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LIFE ACCIDENT AND HEALTH INSURANCE
EXAM WITH QUESTIONS AND WELL
VERIFIED ANSWERS|| GUARANTEED A+ | 100+
QUESTIONS | NEW!!!
Which of the following types of permanent life insurance policies offers the highest initial cash value a. Single premium b. Limited pay c. Whole d. Interest sensitive - ANSWER-a. Single premium X number of continuing education must be completed in the classroom or classroom equivalent a.20% b. 50% c. 80% d. 100% - ANSWER-b. 50 Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures a. Administrative services only plan b. Commercial insurer c. Preferred provider organization d. Health maintenance organization - ANSWER-b. Commercial insurer Which of the following types of health coverage frequently uses a deductible a. major medical policy b. Basic surgical policy c. Basic hospital policy d. Workers compensation - ANSWER-a. Major medical On an accidental death and dismemberment insurance policy, who is qualified to change the beneficiary digest Nation? a. Payer b. Primary beneficiary c. Policy owner d. Insurer okay see - ANSWER-c. Policy owner
Which of the following does social security not provide benefits for a. Survivorship b. Dismemberment c. Disability D period retirement - ANSWER-b. Dismemberment All of these are considered sources of underwriting information about an applicant except a. period inspection report b. Credit report c. Rating services d. Medical information bureau - ANSWER-c. Rating services An insured May assign up to x number of policy ownership under an individual life insurance policy a. 25% b. 50% c. 75% d. 100% - ANSWER-d. 100% Periodic health claim payments must be made at least a. Monthly b. Weekly c. Daily d. Annually - ANSWER-a. Monthly Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a pre-arranged class to the insured a. HMO b. PPO c. EPO d. P l h s o - ANSWER-b. PPO Major medical policies typically a. Pay 100% of covered expenses b. Contain a deductible and coinsurance c. require use of in-network facilities only d. Do not contain a deductible and co- insurance - ANSWER-b. Contain a deductible and coinsurance An individual has a major medical policy with the $5,000 deductible and an 80/20 co-insurance clause. How much will the insured have to pay if a total of $15,000 in covered medical expenses are incurred a. $2,000 b. $5,000 c. $7,000 d. $10,000 - ANSWER-c. $7, In this situation, $5,000 + 20% of the remaining Bill equals $7,
Which unfair trade practice involves an agent telling a perspective client that a policy's dividends are guaranteed? a. Twisting b. rebating c. Misrepresentation d. Sliding - ANSWER-c. Misrepresentation a primary beneficiary has died before the insured and a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies a. Proceeds will go to the primary beneficiary's estate b. Probate will decide who receives proceeds c. Proceeds will go to the contingent beneficiary d. Proceeds will go to the insured's estate - ANSWER-c. Proceeds will go to the contingent beneficiary How often can a policy owner make a premium payments a. Semi-annual b. Monthly c. Quarterly d. Annual - ANSWER-d. Annual. I'm writing out the description because I stupidly cut off the question. If the policy owner chooses to pay the premium more than once per year (example monthly, quarterly, semi- annually) there normally will be an additional charge because the company will have additional charges in billing and collecting the premium payments. What is the elimination period of an individual disability policy a. Time period and ensured must wait before coverage begins b. Time period a disabled person must wait before benefits are paid c. Time. After the policy issue date in which the provisions are still contestable d. The point in time when benefits are no longer payable - ANSWER-b. Time period a disabled person must wait before benefits are paid K is in a new attent currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid this is called a or an a. Installment refund annuity b. Joint refund annuity c. Straight refund annuity d. Equal value annuity - ANSWER-a. Installment refund annuity
