LIFE, ACCIDENT AND HEALTH OR SICKNESS
EXAMINATION LATEST 2024-2025 ACTUAL EXAM TEST
BANK 600 QUESTIONS AND CORRECT ANSWERWERS
(VERIFIED ANSWERWERS) |ALREADY GRADED A
The uniform Simultaneous Death Act ( survivorship or time clause ) was created to address situations in
which the beneficiary survives the insured . Which of the following is false - ANSWERWER-It is a time
period after the death of the insured as stated in the policy . The time is always very short
Which statement best describes how the Return of Premium ( ROP ) rider works on a term life policy -
ANSWERWER-The policy owner will receive all or a portion of the premium paid in over the life of the
policy if the insured is still living at the end of the policy's term .
As indicated by the proposition 103 , the discount provided good drivers is : - ANSWERWER-20 %
Which organization designs standard insurance policy forms ? - ANSWERWER-Insurance Services
Office ( ISO )
A qualified person may hold both a life - only and a Fire & Casualty license . This is called
a______________license . - ANSWERWER-Concurrent license
insurance agent is a person who , for compensation , trANSWERacts insurance on behalf of the -
ANSWERWERinsurer .
A contract whereby an individual deposits funds with a life insurance company , the individual defers
taxed on the buildup of savings within the contract and the individual can choose to take money out in
several ways upon retirement " . What does this describes ? - ANSWERWER-An annuity
From the following choice , select the one that best describe the concept of " concealment " -
ANSWERWERNot communicating that which a party knows and ought to communicate .
,If a policy is cancel and the insurance company legally keeps the earned premium along with a penalty
charge the premium payers it is called a : - ANSWERWER-Short rate cancellation
Twisting is a form of a misrepresentation where a life agent : - ANSWERWER-Tries to induce a client to
lapse , forfelt , or surrender a policy for another
If all the employees of a company pay a part of their group health insurance premium , it is referred to as
a - ANSWERWER-Contributory group policy
A non - medical application - ANSWERWER-May require an applicant to submit to a physical
which of the following does Part A of Medicare not provide coverage for : - ANSWERWER-doctors
services
Medicare will not pay for which of the following ? - ANSWERWER-Long term care
Medicare has two basic coverage categories . Choose the true statement from the following : -
ANSWERWER-
Part A : hospital insurance , Part B : medical insurance
All of the following are associated with accident insurance except : - ANSWERWER-It covers loss of
time away from the job because of an accident as well as sickness
Which of the listed premium payment schedules would reflect the lowest overall premium ? -
ANSWERWERAnnual
Who is protected by the incontestable clause of a life insurance policy ? - ANSWERWER-The
beneficiary
Regarding the difference between mortality tables for annuities and life insurance choose the correct
statement from the following : - ANSWERWER-Policy insured die sooner
,An annuity in which the underlying investment performance will cause a fluctuation in the value of the
benefit is : - ANSWERWER-A variable annuity
Industrial life insurance contains a limit disallowing any one person from having more than a stated
amount of insurance . What is the limit ? - ANSWERWER-$ 10,000
At what age does a " jumping juvenile " policy increase the benefit from $ 1,000 to $ 5,000 ? -
ANSWERWER21
All individuals listed below are entitled to Medicare , except ? - ANSWERWER-Person who qualify for
public assistance programs
Overall there are three main factors that are used to compute the premiums charged for health
insurance . They are : - ANSWERWER-Morbidity , interest , expenses
An entity that provides the administrative services for employers , such as the documentation and record
keeping for group insurance needs , is called : - ANSWERWER-A third party administrator
What do the letters IPA stand for in the managed care industry - ANSWERWER-Independent Practice
Association
All of the following are under the jurisdiction of Department of Insurance except : - ANSWERWER-
HMOs
Tax laws has establish the Modified Endowment Contract or MEC " select the correct response : -
ANSWERWER-Taxing their living benefit is not like a non - MEC
The period of time in which a housewife , who has survived the death of her husband , will not receive
income benefits from social security is called the : - ANSWERWER-Black out period
, Mary has a restricted license . This meANSWER she : - ANSWERWER-May have this license revoked
or suspended without a hearing
Coverage cannot be obtained from an admitted insurer . Therefore an entity is identified that can sell
insurance not underwritten in California . What is this entity ? - ANSWERWER-A surplus lines broker
Industrial life insurance , used in the early years of the insurance business , has what characteristics : -
ANSWERWER-Premiums are submitted every week
Medicare coverage Part A extends coverage to skilled nursing facilities . What is the maximum time the
entitled person can receive benefits per benefit period ? - ANSWERWER-100 days
Taxes paid on the benefits received from disability policies are determined by who pays the premium . If
an employee pays the premiums - ANSWERWER-The benefits are non - taxable to that employee
Which policy allows the insured to choose where the assets backing the cash value are invested ? -
ANSWERWER-Variable life
In a noncontributory group disability income insurance plan , what is the tax treatment of benefits
received by an employee ? - ANSWERWER-Benefits are included in the employee's gross income
Select the correct statement concerning qualified retirement plANSWER . - ANSWERWER-Incomes
taxes are deferred until a later date when the income is received by the plan participant
There is a financial product that was created to address the risk of a person outlive their life savings .
