GENERAL PRACTICE EXAM-MD ACCIDENT, HEALTH & LIFE
PRODUCER PRACTICE EXAM B 210 ACTUAL EXAM QUESTIONS WITH
100% CORRECT VERIFIED ANSWERS LATEST 2024
1. Joe has a disability policy with an Accidental Death and Dismemberment Rider. Last week
he was involved in a hunting accident. A gun blast caused total permanent loss of hearing in
both of his ears. What are the maximum benefits he will receive from his policy?
A. Capital Sum
B. Relation to Earnings Sum
C. 50% of the Principal Sum
D. Principal Sum: Principal Sum
2. Which of the following relates to a nonparticipating policy?
A. It will provide a return of premium
B. It will provide tax advantages
C. It will not pay dividends
D. It will provide policy owner privileges: It will not pay dividends
3. In order for a stockholder to receive a dividend resulting from profits of their insurer she
must own shares in a:
A. Indemnity Insurer
B. Stock Insurance Company
C. Fraternal Insurance Exchange
D. Mutual Insurance Company: Stock Insurance Company
4. A statement made on an insurance application by a client become a part of an insurance
contract and are considered to be:
A. A representation
B. A hazard
C. A warranty
D. A binding act: A representation
5. E.R.I.S.A., the Employee Retirement Income Security Act of 1974, was passed by: A.
The Governor
B. Congress
C. Popular Vote
D. The Senate: Congress
6. If a producer makes untrue statements on an application, it is considered to be a(n):
A. Omission
B. Warranty breach
C. Negligence
,D. Misrepresentation: Misrepresentation
7. Which statement best describes the primary difference between a mutual insurance
company and a stock insurance company?
A. A mutual company is regulated by the state and federal government and a stock
company is regulated only by the state
B. A mutual company is owned by stockholders and a stock is owned by
Surplus Lines
C. A stock company is owned by shareholders and a mutual company is owned by
policyholders
D. A stock company is regulated by an authorized insurer and a mutual company is an
unauthorized insurer: A stock company is owned by shareholders and a mutual company is
owned by policyholders
8. In regard to an insurance contract, which part generally defines or indicates the value that
each party gives to each other?
A. Offer and Acceptance
B. Legal Purpose
C. Competent Party
D. Consideration: Consideration
9. Fraud is grounds for voiding a Life Insurance contract if it is discovered during the first
_____ years.
A. Ten
B. Three
C. Five
D. Two: Two
10. Gambling is an example of what type of risk?
A. Pure
B. Real
C. Loss
D. Speculative: Speculative
11. What legal agreement dictates who may buy a deceased business partner's share of their
business?
A. Key Person
B. Buy Sell
C. Business Overhead
D. Pure Salary: Buy Sell
12. All of the following are true of Key Person Insurance EXCEPT:
A. The key employee is the one insured
,B. The plan is funded by permanent insurance only
C. There is no limitation on the number of key employee plans that can be in force at any
time
D. The employer is the owner, payor and beneficiary of the policy: The plan is funded by
permanent insurance only
13. What relates to the analysis of an applicant's personal information to determine
whether an insurance policy should be issued?
A. Adverse Selection
B. Classification
C. Gender
D. Underwriting: Underwriting
14. The special significance of a conditional receipt is that it:
A. Is given only to applicants who fully prepay all scheduled premiums in advance of
their issued policy
B. Is intended to provide coverage on a date earlier than the date of the issuance of the
policy
C. Guarantees an applicant that a policy will be issued in the amount applied for in their
application
D. Serves as proof that an agent has determined an applicant to be fully insur-able for
coverage by the insurance company: Is intended to provide coverage on a date earlier than
the date of the issuance of the policy
15. A replacing Life insurer must maintain a register for a replaced policy for how many
years?
A. 2
years B.
4 years
C. 5 years
D. 3 years: 5 years
16. What is a terminally ill person that sells their insurance policy for a percentage called?
A. Investor
B. Subscriber
C. Beneficiary
D. Viator: Viator
17. Which of the following types of insurance policies would perform the function of cash
accumulation?
A. Property
B. Life
, C. Stock
D. Health: Life
18. Who makes the final decision regarding a risk?
A. Underwriters
B. Field Investigators
C. Executive Officers
D. The Commissioner: Underwriters
19. When an application for Life Insurance is taken that replaces an existing life insurance
policy, the applicant must be given a Disclosure Statement. The Disclosure Statement must
include all of the following EXCEPT:
A. Premium mode
B. Insurer's name
C. Date of application
D. Producer's name: Premium mode
20. The duties of a producer where replacement is involved include all of the following
except:
A. Leaving a copy or original of all solicitation material used for presentation to an applicant
B. Submit all expenses to creditors
C. Provide the replacing insurer a copy of all soliciting material
D. Provide the replacing insurer a statement signed by the applicant as to whether or not he
or she has existing Life insurance: Submit all expenses to creditors
21. Who is the owner and the beneficiary of a Key Person Life Insurance Policy?
A. The Key Person is the owner and the employer is the beneficiary
B. The employer is the owner and beneficiary of the policy
C. The employer is the owner and the Key Person is the beneficiary
D. The Key Person is the owner and beneficiary: The employer is the owner and beneficiary
of the policy
22. An Industrial Life Insurance Policy has a face amount that is:
A. $3,000 or less
B. $1,000 or less
C. $2,500 or less
D. $5,000 or less: $1,000 or less
23. What approach helps with the prediction of an individual's earning potential and how
much of it would be devoted to their dependents?