The individual health insurance policy that offers the broadest protection is a or an x policy a. Surgical benefits b. Indemnity medical c. Major medical d. Hospital expense - ANSWER-c. Major medical if an individual is covered under an accidental death policy and dies, and autopsy can be performed in all of these situations except a. When the cause of death is unknown b. When the state prohibits this by law c. When constant for the autopsy is not obtained d. When foul play was a contributing factor - ANSWER-b. When the state prohibits this by law Which of these statements about a guaranteed and insurability option writer is not true a. Coverage can be added as specific events such as marriage or having a child be. Evidence of insurability is not required when the option is exercised c. Evidence of insurability is required when the option is exercised d. Coverage can be added as specific ages - ANSWER-C. Evidence of insurability is required when the option is exercised With optionally renewable health policies the insurer may a. renew the policy only if no claims have been filed the previous year b. Renew the policy only with the insured's consent c. Review the policy whenever they please and determine whether or not to renew it d. Review the policy annually and determine whether or not to renew it - ANSWER-d. Review the policy annually and determine whether or not to renew it Variable Life products require a producer to a period guarantee not more than a 12% return per annum b. Hold a life in health insurance license c. Hold a life insurance license and a securities license d. Be regulated solely by state law - ANSWER-c. Hold a life insurance license and a securities license How often must an insurance agent license normally be renewed a period every 6 months b. Each year c. Every 2 years d. Every 3 years - ANSWER-c. Every 2 years At what point does an informal contract become binding a period when one party makes an invitation and the other makes an offer b. When an offer is made by one party and the other party rejects the offer and makes a counter offer c.
And insurance agent has a fiduciary responsibility to all of the following except: A. Applicants b. Insureds c. Insurers d. Other agents - ANSWER-D. Other agents With whom may and agent lickily share commissions a. The insured b. The applicant c. The beneficiary d. Another agent with the same line of insurance - ANSWER-D. Another agent with the same line of insurance Which of the following is a requirement for obtaining a Texas insurance agent's license a. Be honest trustworthy and reliable b. Be at least 21 years old c. Be a college graduate d. Be a high school graduate - ANSWER-A. Be honest, trustworthy and reliable How often must an insurance agent license normally be renewed a. Every 6 months b. Every year c. Every 2 years d. Every 3 years - ANSWER-C. Every two years the insurance commissioner must give how many days notice prior to holding a hearing regarding an agent's unfair or deceptive practice a. Five b. Seven c. 10 d. 30 - ANSWER-D. 30 Which of the following groups may not be insured by a group life insurance policy A. Employees b. Supervisors c. Administrators d. individuals who are related by blood - ANSWER-D. Individuals who are related by blood
An insurer is not required to provide information on fraudulent claims if requested by a period the Texas department of insurance b. The attorney general c. The commissioner d. An Insured - ANSWER-D. An Insured as a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of a. Coercion b. Defamation c. Rebating d. Misrepresentation - ANSWER-A. Coercion What is an organization that solicits insurance only to its members a period domestic society b. Singular company c. Limited liability company d. Fraternal benefit society - ANSWER-D. Fraternal benefit society which action will a life insurance company most likely take if an insured dies and it is discovered that the insurance age was misstated on the application a. Pay an amount reduced by a specified percentage of the face amount b. Pay nothing c. Pain amount the premiums would have purchased at the insurance actual age d. Pay 50% of the initial death benefit - ANSWER-C. Paying them out the premiums would have purchased at the insured's actual age a domestic insurance company in Texas is considered a company that a. own real estate in Texas Bi-Rite Insurance on risk located only in Texas C is incorporated and formed in Texas D honestly Charter of the National Association of insurance Commissioners NAIC - ANSWER-C. is incorporated and formed in Texas an evidence of coverage form may be issued by a health maintenance organization HMO after being approved by the a. Attorney general b. NAIC c. Commissioner d. National HMO association - ANSWER-C. Commissioner of insurance A foreign insurance company conducting insurance business in Texas a. Is not subject to Texas insurance laws b. Was formed under the laws of another state c. Was formed under the laws of another country d. Is only authorized to write
