Test

#79. Benefit periods for individual short-term disability policies will usually continue from a) 6 months to 2 years. b) 2 years to age 65. c) 1 week to 4 weeks. d) 3 months to 3 years.

a) 6 months to 2 years.

#32. A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then a) The benefit is received tax free. b) The benefit is subject to the exclusionary rule. c) IRS has no jurisdiction. d) The benefit is received as taxable income.

a) The benefit is received tax free.

#20. When an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply? a) Claims discrimination b) Case management provision c) Cost reduction d) Claims reduction

b) Case management provision

#69. Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member? a) Additional insured rider b) Family term rider c) Spouse rider d) Children's rider

b) Family term rider

#23. To sign up for a Medicare prescription drug plan, individuals must first be enrolled in a) Medicare Part D. b) Medicare Part A. c) Medicare Part B and C. d) Medicare Parts A and C.

b) Medicare Part A.

#27. Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs? a) Risk classification b) Metal level classification c) Guaranteed and nonguaranteed d) Grandfathered and nongrandfathered

b) Metal level classification

#14. Which clause allows both the insured and dentist to know in advance which benefits will be paid? a) Fixed Rate b) Precertification c) Preadmission d) Advanced Benefit Notification

b) Precertification

#83. An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws near, the insured answers medical questions in order to prove insurability and qualifies for a discounted premium rate. Which option best describes this scenario? a) Revision of consideration b) Re-entry c) Preferred premium reduction d) Contract review

b) Re-entry

#126. Which nonforfeiture option provides coverage for the longest period of time? a) Accumulated at interest b) Reduced paid-up c) Extended term d) Paid-up option

b) Reduced paid-up

#94. Regarding health insurance premiums, all of the following statements are true EXCEPT a) Standard risks pay the regular premium for their classification. b) Substandard risks are not insurable and are always rejected. c) Rated policies can be issued by standard insurers. d) Preferred risks may be given a discounted rate for being a non-smoker or a non-drinker.

b) Substandard risks are not insurable and are always rejected.

#81. An insured owns a medical expense policy that he purchased for his family. The insured's employer purchased a Group Disability Income policy for the insured and all eligible employees. The insured subsequently suffered an accident on the job that left him unable to work for four months. If the insured receives benefits from his disability income policy, which of the following would be true? a) Benefits from employer contributions are not taxable. b) The insured can deduct his medical expense benefits from his income tax. c) Benefits received that are attributable to employer contributions are fully taxable to the employee as income. d) Premiums the insured paid for his medical expense policy are normally deductible from his income.

c) Benefits received that are attributable to employer contributions are fully taxable to the employee as income.

#55. Under which of the following disability income plans would the benefits be subject to income tax? a) Key person b) Partnership buy-out c) Group d) Individual

c) Group

#29. A Universal Life insurance policy has two types of interest rates that are called a) Fixed and Variable. b) Minimum and Target. c) Guaranteed and Current. d) Option A and Option B.

c) Guaranteed and Current.

#16. If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a a) Cost of living provision. b) Nonforfeiture option. c) Guaranteed insurability rider. d) Paid-up additions option.

c) Guaranteed insurability rider.

#28. The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true? a) A corporation can be an annuitant as long as the beneficiary is a natural person. b) The contract can be issued without an annuitant. c) The annuitant must be a natural person. d) A corporation can be an annuitant as long as it is also the owner.

c) The annuitant must be a natural person.

#18. Which of the following is true regarding METs? a) They provide insurance for larger corporations. b) They provide insurance companies with medical information on applicants. c) They allow several small employers purchase less expensive insurance together. d) They make deals with local hospitals to provide low cost coverage to the needy.

c) They allow several small employers purchase less expensive insurance together.

