Practice Exam

Question 1

What is included along with illustrations used to sell life insurance?

Answer 1

• Orginal death benefit
  -Name of the insurer
• Rating information

Question 2

Medical Information Bureau:

Answer 2

• MIB information is reported to underwriter in coded form
• MIB reports contain previous insurance information
• Insurers may not refuse to accept an application solely due to information in an MIB report

Question 3

The interest earned on policy dividends is:

Answer 3

Taxable

Question 4

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

Answer 4

A full death benefit

Question 5

If an agent wishes to sell variable life policies, what license must the agent obtain?

Answer 5

Securities

Question 6

Can an individual who belongs to a POS plan use an out of network physician?

Answer 6

Yes, and they may use any preferred physician, even if not part of the HMO

Question 7

Hazzrd is best defined as:

Answer 7

Something that increases the risk of loss

Question 8

Who will be affected by the share of cost requirement for Medi-Cal?

Answer 8

Individuals whose income exceed the Medi-Cal limit

Question 9

Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured’s accidental death?

Answer 9

Principal sum

Question 10

An underwriter may obtain information on an applicants hobbies, financial status, and habts by ordering a(an):

Answer 10

Inspection report

Question 11

Regarding the taxation of Business Overhead policies:

Answer 11

Premiums are deductible, and benefits are taxed