WFG Test 2 #1-50

Monthly-premiums individual health insurance policies must provide a Grace Period of at least

10 days

What type of policy would offer a 40-year old the quickest accumulation of cash value?

20-pay life

During the underwriting process for a group health policy, it was discovered that 15 out of 50 members of the group have major health issues. How would the insurer handle this?

Accept or reject the whole group

If an insured dies because of an accident, which type of life insurance rider will provide additional coverage?

Accidental death rider

How long does the coverage normally remain on a Limited Pay Life policy?

Age 100

Henry is covered by a Term Life Policy and does not make the required premium payment which was due August 1. He dies Sep 15. What action will the insurer take?

Claim will be DENIED

An insurance company receives an application for an individual Health Policy. Joan did not complete all of the medical history questions because she could not remember the exact dates. She signed the policy and submitted it to the insurance company anyway. A few weeks later, Joan suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. Which of the following clauses details the condition that Joan did not meet?

Consideration clause

What kind of Life Insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?

Convertible term

What type of Life Policy has a death benefit that adjusts periodically as it is written for a specific period of time?

Decreasing term

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?

Entire Contract

When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the?

Entire contract provision

Under the payment of claims provision, when are benefits typically payable after proof of loss is received?

Immediately

How does rising morbidity rates affect health insurance?

Increased premiums

Which of the following insurance policy provisions specifies the benefits of services a policy will provide?

Insuring clause

What kind of annuity pays income to two annuitants until their deaths?

Joint and survivor annuity

One important function of an insurance company is to identify and sell to potential customers. Which of these BEST describes this function?

Marketing

John buys a policy where the premium stays fixed for the first 5 years. The Premium then increases in year 6 and stays level thereafter all the while the death benefit remains the same. What kind of policy is this?

Modified Whole Life

Which of the following describes the number of deaths in a year compared to the number of people in a select group?

Mortality

When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value?

Policy's cash value is not affected

Which of the following is NOT an insurer policy expense?

Premiums

Which of these characteristics is consistent with straight life policy?

Premiums are payable for as long as there is insurance coverage in force

Which of the following is NOT a factor in determining the morbidity of a group of individuals?

Race

If a material warranty violation on the part of the insured is found, what recourse does an insurer have?

Rescind the policy

What is the suicide provision designed to do?

Safeguard the Insurer, from an applicant who is contemplating suicide

Which of the following provisions is NOT required in HMO contracts certificates?

Seven-Day grace period

Henry would like to assured $10k is available in 10 years o replace a Roof of his house. What kind of $10k policy should he purchase

Ten Year Endowment

What type of Life Insurance gives the greatest amount of coverage for a limited period of time

Term Life

John was actively serving in the Marines, when he was killed in an automobile accident, while on leave. His $100k whole Life Policy contains a "War Exclusion" clause. How much will his beneficiaries receive?

The FULL Face amounts

The most important factor to consider when determining whether to convert term insrurance at the insured's attained age of the insured original age is?

The cost

The Consideration Clause, in an Insurance Policy indicates that a policy owner's consideration consists of a completed application and?

The initial premium

What type of changes can be made to a guaranteed renewable health insurance policy?

The premium rates of the policyowner

An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account" What kind of annuity BEST matches this description?

Variable annuity

In what situation does a waiver of premium provision keep a health insurance policy in force without premium payments?

When an insured becomes totally disabled

When is the Face amount of a whole life policy paid?

When the insured dies or at the policy maturity date whichever happen first

What type if Insurance offers permanent life coverage with premiums that are payable for life?

Whole life

The systematic liquidation of a sum of money is provided by a(n)

annuity

Manuel is a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT

driving

Which of these statements describe a Modified Endowment Contract?

exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

Which of the following provisions specifies how long a Policy Owner's insurance coverage will remain in effect, if the policy owner does not pay the premium when is it due?

grace period

Restoring an insured to the same condition as before a loss is an example of the principle of

indemnity

Credit Life Insurance is

issued in an amount not to exceed the amount of the loan

What does the grace period allow a policyowner to do?

make a premium payment after the due date without any loss of coverage

The probability of death, listed by year, is demonstrated in

mortality tables

An insurer owned by its policyholders is called a

mutual insurer

A unilateral contract is one in which

only one party (the insurer) makes any kind of legally enforceable promise

In a life insurance policy, the entire contract consists of

policy and attached application

Minimum participation standards exist for group health insurance plans to

prevent adverse selection

What are residual disability income insurance payments based on?

the amount of the insured's income is reduced by the disability

Kim is insured under a disability income insurance policy with an "own-occupation" clause. She was recently injured in an automobile accident and can no longer perform the tasks of her job. Kim is now considered to be

totally disabled

Which Policy requires an Agent to register with the National Association of Securities Dealers NASD, before selling?

variable life