1. What is it called when a life insurancepolicy pays a multiple of the coverage
amount when certain types of accidents occur?: multiple indemnity
2. Upon the issuance of a conditional receipt for a renewal when the premium
is paid AFTER the time granted by the insurer, what is the maximum amount
of time for reinstatement of the policy?: 30 days
3. Which of the following statements regarding a pure life annuity payout
option is correct?: Thisoptionprovidesthe highestmonthlyincome.
4. Which of the following does not apply to the time limit on certain defenses
provision in health insurance policies?: fraudulent misstatements
5. If an individual is insured by both their own health insurance policy and their
spouse's policy, which policy pays first in the event of an illness?: The individual's
policy pays first, the spouse's policy pays the remaining up to coverage amount.
6. When can the premiums of an individually owned health insurance policy
be deductedfrom the individual'sincometax?: whenthetaxpayer'sunreimbursedmedical
expenses exceed 7.5% of adjusted gross income during a taxable year
7. Whenthe suicide clause is insertedin a life insurancecontract,deathby
suicide is not covered during the policy's initial: 2 year period.
8. Which of the following is a characteristic of Health Maintenance Organiza -
tions (HMOs)?: preventive care
9. The life insurance policy will not be truly effective until all of the
following occur EXCEPT: the producer has explained the policy to the client.
10. Under which situation must insurable interest exist between the applicant
and insured at the time of application?:when a third-party applicantnamesthemselvesbenefi-
ciary
11. Which of the following is a distinguishing feature of a variable life insurance
policy?: The cash value earnings are based on the performanceof the separateaccount.
12. The personwho receivesthe benefitof an annuity is кnown as the: annuitant.
,13. Which of the following is an example of a premium payment mode?: annual
premium payment
14. How do most disability policies handle the case of a recurrent disability
occurringat least90 days after the first claim?: it mustbehandledas a newclaim for a new
period of disability, requiring a new elimination period.
, 15. Which of the following is true for most comprehensive dental policies?: Rou-
tine care is provided without coinsurance or deductibles.
16. Under a Medicare Supplement Policy, preexisting conditions CANNOT be
excluded after how many months from the effective date of the policy?: 6 months
17. What does an application for insurance contractually represent for the
insured?: an otter
18. Which of the following is exempted from the incontestability provision in
insurance policies?: fraudulent misstatements
19. Which of the followingmay be thoughtof as a time deductiblerather than a
dollar deductiblein a disability incomepolicy becausebenefitsare not payable
during that time?: elimination period
20. How long after being entitled to Social Security disability benefits will an
individual be eligible to receiveMedicarebenefits?:2 years
21. If a policy is determined to be a Modified Endowment Contract (MEC), funds
receivedunderthepolicy will be: consideredtaxableincomefirst.
22. Which type of annuity attempts to offset inflation by providing a benefit
lin кed to an underlying investment account?: variable
23. What is a MIB report?: medicalinformationon an applicantfor assessinglife or healthinsurancerisк
24. Group Life Policies typically include which of the following provisions?:
con- version privilege
25. 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 spouse's policy pays the remaining up to coverage amount.
26. The featureof a Life InsurancePolicy stating that the policy will NOT cover
certain ris кs is кnown as: exclusion.
27. The primary purpose of Health Reimbursement Accounts (HRAs) is to as-
sist: covered employees with the payment of medical expenses on a high deductible plan funded through
-tax pre
contributions.
28. What type of insuranceshould a companypurchaseif it wants to insure the
life of its CEO?:кey personinsurance
amount when certain types of accidents occur?: multiple indemnity
2. Upon the issuance of a conditional receipt for a renewal when the premium
is paid AFTER the time granted by the insurer, what is the maximum amount
of time for reinstatement of the policy?: 30 days
3. Which of the following statements regarding a pure life annuity payout
option is correct?: Thisoptionprovidesthe highestmonthlyincome.
4. Which of the following does not apply to the time limit on certain defenses
provision in health insurance policies?: fraudulent misstatements
5. If an individual is insured by both their own health insurance policy and their
spouse's policy, which policy pays first in the event of an illness?: The individual's
policy pays first, the spouse's policy pays the remaining up to coverage amount.
6. When can the premiums of an individually owned health insurance policy
be deductedfrom the individual'sincometax?: whenthetaxpayer'sunreimbursedmedical
expenses exceed 7.5% of adjusted gross income during a taxable year
7. Whenthe suicide clause is insertedin a life insurancecontract,deathby
suicide is not covered during the policy's initial: 2 year period.
8. Which of the following is a characteristic of Health Maintenance Organiza -
tions (HMOs)?: preventive care
9. The life insurance policy will not be truly effective until all of the
following occur EXCEPT: the producer has explained the policy to the client.
10. Under which situation must insurable interest exist between the applicant
and insured at the time of application?:when a third-party applicantnamesthemselvesbenefi-
ciary
11. Which of the following is a distinguishing feature of a variable life insurance
policy?: The cash value earnings are based on the performanceof the separateaccount.
12. The personwho receivesthe benefitof an annuity is кnown as the: annuitant.
,13. Which of the following is an example of a premium payment mode?: annual
premium payment
14. How do most disability policies handle the case of a recurrent disability
occurringat least90 days after the first claim?: it mustbehandledas a newclaim for a new
period of disability, requiring a new elimination period.
, 15. Which of the following is true for most comprehensive dental policies?: Rou-
tine care is provided without coinsurance or deductibles.
16. Under a Medicare Supplement Policy, preexisting conditions CANNOT be
excluded after how many months from the effective date of the policy?: 6 months
17. What does an application for insurance contractually represent for the
insured?: an otter
18. Which of the following is exempted from the incontestability provision in
insurance policies?: fraudulent misstatements
19. Which of the followingmay be thoughtof as a time deductiblerather than a
dollar deductiblein a disability incomepolicy becausebenefitsare not payable
during that time?: elimination period
20. How long after being entitled to Social Security disability benefits will an
individual be eligible to receiveMedicarebenefits?:2 years
21. If a policy is determined to be a Modified Endowment Contract (MEC), funds
receivedunderthepolicy will be: consideredtaxableincomefirst.
22. Which type of annuity attempts to offset inflation by providing a benefit
lin кed to an underlying investment account?: variable
23. What is a MIB report?: medicalinformationon an applicantfor assessinglife or healthinsurancerisк
24. Group Life Policies typically include which of the following provisions?:
con- version privilege
25. 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 spouse's policy pays the remaining up to coverage amount.
26. The featureof a Life InsurancePolicy stating that the policy will NOT cover
certain ris кs is кnown as: exclusion.
27. The primary purpose of Health Reimbursement Accounts (HRAs) is to as-
sist: covered employees with the payment of medical expenses on a high deductible plan funded through
-tax pre
contributions.
28. What type of insuranceshould a companypurchaseif it wants to insure the
life of its CEO?:кey personinsurance
