Health and Life Insurance Exam,
Questions and Answers
Pure Risk - ANS-Insurance is defined as the transfer of what to the insurance company
in consideration for a premium?
Speculative Risk - ANS-What type of risk is not insurable?
Exposure - ANS-A condition that could result in a loss is now as what?
Hazard - ANS-This increases the chance of loss.
Lump Sum - ANS-If a settlement option is not chosen by the beneficiary or policy owner,
which option will be used?
Straight Life - ANS-What policy would be classified as a traditional level premium
contract?
The employer is the owner and beneficiary. - ANS-Who is the owner and who is the
beneficiary on a key person life insurance policy?
Promote the public welfare - ANS-What is the purpose of insurance regulation?
30 months - ANS-Employer health plans must provide primary coverage for individuals
with end-stage renal disease before medicare becomes primary for how many months?
Ratio of men and women in the group - ANS-Group life is based on what?
The source must be identified - ANS-What is true regarding statistics use din an
advertisement?
10 years - ANS-Any licensed person whose activities affect interstate commerce and
who knowingly make false material statements related to the business of insurance my
be imprisoned for up to how long?
Rates by Class - ANS-Insurers may change which of the following on a guaranteed
renewable health insurance policy?
Face Amount - ANS-What does "level" refer to in level erm insurance?
, It is used to lower premiums - ANS-An insurer invests money it receives form premiums
paid by its insurers, what would happen to this investment?
It provides income the beneficiary cannot outlive - ANS-What can happen regarding a
single life settlement option?
The refund of the original amount minus payments already made - ANS-With the cash
refund option, when the annuitant dies, what would the beneficiary receive?
Bail-Out provision - ANS-What allows the owner to surrender an annuity without a
charge?
31 days - ANS-When an employee terminates coverage under a group insurance policy,
coverage continues in force for how long?
Illegal - ANS-An insurer devised an intimidation strategy in order to corner a large
portion of the insurance market. What best describes this practice?
a securities license
A life insurance license
A FINRA registration - ANS-To sell variable life insurance policies, an agent must
receive what?
Policy of Claims Provision - ANS-What provision would prevent an insurance company
from paying a reimbursement claim to someone other than the policy owner?
Monthly - ANS-Under an individual disability policy, the minimum schedule of time in
which a claim payment must be made to an insured is what?
Consumer Report - ANS-What type of report includes information regarding a person's
credit, character, reputation and habits?
The guaranty Association
The SEC
The insurance Department - ANS-What entities regulate variable life polices?
Providing a customer with an incomplete illustration - ANS-What would be a violation of
a life policy illustration regulation?
2 or more - ANS-HIPPA applies to groups of what?
TO help the insured understand all aspects of the contract - ANS-Why should the
producer personally deliver the policy when he first premium has already been paid out?
Size of each installment - ANS-What determines the length of time that benefits will be
received under the fixed-amount settlement option?
Questions and Answers
Pure Risk - ANS-Insurance is defined as the transfer of what to the insurance company
in consideration for a premium?
Speculative Risk - ANS-What type of risk is not insurable?
Exposure - ANS-A condition that could result in a loss is now as what?
Hazard - ANS-This increases the chance of loss.
Lump Sum - ANS-If a settlement option is not chosen by the beneficiary or policy owner,
which option will be used?
Straight Life - ANS-What policy would be classified as a traditional level premium
contract?
The employer is the owner and beneficiary. - ANS-Who is the owner and who is the
beneficiary on a key person life insurance policy?
Promote the public welfare - ANS-What is the purpose of insurance regulation?
30 months - ANS-Employer health plans must provide primary coverage for individuals
with end-stage renal disease before medicare becomes primary for how many months?
Ratio of men and women in the group - ANS-Group life is based on what?
The source must be identified - ANS-What is true regarding statistics use din an
advertisement?
10 years - ANS-Any licensed person whose activities affect interstate commerce and
who knowingly make false material statements related to the business of insurance my
be imprisoned for up to how long?
Rates by Class - ANS-Insurers may change which of the following on a guaranteed
renewable health insurance policy?
Face Amount - ANS-What does "level" refer to in level erm insurance?
, It is used to lower premiums - ANS-An insurer invests money it receives form premiums
paid by its insurers, what would happen to this investment?
It provides income the beneficiary cannot outlive - ANS-What can happen regarding a
single life settlement option?
The refund of the original amount minus payments already made - ANS-With the cash
refund option, when the annuitant dies, what would the beneficiary receive?
Bail-Out provision - ANS-What allows the owner to surrender an annuity without a
charge?
31 days - ANS-When an employee terminates coverage under a group insurance policy,
coverage continues in force for how long?
Illegal - ANS-An insurer devised an intimidation strategy in order to corner a large
portion of the insurance market. What best describes this practice?
a securities license
A life insurance license
A FINRA registration - ANS-To sell variable life insurance policies, an agent must
receive what?
Policy of Claims Provision - ANS-What provision would prevent an insurance company
from paying a reimbursement claim to someone other than the policy owner?
Monthly - ANS-Under an individual disability policy, the minimum schedule of time in
which a claim payment must be made to an insured is what?
Consumer Report - ANS-What type of report includes information regarding a person's
credit, character, reputation and habits?
The guaranty Association
The SEC
The insurance Department - ANS-What entities regulate variable life polices?
Providing a customer with an incomplete illustration - ANS-What would be a violation of
a life policy illustration regulation?
2 or more - ANS-HIPPA applies to groups of what?
TO help the insured understand all aspects of the contract - ANS-Why should the
producer personally deliver the policy when he first premium has already been paid out?
Size of each installment - ANS-What determines the length of time that benefits will be
received under the fixed-amount settlement option?