#107. What is the purpose of key person insurance? a) To insure retirement benefits are available to all key employees b) To maintain an account that insures the owner of a company remains solvent c) To lessen the risk of financial loss because of the death of a key employee d) To provide health insurance to the families of key employees

c) To lessen the risk of financial loss because of the death of a key employee

#112. A person buys an individual long-term care policy and is not satisfied with the provisions. Within how many days will the insured be able to return the policy for a full premium refund? a) 10 days b) 15 days c) 20 days d) 30 days

d) 30 days

60. How long is the free look period for annuities if the contract holder is older than 65? a) 2 weeks b) 15 days c) 10 days d) 30 days

d) 30 days

#74. What is the period of coverage for events such as death or divorce under COBRA? a) 60 days b) 31 days c) 12 months d) 36 months

d) 36 months

#104. How many hours of continuing education are producers required to complete every licensing period? a) 20 b) 36 c) 40 d) 48

d) 48

#52. Which of the following is NOT an allowable 1035 exchange? a) A whole life insurance policy is exchanged for a Universal life insurance policy. b) An annuity is exchanged for another annuity. c) A life insurance policy is exchanged for an annuity. d) A whole life insurance policy is exchanged for a term insurance policy.

d) A whole life insurance policy is exchanged for a term insurance policy.

#64. Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis? a) Residential care b) Assisted living c) Home health care d) Adult day care

d) Adult day care

#71. The death protection component of Universal Life Insurance is always a) Whole Life b) Adjustable Life c) Increasing Term d) Annually Renewable Term

d) Annually Renewable Term

#108. An insurance producer who by contract is bound to write insurance for only one company or group of companies is classified as a/an a) Solicitor. b) Broker. c) Independent producer. d) Captive agent.

d) Captive agent.

#47. Which of the following would NOT be used in preventive care? a) Pap smear b) Annual physical exam c) Mammogram d) Chemotherapy

d) Chemotherapy

#49. Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital? a) Surgical b) Blanket c) Medigap d) Indemnity

d) Indemnity

#118. A patient has severe gingivitis and is seeking treatment from his dentist. Which type of dental treatment is this? a) Orthodontics b) Soft dental c) Endodontics d) Periodontics

d) Periodontics

#97. Another name for a substandard risk classification is a) Controlled. b) Declined. c) Elevated. d) Rated.

d) Rated.

#93. The main difference between immediate and deferred annuities is a) How the annuity is purchased. b) The number of insureds. c) The amount of each payment. d) When the income payments begin.

d) When the income payments begin.

#43. What percentage of individually-owned disability income benefits is taxable? a) 0% b) 50% c) 100% d) Amount paid by insured

a) 0%

#149. Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? a) It does not guarantee that the entire principal amount will be paid out. b) It is a life contingency option. c) The beneficiary receives the remainder of the principal amount upon the annuitant's death. d) Payments can be made in installments and as a single cash refund.

a) It does not guarantee that the entire principal amount will be paid out.

#140. In regards to disclosure requirements for annuity contracts, if the buyer's guide and the disclosure document are available to be printed from the insurer's Web site, a) This will fulfill the disclosure requirements for applications received through the Internet. b) The insurer does not need to provide the documents in its offices. c) Applicants must electronically sign each document to verify that they have seen it. d) Applicants must print and sign copies to be submitted with their applications.

a) This will fulfill the disclosure requirements for applications received through the Internet.

#137. Which of the following is true regarding Medicare supplement policies? a) They must be available to those aged 60 and over. b) They must be guaranteed renewable. c) They must have a 15-day free-look period. d) They must contain a minimum of Plans A and B.

b) They must be guaranteed renewable.

#143. Which of the following is designed to protect security and confidentiality of nonpublic information and the security of the information system? a) Fair Credit Reporting Act b) Cybersecurity event c) Information security program d) Investigative consumer report

c) Information security program

#138. When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income? a) Neither principal nor interest b) Principal only c) Interest only d) Both principal and interest

c) Interest only

#141. S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct? a) 25% b) 50% c) 75% d) 100%

d) 100%

#145. Within how many days must an applicant for an annuity contract receive the disclosure document and the buyer's guide if the application was not taken in a face-to-face meeting? a) 15 calendar days b) 3 calendar days c) 10 business days d) 5 business days

d) 5 business days

#147. An agent selling variable annuities must be registered with a) Department of Insurance. b) The Guaranty Association. c) SEC. d) FINRA.

d) FINRA.

146. Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost? a) Stop-loss b) Consideration c) Reasonable expectations d) Indemnity

d) Indemnity

#150. An individual buys a flexible premium deferred life annuity with 20 year period certain. What would his beneficiary receive if he died 5 years after beginning the annuity phase? a) Payments for 20 years b) Payments for life c) Nothing d) Payments for 15 years

d) Payments for 15 years

#34. Which of the following is true regarding health insurance underwriting for a person with HIV? a) A person may be declined for HIV but not AIDS. b) The person may be declined. c) The person may only be declined if he/she has symptoms. d) The person may not be declined for medical coverage solely based on HIV status.

d) The person may not be declined for medical coverage solely based on HIV status.

#133. Which of the following settlement options in life insurance is known as straight life? a) Fixed amount b) Life income c) Single life d) Life with period certain

b) Life income

#41. The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT a) Face amount of the policy. b) The insured's age at death. c) The beneficiary's life expectancy. d) Projected interest rates.

b) The insured's age at death

#91. If an insured changes his payment plan from monthly to annually, what happens to the total premium? a) Doubles b) Increases c) Decreases d) Stays the same

c) Decreases

#9. Which of the following statements is most correct concerning the changing of an irrevocable beneficiary? a) They may be changed at any time. b) They can never be changed. c) They may be changed only on the anniversary date of the policy. d) They can be changed only with the written consent of that beneficiary.

d) They can be changed only with the written consent of that beneficiary.

80. An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? a) Aleatory b) Good health c) Adhesion d) Conditional

a) Aleatory

#67. HIPAA applies to groups of a) More than 2, fewer than 50. b) 2 or more. c) At least 10. d) At least 100.

b) 2 or more.

#86. Which of the following is NOT true of basic medical expense plans? a) No deductibles b) First-dollar coverage c) Low dollar limits d) Coverage for catastrophic medical expenses

d) Coverage for catastrophic medical expenses

#65. When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by a) A paramedic or examining physician at the insurer's expense. b) The agent. c) A physician of the applicant's choice and at his expense. d) A home office underwriter.

a) A paramedic or examining physician at the insurer's expense.

#13. In Arizona, the Director of Insurance serves a) At the pleasure of the Governor. b) As long as elected by the general public. c) A term of 4 years. d) A term of 8 years.

a) At the pleasure of the Governor.

#39. All prepaid dental plans will provide all of the following basic dental services EXCEPT a) Cosmetic services b) Preventive services. c) Emergency dental services on a 24-hour-per-day basis. d) Diagnostic services.

a) Cosmetic services

#96. A key person insurance policy can pay for which of the following? a) Costs of training a replacement b) Loss of personal income c) Workers compensation d) Hospital bills of the key employee

a) Costs of training a replacement

#92. OBRA requires which disease to be covered by an employer for 30 months before Medicare becomes the primary mode of coverage? a) End-stage renal failure b) Black lung c) Leukemia d) End-stage heart failure

a) End-stage renal failure

#10. An insurer has placed a notice on its advertising stating that its policies are protected by the Life and Disability Insurance Guaranty Fund. This practice is a) Illegal: insurers cannot advertise protection by the Fund. b) Legal: applicants have the right to know about policy guarantees. c) Required by the Life and Disability Insurance Guaranty Fund. d) Optional: each insurer makes its own decision about this.

a) Illegal: insurers cannot advertise protection by the Fund.