A. Needs
B. Human Life
C. Retirement
PRODUCER PRACTICE EXAM B 210 ACTUAL EXAM QUESTIONS WITH
100% CORRECT VERIFIED ANSWERS LATEST 2024
1. Joe has a disability policy with an Accidental Death and Dismemberment Rider. Last week
he was involved in a hunting accident. A gun blast caused total permanent loss of hearing in
both of his ears. What are the maximum benefits he will receive from his policy?
A. Capital Sum
B. Relation to Earnings Sum
C. 50% of the Principal Sum
D. Principal Sum: Principal Sum
2. Which of the following relates to a nonparticipating policy?
A. It will provide a return of premium
B. It will provide tax advantages
C. It will not pay dividends
D. It will provide policy owner privileges: It will not pay dividends
3. In order for a stockholder to receive a dividend resulting from profits of their insurer she
must own shares in a:
A. Indemnity Insurer
B. Stock Insurance Company
C. Fraternal Insurance Exchange
D. Mutual Insurance Company: Stock Insurance Company
4. A statement made on an insurance application by a client become a part of an insurance
contract and are considered to be:
A. A representation
B. A hazard
C. A warranty
D. A binding act: A representation
5. E.R.I.S.A., the Employee Retirement Income Security Act of 1974, was passed by: A.
The Governor
B. Congress
C. Popular Vote
D. The Senate: Congress
6. If a producer makes untrue statements on an application, it is considered to be a(n):
A. Omission
B. Warranty breach
C. Negligence
,D. Misrepresentation: Misrepresentation
7. Which statement best describes the primary difference between a mutual insurance
company and a stock insurance company?
A. A mutual company is regulated by the state and federal government and a stock
company is regulated only by the state
B. A mutual company is owned by stockholders and a stock is owned by
Surplus Lines
C. A stock company is owned by shareholders and a mutual company is owned by
policyholders
D. A stock company is regulated by an authorized insurer and a mutual company is an
unauthorized insurer: A stock company is owned by shareholders and a mutual company is
owned by policyholders
8. In regard to an insurance contract, which part generally defines or indicates the value that
each party gives to each other?
A. Offer and Acceptance
B. Legal Purpose
C. Competent Party
D. Consideration: Consideration
9. Fraud is grounds for voiding a Life Insurance contract if it is discovered during the first
_____ years.
A. Ten
B. Three
C. Five
D. Two: Two
10. Gambling is an example of what type of risk?
A. Pure
B. Real
C. Loss
D. Speculative: Speculative
11. What legal agreement dictates who may buy a deceased business partner's share of their
business?
A. Key Person
B. Buy Sell
C. Business Overhead
D. Pure Salary: Buy Sell
12. All of the following are true of Key Person Insurance EXCEPT:
A. The key employee is the one insured
,B. The plan is funded by permanent insurance only
C. There is no limitation on the number of key employee plans that can be in force at any
time
D. The employer is the owner, payor and beneficiary of the policy: The plan is funded by
permanent insurance only
13. What relates to the analysis of an applicant's personal information to determine
whether an insurance policy should be issued?
A. Adverse Selection
B. Classification
C. Gender
D. Underwriting: Underwriting
14. The special significance of a conditional receipt is that it:
A. Is given only to applicants who fully prepay all scheduled premiums in advance of
their issued policy
B. Is intended to provide coverage on a date earlier than the date of the issuance of the
policy
C. Guarantees an applicant that a policy will be issued in the amount applied for in their
application
D. Serves as proof that an agent has determined an applicant to be fully insur-able for
coverage by the insurance company: Is intended to provide coverage on a date earlier than
the date of the issuance of the policy
15. A replacing Life insurer must maintain a register for a replaced policy for how many
years?
A. 2
years B.
4 years
C. 5 years
D. 3 years: 5 years
16. What is a terminally ill person that sells their insurance policy for a percentage called?
A. Investor
B. Subscriber
C. Beneficiary
D. Viator: Viator
17. Which of the following types of insurance policies would perform the function of cash
accumulation?
A. Property
B. Life
, C. Stock
D. Health: Life
18. Who makes the final decision regarding a risk?
A. Underwriters
B. Field Investigators
C. Executive Officers
D. The Commissioner: Underwriters
19. When an application for Life Insurance is taken that replaces an existing life insurance
policy, the applicant must be given a Disclosure Statement. The Disclosure Statement must
include all of the following EXCEPT:
A. Premium mode
B. Insurer's name
C. Date of application
D. Producer's name: Premium mode
20. The duties of a producer where replacement is involved include all of the following
except:
A. Leaving a copy or original of all solicitation material used for presentation to an applicant
B. Submit all expenses to creditors
C. Provide the replacing insurer a copy of all soliciting material
D. Provide the replacing insurer a statement signed by the applicant as to whether or not he
or she has existing Life insurance: Submit all expenses to creditors
21. Who is the owner and the beneficiary of a Key Person Life Insurance Policy?
A. The Key Person is the owner and the employer is the beneficiary
B. The employer is the owner and beneficiary of the policy
C. The employer is the owner and the Key Person is the beneficiary
D. The Key Person is the owner and beneficiary: The employer is the owner and beneficiary
of the policy
22. An Industrial Life Insurance Policy has a face amount that is:
A. $3,000 or less
B. $1,000 or less
C. $2,500 or less
D. $5,000 or less: $1,000 or less
23. What approach helps with the prediction of an individual's earning potential and how
much of it would be devoted to their dependents?
A. Needs
B. Human Life
C. Retirement
