A.
B.
C.
D.
They are not taxable
They can be deducted from gross income
They are taxable income
They are only subject to Social security taxes
Which form of insurer has shareholders?
A.
B.
C.
D.
Reciprocal company
Mutual company
Stock company
Fraternal society
An insured has a policy with a cash value of $1,500 a death benefit of $5,000 and an outstanding loan of
$500. How much money will the insured receive under the cash surrender value option?
A.
B.
C.
D.
$500
$1,000
$1,500
$4,500
A single contract for group insurance issued to an employer is known as
A.
B.
C.
D.
A group policy
A master policy
An employer policy
A certificate policy
A producer who knowingly solicits new insurance risks by an insolvent insurer is guilty of
A.
B.
C.
D.
Defamation
Enticement
Forgery
Fraud
Who of the following is required to be licensed as an insurance producer?
A.
B.
C.
D.
An underwriter at an insurer
An officer or director of a licensed insurer
An administrator of a group plan
An individual selling a policy for commission
Human life value approach measures which of the following?
A.
B.
C.
D.
Total lifetime earnings
Total lifetime benefits
Total lifetime family needs
Total lifetime dividends
In addition to the actual policy, an entire contract includes which of the following?
A.
B.
C.
D.
Clauses
Credit reports
Provisions
The application
Under the grace period, an insured submits a $300 claim for medical expenses, the insurer notes that
the insured has a past due balance of $100, and as a result, the insurer only pays $200, which of the
following uniform optional provisions covers situations
A.
B.
C.
D.
Renewability
Payment claims
Unpaid premium
Payment actions
A general report used during the health insurance underwriting process that may provide information
regarding the applicants morals, lifestyle and financial background, including a credit report, is referred
to as the
A.
B.
C.
D.
Medical information bureau report
Consumer investigation report
Attending physician statement
Agents report
How often must a report of the value of a universal policy be sent?
A.
B.
C.
D.
Monthly
Annually
Quarterly
Semi-annually
Who has the right to nonforfeiture values in an annuity
A. Beneficiary
B. Policyowner
C. Insurer
D. Employer
When an individual schedules regular examinations, which of the following risk management techniques
is being used?
A.
B.
C.
D.
Risk sharing
Risk transfer
Risk reduction
Risk avoidance
An individual who acts on behalf of an insurer to solicit an insurance contract is known as a
A.
B.
C.
D.
Broker
Producer
Counselor
Principal
A whole life policy is replaced with an annuity without incurring a tax penalty, this is referred to as
A.
B.
C.
D.
A cross-purchase plan
An endowment contract
A transfer value
A 1035 exchange
All of the following occurrences may result in license revocation EXCEPT
A.
B.
C.
D.
Producing an inadequate amount of new premiums
Having been convicted of a felony
Forging another’s name to an application for insurance
failing to meet court ordered child support obligations
which of the following is the form of risk entity chooses to set aside funds to be self-insuring
A.
B.
C.
D.
retention
avoidance
control
transfer
Accident and health insurance protects the insured against financial loss caused by which of the
following?
A.
B.
C.
D.
Suicide
Bodily injury
Loss of a job
Injury on the job
Events or the conditions that increase the likelihood of an insureds loss are referred to as
A. Perils
B. Hazards
C. Exposure
D. Risks
The consolidated omnibus reconciliation Act (COBRA) of 1985 allows employees to
A. Make a mid-year change with qualifying events
B. Change plan elections upon involuntary termination of employment
C. Continue their group medical insurance by self-paying the premiums after employment has
been terminated
D. Elect to receive a cash stipend in lieu of medical coverage when their preferred medical provider
is not covered by their group medical plan
If a business pays premiums as a deductible expense for an employee disability income policy, what is
the tax consequence to the employee?
A.
B.
C.
D.
The benefits are taxable
The benefits are not taxable
The premium must be paid with after-tax dollars
The premium cannot be deducted for a business expense
If a business pays premiums as a deductible expense for an employee disability policy, what is the tax
consequence to an employee
A.
B.
C.
D.
