Life, Accident, And Health Combo Exam

110 Questions | Total Attempts: 1634

SettingsSettingsSettings
Please wait...
Life Quizzes & Trivia

Questions and Answers
  • 1. 
    QUESTION ID 1: When an insured purchases insurance with the intention of incurring a loss and subsequently filing a claim, it is called a:
    • A. 

      Legal hazard

    • B. 

      Morale hazard

    • C. 

      Moral hazard

    • D. 

      Indemnity

  • 2. 
    QUESTION ID 2: An insurance company that is owned by its policyholders and can pay annual dividends to them is considered:
    • A. 

      Reciprocal exchange

    • B. 

      Mutual company

    • C. 

      Risk Retention Group

    • D. 

      Stock Company

  • 3. 
    QUESTION ID 3 : What are unincorporated groups of individuals termed as subscribers called?
    • A. 

      Large Insurers

    • B. 

      Mutual Insurers

    • C. 

      Reciprocal Insurers

    • D. 

      Risk Insurers

  • 4. 
    QUESTION ID 4: Within how many days of requesting an Investigative Consumer Report must an insurer notify the consumer in writing that the report will take place?
    • A. 

      14

    • B. 

      3

    • C. 

      5

    • D. 

      7

  • 5. 
    QUESTION ID 5: The implied authority of an agent is normally influenced by the ______authority of the agent.
    • A. 

      Professional

    • B. 

      Qualified

    • C. 

      Expressed

    • D. 

      Fiduciary

  • 6. 
    QUESTION ID 6: What report includes information about an applicant’s character, and includes interviews with neighbors or friends?
    • A. 

      Protection Report

    • B. 

      Investigative Consumer Report

    • C. 

      Consumer Report

    • D. 

      Agency Report

  • 7. 
    QUESTION ID 7: Large numbers of similar risks, describes which of the following terms?
    • A. 

      Loss

    • B. 

      Peril exclusion

    • C. 

      Homogeneous

    • D. 

      Sharing

  • 8. 
    QUESTION ID 691: Mike was under the influence of alcohol at the time his application was completed. Mike would not be issued a valid contract because the contract would not contain:
    • A. 

      Offer and acceptance

    • B. 

      Legal purpose

    • C. 

      A Competent party

    • D. 

      Consideration

  • 9. 
    QUESTION ID 9: Each of the following is a true statement describing insurance, except:  
    • A. 

      Insurance transfers risk from the insured to the insurer

    • B. 

      Insurance is used when covering Speculative Risk

    • C. 

      The payment of a small certain loss (the premium) is traded for the large uncertain possibility of loss (the claim)

    • D. 

      Uses the principle of Law of Large Numbers to help predict loss

  • 10. 
    QUESTION ID  10: Which would be eligible to obtain SGLI?  
    • A. 

      Small employers

    • B. 

      Military personnel

    • C. 

      The elderly

    • D. 

      Low income individuals and families

  • 11. 
    QUESTION ID 11: A Key Person Insurance Policy can pay for which of the following?  
    • A. 

      Costs associated with training a new replacement employee

    • B. 

      Hospital bills

    • C. 

      Loss of personal income

    • D. 

      Medicare

  • 12. 
    QUESTION ID 12: Which of the following is usually true of a participating Life insurance Policy?
    • A. 

      An attorney in fact manages the company

    • B. 

      May be converted to a term life policy

    • C. 

      Pays dividends to stockholders

    • D. 

      Pays dividends to policy owners

  • 13. 
    QUESTION ID 13: Mortality tables are statistical tables used by Life Insurance companies to help predict:
    • A. 

      Premium amounts in future years

    • B. 

      Unexpected losses

    • C. 

      The probability of diseases for specific groups of individuals

    • D. 

      Life expectancy and the death rates for specific groups of individuals

  • 14. 
    QUESTION ID 14: Life insurance premiums are determined by several factors pertaining to the insured, including age, occupation and:
    • A. 

      Location of residence

    • B. 

      Number of children

    • C. 

      Avocation

    • D. 

      Marital status

  • 15. 
    QUESTION ID 15: Which of the following is the term used for the inability to perform at least two Activities of Daily Living?
    • A. 

      Type II Disability

    • B. 

      Type I Disability

    • C. 

      Chronically ill

    • D. 

      Terminally ill

  • 16. 
    QUESTION ID 16: Which is the least expensive way to pay a premium?  
    • A. 

      Annually

    • B. 

      Semi-annually

    • C. 

      Quarterly

    • D. 

      Monthly

  • 17. 
    QUESTION ID 17: Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
    • A. 

      The Key Person is the owner and the employer is the beneficiary

    • B. 

      The employer is the owner and beneficiary

    • C. 

      The employer is the owner and the Key Person is the beneficiary

    • D. 

      The Key Person is the owner and beneficiary

  • 18. 
    QUESTION ID 18: Richard becomes angry when his insurer asks for his mortgage expenses when attempting to determine the Human Value of his Life Insurance Policy. What should Richard do?
    • A. 

      Ask that this information be omitted

    • B. 

      Report the insurer to the Department of Insurance

    • C. 

      Sue the insurer

    • D. 

      Answer the question, since it’s required for Life underwriting

  • 19. 
    QUESTION ID 19: When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT:
    • A. 

      Obtain from the producer a list of the applicant’s contracts to be replaced

    • B. 

      Include a policy summary on the proposed Life Insurance in the communication with the existing company

    • C. 

      Provide a copy of the Important Notice Regarding Replacement of Life insurance to the applicant

    • D. 

      Send the existing insurance company a written notice of replacement

  • 20. 
    QUESTION ID 20: In which part of the application would I find information on an applicant’s medical background?
    • A. 

      Agent’s Report

    • B. 

      Part 1

    • C. 

      Part 3

    • D. 

      Part 2

  • 21. 
    QUESTION ID 21: What does “liquidity” refer to in a life insurance policy?  
    • A. 

      The insured is receiving payments each month in retirement

    • B. 

      The policy owner receives dividend checks each year

    • C. 

      Cash values can be borrowed at any time

    • D. 

      The death benefit replaces the assets that would have accumulated if the insured had not died

  • 22. 
    QUESTION ID 22: Key Person Life Insurance does NOT reimburse a company for which of the following?
    • A. 

      For a loss of leadership resulting from a key person’s death.

    • B. 

      For a reduction of profits resulting from a key person’s death.

    • C. 

      For increased pension liability resulting from a key person’s death.

    • D. 

      For a loss of previous business results from a key person’s death.

  • 23. 
    QUESTION ID 23: Which is generally true regarding insurered's who have earned preferred status?
    • A. 

      They can borrow higher amounts from their policies

    • B. 

      They can decide when to pay their monthly premiums

    • C. 

      They keep a higher percentage of any interest earned on their policies

    • D. 

      Their premiums are lower.

  • 24. 
    QUESTION ID 24: Within how many months must a person be expected to die from a sickness in order to be classified as “terminally ill”?
    • A. 

      3

    • B. 

      24

    • C. 

      6

    • D. 

      12

  • 25. 
    QUESTION ID 25: Which of the following allows the policy holder to “dump” in additional funds to shorten the premium paying period?
    • A. 

      Indeterminate

    • B. 

      Interest Sensitive

    • C. 

      Limited Payment

    • D. 

      Continuous Premium