company c. Alien company d. Export company - ANSWER-B. Foreign company the phrase transacting business includes a. Obtaining an insurance license b. Collecting premiums c. Setting insurance rates d. Advertising and new product and a trade journal - ANSWER-C. Collecting premiums A new agent must complete at least x number of hours of continuing education within 24 months of initial licensure a. 12 b. 16 c. 20 d. 24 - ANSWER-d. 24 During a sales presentation for a participating life insurance policy, an agent must a. Make a prospect understand the dividends are not guaranteed b. Make a prospect understand that dividends are guaranteed c. Over to the prospect a minimum return of investment d. Offer to the prospect a portion of the commissions - ANSWER-a. Make a prospect understand the dividends are not guaranteed Which of the following statements about health coverage for newborns is not true A. Coverage includes treatment of congenital defects b. Coverage continues after the first 31 days upon payment of the first premium c. Coverage is limited to only congenital defects d. Coverage begins at moment of birth - ANSWER-c. Coverage is limited to only congenital defects I plan through the marketplace may be purchased by a. Everyone over 18 years old b. Any legal resident except those in prison c. Any legal resident including those in prison d. Only those who might be eligible for Medicare - ANSWER-b. Any legal resident except those imprisoned Which of these is not an example of doing insurance business a. selling shares of stock B {period} receiving an insurance application c {period} collecting insurance premium d {period} delivering an insurance policy - ANSWER-a. selling shares of stock
Which of the following is not a required provision in group Life policies a. Free look b. Incontestable c. Conversion d. Rights and loan - ANSWER-d. Rights and loan Which of the following benefits is not required under a group health plan for drug and alcohol treatment a. inpatient treatment b. Transportation to and from a treatment facility c. Group therapy d. Outpatient treatment - ANSWER-b. Transportation to and from a treatment facility to terminate an agent's appointment, and insurance company must a. send termination notice to the Texas department of insurance b. Send termination notice to Governor c. Pay a termination fee d. Request a hearing before the commissioner of insurance - ANSWER-a. send termination notice to the Texas department of insurance ABC insurance company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering a. Twisting b. False advertising c. Rebating d. Unfair methods of competition - ANSWER-d. Unfair methods of competition An example of an unfair claim settlement practice is a. making it mandatory that proof of loss be provided for each claim b. requiring a time limit for submitting a claim c. Paying a claim in a timely manner d. Turning down a claim without providing the basis of denial - ANSWER-d. Turning down a claim without providing the basis of denial Which of these provisions is not required in life insurance policies a. Free look b. Grace period C. Extended term d. Entire contract - ANSWER-C. Extended term an employee is covered under a company group life plan with a $50,000 death benefit. What is the maximum amount a spouse may be insured for under this program a. $10,000 b. $25,000 c. $40,000 d. $50,000 - ANSWER-b. $25,
What is considered to be a characteristic of a conditionally renewable health insurance policy a. Premiums may increase at the time of renewal b. Premiums may increase at any time c. Policy may be renewed at the discretion of the insured d. Policy may be amended by insurer at any time - ANSWER-a. Premiums may increase at the time of renewal Which of these require an offer, acceptance and consideration a. Warranty v. Estoppel c. Contract d period representation - ANSWER-c. Contract Whole life insurance is sometimes referred to as straight life. What does the word straight indicate when using this phrase a. The incontestable period B. The ability to borrow against the cash value c. The grace period d. The duration of premium payments - ANSWER-d. The duration of premium payments Which of these statements is incorrect regarding the federal income tax treatment of Life insurance a. premiums are normally not taxed deductible b. Cash dividends are normally not taxed c. Entire cash surrender value is taxable d. Proceeds are received tax-free if there is a name beneficiary - ANSWER-c. Entire cash surrender value is taxable Which of the following health insurance policy provisions specifies the healthcare services at policy will provide a. Insuring clause b. Usual, customary and reasonable clause c. Consideration clause d. Benefit clause - ANSWER-a. Insuring clause A licensed maybe denied, suspended or revoked if the licensee a period engages in replacement of an existing policy b. Is found guilty of misrepresentation and obtaining the license c. Files for bankruptcy d. Fails to meet a sales quota - ANSWER-b. Is found guilty of misrepresentation and obtaining the license a prospective insured completes and signs application for health insurance when the intentionally conceals information about a pre-existing heart condition. The company issues the policy. Two months later, the insurance suffers a heart