Elijah and Mary are to receive the proceeds of a life insurance policy jointly until the first one dies. If either one should die within a specified time, the other one will receive benefits until the end of the specified time. This settlement option is known as: a) Joint Life with Term Certain b) Joint Life c) Joint and Survivor d) Joint and Last Survivor

a) Joint Life with Term Certain

#99. Under workers compensation, which of the following benefits are NOT included? a) Legal benefits b) Medical and rehabilitation benefits c) Income benefits d) Death benefits

a) Legal benefits

#7. If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an a) Modified endowment contract. b) Accelerated benefit policy. c) Endowment. d) Nonqualified annuity.

a) Modified endowment contract.

#130. A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will a) Pay the policy proceeds only if it would have issued the policy. b) Pay the policy proceeds up to an established limit. c) Not pay the policy proceeds under any circumstances. d) Automatically pay the policy proceeds.

a) Pay the policy proceeds only if it would have issued the policy.

#44. A man's physician submits claim information to his insurer before she actually performs a medical procedure on him. She is doing this to see if the procedure is covered under the patient's insurance plan and for how much. This is an example of a) Prospective review. b) Concurrent review. c) Claims-delayed treatment. d) Suspended treatment.

a) Prospective review.

#68. To protect personally identifiable information, state Exchanges must establish safeguards that include all of the following EXCEPT a) Returning copies of paperwork featuring such information to individuals. b) Destroying such information in an appropriate manner. c) Protecting such information from reasonably anticipated threats. d) Disclosing such information only to authorized individuals.

a) Returning copies of paperwork featuring such information to individuals.

#109. Which of the following would an accident-only policy NOT cover? a) Surgery to repair a wrist damaged by tendonitis. b) Hospitalization costs due to a boating accident c) Death from a motorcycle accident d) Amputation of a leg that was burned during a house fire

a) Surgery to repair a wrist damaged by tendonitis.

#25. The market value adjustment in modified guaranteed annuities refers to which of the following? a) The difference between the contracted interest rate and the rate at surrender b) The penalty for a premature surrender of the annuity c) The performance of the annuity investments d) The percentage the insurer keeps for its services

a) The difference between the contracted interest rate and the rate at surrender

#127. An insured purchased a noncancellable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy? a) The insured is in an accident and incurs a large claim. b) The insured does not pay the premium. c) The insured reaches the maximum age limit specified in the policy. d) Within two years of the application, the insurer discovers a misrepresentation.

a) The insured is in an accident and incurs a large claim.

63. Which of the following is NOT a characteristic of an insurable risk? a) The loss must be catastrophic. b) The loss must be due to chance. c) The loss must be measurable. d) The loss exposure must be large.

a) The loss must be catastrophic.

#58. On a health insurance application, a signature is required from all of the following individuals EXCEPT a) The spouse of the policyowner. b) The proposed insured. c) The policyowner. d) The agent.

a) The spouse of the policyowner.

#56. Which of the following is an example of a producer's fiduciary duty? a) The trust that a client places in the producer in regard to handling premiums. b) An obligation to state every known fact about the policy the producer is selling. c) A duty to base all transactions upon the principle of Utmost Good Faith. d) The obligation to tell the truth to the best of one's knowledge

a) The trust that a client places in the producer in regard to handling premiums.

#136. One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of a) Fewer than 50. b) 50 or more. c) 100 or more. d) 25 or more.

b) 50 or more.

#102. Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a) 60 days of a loss. b) 90 days of a loss. c) 20 days of a loss. d) 30 days of a loss.

b) 90 days of a loss.

#114. Which of the following would NOT be an exclusion in a long-term care policy? a) A pre-existing condition b) Alzheimer's disease c) Treatment payable by Medicare d) Alcoholism

b) Alzheimer's disease

#84. Which of the following is NOT applied toward the deductible under a nonscheduled plan? a) Gingivitis treatment b) Annual dental exam c) Root canal d) Wisdom tooth extraction

b) Annual dental exam

#66. What does "liquidity" refer to in a life insurance policy? a) The insured receives payments each month in retirement. b) Cash values can be borrowed at any time. c) The death benefit replaces the assets that would have accumulated if the insured had not died. d) The policyowner receives dividend checks each year.

b) Cash values can be borrowed at any time.

