Practice exam: Learning mode on examfx for life and health
Practice exam: Learning mode on examfx for life
and health questions and answers 2024
Which of the following applies to partial disability benefits? -Answer- ✔Payment is
limited to a certain period of time.
(The partial disability benefit is typically 50% of the total disability benefit, and is limited
to a certain period of time.)
which is true about a spouse term rider? -Answer- ✔The rider is usually level term
insurance.
(The spouse term rider allows a spouse to be added for coverage. It is available for a
limited amount of time, typically expiring at age 65. A spouse term rider (just like any
other insured rider) is usually level term insurance.)
If one takes Social Security retirement benefits at age 62, what needs to be done at age
65 to qualify for Medicare? -Answer- ✔Nothing.
(Nothing needs to be done in this case. Medicare Part A and B will automatically be
effective the month you turn 65.)
An applicant for a health insurance policy returns a completed application to her agent,
along with a check for the first premium. She receives a conditional receipt two weeks
later. Which of the following has the insurer done by this point? -Answer- ✔Neither
approved the application nor issued the policy.
(When the agent receives the application and issues a conditional receipt, the insurer
has not yet approved the application and issued the policy.)
An applicant is discussing his options for Medicare supplement coverage with his agent.
The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What
is the insurance company obligated to do? -Answer- ✔Offer the supplement policy on a
guaranteed issue basis.
(once a person becomes eligible for Medicare supplement plans, and during the open
enrollment period, coverage must be offered on a guaranteed issue basis.)
Which of the following best describes annually renewable term insurance? -Answer- ✔It
is level term insurance.
(annually renewable term is a form of level term insurance that offers the most
insurance at the lowest cost.)
If an applicant does not receive a copy of the new insurance policy, who would be held
responsible? -Answer- ✔The agent.
(it is the responsibility of the agent to deliver the policy.)
Practice exam: Learning mode on examfx for life and health
,Practice exam: Learning mode on examfx for life and health
Which nonforfeiture option has the highest amount of insurance protection? -Answer-
✔Extended term.
(The extended term nonforfeiture option has the same face amount as the original
policy, but for a shorter period of time.)
An insured is involved in a car accident. In addition to general, less serious injuries, he
permanently loses the use of his leg and is rendered completely blind. The blindness
improves a month later. To what extent will he receive Presumptive Disability benefits? -
Answer- ✔no benefits.
(Presumptive disability plants offer full benefits for specified conditions. these policies
typically require the loss of use of at least two limbs, total and permanent blindness, or
loss of speech or hearing. Benefits are paid, even if the insured is able to work.
Because the insured's blindness was only temporary and the loss of use in only one leg,
he does not qualify for presumptive disability benefits.)
Which of the following is true about the requirements regarding HIV exams? -Answer-
✔The applicant must give prior informed written consent.
(a separate written consent form must be obtained prior o an HIV exam. HIV exam
results may be disclosed to underwriters, but not agents.
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid -Answer- ✔For 20 years or until death,
whichever occurs first.
(under a 20-pay life policy, all of the premiums necessary to cause the policy to endow
at the insured's age of 100 are paid during the first 20 years; however, if the insured
dies before all of the planned premiums are paid, the beneficiary will receive the face
amount as a death benefit.)
Which is the appropriate action by the insurer if a prospective insured submitted an
incomplete application? -Answer- ✔Return the application to the applicant for
completion.
(any unanswered questions need to be answered before the policy is issued. if the
insurer receives incomplete applications, they need to be returned to the applicants for
completion.)
All of the following are characteristics of group life insurance EXCEPT -Answer-
✔Premiums are determined by the age, sex and occupation of each individual certificate
holder.
(premiums are determined by the age, sex and occupation of the entire group.)
Which of the following is considered a qualifying event under COBRA? -Answer-
✔Divorce.
(Other qualifying events include the voluntary termination of employment; an
employee's change from full time to part time; or the death of the employee.)
Practice exam: Learning mode on examfx for life and health
,Practice exam: Learning mode on examfx for life and health
Twin brothers are starting a new business. They know it will take several years to build
the business to the point that they can pay off the debt incurred in starting the business.
