West Virginia Health Insurance Licensing Exam New
2024 Version Best Studying Material with All
Questions and Answers
Insurable interest can be best described by which of the following? ----------- Correct Answer ----
------ The applicant must experience a financial loss due to an accident of sickness that befalls
the insured
What is illegal act does a producer commit when a producer represents a policy in a more
favorable light than the policy really is? ------------ Correct Answer ------------- Misrepresentation
Who must be a member of insurance guaranty associations? ------------ Correct Answer -----------
-- All insurers authorized to write insurance within a state
To whom may a certificate of authority be issued? ------------ Correct Answer ------------- To an
insurer authorized to transact business in this state
When is controlled business legal? ------------ Correct Answer ------------- When the commissions
from controlled business do not exceed the aggregate commissions on all the other business
(specific limits may vary from state to state)
An insured stated on her application for life insurance that she had never had a heart attack, when
in fact she had a series of minor heart attacks last year for which she sought medical attention.
Which of the following will explain the reason a death benefit claim is denied? ----------- Correct
Answer ---------- Material misrepresentation
Which of the following would qualify as a competent party in an insurance contract? -----------
Correct Answer ---------- The applicant has a prior felony conviction
In insurance an offer is usually made when ----------- Correct Answer ---------- The completed
application is submitted
In terms of parties to a contract which of the following does NOT describe a competent party? ---
-------- Correct Answer ---------- The person must have at least completed secondary education.
Which of the following is NOT the consideration in a policy? ----------- Correct Answer ----------
The application given to a prospective insured
What is material misrepresentation? ----------- Correct Answer ---------- A statement by the
applicant that, upon discovery, would affect the underwriting decision of the insurance company
Which of the following is a statement that is guaranteed to be true and if untrue may breach an
insurance contract? ----------- Correct Answer ---------- warranty
,An insured pays a $100 premium every month for his insurance coverage, yet the insured
promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does
this describe? ----------- Correct Answer ---------- Aleatory
What is a definition of a unilateral contract? ----------- Correct Answer ---------- One-sided: only
one party makes an enforceable promise
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it
basis are classified as ----------- Correct Answer ---------- Contracts of Adhesion
In insurance policies, the insured is not legally bound to any particular action in the insurance
contract, but the insured is legally obligated to pay losses covered by the policy. What contract
element does this describe? ----------- Correct Answer ---------- Unilateral
Insurance policies are not drawn up through negotiations, and an insured has little to say about
its provisions. What contract characteristics does this describe? ----------- Correct Answer --------
-- Adhesion
If only one party to an insurance contract has made a legally enforceable promise, what kind of
contract is it? ----------- Correct Answer ---------- unilateral
Which of the following best describes the aleatory nature of an Insurance contract? -----------
Correct Answer ---------- Exchanges of unequal value
In insurance policies the insured is not legally bound to any particular action in the insurance
contract but the insurer is legally obligated to pay losses covered by the policy. What contact
element does this describe? ----------- Correct Answer ---------- Unilateral
On a health insurance application a signature is required from all of the following individuals
EXCEPT ----------- Correct Answer ---------- the spouse of the policyowner
The insurance policy together with the policy application and any added riders form what is
known as ----------- Correct Answer ---------- Entire Contract
An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon
delivery, the agent collects the applicant's premium check, answers any questions the applicant
may have, and then leaves. What did he forget to do? ----------- Correct Answer ---------- Ask her
to sign a statement of good health
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a
credit report may be requested? ----------- Correct Answer ---------- At the time of application
An insurer is attempting to determine the insurability of an applicant and decides to obtain
medical information from several different sources. Which entity must be notified of the
investigation? ----------- Correct Answer ---------- The applicant
, What document describes an insured's medical history including diagnoses and treatment ---------
-- Correct Answer ---------- Attending Physicians Statement
Which is true regarding obtaining underwriting sources? ----------- Correct Answer ---------- The
applicant must be informed of the sources contacted and how the information is being gathered
Who makes up the Medical Information Bureau? ----------- Correct Answer ---------- Insurers
What is the best way to change an application? ----------- Correct Answer ---------- Start over
with a fresh application
Which of the following entities can legally bind coverage? ----------- Correct Answer ----------
Insurer
Under the Privacy Rule for HIPPAA protected information includes all individually identified
health information ----------- Correct Answer ---------- Held or transmitted in any form
Which of the following is true regarding health insurance underwriting for a person with HIV? --
--------- Correct Answer ---------- The person may not be declined for medical coverage solely
based on HIV status.
The medical information bureau (MIB) was created to protect ----------- Correct Answer ----------
Insurance companies from adverse selection by high risk persons.
Which of the following best describes the MIB? ----------- Correct Answer ---------- It's a
nonprofit organization that maintains underwriting information on applicants for life and health
insurance.
Who makes up the Medical Information Bureau? ----------- Correct Answer ---------- Insurers
Which of the following is true about the requirements regarding HIV exams? ----------- Correct
Answer ---------- The applicant must give prior informed written consent.
Which of the following protects consumers against the circulation of inaccurate or obsolete
personal or financial information? ----------- Correct Answer ---------- The Fair Credit Reporting
Act
Which of the following would provide an underwriter with information concerning and
applicants health history? ----------- Correct Answer ---------- Medical information Bureau
In comparison to consumer reports, which of the following describes a unique characteristic of
investigative consumer reports? ----------- Correct Answer ---------- The customer's associates,
friends, and neighbors provide the report's data.
An insured is upset that her new health insurance policy was delivered to her by certified mail
and not through her agent. Which of the following is true? ----------- Correct Answer ----------
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