#38. What process will the insurance company use to monitor the insured's hospital stay to make sure that everything is proceeding according to schedule? a) Preventive review b) Concurrent review c) Prospective review d) Corridor deductible

b) Concurrent review

#51. An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the a) Eligibility Clause. b) Consideration Clause. c) Insuring Clause. d) Pre-existing Conditions Clause.

b) Consideration Clause.

#85. A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called a) Payor rider. b) Cost of living rider. c) Accelerated benefit rider. d) Living need rider.

b) Cost of living rider.

#125. The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called a) Multiple Protection insurance. b) Credit life. c) Credit health. d) Decreasing whole life.

b) Credit life.

#131. Because of the history of cancer in her family, Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy? a) Term Health Policy b) Dread Disease Policy c) Family History Cancer Policy d) Specified Health Policy

b) Dread Disease Policy

#46. To be eligible for a Health Savings Account, an individual must be covered by a a) Health plan with no deductible. b) High-deductible health plan. c) Low-deductible health plan. d) Nonqualified plan.

b) High-deductible health plan.

#87. Which of the following entities must approve all Medicare supplement advertisements? a) Consumer Protection Agency b) Insurance Commissioner or Director c) NAIC d) Federal Association of Insurers

b) Insurance Commissioner or Director

#61. Which of the following is true about the premium on the children's rider in a life insurance policy? a) It decreases when an adopted child is added to the policy. b) It remains the same no matter how many children are added to the policy. c) It decreases when the oldest child reaches the age of 21. d) It increases when a newborn baby is added to the policy.

b) It remains the same no matter how many children are added to the policy.

#76. An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay? a) $10,000 b) $7,500 c) $5,000 d) $0

c) $5,000

#115. The sole proprietor of a business makes a total salary of $50,000 a year. This year, his medical expenses have reached a total of $75,000. What amount may the sole proprietor deduct in regards to his medical expenses? a) $10,000 b) $25,000 c) $50,000 d) $75,000

c) $50,000

#123. Medicaid is sponsored by what kind of sources? a) Federal only b) State only c) Both state and federal d) Private companies

c) Both state and federal

#59. Which of the following would NOT be considered an exception to the National Do Not Call List? a) Calls which are not commercial or do not include unsolicited advertisements b) Calls by or on behalf of tax-exempt nonprofit organizations c) Calls based from outside of the United States d) Calls for which the consumer has given prior written permission

c) Calls based from outside of the United States

Which of the following is true regarding the insurance amount in a credit life policy? a) Allowable amount of coverage is determined by the State Insurance Commissioner. b) The amount of coverage can be greater than the amount owed. c) Creditor can only insure the debtor for the amount owed. d) Creditor may insure the debtor for an unlimited amount of coverage.

c) Creditor can only insure the debtor for the amount owed.

#31. All of the following are features and requirements of the Living Needs Rider EXCEPT a) The remainder of the policy proceeds is payable to the beneficiary at the insured's death. b) It provides funds for medical and nursing home expenses to a terminally ill insured. c) Diagnosis must indicate that death is expected within 3 years. d) It is usually available at no additional charge.

c) Diagnosis must indicate that death is expected within 3 years.

#24. The insurance policy, together with the policy application and any added riders form what is known as a) Contract of adhesion. b) Whole life policy. c) Entire contract. d) Certificate of coverage.

c) Entire contract.

#106. Issue age policy premiums increase in response to which of the following factors? a) Inflation b) Age c) Increased benefits d) Increased deductible

c) Increased benefits

#73. Credit Life insurance a) Insures the life of a creditor. b) Has a maximum term for insurance of 20 years. c) Insures the life of a debtor. d) Is purchased on an installment basis.

c) Insures the life of a debtor.

