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LIFE, HEALTH, & ACCIDENT INSURANCE EXAM QUESTIONS AND ANSWERS
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LIFE, HEALTH, & ACCIDENT INSURANCE EXAM QUESTIONS AND ANSWERS
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LIFE, HEALTH, & ACCIDENTINSURANCE EXAM QUESTIONS AND
ANSWERS
Regarding an organizational license, what happens when a corporation is dissolved? -
Answer-The license is terminated
john applies for a variable annuity and does not request that the premiums be
immediately invested in a stock or bond portfolio. After the annuity is issued, John
returns the annuity contract to the insurer within the free look period. What will John
receive from the insurer? - Answer-The entire premium
Which of the following in NOT of the common personal uses for life insurance? -
Answer-Funding a buy-sell agreement
Which type of life insurance policy gives the policy owner the right to share in the
insurer's surplus? - Answer-Participating
The insured bought an annuity ten years ago. He will retire in five years. To determine
the value of his annuity, he must multiply the value of the "accumulation units" he owns,
times the value of the "separate account". This type of annuity is known as a - Answer-
Variable annuity
Medicare Part A begins automatically at age: - Answer-65
An individual license is considered terminated: - Answer-On the death of the licensee
Usually, in order to join a group insurance plan without proving insurability, an employee
must: - Answer-Join the plan during the enrollment period
A single deductible amount for all members of the same family and a right to single
family member deductibles is known as: - Answer-Family deductible
COBRA applies to employers with at least - Answer-20 employees
The policy provision which comes into effect when the insured and primary beneficiary
die in a simultaneous (common) accident with no evidence as to who died first is: -
Answer-Common disaster provision
Unless it is merely a statement of an expectation or a belief, a representation as to the
future is considered which of the following? - Answer-Promise
In group insurance the Certificates of Insurance are issued to: - Answer-The group
members
,What is a disability income policy that covers injuries suffered by an insured on or off
the job called? - Answer-An occupational policy
Twelve months ago, a man slipped and fell down a flight of stairs at his workplace. As a
result he has a paralysis for which he is not expected to recover. This 46 year old
person will probably be able to collect disability income benefits from: - Answer-Workers
Compensation
What must an insurer do who accepts an application from an agent who is not
specifically appointed by an insurer and then issues a policy from that application? -
Answer-Forward to the Insurance Commissioner a Notice of Appointment within 14
days of receipt of application
If one were to receive the principal sum benefit of death in a disability policy, the death
must occur: - Answer-Within a specified number of days after injury occurs
Which of the following is true regarding participation in a group health plan? - Answer-A
non-contributory group health plan must involve all members
An insurer owned by policyholders is a: - Answer-Mutual insurer
Why should a contingent beneficiary be named in a life insurance policy? - Answer-To
determine who receives the policy benefits if the primary beneficiary is deceased
When a family policy covers children, all of the following are true EXCEPT - Answer-
Evidence of insurability is required if coverage for children is permanent insurance
Each of the following terms is an important characteristic of a major medical policy,
EXCEPT: - Answer-Capitation
What would a person be guilty of who refuses to submit books and records to the
Commissioner? - Answer-Misdemeanor
An insured bought a $150,000 non-participating whole life policy many years ago. She
is 100 years old today. She has never borrowed from the policy, and has made all
premium payments when due. The policy cash value is: - Answer-$150,000
Accidental Death and Dismemberment insurance, which of the following would not be
considered accidental? - Answer-Employee requires abdominal surgery after food
poisoning in the lunch room
An association of industry specific employers who are joined together in order to qualify
for, or gain premium advantages, in group insurance is: - Answer-MET
, Which of the following is a true statement regarding the social security (OASHI)
program? - Answer-The program provides a minimum floor of income, and is meant to
supplement a retiree's own personal program
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which of the
following is a qualifying event? - Answer-Divorce
Which is NOT part of transacting insurance? - Answer-Establishing a list of clients
Which party has rights in a life insurance policy only after the death of the insured? -
Answer-The beneficiary
Unless the applicant indicates otherwise during the right-to-return period in an individual
annuity, the premium for a variable annuity would be invested only in: - Answer-Fixed
income investments and money market funds
HMO's are involved in all of the following EXCEPT: - Answer-Emphasizing the use of
specialty physicians
A person has a disability policy with the following definition of disability: "the inability to
perform any occupation for which the insured is suited through education, training,
experience or prior economic status." This is an: - Answer-Any occupation definition and
is very restrictive
If the financial loss on a certain group of people occurring over a certain period of time
defines the pricing of a disability policy, it is the pricing principle known as: - Answer-
Frequency
Terminally ill persons would need which of the following? - Answer-Hospice care
Who has the right to change life insurance policy beneficiaries? - Answer-The
policyholder
How is the Insurance Commissioner selected? - Answer-An election by the people
A person has paid $50,000 into a fixed annuity over 20 years. When he decides to
begin income payments the insurer calculates that he will receive $4,000 per year for
life, which means that he will receive a total of $100,000. In the first 10 years of
payments how much is taxable each year? - Answer-$2,000
Listed below are descriptions of four types of policies. Which is the term policy? -
Answer-The policy has a face amount of $100,000. Every five years, the premium paid
increases. After ten years, the policyholder stops paying premiums and the coverage
stops. The policy has no cash value
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