2023 Insurance Exam Q&A: Contracts, Life, Disability, Social Security, Exams of Nursing

Download 2023 Insurance Exam Q&A: Contracts, Life, Disability, Social Security and more Exams Nursing in PDF only on Docsity! AD Banker Comprehensive Exam Questions And Answers 2023. A producer who is acting as an agent is representing: A The insured, the applicant and the beneficiary B Always the insured C The insured and the insurer D Always the insurer - Answer D In order to be valid, a contract must be between individuals considered legally able to enter into an agreement. This principle is known as: A Restricted persons B Considerations C Competent parties D Agreement - Answer C A company that is licensed to sell insurance in a particular state is: A A domiciled company B A nonadmitted company C An authorized company D A foreign companyA company that is licensed to sell insurance in a particular state is: - Answer C An insurance contract is an aleatory contract. This means: A Equal value is not given by both parties to the contract AD Banker Comprehensive Exam Questions And Answers 2023. B The contract must be for a legal purpose C Parties to the contract must have the legal capacity to enter into the contract D Statements made in the application are guaranteed to be true in all respects - Answer A Which of the following would be considered a speculative risk? A The possibility your car is totaled in an auto accident B The possibility the painting you bought might be a long-lost masterpiece C The possibility you will die on the job at a young age D The possibility you will become disabled - Answer B Which is the proper term for a company owned by its policyowners? A A charitable insurance company B A reciprocal insurance company C A domestic insurance company D A mutual insurance company - Answer D All of the following are elements of a contract, except: A Offer and acceptance B Legal purpose C AD Banker Comprehensive Exam Questions And Answers 2023. State B County C Federal D Insurers - Answer A Which of the following is NOT considered one of the essential elements of a contract? A Competent Parties B Legal Purpose C Offer and Acceptance D Conditions - Answer D The most effective way to ensure that the applicant will accept the policy when it is issued is: A To collect the initial premium upon policy delivery, not at the time of application B To deliver the policy with a gift certificate to a local restaurant C Offer to pay the first premium for them D To have the applicant pay the initial premium at the time of application - Answer D Which of the following is NOT a characteristic of life insurance as property? A It may be paid for in installments B It requires a fund portfolio manager AD Banker Comprehensive Exam Questions And Answers 2023. C It creates an immediate estate D It requires no physical maintenance - Answer B Which of the following statements about the average number of people who die each year is true? A It is called the mortality rate B It is called the principle of indemnity C It is called the predictability rate D It is called the principle of life insurance - Answer A Insurers generally calculate premiums on: A A weekly basis B An annual basis C A monthly basis D A daily basis - Answer B Third-party ownership refers to: A A situation where the beneficiary has no insurable interest in the insured B A situation where the beneficiary is irrevocable C A situation where the policyowner is someone other than the insured D AD Banker Comprehensive Exam Questions And Answers 2023. A situation where the applicant is someone other than the payor - Answer C With regard to life insurance policies, loading refers to: A The amount of money the insurance company reserves for expected mortality costs B The amount the company anticipates for dividend payout C Assignment of the appropriate share of the company's operating expenses to each policy D Surrender charges applied to the cash surrender of the policy - Answer C Which statement best describes the term reserve? A That amount that enables the insurer to provide sales bonuses and incentives for their commissioned sales staff B That amount that, when increased by future premiums on outstanding policies, and interest on those premiums will enable the company to meet future death claims C That amount, required by law, that the company must hold in reserve to pay only cash value accumulations on permanent insurance policies D That amount insurer's maintain in reserve to guarantee that they can profit from future death claims - Answer B Controlled business may be defined as insurance sold: A To individuals needing an increased amount of term insurance B To existing clients only C To anyone willing to buy D AD Banker Comprehensive Exam Questions And Answers 2023. B The first year C The second year D The third year - Answer D A limited pay life policy: A Requires premium payments for a specified number of years or until a specified age is reached B Start off with small premium payments and then they increase, but only up to a specified limit C Is offered in limited face amounts only D Can only be purchased by individuals on a specified limited income - Answer A Which of the following provides the basis for the benefit amount paid to an insured under a disability income rider? A The length of time income payments are to be paid out B The face amount of the policy C The elimination period D The amount of monthly benefit selected - Answer B Allen purchases an estate builder (jumping juvenile) policy for his 5-year old son, Donald. Suppose that when Donald reaches age 21 his father presents him with the policy as a gift. Which of the following statements is NOT correct? A Donald has enjoyed protection against the problems of premature death B AD Banker Comprehensive Exam Questions And Answers 2023. The premium will continue to be based on his original age of 5 C The face value of Donald's policy has increased by 5 times D Donald must change the beneficiaries immediately - Answer D The type of policy that can be changed from one