LIFE INSURANCE - PRACTICE TEST QUESTIONS EXAM

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LIFE INSURANCE - PRACTICE TEST QUESTIONS EXAM

QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -82 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: group underwriters are concerned with what criteria that relates to the group as a whole?

• adverse selection
• size of group
• nature of group
• all of the above

Answer:

• all of the above

Question 2: After 12 years, the policyowner decides she no longer needs the large death benefit on her whole life policy. She calls you, her agent, and you tell her she can use the reduced paid-up non-forfeiture option. Which of the following is not true about the new policy?

• The new policy will require no further premium payments.
• The new policy will be in effect until the age of 100, or until she dies, whichever occurs first.
• The new policy will expire in 10 years.
• The new death benefit is much lower than the original policy.

Answer:

C Question 3: which of the following is an acronym for federal legislation covering the continuation of insurance coverage for terminated employees?

A. COBRA

B. ERISA

C. OBRA

• All of the above

Answer:

A. COBRA

Question 4: Which of the following riders would provide for an insured to increase the face amount of their life insurance policy without proof of insurability?

• Waiver of premium
• Double indemnity rider
• Accelerated death benefit
• Guaranteed insurability/future purchase option

Answer:

D Question 5: the term used to apply to a break given to people caring full time for an individual in

their home is:

• restoration
• intermediate care
• respite
• none of the above

Answer:

• respite

Question 6: Which qualified plan is characterized by having a non-deductible contribution and tax-free distribution?

• TSA's
• Traditional IRA
• Roth IRA
• Keogh

Answer:

C Question 7: Under which life settlement option does the insurer retain the death benefit but pays the beneficiary the earnings on the death benefit?

• Life income option
• Interest only option
• Cash option
• Accumulate with interest option

Answer:

B Question 8: primary support for medicare part A comes from:

• general tax revenues
• social security payroll taxes
• private funding
• combo of above

Answer:

• SS payroll taxes

Question 9: medicare supplement policy:

• prohibits exclusion of pre-existing conditions
• prohibits exclusion of pre-existing conditions if their occurred 6 months prior to policy
• prohibits exclusion of pre-existing conditions after policy has been in force for 6 months
• none of the above

Answer:

C.Question 10: an individual has a hospital indemnity plan that pays $500/day. this person is hospitalized for two days and the bills are $400/day. how much will the company pay?

A. $800

B. $1,000

C. $600

D. $100

Answer:

B. $1,000

Question 11: which of the following is the least restrictive definition:

• own occupation
• any occupation
• any occupation for which the person is suited by education, training, or experience
• own occupation for the first 5 years then any occupation that the person is suited for

Answer:

• own occupation