MI Life Insurance Exam Questions and Answers With Complete Solutions
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Course
NU1426
Institution
NU1426
MI Life Insurance Exam Questions and Answers With Complete Solutions
an insurance applicant with a below average likelihood of loss is typically considered to be
Tim is covered under a group plan and would like to change is group coverage to an individual policy with the name insurer because of...
MI Life Insurance Exam Questions and Answers
With Complete Solutions
1). An insurance applicant with a below average likelihood of loss is typically considered to be
Ans: Preferred Risk
2). Tim is covered under a group plan and would like to change is group coverage to an
individual policy with the name insurer because of employment termination. which of
these describes the change that will take place?
Ans: Conversion
3). Matt is applying for life insurance and requests a double indemnity rider. a double
indemnity benefit will be payable to matt's beneficiary if matt..
Ans: Dies instantly from a car accident
4). Which of the following is not covered under workers comp?
Ans: Pain and Suffering
5). All of the following are considered appropriate uses of life insurance for business
purposes except
Ans: Protecting the business by covering entry level employees with life insurance
6). Which of these retirement plans do not qualify for a federal income tax deduction?
Ans: Roth IRA
7). An insurer would be committing unfair discrimination if coverage was denied based upon
Ans: Martial Status
8). In an insurance contract, the insurer is the only party legally obligated to perform. because
of this, an insurance contract is considered
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, Ans: Unilateral
9). One of the most important considerations when replacing health insurance would be the
Ans: Exclusions on a new policy
10). A type of group that has a constitution and bylaws and has been organized for the purpose
other than obtaining insurance is called an
Ans: Association or Labor group
11). Under the subrogation clause, legal action can be taken by the insurer against the
Ans: Responsible Third Party
12). An insured under a major medical expense plan with a plan zero deductible and 80/20
coinsurance provision files a $1000 claim. how much of this claim is the insured
responsible for?
Ans: $200
13). Which of these is not a qualifying event for medicare?
Ans: Falling below the federal poverty level
14). Abc insurance agency is entering each applicant who purchase insurance thought their
agency into a drawing to win a free trip. this is an unlawful insurance practice known as
Ans: Illegal Inducement
15). When calculating the amount of life insurance needed for an income earner, what has to
be determined when using the needs approach?
Ans: Financial Objectives if the income earner were to die/disabled
16). Joe has life insurance policy that's has a face amount of $300,000. after a number of
years, the policy cash value accumulates $50k making it $350k.
Ans: Universal Life Policy
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, 17). Which of the following best describes a conditional insurance contract?
Ans: Requires certain condition/acts by the insured individual
18). What is an insurance policies grace period?
Ans: After the premium is dues but the policy remains in force
19). A pharmacy benefit covers prescription drugs derived from a list called a
Ans: Drug Formality
20). Medicare part a covers
Ans: Inpatient Hospital Stay
21). Dana is an employer who deposits a percentage of her income her individual annuity. her
company also contributes a percentage into a separate company pension plan. what kind
of annuity is this considered?
Ans: Qualified Retirement Annuity
22). Which type of annuity guarantees a stated number of income payments, whether or not
the annuitant is still alive to receive them?
Ans: Life Annuity Certain
23). What makes an insurance policy an unilateral contract?
Ans: Only the insurer is legally bound
24). Which of the following would a health saving account (hsa) owner not be able to make?
Ans: The amount contributed by the employer
25). All of the following are examples of a pure risk except
Ans: Losing money at a casino
26).
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