LIFE, HEALTH, ACCIDENT INSURANCE EXAM EXAM

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QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following is a description of a Life and Disability Analyst?

Answer:

A person licensed to advise clients about life and disability insurance for a fee

Question 2: Which is NOT part of transacting insurance?

Answer:

Establishing a list of clients Question 3: An insured bought a $150,000 non-participating whole life policy many years ago.She is 100 years old today. She has never borrowed from the policy, and has made all premium

payments when due. The policy cash value is:

Answer:

$150,000

Question 4: What does the Insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage?

Answer:

Suspend or revoke the license of the agent

Question 5: Accidental Death and Dismemberment insurance, which of the following would not be considered accidental?

Answer:

Employee requires abdominal surgery after food poisoning in the lunch room Question 6: Unless the applicant indicates otherwise during the right-to-return period in an individual annuity, the premium for a variable annuity would be invested only in:

Answer:

Fixed income investments and money market funds Question 7: Each of the following terms is an important characteristic of a major medical policy,

EXCEPT:

Answer:

Capitation Question 8: FYI Company's employee is injured while driving in the employ of the company.

Coverage for the employee comes from:

Answer:

FYI's Workers Compensation Question 9: The SEC is involved in the regulation of:

Answer:

Variable life policies Question 10: All of the following would be considered one of the three major types of loss

exposures, EXCEPT:

Answer:

Financial loss exposure Question 11: An organization will cease to exist as an entity eligible to hold a license for all of

the following reasons, EXCEPT:

Answer:

Termination of a key employee

Question 12: All of the following are required on a life insurance application, EXCEPT:

Answer:

The amount of disability income insurance in force Question 13: A health insurance co payment is:

Answer:

A payment paid by the insured to the provider for the service Question 14: All of the following would be considered unfair trade practices, EXCEPT:

Answer:

Committing an act of discrimination whether it be fair or unfair Question 15: Relevant factors in the health insurance principle of morbidity include all of the following EXCEPT

Answer:

intelligence

Question 16: Which of the following in NOT provided by Hospice Care?

Answer:

Rehabilitation

Question 17: Terminally ill persons would need which of the following?

Answer:

Hospice care Question 18: If the financial loss on a certain group of people occurring over a certain period of time defines the pricing of a disability policy, it is the pricing principle known as:

Answer:

Frequency Question 19: Which of the following is a true statement regarding the social security (OASHI) program?

Answer:

The program provides a minimum floor of income, and is meant to supplement a retiree's own personal program

Question 20: The policy provision which prevents an insurer from voiding a policy for

misstatements after 2 years is:

Answer:

Incontestability Question 21: The insured bought an annuity ten years ago. He will retire in five years. To determine the value of his annuity, he must multiply the value of the "accumulation units" he owns, times the value of the "separate account". This type of annuity is known as a

Answer:

Variable annuity Question 22: A person has paid $50,000 into a fixed annuity over 20 years. When he decides to begin income payments the insurer calculates that he will receive $4,000 per year for life, which means that he will receive a total of $100,000. In the first 10 years of payments how much is taxable each year?

Answer:

$2,000

Question 23: What happens to a license after the death of a natural person who holds a valid insurance license?

Answer:

It always terminates Question 24: All of the following are valid reasons for the Insurance Commissioner to deny the

applicant for an insurance license, EXCEPT:

Answer:

Applicant does not have a California business address Question 25: The department responsible for evaluation, selection and distribution of risks is:

Answer:

Underwriting department Question 26: An individual license is considered terminated:

Answer:

On the death of the licensee