The benefits are taxable
The benefits are not taxable
The premium must be paid with after tax dollars
The premium cannot be deducted as a business expense
An applicant purchases a life insurance policy to avoid the forced sale of assets upon his death, what is
this action called?
A.
B.
C.
D.
Buy-selling fund
Capital retention
Capital liquidation
Estate conversation
The insured has dental coverage through their employers group plan, the employer pays the entire
premium, which statement is correct about the tax free treatment of the premiums and any benefits
that the insured receives?
A.
B.
C.
D.
Insured must report the premium as an ordinary income
Insured must report any benefit as ordinary income
Employer can deduct the premium as a business expense
Employer can deduct any benefit paid as a business expense
An insured has elected to receive $20,000 per month until the principal an interest on his wife’s life
insurance policy has been paid out. The insured has elected which option?
A. Interest only
B. Fixed amount
C. Fixed period
D. Life income
Renewable term life insurance guarantees the policy can be renewed
A.
B.
C.
D.
To a predetermined date or age, regardless of the insured health status
To a predetermined date or age based on the insured providing evidence of insurability
At the insured option at the same premium with no changes in death or benefits to age 100
An unlimited number of times, even if the insured lives beyond her life expectancy
Jon, an insurance producer has a client walk into his office and ask about changing his health insurance
plan. The client explains that he does NOT like his current plans high premium and would like to switch
to another plan with lower cost. What should Jon explain to his client
A.
B.
C.
D.
He cannot help him because that would be replacement and replacement is illegal
He is a no/loss no gain state so it does not matter what plan he chooses
Replacing a plan has risks and coverage gaps should be considered
The insurer will penalize him for canceling the policy
When a beneficiary inherits a traditional; IRA, which of the following is TRUE about the taxation when
the money is withdrawn? The beneficiary pays
A.
B.
C.
D.
No tax
An estate tax
Capital gains tax
Income tax
When a policy owner requests a partial surrender from her universal life policy she is requesting which
of the following?
A.
B.
C.
D.
Cash withdrawal
A loan from the policy
Surrender of the policy
Decrease in the coverage amount
Liquidity in a cash value life insurance policy is demonstrated by
A.
B.
C.
D.
Allowing the revocable beneficiary to decrease the coverage to receive a refund
Permitting the policy owner it request a loan against the cash value of the policy
Converting the policy from the whole life term to receive the balance of cash value
Allowing the policy beneficiary to receive prior to death by creating reassignment
Why do comprehensive dental plans usually provide routine dental care services without deductibles or
coinsurance?
A.
B.
C.
D.
To simplify the claims process
To encourage preventative dental
Because the administrative costs exceed the total cost of the care
Because these fees are incorporated by the dentists in other procedures
Which of the following statement is TRUE about the insurers rights to screen applicants for HIV
A.
B.
C.
D.
An insurer can require a blood test for HIV
An insurer can ask about sexual orientation
An insurer can ask about risking sexual behavior
An insurer can use the investigative consumer to determine sexual orientation
Which of the following individuals is required to be licensed as an insurance counselor in the state of
Michigan?
A.
B.
C.
D.
An insurer officer or director
Sn individual selling insurance policies
A person providing insurance advice to a person or business for a fee
An employee working for an independent insurance performing noninsurance duties
The type of care that is continuously 24-hours provided by licensed medical professionals under the
direct supervision of a physician is
A.
B.
C.
D.
Custodial care
Intermediate nursing
Skilled nursing care
Respite care
Which of the following is a common exclusion from coverage found in accident and health policies
A.
B.
C.
D.
Coordination of benefits
Emergency room coverages
Flu and pneumonia
Self-inflicted injuries
One of the purposes pf the formation of the medical information bureau (MIB) was to
A.
B.
C.
D.
Reduce the potential of fraud
Review the quality of health care service
Create information resource for nonmedical personnel
Provide accurate information to a consumer regarding medical procedures and practices
What types of insurance is designed to fill the gap following guidelines regarding deductibles,
copayment requirements, and benefit period
A.
B.
C.
D.
Medicare part A and B
Medicare part C
Medicare part D
Medicare supplement insurance
What is the period of time referred to that MUST lapse before monthly disability income benefits begin
A. Probationary period
B. Elimination period
C. Conversion period
D. Holding period
How does a graded premium whole life policy differ from a modified premium whole life policy?
A.
B.
C.
D.
It increases the premium annually during the first several years of the policy
It increases the premium annually for the duration of the policy m
It increases the premium once during the duration of the policy
It has a lower premium for the duration of the policy
Disability polices MOST often pay benefits in the form of
A.
B.
C.
D.
An annuity
Periodic income
A lump sum reimbursement for wage lost
A lump sum payment based on projected income
Two parties in a binding agreement within the eyes of the law are requires
A.
B.
C.
D.
Instance which allows attorney to sign the contract for the principal party
Understanding the contract can be changed at any time
Instances which allow for minor to sign
An understanding of the contract
Dependent children can be covered under an individual group plan up to what age
A.
B.
C.
D.
18
19
25
26
When underwriting an individual health insurance policy, the underwriter will NOT consider the
applicants
A.
B.
C.
D.
Material status
Occupation
Zip code
Age
Mrs. Smiths doctor told her that she had arthritis in both legs, Mrs. Smith then sees a physical therapist
who tells her she needs to physical therapy and will need a wheel chair for a few months. What part of
Medicare insurance will cover all of these services?
A.
B.
C.
D.
Part A
Part B
Part A and B
Part A,B,and C
If a producer has completed 21 hours of continuing education, but no ethics credits, how many ethic
credits Must be completed to keep the license active?
A. 1
B. 3
C. 6
D. 12
Blood tests to detect the presence of Human Immunodeficiency Virus (HIV) are commonplace. Laws
have been passed allowing insurance companies to
A.
B.
C.
D.
Share positive HIV information with other entities
Call the applicant if the HIV tests is positive
Require HIV testing at the applicants expense
Deny coverage to an individual with HIV
In order to save premiums, a life insurance policy can legally be back dated up to
A.
B.
C.
D.
3 months
4 months
6 months
12 months
Which of the following is generally covered in a major medical plan
A.
B.
C.
D.
Cosmetic surgery
Skilled nursing care
Intentional injuries
Infertility treatment
In a life insurance contract, warranties are considered to be
A.
B.
C.
D.
Any statement made by the applicant
The same as a representation
Grounds to void a policy
Absolute true statement
HIPAA provides that the 10% excise tax for early withdrawal from IRAs will not apply to the extent a
withdrawal is used for medical expenses that exceed what percentage of the individuals adjusted gross
income
A.
B.
C.
D.
5.0%
6.5%
7.5%
8.0%
Which of the following is described when a selected group of practitioners, in a certain area, agrees to
provide services at a pre-arranged cost on a fee free-for service basis
A.
B.
C.
D.
Preferred provider organization
Indemnity organization
Risk purchasing group
Coalition group
Which of the following statement divided options would an insurer invest In the policy owners money
and interest earning to the initial amount of the dividends as such earnings accrue?
A.
B.
C.
D.
Accumulation at an interest option
Paid-up additions option
Cash dividend option
Reduced premium dividend options
Under long-term care insurance, which of the following must an insurer offer to each policyowner at the
time of purchase
A.
B.
C.
D.
Daily minimum benefits levels
An inflation protection feature
Lifetime minimum benefit feature
A decrease in annual benefit levels
Which of the following services is excluded from coverage under medical health insurance
A.
B.
C.
D.
Custodial care
Home health care
Hospice care
Blood transfusion
In which of the following policies is the insured covered to age 100 and the owner pays a level premium
throughout the duration of the policy
A.
B.
C.
D.
Renewable term policy
Straight whole life policy
Paid-up whole life policy
Single premium
One major benefit of the noncontributory health insurance plan helps avoid which of the following?
A.
B.
C.
D.
Adverse selection
Tax exclusion
High premiums
Paying a claim
A group that is eligible for insurance and is comped of several employees combining their work for
insurance coverage is
A.
