Hawaii Life And Health Final Exam With 100% Correct And Verified Answers, Exams of Advanced Education

Download Hawaii Life And Health Final Exam With 100% Correct And Verified Answers and more Exams Advanced Education in PDF only on Docsity! Hawaii Life And Health Final Exam With 100% Correct And Verified Answers Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life Policy? 1. increase face amount 2. decrease face amount 3. increase premium paying period 4. decrease premium payment - Correct Answer-increase face amount Which provision is NOT a requirement in a group life policy? 1. conversion 2. Grave period 3. Incontestable period 4. Accidental - Correct Answer-4. Accidental T applied for a Disability income policy and has a history of back injuires. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called a(n)? 1. back exclusion 2. impairment rider 3. rating 4. encumbrance - Correct Answer-2. Impairment rider A statement on a policy that excludes coverage for a specific injuries or conditions is called an impairment rider. A policyowner is able to choose the frequency of premium payments through what policy feature? 1. Consideration 2. Payor benefit 3. Premium mode 4. Assignment provision - Correct Answer-3. Premium mode Which of the following permits an insurance company to transact business in Hawaii? 1. Certificate of admission 2. Certificate of domestication 3. Certificate of authenticity 4. Certificate of authority - Correct Answer-4. Certificate of authority Which of the following is considered to be the time period after a Health policy is issued, during which no benefits are provided for illness? 1. Incontestable period 2. Probationary period 3. Trial period 4. Subrogation period - Correct Answer-2. Probationary period The reason for a business having a business overhead expense diability plan is to cover: 1. the cost of providing group disability insurance to the employees 2. fixed business expenses 3. the owners loss of income 4. all business related expenses and salaries - Correct Answer-2. fixed business expenses What action can a policyowner take is an application for a bank loan requires collateral? 1. Utilize accelerated benefits provision 2. Borrow against policy cash value and use as a down payment 3. Assign policy ownership to the bank 4. Name bank as beneficiary - Correct Answer-3. Assign policy ownership to the bank Which of these is considered a mandatory provision? 1. Payment of claims 2. Insurance with Other insurers 3. Misstatement of age 4. Change of occupation - Correct Answer-1. Payment of claims Traditional individual retirement annuity (IRA) distribution must start by: 1. age 59 1/2 2. age 65 3. April 1st of the year following the year the participant attains age 59 1/2 4. April 1st of the year following the participant attains age 70 1/2 - Correct Answer-4. April 1st of the year following the participant attains age 70 1/2 How long does an individual have to "rollover" funds from an IRA or qualified plan? 1. 60 days 2. 90 days 3. 120. days 1. proof of loss 2. Legal actions 3. time limit on certain defenses 4. payment of claims - Correct Answer-3. time limit on certain defenses Which of these is NOT a duty of a producer? 1. Solicit applications for insurance 2. Collect premiums from policyowners 3. Authorize payment of certain claims 4. Render services to prospects - Correct Answer-3. Authorize payment of certain claims Which of the following is NOT a limited benefit plan? 1. dental policy 2. life insurance policy 3. Critical illness policy 4. cancer policy - Correct Answer-2 life insurance policy A __________ is the signed document that starts the free look period - Correct Answer- Delivery receipt No temporary disability insurance benefits may be payable for ___ days after a period of disability begins. - Correct Answer-7 ABC insurance company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has: 1. waived one of its legal rights 2. issued a voidable policy 3. committed an act of fraud 4. assigned the risk to a reinsurer - Correct Answer-1. waived one of its legal rights Which of the following will a long term care plan typically provide benefits for? 1. disability income 2. death 3. unemployment 4. home health care - Correct Answer-4. home health care Which of these statements concerning an individual disability income policy is TRUE? 1. premium are normally tax-deductible 2. age of the insured determines the amount of the benefits 3. normally includes an Elimination period 4. benefits are normally taxable - Correct Answer-3. normally includes an Elimination period A producer must notify the Commissioner within _____ days of a felony conviction. 1. 30 2. 45 3. 60 4. 90 - Correct Answer-1. 30 The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is: 1. Grace period 2. Physical Examination and Autopsy 3. Entire Contract 4. Time limit on certain defenses - Correct Answer-4. time limit on certain defenses A disability income policy that only the policyowner can terminate and which the rates will never go up is considered to be 1. Optionally Renewable 2. Noncancellable 3. Cancellable 4. Guaranteed Renewable - Correct Answer-2. Noncancellable Which of the following BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidenal means" definition 1. Double indemnity 2. Benefits are taxable 3. More restrictive 4. Less restrictive - Correct Answer-4. Less restrictive What type of life insurance incorporates flexible premiums and an adjustable death benefit? 