Life & Health State Exam
What is the consideration given by an insurer in the Consideration clause of a life policy? ANS: Promise
to pay a death benefit to a named beneficiary
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? ANS: Evidence of
insurability is required when the option is exercised
P is a new employee and will be obtaining non-contributory group Major Medical Insurance from her
employer. Which of the following actions must she take during the open enrollment period? ANS: Sign
an enrollment card
S is covered by a whole life policy. Which insurance product can cover his children? ANS: Child term
rider
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is
the maximum deductible IRA contribution allowable? ANS: $6,000
which type of life insurance beneficiary requires his/her consent when a change of beneficiary is
attempted by the policy owner? ANS: Irrevocable beneficiary
B is a producer who primarily writes insurance business on his family. Which of the following is B
engaged in? ANS: Controlled business
The individual who provides general medical care for a patient as well as the referral for specialized care
is known as a: ANS: Primary Care Physician
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called
a(n) ANS: Variable Universal Life policy
,Under a Basic Medical Expense policy, what does the hospitalization expense portion cover? ANS:
hospital room and board
Any criminal charges taken against a producer must be reported to the Commissioner of Insurance by
the producer within how many days of the final disposition? ANS: 30
What is a responsibility of the Commissioner of Insurance? ANS: Administering insurance laws
Which of the following statements is CORRECT about accelerated death benefits? ANS: Must have a
terminal illness to qualify
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing,
the Commissioner of Insurance is required to ANS: give written notice to the producer
Which type of renewability best describes a Disability Income policy that covers an individual until the
age of 65, but the insurer has the right to change the premium rate for the overall risk class? ANS:
Guaranteed Renewable
Who is NOT required to sign a life insurance application? ANS: Beneficiary
Which provision allows a portion of any used medical benefits to be restored following a particular
amount of benefit has been used, or after the policy has been in effect for a particular period of time?
ANS: Restoration of used benefit
A life insurance policy would be considered a wagering contract WITHOUT: ANS: Insurable interest
What benefit does the Payor clause on a Juvenile Life policy provide? ANS: Premiums are waived if the
payor becomes disabled
,Medicare Part A and Part B do NOT pay for: ANS: Dental work
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q
be disabled before being able to apply for Social Security disability benefits? ANS: 5 months
At what point does an informal contract become binding? ANS: When consideration is provided by one
of the parties to the contract
The __________ has the right to change a life insurance policy's beneficiary. ANS: policyowner
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will
still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
ANS: Equity index insurance
Which of the following organizations would make reimbursement payments directly to the insured
individual for covered medical expenditures? ANS: Commercial insurer
A policyowner's rights are limited under which beneficiary designation? ANS: Irrevocable
A producer has returned part of his commission to the insured as an inducement to purchase the
insurance. This illegal action is called ANS: rebating
Health insurance benefits NOT covered due to an act of war are ANS: Excluded by the insurer in the
contract provisions
which of these life products is NOT considered interest sensitive ANS: Modified Whole Life
at what point does a whole life insurance policy endow ANS: when the cash value equals the death
benefit
, A(n) ______ annuity pays benefits based on units rather than stated dollar amounts ANS: Variable
What is the requirement for maintaining an individual Mississippi producer license ANS: Completing 24
hours of continuing education every 2 years
The type of deductible provision states that should more than one family member be involved in a
common accident, or suffer the same illness, only one individual deductible amount shall applied. ANS:
Common accident deductible
ABC Insurance Company is replacing an existing life policy from XYZ Insurance Company. ABC Insurance
Company must provide which of the following documents to XYZ Insurance company? ANS: A policy
summary
An example of rebating would be ANS: offering a client something of value not stated in the contract in
exchange for their business
At what point does the Life and Health Insurance Guaranty Association become involved with an
insurer's affairs? ANS: When the insurer becomes insolvent
a long term care policy sold in Mississippi must provide benefits for a minimum of ANS: 12 months
When an employee is required to pay a portion of the premium for an employer/employee group health
plan, the employee is covered under which of the following plans? ANS: Contributory
an example of life insurance policy replacement would be which of the following? ANS: cash surrender
an existing life policy and purchasing a new life policy
Premature IRA distributions are assessed a penalty tax of ANS: 10%
