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MS Life and Health Insurance Test 150 Questions with Verified Answers,100% CORRECT
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MS Life and Health Insurance Test 150 Questions with Verified Answers
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MS Life and Health Insurance Test 150 Questions withVerified Answers
Which 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
A Family Income Policy is a combination of Whole Life and - CORRECT ANSWER
Decreasing Term insurance
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the
following types of policies did J purchase? - CORRECT ANSWER Noncancelable
Information obtained from a phone conversation to the proposed insured can be
found in which of these reports? - CORRECT ANSWER Inspection report
When must insurable interest exist for a life insurance contract to be valid? -
CORRECT ANSWER Inception of the contract
What is the purpose of a Policy Summary? - CORRECT ANSWER It highlights the
critical parts of the policy issued
K failed to pay a renewal premium within the time granted by the insurer. K then
sends in a payment which the insurer subsequently accepts. Which policy
provision specifies that coverage may be restored in this situation? - CORRECT
ANSWER Reinstatement
A 42-year-old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need? - CORRECT ANSWER Universal Life
What does the ownership clause in a life insurance policy state? - CORRECT
ANSWER Who the policyowner is and what rights the policyowner is entitled to
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