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Life Insurance Agent Exam
A commonly found life insurance policy provision is the "misstatement of age". If the age of the
insured is in error and discovered at the time of death, the insurance company will be required
to do what:
A. Return all collected premium to the insured and cancel policy.
B. Return all collected premiums to the insurance, pay interest on the amount and cancel the
policy.
C. Establish intent of fraud. If not, the insurer will not pursue legal action.
D. Adjust the death benefit to reflect the premiums that were paid. - ANS-D. Adjust the death
benefit to reflect the premiums that were paid
A company that issues policies which do not grant the owner of the policy the right to receive
policy dividends is known as:
A. A mutual insurance company.
B. An inter-insurance exchange.
C.A reciprocal exchange.
D. A stock insurance company. - ANS-D. A stock insurance company.
A contract whereby one undertakes to indemnity another against loss, damage, or liability
arising from a contingent or unknown event is known as what:
A. Risk
B. Insurance policy
C. Provision
D. Proposal - ANS-B. Insurance policy
A disability income policy social insurance supplement (SIS) benefit rider:
A. Pays benefit only if it turns out the insured is eligible for benefits from social insurance.
,B. Pays a benefit if the insured is injured on the job and qualifies for workers compensation
benefits.
C. Provides a payment only when the insured is totally disabled, but not receiving any social
insurance benefit plan.
D. Provides for a bonus payment that will match social security disability income benefits, if they
are paid. - ANS-C. Provides a payment only when the insured is totally disabled, but not
receiving any social benefits
A flat rate fee paid per office visit paid by the insured each time they are go in for treated, in an
HMO is:
A. Deductible
B. Corridor deductible
C. Co-insurance
D. Co-payment - ANS-D. Co-payment
A form of rest or relief offered to family members who are caring for a person who requires
continual care is:
A. Hospice care
B. Hospital care
C. Respite care
D. Intermediate care - ANS-C. Respite care
A hospital confinement policy covers all of the following EXCEPT:
A. Covered medical expenses.
B. Non covered medical expenses.
C. Out of pocket expenses.
D. Incidental expenses. - ANS-A. Covered medical expenses
A life annuity with a 10 year period certain will pay:
,A. Maximum of 120 months
B. Only as long as the receipt lives
C. Guaranteed 120 months and income for life
D. Life income plus guaranteed 120 months after death - ANS-C. Guaranteed 120 months and
income for life
A man has been diligent in investing money for his retirement. His total payments into a tax
deferred annuity are $100,000. He is now ready to take it out, and the insurance company that
issued the annuity guarantees an annual payments for $8,000 for the remainder of his life. His
expected payout over his lifetime is $200,000. How much each year's annuity payment taxable:
A. $8,000
B. $4,000
C. $2,000
D. $0 - ANS-B. $4,000
A measure for rating an individual's need for long term care benefit is called:
A. A gatekeeper mechanism.
B. Activities of daily living.
C. Case management.
D. Co-insurance. - ANS-B. Activities of daily living.
A measuring gauge used to establish persistency and stability of a group is based on:
A. The size of the group.
B. The predominance of gender in the group.
C. The type of industry.
D. The geographic location. - ANS-A. The size of the group.
A person purchased a single premium annuity age of 30, wants distribution at age 60. Type of
annuity they have is:
, A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Single premium deferred compensation.
D. Periodic premium deferred annuity. - ANS-B. Single premium deferred annuity.
A provision in health insurance policy that states; the insurer and the insured will share a
portions of the medical expenses once the deductible has been satisfied is known as:
A. The stop-loss provision
B. Comprehensive insurance
C. Percentage insuring
D. Co-insurance - ANS-D. Co-insurance
A representation in the insurance application may qualify as which of the following:
A. An expressed warranty.
B. A waiver.
C. An implied warranty.
D. A misrepresentation. - ANS-C. An implied warranty
ACA established four tiers of coverage: Bronze plan, Silver Plan, Gold Plan, and Platinum Plan.
All categories offer the same set of essential health benefit. The actuarial values are projections
of how much the insurance plan will pay on an average for a persons medical expenses; Which
is false:
A. The percentage of health care cost that Bronze plan pays for is 60% of medical expenses
B. The percentage of health care cost that Gold plan pays for is 90% of medical expenses
C. The percentage of health care cost that Silver plan pays for is 70% of medical expenses
D. The percentage of health care cost that Platinum plan pays for is 90% of medical expenses -
ANS-B. The percentage of health care cost that Gold plan pays for is 90% of medical expenses
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