Life, Accident, and Health Insurance Practice Exam(148 questions)

Life, Accident, and Health Insurance Practice Exam

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Life, Accident, and Health Insurance
Practice Exam
1. Which is the proper term for a company
5. The money paid by the insured to the insurance
owned by its policyowners?
company for insurance protection is called the
A. A stock insurance company
A. consideration
B. A mutual insurance company
B. dividend
C. A legal insurance company
C. benefit
D. A fraternal insurance company
D. assignment
2. A certificate of insurance
6. The difference between a customer and a
A. is issued to the employer to list which
consumer under the Gramm-Leach-Bliley Act
employees are covered by the group plan
is that
B. is issued to each individual covered by
A. a customer is a policyholder, whereas
the group life insurance
a consumer is an applicant
C. contains all policy information except the
B. a consumer is a policyholder, whereas
amount of protection and the beneficiary
a customer is an applicant
D. is not considered valid proof of coverage
C. a customer has an ongoing relationship with
the insurer, whereas a consumer does not
3. Al purchases an estate builder (jumping
D. a consumer has an ongoing relationship
juvenile) policy for his 5-year-old son, Donald.
with the insurer, whereas a customer
When Donald reaches age 21, his father
does not
presents him with the policy as a gift. Which
of the following statements is NOT correct?
7. An insured allows a permanent policy to
A. Donald does not have to continue to make
lapse. Unless otherwise instructed, the
the premium payments to keep the policy in
insurance company
force.
A. is entitled to keep any accumulated
B. The premium will continue to be based on
cash values
Donald’s original age of 5.
B. may use the cash value to purchase a
C. Donald has enjoyed protection against the
reduced amount of permanent insurance
problems of premature death.
C. will automatically send the cash values
D. The face value of Donald’s policy
of the policy to the policyowner
has increased by 5 times.
D. will automatically institute the extended
term option
4. Mortality figures are normally developed
by studying and interpreting statistics
8. Which of the following statements about the
A. from small groups of people over 10-
average number of people who die each year
year periods
is TRUE?
B. developed from the deaths of millions
A. It is called the mortality rate.
of persons over long periods
B. It cannot be predicted with any accuracy.
C. gathered by interviewing many persons
C. It cannot be used to determine insurance
in selected cities across the nation
rates.
D. obtained by surveys of insured persons
D. It is the principal factor in risk selection.