MISSISSIPPI INSURANCE TEST COMPLETE QUESTIONS & ANSWERS (GRADED A).Buy Quality Materials!
All of the following are true about a stock insurance company EXCEPT
A. It is a publicly owned, private organization with shareholders B. Their policyholders vote for the members of the board of director...
All of the following are true about a stock insurance company EXCEPT
A. It is a publicly owned, private organization with shareholders B. Their
policyholders vote for the members of the board of directors C. Stockholders may
or may not be policyholders D. When declared, stock dividends are paid to
stockholders
It is a publicly owned, private organization with shareholders
Which of the following statements regarding mutual insurance companies is
CORRECT
A. The policyholders are the owners and share in any company earnings B. They
have stockholders, but it is the policy owners who vote for the board of directors
C. Each policyholder assumes a share of the risk brought to the company by
others D. Shares of company stock are publicly traded
The policyholders are the owners and share in company earnings
An insurance company that transfers risk to another company is called
A. A reinsurer B. The ceding company C. The assuming company D. A risk
retention group (RRG)
The ceding company
An applicant submitted an application to an insurer without an initial premium. It
is called
A. An offer B. An acceptance C. The insured's consideration D. An invitation to
make an offer
An invitation to make an offer
All of the following are true statements regarding representations EXCEPT
A. They can not use the applicant's HIV status to deny application B. They must
obtain the applicant's written consent C. They must notify the applicant's family
of the results D. They are not permitted to do an HIV test for life insurance
A statement that is guaranteed to be true
If an insurer wants to obtain an HIV test from an applicant
A. A statement made to the insurer for the purpose of giving information B. A
statement that is guaranteed to be true C. A statement that is true to the best
knowledge of the applicant : D. A statement made to the insurer as an
inducement to accept the risk
They must obtain the applicants written consent
If one party in a contract gives a legally enforceable promise, but not the other, it
is called a
A. Conditional contract B. Unilateral contract C. Third-party contract D. Contract
of adhesion
Unilateral contract
An insurance company incorporated in Indiana, with its home office in Texas, is
licensed to conduct business in all states except PA. In Texas, this company
would best be described as which of the following type of insurers?
A. Domestic B. Alien C. Foreign D. Regional
,Foreign
Which of the following parties are not required to sign an application for life
insurance?
A. The applicant B. The beneficiary C. The agent D. The insured (if different from
the applicant)
The beneficiary
An insurance company doing business in the same state it was incorporated in is
a
A. Domestic insurer B. Foreign insurer C. Resident insurer D. Mutual insurer
Domestic Insurer
Statements made by an applicant for insurance in the application are considered
to be
A. Misrepresentations B. Conditional C, Warranties D. Representations
Representations
John applies for a life insurance policy, gives his agent the first months'
premium, and receives a conditional receipt. Before John receives his policy, he
dies in a car accident. Which of the following scenarios best describes the
insurance company's course of action?
A. They will deny the claim no matter what B. They will pay the claim no matter
what C. They will deny the claim if no autopsy can be performed D. They will pay
the claim as long as he would have been approved for the plan,
coverage and premium rate he applied for
They will pay the claim as long as he would have been approved for the plan, coverage
and premium he applied for
All of the following are sources of insurability information EXCEPT
A. The beneficiary designation B. The application C. The Agent's report D. The
MIB report
The beneficiary designation
The type of contract where one party creates the contract terms and the other
party must accept the terms unconditionally is a
A. Contract of adhesion B. Unconditional contract C. Unilateral contract D.
Conditional contract
Contract of adhesion
All of the following are responsibilities of the agent EXCEPT
A. Changing answers on the application and initialing them B. Asking questions
about the applicant's current and previous medical condition C. Delivering the
policy to the applicant and explaining any ratings to them D. Collecting any
necessary premiums when delivering the policy
Changing answers on the application and initialing them
All of the following are true statements regarding a Statement of Good Health
EXCEPT
A. Its purpose is to make sure the insured has remained in good health during the
underwriting process B. It is obtained when a policy is delivered where no initial
premium was collected C. It is obtained when a policy is delivered where a
conditional receipt was issued D. It is obtained before an agent leaves the policy
with the insured
, It is obtained when a policy is delivered where a conditional receipt was issued
Which of the following statements regarding the doctrine of insurable interest are
CORRECT
A. The beneficiary must have an insurable interest in insured B. It must exist at
the time of application C. Insurable interest must remain for the duration of a life
insurance policy D. Insurable interest is not possible without a blood relationship
It must exist at the time of the application
With an insurance contract, what is the insured's consideration?
A. Whether or not they can afford the premium? B. Whether or not they need the
coverage C. Whether or not they are legally capable of entering into a contract D.
The premium paid
The premium paid
Which of the following cannot call a person whose name is registered with the
National Do Not Call Registry?
A. Telemarketers selling home safety equipment B. Charities C. Companies with
which the consumer has existing business relationship D. Telephone surveyors
Telemarketers selling home safety equipment
A change in premium due to a rate-up would normally be discussed with a client
A. Before the policy is issued B. During the underwriting period C. At the time of
application D. At the time of policy delivery
At the time of policy delivery
John has a 20 year renewable and convertible level term life insurance policy that
he purchased when he was 35. All of the following are correct EXCEPT
A. John can exchange it for a whole life policy prior to age 55 B. John will need to
take another physical exam if he wishes to renew it C. If John converts it at age
50, he will most likely be charged the premium based on his attained age D. John
is guaranteed life insurance for the rest of his life, as long as he pays the
premium
John will need to take another physical exam if he wishes to renew
A life insurance policy that fails to meet the seven-pay test is called a
A. Limited-pay policy B. Single premium pay policy C. Variable Universal Life
(VUL) D. Modified Endowment Contract (MEC)
Modified Endowment Contract (MEC)
Which of the following would best be suited for an immediate annuity?
A. 65 yr old manager getting ready to retire B. Terminally ill C. Leaving money to
heirs D. Recent college graduate looking to save for retirement
65 year old manager getting ready to retire
All of the following statements are correct regarding a 20 year period certain
annuity EXCEPT
A. Payments to the annuitant stop after 20 years B. If the annuitant dies after 10
years, the beneficiary will continue to receive
payments for 10 more years C. The beneficiary will receive nothing if the
annuitant dies after 20 years D. The annuitant will receive payments as long as
they live
Payments to the annuitant stop after 20 years
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SUPERGRADES01. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