attack and some it's a claim. While processing the claim, the company discovers the pre-existing condition. In this situation, the company will a. Continue coverage but request a corrected application b. Deny coverage and increase premiums c. Continue coverage but exclude the heart condition d. Resend the coverage and return the premiums - ANSWER-c. Continue coverage but exclude the heart condition Which of these retirement plans can be started by an employee, even if another plan is in existence a. Individual retirement account IRA b. Defined plan c. Keogh plan d. 403 b plan - ANSWER-a. Individual retirement account IRA which factors are taken into consideration when an insurance company determines the premium rate for a whole like policy on the applicant a. Geographical location b. Source of income c. Risk classification d. Marital status - ANSWER-c. Risk classification T is the policy owner for a life insurance policy with an irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the a period pair b. Agent c. Beneficiary d. Commissioner of insurance - ANSWER-c. Beneficiary Under a long-term care policy, which benefit would be typically excluded or limited a. Intermediate nursing b. Skilled nursing c. Home health Care d. Alcohol rehabilitation - ANSWER-d. Alcohol rehabilitation when does a life insurance contract become effective if the initial premium is not collected during the application process a {period} after all medical and personal information has been evaluated B {period} when the insurer receives initial premium from the producer c. when producer delivers policy and collects initial premium d {period} after application has been approved by the underwriters - ANSWER-c. when producer delivers policy and collects initial premium
the insurance commissioner must give how many days notice prior to holding a hearing regarding an agent's unfair or deceptive practice a. 5 b. 7 c. 10 d. 30 - ANSWER-d. 30 an evidence of coverage form may be issued by a health maintenance organization after being approved by the a. Attorney general b. NAIC c. Commissioner d. National HMO association - ANSWER-c. Commissioner Before life insurance policy is issued, which of these components of the contract is required a. applicant signature on application b. Beneficiary signature c. A conditional receipt d. Attending physician statement - ANSWER- a. applicant signature on application Which of the following types of care is typically not covered in a long-term care policy a. Acupuncture b. Skilled care c. Home health Care d. Custodial care - ANSWER-a. Acupuncture these sections of an insurance contract which limit coverage are called a {period} waivers B {period} riders c. exclusions d {period} limitations - ANSWER-c. exclusions and life insurance application must be signed by all of these, except a period the policy owner b. The agent c. The insured (if an adult) d. beneficiary - ANSWER-d. beneficiary okay failed to pay a renewal premium within the time of granted by the insurer. Kay then sends in the payment which the insurance of sequely accepts {period} which policy provision specifies that coverage may be restored in this situation a period free look B. reinstatement c {period} Grace {period} d {period} consideration - ANSWER-B. reinstatement
Which type of provider is no for stressing preventative medical Care and routine physical examinations a. Multiple employer welfare arrangements m e w a b. Major medical provider c. HMO d. PPO - ANSWER-c. HMO After an insured gives notice of loss, what must he or she do if the insurer does not furnish forms a. Follow lawsuit b. Contact the insurer again requesting forms c. Nothing d. File written proof of loss - ANSWER-d. File written proof of loss an insurer May normally delay the payment of a cash value loan or surrender value for up to a. 2 months b. 4 months c. 6 months d. 8 months - ANSWER-c. 6 months A policy owner would like to change the beneficiary on a life insurance policy and make the change permanent. Which type of designation would fulfill this need a. Revocable b. Contingent c. Irrevocable d. Primary - ANSWER-c. Irrevocable a CEOs personal assistant suffered entries at home and as a result, wasn't able to work for 4 months. Which type of policy will pay a monthly benefit to the personal assistant a. Disability income b. Major medical c. Key employee d business overhead expense - ANSWER-a. Disability income dental Care coverage is designed to cover the cost of all of the following except a. Oral surgery b. Preventative care c. Orthodontia d. Lots of income - ANSWER-d. Lots of income the premiums paid by an employer for his employees group life insurance are usually considered to be a. Tax deductible to the employer b. Partially deductible to the employee c. Tax deductible to the employee d. Taxable income to the employee - ANSWER-a. Tax deductible to the employer