that does not accumulate cash values to one that does is a: A Universal life policy B Variable life policy C Permanent policy D Convertible term policy - Answer D With a modified premium whole life contract, premium payments: A Are lower in the early years of the contract B Are invested in the stock market C Never change for the life of the policy D Are modified throughout the life of the plan and may fluctuate at the insurer's discretion - Answer A With regard to the waiver of premium rider, after the disability a policyowner normally: A Must prove insurability to continue the policy on an annual basis B Must reapply for the insurance C AD Banker Comprehensive Exam Questions And Answers 2023. Need not repay the premiums paid by the company during disability D Must repay the premiums paid by the company during disability - Answer C In a whole life insurance policy: A The insurance protection remains level throughout the policy period, and the cash value does not impact the amount of insurance protection at all B The cash value is equal to the face amount of insurance throughout the life of the policy C The cash value provides no living benefits until the policy endows D The cash value is greatest at the end of the policy period, and the insurance protection is greatest at the start of the policy - Answer D Warren and Wilma have a joint life policy. Warren dies and the policy pays nothing. Later on, Wilma dies and the policy death benefit is paid to the beneficiary. This is called a: A Variable life policy B Level term policy C Survivorship or second-to-die policy D Reduced paid up policy - Answer C Each of the following is a source of life insurance policy dividends, except: A Guaranteed cash value accumulations B Reductions in operating expenses C Savings in mortality AD Banker Comprehensive Exam Questions And Answers 2023. The total amount of premiums paid into the policy D 50% of the accumulated cash value - Answer A The settlement option that provides for the proceeds plus interest to be paid in installments for a specified period of time is called the: A Life income period certain option B Joint life option C Fixed amount option D Fixed period option - Answer D Collateral for a policy loan is: A The cash value of the policy itself B The premiums applied to the cash value account minus the load C Not required at all D Provided by the policy's death benefit - Answer A An insured allows a permanent policy to lapse. Unless otherwise instructed, the insurance company: A May apply the cash values to purchase additional paid up insurance B May exercise any nonforfeiture option it deems appropriate C Applies the remaining cash values into a deferred annuity D Will automatically institute the extended term option - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. If an insured has an outstanding loan of $5,000 on a policy with a face amount of $25,000, at death the company will: A Pay the beneficiary $20,000, after subtracting the amount of the outstanding loan B Cancel the policy C Pay the beneficiary the full $25,000 face amount D Institute a required loan repayment schedule before allowing the death claim to be processed - Answer A What is a postmortem dividend? A A second dividend declared after the initial dividend had been paid out B A dividend declared but held for future payout C A dividend declared and paid out at least one year after an insured's death D A dividend earned, but not yet paid, in the year of the insured's death and paid with the death claim - Answer D The nonforfeiture option that provides the most life insurance protection is the: A Extended term option B Reduced paid-up option C Paid up additions option D Cash surrender option - Answer A AD Banker Comprehensive Exam Questions And Answers 2023. An insured forgets to pay his insurance premium. Instead of the policy lapsing, the premium is paid by the company. This would suggest that a __________ policy was purchased. A Whole Life B Decreasing term C Level term D Renewable term - Answer A What is the easiest and best way to assure that the life insurance policy's death proceeds don't end up in probate court process? A List a primary and contingent beneficiary by their full name and relationship to the insured B Name the estate as beneficiary C Make sure the client has a will that is current and in an easily accessible location D Ascertain that the client has a trust that is filed with the County court - Answer A The type of annuity that guarantees to pay total income at least equal to the purchase price of the contract is a: A Refund life annuity B Pure life annuity C Joint life annuity D Joint life and survivorship annuity - Answer A AD Banker Comprehensive Exam Questions And Answers 2023. C The underwriter generally focuses on individual members of the group, rather than the group as a whole D The underwriter generally focuses on the group as a whole, rather than on individual members - Answer D George, who has a group policy, may upon leaving his place of employment: A Convert it to permanent insurance without proof of insurability, within a specified period B May continue his current coverage with no change in premium C May convert it to permanent insurance provided he does so within 90 days and can prove insurability D Convert it to an individual term insurance plan, without proof of insurability - Answer A Which of the following statements is NOT true about the tax treatment of Social Security? A Taxes to finance Social Security benefits are paid equally by employees and employers B Self-employed people must pay both the employer and the employee share of Social Security taxes C Employee paid payroll deductions for Social Security are tax deductible to the employee D Employers may take a tax deduction for contributing on behalf of their employees - Answer C A split-dollar plan: A AD Banker Comprehensive Exam Questions And Answers 2023. Is part of an entity buy-sell agreement B Insures key employees and is for the sole benefit of the employer in the event of the employees death C