B.
C.
D.
An individual employer group
An alumni group
A multiple employer trust
A labor union
Title XVIll if the social security act outlines
A. Medicare provisions
B. HMO guidelines
C. IRA requirements
D. Federal life insurance regulations
When managing a health insurance plan for a group the insurers administrative cost for each insured
person is
A.
B.
C.
D.
Varies among the group members
Equals the cost of the insuring each member individually
Is less then the cost if each member was individually matured
Is more then the cost if each member was individually insured
A policy may contain provisions excluding or restricting coverage as specified in the event of death
under all of the following EXCEPT
A.
B.
C.
D.
Fare paying passenger
War, or act of war
A licensed pilot of a personal aircraft
Suicide
Which of the following allows for a multiple of the face amount to be paid if the insured does because of
an accident
A.
B.
C.
D.
Accidental death
Accelerated death benefit
Term rider
Cost of living rider
Falsifying the terms, benefits, advantages or conditions of an insurance policy is an example of which of
the following
A.
B.
C.
D.
Misrepresentation
Concealment
Coercion
Forgery
When the insured gives birth, coverage for eligible newly born children consists of coverage of injury or
sickness including
A.
B.
C.
D.
Delivery expenses
Mothers lost wages
Birth abnormalities
Mothers hospitalization
A producer that presents a claim for payment which contains a false information is guilty of
A.
B.
C.
D.
Deformation
Enticement
Forgery
Fraud
Jacks long-term care insurance policy is most likely to provide which of the following benefits
A.
B.
C.
D.
$200 a day
$10,000 per person
$50,000 per accident
$1,000,000 combined single limit
What medical plan REQUIRES the subscriber to choose a primary care physician (PCP) who authorizes
referrals also known as a “gatekeeper system”?
A.
B.
C.
D.
HMO
PPO
Medicare supplement
Point of service (POS)
Group Disability Income insurance usually involves
A.
B.
C.
D.
Higher premiums than individual disability policies
Providing benefits for nonoccupational illnesses and injuries
A requirement that all employees participate
Workers who are individually uninsurable because of the high-risk occupations
An individual withdrawal before the age 59 ½ from a qualified plan is taxed an additional penalty of
what percentage?
A.
B.
C.
D.
5%
10%
25%
50%
A Medicare supplement policy is best described as
A.
B.
C.
D.
A blanket policy
A limited policy
An accident-only policy
A specified disease policy
Which of the following circumstances may cause policy premiums to be higher than the standard
premiums
A.
B.
C.
D.
Agent misquotes the price
The insured appears unhealthy
Insured does not meet certain requirements
Insured does not complete the application completely
Which of the following elements of insurable risks allows the insurance company to exclude nuclear
events of war from coverage?
A. Randomly selected exposure
B. Definite and measurable
C. Large loss exposure
D. Not catastrophic
A disability income benefit is intended to
A.
B.
C.
D.
Provide cash payments for living expenses
Provide benefits for nursing home expenses
Provide annuity
Paty for non-reimbursable expenses
Which of the following long term disability clauses states that an insured are considered totally disabled
when they CANNOT preform the major duties of a gainful occupation for which they are reasonably
suited because of education and training
A.
B.
C.
D.
Partial disability
Presumptive disability clause
Regular occupation clause
Any occupation clause
All of the following retirement plans qualify for federal income tax deduction except
A.
B.
C.
D.
Keogh Plan for non-incorporated business
Simplified Employee pension plans
Traditional IRA
Roth IRA
To receive proceeds from a death benefit, a minor
A.
B.
C.
D.
Must be related to the insured
Can only be named as a contingent beneficiary
Must be at least 16 years old
Must have an appointed guardian
Which of the following is the specific period when the insured may still make payment for the
continuance of the policy after the premium payment is due?
A.
B.
C.
D.
Grace period
Late payment period
Elimination period
Reinstatement period
The purpose of life and health insurance guarantee association act is
A.
B.
C.
D.
