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Kansas Life & Health Insurance Final Exam 1005 VERIFIED ANSWERS 2024/2025 CORRECT STUDY SET
Typology: Exams
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When can a policy owner change a revocable beneficiary? Anytime J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Revocable M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? Revocable Beneficiary revocable beneficiary the policy owner may change the beneficiary at any time without notifying or getting permission from the beneficiary. K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? Proceeds will be paid to K's estate if P dies within a specified time
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? If the primary beneficiary dies before the insured Which statement is true regarding a minor beneficiary Normally, a guardian is required to be appointed in the Beneficiary clause of the contract A life insurance application must be signed by all of these EXCEPT Beneficiaries are not required to sign an insurance application K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect. P is a producer who notices 5 questions on a life application were not answered. What actions should P take? Schedule another appointment with the applicant to complete the unanswered questions M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT Free-look period has expired An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the Applicant's physician On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?
Collect initial premium along with a signed health statement What is being delivered during a policy delivery? Insurance contract to the proposed insured Before a life insurance policy is issued, which of these components of the contract is required? Applicant's signature on application Which of the following is an important underwriting principle of group life insurance? Everyone must be covered in the group A noncontributory group term life plan is characterized by the entire cost of the plan is paid for by the employer A person who is insured within a group contract will be given a certificate Group life insurance policies are generally written as annually renewable term Which provision is NOT a requirement in a group life policy? Accidental If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? Contributory W is a 39-year old female who just purchased an annuity to provide income for life starting at age
Variable T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this Life Annuity with period certain Which of these statements concerning an Individual Straight Life annuity is accurate? Payments are made to an annuitant for life An individual who purchases a Life annuity is given protection against The risk of living longer than expected What is Old Age and Survivors Health Insurance (OASDHI) also known as Social Security Which of these retirement plans can be started by an employee, even if another plan is in existence? Individual Retirement Account (IRA) Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company Annuity A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? Company X At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Upon completion of the application
Who elects the governing body of a mutual insurance company? Policyholder An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the Fair credit reporting act When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? at future dates specified in the contract with no evidence of insurability required The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and The initial premium When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) Exclusion Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? Entire Contract provision What provision in a life insurance policy states that the application is considered part of the contract? Entire contract provision Which of these is NOT considered to be a right given to a policyowner? Modify a provision in the insurance contract How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? Claims are denied under the Suicide clause of the policy
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? Pay face amount minus the past due premium What benefit does the Payor clause on a Juvenile Life policy provide Premiums are waived if payor becomes disabled S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? Automatic policy loan P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? $50,000 minus any outstanding policy loans S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy Return of premium rider The automatic premium loan provision is designed to avoid a policy lapse Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? Evidence of insurability is required when the option is exercised When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? Void the policy only if it is discovered during the Contestable period and proven to be material
The Consideration clause in a life insurance contract contains what pertinent information? Amount of premium payments and when they are due Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling Variable life What kind of special need would a policyowner require with an Adjustable Life insurance policy flexible premiums Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? Increasing face amount N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? 30 pay life When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? Conversion provision Which of these is an element of a Variable Life policy A fixed, level premium Which of these would be considered a Limited-Pay Life policy? Life paid up at age 70 The amount of coverage on a group credit life policy is limited to the insured's total loan value What type of life insurance incorporates flexible premiums and an adjustable death benefit
universal life Which statement about a whole life policy is correct? Cash value may be borrowed against Which statement is correct regarding the premium payment schedule for whole life policies? Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase 10 year endowment What type of insurance offers permanent life coverage with premiums that are payable for life? Whole life What type of life policy covers 2 lives and pays the face amount after the first one dies? Joint Life policy A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as Variable life What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Family maintenance policy All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for Modified whole life K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this
Modified whole life S is covered by a whole life policy. Which insurance product can cover his children Child term rider Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health Conversion When is the face amount paid under a Joint Life and Survivor policy? Upon death of the last insured What type of life policy covers two people and pays upon the death of the last insured? Survivorship Which of these characteristics is consistent with a Straight Life policy? Premiums are payable for as long as there is insurance coverage in force Which statement is true concerning a Variable Universal Life policy? Policyowner controls where the investment will go and selects the amount of the premium payment When must insurable interest be present in order for a life insurance policy to be valid At the time of application If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of? insured When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have insurable interest in the proposed insured