What is the consideration given by an insurer in the Consideration clause of a life policy? ANS: Promise
to pay a death benefit to a named beneficiary
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? ANS: Evidence of
insurability is required when the option is exercised
P is a new employee and will be obtaining non-contributory group Major Medical Insurance from her
employer. Which of the following actions must she take during the open enrollment period? ANS: Sign
an enrollment card
S is covered by a whole life policy. Which insurance product can cover his children? ANS: Child term
rider
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is
the maximum deductible IRA contribution allowable? ANS: $6,000
which type of life insurance beneficiary requires his/her consent when a change of beneficiary is
attempted by the policy owner? ANS: Irrevocable beneficiary
B is a producer who primarily writes insurance business on his family. Which of the following is B
engaged in? ANS: Controlled business
The individual who provides general medical care for a patient as well as the referral for specialized care
is known as a: ANS: Primary Care Physician
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called
a(n) ANS: Variable Universal Life policy
,Under a Basic Medical Expense policy, what does the hospitalization expense portion cover? ANS:
hospital room and board
Any criminal charges taken against a producer must be reported to the Commissioner of Insurance by
the producer within how many days of the final disposition? ANS: 30
What is a responsibility of the Commissioner of Insurance? ANS: Administering insurance laws
Which of the following statements is CORRECT about accelerated death benefits? ANS: Must have a
terminal illness to qualify
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing,
the Commissioner of Insurance is required to ANS: give written notice to the producer
Which type of renewability best describes a Disability Income policy that covers an individual until the
age of 65, but the insurer has the right to change the premium rate for the overall risk class? ANS:
Guaranteed Renewable
Who is NOT required to sign a life insurance application? ANS: Beneficiary
Which provision allows a portion of any used medical benefits to be restored following a particular
amount of benefit has been used, or after the policy has been in effect for a particular period of time?
ANS: Restoration of used benefit
A life insurance policy would be considered a wagering contract WITHOUT: ANS: Insurable interest
What benefit does the Payor clause on a Juvenile Life policy provide? ANS: Premiums are waived if the
payor becomes disabled
,Medicare Part A and Part B do NOT pay for: ANS: Dental work
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q
be disabled before being able to apply for Social Security disability benefits? ANS: 5 months
At what point does an informal contract become binding? ANS: When consideration is provided by one
of the parties to the contract
The __________ has the right to change a life insurance policy's beneficiary. ANS: policyowner
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will
still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
ANS: Equity index insurance
Which of the following organizations would make reimbursement payments directly to the insured
individual for covered medical expenditures? ANS: Commercial insurer
A policyowner's rights are limited under which beneficiary designation? ANS: Irrevocable
A producer has returned part of his commission to the insured as an inducement to purchase the
insurance. This illegal action is called ANS: rebating
Health insurance benefits NOT covered due to an act of war are ANS: Excluded by the insurer in the
contract provisions
which of these life products is NOT considered interest sensitive ANS: Modified Whole Life
at what point does a whole life insurance policy endow ANS: when the cash value equals the death
benefit
, A(n) ______ annuity pays benefits based on units rather than stated dollar amounts ANS: Variable
What is the requirement for maintaining an individual Mississippi producer license ANS: Completing 24
hours of continuing education every 2 years
The type of deductible provision states that should more than one family member be involved in a
common accident, or suffer the same illness, only one individual deductible amount shall applied. ANS:
Common accident deductible
ABC Insurance Company is replacing an existing life policy from XYZ Insurance Company. ABC Insurance
Company must provide which of the following documents to XYZ Insurance company? ANS: A policy
summary
An example of rebating would be ANS: offering a client something of value not stated in the contract in
exchange for their business
At what point does the Life and Health Insurance Guaranty Association become involved with an
insurer's affairs? ANS: When the insurer becomes insolvent
a long term care policy sold in Mississippi must provide benefits for a minimum of ANS: 12 months
When an employee is required to pay a portion of the premium for an employer/employee group health
plan, the employee is covered under which of the following plans? ANS: Contributory
an example of life insurance policy replacement would be which of the following? ANS: cash surrender
an existing life policy and purchasing a new life policy
Premature IRA distributions are assessed a penalty tax of ANS: 10%
