Life and Health Insurance Exam Questions with Correct Answers
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Course
Life and Health Insurance
Institution
Life And Health Insurance
Life and Health Insurance Exam Questions with Correct Answers
Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of total disability. How many work credits must Joe have accumulated to have the status of fully insured? a) 10 b) 6 c) 20 d) 40 - Answer-d) 40
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Life and Health Insurance Exam Questions
with Correct Answers
Joe, age 63, was disabled and can no longer work. He meets the Social Security
definition of total disability. How many work credits must Joe have accumulated to have
the status of fully insured? a) 10 b) 6 c) 20 d) 40 - Answer-d) 40
The Uniform Provision Law that prevents an insurance company from altering its
agreement with a policyholder by referring to documents or other items not contained in
the policy is called the a) Legal Action Provision. b) Grace Period Provision c)
Reinstatement Provision d) Entire Contract Provision - Answer-Entire Contract Provision
What effect will the long-term care (LTC) rider have on the death benefit of a life
insurance policy if LTC benefits were paid to the insured? a) Increase the death benefit
by the amount paid into LTC b) Not affect the amount payable to the beneficiary c)
Eliminate the death benefit d) Reduce the death benefit - Answer-d) Reduce the death
benefit
Which of the following describes the relationship between the principal sum and a
capital sum? a) A capital sum is a percentage of the principal sum b) The principal sum
varies, while the capital sum does not. c) The capital sum varies, while the principal sum
does not. d) The principal sum is a percentage of a capital sum - Answer-a) A capital
sum is a percentage of the principal sum
Which life insurance settlement option guarantees payments for a lifetime of the
recipient, but also specifies a guaranteed period during which, the orginial recipient
does, the payment will continue to a designated beneficiary? - Answer-Life income with
period certain
Who manages the Kansas life and health insurance guaranty association? - Answer-
The board of directors
How long is the free- look period for REPLACEMENT POLICIES? - Answer-20 days
A woman's health insurance policy dictates which doctors she is allowed to see and
health providers share an assumed risk for the patients. What health system is she
using? - Answer-Managed care
What does a short term disability plan NOT have - Answer-Group and individual plan
renewable
Which nonforfeiture option provides coverage for the longest period of time? - Answer-
Paid-up option
, Under a health insurance policy, benefits, other than death benefits, that have not been
assigned, will be paid to? - Answer-The insured
Jis receiving fixed amount benefit payments from his late wife's insurance policy. He
was told that if he dies before al to the contingent beneficiary. Which settlement option
did J choose? - Answer-Fixed Amount
The "stop-loss" feature on a major medical policy is intended to a) Establish the number
of claims that may be filed on a policy in a calendar year. b) Establish a maximum
amount of out-of-pocket expense that an Insured will have to pay for medical expense in
a calendar year c) Establisha maximum amount of out-of-pocket expense that an
insured will have to pay for medical expense for the life of the policy. d) Discourage
insured from making unnecessary appointments at the doctor's office. A stop-loss
feature is a provision that gives the insured financial security by limiting the maximum
amount that would have to be paid in deductibles and co-payments during calendar
year. - Answer-calendar year. Establish a maximum amount of out-of-pocket expense
that an Insured will have to pay for medical expense in a calendar year
The guaranteed purchase option is also referred to as the a) Multiple indemnity rider. b)
Impairment rider. c) Evidence of insurability rider. d) Future Increase option - Answer-d)
Future Increase option The guaranteed purchase option is also referred to as the future
increase option.
# 11 All of the following could qualify as a group for the purpose of purchasing group
health insurance EXCEPT a) Multiple employer trust. b) Single employer with 14
employees. c) An association of 35 people. d) Labor union - Answer-c) An association
of 35 people.
# 12. Where are premiums from fixed annuities invested? a) Ageneral account b) A
variable annuity c) A hedge fund d) A separate account - Answer-a) Ageneral account
#13. Which of the following meets the insured's personal needs, and is provided by
nonmedical personnel? a) Intermediate care b) Custodial care c) Skilled care d)
Assisted living - Answer-b) Custodial care
#14. What does the application of contract of adhesion mean? a) Since the insured
does not participate in preparing the contract, any ambiguities would be resolved in
favor of the Insured, b) The holder of the contract has the ultimate power of promise. c)
The insurer may go to another for representation. d) It makes sure that the insured does
not get more than the value of the loss. - Answer-a) Since the insured does not
participate in preparing the contract, any ambiguities would be resolved in favor of the
Insured,
#15. Under the mandatory uniform provision Legal Actions, an insured is prevented
from bringing a suit against the insurer to recover on a health policy prior to a) 60 days
after written proof of loss has been submitted b) 90 days after written proof of loss has
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