A.D. Banker Final Exam AND WGU C182 FInal Exam
Study Set With Detailed Answer Rationale Superior
Questions with Expert Solutions Diverse Questions
with Correct Solutions
Which of the following situations will require proof of insurability? - -correct ans- -Adjusting
the face amount up on a Universal Life insurance policy with Option A death benefit
selected
Sean has a home with an mortgage. He needs life insurance to protect his family but also
wants to leave them without a mortgage payment if he dies. Ideally which of the following
riders should he acquire? - -correct ans- -Decreasing Term Rider
What rider is designed to help the insured offset the effects of future inflation on the
policy's face amount? - -correct ans- -Cost of Living
A good example of Risk Reduction might be: - -correct ans- -When one takes action to
minimize the severity of a potential loss
In an insurance contract the value that each party gives the other is said to be the: - -
correct ans- -Consideration
When an applicant does not smoke, exercises regularly, seldom drinks, and eats
moderately and is considered to be an above-average risk, they would likely qualify for: - -
correct ans- -Preferred status and pay a lower premium
A group plan is designed to insure all of the following, except: - -correct ans- -Creditors
,Which of the following is included in Part II of a Life Insurance Application? - -correct ans- -
Family member's age and cause of death
All of the following policies end when an insured dies, except: - -correct ans- -Joint
Survivorship
Money accumulated in a permanent policy that the policyowner may borrow via a policy
loan or receive if the policy is surrendered, refers to: - -correct ans- -Cash Value
The owner of a Variable Life Policy may allocate the premium into a sub-account which is
owned by the insurer, this sub-account is a part of what is also known as the: - -correct
ans- -Separate Account
Level, decreasing and increasing term refer to which policy feature? - -correct ans- -Death
Benefit
All of the following are statements are true of a juvenile policy, except: - -correct ans- -The
insured is the premium payor
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies,
what is the amount payable to the survivor? - -correct ans- -$250,000
Which of the following situations will require proof of insurability? - -correct ans- -Adjusting
the face amount up on a Universal Life insurance policy with Option A death benefit
selected
In a life settlement transaction who represents only the owner and owes a fiduciary duty to
the owner to act in the best interest according to the owner's instructions, regardless of the
manner in which they are compensated? - -correct ans- -The Life Settlement Broker
,Which of the following policies must be sold by prospectus? - -correct ans- -Variable Whole
Life
Which of the following beneficiary designations is a class designation? - -correct ans- -Any
Children of this marriage
Annuities may be funded with either a lump sum or on either a ______ or a ______ basis. - -
correct ans- -Periodic, flexible
Generally, corporations can use annuities to fund all of the following, except: - -correct
ans- -Estate Creation
Buy-Sell agreements are used for all of the following entities, except: - -correct ans- -Large
Public Corporations
All are true regarding funding of Social Security, except: - -correct ans- -Actuarial value of
contributions is related to actuarial value of benefits
In the event that an insured receives a periodic benefit as the result of exercising the
Accelerated Death Benefit Rider, what information must the insurer provide to the insured?
- -correct ans- -The amount of the accelerated payment, the remaining death benefit and
cash values
When a policy is mailed to an insured by an insurer, it is considered to be: - -correct ans- -
Devlivered
Information about an applicant's work behavior or character gathered from neighbors or
co-workers would be included on an? - -correct ans- -Inspection Report
, If a policy was issued at a higher premium due to a higher risk exposure, all of the following
can be used to reflect the higher risk, except: - -correct ans- -Declined
The fact that only one deductible applies when several family members are injured in the
same accident refers to the: - -correct ans- -Common Accident Deductible
Which rider would eliminate coverage for a preexisting condition? - -correct ans- -
Impairment Rider
Residual Disability Income pays funds to the insured, to make up for what the insured
would have earned after returning to work, and while recovering from ___________. - -
correct ans- -Total Disability
With _______, the patient must pay 20% of covered charges plus the deductible. - -correct
ans- -Medicare Part B
In order for a claimant to be eligible for _______ benefits, they must qualify based upon
need. - -correct ans- -Medicaid
In a Medicare Supplement replacement sale, if the original policy has been in force for less
than ______ months, the replacing insurer shall waive any time periods applicable to
preexisting conditions to the extent that they have already been satisfied under the original
policy. - -correct ans- -6 months
A Medicare beneficiary may enroll in a Medicare Advantage plan when they are first eligible
for Medicare or during the _____________ Period, where a person may change to another
Medicare Advantage plan or switch from Original Medicare to a Medicare Advantage Plan. -
