Mississippi Life and Health Final Exam
Questions & Answers
What kind of life insurance product covers children under their parent's policy?
Family Maintenance rider
Term rider
Family Income rider
Payor benefit - ANSWERSTerm Rider
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Corporation
Employee
Employer
Labor union - ANSWERSemployee
A producer must report to the Commissioner of Insurance any administrative action or
criminal charges taken against the producer within __ days of the final disposition of the
matter.
10
15
20
30 - ANSWERS30
The return of all or part of the commission to the insured by an insurance producer as
an inducement to purchase the insurance is known as
twisting
redlining
rebating
misrepresentation - ANSWERSrebating
Insurance producer licenses normally must be renewed every
six months
one year
,two years
three years - ANSWERStwo years
Which of the following phrases refers to the fees charged by a healthcare professional?
Deductible
Coinsurance
Usual, customary, and reasonable expenses
Hospital expense - ANSWERSUsual, customary, and reasonable expenses
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n)
closed panel
open panel
co-op panel
capitation panel - ANSWERSclosed panel
An accident policy will most likely pay a benefit for a(n)
self-inflicted injury
critical illness
on-the-job accident
off-the-job accident - ANSWERSoff-the-job accident
B has a $100,000 Accidental Death and Dismemberment policy that pays triple
indemnity for common carrier death. If B is killed from an accident on a commercial
flight, what will the policy pay B's beneficiary?
$100,000
$200,000
$300,000
$400,000 - ANSWERS$300,000
An insurance company that replaces existing insurance must provide a copy of which of
the following documents to the existing insurance company?
The new policy
The premium and interest figures for the proposed policy
A policy summary
The Notice Regarding Proposed Replacement of Life Insurance or Annuity -
ANSWERSa policy summary
An insurance company formed under the laws of Canada would be known in Mississippi
as
, a domestic company
an alien company
a foreign company
a mutual company - ANSWERSan alien company
What kind of life insurance beneficiary requires his/her consent when a change of
beneficiary is made?
Irrevocable beneficiary
Tertiary beneficiary
Primary beneficiary
Revocable beneficiary - ANSWERSirrevocable beneficiary
K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true?
-Proceeds will be paid to P's estate
-Proceeds will be divided equally between K's and P's estate
-Proceeds will be payable to K's estate if P dies within a specified time
-The courts will decide who will receive death benefits - ANSWERSProceeds will be
payable to K's estate if P dies within a specified time
Unfair discrimination is described as
failing to choose a specific policy type
charging different rates for persons in the same class
writing different policies for different individuals
writing policies for only one company - ANSWERScharging different rates for persons
in the same class
An agent takes an individual Disability Income application, collects the appropriate
premium, and issues the prospective insured a conditional receipt. The next step the
insurance company will take is to
-issue the policy only when the initial premium check has cleared
-determine if the applicant is insurable by investigating family health history
-issue the policy on a standard basis
-determine if the applicant is an acceptable risk by completing standard underwriting
procedures - ANSWERSdetermine if the applicant is an acceptable risk by completing
standard underwriting procedures
Which premium schedule results in the lowest cost to the policy owner?
Semi-annual
Monthly
Questions & Answers
What kind of life insurance product covers children under their parent's policy?
Family Maintenance rider
Term rider
Family Income rider
Payor benefit - ANSWERSTerm Rider
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Corporation
Employee
Employer
Labor union - ANSWERSemployee
A producer must report to the Commissioner of Insurance any administrative action or
criminal charges taken against the producer within __ days of the final disposition of the
matter.
10
15
20
30 - ANSWERS30
The return of all or part of the commission to the insured by an insurance producer as
an inducement to purchase the insurance is known as
twisting
redlining
rebating
misrepresentation - ANSWERSrebating
Insurance producer licenses normally must be renewed every
six months
one year
,two years
three years - ANSWERStwo years
Which of the following phrases refers to the fees charged by a healthcare professional?
Deductible
Coinsurance
Usual, customary, and reasonable expenses
Hospital expense - ANSWERSUsual, customary, and reasonable expenses
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n)
closed panel
open panel
co-op panel
capitation panel - ANSWERSclosed panel
An accident policy will most likely pay a benefit for a(n)
self-inflicted injury
critical illness
on-the-job accident
off-the-job accident - ANSWERSoff-the-job accident
B has a $100,000 Accidental Death and Dismemberment policy that pays triple
indemnity for common carrier death. If B is killed from an accident on a commercial
flight, what will the policy pay B's beneficiary?
$100,000
$200,000
$300,000
$400,000 - ANSWERS$300,000
An insurance company that replaces existing insurance must provide a copy of which of
the following documents to the existing insurance company?
The new policy
The premium and interest figures for the proposed policy
A policy summary
The Notice Regarding Proposed Replacement of Life Insurance or Annuity -
ANSWERSa policy summary
An insurance company formed under the laws of Canada would be known in Mississippi
as
, a domestic company
an alien company
a foreign company
a mutual company - ANSWERSan alien company
What kind of life insurance beneficiary requires his/her consent when a change of
beneficiary is made?
Irrevocable beneficiary
Tertiary beneficiary
Primary beneficiary
Revocable beneficiary - ANSWERSirrevocable beneficiary
K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true?
-Proceeds will be paid to P's estate
-Proceeds will be divided equally between K's and P's estate
-Proceeds will be payable to K's estate if P dies within a specified time
-The courts will decide who will receive death benefits - ANSWERSProceeds will be
payable to K's estate if P dies within a specified time
Unfair discrimination is described as
failing to choose a specific policy type
charging different rates for persons in the same class
writing different policies for different individuals
writing policies for only one company - ANSWERScharging different rates for persons
in the same class
An agent takes an individual Disability Income application, collects the appropriate
premium, and issues the prospective insured a conditional receipt. The next step the
insurance company will take is to
-issue the policy only when the initial premium check has cleared
-determine if the applicant is insurable by investigating family health history
-issue the policy on a standard basis
-determine if the applicant is an acceptable risk by completing standard underwriting
procedures - ANSWERSdetermine if the applicant is an acceptable risk by completing
standard underwriting procedures
Which premium schedule results in the lowest cost to the policy owner?
Semi-annual
Monthly
