AD Banker Life & Health ACTUAL
QUESTIONS AND CORRECT ANSWERS
All of the following are characteristics of traditional health insurance plans, except: - CORRECT
ANSWERS The insured must see a network provider (The insured may choose any
provider and is not limited to network providers.)
______________ are conditions stipulated in the contract for which the insurer will not provide
coverage. - CORRECT ANSWERS Exclusions
Which of the following has primary responsibility for ensuring that the application is filled out
completely? - CORRECT ANSWERS Producer
With a Variable Life Policy, which of the following is guaranteed? - CORRECT
ANSWERS Death benefit
All of the following statements are correct concerning coverage for hospice care and home health
care, except: - CORRECT ANSWERS Benefits may never extend past 6 months
The agent's primary underwriting role is: - CORRECT ANSWERS To make sure the
application provides the proper information
A $100,000 policy with a waiver of premium rider and $30,000 of cash value is in force. The
base policy costs $750 and the rider is $50. What is the total premium annually the policyowner
must pay to keep the policy in force if the policyowner decides to cancel the rider? - CORRECT
ANSWERS $750
Mary decides to convert her Term Policy to permanent protection. Which of the following
statements is true regarding the conversion? - CORRECT ANSWERS She may convert
,without evidence of insurability (The Conversion Option of a Term Policy allows conversion to a
Permanent Policy without evidence of insurability, but it is not an option that lasts forever.
Typically the policyowner must do so within the first 10 years or so, and not after a specified
age, such as 60.)
In Colorado, if a policy being delivered is a replacement policy, the free look period must be for:
- CORRECT ANSWERS 30 days
In Colorado, all health plans must: - CORRECT ANSWERS Offer the applicant the
opportunity to buy coverage for medically necessary home health and hospice care
J owns a policy that combines the best features of Basic Medical Expense Plans and Major
Medical Insurance into a single policy to give him the most complete hospital coverage. J owns
a: - CORRECT ANSWERS Comprehensive Major Medical Policy
A small employer in Colorado applies for a small employer health benefit plan. The small
employer agrees to pay the required premiums and meets all participation requirements. Which
of the following statements is true? - CORRECT ANSWERS The small employer is
guaranteed issue
A _______ Option protects the policyowner against total loss of benefits in the event of a lapsed
policy. - CORRECT ANSWERS Nonforfeiture
Examples of third-party ownership include all of the following, except: - CORRECT
ANSWERS An adjustable life policy bought by Sam on Sam (Third-party ownership is
when an applicant buys a policy on someone other than themselves.)
Which of the following statements is true regarding group short term disability benefits: -
CORRECT ANSWERS Elimination period may be as short as zero days for accidents
, Universal Life and Variable Universal Life share all of the following characteristics, except: -
CORRECT ANSWERS The investment risk
What is the result of an insured not receiving a claim form within the time period allotted after
submitting a notice of claim? - CORRECT ANSWERS The insured can submit written
proof of the loss (The claim form must be received by the insured from the company within 15
days after notice of claim. If forms are not furnished, the insured may submit written proof of
occurrence, character, and extent of loss.)
The grace period for an individual health insurance policy being paid on a quarterly basis is: -
CORRECT ANSWERS 31 days
What will cause the time period of the fixed amount settlement option to be extended? -
CORRECT ANSWERS An increase in interest credited
All of the following are characteristics of Universal Life Insurance, except: - CORRECT
ANSWERS The policyowner can choose which investment(s) to place the cash values into
from those available (The policyowner can pay any amount of premium at any time subject to
policy limitations and can request an increase (if proof of insurability is provided) or decrease in
the face amount. Costs for coverage are deducted monthly from the cash values.)
All are true of HMO subscribers, except: - CORRECT ANSWERS Subscribers do not pay
a copayment (Subscribers do not pay deductibles, file claims, or receive a bill; members may be
required to make a copayment for office visits and hospital services.)
If a producer is the subject of criminal prosecution in any jurisdiction, the producer must report
to the Commissioner after the initial pretrial hearing date within what time period? - CORRECT
ANSWERS 30 days (A producer or business entity must report any criminal prosecution in
any jurisdiction to the Commissioner within 30 days after the final disposition.)
