Life and Health Exam Questions

Card Set Information

Author:
schmidty427
ID:
217281
Filename:
Life and Health Exam Questions
Updated:
2013-05-02 16:20:10
Tags:
Insurance
Folders:

Description:
Life and Health ALL IN ONE quiz set
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user schmidty427 on FreezingBlue Flashcards. What would you like to do?


  1. If someone buys insurance they are doing which of the following with risk?
    Transfering
  2. The tendency for poorer risks to buy insurance is defined by which of the following?


    Adverse Selection
  3. In the contract of insurance the principal would be which of the following?
    The Insurer
  4. The authority a producer has based upon the public's perception of what he can do is which of the following?
    Apparent Authority
  5. Authority that is given to a producer either in writing or verbally is which of the following
    Expressed Authority
  6. Authority that is not formally
    communicated to a producer is which
    of the following
    Implied Authority
  7. Which of the following
    best defines the law of large
    numbers?
    A large group of similar risks
  8. a contract not only has to be for a
    legal purpose but it must also have what?
    Consideration
  9. a contract has an offer and an
    acceptance which of the following
    is also required?
    Consideration
  10. a producer will have all of the
    following duties except?
    make the final decision as to whether a risk is acceptable
  11. rating services are designed to do
    which of the following
    Verify the financial strength of the insurer
  12. the 2 types of risk are
    pure and speculative
  13. If an insured purposely gives a
    wrong answer on an application they
    have done which of the following
    Misrepresentation
  14. Which of the following would be an
    accurate description of the
    exchange of value that takes place
    during an insurance transaction
    Insurer makes a promise and the insured pays money
  15. Statements made by an insured on
    application are best described as?
    Representations
  16. The type of insurer which has
    shareholders is which of the
    following?
    Stock
  17. The type of insurer which pays
    dividends to its policyholders is?
    Mutual
  18. which of the following would
    not be considered a competent party?

