H and L

Question 1

Which of the following utilizes the annuity “exclusion ratio”?

a. Annuities

b. Major Medical

c. Retirement Endowment Contracts

d. Life Insurance

Answer 1

a. Annuities

Question 2

An insured is ready to retire. What product may be better than mutual funds but still not too risky?

a.
term life

b.
whole life

c.
variable universal life

d.
indexed universal life

Answer 2

d.
indexed universal life

Question 3

Which of the following would NOT be required to obtain a life insurance license?

a.
a person selling viatical settlements

b.
a person selling variable annuities

c.
a funeral director selling life insurance under $25,000 face amount to cover funerals (pre-need)

d.
a person selling life insurance to their family members

Answer 3

c.
a funeral director selling life insurance under $25,000 face amount to cover funerals (pre-need)

Question 4

J submits his application and premium on August 28th, the policy goes through underwriting on September 2nd and is delivered on September 6th. When J returns the policy on September 12th, what will most likely happen?

a.
Short rate cancellation occurs

b.
Pro-rata premiums are refunded

c.
Full premiums will be refunded

d.
The policy continues on due to the grace period

Answer 4

c.
Full premiums will be refunded

Question 5

Which of the following states that an applicant is entitled to receive in writing the results of an ordered consumer report?

a.
Fair Credit Reporting Act

b.
Fair Privacy Act

c.
Medical Information Bureau

d.
Legal Actions Clause

Answer 5

a.
Fair Credit Reporting Act

Question 6

What is the purpose of the Time Payment of Claims provision in a health insurance contract?

a.
determine who receives payment during a claim

b.
prevent the insurer from overpaying claims

c.
determine how long the insured can bring suit against the insurer

d.
prevent the insurer from delaying claims unnecessarily

Answer 6

d.
prevent the insurer from delaying claims unnecessarily