Divides the cost of additional insurance for an employee between that employee and the company D Is a qualified retirement plan for the employee with which premiums are split between both the employer and employee - Answer C The Lucrative Lozenge Company provides a $5,000 monthly income to retirees who served as senior executives. This benefit is not available to other retirees of the company. This is an example of a: A Qualified plan B Nonqualified plan C 401(k) D Keogh Plan - Answer B Distributions from a qualified retirement plan: A Are always fully taxable B May only be received in interest only payments C Are always received tax-free D Are received tax-free only if they result from previously taxed contributions - Answer D TSAs are tax-sheltered retirement programs for employees of all the following kinds of organizations, except: AD Banker Comprehensive Exam Questions And Answers 2023. A Corporations B Religious C Educational D Charitable - Answer A If a policyowner paid $18,000 in premiums for a policy that is cashed in for $21,000, how much of the policy's cash surrender value would be subject to federal income tax? A $18,000 B $3,000 C Zero D $21,000 - Answer B Incidental limitations refer to which of the following? A Annuity payout options B Taxation of Roth IRAs C Roth IRAs D The amount of life insurance that may be included in a qualified retirement plan - Answer D Which of the following would NOT be permitted as a Section 1035 policy exchange? A A life contract exchanged for an annuity contract AD Banker Comprehensive Exam Questions And Answers 2023. D Attending Physician Statement - Answer A A producer gathers information about the applicant for the insurer in order to avoid adverse selection. This is considered to be: A Field underwriting B Application process C Law of large numbers D Principle of indemnity - Answer A If a premium is collected at the time of the application, the producer will issue a: A Contestable receipt B Guaranteed receipt C Conditional receipt D Sales receipt - Answer C In the event a policy is delivered by an agent to the insured, and the premium payment is to be collected at the time of this delivery, normally what else must the agent obtain to make the delivery complete? A Postage and handling fees B Additional payment reflecting lost interest C A statement of good health D An affidavit from the applicant - Answer C AD Banker Comprehensive Exam Questions And Answers 2023. Statements made on the application are considered true to the best of the applicant's knowledge and belief are considered to be: A Waivers B Representations C Concealments D Warranties - Answer B Which of the following are included in Part I of a Health Insurance Application? A The gender of the applicant B Medical background C Family health history D Present health - Answer A Which of the following is true about a policy that pays for room and board expenses on a indemnity basis? A The policy pays a stated amount per day in the hospital with no limit regardless of the number of days B The policy pays a specified, pre-established amount per day for a maximum number of days C The policy pays a percentage of the total cost per day in the hospital up to 30 days D The policy pays only a percentage of what is considered to be usual, customary, and reasonable - Answer B AD Banker Comprehensive Exam Questions And Answers 2023. A policy that pays surgical expense benefits does not schedule the approved benefit payable for every type of surgery. Instead, surgeries not listed are paid on the basis of a comparison to one or more types of commonly-performed major surgeries that are scheduled. Under this arrangement, the unscheduled surgeries are paid on the basis of: A Their stated value B Their limited value C Their relative value D Their common value - Answer C For nonroutine treatments, a comprehensive policy generally pays: A A specified percentage of the reasonable and customary charges B For catastrophic health losses only C 100% of the medical expenses D For inpatient hospital treatment only - Answer A Under what circumstances do major medical policies usually provide for restoration of benefits? A Restoration usually occurs after a specified dollar amount of benefits has been exhausted and after the insured has proven insurability B Restoration of benefits must occur every policy anniversary regardless of the amount of benefits exhausted C Anytime benefit limits have been exhausted D AD Banker Comprehensive Exam Questions And Answers 2023. Under Workers' Compensation, a disability that is a permanent physical impairment leaving the individual incapable of performing the previous regular occupation, but capable of performing some other type of work, is a: A Residual disability B Permanent partial disability C Temporary disability D Recurrent disability - Answer B As compared to individual disability income policies, group disability income policies are generally: A Less costly and have more liberal provisions B Written an occupational basis only C More costly than an individual disability policy D Less costly and is more heavily underwritten than an individual plan - Answer A Which of the following is NOT one of the categories of benefits incorporated by State Workers' Compensation Laws? A Disability benefits B Rehabilitation benefits C Medical benefits D Long-term care coverage - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. Before Cranston was disabled, he was a full time engineer earning about $70,000 annually. Now, two years later, he is able to work part-time, earning about $25,000 annually. It is likely that Cranston would be classified as: A Totally disabled B Permanently disabled C Partially disabled D Completely disabled - Answer C Social Security disability benefits become available to eligible workers after a waiting period of: A 30 days B 5 months C 1 year D 90 days - Answer B What type of disability income policies are most likely used to cover only nonoccupational disability as opposed to both occupational and nonoccupational? A Short-term