Guarantee Exam L&H Insurance

On an Accidental Death and Dismemberment policy, the death benefit payable is known as the

principal sum

Under the common accident provision, how many deductibles would be paid if five family members covered under the same major medical policy are injured in the same accident?

1

How long is the grace period for an individual life insurance policy?

1 month

Which of the following statements is INCORRECT regarding the definition of total disability?

Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience.

An IRA contribution can be made from which of the following?

cash

An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?

conditional receipt

What does Basic Medical Expense cover?

non-surgical services a physician provides

An insured purchased an insurance policy with a renewability clause that states the policy is "Guaranteed Renewable". This means that as long as the required premiums are paid, the policy will continue until the insured

reaches age 65

Which of the following will NOT be included in the buyer's guide?

specific information about the policy

Which of the following entities is considered the principal?

the insurer issuing a policy

Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?

they are received tax free

Which of the following best describes a Major Medical Expense Policy?

It provides catastrophic medical coverage beyond basic benefits on a usual, customary and reasonable basis.

According to the Common Disaster clause, if the insured and the primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

What happens to the face amount of a whole life policy if the insured reaches the age of 100?

the face amount is paid to the insured

Which of the following services will NOT be provided by an HMO?

unlimited coverage for treatment for drug rehabilitation

When an insured terminates membership in the insured group, the insured can convert to

whole life without proof of insurability

Under the mandatory uniform provision Notice of Claim, written notice of claim must be submitted to the insurer within what time parameters?

within 20 days

For how many years must a life insurance policy be in effect until the policyowner may be able to take out a policy loan?

3 years

Under what circumstances will the contingent beneficiary receive the death benefit?

If the primary beneficiary dies before the insured

All of the following statements are true regarding an Ordinary Straight Life policy EXCEPT

It does not have a guaranteed death benefit.

A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?

a percentage of the face amount

What guarantees that the information explained in the insurance contract is true?

a warranty