Exam 20 Wrong Answers

Question 1

All of the following are correct about the required provisions of a health insurance policy except

Answer 1

A reinstated policy provides immediate coverage for an illness

Question 2

Which of the following groups seeking group health insurance would represent a bad risk for underwriters?

Answer 2

A group that changes insurance annually

Question 3

A participating insurance policy may do which of the following?

Answer 3

Pay dividends to the policy owner

Question 4

The paid up addition option uses the dividend

Answer 4

To purchase a smaller amount of the same type of insurance as the original policy

Question 5

Partners in a business enter into a buy sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance may be used to fund this agreement?

Answer 5

Any form of life insurance

Question 6

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter?

Answer 6

30

Question 7

Under which plan does preventative dental treatment not apply toward the deductible?

Answer 7

Nonscheduled

Question 8

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

Answer 8

One year term option

Question 9

Which of the following is true regarding a term health policy?

Answer 9

It is nonrenewable

Question 10

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

Answer 10

5 days

Question 11

What is the purpose of coinsurance provisions?

Answer 11

To help the insurance company prevent overutilization of the policy

Question 12

Which of the following riders would not cause the death benefit to increase?

Answer 12

Payor benefit rider

Question 13

Which of the following is true of a children’s rider added to an insured’s permanent life insurance policy?

Answer 13

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age

Question 14

An applicant is considered to be high risk, but not so much that the insurer wants to deny coverage. Which of the following is not true?

Answer 14

The insurer will issue a conditional coverage

Question 15

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Answer 15

Waiver of premium

Question 16

What option allows the insured to periodically increase benefit levels without providing evidence of insurability?

Answer 16

Guarantee of insurability

Question 17

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Answer 17

Guaranteed insurability option

Question 18

While repairing the roof of his house an insured accidentally falls off and breaks his arm and sustains a head injury that suits in total blindness of both eyes. His policy contains an Accidental Death & Dismemberment rider. What is the extent of benefits that he will receive?

Answer 18

Principal Sum

Question 19

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

Answer 19

Parts A and B of Medicare

Question 20

How are contributions to a tax sheltered annuity treated with regards to taxation?

Answer 20

They are not included as income for the employee, but are taxable upon distribution

Question 21

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Answer 21

Nothing, the payments will cease

Question 22

Which of the following methods of calculating the amount of life insurance needed takes into account the insured’s wages, years until retirement and inflation?

Answer 22

Human life value approach

Question 23

Which of the following explains the policyowner’s right to change beneficiaries choose options and receive proceeds of a policy?

Answer 23

Owner’s rights

Question 24

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

Answer 24

Prepaid plan

Question 25

The minimum interest rate on an equity indexed annuity is often based on

Answer 25

An index like Standard & Poors 500

Question 26

All of the following are characteristics of a group life insurance plan except

Answer 26

There is a requirement to prove insurability on the part of the participants