What is this product called ? - ANSWERWER-Annuities
A life insurance application important for all of the following reasons EXCEPT : - ANSWERWER-The
beneficiary must sign the application before the insurer will issue the policy
EXAMINATION LATEST 2024-2025 ACTUAL EXAM TEST
BANK 600 QUESTIONS AND CORRECT ANSWERWERS
(VERIFIED ANSWERWERS) |ALREADY GRADED A
The uniform Simultaneous Death Act ( survivorship or time clause ) was created to address situations in
which the beneficiary survives the insured . Which of the following is false - ANSWERWER-It is a time
period after the death of the insured as stated in the policy . The time is always very short
Which statement best describes how the Return of Premium ( ROP ) rider works on a term life policy -
ANSWERWER-The policy owner will receive all or a portion of the premium paid in over the life of the
policy if the insured is still living at the end of the policy's term .
As indicated by the proposition 103 , the discount provided good drivers is : - ANSWERWER-20 %
Which organization designs standard insurance policy forms ? - ANSWERWER-Insurance Services
Office ( ISO )
A qualified person may hold both a life - only and a Fire & Casualty license . This is called
a______________license . - ANSWERWER-Concurrent license
insurance agent is a person who , for compensation , trANSWERacts insurance on behalf of the -
ANSWERWERinsurer .
A contract whereby an individual deposits funds with a life insurance company , the individual defers
taxed on the buildup of savings within the contract and the individual can choose to take money out in
several ways upon retirement " . What does this describes ? - ANSWERWER-An annuity
From the following choice , select the one that best describe the concept of " concealment " -
ANSWERWERNot communicating that which a party knows and ought to communicate .
,If a policy is cancel and the insurance company legally keeps the earned premium along with a penalty
charge the premium payers it is called a : - ANSWERWER-Short rate cancellation
Twisting is a form of a misrepresentation where a life agent : - ANSWERWER-Tries to induce a client to
lapse , forfelt , or surrender a policy for another
If all the employees of a company pay a part of their group health insurance premium , it is referred to as
a - ANSWERWER-Contributory group policy
A non - medical application - ANSWERWER-May require an applicant to submit to a physical
which of the following does Part A of Medicare not provide coverage for : - ANSWERWER-doctors
services
Medicare will not pay for which of the following ? - ANSWERWER-Long term care
Medicare has two basic coverage categories . Choose the true statement from the following : -
ANSWERWER-
Part A : hospital insurance , Part B : medical insurance
All of the following are associated with accident insurance except : - ANSWERWER-It covers loss of
time away from the job because of an accident as well as sickness
Which of the listed premium payment schedules would reflect the lowest overall premium ? -
ANSWERWERAnnual
Who is protected by the incontestable clause of a life insurance policy ? - ANSWERWER-The
beneficiary
Regarding the difference between mortality tables for annuities and life insurance choose the correct
statement from the following : - ANSWERWER-Policy insured die sooner
,An annuity in which the underlying investment performance will cause a fluctuation in the value of the
benefit is : - ANSWERWER-A variable annuity
Industrial life insurance contains a limit disallowing any one person from having more than a stated
amount of insurance . What is the limit ? - ANSWERWER-$ 10,000
At what age does a " jumping juvenile " policy increase the benefit from $ 1,000 to $ 5,000 ? -
ANSWERWER21
All individuals listed below are entitled to Medicare , except ? - ANSWERWER-Person who qualify for
public assistance programs
Overall there are three main factors that are used to compute the premiums charged for health
insurance . They are : - ANSWERWER-Morbidity , interest , expenses
An entity that provides the administrative services for employers , such as the documentation and record
keeping for group insurance needs , is called : - ANSWERWER-A third party administrator
What do the letters IPA stand for in the managed care industry - ANSWERWER-Independent Practice
Association
All of the following are under the jurisdiction of Department of Insurance except : - ANSWERWER-
HMOs
Tax laws has establish the Modified Endowment Contract or MEC " select the correct response : -
ANSWERWER-Taxing their living benefit is not like a non - MEC
The period of time in which a housewife , who has survived the death of her husband , will not receive
income benefits from social security is called the : - ANSWERWER-Black out period
, Mary has a restricted license . This meANSWER she : - ANSWERWER-May have this license revoked
or suspended without a hearing
Coverage cannot be obtained from an admitted insurer . Therefore an entity is identified that can sell
insurance not underwritten in California . What is this entity ? - ANSWERWER-A surplus lines broker
Industrial life insurance , used in the early years of the insurance business , has what characteristics : -
ANSWERWER-Premiums are submitted every week
Medicare coverage Part A extends coverage to skilled nursing facilities . What is the maximum time the
entitled person can receive benefits per benefit period ? - ANSWERWER-100 days
Taxes paid on the benefits received from disability policies are determined by who pays the premium . If
an employee pays the premiums - ANSWERWER-The benefits are non - taxable to that employee
Which policy allows the insured to choose where the assets backing the cash value are invested ? -
ANSWERWER-Variable life
In a noncontributory group disability income insurance plan , what is the tax treatment of benefits
received by an employee ? - ANSWERWER-Benefits are included in the employee's gross income
Select the correct statement concerning qualified retirement plANSWER . - ANSWERWER-Incomes
taxes are deferred until a later date when the income is received by the plan participant
There is a financial product that was created to address the risk of a person outlive their life savings .
What is this product called ? - ANSWERWER-Annuities
A life insurance application important for all of the following reasons EXCEPT : - ANSWERWER-The
beneficiary must sign the application before the insurer will issue the policy
