1.
What did the Licensing Team say about studying for the state exam
A. 
You can pass without much studying - a friend of a friend said that... I think.
B. 
Study when you get a chance - no worries.
C. 
Make a study plan, take it seriously and pass the test ASAP!
D. 
Tests are over-rated. I can drive pretty well with out a driver license, so what’s the difference?
E. 
I heard Amour Noubarentz takes Compliance very seriously and it’s dangerous to piss him off.
2.
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
A. 
B. 
C. 
D. 
3.
Insurance benefits NOT covered due to an act of war are
A. 
B. 
C. 
Given a longer probationary period
D. 
4.
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?
A. 
Refund of premiums paid plus interest
B. 
Nothing, due to actively serving in the armed forces
C. 
Double the face amount because cause of death was accidental
D. 
5.
N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?
A. 
B. 
C. 
D. 
6.
What is the Suicide provision designed to do?
A. 
Decline an applicant who is contemplating suicide
B. 
Safeguard the insurer from an applicant who is contemplating suicide
C. 
Protect the insurer from ever paying a claim that results from suicide
D. 
Allows the insurer the option to pay a death benefit in the event of suicide
7.
With any insurance policy, what is the purpose of the Grace Period?
A. 
Gives the policyowner additional time to pay past due premiums
B. 
Gives the policyowner additional time to file a lawsuit
C. 
Gives the policyowner additional time to file a claim
D. 
Gives the policyowner additional time to provide proof of loss
8.
Which of the following provisions specifies how long a policyowner's insurance coverage will remain in effect if the policyowner does not pay the premium when it is due?
A. 
B. 
C. 
D. 
9.
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?
A. 
Collect premium from M's estate
B. 
C. 
Pay the face amount minus the past due premium
D. 
Subtract past due premium from cash value
10.
N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?
A. 
B. 
Claim will be paid in full
C. 
Claim will be partially paid
D. 
Claim will be decided by an arbitrator
11.
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?
A. 
Refund of all premiums paid, plus interest
B. 
Refund of all premiums paid
C. 
Full face amount minus any past due premiums
D. 
12.
Monthly-premium Individual health insurance policies must provide a grace period of at least
A. 
B. 
C. 
D. 
13.
An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision?
A. 
B. 
C. 
D. 
14.
Which of the following provisions is NOT required in HMO contracts/certificates?
A. 
B. 
Rates shall not be excessive
C. 
No pre-existing exclusions for children
D. 
15.
Which of the following statements describes the purpose of the Insuring clause in an insurance policy
A. 
Specifies the additional time given to pay past due premiums
B. 
States the scope and limits of the coverage
C. 
Specifies a claim will be paid immediately upon receipt of proof of loss
D. 
Prohibits the insured from suing the insurer for at least 60 days after filing a written proof of loss
16.
Which of the following insurance policy provisions specifies the benefits or services a policy will provide?
A. 
B. 
Usual, Customary, and Reasonable clause
C. 
D. 
17.
The agreement in an insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)
A. 
Entire Contract provision
B. 
C. 
D. 
18.
The Consideration clause in an insurance policy indicates that a policy owner's consideration consists of a completed application and
A. 
B. 
Agreeing to a physical examination
C. 
D. 
disclosure of any medical conditions
19.
The Consideration clause in an insurance contract contains what pertinent information?
A. 
B. 
C. 
D. 
Amount of premium payments and when they are due
20.
An insurance company receive‘s application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?
A. 
B. 
C. 
D. 
21.
Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract?
A. 
B. 
C. 
D. 
22.
When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the
A. 
Entire Contract provision
B. 
C. 
Time Limit on Certain Defense provision
D. 
23.
Which of the following policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions?
A. 
Time Limit on Certain Defenses
B. 
C. 
D. 
24.
Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?
A. 
B. 
C. 
D. 
25.
A life insurance policy that provides a policyowner with cash value along with a level face amount is called
A. 
B. 
C. 
D.