disability policies B Workers' Compensation C Disability income rider to an individual life policy D Long-term disability policies - Answer A The waiting period from the start of a disability to be eligible to apply for Social Security disability is: AD Banker Comprehensive Exam Questions And Answers 2023. A 3 months B 12 months C 6 months D 5 months - Answer D To reduce its exposure to claims from a substandard disability risk, an insurer may take all of the following actions, except: A Charge additional premium B Reduce the amount of benefit C Remove all of the exclusion riders D Increase the elimination period - Answer C With a Business Overhead Expense Policy, all of the following are claims that are covered, except: A Employee labor B The salary or profit of the business owner C Utilities D Office rent - Answer B The Medicare home health care benefit will provide for which of the following services? A Hospitalization care AD Banker Comprehensive Exam Questions And Answers 2023. C Complete an open enrollment application along with the first months premium D Enroll in Medicare Part B at the same time - Answer A Which part of Medicare requires premium payments by most eligible participants? A Intermediate care B Part A, Hospital Insurance C Custodial care D Part B, Medical Insurance/Outpatient - Answer D Medicare supplement policies must provide a 'free look' period of: A 15 days B 25 days C 30 days D 20 days - Answer C For hospital stays of over 90 days, patients can draw from a pool of 60 reserve days that may be used: A Once in a lifetime B Every year C When ever needed D AD Banker Comprehensive Exam Questions And Answers 2023. 0nce every 5 years - Answer A Primary support for Medicare Part A comes from: A Local tax revenues B Federal bond fund C Medicaid D Social Security payroll taxes - Answer D Which of the following will cover the cost of inpatient blood transfusions after the first 3 pints? A Long-Term Care B Medicare Part D C Medicare Part B D Medicare Part A - Answer A Which of the following Medicare Supplement policies have Core Benefits? A Plan A only B Plans A through N C Plans C through J only D Plan A through C only - Answer B Policies are considered incontestable after: A AD Banker Comprehensive Exam Questions And Answers 2023. 2 years B 3 months C 6 months D 9 months - Answer A All of the following statements about noncancellable policies are true, except: A A noncancellable policy is also called a noncancellable and guaranteed renewable policy B The insurer may regain the right to cancel or not to renew when the insured reaches an age specified in the policy C The only right to cancel the noncancellable policy is for nonpayment of premium D The insurer may choose not to renew the policy, but only on the policy renewal or anniversary date - Answer D Each of the following would be found in the insuring clause of an insurance policy, except: A Definitions B General information about the named insured C General scope of coverage D Conditions under which benefits are payable - Answer B Required Provision 'Reinstatement' addresses reinstatement of a lapsed policy. According to this provision, when an insured applies for reinstatement and receives a conditional receipt, how long does the insurer have to approve or deny reinstatement before the policy will be automatically reinstated? AD Banker Comprehensive Exam Questions And Answers 2023. B 90 days C 180 days D 45 days - Answer A One of your clients just reinstated his health insurance plan. When is coverage effective for sickness and accident? A 30 days for sickness, immediate coverage for accidents B 10 days for sickness, and immediately for accidental injuries C Immediately for both accident and sickness D 10 days for accident and 48 hours for sickness - Answer B John has had his individual Health and Disability Income policies for many years. While intoxicated, he was injured as the driver in a single car accident. Who covers the medical expenses for John? A His health policy pays all expenses B Health covers medical; disability covers income C Medicaid pays the medical expenses D John is liable for all expenses - Answer D Precertification, Mandatory Second Surgical Opinion, and Concurrent Review are provisions in health insurance policies known as: A Policy Abilities Provisions B Case Management Provisions AD Banker Comprehensive Exam Questions And Answers 2023. C Miscellaneous Provisions D Protect Insurer Provisions - Answer B The Time Limit on Certain Defenses (Incontestable) period is _____ years under individual health and disability contracts. A 7 B 3 C 5 D 2 - Answer D Which of the following is not a Mandatory Uniform Provision of an Accident and Health policy? A Waiver of Premium B Time limit on Certain Defenses C Proof of Loss D Payment of Claims - Answer A Which of the following statements is NOT true concerning a coordination of benefits situation? A The group insurer for the person with the claim is primary B Where children are involved, the primary group insurer is the insurer for the parent who is oldest by age at the time of claim C AD Banker Comprehensive Exam Questions And Answers 2023. The group insurer for the spouse of the person with the claim is secondary D Where children are involved, the primary group insurer is the insurer for the parent whose birthday comes first in the year - Answer B Which of the following would NOT be a likely consideration in determining premium rates for group health insurance? A Degree of occupational hazard associated with the group B Length of the waiting period C Maximum indemnity period D Whether the company produced a profit or a loss in the previous year - Answer D The main benefit of 501(c)9 trusts is: A Costs of setting up these trusts are always lower than other types of plans B That distributions from the trust are always received tax-free C Contributions to these trusts may be deducted immediately, instead of when benefits are distributed D Contributions to these trusts are not tax deductible at all - Answer C A plan in which employees