Download Kansas Life & Health Insurance Final Exam Questions And Answers and more Exams Insurance law in PDF only on Docsity!
Exam Questions And Answers
When can a policy owner change a revocable beneficiary? - correct answer ✅Anytime J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? - correct answer ✅Revocable 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 anytime. What type of beneficiary is his son?
- correct answer ✅Revocable Beneficiary revocable beneficiary - correct answer ✅the policy owner may change the beneficiary at any time without notifying or getting permission from the beneficiary. 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? - correct answer ✅Proceeds will be paid to K's estate if P dies within a specified time How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - correct answer ✅If the primary beneficiary dies before the insured
Exam Questions And Answers
Which statement is true regarding a minor beneficiary - correct answer ✅Normally, a guardian is required to be appointed in the Beneficiary clause of the contract A life insurance application must be signed by all of these EXCEPT - correct answer ✅Beneficiaries are not required to sign an insurance application K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? - correct answer ✅A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect. P is a producer who notices 5 questions on a life application were not answered. What actions should P take? - correct answer ✅Schedule another appointment with the applicant to complete the unanswered questions M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT - correct answer ✅Free-look period has expired
Exam Questions And Answers
A person who is insured within a group contract will be given a - correct answer ✅certificate Group life insurance policies are generally written as - correct answer ✅annually renewable term Which provision is NOT a requirement in a group life policy? - correct answer ✅Accidental If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - correct answer ✅Contributory 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) - correct answer ✅Immediate annuity What type of annuity has a cash value that is based upon the performance of it's underlying investment funds? - correct answer ✅Variable 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
Exam Questions And Answers
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 - correct answer ✅Life Annuity with period certain Which of these statements concerning an Individual Straight Life annuity is accurate? - correct answer ✅Payments are made to an annuitant for life An individual who purchases a Life annuity is given protection against - correct answer ✅The risk of living longer than expected What is Old Age and Survivors Health Insurance (OASDHI) also known as
- correct answer ✅Social Security Which of these retirement plans can be started by an employee, even if another plan is in existence? - correct answer ✅Individual Retirement Account (IRA) Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company - correct answer ✅Annuity 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
Exam Questions And Answers
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) - correct answer ✅Exclusion 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? - correct answer ✅Entire Contract provision What provision in a life insurance policy states that the application is considered part of the contract? - correct answer ✅Entire contract provision Which of these is NOT considered to be a right given to a policyowner? - correct answer ✅Modify a provision in the insurance contract How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? - correct answer ✅Claims are denied under the Suicide clause of the policy 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? - correct answer ✅Pay face amount minus the past due premium
Exam Questions And Answers
What benefit does the Payor clause on a Juvenile Life policy provide - correct answer ✅Premiums are waived if payor becomes disabled 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? - correct answer ✅Automatic policy loan P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask 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 dies in a scuba-related accident in
- What will the insurer pay to P's beneficiary? - correct answer ✅$50,000 minus any outstanding policy loans S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy - correct answer ✅Return of premium rider The automatic premium loan provision is designed to - correct answer ✅avoid a policy lapse
Exam Questions And Answers
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? - correct answer ✅30 pay life When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? - correct answer ✅Conversion provision Which of these is an element of a Variable Life policy - correct answer ✅A fixed, level premium Which of these would be considered a Limited-Pay Life policy? - correct answer ✅Life paid up at age 70 The amount of coverage on a group credit life policy is limited to - correct answer ✅the insured's total loan value What type of life insurance incorporates flexible premiums and an adjustable death benefit - correct answer ✅universal life Which statement about a whole life policy is correct? - correct answer ✅Cash value may be borrowed against
Exam Questions And Answers
Which statement is correct regarding the premium payment schedule for whole life policies? - correct answer ✅Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured 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 - correct answer ✅10 year endowment What type of insurance offers permanent life coverage with premiums that are payable for life? - correct answer ✅Whole life What type of life policy covers 2 lives and pays the face amount after the first one dies? - correct answer ✅Joint Life policy A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as - correct answer ✅Variable life What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? - correct answer ✅Family maintenance policy
Exam Questions And Answers
Which of these characteristics is consistent with a Straight Life policy? - correct answer ✅Premiums are payable for as long as there is insurance coverage in force Which statement is true concerning a Variable Universal Life policy? - correct answer ✅Policyowner controls where the investment will go and selects the amount of the premium payment When must insurable interest be present in order for a life insurance policy to be valid - correct answer ✅At the time of application If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of? - correct answer ✅insured When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - correct answer ✅insurable interest in the proposed insured Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - correct answer ✅representations The part of a life insurance policy guaranteed to be true is called a(n) - correct answer ✅Warranty
Exam Questions And Answers
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? - correct answer ✅Primary carrier The reason for a business having a Business Overhead Expense Disability Plan is to cover - correct answer ✅fixed business expense 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 - correct answer ✅Waiting period A medical care provider which typically delivers health services at its own local medical facility is known as a - correct answer ✅Health maintenance organization Which of the following BEST describes how a Preferred Provider Organization is less restrictive than a Health Maintenance Organization?
- correct answer ✅More physicians to choose from Medicare is intended for all of the following groups EXCEPT - correct answer ✅full time students
Exam Questions And Answers
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 - correct answer ✅$3, 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 deducitble - correct answer ✅Carryover Provision With a Basic Medical Expense policy, what does the hospitalization expense cover - correct answer ✅Hospital room and board 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 - correct answer ✅Coinsurance In Major Medical Expense policies, what is the intent of a Stop Loss provision - correct answer ✅Limits an insured's out-of-pocket medical expenses Which of the following BEST describes a Hospital Indemnity policy? - correct answer ✅Coverage that pays a stated amount per day of a covered hospitalization
Exam Questions And Answers
For which of the following expenses does a Basic Hospital policy pay - correct answer ✅Hospital room and board Which of the following costs would a Basic Hospital/Surgical policy likely cover - correct answer ✅Surgically removing a facial birthmark Deductibles are used in health policies to lower - correct answer ✅Overused of medical services Basic Hospital and Surgical policy benefits are - correct answer ✅lower than the actual expenses incurred Which of the following will a Long Term Care plan typically provide benefits for - correct answer ✅home health care Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? - correct answer ✅Grace period According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? - correct answer ✅Monthly
Exam Questions And Answers
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? - correct answer ✅Claim will be paid and coverage will remain in force 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 - correct answer ✅Reinstatement 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 - correct answer ✅The insured 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? - correct answer ✅Recurrent Disability
Exam Questions And Answers
T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? - correct answer ✅Less than $5,000 per month benefit regardless of the cause Which parts of a life insurance policy are guaranteed to be true? - correct answer ✅Warranty 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 - correct answer ✅P Only 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? - correct answer ✅Decreasing term policy Decreasing term policy - correct answer ✅A life insurance policy written for a specified period of time with a death benefit that changes regularly according to a schedule is a decreasing term policy. P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a
