Insurance Exam Questions and answers. 100% Accurate, 2022/2023.

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Insurance Exam Questions and answers. 100% Accurate, 2022/2023. With a Straight Life policy, what happens if the insured lives to age 100 - ✔✔The policy matures and the cash value is paid t... o the insured. Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within - ✔✔90 days. What is the maximum period of coverage under COBRA? - ✔✔36 months An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? - ✔✔The surviving beneficiary will continue receiving 2/3 of the benefit paid when the insured was alive. What percentage of individually-owned disability income is taxable? - ✔✔0% How are the variable annuities regulated? - ✔✔By state and federal agencies An insured committed suicide 6 months after his life insurance policy was issued. The insurer will - ✔✔Refund the premiums paid. Which of the following conditions would a disability income policy most likely NOT require in order to qualify for benefits? - ✔✔A specified income status prior to the disability In Pennsylvania, a "pre-existing condition" is defined as a disease or condition for which medical attention was received at least - ✔✔90 days prior to the effective date of coverage. An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan? - ✔✔2 years After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true? - ✔✔By law, the new, individual policy must provide the same benefits as the group insurance policy. Amanda is scheduled for a root canal. Which type of treatment is this? - ✔✔Endodontics Which of the following is deemed to be consideration on the part of the applicant, in respect to the Consideration Clause? - ✔✔Payment of premium As it pertains to group health insurance, COBRA stipulates that - ✔✔Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense. Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income? - ✔✔Income period What of the following must an alien insurer obtain in order to transact insurance within a given state? - ✔✔Certificate of Authority An applicant is discussing his options for Medicare supplement coverage with his agent. He is eligible for the Medicare supplement plans. What is the insurance company obligated to do? - ✔✔Offer the supplement policy on a guaranteed issue basis The paid-up addition option uses the dividend - ✔✔To purchase a smaller amount of the same type of insurance as the original policy. Which of the following is true regarding a term health policy? - ✔✔It is nonrenewable. Which of the following is true regarding benefits paid to disabled employees? - ✔✔They may be subject to taxation if the premium was paid by the employer. All of the following are differences between individual and group health insurance EXCEPT - ✔✔Individual insurance does not require medical examinations, while group insurance does require medical examinations. Your client owns a Market Value Adjusted Annuity. In order to pay for a series of large, unexpected medical bills, he decides to surrender his policy prematurely. Which of the following will determine the penalty that that annuity owner will have to pay? - ✔✔Current interest rate at the time of surrender For an individual who is eligible for Medicare at age 65, and who is still employed and covered under the employer's plan, which of the following is true? - ✔✔The employer plan is primary coverage, and Medicare is secondary coverage Which of the following expenses is NOT covered by a health insurance policy? - ✔✔Funeral According to the incontestability provision, which of the following is a reason an insurer can deny a claim on a policy that has been in force for 2 years? - ✔✔Insured stopped paying premiums A 12-year-old child applies for a life insurance policy. The applicant excels in school and leads a very healthy lifestyle. What risk classification would this applicant most likely receive? - ✔✔Declined All of the following are characteristics of a Major Medical Expense policy EXCEPT - ✔✔Blanket coverage. Which of the following is NOT the purpose of HIPAA? - ✔✔To provide immediate coverage to new employees who had been previously covered for 18 months Which provision states that the insurance company must pay Medical Expense claims immediately? - ✔✔Time of Payment of Claims An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged a $100 per day. How much will the insurance company pay? - ✔✔$120 a day Pete has a major medical policy with a $500 deductible and a co-insurance clause of 80/20. If he incurs medical expenses of $4,000, the insurer would pay - ✔✔$2,800. The death protection component of Universal Life Insurance is always - ✔✔Annually Renewable Term What would be considered a disadvantage of owning a fixed annuity? - ✔✔Decrease in purchasing power of the benefit in times of inflation [Show More]

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