Insurance MCQ

If the insurer issues a health insurance policy without an initial premium, the producer must obtain a signed: A. Statement of Good Health B. Standard provisions endorsement C. Rider that the policy is acceptable D. Statement of increased health risks Answer: A.

Which of the following is NOT a common rating classification? A. Substandard B. Standard C. Subrated D. Preferred Answer: C.

An individual jumps off a roof and breaks his leg. Which of the following statements is correct? A. Jumping off the roof was intentional and breaking his leg was an accident B. Jumping off the roof was an accident and breaking his leg was an accident C. Jumping of the roof was an accident and breaking his leg was intentional D. Jumping off the roof was intentional and breaking his leg was intentional Answer: A.

What type of policy pays weekly or monthly benefits for loss of income due to sickness or injury? A. Subcontractors Income B. Disability Income C. Medical Income D. Death Benefit Answer: B.

Which of the following is NOT true regarding a group insurance plan? A. Proof of insurability is required to be eligible B. Group coverage is available for both employees and their dependents C. Premiums are determined based on the underwriting of the group as a whole D. The employer chooses the coverages Answer: A.

This type of policy covers the treatment and care of the insured's teeth. A. Disability income B. Long-term care C. Medical expense D. Dental expense Answer: D.

Which of the following best describes the agent's report? A. An illustration showing a comparison of all health insurance policies sold by the producer B. A personal statement provided by the agent/producer to the insurer clarifying or providing additional information based on the application as part of the underwriting process C. A statement made by the agent/producer verifying a sale was suitable and that all required disclosures were provided to the applicant D. A monthly report showing the amount of personal production made by the agent/producer Answer: B.

This type of coverage is used for replacing the insured's loss of earnings. A. Dental expense B. Medical expense C. Disability income D. Long-term care Answer: C.

It is illegal for most telemarketers or sellers to call a number listed _____________. A. In a neighborhood association directory B. On the National Do Not Call Registry C. On the internet D. In a phone book Answer: B.

Accident and Health Insurance provides coverage for two major categories of perils. They are: A. Automobile and home health care B. Accidental injury and sickness C. Driving under the influence and driving while intoxicated D. On the job and off the job Answer: B.

The agent's primary underwriting role is: A. To make sure the application provides the proper information B. To determine insurability C. No longer applicable in most situations D. To collect information for marketing purposes Answer: A.

This type of policy covers various expenses that an insured may incur due to a routine accident or sickness. A. Dental expense B. Medical expense C. Disability income D. Long-term care Answer: B.

Accidental Injury is a: A. Pre-existing condition B. Predictable event C. Catastrophic loss D. Sudden,unexpected and unforeseen event Answer: D.

If a premium was not paid at the time of application and a policy is issued, all the following are responsibilities of the agent/producer, except: A. Hand-deliver the policy to the insured B. Explain the policy benefits, provisions, riders and exclusions C. Obtain a signed Statement of Good Health D. Pay the first premium Answer: D.

Replacement of health or disability insurance generally requires that the new policy must do which of these? A. Lower the insured's annual premium by a minimum of 5% B. Materially improve the insured's position in all or nearly all respects C. Promise to increase the benefits provided without an increase in premium D. Increase the premium and reduce the benefits provided Answer: B.

All of the following practices may never be used when advertising health insurance, except: A. Advertising a group's product endorsement, if the insurer has any control over the group B. Implying that an insurer's claim settlements are generous or liberal C. Using words like 'only' or 'merely,' minimize the perception of policy restrictions D. Describing hospital indemnity benefits calculated and prorated daily, on a weekly or monthly basis Answer: A.

Answers to questions in applications for health and disability insurance are considered representations and not warranties. If an applicant later realizes he/she answered a question incorrectly, how may the answer be changed? A. The applicant will have up to two years to correct any wrong information in the application B. Wrong information may be corrected at any time prior to issuance of the policy C. The applicant will have the opportunity to correct any wrong answers when the policy is delivered D. Once submitted, answers in an application for insurance cannot be changed Answer: B.

All of the following are individual underwriting factors, EXCEPT: A. Gender B. Age C. Marital status D. Tobacco use Answer: C.

Who pays for any reports or Medical Exams required as part of the underwriting process for insurance? A. The producer B. The insurance company C. The policyowner D. The insured Answer: B.

All of the following are alternatives an insurer may have when asked to insure a substandard risk, EXCEPT: A. Attach a rider to the policy excluding certain coverages or conditions B. Limit the coverages of the policy C. Charge a higher than standard premium D. Issue the policy with a waiting period after which the insurer may cancel the policy Answer: D.