Which of these factors do not play a role in the underwriting of a life insurance policy a. Avocations b. Credit status c. Marital status d period occupation - ANSWER-c. Marital status Jay, and accidental death and dismemberment ad&d policy holder, dies after injury sustained in an accident. Jay's age, as stated on the application 5 years ago, was found to be understated by 10 years. Which of the following actions were the insurance company take A. The insurer will pay the original benefit stated in the policy b. The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age c. The insurer will pay the original face amount minus any premium deficiencies owed d. The insurer will deny the claim and refund premiums paid - ANSWER-b. The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age What does a guaranteed insurability rider provide a disability income policy owner a. They guarantee that premiums will never increase b. The guarantee that the policy would never be canceled c. The ability to periodically increase the amount of coverage without evidence of the insurability d. The ability to periodically increase the amount of coverage only with evidence of integrability
- ANSWER-The ability to periodically increase the amount of coverage without evidence of insurability Kay has an accidental death and dismayment insurance policy where her husband is the beneficiary and her daughter is the contingent beneficiary. Under the common disaster clause, if Kay and her husband are both killed in an automobile accident where would the death proceeds be directed A. Daughter b. Husband's estate c. K's estate d. Trust fund - ANSWER-A. Daughter The coordination of benefits provision a. Allows an insured covered by two health plans to make a profit on a covered loss b. Prevents an insurance covered by two health plans for making a profit on the covered loss c. Allows an insurer to defer paying a claim for a work-related injury until workers compensation benefits have expired d. Prevents an insured to change insurers during a claim for a covered loss - ANSWER-b. Prevents an insurance covered by two health plans for making a profit on the covered loss
which of the following statements best describes what the legal actions provision of an accident and health policy requires a. An insurance claim within 60 days after proof of loss is submitted b. And insured must wait at least 30 days after proof of loss has been submitted before I lost you can be filed c. An insured must wait at least 60 days after proof of loss has been submitted before a lawsuit can be filed d. An insured must settle a claim within 30 days after proof of loss is submitted - ANSWER-c. An insured must wait at least 60 days after proof of loss has been submitted before a lawsuit can be filed Which of these do not constitute policy delivery a. Policy mail to applicant b. Policy mail to agent c. Policy delivered to the applicant by the agent d. Policy issued with a rating - ANSWER-d. Policy issued with a rating An applicant must receive an outline of coverage when the application is taken for a or an a. Endowment b. Annuity c. Medicare supplement policy d. Universal life policy - ANSWER-c. Medicare supplement policy An example of rebating would be a. Returning a portion of a premium as inducement to purchase insurance b. Advertising cheaper insurance rates than competitors c. And mutual insurance company paying dividends to its policy owners d. And offer of rated insurance coverage - ANSWER-a. Returning a portion of a premium as inducement to purchase insurance Which of these is not considered to be a right given to a policy owner a. Surrendering the policies cash value b. Modify a provision in the insurance contract c. Assignment of ownership d. Change the beneficiary if revocable - ANSWER-b. Modify a provision in the insurance contract which of these is not a source of funding for social security benefits a. Self- employed individuals b. Employees c. Federal government d. Employers - ANSWER-c. Federal government