select health benefits from a variety of coverage options, based on their individual coverage needs is a: A COBRA continuation plan B HIPAA plan C Cafeteria plan AD Banker Comprehensive Exam Questions And Answers 2023. An insured with an individual LTC policy is deducting the premiums he is paying for the plan on his income taxes. Once he begins to receive benefits from this plan, what will be the tax consequences on this income? A Fully taxed B Not taxable C Tax-deferred D 7.5% is taxable - Answer B Which of the following best describes the general tax rules regarding employer sponsored group disability income insurance plans? A Premiums are not deductible, the benefits are taxable B Premiums are deductible, the benefits are taxable C Premiums are deductible, the benefits are not taxable D Premiums are not deductible, the benefits are not taxable - Answer B Which of the following can be listed on an illustration? A The insurer's name, producers name, address, and the policy generic name B The proposed insured's name, age, gender, and the initial death benefit C All of the answers listed D The dividend option selected or any nonguaranteed elements - Answer C An annuity or pure endowment contract must provide a grace period of: A AD Banker Comprehensive Exam Questions And Answers 2023. 15 days B 20 days C 4 weeks D 1 month of at least 30 days - Answer D To be able to start operations, a mutual company must have all of the following, except: A A minimum number of stockholders B The advanced premium payment for each application C A minimum number of applications for insurance D A minimum surplus as specified by the state - Answer A Upon written demand by a person aggrieved, the Commissioner must hold a hearing within: A 30 days after receipt of the demand B 20 days after receipt of the demand C 10 days after receipt of the demand D 14 days after receipt of the demand - Answer A Non-financial regulatory activities are known as: A Market conduct B Risky conduct AD Banker Comprehensive Exam Questions And Answers 2023. C Hazardous conduct D Financial conduct - Answer A An applicant who fails two examinations for the same line of authority must wait ______ to take another examination for that line of authority. A 1 year B 2 years C 6 months D 3 months - Answer D A licensee must inform the Commissioner of a change of legal name or address within ______ days of the change. A 180 B 90 C 10 D 30 - Answer D The head of the state department of insurance has all of the following powers, except: A Approving rates and rate increases for regulated lines of insurance B Imposing penalties for violations of the insurance code, including but not limited to fines, suspensions or revocations of licenses and Certificates of Authority, and requesting that the Attorney General prosecute a violator AD Banker Comprehensive Exam Questions And Answers 2023. Eligibility for the payment of benefits under a long-term care insurance policy may require either a deficiency in the ability to perform no more than _______ of the activities of daily living or the presence of cognitive impairment. A 0 B 4 C 3 D 5 - Answer C Jay, who is employed by Carson Company, is assigned to work temporarily in another state. While in the other state, Jay is injured on the job. He is entitled to benefits of the Workers' Compensation law in the state in which he was hired even though his injury occurred in a different state. This indicates that the Workers' Compensation law in the state where Jay was hired: A Is competitive B Includes extraterritorial provisions C Has COBRA provisions D Is monopolistic - Answer B A life insurance policy is incontestable, except for nonpayment of premiums, after it has been in force during the lifetime of the insured for ______ from its date of issue. A 1 year B 2 years C 3 months D 6 months - Answer B AD Banker Comprehensive Exam Questions And Answers 2023. Which of the following describes why Alabama encourages the purchase of Long- Term Care Insurance through its LTC 'Partnership Program'? A All of the answers listed B Allows Medicaid to disregard some or all of your assets for Medicaid eligibility C Requires Medicaid to disregard some or all of your assets during estate recovery D Provides you with asset protection - Answer A A producer must keep complete records pertaining to transactions under the producer's license for at least: A 6 months B 1 year C 3 years D 3 months - Answer C Death benefits paid under Workers' Compensation: A Are limited to two times your annual salary B Are $1,000 and must be requested within 90 days from the date of death C Are not provided D Include both a one-time burial allowance and a weekly benefit for a surviving spouse and /or children - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. An individual long-term care insurance policy may not be terminated for nonpayment of premium unless the insurer has give notice to the insured and any designated persons at least _____ days before the effective date of the termination. A 30 B 60 C 45 D 20 - Answer A Who is Alabama's current Commissioner of Insurance? A Jim Ridling B Walter Bell C Bob Riley D Fob James - Answer A In the context of replacement, the term 'conservation' means any attempt by the: A Insured to negotiate a lower premium with the agent B All the answers listed C Insured to cancel the policy in an attempt to conserve premium dollars D Existing insurer or its agent to continue existing life insurance in force - Answer D All of the following are common complaints filed by clients against Errors and Omissions policies, except: A AD Banker Comprehensive Exam Questions And Answers 2023. Contract of Adhesion D Aleatory Contract - Answer C Insurable interest for life insurance is necessary only at the time of: A Death B Policy renewal C Application D Policy delivery - Answer C A document that provides information to the home office of an insurer for underwriting purposes is called a(n): A Rider B Amendment C Claim Form D Application - Answer D The applicant, if other than the proposed insured, must