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30 Cards in this Set
- Front
- Back
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What did the Licensing Team say about studying for the state exams A. You can pass without much studying B. Study when you get a chance C. Take it seriously and get started ASAP D. Tested are over-rated |
C. Take it seriously and get started ASAP Explanation Everyone needs to take licensing preparation seriously and study hard. PhP's Home Office Licensing is here to help. |
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When an insurer issues a policy that refuses to cover certains risks,this referred to as a(n). A. Elimination B. Exclusion C. Limitation D. Exception |
B. Exclusion Explanation The exclusion section of insurances policy specefic the conditions, times, and cirstamances unders which insured is not covered by the policy. There are five common exclusions found in all life and health insurance policies. They are Intoxicant and Narcotics, Commitment of Felony ,Avation, War , and Sucide. if a loss is not not exclude in in the policy, it will be covered by the insurances |
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Insurances benefits Not covered due to an act of war are A. Excluded by the insurer B. Assigned to a reinsurer C. Given a longer probationary D. Charged a higher premium |
A. Excluded by the insurer
Explanation Any loss resulting out of an act of war will be excluded from an insurances contract. However, if the death or injury is not a direct result of actively engaging in, it will not be excluded. |
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D was actively serving in the Marines when he was killed in an automobile accident while. His 100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficary's A. Refund of premium paid plus interest B.Nothing, due to actively serving in the armed forces C. Double the face amount because of death was accidental D. The full face amount |
D. The full face amount Explanation Any loss resulting out of an act of war will be excluded from an insuranced from an insurance contract. However, if the death or injury is not a direct result of actively engaging in war, it will not be excluded |
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N is a student pilot with a large life insurances policy. Which of these features would limit the insuer's obligation in the event N was killed while flying as a student? A. Misrepresentation B. Exclusion C. Collateral assigment D. Concealment |
B. Exclusion Explanation The Insurances company will exclude or not cover any injuries sustained while piloting small aircraft. This exclusion specifically applies to those piloting small aircraft. This exclusion specifically applies to those piloting a small aircraft whilecommerical airlines pilots are covered. |
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What is the suicide provision designed to do? A. Decline an applicants who is contemplating suicide B. Safeguard the insurer from an applicant who is contemplating C. Protect the insurer from ever paying a claim that results from suicide. D. Allows the insurers the option to pay a death benefits in the event of suicide |
B. Safeguard the insurer from an applicant who is contemplating.
Explanation The suicide provision is only in effect for the first 2years of policy for example if there was no suicide provision a person could a 1 milion dollar policy and then killed them himself they next day and the insurances company would have to pay his beneficiaries. |
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With any insurances policy, what is the purpose of the Grace Period? A. Gives the policyowner additonal time to pay past due premuim. B. Gives the policyowner additional time to a lawsuit C. Gives the policyowner additional time to file a claim D. Gives the policyowner additional time provide proof of loss |
A. Gives the policyowner additional time to pay past due premium Explanation The purpose of a grace period is to give a policyowner additional time to pay past premiums |
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Which of the following provision specifies how long a policyowner's insurance coverage will remainin effect if the policyowner does not pay the premium when it is due? A. Grace Period B. Consideration C. Wavier of Premium D. Reinstatement |
A. Grace Period
Explanation Is policy does not pay the premium by the due date the policy owner can make the premium payment during the grace period. As you learned, this ensures they don't lose their insurances coverage because the forgot to pay a bill for a few days. |
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M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will remain in effect if the policy owner does not pay the premium when it is due? A. Grace Period B. Consideration C. Waiver of Premuim D. Reinstatement |
A. Grace Period If a policy does not pay the premium by the due date, the policyowner can make premium payment during the grace period. As you learned, this ensures they don't lose their insurancescoverage because they forgot to a bill for few days. |
