Life & Health Insurance Final Exam
Mock Test Questions And Answers
/. Which section of the health policy contains the pre-existing conditions?
A. Insuring Clause.
B. Entire Contract Clause.
C. Consideration Clause.
D. Contestable Clause. - Answer-✅Insuring Clause
/.What is the standard grace period for Life Insurance policies?
A. 15 days.
B. 20 days.
C. 31 days.
D. 45 days. - Answer-✅31 days
/.Indemnity means:
A. Being made whole.
B. Coming out ahead. - Answer-✅Being made whole
/.Which of the following will limit the amount of Disability Income coverage an applicant
may purchase?
A. The applicant's income tax documentation.
B. The applicant's gender.
C. The applicant's participation in extreme hobbies.
D. The applicant's health history. - Answer-✅The applicant's income tax documentation
/.Which of the following is a characteristic of Long Term Care policies?
A. They must contain a nonforfeiture provision.
B. They must provide coverage for at least 18 months.
C. They must include a 10 day Free Look period.
D. They are usually optionally renewable. - Answer-✅They must contain a nonforfeiture
provision
/.An AD&D Rider will cover each of the following accidents EXCEPT:
A. Loss of vision.
B. Loss of hand.
C. Loss of foot.
D. Loss of hearing. - Answer-✅Loss of hearing
/.Which of the following provides the beneficiary with periodic income payments for the
life of the beneficiary?
A. Cash Settlement Option.
,B. Annuity Settlement Option.
C. Interest Settlement Option.
D. Grace Period. - Answer-✅Annuity Settlement Option
/."Usual, reasonable, and customary" refers to a method of paying for:
A. Health insurance premiums.
B. Medical provider bills.
C. Deductibles.
D. Producer commissions. - Answer-✅Medical provider bills.
/.Which of the following Term policies would cost the least?
A. Renewable and convertible.
B. Renewable and non-convertible.
C. Non-renewable and non-convertible.
D. Non-renewable and convertible. - Answer-✅Non-renewable and non-convertible
/.What is used to create a Return of Premium Rider?
A. Decreasing Term Insurance.
B. Ordinary Life.
C. Increasing Term Insurance.
D. Universal Life. - Answer-✅Increasing Term Insurance
/.HMOs are funded in which of the following ways?
A. Fee for service arrangements.
B. The government funds benefits for those over age 65.
C. Insured's payment of a pre-paid fee.
D. Installment payments after services are rendered. - Answer-✅Insured's payment of a
pre-paid fee
/.Which of the following provisions is optional and cannot be included without the policy
owner's consent?
A. Free Look Clause.
B. Incontestable Clause.
C. Automatic Premium Loan Provision.
D. Grace Period Clause. - Answer-✅Automatic Premium Loan Provision
/.When does an Endowment Life policy mature?
A. Upon lapsation.
B. When the Insured surrenders the policy and takes the cash value.
C. When the Insured dies or reaches the age or date of endowment.
D. When the Insured dies or reaches age 100. - Answer-✅When the Insured dies or
reaches the age or date of endowment
/.Which of the following is most likely to be the grace period for a Health Insurance
policy?
, A. 15 days.
B. 31 days.
C. 45 days.
D. 90 days. - Answer-✅31 days
/.Under an IRA:
A. Payins must stop by age 59.
B. Payouts must begin by 72. - Answer-✅Payouts must begin by 72
/.Which of the following types of Insurance will pay an income benefit to a company
when an employee becomes disabled?
A. An individual DI policy.
B. Disability Buy-Sell Insurance.
C. Business Overhead Expense Insurance.
D. Key Employee Disability Income Insurance. - Answer-✅Key Employee Disability
Income Insurance
/.COBRA provides for continuation if the request is made during the Election Period of:
A. 30 days.
B. 60 days.
C. 90 days.
D. 120 days. - Answer-✅60 days
/.The 10-day Free Look Period begins when:
A. The application is submitted.
B. The policy is reviewed.
C. The policy is delivered.
D. A claim is paid. - Answer-✅The policy is delivered
/.If an Insured temporarily conveys some of the rights of policy ownership to a lender to
help secure a loan, what is this called?
A. Revocable Transfer.
B. Absolute Assignment.
C. Irrevocable Bequest.
D. Collateral Assignment. - Answer-✅Collateral Assignment
/.Which is a community based provider of insurance benefits:
A. PPO.
B. Indemnity plan.
C. Medicare.
D. Blue Cross-Blue Shield. - Answer-✅PPO
/.If a 30-year old will live to age 99, which of the following policies will pay a death
benefit and will have cost the lowest total premium outlay?