#121. Which of the following is NOT a metal level of coverage offered under the Patient Protection and Affordable Care Act? a) Silver b) Bronze c) Iron d) Gold

c) Iron

#132. Which of the following will be included in a policy summary? a) Comparisons with similar policies b) Primary and secondary beneficiary designations c) Premium amounts and surrender values d) Copies of illustrations and application

c) Premium amounts and surrender values

#33. A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called a) Reimbursement plan. b) Fee-for-service plan. c) Prepaid plan. d) Indemnity plan.

c) Prepaid plan.

#119. In respect to the consideration clause, which of the following is consideration on the part of the insurer? a) Offering an unconditional contract b) Explaining policy revisions to the applicant c) Promising to pay in accordance with the contract terms d) Offering a secondary policy to the applicant

c) Promising to pay in accordance with the contract terms

#98. Which settlement option provides a single beneficiary with income for the rest of his/her life? a) Lump Sum b) Retained Assets c) Single Life d) Fixed Amount

c) Single Life

#54. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? a) Policy loans are taxable distributions. b) Accumulations are tax deferred. c) Withdrawals are not taxable. d) Distributions before age 59 1/2 incur a 10% penalty on policy gains.

c) Withdrawals are not taxable.

#100. If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following? a) Cancel the policy b) Increase the premium c) Exclude coverage for on-the-job injury d) Adjust the benefit in accordance with the increased risk

d) Adjust the benefit in accordance with the increased risk

#113. Which of the following is TRUE about credit life insurance? a) Debtor is the annuitant. b) Creditor is the insured. c) Debtor is the policy beneficiary. d) Creditor is the policyowner.

d) Creditor is the policyowner.

#35. A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as a) Major medical. b) AD&D. c) Medical expense. d) Critical illness.

d) Critical illness.

#120. What do individuals use to transfer their risk of loss to a larger group? a) Insurable interest b) Exposure c) Indemnity d) Insurance

d) Insurance

#17. Who makes up the Medical Information Bureau? a) Hospitals b) Former insured c) Physicians and paramedics d) Insurers

d) Insurers

#21. If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this? a) Limited pay whole life policy b) Modified life insurance policy c) Single premium policy d) Jumping juvenile policy

d) Jumping juvenile policy

#22. Which of the following is the basis for a claim against an insurance policy? a) Material change b) Hazard c) Misrepresentation d) Loss

d) Loss

#122. In a Disability Income policy, all of the following are considered presumptive disabilities EXCEPT a) Loss of hearing. b) Loss of two limbs. c) Loss of speech. d) Loss of one eye.

d) Loss of one eye.

#117. A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard? a) Moral b) Legal c) Physical d) Morale

d) Morale

#15. Attempting to determine how much insurance an individual would require based upon their financial objectives is known as a) Human life value approach. b) Estate planning. c) Viatical approach. d) Needs approach.

d) Needs approach.

#78. Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? a) Corridor option b) Variable option c) Option A d) Option B

d) Option B

#135. A person steps off a street car and trips and breaks his ankle. This type of injury can be described as a) A recurrent injury. b) Intentional. c) Not covered. d) Sudden and unforeseen.

d) Sudden and unforeseen.

#77. Which of the following is true about the requirements regarding HIV exams? a) Results may be disclosed to the agent and the underwriter. b) Prior informed oral consent is required from the applicant. c) HIV exams may not be used as a basis for underwriting. d) The applicant must give prior informed written consent.

d) The applicant must give prior informed written consent.

#124. An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible? a) It is impossible to transfer a policy. b) The insured would have to surrender his policy to the insurer, and his friend could then ask to buy it. c) The insured can transfer the policy to his friend and then notify the insurer of the change. d) The insured will need a written consent of the insurer.

d) The insured will need a written consent of the insurer.

#70. All of the following are true of key person insurance EXCEPT a) There is no limitation on the number of key employee plans in force at any one time. b) The employer is the owner, payor and beneficiary of the policy. c) The key employee is the insured. d) The plan is funded by permanent insurance only.

d) The plan is funded by permanent insurance only.