IOWA Life and Health Insurance
Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Which of the following will vary the length of the grace period in health
insurance policies?
a) The mode of the premium payment
b) The length of any elimination period
c) The length of time the insured has been insured
d) The term of the policy - ANSWER a) The mode of the premium payment
The grace period is 7 days on a policy with a weekly premium mode; 10 days if a
monthly premium mode; 31 days on other premium modes.
2. What is the "elimination period" under a long term care policy?
a) The amount of time that benefits can be received tax-free.
b) The amount of time during which no benefits will be paid.
c) The amount of time that the insured will have to review the policy and return it
for a full refund.
d) The amount of consecutive days during which the benefits will be paid. -
ANSWER b) The amount of time during which no benefits will be paid.
,The elimination period starts on the day that the policy goes into effect. This is the
amount of time (usually 0-365 days) that no benefits will be paid. LTC policies
typically have a 30-day elimination period.
3. The dividend option in which the policyowner uses dividends to purchase a
term policy for one year is referred to as the
a) One-year term option.
b) Paid-up option.
c) Accelerated endowment.
d) Paid-up additions. - ANSWER a) One-year term option.
The dividend is utilized to purchase one year term insurance.
4. Which of the following is INCORRECT concerning a noncontributory group
plan?
a) They help to reduce adverse selection against the insurer.
b) They require 100% employee participation.
c) The employer pays 100% of the premiums.
d) The employees receive individual policies. - ANSWER d) The employees
receive individual policies.
The employer receives a master policy, and employees receive a certificate of
insurance.
,5. Which of the following is considered a qualifying event under COBRA?
a) Marriage
b) Relocation
c) Promotion
d) Divorce - ANSWER d) Divorce
Other qualifying events include the voluntary termination of employment; an
employee's change from full time to part time; or the death of the employee.
6. Susan has a short-term disability income policy with an "integration of
benefits" provision. If she becomes disabled and is also eligible to receive benefits
from the state disability insurance program, her policy will
a) Pay the full benefits. She cannot collect state disability payments if she has a
personal disability policy.
b) Waive premium payments after the state disability payments begin.
c) Reduce its benefits by an amount equal to her state disability payments.
d) Not pay until her state disability benefits have been exhausted. - ANSWER
c) Reduce its benefits by an amount equal to her state disability payments.
The "integration of benefits" provision is designed to prevent a duplication of
benefits or "overinsurance."
7. All of the following are examples of risk retention EXCEPT
a) Premiums.
, b) Deductibles.
c) Copayments.
d) Self-insurance. - ANSWER a) Premiums.
Retention is a planned assumption of risk, or acceptance of responsibility for the
loss by an insured through the use of deductibles, copayments, or self-insurance.
8. "A physical or mental impairment which substantially limits one or more major
life activities, or a record of such impairment, or being considered as having such
an impairment," is the definition of a disability according to
a) COBRA
b) ERISA
c) ADL
d) ADA - ANSWER d) ADA
This is the definition of the Americans with Disabilities Act.
9. Signing and dating a delivery receipt for a life insurance policy helps to
establish all of the following timeframes EXCEPT
a) The Grace Period.
b) The Incontestability Period.
c) The Free-Look Period.
d) The Right of Rescission. - ANSWER a) The Grace Period.
Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Which of the following will vary the length of the grace period in health
insurance policies?
a) The mode of the premium payment
b) The length of any elimination period
c) The length of time the insured has been insured
d) The term of the policy - ANSWER a) The mode of the premium payment
The grace period is 7 days on a policy with a weekly premium mode; 10 days if a
monthly premium mode; 31 days on other premium modes.
2. What is the "elimination period" under a long term care policy?
a) The amount of time that benefits can be received tax-free.
b) The amount of time during which no benefits will be paid.
c) The amount of time that the insured will have to review the policy and return it
for a full refund.
d) The amount of consecutive days during which the benefits will be paid. -
ANSWER b) The amount of time during which no benefits will be paid.
,The elimination period starts on the day that the policy goes into effect. This is the
amount of time (usually 0-365 days) that no benefits will be paid. LTC policies
typically have a 30-day elimination period.
3. The dividend option in which the policyowner uses dividends to purchase a
term policy for one year is referred to as the
a) One-year term option.
b) Paid-up option.
c) Accelerated endowment.
d) Paid-up additions. - ANSWER a) One-year term option.
The dividend is utilized to purchase one year term insurance.
4. Which of the following is INCORRECT concerning a noncontributory group
plan?
a) They help to reduce adverse selection against the insurer.
b) They require 100% employee participation.
c) The employer pays 100% of the premiums.
d) The employees receive individual policies. - ANSWER d) The employees
receive individual policies.
The employer receives a master policy, and employees receive a certificate of
insurance.
,5. Which of the following is considered a qualifying event under COBRA?
a) Marriage
b) Relocation
c) Promotion
d) Divorce - ANSWER d) Divorce
Other qualifying events include the voluntary termination of employment; an
employee's change from full time to part time; or the death of the employee.
6. Susan has a short-term disability income policy with an "integration of
benefits" provision. If she becomes disabled and is also eligible to receive benefits
from the state disability insurance program, her policy will
a) Pay the full benefits. She cannot collect state disability payments if she has a
personal disability policy.
b) Waive premium payments after the state disability payments begin.
c) Reduce its benefits by an amount equal to her state disability payments.
d) Not pay until her state disability benefits have been exhausted. - ANSWER
c) Reduce its benefits by an amount equal to her state disability payments.
The "integration of benefits" provision is designed to prevent a duplication of
benefits or "overinsurance."
7. All of the following are examples of risk retention EXCEPT
a) Premiums.
, b) Deductibles.
c) Copayments.
d) Self-insurance. - ANSWER a) Premiums.
Retention is a planned assumption of risk, or acceptance of responsibility for the
loss by an insured through the use of deductibles, copayments, or self-insurance.
8. "A physical or mental impairment which substantially limits one or more major
life activities, or a record of such impairment, or being considered as having such
an impairment," is the definition of a disability according to
a) COBRA
b) ERISA
c) ADL
d) ADA - ANSWER d) ADA
This is the definition of the Americans with Disabilities Act.
9. Signing and dating a delivery receipt for a life insurance policy helps to
establish all of the following timeframes EXCEPT
a) The Grace Period.
b) The Incontestability Period.
c) The Free-Look Period.
d) The Right of Rescission. - ANSWER a) The Grace Period.
