Life and Health Insurance Exam Questions and Answers 100% Correct
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Course
Life and health insurance
Institution
Life And Health Insurance
Life and Health Insurance Exam Questions and Answers 100% Correct
Application - Answers Which of the following is the basic source of information used by the company in the risk selection process?
The beneficiary would receive $25,000 if it was determined that the insured qualified for the polic...
Life and Health Insurance Exam Questions and Answers 100% Correct
Application - Answers Which of the following is the basic source of information used by the company in
the risk selection process?
The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy. -
Answers An applicant signs an application for a $25,000 life insurance policy, pays the initial premium,
and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,
Calls on behalf of tax-exempt nonprofit organizations, Calls for which the consumer has given prior
written permission, Calls which are not commercial or do not include unsolicited advertisements -
Answers Which of the following would be considered a part of the National DO NOT CALL list?
It is a nonprofit organization that maintains underwriting information on applicants for life and health
insurance. - Answers What is the MIB?
Late Payments, Failure to Pay off a Loan, Tax Delinquencies - Answers According to the Fair Credit
Reporting Act, what would be considered negative information about a consumer?
Age, Gender, Occupation. - Answers What information about an applicant is identified in the General
Information section of a life insurance application?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy. - Answers
What is the purpose of a conditional receipt?
Occupation, Marital Status, Gender. - Answers What information is included on Part 1 of the application
for insurance?
Substandard, Standard, Preferred - Answers What is used as a risk classification by underwriters for life
insurance?
Consumer Report - Answers What report provides the underwriter with the information about an
insurance applicants credit?
Considered true to the best of the applicant's knowledge. - Answers Representations are written or oral
statements made by the applicant that are
Insurance companies from adverse selection by high risk persons. - Answers The Medical Information
Bureau (MIB) was created to protect
Warranty - Answers What is a statement that is guaranteed to be true, and if untrue, may breach an
insurance contract?
A presentation of non-guaranteed elements of a policy. - Answers The term "illusion" in a life insurance
policy refers to
, The date of medical exam. - Answers An individual applied for an insurance policy and paid the initial
premium. The insurer issued a conditional receipt. Five days later, the applicant had to submit a medical
exam. If the policy is issued, what would be the policy's effective date?
Universal Life- Option A - Answers Which policy would have an IRS required corridor or gap between the
cash value and the death benefit?
Accumulating Retirement Funds, Accumulating funds in an IRA, Funding a Child's College Education -
Answers What are appropriate uses of a deferred annuity?
Tax Status, Financial Experience, Annual Income. - Answers What information about a customer must be
used in determining annuity suitability?
When the insured reaches age 100. - Answers When would a 20-pay whole life policy endow?
Whole Life Policy - Answers The policy owner is entitled to policy loans in what kind of policy?
Annuitization Period - Answers What is the time during which accumulated money converts into an
income stream?
Equity Indexed. - Answers An annuity owner is funding an annuity that will supplement her retirement.
Because she does not know what effect inflation may have on her retirement dollars, she would like a
return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase
what kind of annuity?
An endowment policy. - Answers Your customer doesn't mind paying a higher premium as long as he
gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy
would you recommend?
They are intended to be used while the insured is alive. Because of this, the premium is considerably
more expensive than an ordinary straight life policy. - Answers Why do the funds of an endowment
policy build up faster?
Annuity - Answers What type of policy will protect an individual from outliving his or her money?
Option B - Answers Which option for Universal Life allows the beneficiary to collect both the death
benefit and cash value upon the death of the insured?
Universal Life- Option B - Answers The death benefit includes the annual increase in cash value so that
the death benefit gradually increases each year by the amount that the cash value increases. At any
point in time, the total death benefit will always be equal to the face amount of the policy plus the
current amount of cash value.
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