    A. Intoxicated 35-year-old 
    B. The 35-year-old child of an insane
    C. An 18-year-old
    mother
    D. An 80-year-old who acts like a
    child
    A. Intoxicated 35 year old
    (this multiple choice question has been scrambled)
  19. A contract in which the insurer
    must perform certain duties is?
    Unilateral
  20. The concept in contract law which
    states that one party could gain an
    economic advantage over the other
    party based on the outcome of some
    unknown future event is which of
    the following?
    Aleatory
  21. The concept in contract law which
    states the receiver of the contract
    must accept or reject the contract
    in its entirety and that any
    ambiguity in the contract will go
    against the writer of the contract
    is known as which of the following?
    Adhesion
  22. The uncertainty of
    loss could best be described as
    which of the
    following?
    Risk
  23. A life insurance policy that is
    designed so that the death benefit
    will provide a lump sum of money to
    the survivors is doing which of the
    following?
    Estate Creation
  24. The human life approach to life
    insurance takes into account which
    of the following factors?
    Earning Years Left
  25. The premium mode of a life
    insurance policy affects which of
    the following?
    Frequency of premium payments
  26. A life insurance policy contract is
    considered to be in force when
    which of the following factors has
    taking place?
    Policy is issued and the premium was paid
  27. Which of the following would help
    the insurer have a better
    understanding of the
    applicant's character and
    behavior?
    The agent report
  28. If you bought a life insurance
    policy that covered you for a
    specified period of time and was
    for pure protection only you
    would've purchased which of the
    following?
    Level Term
  29. Insured purchases a five-year
    renewal term policy that has been
    in force for four years and 11
    months which of the following is
    true concerning the renewal of this
    policy
    Insured does NOT have to prove insurability
  30. A life insurance policy that will
    remain in force until the insured
    dies or turns age 100 and has a
    premium payment throughout the
    entire contract would be known as
    which of the following?
    Continuous Pay Whole Life Policy
  31. Which of the following is true
    concerning the premium payment on a
    universal life policy?
    The insurer separates the money into mortality costs and expenses
  32. In a key employee policy which of
    the following is true regarding the
    beneficiaries?
    The beneficiary is the employer only
  33. Which of the following statements
    accurately describes the cash value
    in an equity indexed policy?
    The interest rate is market driven
  34. Which of the following accurately
    describes the three factors that
    can be changed in an adjustable
    life policy?
    premium, death benefit, and type of insurance
  35. Which of the following accurately
    describes one of the benefits of
    group insurance?
    Eliminates Adverse Selection
  36. A life insurance policy where the
    death benefit is designed to pay
    for the ongoing bills of the
    beneficiaries would be described as
    which of the following?
    Estate conservation
  37. Which of the following would a
    producer give to an applicant if
    they were trying to give them
    something that was SPECIFIC to the
    contract they were about to buy
    A policy summary
  38. Which of the following policies
    would allow an insured to takeout a
    partial surrender?
    A universal life policy
  39. Which of the following is true
    concerning a renewal term policy?
    at renewal your insurance rates will go up
  40. A whole life policy where the
    premium payment does not run to the
    end of the contract would be known
    as which of the following?
    a limited pay whole life policy
  41. Which of the following policies as
    a flexible premium payment allows
    for partial surrender and allows
    for the insured to invest the money
    in a separate account
    Variable Whole Life
  42. Which of the following statements
    is not true when it comes to group
    life insurance?
    • Insurers limit group policies
    • because of an increase in adverse
    • selection
  43. If the insured purchased a whole
    life policy in which premium was
    given with the application and
    no more premium payments are
    necessary the insured purchased
    which of the following?
    Single Premium Policy
  44. Which of the following statements
    is true concerning renewal term?
    • The insured's ability to renew the
    • policy would be limited by a
    • specified age
  45. Which of the following factors
    would NOT be used when taking the
    needs approach to determining the
    death benefit
    Earning Years Left
  46. If an insured was going to replace
    one life insurance policy with
    another and informed the producer,
    the producer would then have to
    notify which of the following?
    The producers own insurer
  47. If a producer was using the needs
    approach to determine how much
    death benefit an insured would need
    which of the following factors
    would not be considered?
    Vehicle Payments
  48. Which of the following is true
    concerning insurable interest in
    life insurance policies?
    Insurable interest needs to exist only at the time of application.
  49. If an insured did not meet all of
    the underwriting requirements but
    the insurance company still issued
    the policy the insured would be
    which of the following
    substandard risk
  50. Which of the following is a true
    statement concerning credit life?
    It has no conversion privilege
  51. How many days after a group credit
    life policy has been approved does
    the insurer have to give the
    insured a certificate?
    30 days
  52. Which of the following is a
    requirement of all insurers in the
    state of Michigan when issuing a
    universal life policy?
    Issue an annual report on the policy
  53. If the isurance company is going to
    waive the minimum premium on a
    universal life policy, that is the
    costs of mortality and expenses,
    then this would be known as which
    of the following?
    waiver of cost
  54. Which of the following is true
    concerning a collateral assignment
    in a life insurance policy?
    it lasts throughout the length of the term
  55. The period of time after the
    premium is due but before the
    policy lapses is known as which of
    the following
    grace period
  56. Which of the following is not true
    regarding the reinstatement period
    of a life insurance policy
    the insured must apply for a new policy
  57. Which of the following is true
    regarding an irrevocable
    beneficiary
    • In order to make any changes the
    • owner must get the written consent
    • of the irrevocable beneficiary
  58. If they life insurance policy
    contained the common disaster
    clause in an accident occurred in
    which both the insured and the
    primary beneficiary were dead which
    of the following statements would
    then be true?
    The contingent beneficiaries would receive the death benefit.
  59. If the proceeds of a life insurance
    policy were paid all at one time
    this would be known as which of the
    following settlement options?
    Lump Sum
  60. Which of the following is true
    concerning a policy loan from a
    whole life policy?
    The insured has no obligation to repay the loan.
  61. All of the following are true
    regarding the reduced paid-up
    nonforfeiture option except
    the death benefit stays the same
  62. The settlement option where the
    death benefit remains intact but
    the beneficiary receives monthly
    benefits would be known as which of
    the following?
    Interest Only
  63. All of the following are
    nonforfeiture options except
    paid-up addition
  64. With an insured who exercises the cash
    only nonforfeiture option which of
    the following is true?
    only the gains are taxed
  65. Which of the following accurately
    describes the dividend paid by
    mutual insurance company?
    It is a return of premium
  66. A payor benefit would be found in
    which of the following life
    insurance policies?
    Juvenile Life Policy
