State Insurance License Exam Quiz!
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- 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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