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Life & Health Exam Guide Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
A level term policy is one where....
Ans: The premium & the protection remain constant for the term of the policy.
Which policy will have immediate cash?
A. Decreasing term
B. Single premium
C. 10-pay life
D. 30-pay life
Ans: B. Single premium.
An immediate annuity with quarterly payments will begin making payments
when...
Ans: 1 year after the annuity is purchased.
The legal doctrine that prevents one from exercising a right of privilege is
called...
Ans: Estoppel
A straight life annuity provides which of the following?
A. A periodic income for the annuitant for life
B. A guaranteed maximum benefit
C. Income payments to a beneficiary after the annuitants death.
D. A periodic income to the annuitant for a number of years.
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Ans: A. A periodic income for the annuitant for life.
Interest sensitive whole life is also called _______ ___________ _____ ____
Ans: Current assumption whole life
If you misstate your age when applying for Disability Income insurance, you may
suffer what consequence at claim time?
Ans: No effect—your age has no factor in rating the policy.
When the owner of a life insurance policy transfers ownership to a 3rd part in
return for payment of a large percentage of the death benefit; this is known as
what?
Ans: A viatical settlement agreement
Under the typical coordination of benefits clause in group health insurance, how
is primary coverage determined?
Ans: The employees plan is primary & the other may be excess.
You must notify the company of a health insurance claim within how many days?
Ans: 20 days
The factors that determine the amount of each payment to a beneficiary under
the fixed period (fixed time) option are the ______________________ & the
____________________.
Ans: Length of the fixed period & the death benefit of the policy & interest.
Many major medical policy's include a provision whereby when expenses reach
a certain dollar amount, the insured no longer shares in the cost of expenses; the
insurer pays 100% of remaining covered charges. This is referred to as the ____
____ _____.
Ans: Stop-Loss limit
Normally, Blue Cross and Blue Shield organizations make payments for medical
expenses directly to whom?
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Ans: Directly to the providers
What are the two major approaches to defining "totally disabled" for disability
insurance?
Ans: "Your" occupation or "any" occupation.
All of the following are examples of insurable interest EXCEPT what?
A. An airline insuring the passengers lives
B. A person insuring his or her own life
C. A company insuring the life of its president
D. A parent insuring the life of its child
Ans: A. An airline insuring the passengers lives.
The general provisions that apply to all Medicare supplement plans (MSP's) are
all of the following EXCEPT....
A. MSP's must not offer benefits that simply duplicate Medicare.
B. MSP's must not be more restrictive than Medicare.
C. MSP's must be more restrictive than Medicare.
D. There are loss ration requirements for all MSP's.
Ans: B. MSP's must not be more restrictive than Medicare.
If an agent tells a proposed insured he has authority to issue a policy, which he is
actually disallowed to do by his agency contract, the insured may reasonably
assume the agent has this authority. This is an example of ________ authority?
Ans: Apparent
A disability that is presumed to result in/from the same or a related cause of
prior disability is called a __________ disability.
Ans: Recurrent
How can "key employee" disability income insurance purchased by a business be
used by the business?
A. Temporarily replace key employee
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B. As salary continuation for disabled employee
C. Both A & B
D. None of the above
Ans: D. None of the above
The settlement option under which the principle never decreases unless the
beneficiary makes withdrawals is the _____________ option?
Ans: Interest only option
This rider can be attached to a permanent life insurance policy to add more
coverage for a limited time.
Ans: Term rider
The fundamental insurance concept that an insured should not profit from a loss,
but should be restored in whole or in part to the approximate financial condition
occupied before the loss is known as the principle of___________?
Ans: Indemnity
Which life policy starts as term insurance but after a certain period of time
automatically converts to whole life?
Ans: Modified life
When a dependent child covered under the parents major medical policy
reaches the limiting age, what is the provision that allows the child to purchase
his or her own policy without establishing insurability?
Ans: Conversion Privilege
In general, advertising would include each of the following EXCEPT what?
A. Communication persuading the purchase of insurance
B. Communication used to encourage policy renewal
C. Communication used to encourage reinstatement
D. Communication of administrative matters
Click here for more: Preppass - Stuvia
Life & Health Exam Guide Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
A level term policy is one where....
