Life and Health Insurance Practice Exam Questions and Answers
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Course
Life and Health Insurance
Institution
Life And Health Insurance
Life and Health Insurance Practice Exam Questions and Answers
What best describes fixed period settlement option? - Answer-Both the principal and interest will be liquidated over select period of time
According to the entire contract provision, what document must be made part of the insuranc...
Life and Health Insurance Practice
Exam Questions and Answers
What best describes fixed period settlement option? - Answer-Both the principal and
interest will be liquidated over select period of time
According to the entire contract provision, what document must be made part of the
insurance policy? - Answer-A copy of the original application
And insured has had a life insurance policy that he purchased three years ago when he
was 40 years old. He is killed in an automobile accident and it is discovered that he is
actually 45 years old and not 43 as stated on the application. What will the company
do? - Answer-Hey a reduced death benefit
The sole beneficiary airy of a life insurance policy dies before the insured if the policy
owner fails to change the beneficiary airy before the insured's death the proceeds of the
policy will go to - Answer-The insured's estate
Under a health insurance policy, benefits, other than death benefits, that have not
otherwise been assigned, will be paid to who - Answer-The insured
An insured has endured multiple surgeries and hospitalizations for an illness during the
summer months. Her insurer no longer bills her for medical expenses. What term best
describes the condition she has met? - Answer-Stop loss limit
The free look provision allows what? - Answer-A right to return the policy for a full
premium refund
Under the uniform required provisions, proof of loss under a health insurance policy
normally should be filed within how many days of a loss? - Answer-90 days of a loss
Which health insurance provision describes the insureds right to cancel coverage? -
Answer-Renewal provision
When a reduced paid up nonforfeiture option is chosen, what happens to the face
amount of the policy? - Answer-It is reduced to the amount of what the cash value
would buy as a single premium
When I policy is surrendered for its cash value, - Answer-Coverage ends and the policy
cannot be reinstated
What is true about nonforfeiture values? - Answer-They are required by state law to be
included in the policy
, If a policy has an automatic premium loan provision, what happens if the insured dies
before the loan is paid back? - Answer-The balance of the loan will be taken out of the
death benefit
What is true about the cash surrender nonforfeiture option? - Answer-Funds exceeding
the premium paid or taxable as ordinary income
What is the name of a clause that is included in a policy that limits or eliminates the
death benefit if the insured dies as a result of war or while serving in the military? -
Answer-Military service or war
A life insurance policy does not have a war clause. If the insured is killed during a time
of war, what will the beneficiary receive from the policy? - Answer-The full death benefit
Underwriting is a major consideration when an insured wishes to replace her current
policy for all of the following reasons except - Answer-Premiums always stay the same
And insured buy's a five-year level premium term policy with a face amount of $10,000.
The policy also contains renewability and convertibility options. When the insured renew
the policy in five years what will happen to the premium? - Answer-It will increase
because the insured will be five years older when the policy was originally purchased.
Which of the following is incorrect regarding a $100,000.20 year level term policy? -
Answer-At the end of 20 years, the policy's cash value will equal $100,000.
When would a 20-pay whole life policy endow? - Answer-When the insured reaches age
100.
Which of the following is not a type of whole life insurance? - Answer-Increasing term
K purchased a $90,000 annuity with a single premium and began receiving payments
two months after that. What type of annuity is it? - Answer-Immediate annuity
Which of the following policies would have an IRS required Corridor or gap between the
cash value and the death benefit? - Answer-Universal Life - Option A
What are the two components of a universal policy? - Answer-Insurance and cash
account
Which of the following is true regarding the premium in term policies? - Answer-The
premium in any type of term policy is level.
All of the following are true regarding a decreasing term policy except - Answer-The
payable premium amount steadily declined throughout the duration of the contract
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