WV Insurance Exam Review Questions With 100% Correct Answers 2024 Graded A+

What provision in a life insurance policy provides for an early payment of some portion of the policy death benefit (face amount) in the event the insured suffer from a terminal illness? - Accelerated Benefits Rider The Medical Information Bureau is: - Used by insurers to assist in underwriting. All of the following are optional provisions in individual health insurance policies, EXCEPT: - Notice of Claim In writing group life insurance, companies use all of the following as underwriting guides to guard against adverse risk, EXCEPT: - Medical examination for prospective insureds that are borderline risks. . Chris is insured through Binders Keepers Insurance Company and his policy period ends in 12 months. However, Chris has decided that he wants to cancel his policy in order to purchase another one from a company that advertises with cute commercials on television. Chris calls his agent to cancel the policy and is informed that the unearned premium (UEP) on the cancelled policy will be returned to him by mail in a couple of weeks. When Chris receives the check, he is surprised to find that it's made out for less than the amount of unearned premium he should have received. What is the most likely reason for this? - Chris' policy had a provision stating that UEP must be returned on a short-rate basis. The Uniform Policy Provisions law requires "notice of claim" to be made by the policyholder to the insurer or its agent within: - 20 days of a loss, or as soon as reasonably possible. None of the following benefits are subject to federal income tax, except: - Disability income benefits paid to an employee from an employer-sponsored insurance plan in which the employer pays all of the premium . A method of payment in which a provider is paid a specific fee monthly for each subscriber is known as: - Capitation fee Permanent life insurance provides all of the following features, except: - It has no cash value An agent often completes property inspections on her way home from the office allowing her to minimize expenses in this important aspect of writing a policy for the company. Whenever she can complete the property inspection on the way home, she does not include travel expenses in the invoice she mails to the customer when the policy is issued. She does have the accounts receivable clerk include in the invoice costs for pictures she had to attach to the application, the cost of typing the policy and postage for mailing pertinent data to the customer. The agent sees this as cost effective in maintaining her office. The West Virginia Department of Insurance views her office practices as: - excessive charges In the formation of a life insurance contract, the special significance of a conditional receipt is that it: - Enables the insurer to provide coverage on a date earlier than the date of the issuance of the policy.. Business Overhead Expense policies are a specialized form of: - Disability income insurance.. The NAIC Model Unfair Claim Settlement Practice Act provides for a financial penalty of _________ for each violation of the Act. - $1,000 Which of the following best describes a licensed insurance professional's "implied authority"? - The authority given by a principal to an agent that is not formally expressed or communicated. . Which of the following statements is true regarding the alteration of an optional policy provision in an existing health insurance policy? - An insurer may change the wording of an optionally renewable policy provision as long as the change does not adversely affect the insured.. All of the following statements regarding assignment of a life insurance policy are correct, EXCEPT: - The policyowner must obtain approval from the insurance company before a policy can be assigned.. Which of the following is not a factor that determines the annuity income benefit? - The tax bracket of the annuitant. Which of the following is a requirement of the Fair Credit Reporting Act? - The applicant for insurance must be advised, in advance, that a consumer report may be requested.. An insurer was cited and found guilty of unfair discrimination. The carrier paid its fine for the offense and was also issued a cease and desist order. If the insurer continued with the practice of unfair discrimination, the additional penalty would be: - A penalty of up to $10,000 for each violation and/or revoke or suspend the person's license. . The capital sum in an accidental death & dismemberment policy is the: - amount paid to the insured for dismemberment losses or loss of sight..