State Insurance License Exam Quiz!

29 Questions | Total Attempts: 112

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State Insurance License Exam Quiz!

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Questions and Answers
  • 1. 
    How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?
    • A. 

      Immediately

    • B. 

      1 year

    • C. 

      2 years

    • D. 

      At age 65

  • 2. 
    What is the return of premium rider?
    • A. 

      An increasing amount of term insurance that always equals the total of premiums paid up to the current point

    • B. 

      A provision that allows the insured to cancel the policy in the first two years and have premiums refunded

    • C. 

      An increasing amount of term insurance that equals the cash value of the policy at any point in time

    • D. 

      A provision that states the insurer must return any premiums paid during the free-look period

  • 3. 
    In a home healthcare benefit, all of the following are eligible expenses EXCEPT
    • A. 

      Intermittent part-time nursing care;

    • B. 

      Physical, occupational, or speech therapy;

    • C. 

      Blood transfusions

    • D. 

      Medical social services;

  • 4. 
    All of the following are classifications of risk EXCEPT
    • A. 

       substandard

    • B. 

      Preferred

    • C. 

      Declined

    • D. 

      Non-nicotine

  • 5. 
    Which of the following is exempted from the incontestability provision in insurance policies?
    • A. 

      Fraudulent misstatements

    • B. 

      Pre-existing conditions

    • C. 

      Change in health

    • D. 

      Changes in the insurance code

  • 6. 
    A group conversion option may be used in all the following instances EXCEPT
    • A. 

       the termination of the master policy.

    • B. 

      Loss of coverage due to loss of employment.

    • C. 

      Loss of eligibility on the part of a class of insureds.

    • D. 

      A life-changing event, such as marriage, divorce, or childbirth.

  • 7. 
    Which of the following is characteristic of a non-qualified plan?
    • A. 

      Defined vesting schedule

    • B. 

      Plan established by the employer

    • C. 

      Plan does not meet federal guidelines for tax benefits

    • D. 

      Employer contributions are deductible business expenses

  • 8. 
    A producer who is acting as an agent is representing:
    • A. 

      The insured, the applicant and the beneficiary

    • B. 

      Always the insured

    • C. 

      The insured and the insurer

    • D. 

      Always the insurer

  • 9. 
    In order to be valid, a contract must be between individuals considered legally able to enter into an agreement. This principle is known as:
    • A. 

      Restricted persons

    • B. 

      Considerations

    • C. 

      Competent parties

    • D. 

      Agreement

  • 10. 
    A company that is licensed to sell insurance in a particular state is:
    • A. 

      A domiciled company

    • B. 

      A non admitted company

    • C. 

      An authorized company

    • D. 

      A foreign company that is licensed to sell insurance in a particular state is:

  • 11. 
    An insurance contract is an aleatory contract. This means:
    • A. 

      Equal value is not given by both parties to the contract

    • B. 

      The contract must be for a legal purpose

    • C. 

      Parties to the contract must have the legal capacity to enter into the contract

    • D. 

      Statements made in the application are guaranteed to be true in all respects

  • 12. 
    Legally speaking, a producer has a __________ duty when handling life insurance premiums and applications for an insurer.
    • A. 

      Fiduciary

    • B. 

      Undisputed

    • C. 

      Negotiated

    • D. 

      Professional

  • 13. 
    To address adverse selection what can an insurer legally do?
    • A. 

      Limit the amount of coverage issued

    • B. 

      Raise the premium higher than most people can afford to pay

    • C. 

      Establish and enforce sound underwriting practices

    • D. 

      Not offer policies to those over age 55

  • 14. 
    If an insured currently has a policy with a waiver of premium rider and should change to a more hazardous occupation, the insurance company.
    • A. 

      Void the policy

    • B. 

      Continue the waiver of premium rider

    • C. 

      Increase the premium

    • D. 

      Cancel the waiver of premium rider

  • 15. 
    Which of the following provides the basis for the benefit amount paid to an insured under a disability income rider?
    • A. 

      The length of time income payments are to be paid out

    • B. 

      The face amount of the policy

    • C. 

      The elimination period

    • D. 

      The amount of monthly benefit selected

  • 16. 
    With regard to the waiver of premium rider, after the disability a policyowner normally:
    • A. 

      Must prove insurability to continue the policy on an annual basis

    • B. 

      Must reapply for the insurance

    • C. 

      Need not repay the premiums paid by the company during disability

    • D. 

      Must repay the premiums paid by the company during disability

  • 17. 
    George, who has a group policy, may upon leaving his place of employment:
    • A. 

      Convert it to permanent insurance without proof of insurability, within a specified period

    • B. 

      May continue his current coverage with no change in premium

    • C. 

      May convert it to permanent insurance provided he does so within 90 days and can prove insurability

    • D. 

      Convert it to an individual term insurance plan, without proof of insurability

  • 18. 
    The tendency for poor risks to seek and be covered for insurance more than average risks is known as:
    • A. 

      Adverse hazard

    • B. 

      Adverse risk

    • C. 

      Adverse selection

    • D. 

      Adverse rating

  • 19. 
    The insurer's underwriter may find information about an applicant's moral character, hobbies, work and general reputation from a:
    • A. 

      Consumer Investigative Report

    • B. 

      Medical Examination

    • C. 

      Agent's Report

    • D. 

      Attending Physician Statement

  • 20. 
    If a premium is collected at the time of the application, the producer will issue a:
    • A. 

      Contestable receipt

    • B. 

      Guaranteed receipt

    • C. 

      Conditional receipt

    • D. 

      Sales receipt

  • 21. 
    Comprehensive dental plans usually provide:
    • A. 

      Non-routine dental care without any regard to deductibles or coinsurances

    • B. 

      Routine dental care services without deductibles or coinsurance

    • C. 

      Routine care without deductibles, but subject to coinsurance

    • D. 

      Routine care such as preventative care is provided after satisfying a required deductible

  • 22. 
    Under Workers' Compensation, a disability that is a permanent physical impairment leaving the individual incapable of performing the previous regular occupation, but capable of performing some other type of work,
    • A. 

      Residual disability

    • B. 

      Permanent partial disability

    • C. 

      Temporary disability

    • D. 

      Recurrent disability

  • 23. 
    What type of disability income policies are most likely used to cover only nonoccupational disability as opposed to both occupational and nonoccupational?
    • A. 

      Short-term disability policies

    • B. 

      Workers' Compensation

    • C. 

      Disability income rider to an individual life policy

    • D. 

      Long-term disability policies

  • 24. 
    With a Business Overhead Expense Policy, all of the following are claims that are covered, except:
    • A. 

      Employee labor

    • B. 

      The salary or profit of the business owner

    • C. 

      Utilities

    • D. 

      Office rent

  • 25. 
    The Medicare home health care benefit will provide for which of the following services?
    • A. 

      Hospitalization care

    • B. 

      Prescription drugs

    • C. 

      Groceries

    • D. 

      Medical supplies

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