  67. All of the following are triggers
    for the accelerated death benefit
    except?
    The insureds death
  68. Which of the following would a
    husband use to add his wife onto
    his life insurance policy?
    Spouse Rider
  69. Which of the following type of
    insurance would be used to add an
    additional insured on to a life
    insurance policy?
    Term Insurance
  70. The insured has the accidental
    death and dismemberment rider added
    to their life insurance policy. The
    insured dies of a heart attack
    which of the following statements
    is true?
    The beneficiaries will receive the death benefit only.
  71. Which of the following is the
    reason for the cost-of-living rider
    allows the death benefit to keep up with inflation
  72. Which of the following dividend
    options allows for the insured to
    pay a lower amount of premium in
    the coming year
    reduced next years premium option
  73. The automatic premium loan
    rider accomplishes which of the
    following?
    Automatic Premium Loan Rider helps to avoid unintentional lapses in the policy
  74. If an insured was unable to pay
    their premium because of the
    sickness or accident which of the
    following riders would pay for
    their stay in a long-term nursing
    care facility
    Disability Income Rider
  75. Which of the following best
    describes when benefits are paid
    out of an annuity?
    The annuity period
  76. During the accumulation period the
    owner of an annuity would be known
    as which of the following?
    A policy owner
  77. In a qualified plan which of the
    following describes the benefit to
    the employer?
    the employer gets to write off any benefits provided
  78. which is a characteristic of a fixed annuity?
    the payouts are level
  79. If someone makes regular premium
    payments into their annuity they
    have just purchased which of the
    following annuities?
    A deferred annuity
  80. Which of the following is a true
    statement concerning the taxation
    of an annuity?
    • Taxes are only paid during the
    • annuity period and are only do on
    • the gains.
  81. Which of the following is not a use
    of an annuity?
    Provide a tax-free shelter for your money.
  82. Which of the following is true
    concerning an annuity?
    • The policy owner may cash in the
    • annuity during the accumulation
    • phase.
  83. If someone made regular premium
    payments into their annuity and
    then had the annuity paying for the
    rest of their life with a minimum
    rate of interest being guaranteed
    and no one else being a part of it
    this person would've purchased
    which of the following annuities
    • A level premium deferred fixed
    • annuity
  84. When surrendering a whole life
    policy for its cash value which of
    the following statements is true
    concerning the taxation of the cash?
    Taxes are due on the interest earned.
  85. When will the owner of a
    traditional IRA pay taxes on their
    IRA
    Just when the benefits are withdrawn
  86. Which of the following statements
    is not true regarding a Roth
    IRA?
    Premiums paid in are tax-deductible
  87. Which of the following statements
    is true concerning the death
    benefit in a life insurance policy
    All death benefits are paid tax-free
  88. Which of the following is not
    allowed under IRS code section 1035
    policy exchanges?
    An annuity for a life policy
  89. On many days does someone have for
    an IRA rollover?
    60 days
  90. Which of the following is not true
    concerning a qualified pension plan?
    • The employer derives no tax benefit
    • from a qualified plan
  91. Which of the following actions
    would require notification to the
    office of financial and insurance
    services
    Change of name
  92. When a person involved in the
    insurance industry makes
    maliciously critical statements
    about the financial condition of
    the insurer they have committed
    which of the following violations
    Defamation
  93. The Commissioner upon receiving a
    complaint would do which of the
    following
    issue a cease and desist order
  94. Which of the following would need a
    license
    a business entity soliciting insurance policies.
  95. Which of the following would not be
    a violation of the unfair claim
    statute
    • Not calling the insured back within
    • a day of them contacting you
  96. Under consumer privacy laws the
    producer must disclose all privacy
    information at which of the
    following times
    during the initial transaction
  97. Which of the following would not be
    considered a violation of the
    rebating statute
    giving a 5$ pen with the company logo
  98. If a producer forges someone
    else's name on application the
    Commissioner has the power to do
    all of the following except
    make the producer tell the rest of their clients
  99. When a producer is being terminated
    they would receive that notice of
    termination from who
    the insurer
  100. How many days does the producer
    have to inform the Commissioner of
    a change of name
    30 days
  101. Which of the following actions can
    the commissioner take
    revoke a producers license after finding them guilty in a hearing.
  102. An unlicensed individual can do all
    of the following EXCEPT
    • Give advice to an insured regarding
    • their insurance policy
  103. To receive a deferred commission
    which of the following must be true
    you must be licensed as a producer at the time of the sale.
  104. If a producer knowingly violates
    the insurance code the commissioner
    can impose a MAXIMUM fine of how
    much per violation
    $2,500
  105. If a producer does not turn over
    money to the insurer in a timely
    manner they have committed which of
    the following violations
    Fiduciary violation
  106. An insurance agency will place you
    in a drawing for a free trip if you
    purchase a policy from them. 
    This is an example of which of the
    following
    illegal inducement
  107. If a producer misrepresents the
    terms of a policy in order for you
    to replace one policy with another,
    the producer has committed which of
    the following
    twisting
  108. Under the consumer privacy act a
    producer could share an
    insured's private information
    with all of the following except
    A non affiliated third party
  109. Within how many days of a producer
    signing a contract to represent an
    insurer must the insurer file the
    notice of appointment
    15 days
  110. Chapter 45 of the insurance code
    dealing with fraud states that all
    of the following are considered
    financial losses except
    additional premium
  111. If a producer purposely lies on an
    application for insurance he has
    committed which violation under the
    law
    misrepresentation
  112. If a producer makes a false
    statement on a claim form the
    producer has committed which
    violation under the law?
    Fraud
  113. If a producer lies on their license
    application they have committed
    which violation under the law
    misrepresentation
  114. Someone who holds a counselors
    license and no other licenses may
    do which of the following
    • Give advice about insurance for a
    • fee
  115. Someone who uses threats in order
    to have insureds buy insurance
    policies from them has committed
    which violation under the law
    intimidation
  116. If the commissioner suspects that
    someone has committed a fiduciary
    violation under the law the
    commissioner could do which of the
    following
    issue a cease and desist order
  117. How many hours of continuing
    education must a producer do every
    2 years
    24
  118. When the producer is doing their
    continuing education they must have
    a concentration of hours in which
    topic?
    ethics
  119. When an agent is doing their
    concentration on a specific subject
    how many hours do they have to do?
    3
  120. When a business entity wants to get
    licensed they need to do all of the
    following except
    receive special permission from the commissioner
  121. Under Michigan law chapter 45 fraud
    which of the following would not be
    part of the definition for
    financial loss?
    Additional Premium

What would you like to do?

Home > Flashcards > Print Preview