-correct ans- -Annual Election
Study Set With Detailed Answer Rationale Superior
Questions with Expert Solutions Diverse Questions
with Correct Solutions
Which of the following situations will require proof of insurability? - -correct ans- -Adjusting
the face amount up on a Universal Life insurance policy with Option A death benefit
selected
Sean has a home with an mortgage. He needs life insurance to protect his family but also
wants to leave them without a mortgage payment if he dies. Ideally which of the following
riders should he acquire? - -correct ans- -Decreasing Term Rider
What rider is designed to help the insured offset the effects of future inflation on the
policy's face amount? - -correct ans- -Cost of Living
A good example of Risk Reduction might be: - -correct ans- -When one takes action to
minimize the severity of a potential loss
In an insurance contract the value that each party gives the other is said to be the: - -
correct ans- -Consideration
When an applicant does not smoke, exercises regularly, seldom drinks, and eats
moderately and is considered to be an above-average risk, they would likely qualify for: - -
correct ans- -Preferred status and pay a lower premium
A group plan is designed to insure all of the following, except: - -correct ans- -Creditors
,Which of the following is included in Part II of a Life Insurance Application? - -correct ans- -
Family member's age and cause of death
All of the following policies end when an insured dies, except: - -correct ans- -Joint
Survivorship
Money accumulated in a permanent policy that the policyowner may borrow via a policy
loan or receive if the policy is surrendered, refers to: - -correct ans- -Cash Value
The owner of a Variable Life Policy may allocate the premium into a sub-account which is
owned by the insurer, this sub-account is a part of what is also known as the: - -correct
ans- -Separate Account
Level, decreasing and increasing term refer to which policy feature? - -correct ans- -Death
Benefit
All of the following are statements are true of a juvenile policy, except: - -correct ans- -The
insured is the premium payor
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies,
what is the amount payable to the survivor? - -correct ans- -$250,000
Which of the following situations will require proof of insurability? - -correct ans- -Adjusting
the face amount up on a Universal Life insurance policy with Option A death benefit
selected
In a life settlement transaction who represents only the owner and owes a fiduciary duty to
the owner to act in the best interest according to the owner's instructions, regardless of the
manner in which they are compensated? - -correct ans- -The Life Settlement Broker
,Which of the following policies must be sold by prospectus? - -correct ans- -Variable Whole
Life
Which of the following beneficiary designations is a class designation? - -correct ans- -Any
Children of this marriage
Annuities may be funded with either a lump sum or on either a ______ or a ______ basis. - -
correct ans- -Periodic, flexible
Generally, corporations can use annuities to fund all of the following, except: - -correct
ans- -Estate Creation
Buy-Sell agreements are used for all of the following entities, except: - -correct ans- -Large
Public Corporations
All are true regarding funding of Social Security, except: - -correct ans- -Actuarial value of
contributions is related to actuarial value of benefits
In the event that an insured receives a periodic benefit as the result of exercising the
Accelerated Death Benefit Rider, what information must the insurer provide to the insured?
- -correct ans- -The amount of the accelerated payment, the remaining death benefit and
cash values
When a policy is mailed to an insured by an insurer, it is considered to be: - -correct ans- -
Devlivered
Information about an applicant's work behavior or character gathered from neighbors or
co-workers would be included on an? - -correct ans- -Inspection Report
, If a policy was issued at a higher premium due to a higher risk exposure, all of the following
can be used to reflect the higher risk, except: - -correct ans- -Declined
The fact that only one deductible applies when several family members are injured in the
same accident refers to the: - -correct ans- -Common Accident Deductible
Which rider would eliminate coverage for a preexisting condition? - -correct ans- -
Impairment Rider
Residual Disability Income pays funds to the insured, to make up for what the insured
would have earned after returning to work, and while recovering from ___________. - -
correct ans- -Total Disability
With _______, the patient must pay 20% of covered charges plus the deductible. - -correct
ans- -Medicare Part B
In order for a claimant to be eligible for _______ benefits, they must qualify based upon
need. - -correct ans- -Medicaid
In a Medicare Supplement replacement sale, if the original policy has been in force for less
than ______ months, the replacing insurer shall waive any time periods applicable to
preexisting conditions to the extent that they have already been satisfied under the original
policy. - -correct ans- -6 months
A Medicare beneficiary may enroll in a Medicare Advantage plan when they are first eligible
for Medicare or during the _____________ Period, where a person may change to another
Medicare Advantage plan or switch from Original Medicare to a Medicare Advantage Plan. -
-correct ans- -Annual Election