What type of insurance would be the most affordable and still provide a death benefit
should one of them die? -Answer- ✔Joint life.
(a joint life policy covering two lives would be the least expensive because the
premiums are based on average age, and it would pay a death benefit only at the first
death.)
The ownership provision entitles the policy owners to do all of the following EXCEPT -
Answer- ✔Set premium rates.
( the insurer sets premium rates based upon underwriting considerations)
Which of the following allows the insurer to relieve a minor insured from premium
payments if the minor's parents have died or become disabled? -Answer- ✔Payor
Benefits
(If the payor (usually a parent or guardian) becomes disabled for at least 6 months or
dies, the insurer will waive the premiums until the minor reaches a certain age such as
21.)
In insurance, an offer is usually made when -Answer- ✔An applicant submits an
application to the insurer.
(In insurance, the offer is usually made by the applicant in the form of an application.
Acceptance takes place when an insurer's underwriter approves the application and
issues a policy.)
a producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. this is a personal use of life insurance
known as -Answer- ✔Survivor protection.
(life insurance can provide the funds necessary for the survivors of the insured to be
able to maintain their lifestyle in the event of the insured's death. This is known as
survivor protection.
Who is a third-party owner? -Answer- ✔A policyowner who is not the insured
(Third-party owner is a legal term used to identify an individual or entity that is not an
insured under the contract, but that has a legally enforceable right under it.)
According to the Entire Contract provision, a policy must contain -Answer- ✔a copy of
the original application for insurance.
(An insurance contract must contain a copy of the original application)
Which of the following statements regarding the Change of Beneficiaries Provision is
false? -Answer- ✔The policy owner has the right to change beneficiaries in any case.
(The policy owner has the right to change beneficiaries unless he/she has chosen to
have an irrevocable beneficiary. otherwise, the policy owner can legally change
beneficiaries, without the consent of the former beneficiary.)
Practice exam: Learning mode on examfx for life and health
, Practice exam: Learning mode on examfx for life and health
Which provision allows the policyholder a period of time, while coverage is in force, to
examine a health insurance policy and determine whether or not to keep it? -Answer-
✔free look period.
(the free look provision allows a policyholder 10 days after the policy is delivered in
which to decide whether or not he/she wants the policy. If the policyholder decides to
return the policy within this period, he/she receives a full refund of all premiums paid.
If an agent fails to obtain the applicant's signature on the insurance application, what
must the insurer do? -Answer- ✔return the application to applicant for a signature.
(all applications must have the appropriate authorized signatures)
Which of the following best describes a fixed-period settlement option? -Answer- ✔Both
the principal and interest will be liquidated over a selected period of time.
(Under the fixed-period option (also called period certain), A specified period of years is
selected, and equal installments are paid to the recipient. Both the principal and interest
are liquidated together over the selected period of time.)
An applicant for a health insurance policy returns a completed application to her agent,
along with a check for the first premium. She receives a conditional receipt two weeks
later. Which of the following has the insurer done by this point? -Answer- ✔Neither
approved the application nor issued the policy.
(When the agent receives the application and issues a conditional receipt, the insurer
has not yet approved the application and issued the policy.
If a dental plan is integrated, it is combined with what type of plan? -Answer- ✔medical.
(Integrated plans allow for dental plans to be included in a medical plan, providing
coverage for both under a single contract. sometimes the deductibles are merged, but
this does not have to be the case.)
What does "Liquidity" refer to in a life insurance policy? -Answer- ✔Cash values can be
borrowed at any time.
(Liquidity in life insurance refers to the availability of cash to the insured through cash
values.)
If an applicant for a life insurance policy and the person to be insured are two different
people, what the underwriter would be concerned about? -Answer- ✔Whether an
insurable interest exists between the individuals.
(An insurable interest must be at the time the policy is issued. Some relationships are
automatically presumed to qualify as insurable interest, e.g., spouses, parents, children,
and certain business relationships.)
A provision found in insurance policies which prevents the insured from collecting twice
for the same loss is called -Answer- ✔Subrogation.
Practice exam: Learning mode on examfx for life and health