have: A A valid state issued drivers license B A relationship to the insured's named beneficiary C The insured's permission to be the applicant D An insurable interest in the life of the insured - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. An indeterminate premium policy offers: A Whole life insurance with a flexible payment schedule of premiums and flexible face amount of coverage B A limited payment schedule C A low initial premium with succeeding premiums based on the company's investment return, mortality and expenses D An interest sensitive premium on a whole life policy - Answer C Loan values and retirement income are: A Considered part of the final expenses of life insurance B Called the living benefits of life insurance C Not available from any type of life insurance policy D Features that are only available on term policies - Answer B Any extra premium charged for the waiver of premium rider: A Must be paid separately and in addition to the primary premium B Earns interest and increases the cash value of the policy C Increases the face amount of the policy D Does not apply to the policy's cash value - Answer D A whole life policy: A Requires the insured to pay premiums for life and endows at age 100 AD Banker Comprehensive Exam Questions And Answers 2023. B Requires the insured to pay premiums to age 65 and endows at age 120 C Requires the insured to pay premiums to age 90 and endows at age 100 D Is a single premium policy that endows at a specific age specified in the contract - Answer A The situation below that most likely calls for the purchase of term insurance is: A Roger is age 62 and is approaching retirement after working for a corporation for 30 years B Mary is 44 years old, is a career school teacher and has no children C George has two years of medical school to complete; he and his wife have one child D Kathy, age 60 and married, has two adult children, both of which are married - Answer C In a universal life policy, the two adjustments usually made to the cash value account are: A Cost of insurance protection is charged and current interest is credited B Cost of insurance protection is credited and current interest is charged C Guaranteed interest is credited as long as the insurer has had a favorable investment return D Premiums and guaranteed interest are charged - Answer A In which of the following circumstances would the accidental death benefit not apply? A Death caused by an automobile accident AD Banker Comprehensive Exam Questions And Answers 2023. In group insurance, the evidence of a contract between the insurer and the employer or association is: A The underwriting certificate of completion B The policy C The certificate of insurance D The approval certification - Answer B ERISA requires which of the following? A That every plan has the same vesting schedule B That employers establish pension plans for their employees C Employers must be able to benefit equally with the employees and beneficiaries D Qualified plans must meet certain minimum standards - Answer D All of the following are eligible to participate in a HR-10 Keogh Plan, except: A Manager B Silent partner C Sales person D Secretary - Answer B Information about an applicant's work behavior or character gathered from neighbors or co-workers would be included on an? A AD Banker Comprehensive Exam Questions And Answers 2023. Inspection Report B Agent's Report C APS D MIB - Answer A The specified period that must elapse before new coverage is effective for nonaccidental losses is known as which of the following? A Waiting period B Probationary period C Morbidity table D Exclusion - Answer B What type of policy pays weekly or monthly benefits for loss of income due to sickness or injury? A Disability Income B Medical Income C Subcontractors Income D Death Benefit - Answer A Accident and Health Insurance provides coverage for two major categories of perils. They are: A Driving under the influence and driving while intoxicated B AD Banker Comprehensive Exam Questions And Answers 2023. On the job and off the job C Accidental injury and sickness D Automobile and home health care - Answer C If an insured pays a premium that is lower than others that are in the same class, this insured is considered to be rated as? A Substandard B Preferred C Reduced D Standard - Answer B All of the following statements regarding an insurance application are correct, except: A It is not included as part of the contract B It is a formal written request by an applicant to an insurer requesting a policy C It is the primary source of information for underwriting purposes D It must be signed by at least the applicant and producer - Answer A A product designed to provide coverage for necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital is called: A Long-Term Care B Outpatient Care AD Banker Comprehensive Exam Questions And Answers 2023. A Medicare Supplement - Answer C In order for a claimant to be eligible for _______ benefits, they must qualify based upon need. A Medicaid B Medicare Supplement C Long-Term Care D Medicare - Answer A The grace period for an individual health insurance policy being paid on a quarterly basis is: A 10 days B 45 days C 31 days D 7 days - Answer C Which statement concerning individual A&H policy renewal provisions is most correct from the perspective of the insured? A The renewal provision has no impact on the cost of the policy to the insured B The more favorable the renewal provision to the insured, the higher the cost C Renewal provisions only apply to property and casualty contracts and are not included under individual A&H policies D The more favorable the renewal provision to the insured, the lower the cost - Answer B AD Banker Comprehensive Exam Questions And Answers 2023. Managed Health Care attempts to contain costs by controlling the behavior of participants in all of the following ways, except: A Preventive Care B Controlled Provider Access C Copayments and/or coinsurance D Partial Case Management - Answer D Which of the following best describes