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M had annual life insurances premium payment due January 1. She died 10 without making the premium payment. What action will the insurer take? A. Collect premium from M's estate B. Deny the claim C. Pay the face premium D. Subtract past due premium from cash value |
C. Pay the face amount minus the past due premium. Explanation All life insurances policies have a 31- day grace period. This allow the policy owner to forget to pay their premium for an entire month without losing their coverage. However if the insured dies during that grace period, without making the premuim payment the past due premium from the benefits or face value Before paying the beneficiary. |
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N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15.What action will the insurer take. A. claim will be denied B. Claim will be paid in full C.Claim will be partially paid D.n Claim will be decided by an arbitrator |
A. Claim will denied Explanation If the policyowner exceeds their graces period by not paying theier premuim for longer 31-days and does not have any other fail-safe in places the policy will be terminated and any future claims will not be paid. |
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An insured is pasted due on life insurance premium, but still with Grace Period. What will the beneficiary recieve if the insured dies during grace A.Refund of all premiums paid, plus, interest B.Refunds of all premuims paid C. Full face amount minus any past due premiums paid. D. Full face mount |
C. Full face amount Explanation Since the insured died during the 31 day Grace Period the beneficiaries will the money from the insurances policy minus the past due payment. |
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Monthly-premuim Individual health insurances policies must provided a grace period of at least.
A. 7 days B. 10 days C. 14 days D. 21 days |
B. 10 days Explanation If an insured pays their individual health insurances premuim once a, their grace period is 10 days. |
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An insured pays premuims on ar annual basis for an individual health insurances policy. What is the MINIUM number of days for the Graces Period Provision? A. 7 days B. 10 days C. 20 days D. 31 days |
D. 31 Days Explanation If an insured pays their individual health insurance premium less frequently than monthly for example; quarterly, semi-annually, oe annually, the usual grace period is 31 day. |
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Which of the following provision is not required in HMO contract/certifcates. A. Enrolloment B. Rates shall not excessive C. No pre-existing exclusion for childern D. Seven-day grace period |
D. Seven-day grace period Explanation HMO's must provided for a grace periods of at least 10 days. |
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Wich of the following statment describles the purpose of the Insuring clause in an insurances policy. A specficies the addtional time given to pay past due premiums. B. States the sope and limit of the coverage C. Specifies a clam will be paid immediately upon receipt D. Prohibits the insured from suing the insurer for at least 60 days after filing written proff loss. |
B. State the scope and limits of the coverage. Explanation The in an insurances contract establishes the insurances companies promises in regards to the amount of coverage and it's promise to pay out the policy if premuims are being paid. |
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Which of the following insurances policy provision specifies the benefits or services a policy will provided. A. Insuring clause B. Usual, Customary and Reasonable cluase C. Consideration clause D. Benefits Clauses |
A. Insuring Clause Explanation The insuring clauses specifices the serives or amount of benefits to be paid. This clauses is basically the insurance comapny stating, I promise to provide this coverage under these circumstances . |
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The agrrement in an insurances contract that state a specific sum of money will be of money willbe paid to a designated person upon insured's death is ca a (n) A. Entirely Contract provision B. Consideration Clause Insuring agreements C. Insuring agreement D. Assigment agreement |
C. Insuring agreement Explanation In life insurance contract, an insurance company's promises to pay stated beenfits is called the insuring agreement, or clauses. |
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The Condersation clauses in an insurances policy owner 's conversation contest of a completed and application and A. Summary of benefits B. Offers and acceptances C. Entire Contract D. Amount premuim payments and when they are due. |
D. Amount of premium payment and when they are due. Explanation The policyowner's consideration is agreeing to pay to a set premium at set intervals. |
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An insurances company recieves's appplication for individual health policy. E don complete all of the medical history question because she could not remmeber the excat dates. E signed the policy and sumbitted it ti the insurances company. a few weeks later, E suffers a heart attack and is hospitalized without completing the medial history question and paying the initial premuim. e is not insured. which of the following clauses deatils the condition that E did not meet. A. Entire contact clause B. MIB clauses C. Insuring clauses D. Consideration |
