Insurance Exam Questions with Verified Answers Graded A
With a Straight Life policy, what happens if the A specified income status prior to the disability
insured lives to age 100 - ANSWER -The
policy matures and the cash value is paid to the
insured.
In Pennsylvania, a "pre-existing condition" is
defined as a disease or condition for which
medical attention was received at least -
Most policies will pay the accident death benefits ANSWER -90 days prior to the effective
as long as the death is caused by the accident date of coverage.
and occurs within - ANSWER -90 days.
An insured was involved in an accident and could
What is the maximum period of coverage under not perform her current job for 3 years. If the
COBRA? - ANSWER -36 months insured could reasonably perform another job
utilizing similar skills after 1 month, for how long
would she be receiving benefits under an "own
occupation" disability plan? - ANSWER -2
An insured has chosen joint and 2/3 survivor as years
the settlement option. What does this mean to
the beneficiaries? - ANSWER -The
surviving beneficiary will continue receiving 2/3 of
the benefit paid when the insured was alive. After a person's employment is terminated, it is
possible to obtain individual health insurance
after losing the group health coverage provided
by the employer. Which of the following is NOT
What percentage of individually-owned disability true? - ANSWER -By law, the new,
income is taxable? - ANSWER -0% individual policy must provide the same benefits
as the group insurance policy.
How are the variable annuities regulated? -
Amanda is scheduled for a root canal. Which
ANSWER -By state and federal agencies
type of treatment is this? - ANSWER -
Endodontics
An insured committed suicide 6 months after his
life insurance policy was issued. The insurer will -
Which of the following is deemed to be
ANSWER -Refund the premiums paid.
consideration on the part of the applicant, in
respect to the Consideration Clause? -
ANSWER -Payment of premium
Which of the following conditions would a
disability income policy most likely NOT require
in order to qualify for benefits? - ANSWER -
As it pertains to group health insurance, COBRA
1/8
, Insurance Exam Questions with Verified Answers Graded A
stipulates that - ANSWER -Group coverage was paid by the employer.
must be extended for terminated employees up
to a certain period of time at the former
employee's expense.
All of the following are differences between
individual and group health insurance EXCEPT -
ANSWER -Individual insurance does not
Which of the following is NOT a term for the require medical examinations, while group
period of time during which the annuitant or the insurance does require medical examinations.
beneficiary receives income? - ANSWER -
Income period
Your client owns a Market Value Adjusted
Annuity. In order to pay for a series of large,
What of the following must an alien insurer obtain unexpected medical bills, he decides to surrender
in order to transact insurance within a given his policy prematurely. Which of the following will
state? - ANSWER -Certificate of Authority determine the penalty that that annuity owner will
have to pay? - ANSWER -Current interest
rate at the time of surrender
An applicant is discussing his options for
Medicare supplement coverage with his agent.
He is eligible for the Medicare supplement plans. For an individual who is eligible for Medicare at
What is the insurance company obligated to do? age 65, and who is still employed and covered
- ANSWER -Offer the supplement policy on under the employer's plan, which of the following
a guaranteed issue basis is true? - ANSWER -The employer plan is
primary coverage, and Medicare is secondary
coverage
The paid-up addition option uses the dividend -
ANSWER -To purchase a smaller amount
of the same type of insurance as the original Which of the following expenses is NOT covered
policy. by a health insurance policy? - ANSWER -
Funeral
Which of the following is true regarding a term
health policy? - ANSWER -It is According to the incontestability provision, which
nonrenewable. of the following is a reason an insurer can deny a
claim on a policy that has been in force for 2
years? - ANSWER -Insured stopped paying
premiums
Which of the following is true regarding benefits
paid to disabled employees? - ANSWER -
They may be subject to taxation if the premium
A 12-year-old child applies for a life insurance
2/8
With a Straight Life policy, what happens if the A specified income status prior to the disability
insured lives to age 100 - ANSWER -The
policy matures and the cash value is paid to the
insured.
In Pennsylvania, a "pre-existing condition" is
defined as a disease or condition for which
medical attention was received at least -
Most policies will pay the accident death benefits ANSWER -90 days prior to the effective
as long as the death is caused by the accident date of coverage.
and occurs within - ANSWER -90 days.
An insured was involved in an accident and could
What is the maximum period of coverage under not perform her current job for 3 years. If the
COBRA? - ANSWER -36 months insured could reasonably perform another job
utilizing similar skills after 1 month, for how long
would she be receiving benefits under an "own
occupation" disability plan? - ANSWER -2
An insured has chosen joint and 2/3 survivor as years
the settlement option. What does this mean to
the beneficiaries? - ANSWER -The
surviving beneficiary will continue receiving 2/3 of
the benefit paid when the insured was alive. After a person's employment is terminated, it is
possible to obtain individual health insurance
after losing the group health coverage provided
by the employer. Which of the following is NOT
What percentage of individually-owned disability true? - ANSWER -By law, the new,
income is taxable? - ANSWER -0% individual policy must provide the same benefits
as the group insurance policy.
How are the variable annuities regulated? -
Amanda is scheduled for a root canal. Which
ANSWER -By state and federal agencies
type of treatment is this? - ANSWER -
Endodontics
An insured committed suicide 6 months after his
life insurance policy was issued. The insurer will -
Which of the following is deemed to be
ANSWER -Refund the premiums paid.
consideration on the part of the applicant, in
respect to the Consideration Clause? -
ANSWER -Payment of premium
Which of the following conditions would a
disability income policy most likely NOT require
in order to qualify for benefits? - ANSWER -
As it pertains to group health insurance, COBRA
1/8
, Insurance Exam Questions with Verified Answers Graded A
stipulates that - ANSWER -Group coverage was paid by the employer.
must be extended for terminated employees up
to a certain period of time at the former
employee's expense.
All of the following are differences between
individual and group health insurance EXCEPT -
ANSWER -Individual insurance does not
Which of the following is NOT a term for the require medical examinations, while group
period of time during which the annuitant or the insurance does require medical examinations.
beneficiary receives income? - ANSWER -
Income period
Your client owns a Market Value Adjusted
Annuity. In order to pay for a series of large,
What of the following must an alien insurer obtain unexpected medical bills, he decides to surrender
in order to transact insurance within a given his policy prematurely. Which of the following will
state? - ANSWER -Certificate of Authority determine the penalty that that annuity owner will
have to pay? - ANSWER -Current interest
rate at the time of surrender
An applicant is discussing his options for
Medicare supplement coverage with his agent.
He is eligible for the Medicare supplement plans. For an individual who is eligible for Medicare at
What is the insurance company obligated to do? age 65, and who is still employed and covered
- ANSWER -Offer the supplement policy on under the employer's plan, which of the following
a guaranteed issue basis is true? - ANSWER -The employer plan is
primary coverage, and Medicare is secondary
coverage
The paid-up addition option uses the dividend -
ANSWER -To purchase a smaller amount
of the same type of insurance as the original Which of the following expenses is NOT covered
policy. by a health insurance policy? - ANSWER -
Funeral
Which of the following is true regarding a term
health policy? - ANSWER -It is According to the incontestability provision, which
nonrenewable. of the following is a reason an insurer can deny a
claim on a policy that has been in force for 2
years? - ANSWER -Insured stopped paying
premiums
Which of the following is true regarding benefits
paid to disabled employees? - ANSWER -
They may be subject to taxation if the premium
A 12-year-old child applies for a life insurance
2/8