the consideration on the part of an insurer? A The offer of the contract B The promise to pay in the event of a covered claim C The purpose of the contract must be legal D The acceptance of the contract - Answer B Guaranteed Renewable means: A Renewable only at the option of the insurer B Renewable with adjustable premiums, by classification only C Renewable with guaranteed premium D Renewable with adjustable premiums determined by frequency of claim - Answer B Once issued, the application becomes part of the ___________, when attached. A Part 2 AD Banker Comprehensive Exam Questions And Answers 2023. B Agent's Report C Entire contract D Part 1 - Answer C Which of the following is correct pertaining to underwriting a group health policy? A Group insurance cannot be based upon community experience B The average age of the group is not taken into consideration C Premiums are generally re-evaluated annually and may be based upon prior claims D All participants are always eligible immediately - Answer C Which of the following is considered not to be an Essential Health Benefit? A Mental health services B Behavioral health treatment C Personal care D Ambulatory patient services - Answer C The following statement is true concerning the income received from an individually owned disability income policy: A Premiums paid with after tax dollars, Income benefit taxable B Premiums are tax sheltered, Income benefit taxable C AD Banker Comprehensive Exam Questions And Answers 2023. The Life and Disability Insurance Guaranty Association provides a maximum liability benefit in the event an insurer becomes insolvent. The benefit amount is limited to: A $100,000 for cash value on one life and $300,000 for all benefits B $100,000 for cash value on one life and $250,000 for all benefits C $50,000 for cash value on one life and $150,000 for all benefits D $100,000 for cash value on one life and $500,000 for all benefits - Answer A If the Commissioner denies a request for an extension to comply with the continuing education requirements, the licensee must complete the continuing education requirements within _______ days after being notified of the denial. A 20 B 45 C 30 D 60 - Answer C The cost basis of a life insurance policy is __________. A Cash values in excess of premiums paid B Premiums paid less dividends or withdrawals C Dividends left on deposit at interest plus the policy's cash values D Cash values plus any outstanding policy loans - Answer B When an applicant for life insurance faces potential financial loss in the event of injury or sickness of an insured, it is said the applicant has: AD Banker Comprehensive Exam Questions And Answers 2023. A Beneficiary status B Incidents of ownership C Indemnity rights D Insurable interest - Answer D The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. A Reciprocal B Facultative C Treaty D Residual - Answer C All of the following are producer responsibilities to the applicant, except: A Reviewing and evaluating the applicant's current insurance coverage, limits, and risks B Offering and selling only the lowest premium policy C Forwarding premium on to the insurer on a timely basis D Seeking and gaining knowledge of the applicant's insurance needs - Answer B Should an insured become totally and permanently disabled two months before the cut-off date for the waiver of premium rider: A The insured remains eligible for all provisions AD Banker Comprehensive Exam Questions And Answers 2023. B No benefits would be available due to the 6 month elimination period usually required, which would exceed the 2 months remaining on the rider C All provisions in the policy are now voided D The waiver of premium will only continue for the remaining two months - Answer A When there is enough cash value within a life policy to pay the premium, the Automatic Premium Loan provision prevents the policy from: A Converting B Renewing C Lapsing D Surrendering - Answer C Jeanne has a $100,000 whole life insurance policy that has $1,000 of dividend additions, a $6,000 outstanding loan that includes unpaid interest, and a monthly premium of $500. If she dies during the grace period, which of the following insurance settlements would be permitted? A $93,000 B $92,500 C $94,500 D $100,000 - Answer C An individual purchased a fixed annuity with flexible premiums. When she annuitized the policy, she chose the Life Income 10-Year Certain option. What would the beneficiary receive if the annuitant dies 4 years after the annuity payout began? A AD Banker Comprehensive Exam Questions And Answers 2023. D Statement of increased health risks - Answer A Which of the following has primary responsibility for ensuring that the application is filled out completely? A Producer B Home office underwriter C Insurer D Actuary - Answer A The mathematical probability table used by insurance companies to determine loss due to sickness or injury is the: A Rate Table B Mortality Table C Morbidity Table D Claims Table - Answer C An individual jumps off a roof and breaks his leg. Which of the following statements is correct? A Jumping of the roof was an accident and breaking his leg was intentional B Jumping off the roof was intentional and breaking his leg was intentional C Jumping off the roof was an accident and breaking his leg was an accident D Jumping off the roof was intentional and breaking his leg was an accident - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. The type of disability coverage purchased by a small business owner, to cover ongoing overhead in the event of the owner becoming disabled, would be called: A Disability Reducing Term B Buy-Sell Agreement C Business Overhead Expense D Key Employee Insurance - Answer C Which rider would eliminate coverage for a preexisting condition? A None of these B Impairment Rider C Return of Premium Rider D Lifetime Benefit Rider - Answer B Residual Disability Income pays funds to the insured, to make up for what the insured would have earned after returning to work, and while recovering from ___________. A Short-term