D. Consideration Explanation The insured's consideration given for an insurances policys is the first or inital premium payment and the completed application. I an applicant or policyowner does not provide. |
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Which health policy clauses stipulates that an insurances company must attach a copy of the application to the policy to ensure that it is part contract. A.Considersation B. Entire Contract C. Freelook D. Insuring |
B. Entire Contract Explanation The enitre contracts clauses that applicator becomes part of the policy. Entire clauses contracts includes the application, any addendum or endorsements, and the policy itself. just like it sounds everything need be included and provided to th customerin the contract which is why it's called the entire contract. |
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When an insurer company sends a policyy to insured with an attached application, the elements that makes the application part of contract between the insurered and the insurer is called. A. Entire Contract Provision B. Insuring clause c. Time Limit on certain Defense provision D. Legal Contract clauses |
A. entire Contracted provision
Explanation The entire is a stanard provision which requires that any addedums, endorsements, and the application, must be delievered with the policy is approved and that togather al of these document make up the entire contract. |
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Which of the following policy provision states that the producers does NOt have the authority to change the policy or waive any of its provision? A. Time Limit on Certain Defenses B. Reinstatement C. Entire Contract D. Changes of Beneficary |
C. Entire Contract Explanation Entire Contract provision in an indiviual insurances policy states that the agent does Not have authority to change the policy or waives its provision. |
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Which provison prevents an insurer from changing the terms of the contract with the policy owners by referring to document not found within the policy itself. A. Policy Exclusion B. Incontestable C. Entire Contract D. Assigment |
C. Entire Contract Explanation An insurances company is not allowed to references a document not orginally provided to the policyowner because by defention it is not part of the contract. |
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A life insurances policy that provides a policy owner with cash value along with a level face amount is called. A. whole Life B. Level Term C. Credt Life D. Ordinary Life |
A. Whole Life Explanation Two features of a whole life policy that are always true are cash values and level face amount that does not changes from the date policy is issed. |
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When is face amount of a Whole Life policy paid? A. At the policy's maturity date only B. When insured dies or at the policy's maturity date , whichever happens first C. Only when the insured dies D. When policy is surrendered |
B. When insured dies or at the policy's maturity date, whichever happens first.
Explanation Whole life policy will always pay the face value or coverage amount when the insured dies or at the policy's maturity date. |
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What kind of premium Whole Life policy have? A. Decreasing B. Adjustable C. Level D. Deffered |
C. Level
Explanation This means if you take out whole life insurances policy and agree to pay $50 per month in premium, your premium will always be $30. |
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What type of insurance offers life coverage with premuims that are payable for life? A. Credit Life B. Renewable Term Life C. Whole Life D. Endowment |
C. Whole Life Explanation Whole life consideration permanent coverage is permanent for for your whole life. For example, if you take out a 20,000 whole life. For example insurances policy and agree to pay a premuim of 30$ a month premuim payment for whole life. |
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Which statement about a whole life policy is correct. A.Beneficary may be changed only with the consent of premuim payor B. Death benefits can usuaully be adjusted C. Cash value may be borrowed against D. Premium |
C. Cash value may be borrowed against Explanation The cash value of a saving account available to borrow against while the insured is alive. Any Money borrowed from this account and to borrow against while the insured is alive. Any money borrowed from account and not paid pack before the insured's death will be subtracted from face value prior to the beneficiary. |
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What type policy would offer a 40-year oldest accumulation of value? A. Paid-up at 65 B. 20-pay life C. 30-day life D. Straight whole life |
B. 20-pay life Explanation The quicker you pay-up your policy the quicker you will acculamate cash value. If you are 40 years old and pay until age 60 you will pay a total 25 years. With a 20-pay a total of 25 years. As this is the shoretes pay, you would begin to build cash value the quickest. |