A requirement to pay all claims
To allow purchasing insurance across state lines
To promote higher standard of quality healthcare
To protect against failure of contractual obligations
Which is not elected in a long-term care policy?
A. Alcoholism
B. Alzheimer’s disease
C. Non-cognitive metal disorders
D. Treatment caused by participants in criminal behavior
By requiring the insured to get the insurers prior authorization for dental treatment, the insurer can
control costs by
A.
B.
C.
D.
Avoiding unnecessary treatment and encouraging less expensive options
Compelling the insured to choose the least expensive treatment
Informing the insured of the benefits that are available
Transferring more of the cost to the insured
At the time of an insureds death, a per capita distribution of policy proceeds are paid
A.
B.
C.
D.
The estate of the deceased beneficiaries
The primary beneficiaries children if the primary has predeceased the insured
All of the primary and contingent beneficiaries in equal installments
The name living primary beneficiary
The PRIMARY difference between non cancellable policy and a guaranteed renewable policy is that the
only with noncancellable policy can the insurer
A.
B.
C.
D.
Retain the right to refuse to renew the policy at a certain age
Cancel for excessive claims
Allow the renewal of policy for 5 years if the insured is over the age of 64
Never raise premiums
What happens when multiple disability policies are held from the same insurer in excess of the
maximum limit of indemnity
A.
B.
C.
D.
The excess insurance is valid and payable at the time of claim
The regular insurance is void and the premiums are returned to the insured
The excess insurance is void and excess premiums are returned to the insured
The regular and excess insurance are void and all premiums are returned to the insured
Which of the following is an example of a presumptive disability
A.
B.
C.
D.
Loss of a hand
Loss of one foot
Loss of hearing
Loss of three toes on one foot
Which of the following is a characteristic of a term life policy?
A.
B.
C.
D.
The price will be locked in for awhile for the of the insured
The initial premium will be lower than a standard whole life policy
The policy will protect the insured for the entire life, regardless of age
The policy holder can make a loan against the policy as a cash value builds
A life insurance rider which reimburses expenses incurred in a convalescent or bursting home facility is
A.
B.
C.
D.
Disability
Long-term care
Accidental death
Cost of living
The cost associated with mortality for a life insurance Policy, with all other factors being equal would be
higher if the insured were
A.
B.
C.
D.
Educated
Older
Single
Younger
What is protected by the Gramm-Leach-Billey act and chapter 5 of the Michigan insurance code
A.
B.
C.
D.
Consumers finical information
Third party claimants rights
Companies statistical data
Extended policy coverage
All of the following are purposes of an annuity EXCEPT
A.
B.
C.
D.
An annuity is designed to create an estate
An annuity is designed to liquidate an estate
An annuity is designed to disrupt accumulated principal
An annuity is designed for tax-deferred growth of principal
Which of the following is a provision in an interest-sensitive life policy which allows policyowners to
withdrawal the policy cash value interest free?
A.
B.
C.
D.
Partial surrender
Automatic premium loan
Wavier of premium
Spendthrift clause
Which insurance product is regulated by the United States Securities and Exchange commission and the
state of Michigan
A.
B.
C.
D.
Adjustable life insurance
Universal life insurance
Variable life insurance
Whole life insurance
Which type of group has a constitution and bylaw, is organized and maintained in good faith for the
purpose other than obtaining insurance, and has insurance for the purpose of covering members and
their employees
A. Credit insurance group
B. Multiple employer group
C. Association of labor group
D. Employee or individual employer group
According to the Michigan insurance code, which of the following MUST a producer do when replacing a
life insurance policy
A. Notify the beneficiaries of all of the policies or annuity contracts proposed to be replaced
B. Notify the insurer whose policy is being replaced, but not the insurer replacing the policy
C. Submit to the replacing insurer a list of all the life insurance policies or annuity proposed to be
replaced
D. Forward the signed and completed disclosure statement to the replacing insurer and not
provide the applicant with a copy
In a whole life policy, the amount of pure insurance protection is the policies face value minus the cash
value, when the cash value increases, what happens to the pure insurance protection and the face
value?
