SC ACCIDENT. HEALTH, AND LIFE INSURANCE EXAM

PDF Download

SC ACCIDENT. HEALTH, AND LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -89 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: seeks temporary protection and lower premiums

Answer:

Term insurance is appropriate for someone who

Question 2: Family term insurance rider

Answer:

Which of these riders will pay a death benefit if the insured's spouse dies?

Question 3: A good health statement

Answer:

Upon policy delivery, which of the following myst a producer have an applicant sign if no initial premium was collected with the life insurance application?Question 4: Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid.*coordination of benefits allows the secondary payor to reduce their benefit payments so that no more than 100% fo the claim is paid.

Answer:

Which of the following does Coordination of Benefits allow?

Question 5: Term Life Insurance

Answer:

Which of the following policies does NOT build cash value?

Question 6: Estate Conservation

Answer:

Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?

Question 7: Decreasing term insurance

Answer:

Julie has a $100,000 30 year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30 year period?

Question 8: 60 days

Answer:

A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences.

Question 9: provide coverage for home mortgage

Answer:

Decreasing term life insurance is often used to

Question 10: 2 years

Answer:

An insurance policy may NOT be cancelled by the insurer (except for fraud) after ____ year(s) from policy issue.

Question 11: Term

Answer:

Which of the following policies does NOT build cash value

Question 12: Warranty

*a warranty is considered a statement of fact or something guaranteed to be true. Breach of warranties can be considered grounds for voiding the policy.

Answer:

What guarantees that the statements supplied by an insurance applicant are true?

Question 13: Guaranteed lifetime withdrawal benefit

*(GLWB) is a rider on a variable annuity that allows minimum withdrawals from the invested amount without having to annuitize the investment

Answer:

An annuitant is guaranteed to NOT outlive their benefits with a(n)

Question 14: Joint Life Insurance Policy

*a joint life insurance policy covers the lives of two people and is payable upon the first death.

Answer:

A life insurance policy written on one contract for two people in which it is payable upon the first death is called

Question 15: File written proof of loss

Answer:

After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?

Question 16: 6 months

Answer:

An insurer may exclude preexisting conditions on a Medicare Supplement policy for ______ months.

Question 17: Survivorship Life

Answer:

The type of policy which pays on the death of the last person is called

Question 18: help pay off existing loans during periods of disability

Answer:

Credit accident and health plans are designed to

Question 19: Limited policies

Answer:

Low frequency diseases can be exclusively covered by what kind of health insurance policies?Question 20: Determines what is paid by the primary and secondary insurers in the event of a claim.

Answer:

In group health care, what is the purpose of the coordination of benefits provision?

Question 21: Implied authority

Answer:

The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority?

Question 22: Viatical Settlement contract

Answer:

A policyowner can receive an immediate payment before the insured dies by using a(n)

Question 23: payor benefit

Answer:

Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies?

Question 24: Losing money at a casino

*Pure risk is a category of risk in which loss is the only possible outcome, which is the opposite of speculative risk. Gambling is considered a speculative risk where there is a chance of either gain or loss.

Answer:

All of the following are examples fo pure risk EXCEPT

Question 25: Skilled nursing, intermediate, and custodial care

Answer:

Generally speaking, which three labels of care are Long-Term Care policies provided with?

Question 26: 7.5%

Answer:

A 10% excise tax is normally applied to an early withdrawl from an IRA. According to HIPPA this tax will not be applied if the withdrawal is used for medical expenses taht exceed ____ of the individual's adjusted gross income.

Question 27: Incontestable Clause

Answer:

Which of the following protects a policy owner from a misrepresentation caused by an innocent mistake?