Kansas Life & Health Insurance Final Exam Questions And Answers| Pass Guaranteed

Anytime - Correct Answers When can a policy owner change a revocable beneficiary? Revocable - Correct Answers J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Revocable Beneficiary - Correct Answers M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? the policy owner may change the beneficiary at any time without notifying or getting permission from the beneficiary. - Correct Answers revocable beneficiary Proceeds will be paid to K's estate if P dies within a specified time - Correct AnswersK is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? If the primary beneficiary dies before the insured - Correct AnswersHow would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? Normally, a guardian is required to be appointed in the Beneficiary clause of the contract - Correct AnswersWhich statement is true regarding a minor beneficiary Beneficiaries are not required to sign an insurance application - Correct AnswersA life insurance application must be signed by all of these EXCEPT A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect. - Correct AnswersK applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? Schedule another appointment with the applicant to complete the unanswered questions - Correct AnswersP is a producer who notices 5 questions on a life application were not answered. What actions should P take? Free-look period has expired - Correct AnswersM completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT Applicant's physician - Correct AnswersAn applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the Collect initial premium along with a signed health statement - Correct AnswersOn August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? Insurance contract to the proposed insured - Correct AnswersWhat is being delivered during a policy delivery? Applicant's signature on application - Correct AnswersBefore a life insurance policy is issued, which of these components of the contract is required? Everyone must be covered in the group - Correct AnswersWhich of the following is an important underwriting principle of group life insurance? the entire cost of the plan is paid for by the employer - Correct AnswersA noncontributory group term life plan is characterized by certificate - Correct AnswersA person who is insured within a group contract will be given a annually renewable term - Correct AnswersGroup life insurance policies are generally written as Accidental - Correct AnswersWhich provision is NOT a requirement in a group life policy? Contributory - Correct AnswersIf its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? Immediate annuity - Correct AnswersW is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) Variable - Correct AnswersWhat type of annuity has a cash value that is based upon the performance of it's underlying investment funds? Life Annuity with period certain - Correct AnswersT has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this Payments are made to an annuitant for life - Correct AnswersWhich of these statements concerning an Individual Straight Life annuity is accurate? The risk of living longer than expected - Correct AnswersAn individual who purchases a Life annuity is given protection against Social Security - Correct AnswersWhat is Old Age and Survivors Health Insurance (OASDHI) also known as Individual Retirement Account (IRA) - Correct AnswersWhich of these retirement plans can be started by an employee, even if another plan is in existence? Annuity - Correct AnswersWhich product would best serve a retired individual looking to invest a lump-sum of money through an insurance company Company X - Correct AnswersA Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? Upon completion of the application - Correct AnswersAt what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Policyholder - Correct AnswersWho elects the governing body of a mutual insurance company? Fair credit reporting act - Correct AnswersAn insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the at future dates specified in the contract with no evidence of insurability required - Correct AnswersWhen does a Guaranteed Insurability Rider allow the insured to buy additional coverage? The initial premium - Correct AnswersThe Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and Exclusion - Correct AnswersWhen an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) Entire Contract provision - Correct AnswersWhich provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? Entire contract provision - Correct AnswersWhat provision in a life insurance policy states that the application is considered part of the contract? Modify a provision in the insurance contract - Correct AnswersWhich of these is NOT considered to be a right given to a policyowner? Claims are denied under the Suicide clause of the policy - Correct AnswersHow do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? Pay face amount minus the past due premium - Correct AnswersM had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? Premiums are waived if payor becomes disabled - Correct AnswersWhat benefit does the Payor clause on a Juvenile Life policy provide Automatic policy loan - Correct AnswersS has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? $50,000 minus any outstanding policy loans - Correct AnswersP purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? Return of premium rider - Correct AnswersS buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy avoid a policy lapse - Correct AnswersThe automatic premium loan provision is designed to Evidence of insurability is required when the option is exercised - Correct AnswersWhich of these statements about a Guaranteed Insurability Option rider is NOT TRUE? Void the policy only if it is discovered during the Contestable period and proven to be material - Correct AnswersWhen a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? Amount of premium payments and when they are due - Correct AnswersThe Consideration clause in a life insurance contract contains what pertinent information? Variable life - Correct AnswersWhich policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling flexible premiums - Correct AnswersWhat kind of special need would a policyowner require with an Adjustable Life insurance policy Increasing face amount - Correct AnswersWhich of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? 30 pay life - Correct AnswersN is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? Conversion provision - Correct AnswersWhen a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? A fixed, level premium - Correct AnswersWhich of these is an element of a Variable Life policy Life paid up at age 70 - Correct AnswersWhich of these would be considered a Limited-Pay Life policy? the insured's total loan value - Correct AnswersThe amount of coverage on a group credit life policy is limited to universal life - Correct AnswersWhat type of life insurance incorporates flexible premiums and an adjustable death benefit Cash value may be borrowed against - Correct AnswersWhich statement about a whole life policy is correct? Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured - Correct AnswersWhich statement is correct regarding the premium payment schedule for whole life policies? 10 year endowment - Correct AnswersT would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase Whole life - Correct AnswersWhat type of insurance offers permanent life coverage with premiums that are payable for life? Joint Life policy - Correct AnswersWhat type of life policy covers 2 lives and pays the face amount after the first one dies? Variable life - Correct AnswersA life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as Family maintenance policy - Correct AnswersWhat kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Modified whole life - Correct AnswersAll of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for Modified whole life - Correct AnswersK buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this Child term rider - Correct AnswersS is covered by a whole life policy. Which insurance product can cover his children Conversion - Correct AnswersWhich provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health Upon death of the last insured - Correct AnswersWhen is the face amount paid under a Joint Life and Survivor policy? Survivorship - Correct AnswersWhat type of life policy covers two people and pays upon the death of the last insured? Premiums are payable for as long as there is insurance coverage in force - Correct AnswersWhich of these characteristics is consistent with a Straight Life policy? Policyowner controls where the investment will go and selects the amount of the premium payment - Correct AnswersWhich statement is true concerning a Variable Universal Life policy? At the time of application - Correct AnswersWhen must insurable interest be present in order for a life insurance policy to be valid insured - Correct AnswersIf a contract of adhesion contains questionable language, to whom would the interpretation be in favor of? insurable interest in the proposed insured - Correct AnswersWhen third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have representations - Correct AnswersStatements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called Warranty - Correct AnswersThe part of a life insurance policy guaranteed to be true is called a(n) Primary carrier - Correct AnswersT is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision? fixed business expense - Correct AnswersThe reason for a business having a Business Overhead Expense Disability Plan is to cover Waiting period - Correct AnswersThe provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the Health maintenance organization - Correct AnswersA medical care provider which typically delivers health services at its own local medical facility is known as a More physicians to choose from - Correct AnswersWhich of the following BEST describes how a Preferred Provider Organization is less restrictive than a Health Maintenance Organization? full time students - Correct AnswersMedicare is intended for all of the following groups EXCEPT