Download 2025-2026 Alaska Life and Health Insurance State Exam: 600+ Questions and Answers and more Exams Insurance Economics in PDF only on Docsity!
2025 - 2026 ALASKA LIFE AND HEALTH INSURANCE
STATE EXAM TESTBAK|ORIGINAL 600+ QUESTIONS
AND ANSWERS|GRADED A+
is the act of offering an applicant something of value as an inducement to purchase an insurance policy ANS:>>>✔✔Rebating is the authority given to a producer to transact business on behalf of the insurer. ANS:>>>appointment of personal life insurance premiums is usually deductible for federal income tax purposes. ANS:>>>✔✔ 0% is the act of replacing existing life insurance with a new life insurance policy based upon incomplete or incorrect representations. ANS:>>> ✔✔ Twisting A producer does not have the authority to change a policy or waive any of its provisions. The health provision that best describes this statement is called the –
correct answer ✔✔ Entire Contract A "reimbursement policy" pays what amount of covered Long-Term Care expenses? - correct answer ✔✔ Actual covered expenses up to the daily maximum A $20,000 life insurance policy application is completed, however the producer does not collect the initial premium. At what point does the coverage go into effect? ANS:>>> ✔✔ When the applicant receives the policy and pays the initial premium A 15 - year mortgage is best protected by what kind of life policy? - correct answer ✔✔ 15 - year decreasing term A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased an annuity that will pay her $1,500 per month beginning at age 60. Which of these annuities did this woman purchase? ANS:>>> ✔✔ Deferred fixed annuity
insurance plans? ANS:>>> ✔✔ major medical A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? ANS:>>> ✔✔ Disability Income A characteristic of Preferred Provider Organizations (PPOs) would be: ANS:>>> ✔✔ Discounted fees for the patient A company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT ANS:>>> ✔✔ Change the policy's interest rate A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for : ANS:>>> ✔✔ experimental and investigative services
A contract owner terminates an annuity before the income payment period begins. The owner will then receive ANS:>>> ✔✔ the current contract surrender value A Cost of Living rider gives the insured ANS:>>> ✔✔ additional death benefits A disability elimination period is best described as a ANS:>>> ✔✔ time deductible A Disability Income policy that only the policyowner can terminate and which the rates will never go up is considered to be ANS:>>> ✔✔ no cancellable A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? ANS:>>> ✔✔ Claim will be paid and coverage will remain in force
A Health Reimbursement Arrangement MUST be established: ANS:>>> ✔✔ by the employer A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Director is required to ANS:>>>✔✔give written notice to the producer A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well. What would be this family's out-of- pocket medical expenses for 2013? ANS:>>>✔✔$1, A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? ANS:>>>✔✔Company X
A level premium indicates: ANS:>>>✔✔the premium is fixed for the entire duration of the contract A life insurance application may be rejected on the basis of all of these factors EXCEPT - correct answer ✔✔gender A life insurance application must be signed by all of these, EXCEPT: ANS:>>>✔ ✔beneficiary A life insurance Policy Summary MUST contain ANS:>>>✔✔the premium cost for basic coverage applied for A life insurance policy that provides a policyowner with cash value along with a level face amount is called: ANS:>>>✔✔whole life A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? ANS:>>>✔✔Waiver of Premium
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following? ANS:>>>✔✔Inability of the insured to perform more than 2 Activities of Daily Living (ADL's) A Major Medical policy typically contains a provision that requires the insurer to pay only part of a loss, while the balance is paid by the insured. This provision is called ANS:>>>✔✔Coinsurance A major medical policy typically: ANS:>>>✔✔provides benefits for reasonable and necessary medical expenses, subject to policy limits A medical care provider which typically delivers health services at its own local medical facility is known as a ANS:>>>✔✔health maintenance organization A Medical Information Report (MIB) report may disclose which of the following: - correct answer ✔✔Prior use of marjuana
A non-contributory plan requires participation of all eligible employees. ANS:>>>✔✔100%
lose many of its tax advantages A policyowner is able to choose the frequency of premium payments through what policy feature? ANS:>>>✔✔Premium Mode A policyowner is allowed to pay premiums more than once a year under which provision? ANS:>>>✔✔Mode of Premium A policyowner may generate taxable income from which of the following Dividend Options? ANS:>>>✔✔Accumulation at interest A policyowner would like to change the beneficiary on an insurance policy and make the change permanent. Which type of designation would fulfill this need? ANS:>>>✔✔irrevocable A policyowner's rights are limited under which beneficiary designation? ANS:>>> ✔✔irrevocable A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct? ANS:>>>✔✔ 20 - Pay Life accumulates cash value faster than Straight Life A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had 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? ANS:>>>✔✔Send a notice to the MIB that the applicant was declined A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies? - correct answer ✔✔Proceeds will go to the contingent beneficiary A producer must handle funds of a client or insurance company honestly and fairly and NOT use them for the producer's own purposes. This is called ANS:>>>✔✔Fiduciary responsibility A producer must notify the Director within days of a felony conviction
A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a: ANS:>>>✔✔profit-sharing plan A Return of Premium life insurance policy is: ANS:>>>✔✔Whole life and Increasing term A sole proprietor may use this plan ONLY if the employees of this business are included. - correct answer ✔✔Keogh Pension Plan A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as ANS:>>>✔✔representation A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? ANS:>>>✔✔Aviation exclusion
A term life insurance policy matures: ANS:>>>✔✔upon the insured's death during the term of the policy A Term Life rider offers the insured ANS:>>>✔✔additional life coverage A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid ANS:>>>✔✔mandatory income tax withholding on the transfer amount 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 the ANS:>>>✔✔expense charges A Variable Annuity has which of the following characteristics? ANS:>>>✔✔ Underlying equity investments
A Whole Life insurance policyowner does NOT have the right to ANS:>>>✔✔ change the grace period A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value? - correct answer ✔✔Life settlement contract A(n) term life policy is normally used when covering an insured's mortgage balance - correct answer ✔✔decreasing A(n) beneficiary may be changed by the policyowner WITHOUT the consent of the beneficiary. ANS:>>>✔✔Revocable A(n) contained in a life insurance policy states that the policy will NOT cover certain risks. ANS:>>>✔✔exclusion
A(n) of benefits of a health policy transfers payments to someone other than the policyowner ANS:>>>✔✔assignment A(n) rider may be used to include coverage for children under their parents' life insurance policy. ANS:>>>✔✔term A(n) annuity pays benefits based on units rather than stated dollar amounts. - correct answer ✔✔variable ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has ANS:>>>✔✔waived one of its legal rights ABC Insurance Company would like to issue a small employer group policy in this state. Before doing so, it is REQUIRED to ANS:>>>✔✔be authorized to