disability B Partial disability C Long-term disability D Total disability - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. The insured may select a managed care version of a traditional Medicare Supplement Policy at a lower premium by choosing a policy that limits care to a specific list of hospitals and physicians. This would be called a: A Medicaid Supplement Policy B Medicaid Select Policy C Medicare Supplement Policy D Medicare Select Policy - Answer D Which of the following is true of Medicare Part B? A Provides coverage for inpatient services B It is free for those who qualify C It covers routine dental checkups D Benefits are funded by a combination of taxes and premium dollars and coverage is elective - Answer D An insured should receive necessary claim forms within _____ days after notice of claim. A 15 B 5 C 10 D 20 - Answer A Which of these is a Mandatory Uniform Provision? AD Banker Comprehensive Exam Questions And Answers 2023. McCarran-Ferguson Act C HIPAA Act D COBRA Act - Answer B All of the following are true regarding the States Second Injury Fund, except: A It limits the employers liability for a previously disabled employees second injury B It is funded by assessments against insurers and those who self insure C It is used to relieve the state of any burden for Workers' Compensation benefits D It promotes the employment of previously injured or handicapped workers - Answer C An annuity or pure endowment contract may be reinstated within __________ from the default in premium payments, unless the cash surrender value has been paid. A 1 year B 3 months C 6 months D 2 years - Answer A Which of the following IS true about an HMO under Alabama Law? A The Commissioner of insurance may not accept an examination report made by an HMO's home state B The Commissioner of insurance can regulate them but cannot impose a fine C AD Banker Comprehensive Exam Questions And Answers 2023. The Commissioner may not examine the affairs of an HMO and its providers as often as possible to protect the general public D The Commissioner of insurance can regulate them and impose a fine - Answer B How large must a group plan be for the requirement to include maternity benefits on the same basis as nonmaternity benefits to apply? A 20 members B 5 members C 30 members D 15 members - Answer 15 An insurance company, upon receiving proof of death, may not delay a death claim settlement beyond a period of: A 1 month B 3 months C 2 months D 6 months - Answer C An insurer can deny an otherwise valid claim under a long-term care insurance policy solely on the basis of a misrepresentation that is material to the acceptance for coverage: A None of the answers listed B If the policy has been in force for less than 3 months C Anytime they desire AD Banker Comprehensive Exam Questions And Answers 2023. D If the policy has been in force for less than 6 months - Answer D Industrial life insurance is a form of life insurance written under policies with face amounts of: A $25,000 or less B $4,500 or less C $2,500 or less D $3,500 or less - Answer C Twisting involves which of the following? A Making false statements on an application for insurance B Making derogatory remarks about another insurance company's financial condition C Policy replacement D Offering a gift in exchange for the prospect to purchase - Answer C In Alabama, the Commissioner of insurance is: A Appointed by the house of representatives B Appointed by the president of the United States C Voted into office by primary elections D Appointed by the governor - Answer D AD Banker Comprehensive Exam Questions And Answers 2023. Paid-up additions increase the amount of future dividends credited B Eventually, no more premiums will be due on the policy C Paid-up additions have their own increasing cash values D These single premium additions do not change the face value of the original policy - Answer B Under an annuity with a Joint Life Payment Option, what will the survivor receive upon the death of the first annuitant? A The remaining period certain B The undistributed balance C The same amount they were receiving together D Nothing - Answer D Which of the following Annuities would potentially be the most negatively impacted by the overall stock market falling in value? A Fixed B Variable C Indexed D Market adjusted annuity - Answer B Susan, age 65, inherits a substantial sum of money and wants to have the money distributed to her over the rest of her life starting next month. Which product offered by the life insurance industry will allow her to accomplish her objective? A Single Premium Immediate Annuity AD Banker Comprehensive Exam Questions And Answers 2023. B Flexible Premium Deferred Annuity C Single Premium Deferred Annuity D Flexible Premium Immediate Annuity - Answer A With a Profit Sharing Plan contributions must generally be made in at least ________ consecutive years. A 2 out of the last 6 B 3 out of the last 5 C 3 out of the last 7 D 1 out of the last 5 - Answer B An insured has paid $1,000 in annual premiums for her permanent life insurance policy for 12 years. Now upon surrendering the policy she is due to receive $15,000 of cash value. How much of this cash value is taxable? A Zero B $3,000 C $15,000 D $12,000 - Answer B A qualified plan pre-mature withdrawal tax penalty can be waived in all of the following circumstances, except: A Disability B AD Banker Comprehensive Exam Questions And Answers 2023. Buying a first vacation home C Qualified educational expenses D Death - Answer B The _________ alerts insurer home office underwriters of errors, omissions, or misrepresentations made on insurance applications. A MIB B Medical Doctors Association C Federal Insurance Information Bureau D State Insurance Inspection Department Report - Answer A A Short-Term Disability Policy generally is for a disability lasting for: A 2 weeks B 2-3 years C 3-5 years D Not more than 2 years - Answer D A Medicare Supplement Policy must include, as a core benefit, Medicare Part B coinsurance in the amount of _______. A 10% B 15% C 25%