1. Endowment policy 2. Modified whole life 3. Decreasing Term 4. Universal Life - Correct Answer-4. Universal life A producer has influenced an existing policyowner to convert an existing whole life policy to Reduced paid up insurance. The producer then sells the policyowner a new universal life policy. This transaction is called an 1. misrepresentation 2. conversion 3. Replacement 4. asset rollover - Correct Answer-3. replacement When an employee is terminated, how long does this employee have to convert group life coverage to an individual place? - Correct Answer-31 days A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? 1. Payor provision 2. Accelerated benefits provision 3. assignment provision 4. Waiver of premium provision - Correct Answer-Payor provision A payor provision provides that in the event of death or disability of the adult premium payor, the premiums on a juvenile policy will be waived until the insured child reaches a specified age or maturity date of the contract J is a producer who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this producer be found guilty of? 1. Twisting 2. Defamation 3. Coercion 4. Rebating - Correct Answer-Coercion A life insurance policy would be considered a wagering contract WITHOUT: 1. insurable interest 2. Premium payment 3. agent solicitation 4. Constructive delivery - Correct Answer-1. insurable interest What type of policy would only provide coverage for specific types of illness (cancer, stroke) 1. MEWA 2. Blanket insurance 3. dread disease insurance 1. payor 2. term 3. conversion 4. parent - Correct Answer-term What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? 1. modified whole life 2. 20 year paid up policy 3. endowment 4. decreasing term - Correct Answer-4. decreasing term What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? 1. Family lump sum policy 2. Family maintenance policy 3. Family survivor policy 4. family income policy - Correct Answer-Family maintenance policy Under a Basic Medical Expense policy, what does the hospitalization expense portion cover? 1. Hospital room and board 2. Hospital administration expenses 3. Surgeons fees 4. Physician fees - Correct Answer-Hospital room and board In Hawaii, an insurer licensed to conduct business in Hawaii, but domiciled In Pennsylvania, is called a(n) 1. non-admitted company 2. foreign company 3. domestic company 4. alien company - Correct Answer-foreign company Health insurance coverage for a handicapped child may be extended upon reaching the limiting age IF proof of incapacity is provided to the insurer within ___ days of the limiting age. 1. 15 2. 30 3. 31 4. 45 - Correct Answer-3. 31 K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? 1. Increasing 2. Decreasing 3. Adjustable 4. Level - Correct Answer-4. Level Which of the following types of permanent life insurance policies offers the highest initial cash value? 1. Single premium 2. Limited pay 3. Straight whole 4. Interest-sensitive - Correct Answer-Single premium Single premium whole life allows the insured to pay the entire premium in one lump sum and have coverage for his/her entire life. This type of permanent coverage has the highest initial cash value All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT 1. Fixed period 2. Interest only 3. fixed amount 4. life income - Correct Answer-2. Interest only Additional coverage can be added to a Whole Life policy by adding a(n) 1. payor rider 2. accelerated benefit rider 3. decreasing term rider 4. automatic premium loan rider - Correct Answer-3. decreasing term rider The advantage of reinstating an original life policy is 1. the premiums are based on the current age of the insured. 2. the premiums are based on a younger age 3. the interest charged on policy loans will be lowered 4. a new incontestable period will begin - Correct Answer-2. the premiums are based on a younger age The part of a life insurance policy guaranteed to be true is called 1. representation 2. exclusion 3. warranty 4. waiver - Correct Answer-3. Warranty A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the 1. policy loan provision 2. automatic premium loan provision 3. accelerated benefits provision 4. considerations clause - Correct Answer-1. policy loan provision T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? 1. the total premiums paid minus any policy loans 2. nothing 3. 50,000 4. 100,000 - Correct Answer-3. 50,000 S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations? 1. 36 2. 18 3. 15 4. 6 - Correct Answer-36 The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to 1. continue group health benefits 2. take out an individual health policy 3. transfer their coverage to another insurer 4. convert to disability coverage - Correct Answer-1. continue group health benefits P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? 1. P cannot borrow against the policys cash value while disabled 2. P will have to pay income taxes on the amount of premiums waived 3. P will still receive declared dividends