Health and Life Practice Questions MCQs

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All of the following are reasons to buy term insurance except






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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?






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Short term policies have a benefit period of how long?






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If an employee who has a group policy leaves his job, what type of health insurance is guaranteed to him?






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Which of the following is part of the application?






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Which of these applies to a standard risk classification?






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What is a characteristic of term life insurance?






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What is a characteristic of adjustable life?






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What is a per capita beneficiary?






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A type of short term insurance is






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Which of the following is not an exclusion under a health policy?






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What is the type of insurance which pays for workers hurt in the course and scope of duty?






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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...






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Which type of life insurance is considered to be more risky based on its investment component?






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Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors can include:






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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...






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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...






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Term life insurance should always be used in buy/sell agreements




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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...






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What is the most common component in all life insurance policies?






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Permanent life insurance policies always have two components. What are they? I. death benefit II. cash value III. living benefit IV. conversion be...






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A beneficiary on a life insurance policy will receive what value upon the death of the insured?






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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...






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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?






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Living benefits on a life insurance policy can be typically be accessed via:






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The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be _________...






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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...






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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...






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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...






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The components of a long-term care insurance policy include all of the following EXCEPT:






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When constructing a major medical insurance policy, several criteria must be established, including:






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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...






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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 ...






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A _______ is the amount that an insured person is expected to pay for a medical expense at the time of the visit.






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The "deductible" in a long-term care insurance policy is referred to as the ___________.






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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 _...






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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...






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As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefits triggers for the policy holder in ter...






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Social security should be considered one's primary source of disability income coverage.




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Which of the below statements is FALSE concerning a Modified Endowment Contract (MEC)?






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How is Social Security funded?






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If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is






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All of the following benefits are available under Social Security EXCEPT






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What is the main purpose of the seven-pay test?






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Social Security is funded by a payroll tax imposed on a percentage of an employee's income. This percentage is called:






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Jane is eligible for full death, retirement, and disability benefits under Social Security. Her worker status with Social Security is






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The minimum number of credits required for partially insured status is






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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 ...






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Which of the following is INCORRECT concerning a noncontributory group plan?






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If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?






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Which of the following is an IRS qualified retirement program for self-employed?






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Death benefits payable to a beneficiary under a life insurance policy are generally






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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






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A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then






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Who is a third-party owner?






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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...






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Which of the following is NOT true regarding a nonqualified retirement plan?






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Employer contributions made to a qualified plan






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All of the following are examples of third-party ownership of a life insurance policy EXCEPT






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What is the official name for the Social Security program?






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The maximum the Insurance guaranty association will pay to an individual for life insurance death benefit is






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How is the insurance guaranty association funded?






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Which of the following was created to protect policyowners, insureds and beneficiaries under insurance contracts when insurers fail to perform contrac...






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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






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How many days does a producer have to remit the collected premiums to the insurer?






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What are the penalties for the first, second and any subsequent violation for the New Jersey fraud prevention act, respectively?






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How long must producers and insurers maintain records of management of funds for insurance policies?






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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...






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An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen?






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Which of the following insurers are owned by stockholders who have the usual rights ownership, including the right of voting?






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Which of the following would most likely NOT be required to complete continuing education hours in this state?






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In choosing an insurance business name, which of the following would be allowed?






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A licensed insurance producer may request a waiver of license renewal procedures under any of the following circumstances EXCEPT






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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...






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A participating insurance policy may do which of the following?






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All else being equal, which of the following will NOT be considered unfair discrimination by insurers?






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What significance did Paul vs. Virginia have on the insurance industry?






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If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within






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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...






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What significance did US vs. South-Eastern Underwriters have on the insurance industry?






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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?






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Which of the following is NOT considered a misrepresentation as it pertains to unfair trace practices?






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All the following professional designations are recognized by the department as acceptable substitutes for education and examination requirements EXCE...






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Which of the following types of insurance policies is most commonly used in credit life insurance?






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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 ...






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Which of the following is true about credit life insurance?






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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






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Which of the following is true regarding the insurance amount in a credit life policy?






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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?






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An insurer must keep all sales materials for at least how long?






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Which type of misrepresentation persuades an insured, to his detriment, to cancel, lapse or switch policies from one to another?






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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?






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It is the responsibility of which of the following to make sure that an applicant/policyholder has a policy summary and buyer's guide?






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An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help establ...






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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...






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Proceeds form life insurance policies are protected from the beneficiary's debts under all of the following circumstances EXCEPT






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During replacement of life insurance, a replacing insurer must do which of the following?






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Which of the following scenarios would not be covered by insurance?






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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...






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During policy replacement, the replacing insurer must notify existing insurers within what time period?