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2024 HEALTH, ACCIDENT, & LIFE INSURANCE PRODUCER EXAM WITH CORRECT ANSWERS
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2024 HEALTH, ACCIDENT, & LIFE INSURANCE PRODUCER EXAM WITH CORRECT ANSWERS
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2024 HEALTH, ACCIDENT, & LIFEINSURANCE PRODUCER EXAM
WITH CORRECT ANSWERS
Which statement describes states' administration of Medicaid?
A. Medicaid services vary from city to city.
B. Medicaid services are the same in every state.
C. Medicaid services vary from county to county.
D. Medicaid services vary from state to state. - CORRECT ANSWERS-D.
Medicaid services vary from state to state.
The notice of claim provision of a health insurance policy gives the insured
how many days to notify the insurer after a covered loss?
A. 15
B. 1
C. 20
D. 10 - CORRECT ANSWERS-A. 15
Which statement is correct about government health insurance plans?
A. They pay tax-free benefits.
B. They are a right of citizenship.
C. They are available to individuals and groups.
D. They are available only to state or federal employees. - CORRECT
ANSWERS-A. They pay tax-free benefits.
Insurers are usually least concerned about the risk of adverse selection when
considering health insurance applications for
A. families.
B. groups.
C. sole proprietors.
D. individuals. - CORRECT ANSWERS-C. sole proprietors.
Anthony becomes a producer for Acme Insurance Company. Acme has not
filed the notice of appointment with the Director. It must do so within:
A. 15 days
,B. 31 days
C. 30 days
D. 0 days - CORRECT ANSWERS-D. 0 days
With interest-sensitive whole life insurance policies, insurers may change
premium rates after reviewing their investment experience in a process
called:
A. redetermination
B. renewal underwriting
C. reconfiguration
D. indexing - CORRECT ANSWERS-D. indexing
What is the purpose of the fiduciary in a group health insurance plan?
A. to process claims
B. to process appeals
C. to administer the plan in a financially responsible manner
D. to advise the enrollees - CORRECT ANSWERS-C. to administer the plan in a
financially responsible manner
Besides select policy anniversary dates, a life insurance guaranteed
insurability rider usually permits special alternative option dates that
typically include all the following, EXCEPT:
A. the policyowner's marriage
B. the policyowner's adoption of a child
C. the birth of the policyowner's child
D. the policyowner's loss of a job - CORRECT ANSWERS-C. the birth of the
policyowner's child
If the Alpha-Omega Corporation wants to provide cost-effective life insurance
for all its full-time employees, it will most likely buy which of the following?
A. individual term life insurance
B. group term life insurance
C. whole life insurance
D. business life insurance - CORRECT ANSWERS-A. individual term life
insurance
The future increase option rider is also known as the:
A. guaranteed insurability rider
B. return of premium rider
C. annually renewable term life rider
,D. cost-of-living adjustment (COLA) rider - CORRECT ANSWERS-B. return of
premium rider
Justine's producer's license lapses when she fails to fulfill her continuing
education requirement. One year later, she decides to work as a producer
again. Which of the following must she do first?
A. Apply for reinstatement.
B. Pay the reinstatement fee.
C. Apply for a new license.
D. Fulfill the continuing education requirement. - CORRECT ANSWERS-A.
Apply for reinstatement.
What happens if a person submits an insurance application without the first
premium?
A. The insurer must make an offer to the applicant.
B. The applicant made an offer to the insurer.
C. The applicant has made a counteroffer.
D. The insurer must make a counteroffer. - CORRECT ANSWERS-D. The
insurer must make a counteroffer.
Which of the following annuities specifies the exact premium payment
amounts (and when they must be paid) for the contract to generate the
desired future income payments?
A. deferred annuity
B. fixed premium deferred annuity
C. flexible premium deferred annuity
D. immediate annuity - CORRECT ANSWERS-D. immediate annuity
In life insurance, for how long must insurable interest exist?
A. It must exist when a claim is submitted.
B. Insurable interest must exist only at the time the applicant enters into a
life insurance contract.
C. If no insurable interest exists when a policyowner buys a life insurance
policy, the contract may still be enforced.
D. It must continue for the life of the policy. - CORRECT ANSWERS-B.
Insurable interest must exist only at the time the applicant enters into a life
insurance contract.
In which one of the following situations would the premiums paid for
individual life insurance be tax-deductible?
, A. the premium is for a policy the premium payer donated to a charitable
organization
B. the premium is for a policy a business owner purchased on a key
employee
C. the premium is for a policy the insured purchased to assure his family's
financial security
D. the premium is for a policy the policyowner has assigned to a bank as
collateral for a loan - CORRECT ANSWERS-D. the premium is for a policy the
policyowner has assigned to a bank as collateral for a loan
Andrea earned $3,000 each month before she was injured in an accident.
Now she works part-time and earns $1,000 a month. Her disability income
policy pays a $2,000 monthly benefit for total disability. The policy uses a
flat rate to determine benefits for partial disability. How much will Andrea
receive?
A. $0
B. $2,000
C. $1,000
D. $1,500 - CORRECT ANSWERS-B. $2,000
From an insurance perspective, all the following statements regarding risk
and loss are correct EXCEPT:
A. A loss is defined as an unplanned reduction in economic value.
B. Only speculative risk is insurable.
C. Risk is defined as the chance of loss.
D. The state of being subject to a loss is called loss exposure. - CORRECT
ANSWERS-B. Only speculative risk is insurable.
Who completes an attending physician's statement (APS)?
A. a member of the MIB
B. a local doctor, other than applicant's, who is familiar with how the medical
condition is being treated
C. the proposed insured's doctor, who is familiar with how the medical
condition is being treated
D. a doctor assigned by the insurer in the state where the insurance is being
written - CORRECT ANSWERS-D. a doctor assigned by the insurer in the state
where the insurance is being written
Which statement about group health insurance is NOT correct?
A. Group health insurance has higher premiums than individual insurance.
B. Many Americans' health care coverage is provided through a group
insurance plan.
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