Life & Health Insurance Exam Prep #1

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

The Commissioner of Insurance issues a cease and desist order to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

60 days

While a claim is pending, an insurance company may require

An independent examination as often as reasonably required

An insured's premium increases as a result of her age. Which type of policy does she have?

Attained age

The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's

Attained age

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?

Cost comparison methods

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower

An insured purchased an insurance policy 5 years ago. Last year, the insured received a dividend check from the insurance company that was not taxable. This year, the insurer did not send a check. From what type of insurer did the insured purchase the policy?

Mutual

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

The part of Medicare that helps pay for inpatient hospital care, inpatient care in a skilled nursing facility, home health care and hospice care, is known as

Part A

Regarding the taxation of Business Overhead policies,

Premiums are deductible and benefits are taxed.

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within

90 days

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of a loss

To be eligible for tax credits under the ACA, individuals must have income that is what percent of the Federal Poverty Level?

Between 100% and 400%

What is NOT a benefit of a POS plan?

It allows guaranteed acceptance of all applicants.

An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?

Neither approved the application nor issued the policy

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal.

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

Third-party ownership

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent