ACAMS Practice Questions
Accounting Cycle and Classifying Accounts
Accounting For Managers
Accounting for Merchandising Activities
Accounting for Pensions
Accounting Information Systems
Activity Based Costing
Adjusting Accounts for Financial Statements
Advanced Business Economics
Advertising and Public Relations
Advertising and Sales Promotion
An Overview of International Business
Analysis and Forecasting Techniques
Analyzing and Recording Transactions
Asset Demand and Supply under Uncertainty
Auditing and Attestation
Behavioral and Allied Sciences
Bonds and Long Term Notes Payable
Business Analytics & Technology Management Chapter 2
Business Analytics & Technology Management Chapter 3
Business Analytics & Technology Management Chapter 4
Business Analytics & Technology Management Chapter 5
Business Analytics & Technology Management Chapter 6
Business and Company Law
Business Ethics and Governance
Business Ethics Exam
Business Law Study guide
Business Organisations and Environment
Business organization and systems
Business Process Performance
California Real Estate
Capital Budgeting and Managerial Decisions
Changes in Accounting Principles
Changing Marketing Environment
Consolidated Financial Statements
Corporate and Business Law
Cost Accounting Final exam
Cost Accumulation Systems
Cost Allocation Techniques
Cost and Managerial Accounting
Cost of Capital
Cost Terms and Classifications
Cost Volume Profit Analysis
Currency Exchange Rates
Customer Relationships and Value
CVP Analysis and Marginal Analysis
Debt and Bankruptcy
Decision Makers Household Sector
Demand for Money
Derivative Instruments and Hedging Activities
Dividends, Shares, and Income
Employee Training and Development
Environments of Business
Essence of Management
Ethical and Professional Standards
Ethics and Social Responsibility
Ethics for Management Accountants
External Financial Statements and Revenue Recognition
Federal Securities Acts
Financial and the Nonfinancial Sectors
Financial Decision Making
Financial Intermediaries and Financial Markets
Financial Markets and Securities Offerings
Financial Statements and Accounting Transactions
Flexible Budgets and Standard Costs
Florida Real Estate MCQs
Fundamental Accounting Principles
Global Marketing and World Trade
Governmental Accounting State and Local
Health and Life Comprehensive Exam
Health and Life Practice Questions
Human Resource Management
Human Resource Management HRM
Human Resource Planning
Importance of Business Economics
Insurance and Risk Management
Insurance License Texas Life and Health
Integrated Marketing Communications and Direct Marketing
Interactive Marketing and Electronic Commerce
Internal Auditing and Systems Controls
Internal Control and Cash
Interpersonal and Organizational Communication
Introduction to Business
Introduction to Human Resource Management
Introduction to Human Resources Assessment
Investment Risk and Portfolio Management
Job Order Costing
Life and Health Insurance
Life Insurance Basics
Life Insurance Policies
Life Insurance Policy
Long Term Investment
Long Term Securities
Management and Cost Accounting
Managerial Accounting Concepts and Principles
Managing Organizational Change
Managing Production and Operations
Managing Products and Brands
Market Segmentation Targeting and Positioning
Marketing and Corporate Strategies
Marketing Channels and Wholesaling
Master Budgets and Planning
Mergers and Acquisitions
Money and Banking
Not For Profit Accounting
Organization and Operation of Corporations
Organizational Behavior Essentials
Organizational Markets and Buyer Behaviour
Organizational Structure and Design
Personal Selling and Sales Management
Principles and Practices of Management
Production and Operations Management
Profitability Analysis and Analytical Issues
Profitability Analysis and Decentralization
Property Plant and Equipment
Reporting and Analyzing Cash Flows
Reporting and Analyzing Receivables
Responsibility Accounting and Performance Measures
Risk and Procedures for Control
Service Department Costing
Short Term Financing
Short Term Investment
Standard Costs and Variance Analysis
State Health Insurance
Statement of Cash Flow
Statement of Comprehensive Income
Statement of Financial Position
Stock Market and Stock Prices
Strategic Marketing Process
Structure of Interest Rates
Supply Chain and Logistics Management
System Analysis and Design
Texas Real Estate
The Management Challenge
Total Quality Management
Understanding Exchange Rates
Understanding Interest Rates
Understanding Interest Rates Determinants
Health and Life Practice Questions
Health and Life Practice Questions MCQs
All of the following are reasons to buy term insurance except
When an insured person receives a health insurance policy he has how many days to review and ask for a return of his/her premiums?
Short term policies have a benefit period of how long?
13 weeks to 104 weeks
24 weeks to 120 weeks
12 weeks to 52 weeks
15 weeks to 130 weeks
If an employee who has a group policy leaves his job, what type of health insurance is guaranteed to him?
The company continues to pay insurance
The employee buys an individual plan
Which of the following is part of the application?
attending physician report
medical information bureau
Which of these applies to a standard risk classification?
uses mortality table
fixes additional charge to premium
a lien is placed against the policy to reduce amount of insurance
rates person on age, health, habit and occupation
What is a characteristic of term life insurance?
it is written for a specified period of time
builds cash value
provides lifetime protection
What is a characteristic of adjustable life?
adjusts the face amount of the policy
has death benefit options
What is a per capita beneficiary?
a group beneficiary
when a person is too young to be a beneficiary
when the money is divided equally among the beneficiaries
when the beneficiary dies the proceed goes to heirs
A type of short term insurance is
Which of the following is not an exclusion under a health policy?
intentional self inflicted injury
What is the type of insurance which pays for workers hurt in the course and scope of duty?
Disability social security
Jack and his wife Lyn just purchased a home with a 15-year mortgage. Wanting to make sure that Lyn would be able to pay off the mortgage balance in th...
whole life insurance
term life insurance
variable life insurance
a viatical statement
Which type of life insurance is considered to be more risky based on its investment component?
lever term life insurance
whole life insurance
decreasing term life insurance
variable life insurance
Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors can include:
all of the above
Which of the following deals with a set of relationships where one person is authorized to act on behalf of another in order to create a legal relatio...
law of principles
law of agency
law of third parties
none of the above
All of the following can be considered life-changing events that could result in a change in the amount of life insurance coverage EXCEPT: I. birth o...
I, II, and III
II and III only
Term life insurance should always be used in buy/sell agreements
Corporate owned life insurance proceeds may be used for the following purposes: I. to find, replace, and train a new employee or executive II. to fu...
I and III only
All of the above
None of the above
What is the most common component in all life insurance policies?
waiver of premium
cost of living rider
Permanent life insurance policies always have two components. What are they? I. death benefit II. cash value III. living benefit IV. conversion be...
I, II, III and IV
I, II and III
II and IV
I and II
A beneficiary on a life insurance policy will receive what value upon the death of the insured?
John, who had a life insurance policy with a death benefit, died on August 31st, after a long bought with cancer. He had been hospitalized for a month...
No, the agent filed the paperwork within 30 days of the claim
Yes, the claim was not settled within 30 days of the claim
No, there are suspicions around the death of John
Yes, the claim was not settled within 15 days of the claim
Which of the following is a rider that allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?
Living benefits on a life insurance policy can be typically be accessed via:
both A and B
The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be _________...
contracts of adhesion
contracts of forbearance
contracts by regulation
contracts by law
A(n) in an insurance contract is a statement by the issuing insurance company that sets out the essential elements of insurance- to pay for losses cov...
Which of the following is not a form of health insurance? I. dental insurance II. vision insurance III. disability insurance IV. long-term care in...
All of the above
None of the above
A business client is looking for ways to decrease its monthly premiums. To get down to the premium level sought after by the company, the agent realiz...
The components of a long-term care insurance policy include all of the following EXCEPT:
When constructing a major medical insurance policy, several criteria must be established, including:
maximum out-of-pocket amount
both A and B only
As a marketing tool, Ted, a health insurance agent, offered to send an applicant and his wife on a weekend vacation to a local resort to induce the ap...
yes; it is perfectly acceptable
An agent is in need of generating business. He gets an idea of asking his client to let his policy lapse so that the agent can sell him a new similar ...
no; bait and switch
yes; it is perfectly acceptable
A _______ is the amount that an insured person is expected to pay for a medical expense at the time of the visit.
The "deductible" in a long-term care insurance policy is referred to as the ___________.
On a health insurance claim form, the exact procedures that were performed for the insured are represented by standard codes that are referred to as _...
What type of notice is used to show all of the services or supplies that were billed to Medicare during a 3-month period, what Medicare paid, and what...
As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefits triggers for the policy holder in ter...
Social security should be considered one's primary source of disability income coverage.
Which of the below statements is FALSE concerning a Modified Endowment Contract (MEC)?
MECs lose some of the favorable tax treatment of distributions
The Policyholder can receive distributions at any time without being penalized
Distributions before age 59.5 have a penalty tax of 10% on the gain in the policy
Policy loans are taxable distributions
How is Social Security funded?
taxes imposed on a worker’s earned income
state payroll taxes
federal grant money
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is
an accelerated policy
a multiplicative policy
a modified endowment contract
All of the following benefits are available under Social Security EXCEPT
old-age and retirement benefits
What is the main purpose of the seven-pay test?
it determines if the insurance policy is an MEC
it requires level premium payments for 7 years
it ensures that the policy benefits are paid out in 7 years
it guarantees interest minimum
Social Security is funded by a payroll tax imposed on a percentage of an employee's income. This percentage is called:
the taxable wage base
the income tax quotient
the federal tax basis
the earned income dividend
Jane is eligible for full death, retirement, and disability benefits under Social Security. Her worker status with Social Security is
The minimum number of credits required for partially insured status is
An employee quits his job on May 15 and doesn't covert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on ...
the insurer will pay a reduced death benefit to the beneficiary
the insurer will pay the death benefit minus one month' premium
the insurer will pay nothing because the employee has terminated his group insurance and hasn't started an individual one
the insurer will pay the full death benefit from the group policy to the beneficiary
Which of the following is INCORRECT concerning a noncontributory group plan?
the employer pays 100% of the premiums
the employees receive individual policies
they help to reduce adverse selection against the insurer
they require 100% employee participation
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
it is only taxable if the cash value exceeds the amount paid for premiums
it is not considered taxable
it is taxable only if it exceeds the amounts paid for premiums by 50%
it is automatically taxable
Which of the following is an IRS qualified retirement program for self-employed?
buy and sell agreement
Death benefits payable to a beneficiary under a life insurance policy are generally
subject to income taxation by the federal government
exempt from income taxation if under $7000
exempt from taxation if over $7000
not subject to income taxation by the federal government
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy this is called
a fraternal association
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then
the benefit received is tax free
the benefit is subject to the exclusionary rule
CIRS has no jurisdiction
The benefit is received as taxable income
Who is a third-party owner?
an irrevocable beneficiary
a policyowner who is not the insured
an insurer who issues a policy for two people
an employee in a group policy
Carol is insured under her employer's group life insurance plan at her place of employment. All of the following statements about her coverage ar...
should carol convert her coverage, the premium will be based upon her attained age
carol could choose what type of insurance her conversion policy provided (term or permanent)
carol would not need to prove insurability for a conversion policy
if carol quits, she may, within 31 days, request that her coverage be converted to an individual policy
Which of the following is NOT true regarding a nonqualified retirement plan?
earnings grow tax deferred
It needs IRS approval
Contributions are not currently tax deductible
It can discriminate in benefits and selecting participants
Employer contributions made to a qualified plan
are subject to vesting requirements
have no vesting requirement
are taxable as salary
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
an insured couple purchases a life insurance policy insuring the life of their grandson
a company purchases a life insurance policy on their manager who is an important part of the operation
when an insured purchased a new home, the insured made an absolute assignment of a life insurance policy to the mortgage company
an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
What is the official name for the Social Security program?
old age survivors disability insurance
social insurance program
defined benefit retirement insurance
qualified pension plan
The maximum the Insurance guaranty association will pay to an individual for life insurance death benefit is
How is the insurance guaranty association funded?
by the government
by it’s members- authorized insurers
by the department of insurance
Which of the following was created to protect policyowners, insureds and beneficiaries under insurance contracts when insurers fail to perform contrac...
new jersey life and health guaranty association
new jersey insurance consumer protectorate
new jersey insurance solvency association
new jersey consumer protection organization
The requirement that agents must account for all insurance funds collected, and are not permitted to comingle those funds with their own is known as
How many days does a producer have to remit the collected premiums to the insurer?
What are the penalties for the first, second and any subsequent violation for the New Jersey fraud prevention act, respectively?
5k, 10k, 15k
1k, 5k, 10k
10k, 15k, 20k
25k, 50k, 100k
How long must producers and insurers maintain records of management of funds for insurance policies?
1 year after the examination by the commissioner
3 years after opening an account
5 years after termination of coverage
Presenting any written or oral statement in support of or in opposition to a claim payment, while knowing that the statement contains false or mislead...
a violation of the unsatisfied claim and judgment fund law
a violation of the new jersey insurance fraud prevention act
a permissible act
grounds foe license revocation
An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen?
the claims will be paid by the state life and health guaranty association
the claims will be paid by the state dep of insurance
the insureds will not be paid
the claims will be paid by a nationally-based program
Which of the following insurers are owned by stockholders who have the usual rights ownership, including the right of voting?
Which of the following would most likely NOT be required to complete continuing education hours in this state?
In choosing an insurance business name, which of the following would be allowed?
a name which implies eligibility for individuals to whom coverage is not actually offered
a proper name which does not belong to any officers, stockholders, or executives
a name with the same pronunciation as a competing company, but a different spelling
a name with the same spelling as a competing company but a different pronunciation
A licensed insurance producer may request a waiver of license renewal procedures under any of the following circumstances EXCEPT
he has recently been confined to a wheelchair due to MS
he was injured in a car accident
he has been called into active duty
his renewal forms were lost in the mail
A licensee violates an insurance regulation. A hearing is held, and the person is found guilty. If this is the person's first offense, the penalt...