A. 15-Pay Whole Life.
Mock Test Questions And Answers
/. Which section of the health policy contains the pre-existing conditions?
A. Insuring Clause.
B. Entire Contract Clause.
C. Consideration Clause.
D. Contestable Clause. - Answer-✅Insuring Clause
/.What is the standard grace period for Life Insurance policies?
A. 15 days.
B. 20 days.
C. 31 days.
D. 45 days. - Answer-✅31 days
/.Indemnity means:
A. Being made whole.
B. Coming out ahead. - Answer-✅Being made whole
/.Which of the following will limit the amount of Disability Income coverage an applicant
may purchase?
A. The applicant's income tax documentation.
B. The applicant's gender.
C. The applicant's participation in extreme hobbies.
D. The applicant's health history. - Answer-✅The applicant's income tax documentation
/.Which of the following is a characteristic of Long Term Care policies?
A. They must contain a nonforfeiture provision.
B. They must provide coverage for at least 18 months.
C. They must include a 10 day Free Look period.
D. They are usually optionally renewable. - Answer-✅They must contain a nonforfeiture
provision
/.An AD&D Rider will cover each of the following accidents EXCEPT:
A. Loss of vision.
B. Loss of hand.
C. Loss of foot.
D. Loss of hearing. - Answer-✅Loss of hearing
/.Which of the following provides the beneficiary with periodic income payments for the
life of the beneficiary?
A. Cash Settlement Option.
,B. Annuity Settlement Option.
C. Interest Settlement Option.
D. Grace Period. - Answer-✅Annuity Settlement Option
/."Usual, reasonable, and customary" refers to a method of paying for:
A. Health insurance premiums.
B. Medical provider bills.
C. Deductibles.
D. Producer commissions. - Answer-✅Medical provider bills.
/.Which of the following Term policies would cost the least?
A. Renewable and convertible.
B. Renewable and non-convertible.
C. Non-renewable and non-convertible.
D. Non-renewable and convertible. - Answer-✅Non-renewable and non-convertible
/.What is used to create a Return of Premium Rider?
A. Decreasing Term Insurance.
B. Ordinary Life.
C. Increasing Term Insurance.
D. Universal Life. - Answer-✅Increasing Term Insurance
/.HMOs are funded in which of the following ways?
A. Fee for service arrangements.
B. The government funds benefits for those over age 65.
C. Insured's payment of a pre-paid fee.
D. Installment payments after services are rendered. - Answer-✅Insured's payment of a
pre-paid fee
/.Which of the following provisions is optional and cannot be included without the policy
owner's consent?
A. Free Look Clause.
B. Incontestable Clause.
C. Automatic Premium Loan Provision.
D. Grace Period Clause. - Answer-✅Automatic Premium Loan Provision
/.When does an Endowment Life policy mature?
A. Upon lapsation.
B. When the Insured surrenders the policy and takes the cash value.
C. When the Insured dies or reaches the age or date of endowment.
D. When the Insured dies or reaches age 100. - Answer-✅When the Insured dies or
reaches the age or date of endowment
/.Which of the following is most likely to be the grace period for a Health Insurance
policy?
, A. 15 days.
B. 31 days.
C. 45 days.
D. 90 days. - Answer-✅31 days
/.Under an IRA:
A. Payins must stop by age 59.
B. Payouts must begin by 72. - Answer-✅Payouts must begin by 72
/.Which of the following types of Insurance will pay an income benefit to a company
when an employee becomes disabled?
A. An individual DI policy.
B. Disability Buy-Sell Insurance.
C. Business Overhead Expense Insurance.
D. Key Employee Disability Income Insurance. - Answer-✅Key Employee Disability
Income Insurance
/.COBRA provides for continuation if the request is made during the Election Period of:
A. 30 days.
B. 60 days.
C. 90 days.
D. 120 days. - Answer-✅60 days
/.The 10-day Free Look Period begins when:
A. The application is submitted.
B. The policy is reviewed.
C. The policy is delivered.
D. A claim is paid. - Answer-✅The policy is delivered
/.If an Insured temporarily conveys some of the rights of policy ownership to a lender to
help secure a loan, what is this called?
A. Revocable Transfer.
B. Absolute Assignment.
C. Irrevocable Bequest.
D. Collateral Assignment. - Answer-✅Collateral Assignment
/.Which is a community based provider of insurance benefits:
A. PPO.
B. Indemnity plan.
C. Medicare.
D. Blue Cross-Blue Shield. - Answer-✅PPO
/.If a 30-year old will live to age 99, which of the following policies will pay a death
benefit and will have cost the lowest total premium outlay?
A. 15-Pay Whole Life.
