KANSAS LIFE & HEALTH INSURANCE FINAL EXAM 150 QUESTION AND ANSWER 2025, Exercises of Public Health

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KANSAS LIFE & HEALTH

INSURANCE FINAL EXAM 150

QUESTION AND ANSWER

[Document subtitle]

[DATE]

[COMPANY NAME] [Company address]

Question: When can a policy owner change a revocable beneficiary? Answer: Anytime

Question: J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Answer: Revocable

Question: M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at any time. What type of beneficiary is his son? Answer: Revocable Beneficiary

Question: Revocable beneficiary Answer: the policy owner may change the beneficiary at any time without notifying or getting permission from the beneficiary.

Question: K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? Answer: Proceeds will be paid to K's estate if P dies within a specified time

Question: How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? Answer: If the primary beneficiary dies before the insured

Question: On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? Answer: Collect initial premium along with a signed health statement

Question: What is being delivered during a policy delivery? Answer: Insurance contract to the proposed insured

Question: Before a life insurance policy is issued, which of these components of the contract is required? Answer: Applicant's signature on application

Question: Which of the following is an important underwriting principle of group life insurance? Answer: Everyone must be covered in the group

Question: A noncontributory group term life plan is characterized by Answer: the entire cost of the plan is paid for by the employer

Question: A person who is insured within a group contract will be given a Answer: certificate

Question: Group life insurance policies are generally written as Answer: annually renewable term

Question: Which provision is NOT a requirement in a group life policy? Answer: Accidental

Question: If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? Answer: Contributory

Question: W is a 39-year-old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) Answer: Immediate annuity

Question: What type of annuity has a cash value that is based upon the performance of its underlying investment funds? Answer: Variable

Question: T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? Answer: Life Annuity with period certain

Question: Which of these statements concerning an Individual Straight Life annuity is accurate? Answer: Payments are made to an annuitant for life

Question: Who elects the governing body of a mutual insurance company? Answer: Policyholder

Question: An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the Answer: Fair Credit Reporting Act

Question: When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? Answer: at future dates specified in the contract with no evidence of insurability required

Question: The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and Answer: The initial premium

Question: When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) Answer: Exclusion

Question: Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? Answer: Entire Contract provision

Question: What provision in a life insurance policy states that the application is considered part of the contract? Answer: Entire contract provision

Question: Which of these is NOT considered to be a right given to a policyowner? Answer: Modify a provision in the insurance contract

Question: How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? Answer: Claims are denied under the Suicide clause of the policy

Question: M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? Answer: Pay face amount minus the past due premium

Question: What benefit does the Payor clause on a Juvenile Life policy provide? Answer: Premiums are waived if the payor becomes disabled

Question: S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? Answer: Automatic policy loan

Question: P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers "No." The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and

Question: Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Answer: Variable life

Question: What kind of special need would a policyowner require with an Adjustable Life insurance policy? Answer: flexible premiums

Question: Which of the following actions requires a policyowner to provide proof of insurability in an Adjustable Life policy? Answer: Increasing face amount

Question: N is a 40-year-old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid- up at retirement. Which of these should N purchase? Answer: 30 pay life

Question: When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? Answer: Conversion provision

Question: Which of these is an element of a Variable Life policy? Answer: A fixed, level premium

Question: Which of these would be considered a Limited-Pay Life policy? Answer: Life paid up at age 70

Question: The amount of coverage on a group credit life policy is limited to Answer: the insured's total loan value

Question: What type of life insurance incorporates flexible premiums and an adjustable death benefit? Answer: universal life

Question: Which statement about a whole life policy is correct? Answer: Cash value may be borrowed against

Question: Which statement is correct regarding the premium payment schedule for whole life policies? Answer: Premiums are payable throughout the insured's lifetime; coverage lasts until death of the insured

Question: T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase? Answer: 10 year endowment

Question: What type of insurance offers permanent life coverage with premiums that are payable for life? Answer: Whole life

Question: Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? Answer: Conversion

Question: When is the face amount paid under a Joint Life and Survivor policy? Answer: Upon death of the last insured

Question: What type of life policy covers two people and pays upon the death of the last insured? Answer: Survivorship

Question: Which of these characteristics is consistent with a Straight Life policy? Answer: Premiums are payable for as long as there is insurance coverage in force

Question: Which statement is true concerning a Variable Universal Life policy? Answer: Policyowner controls where the investment will go and selects the amount of the premium payment

Question: When must insurable interest be present in order for a life insurance policy to be valid? Answer: At the time of application

Question: If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of? Answer: insured

Question: When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have Answer: insurable interest in the proposed insured

Question: Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called Answer: representations

Question: The part of a life insurance policy guaranteed to be true is called a(n) Answer: Warranty

Question: T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision? Answer: Primary carrier

Question: The reason for a business having a Business Overhead Expense Disability Plan is to cover Answer: fixed business expense

Question: The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the Answer: Waiting period

Question: Which of these options can an individual use their medical flexible spending account to pay for? Answer: prescription drugs

Question: Which of the following statements BEST describes dental care indemnity coverage? Answer: Services are reimbursed after the insurer receives the invoice

Question: Major Medical policies typically Answer: contain a deductible and coinsurance

Question: An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses? Answer: $3,

Question: Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible? Answer: Carryover Provision

Question: With a Basic Medical Expense policy, what does the hospitalization expense cover? Answer: Hospital room and board

Question: N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as Answer: Coinsurance

Question: In Major Medical Expense policies, what is the intent of a Stop Loss provision? Answer: Limits an insured's out-of-pocket medical expenses

Question: Which of the following BEST describes a Hospital Indemnity policy? Answer: Coverage that pays a stated amount per day of a covered hospitalization

Question: For which of the following expenses does a Basic Hospital policy pay? Answer: Hospital room and board

Question: Which of the following costs would a Basic Hospital/Surgical policy likely cover? Answer: Surgically removing a facial birthmark

Question: Deductibles are used in health policies to lower Answer: Overuse of medical services

Question: Basic Hospital and Surgical policy benefits are Answer: lower than the actual expenses incurred

Question: Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? Answer: Premiums normally increase at time of renewal

Question: What type of renewability guarantees premium rates and renewability? Answer: Guaranteed renewable

Question: When does a Probationary Period provision become effective in a health insurance contract? Answer: At the policy's inception

Question: The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the Answer: insuring clause

Question: 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? Answer: Claim will be paid and coverage will remain in force

Question: K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation? Answer: Reinstatement

Question: G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills? Answer: The insured

Question: When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? Answer: Recurrent Disability

Question: T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled, what can he likely expect? Answer: Less than $5,000 per month benefit regardless of the cause

Question: Which parts of a life insurance policy are guaranteed to be true? Answer: Warranty

Question: P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to Answer: P Only

Question: F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? Answer: Decreasing term policy