Ans: The premium & the protection remain constant for the term of the policy.
Which policy will have immediate cash?
A. Decreasing term
B. Single premium
C. 10-pay life
D. 30-pay life
Ans: B. Single premium.
An immediate annuity with quarterly payments will begin making payments
when...
Ans: 1 year after the annuity is purchased.
The legal doctrine that prevents one from exercising a right of privilege is
called...
Ans: Estoppel
A straight life annuity provides which of the following?
A. A periodic income for the annuitant for life
B. A guaranteed maximum benefit
C. Income payments to a beneficiary after the annuitants death.
D. A periodic income to the annuitant for a number of years.
,Page | 2
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Ans: A. A periodic income for the annuitant for life.
Interest sensitive whole life is also called _______ ___________ _____ ____
Ans: Current assumption whole life
If you misstate your age when applying for Disability Income insurance, you may
suffer what consequence at claim time?
Ans: No effect—your age has no factor in rating the policy.
When the owner of a life insurance policy transfers ownership to a 3rd part in
return for payment of a large percentage of the death benefit; this is known as
what?
Ans: A viatical settlement agreement
Under the typical coordination of benefits clause in group health insurance, how
is primary coverage determined?
Ans: The employees plan is primary & the other may be excess.
You must notify the company of a health insurance claim within how many days?
Ans: 20 days
The factors that determine the amount of each payment to a beneficiary under
the fixed period (fixed time) option are the ______________________ & the
____________________.
Ans: Length of the fixed period & the death benefit of the policy & interest.
Many major medical policy's include a provision whereby when expenses reach
a certain dollar amount, the insured no longer shares in the cost of expenses; the
insurer pays 100% of remaining covered charges. This is referred to as the ____
____ _____.
Ans: Stop-Loss limit
Normally, Blue Cross and Blue Shield organizations make payments for medical
expenses directly to whom?
,Page | 3
Click here for more: Preppass - Stuvia
Ans: Directly to the providers
What are the two major approaches to defining "totally disabled" for disability
insurance?
Ans: "Your" occupation or "any" occupation.
All of the following are examples of insurable interest EXCEPT what?
A. An airline insuring the passengers lives
B. A person insuring his or her own life
C. A company insuring the life of its president
D. A parent insuring the life of its child
Ans: A. An airline insuring the passengers lives.
The general provisions that apply to all Medicare supplement plans (MSP's) are
all of the following EXCEPT....
A. MSP's must not offer benefits that simply duplicate Medicare.
B. MSP's must not be more restrictive than Medicare.
C. MSP's must be more restrictive than Medicare.
D. There are loss ration requirements for all MSP's.
Ans: B. MSP's must not be more restrictive than Medicare.
If an agent tells a proposed insured he has authority to issue a policy, which he is
actually disallowed to do by his agency contract, the insured may reasonably
assume the agent has this authority. This is an example of ________ authority?
Ans: Apparent
A disability that is presumed to result in/from the same or a related cause of
prior disability is called a __________ disability.
Ans: Recurrent
How can "key employee" disability income insurance purchased by a business be
used by the business?
A. Temporarily replace key employee
, Page | 4
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B. As salary continuation for disabled employee
C. Both A & B
D. None of the above
Ans: D. None of the above
The settlement option under which the principle never decreases unless the
beneficiary makes withdrawals is the _____________ option?
Ans: Interest only option
This rider can be attached to a permanent life insurance policy to add more
coverage for a limited time.
Ans: Term rider
The fundamental insurance concept that an insured should not profit from a loss,
but should be restored in whole or in part to the approximate financial condition
occupied before the loss is known as the principle of___________?
Ans: Indemnity
Which life policy starts as term insurance but after a certain period of time
automatically converts to whole life?
Ans: Modified life
When a dependent child covered under the parents major medical policy
reaches the limiting age, what is the provision that allows the child to purchase
his or her own policy without establishing insurability?
Ans: Conversion Privilege
In general, advertising would include each of the following EXCEPT what?
A. Communication persuading the purchase of insurance
B. Communication used to encourage policy renewal
C. Communication used to encourage reinstatement
D. Communication of administrative matters
