LA Life, Health & Accident Insurance Series 103 Practice Exam

LA Life, Health & Accident Insurance Series 103 Practice Exam 1. What type of insurance should a company purchase if it wants to insure the life of its CEO? Key person insurance A basic vision care package includes all of the following EXCEPT Safety glasses. A consumer report used to determine eligibility for insurance may include all of the following EXCEPT Medical underwriting exam. A group conversion option may be used in all the following instances EXCEPT A life-changing event, such as marriage, divorce, or childbirth. According to the time of payment of claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT For claims involving periodic payments. All of the following are characteristics of COBRA EXCEPT Change in medical privacy procedures. All of the following are characteristics of variable whole life EXCEPT There is no guaranteed minimum death benefit. All of the following are classifications of risk EXCEPT Non-nicotine. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while Committing a misdemeanor All of the following are features of the spendthrift clause EXCEPT The beneficiary may encumber the proceeds. All of the following are nonforfeiture options EXCEPT Cash dividend option All of the following are required signatures on a life insurance application EXCEPT The minor in a juvenile policy. All of the following are requirements to qualify for Social Security disability benefits EXCEPT when Unable to work in occupation in which the worker was trained or educated. All of the following are tax qualified retirement plans EXCEPT Section 529 plan All of the following are TRUE regarding incomplete applications EXCEPT The incomplete application can be accepted with the missing information added later. All of the following statements define preexisting conditions EXCEPT Any chronic health condition that presents symptoms and which was unknown at the time of application. At which point are contractual death benefit settlement options determined and by whom? At the time the policy is purchased by the owner of the policy Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? Major medical insurance Current assumption whole life policies are sensitive to which of the following? Interest rates During which period of a Disability Income Policy is coverage effective but during which no benefits will be paid under the policy? Probationary period For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following? Age How are term riders used? To purchase insurance on a family member of the originally insured How do warranties differ from representations? A warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge. How does a noncancelable policy differ from a guaranteed renewable policy? With the noncancelable policy the insurer may increase premiums only based on the terms of the policy. How does the per capita rule apply to proceeds from a life insurance policy? The proceeds are divided equally among living primary beneficiaries. How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits? 2 years If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT The treatment procedures that are covered by the policy. In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness? The individual's policy pays first, the spo