Insurance Exams Study Questions

1

Which of these statements is incorrect? Regarding the federal income tax treatment of life insurance?

1

Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself?

1

The amount of monthly disability benefits payable under Security Social Security is affected by which of the following factors

1

What point does an informal agreement become a binding contract?

1

How long does an insurance company appointment remain in force?

1

Which of the following statements about non-contributory employees group life insurance is false?

1

The percentage of individuals primary insurance amount PIA determines the benefits paid in which of the following programs

1

At the age of 45, an individual withdraws $50,000 from his qualified profit sharing plan, and then deposits this amount into a personal savings account. This action would result in _____ .

1

Who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas?

1

What is the excise tax rate the IRS imposes on individuals age 70 and a half or older who do not take the required minimum distributions from their qualified retirement plan?

1

Which statement is correct regarding the premium payment schedule for those for Whole Life policies?

1

F needs life insurance that provides coverage only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?

1

Which of the following is not a required provision in a group like policies?

1

A policy owner may generate taxable income from which of the following dividend options.

1

An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be issued with an

1

S buys a $10,000 whole life policy and 2003 and pays a premium of $100. S dies five years later in 2008, and the insurer pays the beneficiary $10,500. What kind of rider was included on the policy

1

A temporary agent's license issued by the Commissioner of Insurance is valid for up to how many days?

1

A variable annuity has which of the following characteristics?

1

S age 40, is looking to buy a life insurance policy that will allow for increases or decreases in coverage as his needs change. The best policy suited for S would be

1

A sole proprietor may use this plan only if the employees of his business are included.

1

A policy that becomes a modified endowment contract MEC will

1

P owns a $25,000 life policy that pays the face amount to him if he lives to age 70 or to his beneficiary if he dies before age 70. What kind of policy does P own?

1

S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks, which of these policies does S own?

1

A(n) ____ of benefits of a health policy transfers payments to someone other than the policy on

1

Which of these is an element of a variable life policy?

1

A ____ rider may be used to include coverage for children under their parents life insurance policies.

1

Which of the following best describes a hospital indemnity policy?

1

A 45 year old woman won $100,000 In a scratch off lottery ticket. She purchased that annuity that will pay her $1,500 per month beginning at age 60. Which of these annuities did this woman purchase?

1

Which of these provisions is not required in life insurance policies?

1

A disability elimination period is best described as a

1

Which of these policies can an individual use their medical flexible spending account to pay for?

1

The automatic premium loan provision is designed to

1

D owns a whole life policy that was purchased 10 years ago. If the premium payments suddenly stopped in D takes no additional action which nonforfeiture option will the insurer likely proceed with?

1

Which of the following is not included in a life insurance illustration?

1

A cost of living rider gives the insured

1

An evidence of Coverage form may be issued by a health maintenance organization HMO after being approved by the

1

Which of these non forfeiture options continue a buildup of cash value?

1

What is considered to be a characteristic of an immediate annuity?

1

Which of these retirement plans can be started by an employee even if another plan is in existence?

1

Information obtained from a phone conversation to the proposed insured can be found in which of these?

1

which of the following actions is not possible with a universal life?

1

A contract owner terminates an annuity before the income payment period begins the owner will then receive what?

1

what is being delivered during a policy

1

If a 10 year term life policy contains a renewability provision, the policy will renew

1

The individual most likely to buy a Medicare Supplement policy would be who?

1

The cash value in a what kind of life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest and expense factors.

1

kay is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value. A beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a what?

1

Life insurance that covers an insurance whole life with level premiums paid over a limited time is called What?

1

k owns a whole life policy. if K wants an increasing death benefit to protect against inflation, which dividend options should she choose?

1

P as an employee who quits her job and wants to convert her group health coverage to an individual policy after the Cobra expiration benefits, which of the following statements is true?

1

What kind of policy is considered to be overfunded as stated by the IRS guidelines?

1

A provision in a policy that pays the policy owner an amount that does not surpass the guaranteed cash value is called the:

1

What kind of insurance product covers children under their parents policy?

1

P is looking to purchase a life insurance policy that will pay a stated amount monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should he purchase?

1

All our true statements regarding the underwriting process except

1

What type of reinsurance contract involve two companies automatically sharing their risk exposure

1

Which of these is not considered to be the cost connected with an individual's death?

1

A physician opens up a new practice and qualifies for $7,000 a month disability income policy. What rider would the position add if he wants the ability to increase his policy benefit as his practice and income grow?

1

T was treated for an ailment two months prior to applying for a health insurance policy. This condition was noted on the application and the policy was issued shortly after. How will the insurer likely consider this condition?

1

Under a graded premium policy the premiums are:

1

A new general property and casualty licensee must complete at least how many hours of continuing education within 24 months of initial licensure.

1

A prepaid application for individual disability income insurance was recently submitted to the insurer when the insurer received the Medical Information Bureau report. The report showed that the applicant has suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company not take?

1

P is insured on a participating life policy. Which statement is true if peace premiums were waived due to a disability is the answer

1

With which health policy clause stipulates that an insurance company must attach a copy of the application to ensure that it is part of the contract.

1

k is an agent who takes an application for individual life insurance policy and accepts a check from the client. He submits the application and check to the insurance company. However, the check was never signed by the applicant if the applicant is approved. When will coverage become effective?

1

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned cost of insurance and:

1

Jay is a subscriber to a plan which contracts with doctors and hospitals. To provide medical benefits at a predetermined price. What type of plan does J belong to?

1

Which of these statements concerning an individual disability income policy is true?