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MS Life and Health Insurance Test
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MS Life and Health Insurance Test MS Life and Health Insurance Test MS Life and Health Insurance Test
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MS Life and Health Insurance TestWhich of these do NOT constitute policy delivery? - ANS Policy issued with a rating
Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options? - ANS
Variable Life
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries
sustained in an accident. J's age as stated on the application five years ago was
found to be understated by ten years. Which of the following actions will the
insurance company take? - ANS The insurer will adjust the benefit to what the
premiums paid would have purchased at the insured's actual age
A life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached? - ANS Waiver of Premium
A producer must report to the Commissioner of Insurance any administrative action
or criminal charges taken against the producer within __ days of the final disposition
of the matter. - ANS 30
A physician opens up a new practice and qualifies for a $7,000/month Disability
Income policy. What rider would the physician add if he wants the ability to increase
his policy benefit as his practice and income grow? - ANS Guaranteed Insurability
Option rider
Which type of policy is considered to be overfunded, as stated by IRS guidelines? -
ANS Modified Endowment Contract
How does a typical Variable Life Policy investment account grow? - ANS Through
mutual funds, stocks, bonds
,Which Federal law allows an insurer to obtain an inspection report on a potential
insured? - ANS Fair Credit Reporting Act
What is Medicare? - ANS is a hospital and medical expense insurance program
What kind of premium does a Whole Life policy have? - ANS level
T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the
insurer pay? - ANS 50,000
Pre-hospitalization authorization is considered an example of: - ANS managed care
Under a Renewable Term policy, - ANS the renewal premium is calculated on the
basis of the insured's attained age
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death benefit will the mother
receive? - ANS $0
A provision in a life insurance policy that pays the policyowner an amount that does
not surpass the guaranteed cash value is called the: - ANS Policy Loan provision
What action can a policyowner take if an application for a bank loan requires
collateral? - ANS Assign policy ownership to the bank
Which of the following statements is CORRECT about the Life and Health Insurance
Guaranty Association? - ANS It is funded by insurance companies through
assessments
, An insurance company that replaces existing insurance must provide a copy of
which of the following documents to the existing insurance company? - ANS A
policy summary
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The
annuity will then pay P retirement payments after the 15 years. Which type of
annuity did P purchase? - ANS Deferred
A Family Income Policy is a combination of Whole Life and - ANS Decreasing Term
insurance
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase? - ANS Noncancelable
Information obtained from a phone conversation to the proposed insured can be
found in which of these reports? - ANS Inspection report
When must insurable interest exist for a life insurance contract to be valid? - ANS
Inception of the contract
What is the purpose of a Policy Summary? - ANS It highlights the critical parts of
the policy issued
K failed to pay a renewal premium within the time granted by the insurer. K then
sends in a payment which the insurer subsequently accepts. Which policy provision
specifies that coverage may be restored in this situation? - ANS Reinstatement
A 42-year-old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the following
policies will best meet this need? - ANS Universal Life
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