Stimulated ExamFx exam| 104 questions| with complete solutions
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Course
Fx-Property
Institution
Liberty University
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? Correct Answer: Neither approved the application nor iss...
stimulated examfx exam| 104 questions| with complete solutions
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Liberty University
Fx-Property
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Stimulated ExamFx exam| 104 questions| with complete solutions
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? Correct Answer: Neither approved the
application nor issued the policy
An individual is purchasing a permanent life insurance policy with a face value of $25,000.
While this is all the insurance that he can afford at this time, he wants to be sure that additional
coverage will be available in the future. Which of the following options should be included in the
policy? Correct Answer: guaranteed insurability option
If an insured receives accelerated death benefits, what is the least amount of the original death
benefit that the beneficiary would receive after the insured's death? Correct Answer: 0%
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is
known as Correct Answer: critical illness
A small hardware store owner is involved in a car accident that renders him totally disabled for a
year. Which type of insurance would help him payment for expenses of the company during the
time of his disability. Correct Answer: business overhead expense policy
Which of the following determines the length of time that benefits will be received under the
fixed amount settlement option? Correct Answer: size of each installment
Who is the owner and who is the beneficiary on a key person life insurance policy? Correct
Answer: the employer is the owner and the beneficiary
An employee insured under a group health plan has been paying $25 monthly premium for his
health coverage. The employer has been contributing $75 for the total monthly cost of $100. If
the employee leaves the company, what would be his maximum monthly premium for cobra
coverage Correct Answer: . $102
Which of the following is an example of liquidity in a life insurance contract Correct Answer:
the cash value available to the policyowner
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has
chosen which settlement option? Correct Answer: fixed amount
Which nonforfeiture option provides coverage for the longest period of time? Correct Answer:
reduced paid-up
In the executive bonus plan, who is the owner of the poicy, and who pays the premium Correct
Answer: executive is the owner, and the executive pays the premium
, An insured had a $10,000 term life policy. The annual premium of $200 was due on feburary 1;
however, the insured failed to pay the premium. He died on February 28. How much would the
beneficiary receive from the policy. Correct Answer: $9,800
An insurer wants to begin underwriting procedures for an applicant. What source will it consult
for the majority of its underwriting information? Correct Answer: application
Who makes up the medical information bureau? Correct Answer: insurers
Which of the following is true about the mandatory free look in a life insurance policy Correct
Answer: it commences when the policy is delivered
What is the purpose of a free-look period in insurance policies Correct Answer: it allows the
insured to reject the policy with a full refund
Most agents try to collect the initial premium for submission with the application. When an agent
collects the initial premium from the applicant, the agent should issue the applicant Correct
Answer: premium receipt
Item stipulated in the contract that the insurer will of provide coverage for are found in the.
Correct Answer: exclusions clause
Which of the following statements concerning group health insurance is correct? Correct
Answer: the employer is the policyholder
Which provision states that the insurance company must pay medical expense claims
immediately? Correct Answer: time of payment of claims
Which of the following is true about the requirements regarding HIV exams? Correct Answer:
the applicant must give prior informed written consent
All other factors being equal, the least expensive first-year premium payment is found in Correct
Answer: annually renewable term
Which of the following best describes the MIB? Correct Answer: it is nonprofit organization
underwriting information on applicants for life and health insurance
All of the following are personal uses of life insurance except. Correct Answer: buy-sell
agreement
If a consumer requests additional information concerning an investigative consumer report, how
long does the insurer or reporting agency have to comply? Correct Answer: 5 days
Long term care coverage may be available as any of the following options except Correct
Answer: endorsement to a health policy
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