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MS LIFE AND HEALTH INSURANCE
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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
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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 2 / 3
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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
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