QUESTIONS AND CORRECT ANSWERS
All of the following are characteristics of traditional health insurance plans, except: - CORRECT
ANSWERS The insured must see a network provider (The insured may choose any
provider and is not limited to network providers.)
______________ are conditions stipulated in the contract for which the insurer will not provide
coverage. - CORRECT ANSWERS Exclusions
Which of the following has primary responsibility for ensuring that the application is filled out
completely? - CORRECT ANSWERS Producer
With a Variable Life Policy, which of the following is guaranteed? - CORRECT
ANSWERS Death benefit
All of the following statements are correct concerning coverage for hospice care and home health
care, except: - CORRECT ANSWERS Benefits may never extend past 6 months
The agent's primary underwriting role is: - CORRECT ANSWERS To make sure the
application provides the proper information
A $100,000 policy with a waiver of premium rider and $30,000 of cash value is in force. The
base policy costs $750 and the rider is $50. What is the total premium annually the policyowner
must pay to keep the policy in force if the policyowner decides to cancel the rider? - CORRECT
ANSWERS $750
Mary decides to convert her Term Policy to permanent protection. Which of the following
statements is true regarding the conversion? - CORRECT ANSWERS She may convert
,without evidence of insurability (The Conversion Option of a Term Policy allows conversion to a
Permanent Policy without evidence of insurability, but it is not an option that lasts forever.
Typically the policyowner must do so within the first 10 years or so, and not after a specified
age, such as 60.)
In Colorado, if a policy being delivered is a replacement policy, the free look period must be for:
- CORRECT ANSWERS 30 days
In Colorado, all health plans must: - CORRECT ANSWERS Offer the applicant the
opportunity to buy coverage for medically necessary home health and hospice care
J owns a policy that combines the best features of Basic Medical Expense Plans and Major
Medical Insurance into a single policy to give him the most complete hospital coverage. J owns
a: - CORRECT ANSWERS Comprehensive Major Medical Policy
A small employer in Colorado applies for a small employer health benefit plan. The small
employer agrees to pay the required premiums and meets all participation requirements. Which
of the following statements is true? - CORRECT ANSWERS The small employer is
guaranteed issue
A _______ Option protects the policyowner against total loss of benefits in the event of a lapsed
policy. - CORRECT ANSWERS Nonforfeiture
Examples of third-party ownership include all of the following, except: - CORRECT
ANSWERS An adjustable life policy bought by Sam on Sam (Third-party ownership is
when an applicant buys a policy on someone other than themselves.)
Which of the following statements is true regarding group short term disability benefits: -
CORRECT ANSWERS Elimination period may be as short as zero days for accidents
, Universal Life and Variable Universal Life share all of the following characteristics, except: -
CORRECT ANSWERS The investment risk
What is the result of an insured not receiving a claim form within the time period allotted after
submitting a notice of claim? - CORRECT ANSWERS The insured can submit written
proof of the loss (The claim form must be received by the insured from the company within 15
days after notice of claim. If forms are not furnished, the insured may submit written proof of
occurrence, character, and extent of loss.)
The grace period for an individual health insurance policy being paid on a quarterly basis is: -
CORRECT ANSWERS 31 days
What will cause the time period of the fixed amount settlement option to be extended? -
CORRECT ANSWERS An increase in interest credited
All of the following are characteristics of Universal Life Insurance, except: - CORRECT
ANSWERS The policyowner can choose which investment(s) to place the cash values into
from those available (The policyowner can pay any amount of premium at any time subject to
policy limitations and can request an increase (if proof of insurability is provided) or decrease in
the face amount. Costs for coverage are deducted monthly from the cash values.)
All are true of HMO subscribers, except: - CORRECT ANSWERS Subscribers do not pay
a copayment (Subscribers do not pay deductibles, file claims, or receive a bill; members may be
required to make a copayment for office visits and hospital services.)
If a producer is the subject of criminal prosecution in any jurisdiction, the producer must report
to the Commissioner after the initial pretrial hearing date within what time period? - CORRECT
ANSWERS 30 days (A producer or business entity must report any criminal prosecution in
any jurisdiction to the Commissioner within 30 days after the final disposition.)