A participating insurance policy may do which of the following?
pay dividends to the policyowner
provide group coverage
pay dividends to the stockholder
require 8-% participation
All else being equal, which of the following will NOT be considered unfair discrimination by insurers?
assigning different risk classification to applicants based on ethnicity
discriminating in benefits and coverages based in the insured’s habits and lifestyle
charging applicants with similar health histories different premium rates based on their ethnicity
cancelling individual coverage based on insured's martial status
What significance did Paul vs. Virginia have on the insurance industry?
it was decided that insurance was interstate commerce and should be therefore regulated by the fed government
it was decided that insurance required separate federal regulatory agency from securities products
it was decided that insurance licenses should not be issued by the def gov and should instead be issued by individual states
it was decided that insurance was not interstate commerce and could not be regulated by the fed gov
If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within
6 months of exp
9 months of exp
12 months of exp
3 months of exp
If a violation of the new jersey insurance code were to occur, a cease and desist order and/or penalty may be issued. Who may issue a cease and desist...
department of banking and insurance
What significance did US vs. South-Eastern Underwriters have on the insurance industry?
it determined that insurance licenses should no longer be issued by individual states and should instead be issued by the federal gov
it reversed the decision of paul vs. Virginia determining that insurance is interstate commerce and should be regulated federally
it reversed the decision of paul vs Virginia determining that insurance is not interstate commerce and should not be regulated federally
it determined that insurance licenses should no longer be issued by the federal gov and should instead be issued by individual states
When doing business in this state an insurance company that is formed under the laws of another state is known as which type of insurer?
Which of the following is NOT considered a misrepresentation as it pertains to unfair trace practices?
exaggerating the benefits provided in the policy
stating that the competitors will arbitrarily increase their premiums each year
making comparisons between different policies
stating that the insurance policy is a share of stock
All the following professional designations are recognized by the department as acceptable substitutes for education and examination requirements EXCE...
professional insurance agent
chartered property/casualty underwriter
chartered financial consultant
chartered life underwriter
Which of the following types of insurance policies is most commonly used in credit life insurance?
equity indexed life
If a credit life policy lapses for non-payment before the debt is satisfied, within how many days must the creditor either refund the premium paid or ...
Which of the following is true about credit life insurance?
creditor is the insured
debtor is policy beneficiary
creditor is the policyowner
debtor is the annuitant
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
decreasing whole life
multiple protection insurance
Which of the following is true regarding the insurance amount in a credit life policy?
creditor can only insure debtor fir the amount owed
creditor may insure the debtor for an unlimited amount of coverage
allowable amount of coverage is determined by the state insurance commissioner
the amount of coverage can be greater than the amount owed
By how many days does the discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss?
An insurer must keep all sales materials for at least how long?
as long as the insurer remains in business
Which type of misrepresentation persuades an insured, to his detriment, to cancel, lapse or switch policies from one to another?
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
It is the responsibility of which of the following to make sure that an applicant/policyholder has a policy summary and buyer's guide?
department of banking and insurance
An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help establ...
if less than 2 years have passed since the policy issue date, it is acceptable for the application to be considered as evidence
state law prohibits applications form being used in litigation
applications can only be used in court cases if they are attached to or endorsed upon the issued policy
once the policy is issued, it is permissible to use the application in litigation, provided that the insured is notified
A person takes out a loan in order to pay off his house. He dies several years later, having paid off only a small portion of the debt. Which of the f...
the lender will not recover this money
the federal government will pay the balance to the lender
if the lender has credit insurance, this amount will be paid to the lender
the state government will pay the balance to the lender
Proceeds form life insurance policies are protected from the beneficiary's debts under all of the following circumstances EXCEPT
the amount of debt exceeds 50% of the policy's face value
there are no circumstances under which proceeds are protected from the beneficiary's debts
some of the premiums were paid in attempt to defraud creditors
the amount of debt exceeds the policy’s face value
During replacement of life insurance, a replacing insurer must do which of the following?
send a copy of the notice regarding replacement to the department of insurance
obtain a list of all life insurance policies that will be replaced
guarantee a replacement for each existing policy
designate a new producer for the replaced policy
Which of the following scenarios would not be covered by insurance?
client M purchases life insurance on herself prior to committing suicide
client P purchases an annuity as a savings vehicle for retirement
client F buys a life insurance policy on her husband who is the sole provider for her family so that she is taken care of if he dies
client E purchases an annuity to provide for her retirement needs as she reaches her mid 50s so that she can travel and take care of her grandchildren
In New Jersey, the public is protected by a notice of discontinuance when a policy is discontinued for nonpayment of premiums. When a policy is discon...
ceasing to collect premium payments from group participants unless the group policyholder remains fully responsible for the benefits
refund of premiums
written notice to the policyholder
a reminder of the date of discontinuance
During policy replacement, the replacing insurer must notify existing insurers within what time period?
5 business days
10 calendar days
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