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MS Life and Health Insurance Test questions well answered to pass
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MS Life and Health Insurance Test questions well answered to pass
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MS Life and Health Insurance TestWhich of these do NOT constitute policy delivery? - correct answer ✔✔Policy issued with a rating
Which of these types of life insurance allows the policyowner to have level premiums and to also choose
from a selection of investment options? - correct answer ✔✔Variable Life
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an
accident. J's age as stated on the application five years ago was found to be understated by ten years.
Which of the following actions will the insurance company take? - correct answer ✔✔The insurer will
adjust the benefit to what the premiums paid would have purchased at the insured's actual age
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has
what kind of rider attached? - correct answer ✔✔Waiver of Premium
A producer must report to the Commissioner of Insurance any administrative action or criminal charges
taken against the producer within __ days of the final disposition of the matter. - correct answer ✔✔30
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What
rider would the physician add if he wants the ability to increase his policy benefit as his practice and
income grow? - correct answer ✔✔Guaranteed Insurability Option rider
Which type of policy is considered to be overfunded, as stated by IRS guidelines? - correct answer
✔✔Modified Endowment Contract
How does a typical Variable Life Policy investment account grow? - correct answer ✔✔Through mutual
funds, stocks, bonds
Which Federal law allows an insurer to obtain an inspection report on a potential insured? - correct
answer ✔✔Fair Credit Reporting Act
, What is Medicare? - correct answer ✔✔is a hospital and medical expense insurance program
What kind of premium does a Whole Life policy have? - correct answer ✔✔level
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years
later, T commits suicide. How much will the insurer pay? - correct answer ✔✔50,000
Pre-hospitalization authorization is considered an example of: - correct answer ✔✔managed care
Under a Renewable Term policy, - correct answer ✔✔the renewal premium is calculated on the basis of
the insured's attained age
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy
insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural
causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will
the mother receive? - correct answer ✔✔$0
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the
guaranteed cash value is called the: - correct answer ✔✔Policy Loan provision
What action can a policyowner take if an application for a bank loan requires collateral? - correct answer
✔✔Assign policy ownership to the bank
Which of the following statements is CORRECT about the Life and Health Insurance Guaranty
Association? - correct answer ✔✔It is funded by insurance companies through assessments
An insurance company that replaces existing insurance must provide a copy of which of the following
documents to the existing insurance company? - correct answer ✔✔A policy summary
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay
P retirement payments after the 15 years. Which type of annuity did P purchase? - correct answer
✔✔Deferred
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