A.
B.
C.
D.
The pure insurance protection and face value increase
The pure insurance protection and face value remain the same
The pure insurance protection decreases but face value increases
The pure insurance protection decreases but the dace value remains the same
The concept of indemnity states that the insurance company should restore
A.
B.
C.
D.
a loss that is unmeasurable
the insureds loss in whole or in part
the loss only if it pertains to an accident
the loss only if it pertains to life insurance
in most cases, enrollment in which Medicare coverage part requires no premium and is automatic for
individuals who receive social security
A.
B.
C.
D.
part A
part B
part C
part D
a contracted marketing firm ask the agency to provide their clients policy numbers for use in marketing
campaign, according to the Michigan insurance code, what is the agency required to do about this
request
A.
B.
C.
D.
fully comply with the legal request
do not comply with this request as doing so is illegal
gain permission form the department before complying
direct them to the insurance company for the information ‘
six years after a disability policy, was issued, an insured changed occupations from ,less hazardous to
more hazardous and failed to notify the insurer. Under the change of occupation provision if a claim is
filed the insurer
A. pay no benefit since the insured failed to inform the insurer of the change in occupation
B. pay the benefit as contracted for since the policy is over 2 years old
C. reduce the benefit to an amount the actual premium would have purchased at the more
hazardous occupation
D. reduce the payment by the exact amount of the premium underpayment
two business partners own life insurance on each other. If one party dies which of the following contract
allows the surviving partner to use the death benefit to purchase the deceased owners interest
A.
B.
C.
D.
buy-sell agreement
key employee life insurance
business continuation
accidental death
a corporation is owned by the three individuals who hold significant positions in running the business,
which of these policies will pay the business a monthly benefits to cover the expenses of hiring a
replacement if one of the partners is seriously injured and unable to work?
A.
B.
C.
D.
Key person life insurance
Business overhead expenses’
Comprehensive overhead expenses
Key person disability insurance
The major factor in determining the benefit under a disability income policy is
A.
B.
C.
D.
Age
Gender
Occupation
Wages
Upon the death of an insured individual;, what does life insurance guarantee to deliver to the
beneficiary
A.
B.
C.
D.
An annuity
A dividend option
A final expense fund
A specific fund of money
A producers fiduciary responsibility includes which of the following activities?
A.
B.
C.
D.
Recording the receipt and distribution of premiums due to the insurer
Properly remunerating persons who furnish leads on prosects
Providing needed insurance to prospects insured through any sources that are available
Guaranteeing payment to insureds for losses covered by policies that the producer sold
If an annuitant dies during the accumulation period, his or her beneficiary will receive
A.
B.
C.
D.
The greater of the accumulation cash value or the premium total premiums paid
The lesser of the accumulation cash value or the total premiums paid
No monetary funds
Both the accumulated cash value and total premiums paid
Which rider allows the husband or wife of the insured to be added to primary insureds policy?
A.
B.
C.
D.
Level term rider
Spouse term rider
Guaranteed insurability rider
Accelerated death benefit rider
When would an attending physicians statement be appropriate for life insurance purposes?
A.
B.
C.
D.
As a matter of routine when the applicant signs the life insurance applicant
At the request of the insurer without knowledge or approval of the applicant
At the request of the insurance applicant to be submitted with life insurance application
At the request of the insurer when it could affect the underwriting decision with consent of the
application
A producer who diverts funds of an insurer may be found guilty of
A.
B.
C.
D.
Coercion
Fraud
Rebating
Twisting
Under the pre-existing conditions provisions, the term group[ health plan is defined as
A.
B.
C.
D.
An individual health insurance policy
An employee welfare benefit plan
Medigap
Part A of the social security act
If an insurer does NOT pay on a disability claim, how many days after the written proof of loss has been
furnished must the insured wait for legal action?
A.
B.
C.
D.
10
30
60
90
Which type of health insurance combines all of the basic medical expenses benefits into a single package
A.
B.
C.
D.
Group credit health insurance
Accidental death insurance
Comprehensive medical
Limited policies
An
