PHP Agency Licensing Prep Quiz

200 Questions | By Tnellsworth | Last updated: Nov 1, 2017 | Total Attempts: 8432

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This quiz will test your insurance topic knowledge after studying on your own or taking online classes that may be mandatory in your state. Ready? Let's begin!

Questions and Answers

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.
  
  Elimination
- B.
  
  Exclusion
- C.
  
  Limitation
- D.
  
  Exception
3.

Insurance benefits NOT covered due to an act of war are
- A.
  
  Excluded by the insurer
- B.
  
  Assigned to a reinsurer
- C.
  
  Given a longer probationary period
- D.
  
  Charged a higher premium
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.
  
  The full face amount
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.
  
  Misrepresentation
- B.
  
  Exclusion
- C.
  
  Collateral assignment
- D.
  
  Concealment
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.
  
  Grace Period
- B.
  
  Consideration
- C.
  
  Waiver of Premium
- D.
  
  Reinstatement
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.
  
  Deny the claim
- 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.
  
  Claim will be denied
- 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.
  
  Full face amount
12.

Monthly-premium Individual health insurance policies must provide a grace period of at least
- A.
  
  7 days
- B.
  
  10 days
- C.
  
  14 days
- D.
  
  21 days
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.
  
  7 days
- B.
  
  10 days
- C.
  
  20 days
- D.
  
  31 days
14.

Which of the following provisions is NOT required in HMO contracts/certificates?
- A.
  
  Enrollment
- B.
  
  Rates shall not be excessive
- C.
  
  No pre-existing exclusions for children
- D.
  
  Seven-day grace period
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.
  
  Insuring clause
- B.
  
  Usual, Customary, and Reasonable clause
- C.
  
  Consideration clause
- D.
  
  Benefit clause
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.
  
  Consideration clause
- C.
  
  Insuring agreement
- D.
  
  Assignment agreement
18.

The Consideration clause in an insurance policy indicates that a policy owner's consideration consists of a completed application and
- A.
  
  The initial premium
- B.
  
  Agreeing to a physical examination
- C.
  
  Delivery of policy
- D.
  
  disclosure of any medical conditions
19.

The Consideration clause in an insurance contract contains what pertinent information?
- A.
  
  Summary of benefits
- B.
  
  Offer and acceptance
- C.
  
  Entire Contract
- 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.
  
  Entire Contract clause
- B.
  
  MIB clause
- C.
  
  Insuring clause
- D.
  
  Consideration clause
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.
  
  Consideration
- B.
  
  Entire Contract
- C.
  
  Free-look
- D.
  
  Insuring
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.
  
  Insuring clause
- C.
  
  Time Limit on Certain Defense provision
- D.
  
  Legal Contract clause
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.
  
  Reinstatement
- C.
  
  Entire Contract
- D.
  
  Change of Beneficiary
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.
  
  Policy Exclusion
- B.
  
  Incontestable
- C.
  
  Entire Contract
- D.
  
  Assignment
25.

A life insurance policy that provides a policyowner with cash value along with a level face amount is called
- A.
  
  Whole life
- B.
  
  Level term
- C.
  
  Credit life
- D.
  
  Ordinary life