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called representations The part of a life insurance policy guaranteed to be true is called a(n) Warranty T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision? Primary carrier The reason for a business having a Business Overhead Expense Disability Plan is to cover fixed business expense The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the Waiting period A medical care provider which typically delivers health services at its own local medical facility is known as a Health maintenance organization Which of the following BEST describes how a Preferred Provider Organization is less restrictive than a Health Maintenance Organization? More physicians to choose from Medicare is intended for all of the following groups EXCEPT full time students J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a preset price. What type of plan does J belong to
health maintenance organization Which of these is considered a true statement regarding Medicaid? Funded by both state and federal governments Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges? The maximum amount considered eligible for reimbursement by an insurance company under a health plan Which of these options can an individual use their medical flexible spending account to pay for prescription drugs Which of the following statements BEST describes dental care indemnity coverage Services are reimbursed after insurer receives the invoice Major Medical policies typically contain a deductible and coinsurance An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/ Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses $3, Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deducitble Carryover Provision With a Basic Medical Expense policy, what does the hospitalization expense cover Hospital room and board N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as
Coinsurance In Major Medical Expense policies, what is the intent of a Stop Loss provision Limits an insured's out-of-pocket medical expenses Which of the following BEST describes a Hospital Indemnity policy? Coverage that pays a stated amount per day of a covered hospitalization For which of the following expenses does a Basic Hospital policy pay Hospital room and board Which of the following costs would a Basic Hospital/Surgical policy likely cover Surgically removing a facial birthmark Deductibles are used in health policies to lower Overused of medical services Basic Hospital and Surgical policy benefits are lower than the actual expenses incurred Which of the following will a Long Term Care plan typically provide benefits for home health care Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? Grace period According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? Monthly With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period Gives the policyowner additional time to pay past due premiums
Which of the following statements describes the purpose of the Insuring clause in Health and Accident policies States the scope and limits of the coverage Which of these is considered a mandatory provision payment of claims Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT Premiums normally increase at time of renewal What type of renewability guarantees premium rates and renewability Guaranteed renewable When does a Probationary Period provision become effective in a health insurance contract At the policy's inception The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the insuring clause A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? Claim will be paid and coverage will remain in force K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation Reinstatement
G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills The insured When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? Recurrent Disability T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? Less than $5,000 per month benefit regardless of the cause Which parts of a life insurance policy are guaranteed to be true? Warranty P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to P Only F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? Decreasing term policy Decreasing term policy A life insurance policy written for a specified period of time with a death benefit that changes regularly according to a schedule is a decreasing term policy.
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase Family maintenance policy Family maintenance policy Income from the date of death of the insured to the end of the preselected period. The payment of the face amount of the policy is payable at the end of such preselected perio The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is The cost The Consideration clause of an insurance contract includes The schedule and amount of premium payments All students attending a large university could be covered by Blanket policy All of the following statements about Major Medical benefits are true EXCEPT Benefits have no maximum limit A Disability Income policyowner suffers a disability which was due to the same cause as a previous disability. Both disabilities occurred within a five-month period. The insurer may cover the second disability without a new elimination period under the Recurrent disability provision Disability policies do NOT normally pay for disabilities arising from which of the following War An insurance company can usually contest the information contained in an accident and health application for two years from the date that the
insurance company dates the policy The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the Policyowner Which of the following violations is considered an unfair trade practice? coercion The Commissioner may examine the records of an insurance company in order to determine the solvency of the company Which of the following statements must be CORRECT for a nonresident to be eligible for a producer license in this state? The producer's state of residence must have reciprocity with this state An applicant for a resident insurance producer's license MUST meet which of the following requirements? Complete a prelicensing examination Which of the following statements is CORRECT about Accident and Health insurance advertisements Insurance companies are responsible for the accuracy of testimonials An insurance company that has not been approved by the state is considered to be Unauthorized An insurance company that is organized or chartered in a country other than the United States is defined as Alien The Kansas Life and Health Insurance Guaranty Association was established to provide funds to protect an insured in the event of an insurer's insolvency
Which of the following statements is CORRECT about the Life and Health Insurance Guaranty Association It is funded by insurance companies through assessments A stock insurance company is owned by it's Stockholder A certificate of authority does which of the following Permits an insurance company to transact business in Kansas Which of the following is an example of rebating returning a portion of a premium as inducement to purchase insurance The Commissioner of insurance may suspend, revoke, or refuse to renew the license of a producer who is found guilty of misrepresentation or fraud in obtaining the license The Commissioner of Insurance may issue a temporary producer's license for a maximum of how many days 180 Which of the following would be considered an unfair claim practice Misrepresenting insurance policy provisions affecting a loss Before a licensed producer is eligible to transact insurance sales, they must be appointed by an insurance company Which of the following is considered an Unfair Trade Practice under Kansas law? Coercion A producer is an individual who has been authorized by an insurer to be its representative and to perform all of the following acts EXCEPT
authorize payment of certain claims Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated 1970 - Fair Credit Reporting Act What is the elimination period of an individual disability policy? Time period a disabled person must wait before benefits are paid What is the primary factor that determines the benefits paid under a disability income policy Wages A disability elimination period is best described as a time deductible In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments After an insured has become totally disabled as defined in the policy